GDC, FDI Firms Seek to Clear up Customs Confusion

The General Department of Vietnam Customs (GDC) and the Vietnam Business Forum Alliance (VBF) jointly opened a periodical meeting with FDI enterprises in the first quarter of 2023. The meeting was attended by representatives from the Customs Reform and Modernization Board, the Import-Export Duty Department, the Customs Control and Supervision Department, the Customs IT and Statistics Department and the Risk Management Department (GDC), together with representatives of VBF and 28 FDI companies.

At the meeting, representatives of GDC answered proposals and recommendations regarding contractors that are exempt from VAT on imported goods used to build workshops, offices and install equipment for export processors. They also replied to questions about permission for enterprises to actively offset the tax amount paid to the State Budget or apply for a one-time tax refund.

Besides, companies put forth issues pertaining to the definition of other business activities of export processors; commodity purchasing and selling in bonded warehouses; tax refund for exported goods on the spot; and completion customs documents in compliance with current regulations on tax and customs for purchase of domestic goods/equipment by export processing companies.

Businesses want to have their customs declaration documents completed to comply with current regulations on tax and customs for the purchase of domestic goods/equipment by export processing companies. However, as Decree 18/2021/ND-CP has no regulations on the supplementation of customs declarations or equivalent documents for the purchase of goods from a domestic company in Vietnam when Decree 18 is yet to be issued, processors are still facing difficulties in completing customs documents for this case.

By Hien Nam, Vietnam Business Forum