Export goods processing — Hệ thống tư vấn đầu tư và pháp luật

Question Information :

Title :	Export goods processing
Subject :	Customs Procedures
Questioner :	Hidden Name
Question Date :	27/06/2008
Question Content :	My unit processes export goods for the parent company in Hong Kong. Now, another unit employs my unit to process goods. Can this unit issue invoice with zero percent tax rate to my unit’s parent company?

Answer Information :

Answer Place :	Customs Department of Dong nai province
Answerer :	Specialized
Answer Date :	21/08/2008
Answered Content :	Article 30 of Decree No.12/2006/ND-CP of January 23, 2006, detailing the implementation of the commercial law regarding international goods sale and purchase and goods sale, purchase, processing and transit agency activities with foreign countries stipulates that: “A processing contract must be made in writing or in other forms of equivalent legal validity and may include the following terms: a/ Names and addresses of the contracting parties; b/ Names and quantities of products to be processed; c/ Processing price; d/ Payment time limit and mode; e/ List, quantities and values of imported raw materials, auxiliary materials and supplies and home-made raw materials, auxiliary materials and supplies (if any) for processing; norms on the use of raw materials, auxiliary materials and supplies; norms on supplies consumption and percentages of raw material waste in processing; g/ Measures to deal with waste materials and scraps and principles for dealing with hired and/or borrowed machinery and equipment and surplus raw materials, auxiliary materials and supplies after the termination of the processing contract; h/ Place and time of goods delivery; i/ Trademarks and appellations of origin of goods; j/ Effective term of the contract.” Therefore, each processing contract will have different contracting parties with different products, quantity, price … and also different economic relations between the parties if there are no special agreements in processing contracts. As stated, you do not clearly mention the relations between the parent company and the other unit and if this unit is a foreign partner or a Vietnamese business. Because there are no ties between the parties and the processing contract does not showcase the duties and interests of the respective parties in accordance with prescribed provisions, so it is not conformity with current regulations when this unit issue invoices with zero percent tax rate to your unit’s parent company.