To: Ho Chi Minh City Customs Department.

General Department of Customs receives Official Dispatch No. 3355/HQHCM-TXNK dated November 16, 2020 and Official Dispatch No. 2889/HQHCM-TXNK dated October 05, 2020 of Ho Chi Minh City Customs Department on obstacles to inspection of subcontracted processing facilities. With regard to this content, the General Department of Customs has some opinions. To be specific:

1. With regard to notification of subcontracted processing facility and processing subcontracts

If raw materials/supplies or products have to be stored outside the manufacturing facility, the storage location must be notified to the supervisory customs authority before they are moved to such location according to regulations of Point a.3 Clause 1 Article 56 of Circular No. 38/2015/TT-BTC dated March 25, 2015 of the Ministry of Finance of Vietnam (amended in Circular No. 39/2018/TT-BTC dated April 20, 2018)

If the Vietnamese entity that signs a processing contract (the original contractor) with a foreign trader hires another entity to process the goods (the contractor), whether partially or entirely, the original contractor shall send an notification of subcontracted processing contract to the supervisory customs authority that received the manufacturing notification before raw materials and supplies are given to the subcontractor according to regulations of Clause 1, Article 62 of Circular No. 38/2015/TT-BTC (amended in Circular No. 39/2018/TT-BTC dated April 20, 2018).

According to the above regulations, it will be considered late notification if the subcontracted processing facility and processing subcontract contract are notified after raw materials and supplies are given to the subcontractor.

2. With regard to the legal basis for inspection of the subcontracted processing facility

Other cases in which a site inspection is carried out at a processing/manufacturing facility on the basis of applying risk management method are regulated by Point dd Clause 1 Article 39 of Government’s Decree No. 08/2015/ND-CP dated January 21, 2015 (amended in Decree No. 59/2018/ND-CP dated April 20, 2018), Clause 1, Article 57 of Circular No. 38/2015/TT-BTC (amended in Circular No. 39/2018/TT-BTC April 20, 2018);

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Ho Chi Minh City Customs Department shall carry out inspection according to the above regulations.

3. With regard to inspection of the subcontracted processing facility that has stopped operating or no longer operates at the registered address

Ho Chi Minh City Customs Department shall cooperate with relevant agencies in collection and verification of information on subcontracted processing facilities  The customs authority shall not impose tax on raw materials and supplies that have been used for processing the exported products if the following conditions are satisfied: the subcontracted processing facility stopped operating or closed its taxpayer identification number, the customs authority has no basis for site inspection at the facility, according to the results of inspection of accounting books and documents, payment documents and relevant documents of the subcontracting party, there is  a processing subcontract which is actually executed, the  payment for subcontracted processing has been made, the products have been provided for the subcontracting party (before the subcontracted processing facility stopped operating or closed its tax identification number) and exported in reality; the subcontracting party does not commit tax evasion or tax fraud that causes loss of revenue to the state budget,. In case the above conditions are not fully satisfied, the tax shall be imposed according to regulations

For your information and compliance./.

ON BEHALF OF DIRECTOR GENERAL
PP. DIRECTOR OF THE IMPORT – EXPORT TAX DEPARTMENT
DEPUTY DIRECTOR




Tran Bang Toan

Công văn 18/TCHQ-TXNK năm 2021 vướng mắc về kiểm tra cơ sở gia công lại do Tổng cục Hải quan ban hành