Ministry of Finance sent the Missive no.7538/BTC-CST dated June 06th 2012 to province/city Customs Departments of provinces, guiding implementation of tax policy for imported goods sold in duty-free shops which are broken, damaged, deteriorated must be destroyed. Specifically:
According to paragraph 3, Article 1 of Decision No. 24/2009/QD-TTg by the Prime Minister prescribed for tax-free goods: goods sold in duty-free shops are goods produced in Vietnam or imported to be legally circulated; the imported goods with duty unpaid sold in duty-free shops is managed under regime of goods temporarily imported and stayed in duty free shops within 365 days from the date of completion of customs procedures, goods with import duty paid or produced in Vietnam are considered as exported goods controlled under the regime of temporary export, staying in duty free-shops within 365 days from the date of completion of customs procedures for export; If it’s needed to extend the term of temporary import or export as above, traders must send written letter to the customs authorities for extension, the extended time per once does not exceed 180 days for each shipment of export and import. If the duty-free goods are sold in domestic market, they must be considered as commercial goods. Goods which are broken, damaged are not allowed to be sold out; traders shall make record of status of goods certified by the customs authorities and destroy goods as regulated under supervision of customs authorities and report result to General Department of Vietnam Customs.
According to Paragraph 1, Article 4 of Decision No. 24/2009/QD-TTg by the Prime Minister: All goods sold at duty-free shops are not subject to special consumption tax, value added tax and import duty if goods being imported.
Therefore, goods imported for sale in duty-free shops (including duty-free shops in the non-tariff zone, border gate economic zones) which are broken, damaged, deteriorated in poor condition must be destroyed are goods not subject to import duty, special consumption tax and VAT tax.
Liquidation and destroy procedures for goods broken or damaged, deteriorated in poor condition are carried out in accordance with legal regulations.