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

Accordingly, Dispatch 1400 has recorded the guidance of the General Department of Customs related to tax treatment in case imported goods are not re-exported in the form of temporary import for re-export:
– A domestic enterprise that rents or borrows goods from an export processing enterprise under a lease or loan contract to serve production shall, after the lease or loan term expires, the domestic enterprise must re-export the number of rented or borrowed goods.
– In case the enterprise fails to re-export the rented or borrowed goods, immediately after the end of the lease or loan term, a new customs declaration must be registered and full payment of taxes and fines (if any) in accordance with regulations. determined. In case of failure to declare and pay all taxes at the end of the lease or loan term, the customs authority shall impose tax according to the provisions of Clause 4, Article 17 of Decree No. 126/2020/ND-CP dated 19 October 2020 of the Government.

Dispatch 1400 takes effect from April 21, 2022.

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

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