Vietnam Exempts Raw Material For Export-Only Goods From Import Duty

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Vietnam Exempts Raw Material For Export-Only Goods From Import Duty

Raw materials and other inputs used in the production of export-only items in Vietnam will now be automatically exempt from duty payments. The change is outlined in the country's new Law on Export and Import Duties, which also cancels the duty payable on components imported for use in the manufacture of information technology products, medical equipment, environmental protection items and educational supplies. In order to qualify, the IT and medical components concerned must be unavailable from a domestic supplier. The new legislation came into effect on September 1, and supersedes the previous arrangement whereby companies had a 275 day duty payment grace period in which to prove to customs officials the export-only use of any such imported items.