Declare and pay taxes on processed products brought into the domestic market

DNHN - Domestic firms that import goods to make and process items for export and then engage manufacturing and processing enterprises to produce and process them must disclose and pay tax on the goods when they are imported back into the country.

BHFLEX VINA Co., Ltd. has questions related to tax declaration and payment for goods that domestic enterprises hire export processing enterprises to re-process.

According to the General Department of Customs, in case BHFLEX VINA CO., LTD is a domestic enterprise with 100% foreign investment capital hiring an export processing enterprise, the company must carry out customs procedures according to the procedures for ordering goods to be processed overseas are specified in Article 67 of Circular 38/2015/TT-BTC as amended and supplemented in Clause 44, Article 1 of Circular 39/2018/TT-BTC.

Regarding the declaration and payment of tax when importing goods back into the country, according to the General Department of Customs, in case a domestic enterprise imports goods to produce or process goods for export. 

Following that, send imported goods or semi-finished products derived from imported goods to a manufacturing or processing firm; upon re-importation, they must disclose and pay import tax. as prescribed in Clause 2, Article 22 of Decree 134/2016/ND-CP for processed items imported into the domestic market.

In which, the import tax calculation value is the processing rent, the value of raw materials used in the processing provided by the export processing enterprise and the adjustments (if any) as prescribed in Clause 3. Article 17 of Circular 39/2015/TT-BTC. 

The value of supplies and raw materials that domestic firms deliver to export processing enterprises is excluded from the taxable value. 

Ninh Giang