On February 29, 2024, the Ministry of Finance coordinated with the Embassy of the Republic of Korea in Vietnam to organize a dialogue conference between the Ministry of Finance and Korean businesses on tax and customs policies and administrative procedures. The Ministry of Finance has issued an official dispatch responding to businesses' problems. For some On-spot import and export issues, the Ministry of Finance has responded as follows.
1. Opinion: In case a Vietnamese enterprise, after signing a sales contract with a foreign trader, provides goods to an export processing enterprise (EPE) as designated by the foreign trader, will it carry out On-spot import and export procedures?
1-1 Answer:
The case in question is in the case of buying and selling goods specified in Point c, Clause 1, Article 35 of Decree No. 08/2015/NĐ-CP. Accordingly, the case of a foreign trader already present in Vietnam is not subject to On-spot import and export. However, in case the foreign trader is not present in Vietnam, the enterprise shall carry out On-spot import and export procedures according to regulations.
2. Opinion: Domestic activities of EPE as well as transactions with customers in Vietnam are all export activities, so it is proposed to remove the subject of export processing enterprises from the stopping On-spot import and export activities Clause.
2.1 Answer:
- Currently, customs procedures for goods purchased and sold between export processing enterprises and domestic enterprises comply with current regulations at Point b, Clause 1, Article 35 of Decree No. 089/2015/NĐ-CP, with no regulations of stopping On-spot import and export activities for this transaction.
- In case an EPE purchases and sells goods with a foreign trader but is assigned to deliver the goods to another Vietnamese enterprise, in order to carry out On-spot import and export procedures, it must meet the condition that the foreign trader is not present in Vietnam.
3. Opinion: The export processing enterprise is headquartered in Vietnam, has signed a goods supply contract with a foreign partner, and then supplied goods to another export processing enterprise. Will which customs process be applied in this case:
(1) Is it possible to choose whether or not to carry out customs procedures according to Article 74 of Circular No. 38/2015/TT-BTC for goods moving from one EPE to another one according to orders from international trading partners?
(2) If choosing to carry out customs procedures, do we have to follow customs procedures for On-spot import and export goods according to Article 86 of Circular No. 38/2015/TT-BTC? If following the On-spot import and export procedures according to Article 86, can the regulations under point b, clause 1, Article 86 be applied?
3-1. Answer:
(1) Point a, Clause 1, Article 74, Circular No. 38/2015/TT-BTC amended and supplemented in Clause 50, Article 1, Circular No. 39/2018/TT-BTC dated April 20, 2018 of the Ministry of Finance, in case of goods purchased, sold, rented, or borrowed between export processing enterprises, the export processing enterprise and the export processing enterprise's partners can choose whether or not to carry out customs procedures.
(2) The provisions of Clause 2, Article 75, Circular No. 38/2015/TT-BTC amended and supplemented in Clause 51, Article 1, Circular No. 39/2018/TT-BTC for goods purchased and sold between two export processing enterprises, in case of choosing to carry out customs procedures, enterprises will carry out On-spot export and import procedures prescribed in Article 86 of this Circular. Accordingly, in case an EPE purchases and sells goods with a foreign trader and is assigned to deliver goods to another Vietnamese enterprise, it must meet the condition that the foreign trader is not present in Vietnam. In cases where foreign traders are already present in Vietnam, they are not subject to On-spot import and export.