What is import liquidation?
Import liquidation is the process of processing, paying for or reselling imported goods that are no longer used for their original purpose. Liquidation can be carried out in many forms such as:
- Export abroad
- Sale, donation, gift in domestic market
- Destroy
Normally, liquidated goods are fixed assets that have been fully depreciated, surplus raw materials after a project, or machinery that is no longer suitable for production and business needs. The subjects of liquidation are mainly import enterprises and export processing enterprises (EPEs).
Conditions for liquidation of imported goods
The liquidation of imported goods must comply with certain conditions, depending on the type of goods:
For machinery, equipment, and means of transport: Expired depreciation period, damaged, technically defective, no longer in use due to changes in technology or production scale
For raw materials and components: Excess compared to demand, not ensuring quality, Not suitable for production purposes
Procedures for liquidation of imported goods
The procedure for liquidating imported goods includes the following basic steps:
Step 1: Determine the form of liquidation
Enterprises need to clearly define the form of liquidation, including:
- Export abroad
- Sell or transfer for domestic consumption
- Give, donate or destroy
Step 2: Prepare documents
- Liquidation request document, stating the reason and list of goods
- Original import customs declaration
- Documents proving the condition of the goods (inspection report, photos, technical assessment...)
- Tax exemption cases: Back-off tracking voucher, tax exemption certificate
Step 3: Customs declaration
Depending on the case:
- Export: Enterprises declare export declarations
- Shift to domestic consumption: Declare a new import declaration to change the purpose of use
- Destruction: Make a record of destruction, declare to customs and report to the environmental management agency.
Step 4: Submit application via electronic system
All documents must be sent via the VNACCS/VCIS system. In case the original import declaration is lost, the enterprise must still fully declare according to regulations.
Step 5: Pay taxes and complete procedures
- Enterprises pay arising taxes (if any) according to the tax rate at the time of registering the new declaration.
- Customs checks the documents and confirms completion of liquidation procedures
Clearance of duty-free imported goods
In case imported goods are exempted from tax according to investment projects, when liquidated domestically, the enterprise have to pay taxes as in the case of normal taxable goods.
Some important notes when liquidating tax-free imported goods: Procedures must be carried out at the customs office where the enterprise has registered the initial tax-free list. The enterprise must fully declare information related to the shipment and fulfill the obligation to pay import tax and value-added tax at the time of liquidation. In case the consignee is also an enterprise enjoying tax-free incentives, both parties need to update information on the Deduction Tracking Form to ensure proper management.
Liquidation of imported goods of export processing enterprises (EPEs)
Export processing enterprises can liquidate goods in three main forms. Firstly, for selling, giving, and donating activities in the domestic market, enterprises can choose one of two options: declare customs to change the purpose of use and pay all taxes as prescribed, or carry out on-site import and 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 normal procedures. Finally, if the goods are no longer usable and need to be destroyed, enterprises must make a destruction record, declare customs and fully implement environmental protection requirements according to current regulations.
New update: Official dispatch No. 3365/CHQ-GSQL dated April 25, 2025
Pursuant to Official Dispatch No. 3365/CHQ-GSQL dated April 25, 2025, the Customs Department requests:
- Enterprises must fully declare electronic customs according to the provisions of Point d, Clause 2, Article 18 of the 2014 Customs Law, Clause 2, Article 16a of Circular 39/2018/TT-BTC, Article 21 and Article 79 of Circular 38/2015/TT-BTC (amended and supplemented in Circular 39/2018/TT-BTC).
- Customs dossiers must clearly state the reason for liquidation, form of liquidation and shipment information.
In case the original declaration has expired or is lost, the enterprise needs to compare the actual production to fully explain.
Conclude
Import clearance is an activity that must be carried out in accordance with regulations to avoid legal and tax risks. Businesses need to clearly understand:
- Conditions for liquidation
- Customs procedures corresponding to each form of liquidation
- Responsibility for declaring and paying taxes, especially in the case of duty-free goods or of DNCX
- Latest instructions from the Customs Department, especially according to Official Dispatch 3365/CHQ-GSQL in 2025
In addition, readers can contact MAN – Master Accountant Network to receive professional consultation and advice to help solve problems quickly and accurately through:
- Mobile / Zalo: 0903 963 163 – 0903 428 622
- E-mail: man@man.net.vn
