Official letter No. 4943/TCHQ-TXNK dated November 21st, 2022 of the General Department of Vietnam Customs regarding tax policies applicable to goods stored in bonded warehouses subject to destruction

The General Department of Vietnam Customs assumes that if a bonded warehouse satisfies the definition of a non-tariff zone according to the regulations at clause 1 Article 4 of the Law on Import and Export Duties No. 107/2016/QH13 and it is also a customs-controlled area according to the regulations at Clause 4 Article 3 of the Law on Foreign trade management No. 05/2017/QH14, goods from foreign countries stored in the bonded warehouse shall not be subject to import duty, value added tax (VAT).

For goods being stored in bonded warehouses and enterprises conduct the destruction within the bonded warehouses and ensure destruction requirements according to regulations of laws, they are not required to declare and pay import duty, VAT.