What is temporary import and re-export of goods?

According to Article 29 of the 2005 Commercial Law on temporary import and re-export, temporary export and re-import of goods is specifically defined as follows:

– Temporary import and re-export of goods is the process of bringing goods from abroad or from special areas located within the territory of Vietnam considered separate customs zones according to the law into Vietnam, undergoing import procedures into Vietnam and then undergoing export procedures for the same goods out of Vietnam.

– Temporary export and re-import of goods is the process of bringing goods abroad or into special areas located within the territory of Vietnam considered separate customs zones according to the law, undergoing export procedures out of Vietnam and then undergoing re-import procedures for the same goods into Vietnam.

How is the business of temporary import and re-export of goods specifically regulated?

According to Article 13 of Decree 69/2018/ND-CP on temporary import and re-export business, the following is stipulated:

– Vietnamese traders are entitled to conduct temporary import and re-export business regardless of their registered business sector, subject to the following regulations:

+ For goods subject to conditional temporary import and re-export, traders must meet the conditions stipulated in Section 2 of this Chapter.

+ For goods prohibited from export or import; goods temporarily suspended from export or import; goods not yet permitted for circulation or use in Vietnam; goods subject to export quotas, import quotas, tariff quotas, export or import licenses, except for automatic export or import licenses, traders must obtain a temporary import and re-export business license from the Ministry of Industry and Trade. The application process and procedures for obtaining the license are stipulated in Articles 19 and 20 of this Decree.

+ In cases where goods do not fall under the provisions of Points a and b of this Clause, traders shall carry out temporary import and re-export procedures at the customs authority.

– For economic organizations with foreign investment capital, only temporary import and re-export of goods as stipulated in Article 15 of this Decree may be carried out; temporary import and re-export of goods for commercial purposes is prohibited.

– Goods for temporary import and re-export are subject to inspection and supervision by the customs authority from the time of temporary import until the goods are actually re-exported out of Vietnam. Goods transported in containers must not be divided into smaller quantities during the entire transportation process from the temporary import port to the area under customs supervision, or the re-export location at the border gate or border crossing as prescribed. If, due to transportation requirements, it is necessary to change or divide the goods transported in containers for re-export, the procedures shall be carried out according to the regulations of the customs authority.

– Goods imported temporarily for re-export may remain in Vietnam for no more than 60 days from the date of completion of temporary import customs procedures. If an extension is needed, the trader must submit a written request for extension to the Customs Sub-department where the temporary import procedures were carried out; each extension shall not exceed 30 days, and no more than two extensions may be granted for each consignment of temporarily imported goods for re-export. After the above-mentioned period, the trader must re-export the goods from Vietnam or destroy them. If imported into Vietnam, the trader must comply with regulations on import management and taxes.

– Temporary import and re-export business is conducted on the basis of two separate contracts: an export contract and an import contract signed with the exporting country and the importing country. The export contract may be signed before or after the import contract.

– Payment for goods under the temporary import and re-export method must comply with regulations on foreign exchange management and guidelines of the State Bank of Vietnam.