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 import tax on 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.
– Domestic enterprises are not exempt from import tax as prescribed at Point a, Clause 9, Article 16 of the Law on Import Tax and Export Tax No. 107/2016/QH12.
– Domestic enterprises must declare and pay import tax upon temporary import and are not eligible for a refund of paid import tax upon re-export according to the provisions of Point dd, Clause 1, Article 19 of the Law on Import Tax and Export Tax No. 107/2016/QH13 because it is a case of renting and borrowing.

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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