Generally, duty refund is not possible in Vietnam's entrepot trade. Entrepot trade means that the country of production of the goods and the country of consumption of the goods do not directly buy and sell the goods, but conduct transactions through a third country. Under this trade model, the goods are not actually declared for export in the country, which does not meet the basic condition of "actual departure of the goods" for China's export duty refund.
However, if after value-added processes such as processing in Vietnam, the goods are formally declared for export to other countries and comply with the relevant regulations of China's export duty refund, such as having legal export declaration forms, special VAT invoices and other vouchers, and the enterprise has the qualification for export duty refund, it is possible to get a duty refund in this case. The handling of duty refund procedures usually goes through processes such as declaration, review, and approval. The enterprise needs to prepare relevant materials and apply to the local tax authorities.
It should be noted that the requirements of tax authorities in different regions may vary, so it is necessary to consult the local tax department in advance.
Professional consultant answers
Emily LiuYears of service：10Customer Rating：5.0
Settlement and payment expertConsult
Generally, duty refund is not possible in Vietnam's entrepot trade. Entrepot trade means that the country of production of the goods and the country of consumption of the goods do not directly buy and sell the goods, but conduct transactions through a third country. Under this trade model, the goods are not actually declared for export in the country, which does not meet the basic condition of "actual departure of the goods" for China's export duty refund.
However, if after value-added processes such as processing in Vietnam, the goods are formally declared for export to other countries and comply with the relevant regulations of China's export duty refund, such as having legal export declaration forms, special VAT invoices and other vouchers, and the enterprise has the qualification for export duty refund, it is possible to get a duty refund in this case. The handling of duty refund procedures usually goes through processes such as declaration, review, and approval. The enterprise needs to prepare relevant materials and apply to the local tax authorities.
It should be noted that the requirements of tax authorities in different regions may vary, so it is necessary to consult the local tax department in advance.
Andrew HuangYears of service：7Customer Rating：5.0
Supply chain optimization expertConsult
Entrepot trade involves multi-party transactions, and the transportation of goods and the circulation of documents are complex. If the duty refund materials are incomplete due to improper operation, it is very likely that duty refund will not be possible. Therefore, special attention should be paid to the integrity and accuracy of the documents during the operation.
Joseph ZhouYears of service：10Customer Rating：5.0
Senior foreign trade managerConsult
If the goods only stay briefly in Vietnam for transshipment without substantial processing and value-adding, it is basically impossible to get a duty refund because this does not meet the requirements of export duty refund for the value-adding of goods and the essence of export.
James LiuYears of service：10Customer Rating：5.0
Foreign trade tax refund consultantConsult
Enterprises should pay attention to the local trade policies and regulations in Vietnam to avoid the impact of policy changes on the part of Vietnam on the export link of goods and thus on the duty refund.
Amanda YangYears of service：3Customer Rating：5.0
Cost control consultantConsult
If situations such as agency are involved in the entrepot trade process, it is necessary to ensure that the agency agreement is clear and definite, and the relevant responsibilities are clearly defined, so as to avoid affecting the duty refund application due to agency problems.
Sarah ZhangYears of service：8Customer Rating：5.0
Document expertConsult
For the goods in entrepot trade, the transportation routes and logistics information should be recorded and saved in detail, which may be important materials needed by the tax authorities when verifying the duty refund.
David LiYears of service：6Customer Rating：5.0
Senior customs declaration consultantConsult
The tax authorities conduct relatively strict audits on the duty refund of entrepot trade. Enterprises should be prepared for long-term retention of materials for subsequent inspections.
Michelle ChenYears of service：3Customer Rating：5.0
Business coordination consultantConsult
When cooperating with Vietnamese suppliers or other trading parties, the terms of the contract should clearly define the responsibilities and obligations related to duty refund to avoid disputes.
Elizabeth LiYears of service：3Customer Rating：5.0
Compliance and risk managerConsult
Entrepot trade involves the settlement in different national currencies, and the fluctuation of exchange rates may affect the calculation of the amount of duty refund. Enterprises should pay attention to the changes in exchange rates.