TAX POLICY ON GOODS RE-IMPORTED FOR REPAIR THEN RE-EXPORTED TO A THIRD COUNTRY

Your business is struggling to export products to partners but the defective goods are returned and must be re-imported for repair. You want to export to a third country or into a non-tariff zone but do not understand the tax policy for this case? Let's join DOLPHIN Company to find out and answer this question through the article below.

1. Tax policy for goods re-imported for repair and then returned to partners (original buyers)

According to Official Dispatch No. 927/TCHQ-TXNK :

“Pursuant to Clause 9, Article 16 of the Law on Export Tax and Import Tax No. 107/2016/QH13 stipulates tax exemption for goods temporarily imported for re-export or temporarily exported for re-import for warranty, repair and replacement purposes.

Pursuant to Clause 1, Article 60 of the Law on Tax Administration No. 38/2019/QH14 stipulates: "Taxpayers whose amount of tax, late payment interest, and fines have been paid are greater than the amount of tax, late payment interest, and fines payable The tax amount, late payment interest, and overpayment fine can be offset against the tax amount, late payment interest, and fines owed or deducted from the tax amount, late payment interest, and fines payable in the next tax payment. or receive a refund of overpaid tax, late payment interest, or fines when the taxpayer no longer owes tax, late payment interest, or fines.

Pursuant to Clause 2, Article 13 of Decree No. 134/2016/ND-CP dated September 1, 2016 of the Government stipulating: "Goods temporarily imported for re-export or temporarily exported for re-import for warranty, repair, or replacement purposes." The provisions in Point c, Clause 9, Article 16 of the Law on Export Tax and Import Tax must ensure that the shape, use and basic characteristics of temporarily imported or temporarily exported goods are not changed and do not create other goods. .

In case of replacing goods under the warranty conditions of the sales contract, the replacement goods must ensure the shape, use and basic characteristics of the replaced goods.

Based on serial number 19 Type code table and instructions for use issued together with Decision No. 1357/QD-TCHQ dated May 18, 2021 of the Director General of the General Department of Customs guiding type code G13-Temporary import Exemption from use tax in the following cases: Goods temporarily imported for warranty, repair or replacement; Re-imported goods of various types of business export, export of processed products, export of manufactured products for export, export of products of export processing enterprises, export of other goods returned for repair and recycling then re-exported back to the customer or re-exported to a third country or into a non-tariff zone.

Pursuant to the above regulations and instructions, in case of re-importing exported goods for repair or recycling according to the warranty conditions of the sales contract and then re-exporting them back to the foreign customer (the original buyer). ) is subject to tax exemption. Customs authorities handle tax exemption during customs clearance. Enterprises declare type code G13 - tax-free temporary import with the tax-free code on the customs declaration. In case an enterprise has paid import tax for tax-exempt goods, the paid import tax amount will be handled according to the regulations on handling overpaid tax in Article 60 of the Law on Tax Administration No. 38/2019/QH14. ”

2. Tax policy for goods re-imported for repair and then re-exported to a third country or re-exported into a non-tariff zone

According to Official Dispatch No. 927/TCHQ-TXNK :

“In cases where goods are re-imported for repair or recycling and then exported to a third country or into a non-tariff zone (not returned to the original buyer), the customs authority has sufficient basis to determine whether the goods are subject to Refund or do not collect tax according to regulations, refund export tax (if any) and do not collect import tax."

3. Documents do not collect import tax when re-importing goods

• Official letter requesting not to collect export tax or import tax for exported and imported goods sent through the electronic data processing system of the customs authority according to the information criteria in Form No. 02 Appendix VIIa or official letter requesting not to collect export or import tax according to Form No. 09a Appendix VII issued with Decree 18/2021/ND-CP : 01 original copy.
• Declaration for temporary import of goods for repair.
• Bill of lading to import goods for repair.
• Commercial invoice when temporarily importing goods for repair
• Goods packing slip when temporarily importing goods for repair.
• Initial product export declaration.

4. Conclusion

Above is an article clarifying tax policy for goods re-imported for repair and then re-exported to a third country. The article is based on the practical experience of DOLPHIN Company. In addition, to update good articles about import and export or ship freight rates; train schedule. Customers can follow the fanpage to be updated with the latest articles.

If you have any questions or comments, please contact our DOLPHIN Company hotline or email according to the information below:

• DOLPHIN SEA AIR SERVICES CORPORATION
• Hotline: 1900986813
• Email: saleshan6@dolphinseaair.com
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