In the context of Vietnamese businesses increasingly importing machinery, Modern equipment for production, Failure or warranty expiration is inevitable. When you need to send machinery and equipment (MMTB) about foreign manufacturers to repair, guarantee, Many businesses encounter the double tax "trap" - having to pay import tax and VAT on the entire value of the machine even though it is only their own property..

This article will provide detailed instructions temporary import procedures, re-export and repair, guarantee according to regulations, especially how to use type codes G13/G23 to pay tax only on the repair fee (or completely waived if the warranty is free). With consulting experience from Logistics power – a logistics unit specializing in imports and customs procedures – businesses can completely avoid risks, Save costs and operate smoothly.

Opening: Tax "trap" when repairing machinery abroad

Imagine: An imported plastic injection machine line worth 2 billion VND had a broken circuit board. The business sent it back to Japan for repair under warranty. If you declare the wrong customs type, when the device returns to Vietnam, Customs can consider this as a new imported shipment and charge 0-10% import tax + 10% VAT on the entire value - which means losing hundreds of millions of dong for your own assets..

This is a common tax "trap" with goods temporarily imported for re-export for repair, guarantee. According to statistics from import businesses, More than 30% of cases encounter this situation due to lack of understanding of type codes and supporting documents.

Benefits of doing it right: Only pay tax on the repair/replacement fee (Usually only 5-15% of the machine value) or 100% tax free if warranty is free. Logistics power has supported hundreds of import businesses to successfully carry out this procedure, Helps save an average of 70-90% of unnecessary tax costs.

Legal basis and regulations on import-export type codes

Temporary import procedures, re-export and repair, Warranty is clearly stated, ensure transparency and reasonable tax exemptions:

• Export Tax Law, Import tax No. 107/2016/QH13 (Article 16): Tax exemption regulations for temporarily imported goods, re-export or temporary export, Re-imported for warranty purposes, repair, replaced within a certain period of time.
• Decree 134/2016/ND-CP (Article 13, amended): Details of import tax exemption cases for goods temporarily imported for re-export for repair, guarantee, Tax is only charged on added value (repair fee, replacement components).
• Decision 1357/QD-TCHQ of the General Department of Customs: Issue code table of import and export types, where the focus is G61/G23 (Temporarily export goods abroad for repair/warranty) and G13 (Re-import temporarily exported goods back to Vietnam).

Clearly distinguish type codes:

• G61/G23: Used for temporary export of goods (machines) go abroad for repairs. G61 mainly applies to temporary export for repair; G23 supports tax-free re-export cases.
• G13: Used for the re-importation period - this is the "key" code to be exempted from tax or charged tax only on the service fee.

Using the correct type code not only avoids double taxes but also helps customs documents clear quickly in just 1-3 working days..

Detailed implementation process: "Don't pay taxes twice" strategy with the support of Cuong Quoc Logistics

Stage 1: Temporarily export goods for repair (Code G61 or G23)

1. Check input records: Prepare original sales contract, warranty card (Warranty Card), repair agreement (Repair Agreement). This is the platform to prove that the machine is owned by a Vietnamese enterprise.
2. Customs declaration: Use VNACCS system, type code declaration G61 (or G23 depending on the business case). The description of the goods must be clearly stated: “Temporarily exported for repair/warranty according to agreement No..., row name: Plastic injection machine Model XYZ, Serial No. ABC123456…”. Serial/Model number is the "golden key" for control when re-importing.
3. Condition assessment (necessary): Request customs to physically inspect goods at the warehouse or border gate. Logistics power will coordinate to arrange quick inspection, Record detailed serial number records, helps avoid future disputes.

The temporary export period is usually 12 months (can be extended), Enterprises must commit to re-importing on time.

Stage 2: Re-import goods to Vietnam (Code G13)

1. Customs declaration: As soon as the machine returns to port (Cat Lai, Hai Phong…), File a new declaration with code G13 – Tax-free temporary import.
2. Principles of smart tax calculation:
   • Free warranty (Free of charge): 100% exemption of import tax + VAT.
   • There is a repair fee: Only import tax and VAT are charged on the value of repair fees + replacement parts + shipping fees (Not calculated based on original machine value).

With the support of Logistics power, Businesses only need to provide a repair invoice; The team will calculate the exact customs value, Avoid errors that lead to tax arrears.

The set of documents proves that "Repair operations" are complete

For customs to accept tax exemption or calculate tax correctly, Records must be complete and match:

1. Old temporary export declaration (original or notarized copy) – prove "this is the machine that was exported".
2. Minutes of confirmation of repair (Repair Report/Service Report) from foreign companies: State the error, replacement parts, serial is still intact.
3. Invoice repair fee: Clearly state “Repair Charge” or “Free of charge for warranty purpose” if under warranty.
4. Transport documents: Bill of Lading/Two-way Air Waybill (go and return), packing list.

Logistics power Providing "full package" services, help scan, translation, Copy all documents in just 24 hours, 100% guaranteed to match customs requirements.

Necessary forms of explanation letters

Two important types of official dispatches help your application get approved quickly:

1. Official dispatch requesting temporary export for repairs Content: State the reason for the failure (with photos/videos), Estimated time for repair (For example: 30-45 days), Commit to re-import on time. Recommend customs to check the actual serial number for comparison. This sample letter Logistics power available supply, Just fill in the information.
2. Official letter explaining tax exemption upon re-import Compare the serial numbers between the two declarations, explain costs incurred (if any), Citing Article 13 of Decree 134/2016/ND-CP and Law 107/2016/QH13. This official dispatch helps customs confirm "not a new import".
3. "Golden Notes" to avoid having your application rejected by Cuong Quoc Logistics

• Temporary export period: Must re-enter on time for registration. Overdue will be subject to an administrative fine of 20-50% of the tax amount.
• Serial/Model number: Must match 100%. If the company replaces the device with a new one (replacement), Need to add a confirmation letter "Warranty return" and the procedure will be changed to another type - Logistics power Separate handling instructions will be provided.
• Cash flow: Repair fees must be paid via bank (no cash) to match documents.
• Special case: Machines belonging to investment projects or EPEs require additional licenses from the Ministry of Planning&Phone.
• Common risks: Declaring a vague goods description or missing repair records – leading to a full tax charge.

With Logistics power, Businesses receive free consultation before exporting, Reduce 99% of risks.

Conclude

Temporary import procedures, re-export and repair, guarantee It's not complicated if you do the type code correctly G13/G23 and prepare complete documents. The key point is the Serial/Model number and accurate declaration - helping businesses only pay tax on repair fees or be completely exempt from tax., Save hundreds of millions of dong each time.

Cuong Quoc Freight Forwarding Company Limited

Office: 7th floor, Parami Building, 140 Bach Dang, Tan Son Hoa Ward, Ho Chi Minh City

Hotline: 0972 66 71 66

Email: info@cql.com.vn

Website: https://cql.com.vn/