What is on-site import and export? On-site import and export goods include? On-site import and export procedures – Free download of export and import customs declarations.
I. What is on-site import and export?
On-site import and export is a form of goods sold by enterprises in Vietnam (including enterprises with foreign investment capital) to foreign enterprises but delivered to other enterprises in Vietnam as designated by foreign traders.
II. What are the on-site import and export goods?
Goods permitted for on-site export and import are specified in Clause 1, Article 86 of Circular No. 38/2015/TT-BTC, including:
- Processed products; borrowed or rented machinery and equipment; surplus raw materials and supplies; scrap and waste products under processing contracts as prescribed in Clause 3, Article 32 of Decree No. 187/2013/ND-CP;
- Goods traded between domestic enterprises and export processing enterprises or enterprises located in duty-free zones;
- Goods are bought and sold between Vietnamese enterprises and foreign traders without a presence in Vietnam and are assigned to be delivered and received with other enterprises in Vietnam by foreign traders.
III. On-site export and import records
Basically, on-site import and export documents are similar to regular import and export documents.
For the on-site import-export process to go smoothly, businesses need to prepare the following documents:
- Customs declaration (issued with Circular 38/2015/TT-BTC);
- Sales contract;
- Value added tax invoice or sales invoice in lieu of commercial invoice (for domestic enterprises exporting to export processing zones or duty-free zones);
- Transport documents;
- Goods quality inspection certificate (if the goods are on the list of goods that must undergo specialized inspection);
- Other relevant documents depending on each specific case…
FREE DOWNLOAD:
>> Export customs declaration – Form HQ/2015/XK;
>> Import customs declaration – Form HQ/2015/NK.
IV. On-site import and export procedures
1. Procedures for carrying out on-site import and export procedures
Enterprises carry out on-site import and export procedures according to the following steps:
➤ Step 1: Exporting enterprises carry out customs declaration procedures
Based on the contract signed with a foreign trader specifying delivery in Vietnam, the exporting enterprise must fully declare the corresponding criteria on the declaration.
➤ Step 2: Importing enterprises carry out import procedures on the spot
After receiving all documents, papers and goods from the exporting enterprise, the importing enterprise goes to the Customs Branch to register for on-site import procedures suitable for the type of import and export.
➤ Step 3: Customs Branch carries out import procedures on the spot
Customs Branch conducts:
- Receive declarations from import enterprises;
- Calculate tax, seal sample goods (if any);
- Confirm procedures have been completed, business transferred and records stored;
- Notify the local Tax Department where the import enterprise’s tax is monitored.
➤ Step 4: Export enterprise
After the import procedures are completed, the exporting enterprise submits the application to the Customs Sub-Department to register for on-site export procedures.
➤ Step 5: Customs Branch carries out on-site export procedures
The Customs Sub-Department receives the customs declaration and other relevant documents provided by the exporting enterprise. Then, the Sub-Department proceeds with the steps to register the declaration according to the regulations corresponding to on-site import and export activities.
2. Time limit for on-site import and export procedures
Pursuant to Clause 4, Article 86 of Circular 38/2015/TT-BTC (amended in Circular 39/2018/TT-BTC), within 15 working days from the date of customs clearance of exported goods and after completing the delivery of goods, the on-site importing enterprise must carry out customs procedures.
V. Frequently asked questions when performing on-site import and export procedures
1. What are the benefits of on-site import and export?
On-site import and export helps businesses save a lot of costs, transportation time, fast delivery and ensures the safety of goods.
2. Are purchases made under the form of on-site import and export subject to contractor tax?
Pursuant to Clause 2, Article 1 of Circular 103/2014/TT-BTC, the subjects subject to contractor tax include:
- Foreign organizations and individuals supplying goods in Vietnam in the form of on-site import and export and generating income in Vietnam on the basis of contracts signed between the two parties (except for cases of processing and returning goods to foreign traders);
- Organizations and individuals distributing and supplying goods according to the delivery conditions of international trade terms.
➨ Thus, goods purchased in the form of on-site import and export are subject to contractor tax except for the above-mentioned cases of processing and return of goods.
>> You may be interested in: What is contractor tax?
3. Are goods imported and exported on the spot exempt from import tax?
In case an enterprise imports raw materials and supplies for processing and manufacturing export goods, then re-exports or sells products processed and manufactured from imported raw materials and supplies under the form of on-site export, it is exempt from import tax.
>> See details: Subjects not subject to import tax.