Samsung wants Vietnam to waive taxes for recalled Galaxy Note 7

The company doesn't want to pay tax twice for sending out replacement phones.

Korean tech giant Samsung has asked Vietnam to waive import/export duties and VAT for the faulty Galaxy Note 7 smartphones that it has been recalling globally.

The brand new phablets are produced by the Vietnam-based Samsung Electronics Vietnam Thai Nguyen (SEVT) in the northern province of Thai Nguyen.

An employee uses a Samsung Electronics' Galaxy Note 7 new smartphone at its store in Seoul, South Korea, September 2, 2016. Photo by Reuters/Kim Hong-Ji

In a recent letter sent to the General Department of Vietnam Customs, SEVT said under the global recall and exchange scheme announced in early September, the recalled smart phones from end-users will be shipped to SEVT. 

The company will then send back new mobile phones with the same IMEIs (International Mobile Equipment Identities) and serial numbers to customers.

The Korean company wants the customs office to treat the recalled and exchanged smart phones as re-export commodities, which are currently exempt from taxes.

Given the size of the recall and exchange program, SEVT hopes Vietnam Customs will view it as “a special and urgent situation” and hopes to receive feedback from the department.

SEVT’s proposal is under consideration.

Samsung announced on September 2 a recall of at least 2.5 million Galaxy Note 7 smartphones in 10 markets, including the Republic of Korea, due to a faulty battery that causes the phones to catch fire, offering refunds or replacement devices with safe batteries.

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