What are current forms of temporary importation? Is it possible for a foreign-invested business entity to do temporary import according to Vietnam’s regulations? Thank you. This is a question from Ms. Nguyen Hai L*** from Ho Chi Minh City.
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LawNet would like to answer this question as follows:
Currently, temporary import for re-export is done in different forms. In which, it can be divided into two main types:
- Temporary import for re-export in the form of business;
- Temporary import for re-export in other forms: warranty, maintenance, lease, loan, etc.
According to Clause 2 Article 13 of Decree No. 69/2018/NĐ-CP of Vietnam’s Government:
Article 13. Temporary importation
1. A Vietnamese trader is entitled to do temporary importation regardless of its lines of business that are registered, in particular:
a) The trader must meet conditions prescribed in Section 2 of this Chapter if the goods to be temporarily imported must qualify certain conditions.
b) The trader must obtain a license to trade in temporary importation issued by the Ministry of Industry and Trade if the goods to be temporarily imported are included in the list of prohibited or suspended exports and imports, goods not be freely sold and used in Vietnam; goods subject to export and import quotas, tariff-rate quotas or requiring export or import licenses, Except for automatic export or import license. Required documents and procedures for licensing application are provided in Article 19, Article 20 hereof.
c) The trader will only carry out the procedures for temporary importation at the customs authority if the goods are not mentioned in Point a or Point b of this Article.
2. Foreign-invested business entities may only do temporary importation as prescribed in Article 15 hereof and are not allowed to do other types of temporary importation.
Thus, according to this provision, foreign-invested business entities are not allowed to do other types of temporary importation.
Foreign-invested business entities may only do temporary importation as prescribed in Article 15 of Decree No. 69/2018/NĐ-CP of Vietnam’s Government, specifically as follows:
Article 15. Other forms of temporary importation
1. Except for prohibited exports or imports; suspended exports or imports, a trader may temporarily import goods to Vietnam under a contract concluded with a foreign party for the purposes of the warranty and maintenance, lease, borrowing, use or other purposes for a specified period and re-export them out of Vietnam, in particular:
a) The trader shall obtain the temporary importation license if the goods have not been sold and used in Vietnam or are managed by export and import quotas, tariff-rate quotas or requiring export or import licenses, except that it obtained an automatic export or import license. Required documents and procedures for licensing application are provided in Article 19 and Article 20 hereof.
The Ministry of Industry and Trade shall issue temporary importation licenses for goods permitted to be sold and used freely in Vietnam in reliance on the written approval of the competent Ministry or ministerial-level agency in charge of such goods.
b) When putting goods prescribed in Point a Clause 1 of this Article into use in Vietnam, they must comply with regulations of the Ministry or ministerial-level agency in charge.
c) For goods not specified in Point a Clause 1 hereof, the trader will only carry out the procedures for temporary importation at the customs authority without requiring a temporary importation license.
2. The trader may temporarily import the good that was exported for recycling or warranty at the request of the foreign trader, and then re-export it to the foreign trader Procedures for temporary importation shall be carried out at the customs authority without requiring a temporary importation license.
3. Temporary importation of goods for displays, exhibition in trade fairs and exhibition.
a) The trader is entitled to temporarily import goods for the purpose of display or exhibition in trade fairs and exhibition, except for prohibited exports and imports; suspended exports and imports.
b) Procedures for temporary importation shall be carried out at the customs authority without requiring a temporary importation license.
c) The trader must comply with regulations on display in trade fairs and exhibition as provided in Section 3 and Section 4 Chapter IV of the Law on Commerce.
4. Except for prohibited exports and imports or suspended exports and imports, the trader shall follow the procedures for temporary importation at the customs authority without requiring a temporary importation license.
a) Temporarily importing goods for testing.
b) Temporarily importing spare parts under no contract for substitution or repairs purposes associated with foreign seagoing ships and aircrafts; temporarily importing spare parts for repairing seagoing ships and aircrafts under a contract concluded between a foreign ship-owner and a shipyard in Vietnam.
c) Temporarily importing vehicles that contain exported goods and imported goods according to the rotation method (Empty container with or without hanging hook and soft tray liner in container for liquid cargo).
5. Procedures for temporary importation of healthcare machinery and equipment from foreign organizations for healthcare delivery in Vietnam for humanitarian purpose; temporary importation of performance equipment, equipment for training and competition of art troupes, sports tournament and performance troupes shall be carried out at the customs authority without requiring a temporary importation license.
If healthcare machinery and equipment; performance equipment, equipment for training and competition to be temporarily imported are under the list of prohibited exports and imports; suspended exports and imports, or exports and imports requiring license or under given conditions, apart from customs dossiers as prescribed, following documents are also required:
a) A written permission of the competent authority giving reception of the healthcare group or the event group.
b) A written undertaking that the machinery and equipment will be used with proper purposes and as regulated by the competent authority giving the reception.
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In short, foreign-invested business entities may do temporary importation in the following cases:
1. Temporarily import goods to Vietnam under a contract concluded with a foreign party for the purposes of the warranty and maintenance, lease, borrowing, use or other purposes.
2. Temporarily import the good that was exported for recycling or warranty at the request of the foreign trader.
3. Temporary importation of goods for displays, exhibition in trade fairs and exhibition.
4. Temporarily importing goods for testing.
5. Temporarily importing spare parts under no contract for substitution or repairs purposes associated with foreign seagoing ships and aircrafts; temporarily importing spare parts for repairing seagoing ships and aircrafts under a contract concluded between a foreign ship-owner and a shipyard in Vietnam.
6. Temporarily importing vehicles that contain exported goods and imported goods according to the rotation method.
7. Temporary importation of healthcare machinery and equipment from foreign organizations for healthcare delivery in Vietnam for humanitarian purpose of other purposes.
Lan Anh
