What is import liquidation?
Import liquidation is the process of handling, settling, or reselling imported goods that are no longer being used for their original purpose. Liquidation can take many forms, such as:
- Exporting to foreign countries
- Selling, giving away, gifting, or donating in the domestic market.
- Destruction
Typically, liquidated goods are fixed assets that have reached the end of their depreciation period, surplus raw materials after a project, or machinery that is no longer suitable for production and business needs. The main entities carrying out liquidation are import businesses and export processing enterprises (EPEs).
Conditions for liquidating imported goods
The liquidation of imported goods must comply with certain conditions, depending on the type of goods:
For machinery, equipment, and vehicles: Expiration of depreciation period, damage, technical faults, or no longer in use due to technological changes or production scale.
Regarding raw materials and components: Excess compared to demand, substandard quality, unsuitable for production purposes.
Import liquidation procedures
The procedure for liquidating imported goods includes the following basic steps:
Step 1: Determine the liquidation method.
Businesses need to clearly define the liquidation method, including:
- Exporting to foreign countries
- Sell or transfer for domestic consumption.
- Give, donate, or destroy
Step 2: Prepare the documents
- The liquidation request document must clearly state the reasons and include a list of the goods.
- Original import customs declaration
- Documents proving the condition of the goods (inspection report, photographs, technical assessment, etc.)
- Tax exemption cases: Deduction tracking slip, tax exemption certificate.
Step 3: Customs declaration
It depends on the specific case:
- Export: Businesses file export declarations.
- Switch to domestic consumption: File a new import declaration to change the intended use.
- Destruction: Prepare a destruction report, declare to customs, and report to the environmental management agency.
Step 4: Submit your application electronically.
All documents must be submitted through the VNACCS/VCIS system. In case the original import declaration is lost, the business must still declare everything in full as required.
Step 5: Pay taxes and complete the procedures.
- Businesses pay any applicable taxes at the tax rate in effect at the time of filing the new tax return.
- Customs officials checked the documents and confirmed that the clearance procedures were complete.
Liquidation of duty-free imported goods.
In cases where imported goods are exempt from tax under an investment project, when liquidated domestically, the enterprise... must pay taxes This is the case with goods subject to normal taxation.
Some important notes when liquidating duty-free imported goods: The procedure must be carried out at the customs office where the business initially registered for duty-free status. The business must declare all relevant information regarding the shipment and fulfill its obligations to pay import duties and value-added tax at the time of liquidation. If the recipient is also a business enjoying the duty-free privilege, both parties need to update the information in the Deduction Tracking Form to ensure proper management according to regulations.
Liquidation of imported goods by export processing enterprises (EPEs).
Export processing enterprises can liquidate goods in three main ways. Firstly, for sales, donations, or gifts within the domestic market, enterprises can choose one of two options: declare customs to change the purpose of use and pay all applicable taxes, or conduct on-site import/export between the export processing enterprise and the domestic recipient. Secondly, in the case of exporting abroad, enterprises only need to declare export according to standard procedures. Finally, if the goods are no longer usable and need to be destroyed, the enterprise must prepare a destruction report, declare it to customs, and fully comply with current environmental protection requirements.
Latest update: Official document No. 3365/CHQ-GSQL dated April 25, 2025
According to Official Letter No. 3365/CHQ-GSQL dated April 25, 2025, the Customs Department requests:
- DNCX fully declares customs electronically in accordance with the provisions of point d, clause 2, Article 18 of the 2014 Customs Law, clause 2, Article 16a of Circular 39/2018/TT-BTC, and Articles 21 and 79 of Circular 38/2015/TT-BTC (amended and supplemented by Circular 39/2018/TT-BTC).
- Customs documents must clearly state the reason for liquidation, the method of liquidation, and the shipment information.
If the original declaration form has expired or been lost, the business needs to compare it with the actual production to provide a complete explanation.
Conclude
Liquidating imported goods requires adherence to regulations to avoid legal and tax risks. Businesses need to understand the following:
- Conditions under which liquidation is permitted
- Customs procedures vary depending on the type of liquidation.
- Responsibility for declaring and paying taxes, especially in the case of tax-exempt goods or goods of export processing enterprises.
- The latest guidelines from the Customs Department, specifically Circular 3365/CHQ-GSQL of 2025.
In addition, readers can contact MAN – Master Accountant Network to receive professional advice and consultation to help resolve issues quickly and accurately through:
- Mobile / Zalo: 0903 963 163 – 0903 428 622
- E-mail: man@man.net.vn
