Processing goods for a foreign trader that is a processor, using part or all of the raw materials of the ordering party being a foreign trader to perform one or more stages in the production process. at the request of the outsourcing party to receive remuneration. After completing the processing contract, the parties will liquidate and finalize the processing contract.
“Firstly, before performing the processing contract, the organization or individual shall notify the processing contract to the customs authority. When the processing contract expires or the processing contract expires, the parties to the processing contract must liquidate the contract and make a final settlement report on the use of raw materials, supplies and exported products. periodically with the Customs.”
The Ministry of Finance is the state agency that guides the procedures for notifying processing contracts and finalizing processing activities with customs offices.
CLEARANCE OF GOODS PROCESSING CONTRACTS FOR FOREIGN TRADERS
Liquidation of goods processing contracts for foreign traders shall comply with the following provisions:
+ The basis for liquidation of the processing contract is the quantity of imported raw materials, auxiliary materials and supplies, the quantity of exported products according to the norm of use of raw materials, auxiliary materials and supplies, the norm of consumption of materials and the rate of consumption. The loss rate has been agreed in the processing contract.
+ The basis for liquidation of the processing contract is the quantity of imported raw materials, auxiliary materials and supplies, re-exported raw materials, auxiliary materials and supplies, the quantity of exported products according to the norm of using raw materials and auxiliary materials, determine the consumption of materials and the loss rate in accordance with the actual performance of the contract.
In Article 40 of Decree 69/2018/ND-CP dated May 15, 2018 stipulating the usage norms, consumption norms and wastage rate of raw materials, auxiliary materials and supplies as follows:
“1. The norms of use, consumption and loss rate of raw materials, auxiliary materials and supplies shall be agreed upon by the parties in the processing contract, taking into account the norms and loss rates established in the manufacturing industries. , related outsourcing of Vietnam at the time of contract signing.
2. The legal representative of the processing trader is directly responsible before law for the use of imported raw materials, auxiliary materials and supplies for the correct processing purposes and the accuracy of the usage norms. usage, consumption and wastage rate of processing materials.”
+ Machinery and equipment rented or borrowed under contracts; Excess raw materials, auxiliary materials, supplies, waste products, scrap and waste shall be handled according to the agreement of the processing contract but must be in accordance with the law of Vietnam.
+ The destruction of scraps, waste products and wastes (if any) is allowed only after obtaining the written permission of the Department of Natural Resources and Environment and must be done under the supervision of the Customs. . In case it is not allowed to cancel in Vietnam, it must be re-exported according to the order of the processing party.
+ The donation of machinery, equipment, raw materials, auxiliary materials, supplies, scrap and discarded products is regulated as follows:
+ The party ordering the processing must have a gift or donation in writing.
+ The party receiving the gift or donation must carry out import procedures according to import regulations; must pay import tax, other taxes (if any) and register the property according to current regulations.
+ If scrap and discarded products are within the usage norms and loss rate, if they are on the list of scraps permitted to be imported, they are not required to go through customs procedures; are exempt from import tax; must pay value added tax and corporate income tax.
Greenland provides the services of applying the goods processing contract, then clear the goods processing contract with Customs Officer when the contract finished.
