1. What is on-site import and export?
Export at site is a form in which goods are sold by manufacturing enterprises in Vietnam to foreign traders but delivered to other enterprises in Vietnam as designated by the foreign trader. Export enterprises include both Vietnamese enterprises and foreign-invested enterprises.
Thus, on-the-spot export requires 3 elements:
Sales (export) to foreign traders
Delivery location in Vietnam
Consignee information provided by foreign buyers
2. Benefits of on-site import and export
This form of on-site export is gradually becoming popular among business owners, however not everyone is clear about the plus points this new form of export brings:
Firstly, it saves a lot of costs for businesses.
Second is to save shipping time, deliver goods quickly and ensure goods are safe. Work progress will therefore also be faster.
Business owners enjoy many export tax incentives,...
3. On-site import and export goods
According to Article 86 – Circular No. 38/2015/TT-BTC Regarding "Customs procedures for on-spot export and import goods", on-spot export goods include 3 types:
Handmade product; rented or borrowed machinery and equipment; surplus raw materials and supplies; scrap and defective products under processing contracts as prescribed in Clause 3, Article 32 Decree No. 187/2013/ND-CP;
Goods traded between domestic enterprises and export processing enterprises and enterprises in non-tariff zones;
Goods purchased and sold between Vietnamese enterprises and foreign organizations and individuals that are not present in Vietnam and are designated by foreign traders to deliver and receive goods with other enterprises in Vietnam.
4. Customs procedures for on-site import and export goods
Regardless of the form of import and export activities, both business partners must still strictly comply with the provisions of law on management of exported and imported goods and related policies. With on-site export and import, customs procedures are carried out based on regulations issued by law.
Customs documents required include:
Customs declaration: Used to declare information about goods during the import and export process
Sales contract: Proof of origin and authentication of goods
Commercial invoice, or VAT invoice, transport documents
Goods quality inspection card: ensures the goods are allowed for business. Business owners should learn about goods that are prohibited from import and export according to regulations to minimize possible risks.
Other relevant documents depending on each specific case...
Customs procedures for on-site import and export goods
On-site export and import customs procedures are carried out at a convenient Customs Branch chosen by the customs declarant and according to the regulations of each type.
Time limit for customs clearance:
Within 15 working days from the date of customs clearance of exported goods, on-site importers must complete customs procedures.Customs procedures:
Step 1: Exporting enterprises declare customs
Based on the contract signed with the foreign trader specifying delivery in Vietnam, the exporting enterprise must fully declare the corresponding criteria for the exporting enterprise on the declaration.
Step 2: Importing enterprises carry out on-site import procedures
After exporting enterprises have fully completed the declarations and come to the Customs Branch where the enterprise carries out procedures to register for on-the-spot import procedures appropriate for the type of import and export after fully receiving row.
Step 3: The Customs Department carries out import procedures
Continue to complete the stages including: submitting declarations, calculating taxes, sealing samples (if any), confirming procedures, handing over to businesses and storing records, and notifying the local Tax Department where Keep track of your business's taxes.
Step 4: Export enterprise
At this time, the exporting enterprise must receive the completed documents and transfer them to the Customs Branch where the export procedures are carried out to register for on-site export procedures.
Step 5: The Customs Department carries out export procedures
The Customs Branch will receive the customs declaration, along with other documents in the on-site export dossier. After that, continue to proceed with the steps to register the declaration according to regulations, suitable for each type of export, import, tax and fee (if any).
Above is some information related to on-site export including concepts, characteristics, types of goods and customs procedures when exporting on-site.
Note: In case the customs declarant is a priority business and the partners buy and sell goods with the priority business; Enterprises that comply with customs laws and partners who buy and sell goods are also enterprises that comply with customs laws and have on-site export and import goods that are delivered and received multiple times within a certain period of time under a contract. Orders with the same buyer or seller will receive goods first and customs declaration later. Customs declaration is carried out within a maximum period of 30 days from the date of delivery of goods. Customs declarants can register export and import goods declarations on the spot at a convenient Customs Branch; Tax policies, export and import goods management policies are implemented at the time of customs declaration registration. Customs authorities only check documents related to the delivery of goods (not check the actual goods). For each delivery, the exporter and importer must have documents proving the delivery of goods (such as commercial invoices or VAT invoices or sales invoices, warehouse delivery notes cum internal transportation, etc.) ...), responsible for keeping at the enterprise and presenting it when the customs authority conducts inspection.
5. VAT rate for on-site import and export goods
V.a.t tax is a tax calculated on the added value of goods and services arising in the process from production, circulation to consumption. A characteristic of the current economy, including Vietnam, is that import and export activities take place very strongly. As prescribed at Value Added Tax Law 2008 (amended and supplemented in 2013, 2014, 2016), exported goods and services are subject to the tax rate of 0%.
Exported goods and services are goods and services sold and supplied to organizations and individuals abroad and consumed outside Vietnam; selling and supplying to organizations and individuals in the non-tariff zone; goods and services provided to foreign customers according to the provisions of law.
Exported goods:
Goods exported abroad, including export entrustment;
Goods sold into non-tariff zones according to regulations of the Prime Minister; goods sold to duty-free shops;
Goods sold where the delivery or receipt point is outside Vietnam;
Spare parts and replacement materials to repair and maintain vehicles, machinery and equipment for foreign parties and for consumption outside of Vietnam;
Forwarded processed goods according to the provisions of commercial law on international goods purchase and sale activities and goods purchase, sale and processing agency activities with foreign countries;
Goods exported on the spot according to the provisions of law;
Exported goods for sale at fairs and exhibitions abroad.
Export services include:
- Services provided directly to organizations and individuals abroad and for consumption outside Vietnam;
- Services provided directly to organizations and individuals in non-tariff zones and for consumption in non-tariff zones.
Note:
- Individuals living abroad in this case include: foreigners who do not reside in Vietnam, Vietnamese people residing abroad and staying outside Vietnam during the time the service is provided.
- Organizations and individuals in the non-tariff zone are organizations and individuals with business registration and other cases as prescribed by the Prime Minister.
Thus, according to the above regulations, on-site exported goods are entitled to a VAT rate of 0%.
Cases where tax rate 0% is not applied:
Overseas reinsurance; technology transfer, transfer of intellectual property rights abroad; transferring capital, granting credit, investing in securities abroad; derivative financial services; Postal and telecommunications services going abroad (including postal and telecommunications services provided to organizations and individuals in non-tariff zones; providing mobile phone scratch cards with codes and numbers price sent abroad or brought into a non-tariff zone); Exported products are natural resources and exploited minerals that have not been processed into other products; cigarettes, alcohol, and beer imported and then exported; goods and services provided to individuals not registered for business in the non-tariff zone, except in other cases as prescribed by the Prime Minister.
Gasoline and oil sold for cars of business establishments in the non-tariff zone are purchased domestically;
Cars sold to organizations and individuals in the non-tariff zone;
Services provided by business establishments to organizations and individuals in the non-tariff zone include: renting houses, halls, offices, hotels, warehouses; transportation services to pick up and drop off workers; Catering services (except for industrial catering services and catering services in non-tariff areas);
The following services provided in Vietnam to organizations and individuals abroad are not subject to tax rate 0% including: Sports competitions, performing arts, culture, entertainment, conferences, hotels, training create, advertise, travel tourism; Online payment service; Services provided associated with the sale, distribution, and consumption of products and goods in Vietnam.
