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Official Gazette

Tuesday, August 21, 2018

Duty break for temporary imports for re-export

Updated: 16:04’ - 10/06/2018
My company is a foreign-invested enterprise that wishes to temporarily import five-seat cars into Vietnam for re-export. What are the procedures for temporary import for re-export of such cars and are we entitled to import duty exemption for them?

Under Vietnamese laws, goods temporarily imported by an enterprise for re-export are exempt from import duty if they are:

• Temporarily imported for re-export or temporarily exported for re-import for display or use at trade fairs, exhibitions, product shows, sport, cultural or artistic events or other events; machines and equipment temporarily imported for testing, research and development of products; professional machines, equipment and tools temporarily imported for re-export or temporarily exported for re-import to serve work for a definite time or for use in processing activities for foreign traders, except machines, equipment, tools and vehicles of organizations and individuals licensed for temporary import for re-export for implementation of investment projects, construction or installation of works, or production;

• Machines, equipment, components and spare parts temporarily imported for replacement or repair of foreign seagoing ships or aircraft or temporarily exported for replacement or repair of Vietnamese seagoing ships or aircraft overseas; goods temporarily imported for re-export as supplies for foreign seagoing ships or aircraft moored at Vietnamese seaports or landing at Vietnamese airports;

• Goods temporarily imported for re-export or temporarily exported for re-import for use for warranty, repair or replacement;

• Import or export containers and vehicles in turnover by the mode of temporary import for re-export or temporary import for re-export; or

• Goods traded by the mode of temporary import for re-export within the time limit for temporary import for re-export (including the extended time limit) guaranteed by credit institutions or for which money amounts equal to import duty amounts have been deposited.

If wishing to temporarily import five-seat cars into Vietnam for re-export, your company must show documents proving cars to be temporarily imported for re-export by your company fall into one of the abovementioned categories.

However, your company may have to deposit a money amount equal to the import duty amount payable for five-seat cars to be temporarily imported for re-export within the time limit for temporary import for re-export (including the extended time limit) into the deposit account of the customs office at the State Treasury.

The latest car models at Vietnam Motor Show 2017 held in August 2017 by the Vietnam Automobile Manufacturers’ Association__Photo: The Anh/VNA
 
After temporarily imported cars are re-exported, your company may file a dossier to request import duty refund.

Upon the expiration of the time limit for temporary import for re-export, if your company fails to re-export cars out of Vietnam, the customs office will remit the deposited amount from its deposit account into the state budget. For case of guarantee, the credit institution has to remit a money amount equal to the import duty amount into the state budget based on information on the customs e-data processing system or notices of the customs office.

Regarding the customs procedures

To carry out the procedures for temporary import, upon the arrival of a temporarily imported car at the border gate, your company’s representative has to submit or produce to the border-gate customs office a dossier which must comprise:

• Cross-border transport permit granted by a competent agency: To produce the original;

• Vehicle registration, for temporarily imported foreign cars: To produce the original;

• Declaration form, for road vehicles temporarily imported for re-export: To produce the original; or declaration form, for road vehicles temporarily exported for re-import, bearing a temporary export certification by the border-gate customs office carrying out the temporary export procedures: To submit one original.

Upon the expiration of the time limit for temporary import, a dossier for carrying out the procedures for re-export of a car must comprise:

• Cross-border transport permit granted by a competent agency: To produce the original;

• Vehicle registration, for re-exported foreign cars: To produce the original;

• Declaration form, for road vehicles temporarily exported for re-import: To produce the original; or declaration form, for road vehicles temporarily imported for re-export, bearing a temporary import certification by the border-gate customs office carrying out the temporary import procedures: To submit one original.- (VLLF)
 

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