Zero tax rate applied on VAT free goods and services

Ministry of Industry and Trade has promulgated Circular 05/2014/TT-BCT, dated 27/01/2014, regulating on temporary import and re-export, transit of goods. Accordingly, enterprises who implement temporary import and re-export, transit goods including frozen foods, used goods and excise goods are conditioned temporary import and re-export business.  

Accordingly, regarding to frozen foods, enterprises who implement temporary import and re-export are required to have two years since establishment and participate in import and export or temporary import and re-export; have the deposit of 10 billion VND at provincial State Treasury or branch of Commercial Bank at the provinces and cities where warehouses are placed. The minimum storation of warehouses serving temporary import and re-export of frozen foods must be enough for 100 containers of 40 feet with the minimum square of 1,500m2 .etc Besides, the warehouses listed for Temporary Import and Re-export Business Code are not permited for other enterprises to hire the whole or partly in order to be used for Temporary Import and Re-export Business Code.

Regarding to excise goods or used goods, enterprises who implement temporary import and re-export are required to have two years since establishment and participate in import and export or temporary import and re-export; have the deposit of 7 billion VND at provincial State Treasury or branch of Commercial Bank at the provinces and cities where  Certificate on Bussiness Registration and Enterprise Registration Certificate are issued.

Circular also regulates enterprises who apply all the fore-mentioned criteria will be considered to receive Registration of Temporary Import and Re-export Business Code. This code is issued for some group of goods and enterprises only are permitted to temporarily import and re-export the goods under registration. The circular shall be expired after three years counted from the issued date.

Circular takes effect from 20/02/2014, replacing for Circular 05/2013/TT-BCT dated 18/2/2013 of Ministry of Industry and Trade.