Official letter No. 1978/TCHQ-TXNK dated April 25th, 2023 of the General Department of Vietnam Customs regarding goods processed by an export processing enterprise (EPE) under processing contract

According to clause 2 Article 22 of Decree No. 134/2016/ND-CP , in case a domestic enterprise transfers goods to an EPE for processing under a processing contract with the use of materials, accessories imported from foreign countries , when the domestic enterprise receives the products processed by the EPE, it has to declare, pay import duty.

The customs value for calculation of import duty is 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 regulations at Article 3 and 17 of Circular No. 39/2015/TT-BTC . The value of materials, supplies exported by the domestic enterprise for processing at the EPE shall not be included in the customs value of the processed products.