Import Procedure for Materials to Execute Processing Contracts for Foreign Traders

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The Editorial Board of LAW SECRETARY would like to address Mr. Ngoc Anh's issue as follows:

According to the provisions of Article 61 Circular 38/2015/TT-BTC, as amended and supplemented at Clause 40 Article 1 Circular 39/2018/TT-BTC, the procedures for importing raw materials and supplies for performing processing contracts for foreign traders are regulated as follows:

For imported raw materials and supplies (including finished products provided by the ordering party for attachment or packaging with processed products to form a synchronous item; raw materials and supplies self-imported by the processing party from abroad), customs procedures are carried out in accordance with the customs procedures for imported goods stipulated in Chapter II Circular 38/2015/TT-BTC. Specifically:

- Step 1: The enterprise carries out customs procedures for importing raw materials and supplies to perform processing contracts for foreign traders.

- Step 2: Information on the customs declaration is automatically checked by the System to assess the eligibility for accepting the customs declaration registration. In case of customs declaration on paper customs declarations, customs officials check the eligibility for registration and the documents belonging to the customs dossier.

- Step 3: Based on the customs inspection decision notified by the System, the handling is carried out:

- Accept the declared information on the Customs Declaration and decide on customs clearance of goods.- Check the related documents belonging to the customs dossier submitted or presented by the customs declarant or the related documents on the national single window portal to decide on customs clearance of goods or actual inspection of goods to make a customs clearance decision.

- Step 4: Customs clearance of goods.

Customs procedures for raw materials and supplies provided by organizations and individuals in Vietnam as designated by foreign traders are carried out in the form of local export and import in accordance with the provisions of Article 86 Circular 38/2015/TT-BTC.

Note, for raw materials and supplies produced or purchased in the Vietnamese market by the processor, the customs declarant is not required to complete customs procedures (except in cases of purchase from export processing enterprises or enterprises in non-tariff zones).

For raw materials and supplies imported under the form of imported for production of exported products before signing the processing contract, the processor is allowed to use these imported materials and supplies to supply for the processing contract. Before using the materials and supplies for the processing contract, the organization or individual shall carry out local export-import procedures as prescribed in Article 86 Circular 38/2015/TT-BTC.

Nguyen Trinh

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