Tax policy for goods which are processed under a processing contract by an EPE for a domestic enterprise has been instructed at Official letters No. 3805/TCHQ-TXNK dated September 14th, 2022, No. 1608/TCHQ-TXNK dated May 6th, 2022, No. 3634/TCHQ-TXNK dated July 19th, 2021, No. 5589/TCHQ-TXNK dated August 21st, 2020.
Accordingly, in case a domestic enterprise transfers goods to an EPE to process, it is required to declare and pay import duty on the processed products imported into Vietnam's inland market according to clause 2 Article 22 of Decree No. 134/2016/ND-CP .
Customs value of the imported goods includes the cost for processing and the value of raw materials used for the processing that are provided by the foreign party and the adjustments (if any) according to the regulations at clause 3 Articles 17 of Circular No. 39/2015/TT-BTC , excluding the value of materials, supplies which are transferred to the EPE for processing by the domestic market.