Exempt import duties for FIEs

Under the recent instruction given by the General Department of Customs, based on preferential policies on exemption of import duties and the Foreign Investment Law, if an FIE buys imported fixed assets from another FIE, which were already exempted from import duties, the FIE will be permitted to be exempt from any import duties based on the condition that already purchased commodities must be calculated and subtracted into the list of duty free commodities of the FIE.
If the FIE wants to transfer these purchased commodities, the authorised customs agency is not permitted to collect import duty arrears.
In addition, the enterprise will be refunded with any import duties (if the FIE had already paid such duties) or exempted from any import duties if it purchasing goods from a foreign business and the foreign business previously bought commodities from a Vietnamese business exporter but the purchased goods that were already purchased by the foreign business are still kept at bonded warehouse.
If the enterprise brings the goods into the domestic market and then re-exports them, the FIE will have to make declarations for temporary importation and re-exportation and customs entries based on the current customs regulations.

 

Category: Legal