General Department of Customs removed bottlenecks on import and export type codes in Vietnam

General Department of Customs issued Official Dispatch 1478/TCHQ-GSQL on April 26, 2022, I responded to a number of problems with export and import codes in Vietnam.

General Department of Customs removed bottlenecks on import and export type codes in Vietnam (Illustration)

According to this Official Dispatch, on the basis of the problems of the provincial and municipal customs departments, the General Department of Customs shall guide the implementation of a number of contents as follows:

* Regarding the export type code in Vietnam:

- Ask: Exporting scrap and scrap products of export processing enterprises into the domestic market is exporting on the spot under direct purchase contracts, not specified and not the case of exercising the right to trade and export goods sourced from domestic purchase of export processing enterprises in Vietnam. What type code is B11 or H21?

Answer: According to the provisions of Clause 4, Article 75 of Circular 38/2015/TT-BTC as amended and supplemented in Clause 51, Article 1 of Circular 39/2018/TT-BTC: Scrap and scrap products of export processing enterprises in Vietnam  may be sold into the domestic market or exported abroad. Customs procedures must be carried out.

According to the guidance in Decision 1357/QD-TCHQ dated May 18, 2021, the type code B11- Business export shall be used in case the enterprise exports goods abroad or exports to a non-tariff zone, export processing enterprise in Vietnam  or exports on site as specified by a foreign trader under a sales contract.

- Q: Manufacturing enterprises in Vietnam  sell and liquidate raw materials, materials, machinery and equipment into the country using type code B13?

Answer: According to point b order number 3 of Decision 1357/QD-TCHQ: In case the export processing enterprise in Vietnam  liquidates imported goods into the country using type code B13.

- Q: According to Decision 1357/QD-TCHQ dated May 18, 2021, type code B13 is used in case of exporting raw materials and surplus materials of processing activities.... Type code E54 exports processing materials from one processing contract to another. Therefore, it is recommended that the General Department of Customs guide the enterprise to transfer raw materials of processing contracts to other processing contracts of the enterprise as specified by the processor, what type code is used?

Answer: According to the instructions for using the type code in Decision 1357/QD-TCHQ dated May 18, 2021,:

+ Type code E54 - export of raw materials from one contract to another contract used in case of transfer of raw materials and supplies from one contract to another, excluding the transfer of equipment and machinery.

+ Type code B13 - Export of imported goods used in case of export of raw materials, surplus materials of processing, production, export processing or into non-tariff zones, export processing enterprises in Vietnam  or on site export as specified by foreign traders.

Based on the above guidance, in case the enterprise transfers raw materials and supplies from one processing contract to another processing contract, the type code E54 shall be used.

* Regarding the import type code in Vietnam:

- Q: Type A12 is used in case Vietnamese enterprises import for production. Do enterprises with foreign investment capital (FDI) imported for domestic production use type A12?

Answer: Foreign-invested economic organizations (foreign-invested enterprises) established and operating in accordance with the law of Vietnam are Vietnamese enterprises.

Therefore, in case foreign-invested enterprises import raw materials, materials, machinery and equipment for domestic production (including imported goods for the implementation of investment projects), they shall use type code A12 (Enter production business).

- Q: Currently, there is no regulation on the type of use in case low-value export goods sent via international courier and international postal services have to be re-imported.

Answer: In case of low-value export goods sent via international courier services, if they have to be re-imported, declare the type code A31.

- Q: In Article 21 of Circular 38/2015/TT-BTC (amended and supplemented in Circular 39/2018/TT-BTC), the regulations on customs procedures for declaring changes in domestic use and consumption. When enterprises in Vietnam change the purpose of use (not domestic consumption) of imported goods, there are no clear regulations on the type code. Request the General Department of Customs  to guide the implementation.

Answer: Goods temporarily imported in Vietnam only have two forms of treatment: re-export or domestic consumption if not re-export. In case temporary imports change their use (change to other customs management regimes) without domestic consumption, the temporary import declaration must be paid by declaring the re-export declaration and then declaring the import declaration according to the new use to monitor further management (e.g. import processing or export production...)

See the full contents of Official Letter 1478/TCHQ-GSQL dated 26/4/2022.

Bao Ngoc

9 lượt xem
  • Address: 19 Nguyen Gia Thieu, Vo Thi Sau Ward, District 3, Ho Chi Minh City
    Phone: (028) 7302 2286
    E-mail: info@lawnet.vn
Parent company: THU VIEN PHAP LUAT Ltd.
Editorial Director: Mr. Bui Tuong Vu - Tel. 028 3935 2079
P.702A , Centre Point, 106 Nguyen Van Troi, Ward 8, Phu Nhuan District, HCM City;