General Rules for Imported Goods of Export Processing Enterprises in Vietnam

Short answer: Yes. Goods imported for the production of export products by export processing enterprises (EPEs) must complete customs procedures as prescribed and be used for the correct production purpose, except in certain cases where the EPE and its partner may choose whether or not to complete customs procedures (e.g., goods purchased, sold, leased, or borrowed between EPEs). General provisions in Circular 39/2018/TT-BTC (amending Circular 38/2015/TT-BTC).

Legal basis

• Circular 39/2018/TT-BTC — general provisions for imported goods of EPEs;
• Customs Law 2014; Decree 134/2016/ND-CP (import-export tax policies for EPEs).

General principles for imported goods of EPEs

• Goods imported for the production of export products by EPEs must complete customs procedures and be used for the declared purpose;
• EPEs are exempt from import tax on goods imported for producing export products under current tax policies;
• Goods not used for the correct purpose (sold domestically, repurposed) must be declared and taxed as prescribed.

Cases where customs procedures may optionally be completed

• Goods purchased, sold, leased, or borrowed between EPEs;
• Materials, supplies, machinery, and equipment under processing contracts between EPEs (performed under processing regulations);
• Other cases as prescribed by Circular 39/2018/TT-BTC.

Key notes

• EPEs must implement a periodic import — export — inventory settlement reporting regime with customs authorities;
• Violations regarding the misuse of tax-exempt goods may lead to tax arrears collection and administrative sanctions in the customs and tax sectors.

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How ANT Legal can assist

ANT Legal advises on customs procedures, tax policies for export processing enterprises, and handles arising legal issues. For advice on your specific case, please contact our lawyers at 0966.475.966.