In order to be exempted from duties, the business sector has to be verified the subject to duty exemption by the Ministry of Finance and Economy, and then the company receives confirmation of the declaration of capital goods import from trust organization (foreign exchange bank or KOTRA) to submit when the company imports the machinery.
Capital goods introduced as a means of foreign or domestic payment and capital goods for investment in stock from foreign investors
Industrial facilities (including ship, automobile and airplane) as machinery, tools and materials, equipments, parts and components
Livestock, seeds, tree and fish and shellfish required for development of agriculture, forestry and fishery
Other raw materials and reserve stocks recognized to be needed for initial test working by the director of state administration that takes charge of the business, and technique and goods and service for transportation, insurance and facilities
If the foreign investor wants to get duty exemption or abatement for the importation of capital goods, first he/she has to receive approval for tax deduction by the Ministry of Finance and Economy.
The following documents need to be submitted at the relevant customs office before the import notification is completed. If the import process takes place in several steps, then it is necessary to apply for duty exemption each time.
• Application form of exemption for customs, special expenditure tax, value-added tax
• Document verifying that the business is subject to deduction of corporate tax
(copy of approval for tax deduction by the Ministry of Finance and Economy)
• Document verifying that the capital goods were imported through the cash of the foreign investor (copy of the certificate of FDI notification)
• Confirmation of the declaration of capital goods import