To: Customs Department of Hai Phong city

In response to Official Dispatch No. 2291/HQHP-TXNK dated 13/2/2018 from Customs Department of Hai Phong city regarding tax on wastes and rejects from manufacturing exported products within the norms, below are opinions of Department of Export and Import Duties:

1. Import duty:

On 08/12/2016, the General Department of Customs issued Official Dispatch No. 11567/TCHQ-TXNK in response to enquiries about implementation of the Law on Export and import duties No. 107/2016/QH13 and Decree No. 134/2016/ND-CP dated 01/9/2016, according to Article 12 of which, wastes and rejects derived from raw materials, supplies and part imported from export production are subject to VAT, excise tax and environmental protection tax (if any) when they are sold domestically.

2. VAT:

Pursuant to Clause 20 Article 4 of Circular No. 219/2013/TT-BTC dated 31/12/2013, raw materials imported for export production are exempt from VAT. When the imports exempt from VAT mentioned in this Article is repurposed, they shall be subject to VAT, which shall be declared and paid during the import to the customs authority to which the customs declaration is registered. The organizations and individuals that sell them in the domestic market shall declare and pay VAT to their supervisory tax authorities.

For your reference and compliance./.

...

...

...

PP DIRECTOR
DEPUTY DIRECTOR




Nguyen Ngoc Hung