Processed goods play an important role in the manufacturing industry, especially in Vietnam. These are products produced or assembled according to customer orders, often based on specific requirements regarding design, materials, and quality standards to receive compensation. This form of processing is common in many industries such as textiles, electronics, wood products, and mechanical components.
1. Types of Processing Currently
In Vietnam, there are four main types of processing:
- Forward processing: Vietnamese enterprises carry out production stages according to the requirements of enterprises in the non-tariff zone.
- Reverse processing: Vietnamese enterprises hire companies in the non-tariff zone to carry out part or all of the production process.
- Re-processing: Enterprises that have received processing contracts but delegate part or all of the work to another enterprise.
- Outsourcing: Manufacturing companies send raw materials to processing units to carry out part or all of the production process.
2. Legal Regulations on Customs Procedures for Processed Goods
To carry out customs procedures for processed goods, enterprises need to prepare a complete set of documents, including:
- Processing contract.
- Warehouse or workshop lease contract.
- Related documents such as commercial invoices, packing lists, bills of lading, certificates of origin, and quality certificates.
- Business registration certificate allowing processing and exporting.
Relevant legal documents to refer to:
- Decree 8/2015/ND-CP: Regulations on customs management, including the management regime for processed goods.
- Circular 38/2015/TT-BTC: Detailed guidance on customs procedures for processed goods for foreign traders.
- Decree 126/2013/ND-CP: Detailed regulations on the implementation of the Customs Law.
Enterprises need to regularly update legal documents as they may change over time.
3. Procedure for Implementing Customs Procedures for Processed Goods
The customs procedure for processed goods includes two main stages: importing raw materials and exporting finished products.
Customs procedures for processed goods for the first time
For enterprises newly declaring processed goods for the first time, the following declarations must be made:
- Declare the production facility: provide information related to the processing unit hired by the enterprise, including the name of the unit, address, investment country, type of enterprise, production industry, etc. This information should match the investment certificate, the processing workshop lease contract, and information provided by the customer.
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- Declare and register the processing contract: declare the information provided by the customer and the information in the processing contract between the two parties.
- Declare product names, raw materials, and product standards before making the declaration.
Note: If the enterprise changes any information related to the production facility, the processing contract, or product standards, it must notify the customs authority using FORM 12.
All declarations and registrations must be submitted through the ECUS system to transmit information to the customs authority. After that, the customs authority will check the production facility in the system against reality before deciding whether the facility meets the conditions for processing and is allowed to carry out customs procedures for processed goods.
Customs declaration process for imported processed goods
For customs declaration of imported processed goods, it will be opened under the E21 type on the electronic customs declaration system. The steps include:
- Fill in information about the exporter, importer, mode of transport, product name, HS code, etc.
- Cross-check and verify information in the system against actual documents.
- After confirming the information, submit the declaration to the customs authority.
- Attach necessary documents: commercial invoice, packing list, bill of lading, permits, etc.
- Proceed with the classification, fulfilling any customs requirements if applicable.
Customs declaration process for exported processed goods
For exports, the customs declaration is opened under the E52 type through the V5 system. The steps include:
- Fill in information about the exporter, importer, mode of transport, product name, HS code, etc.
- Verify information in the system against actual documents, then submit the declaration.
- After confirming the information, submit the declaration to the customs authority.
- Proceed with the classification, fulfilling any customs requirements if applicable.
- Attach necessary documents: commercial invoice, packing list, permits, etc.
Note:
- For products under chapters 84 and 85, it is necessary to specify whether they are new or used.
- Companies with special relationships need to note this for easier payment and post-clearance checks.
- If goods are imported and exported locally, they must be marked in the internal management box as: #&XKTC or #&NKTC.
The above is the complete content regarding customs procedures for processed goods. If you are looking for a professional unit providing quality customs declaration services, Danko is ready to assist. With nearly 20 years of experience in the import-export field, we promise to providing fast and accurate services, helping you clear goods smoothly.
