Regulations on temporary import and re-export: documents, customs procedures for temporary import and re-export, forms of temporary import and re-export, declaration and accounting for temporary import and re-export.
I. What is temporary import and re-export of goods?
According to Article 29 of the 2005 Commercial Law, temporary import and re-export of goods is understood as the activity of:
- Importing goods from foreign countries or from special areas located in Vietnam (considered separate customs areas) according to the provisions of law when entering Vietnam;
- Procedures must be followed when importing goods into Vietnam and procedures must be followed when exporting these same goods out of Vietnam.
The nature of temporary import and re-export is the activity of buying and selling goods. Therefore, temporary import and re-export business is carried out based on purchase contracts and sales contracts, signed between traders in Vietnam and traders in exporting countries.
Note:
>> A purchase contract does not necessarily have to precede a sales contract. This allows traders to take advantage of business opportunities in buying and selling their goods.
>> Regarding the circulation period of goods temporarily imported and re-exported into Vietnam:
- Normally, temporarily imported goods for re-export into Vietnam can only be circulated for a period of no more than 60 days from the date of completion of temporary import customs procedures;
- In case of need for an extension, the trader must make a written request for extension and send it to the Customs Sub-Department where the temporary import procedures are carried out. However, each batch of temporarily imported goods for re-export can only be extended a maximum of 2 times, each time not exceeding 30 days. After this period, the trader must destroy or re-export those goods out of Vietnam.
II. Conditions for goods to be temporarily imported for re-export
Pursuant to Article 122 of the 2005 Commercial Law, which stipulates that goods imported into Vietnam for display and introduction in Vietnam, in addition to meeting the conditions specified in Article 121 of the 2005 Commercial Law, must also meet the following conditions:
- Goods permitted to be imported into Vietnam according to regulations;
- Items and types of hazardous waste and environmental impacts specified in Appendix VI issued with Decree 69/2018/ND-CP such as: chemicals, scrap plastic, plastic waste and scraps, refrigeration equipment using CFC, used parts and accessories, used lead-acid batteries… will be prohibited from temporary import and re-export;
- For temporarily imported goods for display and introduction:
- Must be re-exported after the end of the exhibition and introduction, but not more than 6 months from the date of temporary import. If the time limit is exceeded, an extension procedure must be carried out at the customs office where the temporary import is made;
- In case goods are consumed in Vietnam, all regulations of Vietnamese law on imported goods must be complied with.
III. What are the forms of temporary import and re-export of goods?
Article 15 of Decree 69/2018/ND-CP stipulates the forms of temporary import and re-export of goods as follows:
1. Temporary import and re-export of goods under business form
For conditional temporary import and re-export business:
➤ Temporary import and re-export of goods with conditions:
- Frozen food group (details in Appendix VII of Decree 69/2018/ND-CP);
- Group of goods subject to special consumption tax (details in Appendix VIII of Decree 69/2018/ND-CP);
- Used goods group (details in Appendix IX of Decree No. 69/2018/ND-CP).
➤ Regulations on conditions for trading goods:
- Legally established in accordance with the provisions of the Enterprise Law and granted a temporary import and re-export business code by the Ministry of Industry and Trade;
- Not allowed to entrust or accept entrustment for temporary import and re-export of conditionally temporarily imported and re-exported goods;
- Do not change the business type from temporary import for re-export to import for the purpose of domestic consumption of conditionally temporarily imported and re-exported goods;
- The bill of lading for temporarily imported and re-exported goods must be a straight bill of lading, clearly stating:
- Temporary import and re-export business code of the enterprise;
- Or temporary import and re-export business registration license number issued by the Ministry of Industry and Trade for used goods.
2. Temporary import for re-export under lease, loan, maintenance and warranty contracts
- Vietnamese traders have the right to sign contracts with foreign traders on temporarily imported and re-exported goods for the purpose of leasing, borrowing, maintenance, and warranty (except for cases where goods are prohibited or temporarily suspended from export and import);
- After leasing, borrowing, maintaining, and warranting temporarily imported and re-exported goods for a certain period of time, foreign traders continue to re-export those goods out of Vietnam.
3. Temporary import for re-export for warranty and recycling at the request of foreign traders.
- Traders are allowed to temporarily import goods that they have exported for warranty or recycling at the request of foreign traders and re-export them back to foreign traders;
- Temporary import and re-export procedures are carried out at customs offices and do not require a temporary import and re-export license.
4. Temporary import and re-export of goods for introduction, display, participation in trade exhibitions and fairs
- Traders are allowed to temporarily import goods for introduction, display, and participation in trade exhibitions and fairs, except in the following cases:
- Goods in the group prohibited from export and import;
- Goods temporarily suspended from export and import.
- Temporary import and re-export procedures are carried out at customs offices and do not require a temporary import and re-export license.
- Traders must ensure compliance with regulations on introduction, display, and participation in trade exhibitions and fairs as prescribed in Section 3 and Section 4, Chapter IV of the Commercial Law.
5. Temporary import and re-export of goods for humanitarian and other purposes
➤ For temporary import and re-export of goods such as:
- Medical examination and treatment instruments, machinery and equipment of foreign organizations for medical examination and treatment in Vietnam for humanitarian purposes;
- Competition and training equipment, performance tools of competition teams, art troupes, and sports performances.
Temporary import and re-export procedures are carried out at customs offices and do not require a temporary import and re-export license.
➤ In case medical examination and treatment equipment, competition and training equipment, performance equipment are on the list of prohibited goods, temporarily suspended from export and import, or goods imported and exported under license or conditions, when carrying out temporary import and re-export procedures, in addition to the customs dossier as prescribed, the following documents must be additionally submitted:
- Documents from organizations and competent authorities on permission to receive delegations organizing events and medical examinations;
- Commitment letter to use for the right purpose and comply with the legal regulations of the organization or agency authorized to receive event organizing and medical examination and treatment delegations;
- The Ministry of National Defense and the Ministry of Public Security shall consider and permit the temporary import and re-export of military and security equipment, weapons and ammunition for security and defense purposes.
IV. Customs procedures and documents for temporary import and re-export of goods
1. Temporary import and re-export documents
Details of temporary import and re-export documents include:
- Transport documents (in case of goods transported by rail, sea, air, multimodal transport according to the provisions of law);
- Import license (for goods, notice of inspection results from specialized inspection agencies as prescribed by law);
- Customs declaration form issued by the Ministry of Finance.
2. Customs procedures for temporary import and re-export
2.1. Procedures for carrying out customs procedures for temporary import and re-export of goods
- Step 1: Customs declarant registers and carries out customs procedures;
- Step 2: The customs authority reviews and decides on customs clearance for the customs declarant;
- Step 3: Liquidate the temporary import and re-export declaration after all goods are re-exported and re-imported.
2.2. How to carry out temporary import and re-export customs procedures
➤ For direct submission:
Time limit for registration, receipt and inspection of customs dossiers: Immediately after the declarant submits and presents customs dossiers in accordance with the provisions of law (based on Clause 1, Article 23 of the Customs Law).
Time limit for completing document inspection, physical inspection of goods and means of transport:
- Completion of document examination: No later than 2 working hours, from the time the customs authority receives complete customs documents;
- Completion of physical inspection of goods: No later than 8 working hours, from the time the customs declarant fully presents the goods to the customs authority.
- In case:
- Goods subject to specialized inspection of quality, animal and plant quarantine, food safety, health, and culture according to relevant laws: The time to complete the actual inspection is calculated from the time the specialized inspection results are obtained according to regulations;
- Complicated inspection, shipments of many types or large quantities: The head of the customs office at the place of customs clearance will decide to extend the time for actual inspection of the goods, the maximum extension time shall not exceed 2 days.
➤ Online submission form:
- Time limit for registration, receipt and inspection of customs dossiers: Immediately after the declarant submits and presents customs dossiers in accordance with the provisions of law (Clause 1, Article 19 of the Customs Law);
- The time limit for completing the physical inspection of goods and means of transport (calculated from the time the customs declarant fully performs the requirements on customs procedures at Point a, Point b, Clause 1, Article 16 of the Customs Law) is prescribed as follows:
- No later than 8 working hours: For import and export shipments, partial physical inspection of goods will be applied based on probability;
- No later than 2 working days: For import and export shipments, the form of physical inspection of all goods is applied. In case the import and export shipment has a large quantity and the inspection is complicated, the inspection time can be extended, but not more than 8 working hours.
V. How to declare and account for temporarily imported and re-exported goods
1. How to declare temporarily imported and re-exported goods
1.1. How to declare import tax
- It is necessary to accurately determine which country is exporting the goods and what the HS code of the goods is to look up import tax rates;
- According to Clause 3, Article 5 of the Law on Export and Import Tax 2016, import tax rates include: preferential tax rates, special preferential tax rates and normal tax rates (*);
- Import tax declaration dossier is a customs dossier (based on Clause 5, Article 43 of the Law on Tax Administration 2019). Customs dossier for imported goods is specified in Article 16 of Circular 38/2015/TT-BTC (amended in Circular 39/2018/TT-BTC);
- The time for determining import tax on imported goods is the time of registering the customs declaration (based on Clause 2, Article 8 of the Law on Import and Export Tax 2016);
- Customs declarants can choose:
- Tax declaration;
- Or make a guarantee based on self-declaration and tax calculation of the customs declarant;
- Or pay taxes immediately when there is a document recording the tax payable.
- The time for paying import tax on imported goods is before customs clearance or release of goods (based on Clause 4, Article 55 of the 2019 Law on Tax Administration, referring to Article 9 of the 2016 Law on Export and Import Tax).
>> See more: Instructions on tax payment deadline for imported goods
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(*) For details, please visit:
➧ Regular import tax rates:
- Decision 15/2023/QD-TTg;
- Decision 45/2017/QD-TTg;
- Decision 28/2019/QD-TTg.
➧ Preferential import tax rates:
- Decree 101/2021/ND-CP;
- Decree 51/2022/ND-CP.
➧ Special preferential import tax rates:
- Decree 112/2022/ND-CP (Vietnam – Chile);
- Decree 114/2022/ND-CP (Vietnam – Cuba);
- Decree 115/2022/ND-CP (Vietnam – CPTPP);
- Decree 113/2022/ND-CP (Vietnam – Eurasian Economic Union);
- Decree 116/2022/ND-CP (Vietnam – European Union);
- Decree 117/2022/ND-CP (Vietnam – United Kingdom of Great Britain and Northern Ireland);
- Decree 118/2022/ND-CP (Vietnam – ASEAN – China);
- Decree 119/2022/ND-CP (Vietnam – ASEAN – Korea);
- Decree 120/2022/ND-CP (Vietnam – ASEAN – Japan);
- Decree 121/2022/ND-CP (Vietnam – ASEAN – Australia–New Zealand);
- Decree 122/2022/ND-CP (Vietnam – ASEAN – India);
- Decree 123/2022/ND-CP (Vietnam – ASEAN – Hong Kong);
- Decree 124/2022/ND-CP (Vietnam – Japan);
- Decree 125/2022/ND-CP (Vietnam – Korea);
- Decree 126/2022/ND-CP (Vietnam – ASEAN);
- Decree 127/2022/ND-CP (Vietnam – Laos);
- Decree 129/2022/ND-CP (Vietnam – RCEP).
1.2. How to declare VAT on imported goods
- The import VAT schedule is specified in detail in Circular 83/2014/TT-BTC;
- The VAT declaration dossier for imported goods is a customs dossier (based on Clause 5, Article 43 of the Law on Tax Administration 2019). Customs dossiers for imported goods are specified in Article 16 of Circular 38/2015/TT-BTC (amended by Circular 39/2018/TT-BTC);
- The time for determining VAT on imported goods is the time of registering the customs declaration (based on Clause 6, Article 8 of Circular 219/2013/TT-BTC);
- Customs declarants can choose 1 of the following 3 options:
- Tax declaration;
- Guarantee implementation based on self-declaration and tax calculation of customs declarants;
- Pay taxes immediately upon receipt of tax receipts.
- The time for paying VAT on imported goods is before customs clearance or release of goods (based on Clause 4, Article 55 of the 2019 Law on Tax Administration, referring to Article 9 of the 2016 Law on Export and Import Taxes).
2. Accounting for temporarily imported and re-exported goods
➤ When temporarily importing
- Reflecting the value of imported goods, import tax and import VAT payable, total amount payable or paid (price including import tax), record:
- Debit account 152, 153, 156, 211, 611…;
- There are accounts 111, 112, 331…;
- Credit account 3333 – Export and import tax (import tax details);
- Credit account 3332 – Special consumption tax (if any);
- Have account 333… – If there are other taxes.
- For temporarily imported and re-exported goods not owned by the unit, transit goods are re-exported immediately at the bonded warehouse and when paying tax, record:
- Debit account 138 – Other receivables;
- There are accounts 3333, 3332, 333…
➤ When paying import tax to the state budget:
- Debit account 3333, 3332, 333…;
- There are accounts 111, 112…
➤ When re-exporting goods, export tax is not payable:
- Reflecting the cost of exported goods, record:
- Debit account 632 – Cost of goods sold;
- There are accounts 152, 155, 156…
- Reflecting sales revenue, record:
- Debit account 111, 112, 131…;
- Credit account 511 – Sales revenue and service provision.
- For import tax paid at the import stage when goods are re-exported:
- Debit account 3333, 3332, 333…;
- Credit account 632 – Cost of goods sold (goods issued for sale);
- Credit account 152, 153, 156 – Goods (returned goods).
- When the import tax paid at the import stage but not owned by the unit is refunded, record:
- Debit account 3333, 3332, 333…;
- There are 138 – Other receivables.
- When receiving money from the state budget, record:
- Debit account 111, 112…;
- There are accounts 3333, 3332, 333…
VI. Questions related to temporary import and re-export of goods
1. In case a business is refunded the tax paid at the import stage when re-exporting fixed assets, how will it be recorded and accounted for?
For the tax paid to be refunded at the import stage when re-exporting fixed assets, the accounting is as follows:
- Debit account 3333 – Export and import tax (import tax details) if deducted from the amount payable;
- Debit account 3332 – Special consumption tax (if any);
- Debit account 333… – If there are other taxes;
- Credit account 211 – Tangible fixed assets (if fixed assets are returned);
- Credit account 811 – Other expenses (if selling fixed assets).
When receiving money from the state budget, record:
- Debit account 111, 112…;
- There are accounts 3333, 3332, 333…
2. In case of exporting poor quality goods, the company re-imports them for repair and re-exports them to that customer (temporary import for re-export). In this case, does the company have to issue an invoice when re-exporting the returned goods to the customer and is it exempt from tax?
According to Clause 2, Article 15 of Decree 69/2018/ND-CP, suppliers are allowed to temporarily import exported goods for repair, warranty, or replacement at the request of customers and re-export them back to those customers. Temporary import and re-export procedures are carried out at customs offices and do not require a temporary import and re-export license.
Therefore, when temporarily importing exported goods for repair, warranty, or replacement according to customer requirements, businesses do not need to issue invoices when re-exporting them back to the customer.
In addition, according to Point c, Clause 9, Article 16 of the Law on Export and Import Tax 2016, temporary import and re-export of goods for repair, warranty, or replacement within a certain period of time will be exempt from export and import tax.