The General Department of Taxation issued a document guiding the application of import duty rates to certain cases of paper product import, specifically as follows:
Where the enterprise purchases paper pulp overseas, has the paper pulp processed, and then imports finished paper products, the paper pulp shall not be subject to import duties the finished paper.
Where the enterprise imports paper pulp into Vietnam, brings the paper pulp overseas for processing and imports finished paper products, it must declare and pay import duties for paper pulp as well as finished paper products. However, dutiable price of processed paper products is the actual price of imported paper products deducting the value of the appropriate volume of exported paper pulp to be processed.
[Official Letter 116 TCT/NV3 dated January 09, 2003]
[Intellasia Legal Digest]