Vietnam Customs proposes tax exemptions for on-site imports

The Customs Department has proposed tax policy reforms to resolve bottlenecks for businesses handling on-site imported goods used for export production. Following petitions from industry groups, including the Vietnam Textile and Apparel Association and the Vietnam Leather, Footwear and Handbag Association, the department is seeking to ease tax burdens on raw materials.

A key proposal involves amending Decree No. 134/2016/ND-CP to allow for import tax exemptions on on-site imported products registered for export production. This measure aims to support the textile industry and other sectors reliant on on-site imports by streamlining production and export activities.

Additionally, the department has provided guidance regarding tax refunds for on-site imports processed before July 1, 2025. It has also requested the Ministry of Finance's Department of Tax Policy, Fees, and Charges to study these regulatory amendments to facilitate smoother operations for export-oriented manufacturers.