Tax policy regarding imported goods that is used to manufacture exported goods
On July 19th 2018, Ministry of Finance released the Official dispatch No 8628/BTC-TCHQ. Whereby, from Nov 01st 2016, in case Organizations/Individuals import goods in order to manufacture exported goods but do not conduct any direct production or just produce for a part of manufacturing process and then transfer a part or total imported goods to other Organizations/Individuals to process one more or some more sections. Following, they continue producing based on those processed goods with the aim to export. Therefore, those goods shall not meet the conditions of Tax exemption according to regulation in Decree No 134/2016/NĐ-CP, so the imported goods that were processed shall not be exempted from import duties.
