Circular No. 157/2011/TT-BTC dated November 14, 2011 of the Ministry of Finance promulgating the Export Tariff and Preferential Import Tariff according to the list of dutiable items

CIRCULAR

IN REFERENCE TO STIPULATING ON TAX RATE OF EXPORT TARIFF, PREFERENTIAL IMPORT TARIFF ACCORDING TO THE LIST OF TAXABLE ITEMS

- Pursuant to Law on Export and Import Duties dated 14/6/2005;

- Pursuant to Resolution No. 71/2006/QH11 dated 29/11/2006 of the National Assembly to ratify the Protocol to participate in Establishment Agreement of World Trade Organization of Socialist Republic of Vietnam;

- Pursuant to Resolution No. 295/2007/NQ-UBTVQH12 dated 09/28/2007 of Standing Committee of National Assembly on promulgating Export Tariff according to the list of taxable commodity groups and tax rate bracket with respect to each commodity group, Preferential Import Tariff according to the list of taxable commodity groups and preferential tax rate bracket for each commodity group;

- Pursuant to Resolution No. 710/2008/NQ-UBTVQH12 dated 22/11/2008 of the National Assembly Standing Committee on amending Resolution No. 295/2007/NQ-UBTVQH12 on 28/9/2007;

- Pursuant to Resolution No. 830/2009/UBTV12 dated 17/10/2009 of the National Assembly Standing Committee on amending Resolution No. 295/2007/NQ-UBTVQH12 dated 28/09/2007 and Resolution No. 710/2008 / NQ-UBTVQH12 on 22/11/2008;

- Pursuant to Decree No. 87/2010/ND-CP dated 13/8/2010 of the Government detailing the implementation of some articles of the Law on Export and Import Tax;

- Pursuant to Decree No. 118/2008/ND-CP dated 27/11/2008 of the Government regulating functions, tasks, powers and organizational structure of the Ministry of Finance;

Implement The Protocol regulating on implementation of ASEAN Harmonized Tariff Nomenclature (AHTN) 2012;

Ministry of Finance promulgates Export - Import Tariff, Preferential Import Tariff according to the list of taxable commodity as below:

Article 1:Promulgation of Export Tariff, Preferential Import Tariff according to the list of taxable commodity

This Circular is promulgated together with:

1. Export Tariff according to the list of taxable commodity regulated in Appendix I

2. Preferential Import Tariff according to the list of taxable commodity regulated in Appendix II

Article 2:Export Tariff according to the list of taxable commodity

1. The Export Tariff according to the list of taxable commodity regulated in Appendix I includes the description of commodity (name of commodity groups and name of commodity), code (4-digit commodity group, 8-digit commodity group) and the tax rate bracket of the export tariff for export taxable commodity group.

2. In case one commodity is not specified in the Export Tariff, when implementing customs procedures, the declarant shall still manifest the code including 8 digits corresponding to the code of this commodity in the Preferential Import Tariff regulated in Item I, Appendix II promulgated together with this Circular and show the export tax rate of 0% (zero percent).

3. The export duty for export commodity manufactured and processed from imported materials:

a). The commodity is exempted from export duty in case it is determinated to be manufactured and processed entirely from imported materials. Wooden commodity is considered ancillary materials in case it is painted, varnished or screwed.

b). In case the commodity are manufactured or processed from two sources: imported materials and domestic materials, it is exempted from export duty for exports corresponding to the number of imported materials used for manufacturing and processing commodity exported in reality. Exports manufactured and processed from domestic materials must pay export duty according to the export tax rate stipulated that export commodity.

c). Export duty exemption documents for the export submitted to Customs agency include:

- Dispatch proposing exemption from export duty for the exports manufactured and processed from the exported materials, in which explaining in detail quantity and value of the imported materials used for manufacturing and processing the exports; the quantity of the exports; the amount of export duty not to be collected: one (01) original;

- Customs declaration for import of materials completing customs procedure: submit one (01) copy and show one (01) original for comparison;

- Customs declaration for the exports: one (01) original;

- Export - Import Contract; Assignment of Export - Import Contract in case of entrusted import/export type: one (01) copy;

- Purchase contract (in case the enterprise importing materials to manufacture or process the exports not for export directly or entrust export but for selling to other enterprise to export to abroad directly): one (01) copy;

- Manufacturing association contract, processing contract for the exports in case of associate manufacture and processing of the exports: one (01) copy;

- Registration table on norm of imported materials for manufacturing and processing the exports which specifies the imported materials and domestic materials (each Declaration on export of material is registered once): the enterprise shows one (01) original and submits one (01) copy;

- List of declaration for the export of materials used for manufacturing and processing the exports which specifies the quantity of the imported materials: one (01) copy,

- List of documents proposing the exemption of tax: one (01) original;

The declaration contents of documents exempting from export duty for the exports mentioned in this point are implemented under guideline of Circular No.: 194/2010/TT-BTC dated December 6. 2010 by Ministry of Finance guiding Customs procedures; customs inspection and supervision; import duty, export duty and tax administration applicable to imports and exports.

4. Golden commodities (belonging to group 71 08), golden jewellery (belonging to group 71.13), golden industrial commodity (belonging to group 71.14) and other golden products (belonging to group 71 15) are applied the export tax rate of 0%. The exports, besides Customs documents in accordance with general regulations, must have the Verification of Gold Content of verification agency or authority under guideline of Circular No: 49/2010/TT-BTC dated April 12, 2010 by Ministry of Finance guiding the classification of, and application of tariffs to, imports and exports: show one (01) original for comparison and submit one (01) copy to Customs agency.

Article 3:Preferential Import Tariff according to the list of taxable commodity

Preferential Import Tariff according to the list of taxable commodity stipulated in Appendix II includes:

1. Item I: Tax rate of Preferential Import Duty is applied to 97 chapters according to list of the Vietnam imports. Contents include the description of commodity (name of commodity groups and name of commodity), code (commodity group, commodity including 8 digits), tax rate level of the preferential import duty regulated for commodity group or taxable commodity.

2. Item II: Chapter 98 - Regulating code and tax rate level of specific preferential import duty for some commodity groups and commodity. Contents include:

a). Annotation and applicable conditions for specific preferential import duty. Commodity groups and commodity applied specific preferential import duty rate level are stipulated from group 98.17 to group 98.22 in chapter 28 (except for group 98.20 and 98.21): Taxpayer must implement the final settlement for the export and use of commodity under regulations in Item II, Appendix II promulgated together with this Circular.

b). List of commodity groups, commodity and the preferential import duty rate level: Regulating name of commodity groups and commodity; commodity code in Chapter 98; corresponding code of such commodity groups and commodity in Item I, Appendix II (97 chapters according to list of the Vietnam Import Tariff) and the preferential import duty rate applied specifically in Chapter 98.

Article 4:Preferential import tax for used cars

Import tax for used cars as follows:

1. Passenger cars of 15 seats downwards (including driver) belonged to group 8702 and 8703 shall be applied to absolute import tax defined in Decision No.36/2011/QD-TTg dated 29.06.2011 of the Prime Minister promulgating the absolute rates of import duty of used cars to import and the guiding documents of the Ministry of Finance.

2. Passenger cars of 16 seats upwards (including driver) belonged to group 8702 and goods transport vehicles with total weight not exceeding 5 tons belonged to group 8704 (except for refrigerator cars, waste collection vehicles equipped with waste compressed parts, cistern car, vehicles designed to transport fresh concrete or bulk cement and vehicles designed to carry sludge) shall be applied to preferential import tax rate of 150%.

3. Other vehicles belonged to group 87.02, 87.03, 87.04 shall be applied to preferential import tax rate, equivalent to 1.5 times against the preferential import tax rate of automobiles of the same categories specified in the list of tax rates of preferential import tariff under the category of taxable goods, issued together with this Circular.

Article 5:Organization of implementation

1. This Circular takes effect since January 01, 2012.

2. It is abolished the Circular No. 184/2010/TT-BTC; 201/2010/TT-BTC; 208/2010/TT-BTC; 214/2010/TT-BTC; 07/2011/TT-BTC; 20/2011/TT-BTC; 24/2011/TT-BTC; 29/2011/TT-BTC; 46/2011/TT-BTC; 67/2011/TT-BTC; 77/2011/TT-BTC; 82/2011/TT-BTC; 91/2011/TT-BTC; 95/2011/TT-BTC; 102/2011/TT-BTC; 103/2011/TT-BTC; 108/2011/TT-BTC; 111/2011/TT-BTC; 119/2011/TT-BTC; 135/2011/TT-BTC; 145/2011/TT-BTC and other promulgations contrast with the this Circular

3. During implementation, the relevant documents referred to in this Circular amended, supplemented or replaced shall be complied with the documents amendment, supplement or replacement.