The boundary to grasp from the start: since 25 April 2021 (Decree 18/2021/ND-CP), qualifying export-production (SXXK) materials are exempt upfront. A duty refund applies only when import duty HAS ALREADY BEEN PAID and a refund ground subsequently arises. In short: not yet paid → seek exemption (Article 16 of the Law on Export and Import Duties); already paid → seek refund (Article 19).
Main case: duty paid for production/business, then products exported
Under Article 19(1)(d) of the Law on Export and Import Duties (consolidated document 96/VBHN-VPQH): a taxpayer that has paid import duty on goods imported for production or business, put them into production of exports, and exported the products → is entitled to an import-duty refund.
The typical scenario: imports under the business type (A12) with duty paid, later put into production and the products actually exported. Under Article 36(1) of Decree 134/2016/ND-CP, “exported products” covers exports abroad or exports into a non-tariff zone.
Refund conditions
Under Article 36 of Decree 134/2016/ND-CP (latest version, after Decree 18/2021), the basis for determining refundable goods:
- The organization or individual manufacturing exports has a production facility for exports in Vietnam’s territory; owns or has the right to use suitable machinery and equipment for the imported raw materials, supplies and components;
- The refundable value/quantity of materials = actual use for actually exported products;
- Exported products cleared under the export-production declaration type;
- The organization or individual directly or through entrustment imports the goods and exports the products;
- Truthful declaration on customs declarations.
Refund dossier
Under Article 36(5) of Decree 134/2016/ND-CP (after Decree 18/2021), the dossier includes:
- Request letter for export/import duty refund submitted via the customs electronic data system per Form 01 of Appendix VIIa, or a request letter per Form 09 of Appendix VII: 01 original;
- Payment documents for the exported/imported goods where payment was made: 01 copy;
- Export/import contracts and invoices; entrustment contracts where import/export is entrusted: 01 photocopy;
- Tax-calculation report on imported raw materials, supplies and components (Form 10 of Appendix VII) — the refundable duty must correspond to the quantity and type of materials actually used to manufacture actually exported products;
- Processing contract with the foreign customer (where imported materials are used to make products later used to process export goods): 01 photocopy;
- Documents proving a production facility in Vietnam’s territory and ownership/use rights over suitable machinery and equipment: 01 photocopy.
Submission, receipt and processing of refund dossiers follow tax-administration law — currently the Law on Tax Administration 108/2025/QH15 (effective 1 July 2026, replacing Law 38/2019/QH14). Never cite Law 38/2019. Note: an SXXK import-duty refund is different from a VAT refund — two separate mechanisms, not to be merged.
Other refund cases
Beyond the main case, Article 19(1) of the Law on Export and Import Duties provides further refund cases:
- (a) Import duty paid but no goods were imported;
- (b) Export duty paid but actual exports were fewer;
- (c) Import duty paid but goods are re-exported — detailed in Article 34 of Decree 134/2016 (conditions: goods not yet used, processed or manufactured; re-export by the original importer or an authorized person);
- (d) Machinery, equipment, tools and means of transport under temporary import for re-export.
Under Article 19(2), goods in points (a), (b) and (c) qualify for refund when not yet used, processed or manufactured.
Three mechanisms compared — a common business trap
| Mechanism | Nature | Basis |
|---|---|---|
| Exemption | Not yet paid; exemption sought before import | Article 16, Law on Export/Import Duties |
| Refund | Already paid; refund sought after the ground arises | Article 19, Law on Export/Import Duties |
| Non-collection | Refund-eligible but not yet paid / not payable | Decree 134/2016 (same dossier/procedure as refund — Article 36) |
Where goods are refund-eligible but duty has not been paid or is not payable, the non-collection procedure applies with the same dossier and procedure as a refund (Article 36 of Decree 134/2016).
No-refund threshold
No refund where the refundable duty is below VND 50,000 per declaration for which the refund is filed (Article 37 of Decree 134/2016/ND-CP).
Quick checklist
- Pick the right route: already paid → refund (Article 19); not paid → exemption (Article 16) or non-collection;
- Check conditions in Article 36 of Decree 134/2016 (facility, suitable machinery, actual use for actually exported products);
- Prepare the full dossier under Article 36(5) (request letter, Form-10 tax-calculation report, facility proof, etc.);
- Mind the VND 50,000/declaration threshold and procedures under the Law on Tax Administration 108/2025.
Need help reviewing import/export tax incentives for your investment project? Reach us via the Contact page of FLAT Law Firm.
The information above is for reference only and does not constitute legal advice.
For reference only, not legal advice. Content quality-checked by the AI Legal Council; not yet reviewed by a human lawyer.