Machinery are not re-exported but destroyed not subject to taxable goods
VCN- Machinery, and equipment which are temporarily imported but not re-exported and must be destroyed are not be subject to taxable goods and penalty because they are invalid and the destruction must be implemented as per regulation (a destruction council must be set up under the supervision of Customs).
The General Department of Vietnam Customs has issued a document to guide the North Ha Noi Customs Branch and Ha Noi Water Limited Company on import duty applying to machinery and equipment which are temporarily imported for re-export of projects funded by ODA.
According to Vietnam Customs, the import duty applying to machinery and equipment temporarily imported for re-exports for ODA project of Ha Noi Water Limited Company, the Ministry of Finance has directed in Official document 8957/BTC-TCHQ dated August 1, 2017, as followed:
The machinery and equipment which have been re-exported on time are exempted from import duty.
The machinery and equipment which have not been re-exported and not destroyed being used in Vietnam shall be levied import duty and imposed a penalty for late payment under the guidance at Point 1, Section I, Part G of Circular No. 172/1998 / TT-BTC dated December 22, 1998, of the Ministry of Finance.
The machinery and equipment which have not been re-exported but must be destroyed shall not be levied duty and not imposed a penalty because they are invalid and the destruction must be implemented as per regulation (a destruction council must be set up under the supervision of Customs).
Vietnam Customs said that, as per Official document 8957/BTC-TCHQ, the machinery and equipment which are temporarily imported but not re-exported and not destroyed being used in Vietnam by the Ha Noi Water Limited Company must be paid import duty and paid for late payment.
Source: customsnews.vn