On April 21, 2022, the General Department of Customs issued Official Letter 1400/TCHQ-TXNK in 2022 on tax treatment of goods rented and borrowed from export processing enterprises (“Dispatch 1400”).

Accordingly, Official Letter 1400 has recorded the guidance of the General Department of Customs related to customs procedures for goods rented or borrowed from export processing enterprises, the following will be detailed:
Subjects of application: Goods rented or borrowed by domestic enterprises from export processing enterprises in the form of temporary import for re-export to serve processing and production for export.
In case an export processing enterprise leases or borrows goods to a domestic enterprise to serve the production of products for the export processing enterprise itself:
– Export processing enterprises open temporary export declarations, domestic enterprises open temporary import declarations;
– After the lease or loan contract is terminated, the domestic enterprise shall carry out re-export procedures, and the export processing enterprise shall carry out procedures for re-importing the leased or borrowed goods for the production of these exported goods.

Dispatch 1400 takes effect from April 21, 2022.

* This newsletter is only for informational purposes about newly issued legal regulations, not used to advise or apply to specific cases.

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