This circular guides enterprises in Quang Ninh Province and other provinces on the handling of import tax for goods temporarily imported and re-exported to China, specifying documents required and methods for applying tax policies under the through-traffic trade form.
Scope of application
Enterprises engaged in temporary imports and re-exports to China; Customs authorities
Key points
- Enterprises may apply tax policies under the through-traffic trade form if they have completed re-exports (no import tax or late payment penalties are due). Article 1.
- Documents required for applying tax policies include a request letter, export-import contract, permission for temporary imports, customs declaration of imported goods, and confirmation of business income and profit taxes paid. Article 2.
- For goods temporarily imported after June 1, 1998, import tax will only be waived for the quantity re-exported within the permitted period; beyond this period, import tax and late payment penalties must be paid if applicable. Article 3.
- The Customs authority handling temporary imports shall implement no-tax collection, penalty exemption, and refund according to regulations. Article 4.
- Enterprises that re-export goods after the permitted period are responsible for paying import tax and late payment penalties; upon re-export, they will be refunded the corresponding amount of taxes paid. Article 3.
🌐 Social impact of this document
- To help enterprises reduce financial burdens from import taxes on temporarily imported goods.
- To facilitate management and customs procedures for temporarily imported and re-exported goods.
- To contribute to promoting border trade between Vietnam and China.
❓ Frequently asked questions
What documents do enterprises need to prepare to apply tax policies under the through-traffic trade form?
Enterprises must prepare a request letter, export-import contract, permission for temporary imports, customs declaration of imported goods, and confirmation of business income and profit taxes paid.
If goods temporarily imported after June 1, 1998 are not re-exported within the permitted period, what should be done?
Enterprises must pay import tax and late payment penalties if applicable for the quantity of goods not re-exported.
How does the Customs authority implement no-tax collection, penalty exemption, and refund?
Based on documents and regulations in this circular to implement no-tax collection, penalty exemption, and refund for enterprises.
Can enterprises be refunded taxes paid when re-exporting goods after the permitted period?
Yes, but they must first pay import tax and late payment penalties.
Full text
LETTER
OF THE MINISTRY OF FINANCE NUMBER 2505 TC/TCT DATED JULY 10, 1998
REGARDING THE TREATMENT OF IMPORT TAXES FOR TEMPORARY IMPORTED GOODS
REEXPORTED TO CHINA
Respected, - PEOPLE'S COMMITTEES OF PROVINCES AND MUNICIPALITIES DIRECTLY UNDER THE CENTRAL GOVERNMENT
- MINISTRIES, AGENCIES EQUIVALENT TO MINISTRIES, AND GOVERNMENT-ADMINISTERED ORGANIZATIONS.
Pursuant to the opinions of the Prime Minister in Circulars No. 4770/KTTH dated August 29, 1995; and No. 1528/VPCP-KTTH dated April 25, 1998 regarding the handling of taxes for temporarily imported goods reexported to China, the Ministry of Finance hereby provides guidance as follows:
For consignments of temporarily imported goods that are subsequently reexported to China by enterprises in Quang Ninh Province and other provinces, if such goods have been actually reexported, they shall be subject to tax policies applicable to transit trade (no import tax; late payment penalties will apply if any).
The documents required for the application of tax policies under the transit trade form include:
* A letter requesting the policy from the enterprise
* Export and import contracts signed with foreign entities.
* Permission to temporarily import and reexport issued by the Ministry of Trade.
* Import and export declaration forms settled with customs authorities.
* Confirmation that the enterprise has paid all turnover tax and income tax as required by the local tax authority directly managing the enterprise.
* Entrusted export and import contracts (if applicable).
For consignments temporarily imported after June 1, 1998, no import tax or late payment penalties will be levied for goods that have been actually reexported within the permitted temporary import-reexport period granted by the Ministry of Trade (or authorized agency). If enterprises fail to reexport goods beyond this period, they must pay import taxes on unsold goods at the end of the permitted period; if payments are delayed, penalties will be imposed according to tax law. When enterprises subsequently reexport these goods, they will receive a refund corresponding to the amount of imported goods that have been reexported.
Based on the above procedures, customs authorities responsible for temporary importation shall not levy taxes or late payment penalties and shall process refunds for enterprises accordingly.
The General Customs Department instructs local customs offices to implement these guidelines uniformly. Any issues encountered during implementation should be promptly reported to the Ministry of Finance for resolution.
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