Goods already imported into Vietnam but subsequently re-exported abroad — because a contract was cancelled, the shipment was sent by mistake, or the goods did not match the contract — are a common situation for import-export businesses. The good news: Vietnamese law allows businesses to claim a full refund of import duty paid and exemption from export duty upon re-export. However, this right comes with one core condition: the goods must remain in their original state — unused, unprocessed, and unmanufactured. This article explains the legal basis, conditions, procedures, and the most common mistake businesses make: the treatment of import-stage VAT.
1. Legal basis: import duty refund on re-export of imported goods
Point c, Clause 1, Article 19 of Law No. 107/2016/QH13 (Law on Export and Import Duties) provides that imported goods that must be re-exported are eligible for a refund of import duty paid and are not subject to export duty.
The specific cases eligible for refund are listed in Article 34 of Decree No. 134/2016/ND-CP, as amended by Clause 17, Article 1 of Decree No. 18/2021/ND-CP (effective 25 April 2021). The law lists four groups of goods, typically covering: imported goods that must be re-exported or returned to the foreign seller (sent by mistake, not conforming to the contract); goods sent for exhibition or trade fairs that must be re-exported; imported humanitarian aid goods that must be re-exported. Businesses should check Article 34 directly to confirm whether their case qualifies.
Validity status (as of 14 October 2026): Law 107/2016/QH13, Decree 134/2016/ND-CP and Decree 18/2021/ND-CP are all still in force.
2. The core condition: goods must be unused, unprocessed, unmanufactured
This is the decisive condition. Goods qualify for an import duty refund only if re-exported in the same condition as imported:
- Unused: the goods have not been put into consumption, operation or exploitation;
- Unprocessed: no processing altering the nature of the goods;
- Unmanufactured: not transformed into different products.
Routine inspection and repackaging that does not change the nature or function of the goods is not treated as processing or manufacturing. Conversely, once goods have been used or put through a production process, the business loses eligibility for a refund under this re-export regime.
3. The most common mistake: import-stage VAT is NOT refundable
Many businesses assume that a refund of import duty automatically means a refund of the VAT paid at import. This assumption is wrong — and the costliest mistake in this area.
Based on our research team’s cross-checked findings, import-stage VAT on goods re-exported to another country is NOT refundable. The researched legal basis includes: Point a, Clause 1, Article 15 of Law No. 48/2024/QH15 (Law on Value-Added Tax), Clause 1, Article 29 of Decree No. 181/2025/ND-CP, and Official Letter No. 20836/CHQ-NVTHQ dated 24 August 2026 of the Customs Department.
Important note: the VAT treatment above has been verified against the original legal texts by our QA council. Businesses should still consult a lawyer before applying it to a specific case.
4. Minimum threshold: no refund below VND 50,000 per declaration
Clause 2, Article 37 of Decree No. 134/2016/ND-CP provides that where the refundable duty is below VND 50,000 per customs declaration, no refund is processed. A small detail, but worth knowing so businesses do not waste time filing for negligible amounts.
5. Key distinction: re-export of goods in original state vs. export of manufactured products
These are two entirely different refund regimes that are often confused:
| Criterion | Re-export of imported goods (this article) | Export of manufactured products |
|---|---|---|
| Legal basis | Point c, Clause 1, Article 19, Law 107/2016 | Point d, Clause 1, Article 19, Law 107/2016 |
| Condition of goods | Original state — unused, unprocessed, unmanufactured | Manufactured/processed from imported materials |
| Nature | Imported goods “turned around” abroad | Import materials → manufacture → export finished products |
| Export duty | Not payable | Per the export duty schedule (if applicable) |
If your business imports materials for production and then exports the finished products, the applicable regime is the import duty refund after exporting manufactured products abroad — not this article.
6. Refund procedure: dossier and filing
Refund dossiers follow Article 37 of Decree No. 134/2016/ND-CP and generally include: the import customs declaration, the re-export customs declaration, proof of import duty payment, and documents evidencing eligibility (contracts, return minutes, foreign seller correspondence). Dossiers are filed with the customs office where the import declaration was registered.
Practical recommendations:
- Keep complete records from the import stage: declarations, duty payment receipts, sales contracts — these are essential to prove the duty paid;
- Do not put goods into use if re-export is possible: once used, the refund right is lost;
- File promptly after completing re-export procedures;
- Separate import duty from VAT in accounting: only import duty is refundable; import-stage VAT follows separate rules (see section 3).
Frequently asked questions
Is export duty payable on re-exported goods?
No. Goods qualifying for re-export under Point c, Clause 1, Article 19 of Law 107/2016 receive a refund of import duty paid and are not subject to export duty.
Do goods that were inspected and repackaged still qualify?
Yes, if inspection and repackaging did not change the nature or function of the goods. Only goods that have been used, processed or manufactured lose eligibility.
Can goods be re-exported to a third country (not the country of origin)?
Yes. The law does not require goods to be re-exported to the original exporting country; the decisive conditions are eligibility and original state.
How is import-stage VAT treated for re-exported goods?
Based on our research, import-stage VAT on goods re-exported to another country is not refundable (researched basis: Article 15.1.a of Law 48/2024/QH15, Article 29.1 of Decree 181/2025/ND-CP, Official Letter 20836/CHQ-NVTHQ).
Legal sources
- Law on Export and Import Duties 107/2016/QH13 — Point c, Clause 1, Article 19 (refund on re-export); in force.
- Decree 134/2016/ND-CP — Article 34 (refund cases), Article 37 (refund dossier; VND 50,000 threshold); in force.
- Decree 18/2021/ND-CP — Clause 17, Article 1 (amending Article 34 of Decree 134/2016); effective 25 April 2021; in force.
- Law on VAT 48/2024/QH15, Decree 181/2025/ND-CP, Official Letter 20836/CHQ-NVTHQ dated 24 August 2026 — researched basis on import-stage VAT.
Contact us
Does your business have a shipment to re-export and need to confirm refund eligibility and documentation? Contact FLAT Law Firm for detailed advice under current regulations.
Disclaimer: This article provides general legal information for reference only and does not substitute legal advice for your specific case. Laws may be amended or supplemented; please check the instruments in force at the time of application or consult a lawyer.
Transparency note: This content was quality-checked (QA) by FLAT’s AI Legal Council under internal procedures and reviewed before publication; it has not been reviewed by a human lawyer.