Based on the nature of the transaction of goods, the Ministry of Finance recently sent a report to the Government proposing alternative policies when customs procedures are not carried out for spot import and export activities specified at Point c, Clause 1, Article 35 of Decree No. 08/2015/ND-CP as below.
Case 1: The Enterprise is not an EPE company:
If there happens the import – export trading under the direction of a foreign trader without presence in Vietnam, it can be converted into an EPE Company. Because according to the current Law, the exchange of goods between the domestic and EPE Company is an import-export relationship. If there is an element of a foreign trader who is not present in Vietnam and appoints the delivery and receipt of goods, the exchange goods between domestic enterprises and EPE Company are not affected. .
Case 2: The goods purchased or sold originate from the domestic market:
It will be proceeded as trading activities between two domestic enterprises, pay VAT and other taxes as for domestic trading activities.
Case 3: The goods are produced from imported materials in the form of imported production and export that have been exempted from import tax:
Enterprises will carry out procedures for exporting goods into bonded warehouses/separate customs areas. Vietnamese businesses purchasing goods carry out import procedures from bonded warehouses/separate customs areas like importing from abroad. Tax policy applies to each respective type.
Case 4: The enterprise does not choose three cases as above:
Enterprises open change purpose CD for imported materials that have been exempted from taxes and fully pay taxes as prescribed. When making domestic purchases, must pay taxes such as VAT, contractor tax... according to regulations.
In order to facilitate spot import and export activities during the transfer period, enterprises have time to arrange long-term production and business plans and avoid interruptions in the supply of goods for production, the Ministry of Finance suggested that after this amendment is officially promulgated, it will be granted a maximum period of no more than 1 year from the effective date of this Decree.