Importers are entitled to tax refund when re-exporting unprocessed or processed goods

An officer of the Customs Branch of Hoa Khanh - Lien Chieu Industrial Park guides customs procedures for businesses.

CJ Vina Agri Co., Ltd. proposed the Customs agency provide specific guidance on tax refunds for imported goods of the company.

In this regard, according to the General Department of Customs, Clause 3, Article 2 of the Law on Import and Export Duties stipulates: "On-spot import and export goods and import-export goods by enterprises exercising their right to export, import, or distribute the goods are subject to import and export duties”.

Also in Point c, Clause 1, Clause 2, Article 19 of the Law on Import and Export Duties, any taxpayer who has paid import duty but the imports have to be re-exported shall receive a refund of import duty and does not have to pay export duty.

Paid import duties on the following imports that have to be re-exported shall be refunded and export duties thereon shall be canceled: Imports that have to be re-exported and returned to their owners; Imports that have to be exported to a foreign country or exported into a free trade zone for consumption therein. The re-export of goods must be done by the initial importer or a person authorized by the initial importer. The taxpayer shall be responsible for accurately and trustfully declaring re-exported goods that are previously imported goods, information about contract number, date, and buyer. The customs authority shall check the declared information and state the inspection results to serve the tax refund settlement.

Articles 3 and 7 of Decree 09/2018/ND-CP also clearly stipulate the right to import and export; carry out the trading of goods and activities directly related to the trading of goods.

Accordingly, the General Department of Customs said that CJ Vina Agri Co., Ltd. registers an export declaration B11, the declaration does not show information on the import declaration of previous imports, the inspection channelization for re-exported goods under the customs regime B11 is carried out according to the principle of risk management.

Therefore, the customs authority does not have enough grounds to consider tax refund under the provisions of the Law on Import and Export Duties and Decree 134/2016/ND-CP for imported goods that are re-exported according to the declarations of customs regime B11.

However, according to the General Department of Customs, if CJ Vina Agri Co., Ltd. registers an export declaration with the customs regime B13, the taxpayer declared on the customs declaration that the re-exported goods are imported goods belonging to the previous import declaration, the customs authority performed channelization, physical inspection of 100% of the consignment and has a basis to determine that the re-exported goods are previously imported goods, unused or processed goods and re-exported by the initial importer according to the provisions of Article 19 of the Law on Import and Export Duties and Article 34 of Decree 134/2016/ND-CP, the company will receive the paid import tax.