Will goods imported to Vietnam’s inland area from the free trade zone apply the import duty?

Will goods imported to Vietnam’s inland area from the free trade zone apply the import duty? (Illustrative image)

Under Circular 08/2007/TT-BTC, goods imported to Vietnam’s inland area from the free trade zone will apply the import duty according to the following regulations:

- Goods imported from abroad must pay import duty as prescribed by current law provisions.

- The goods manufactured, processed, recycled, and assembled within the free trade zone are eligible for the preferential import duty rates CEPT if all the conditions as prescribed by current law provisions are satisfied.

- The goods in the List of goods from the free trade zone being taken to the inland area are exempted from paying import duty.

- When importing the goods manufactured, processed, recycled, and assembled within the free trade zone in Nghi Son Economic Zone that use materials and parts directly imported from abroad (excluding goods imported from Vietnam’s inland area that use materials and parts imported from abroad) to Vietnam’s inland area, only the materials and part imported from abroad, that make up such goods, are subject to import duty.

The bases for calculating the import duty payable on the materials and parts imported from abroad, that make up the goods imported to Vietnam’s inland area, are:

The taxable is calculated as prescribed by current law provisions; the quantity of goods imported to Vietnam’s inland area; the import duty rate on each kind of materials and parts. The applied taxable prices and tax rates upon making the import declaration. Manufacturers and traders must register the list of goods imported as materials for producing goods imported to the inland area, and the limit of materials and parts used for producing imported goods, to the customs before they are imported to Vietnam’s inland area.

The value of imported materials and parts that make up a unit of goods imported to the inland area is calculated under the provisions on prices for calculating import duty applicable to imported goods at the time of being imported to Vietnam’s inland area.

More details may be found in Circular 08/2007/TT-BTC effective from March 3, 2007.

Ty Na

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