Circular No. 164/2013/TT-BTC date November 15, 2013 of the Ministry of Finance promulgating the Export Tariff and Preferential Import Tariff according to the list of dutiable commodities

CIRCULAR

Promulgating the Export Tariff and Preferential Import Tariff according to the list of dutiable commodities[1]

Pursuant to the June 14, 2005 Law on Import Duty and Export Duty;

Pursuant to the National Assembly’s Resolution No. 71/2006/QH11 of November 29, 2006, ratifying the World Trade Organization Protocol on Accession of the Socialist Republic of Vietnam;

Pursuant to the National Assembly Standing Committee’s Resolution No. 295/2007/NQ-UBTVQH12 of September 28, 2007, promulgating the Export Tariff according to the list of dutiable commodity groups and the duty rate bracket for each commodity group, the Preferential Import Tariff according to the list of dutiable commodity groups and the preferential duty rate bracket for each commodity group;

Pursuant to the National Assembly Standing Committee’s Resolution No. 710/2008/NQ-UBTVQH12 of November 22, 2008, amending Resolution No. 295/2007/NQ-UBTVQH12 of September 28, 2007;

Pursuant to the National Assembly Standing Committee’s Resolution No. 830/2009/UBTV12 of October 17, 2009, amending Resolution No. 295/2007/NQ-UBTVQH12 of September 28, 2007, and Resolution No. 710/2008/NQ-UBTVQH12 of November 22, 2008;

Pursuant to the Government’s Decree No. 87/2010/ND-CP of August 13, 2010, detailing a number of articles of the Law on Import Duty and Export Duty;

Pursuant to the Government’s Decree No. 118/2008/ND-CP of November 27, 2008, defining the functions, tasks, powers and organizational structure of the Ministry of Finance;

In furtherance of the Prime Minister’s Directive No. 09/CT-TTg of May 24, 2013, enhancing the direction and management of the performance of state budget-financial tasks in 2013;

In furtherance of the Prime Minister’s conclusion in the Government Office’s Notice No. 302/TB-VPCP of August 12, 2013;

At the proposal of the director of the Tax Policy Department;

The Minister of Finance promulgates the Circular promulgating the Export Tariff and Preferential Import Tariff according to the list of dutiable commodities.

Article 1. To promulgate the Export Tariff and the Preferential Import Tariff according to the list of dutiable commodities

Promulgated together with this Circular are:

1. The Export Tariff according to the list of dutiable commodities provided in Appendix I.

2. The Preferential Import Tariff according to the list of dutiable commodities provided in Appendix II.

Article 2. Export Tariff according to the list of dutiable commodities

1. The Export Tariff according to the list of dutiable commodities provided in Appendix I includes descriptions and headings of commodities (8-digit sub-headings), and export duty rates for each dutiable export item.

2. In case export commodities are not specified in the Export Tariff, when carrying out customs procedures, customs declarers shall still declare 8-digit sub-headings of such export commodities in the Preferential Import Tariff provided in Section I of Appendix II to this Circular, and write the export duty rate of 0% (zero percent).

3. Export duty on export commodities produced and processed from import materials:

a/ In case commodities meet the conditions for identified as having been wholly produced or processed from import materials, they are not subject to export duty. For timber, accompanied paint, varnish and screws will be identified as auxiliary materials.

b/ Commodities produced or processed from two sources of imported materials and domestically available materials are not subject to export duty for the export volume corresponding to the imported material volume used for production or processing of actually exported commodities. The volume of export commodities produced or processed from domestically available materials is subject to export duty at the export duty rate prescribed for such export commodity.

c/ The dossier of application for non-collection of export duty for export commodities complies with the guidance in Clause 2, Article 126 of the Ministry of Finance’s Circular No. 128/2013/TT-BTC of September 10, 2013, prescribing customs procedures; customs inspection and supervision; import duty and export duty; and tax administration of imports and exports.

4. To be eligible for the export duty rate of 5% prescribed in the Export Tariff, planted forest wood charcoal under the sub-heading of 4402.90.90 must satisfy the following technical criteria:

 Article 3. Preferential Import Tariff according to the list of dutiable commodities

The Preferential Import Tariff according to the list of dutiable commodities provided in Appendix II includes:

1. Section I: Prescribing preferential import duty rates applicable to 97 chapters according to the list of import commodities of Vietnam. It includes titles of Parts, Chapters, Part Annotations and Chapter Annotations; the tariff with detailed commodity descriptions (names of commodity groups and commodities), commodity headings (8-digit sub-headings) and preferential import duty rates prescribed for the dutiable commodities.

2. Section II: Chapter 98 - Prescribing commodity headings and particularly preferential import duty rates for a number of commodity groups and commodities.

2.1. Annotations and conditions for application of the particularly preferential import duty rates prescribed in Chapter 98.

a/ Chapter annotations: Commodities named in Clause 1, Part I, Section II of Appendix II to this Circular are eligible for the particularly preferential import duty rates in Chapter 98.

b/ Group annotations:

- Classification of commodity headings and application of particularly preferential import duty rates for automobiles in CKD complies with Clause 2.1, Part I, Section II, Appendix II to this Circular;

- Commodities: Surface working agent used for production of spread fabric and leatherette fabric under heading 98.06; kraft paper used for production of bleached cement bag under heading 98.07; alloy steel containing Boron under heading 98.11; barrier cream, scar reduction gel under heading 98.25; nylon fabric 1680/D/2 and 1890 D/2 under heading 98.26 and copper wire with cross section of between 6 mm and under 8 mm under heading 98.30 are eligible for the particularly preferential import duty rates in Chapter 98 if satisfying the standards and technical parameters specified in Clauses 2.2, 2.3, 2.4, 2.5, 2.6 and 2.7, Part I, Section II, Appendix II to this Circular.

c/ Classification method and conditions for application of the particularly preferential import duty rates specified in Chapter 98, settlement of import and use of the commodities in Chapter 98 comply with Clause 3, Part I, Section II, Appendix II to this Circular.

2.2. The list of commodity groups, commodities and preferential import duty rates includes: Headings of commodity groups and commodities in Chapter 98; descriptions of commodities (names of commodity groups and commodities); corresponding sub-headings of such commodity groups or commodities in Section I, Appendix II (97 chapters according to the list of Vietnam’s Import Tariff) and the particularly preferential import duty rates in Chapter 98, comply with the specific provisions in Part II, Section II, Appendix II to this Circular.

2.3. If being eligible for the particularly preferential import duty rates under current regulations, commodity groups and commodities which are named and eligible for the particularly preferential import duty rates in Chapter 98 may be selected to enjoy the particularly preferential import duty rates provided in the Circulars promulgating the Particularly Preferential Import Tariff or the particularly preferential import duty rates provided in Chapter 98 of this Circular.

2.4. When carrying out customs procedures, customs declarers shall declare headings in the column “Headings corresponding to Section I, Appendix II” specified in Chapter 98 and note beside the headings in Chapter 98.

Example: Upon import of kraft paper used for production of bleached cement bag, customs declarers shall declare the sub-heading of 4804.29.00 (9807.00.00) and the preferential import duty rate of 3%.

Article 4. Roadmap for application of preferential import duty rates for a number of commodity items under headings 27.07, 29.02 and 39.02

To apply the preferential import duty rates for a number of commodity items under headings 27.07, 29.02 and 39.02 according to the following roadmap:

1. From January 1, 2014, to December 31, 2014: To apply the preferential import duty rates as specified in Section I, Appendix II to this Circular.

2. From January 1, 2015 on: To apply the preferential import duty rates according to the following roadmap:

 Article 5. Preferential import duty for imported used cars

Preferential import duty for imported used cars is specified as follows:

1. The import duty rates for passenger cars with 15 seats or less (including driver’s) under headings 87.02 and 87.03 is specified in the Prime Minister’s Decision No. 36/2011/QD-TTg of June 29, 2011, promulgating import duty rates for used cars with 15 seats or less, Decision No. 24/2013/QD-TTg of May 3, 2013, amending and supplementing Clause 1, Article 1 of Decision No. 36/2011/QD-TTg of June 29, 2011, and the Ministry of Finance’s documents guiding and adjusting import duty rates.

2. The preferential import duty rate for passenger cars with 16 seats or more (including driver’s) under Heading 87.02 and cargo vehicles of a gross vehicle weight not exceeding 5 tons under Heading 87.04 (except refrigerated trucks, refuse collection vehicles having a refuse compressing device, tanker vehicles, armored vehicles for transporting valuable cargoes, bulk-cement trucks, and hook-lift trucks) is 150%.

3. The preferential import duty rates for other cars under Headings 87.02, 87.03 and 87.04 are equal to 1.5 times of the preferential import duty rates for brand-new cars of the same type under Headings 87.02, 87.03 and 87.04 as specified in Section I, Appendix II to this Circular.

Article 6. Organization of implementation

1. This Circular takes effect on January 1, 2014.

2. This Circular supersedes:

a/ The Ministry of Finance’s Circular No. 193/2012/TT-BTC of November 15, 2012, promulgating the Export Tariff and Preferential Import Tariff according to the list of dutiable commodities.

b/ The Ministry of Finance’s Circular No. 208/2012/TT-BTC of November 30, 2012, amending preferential import duty rates for aviation spirit and jet fuel under Heading 27.10 in the Preferential Import Tariff.

c/ The Ministry of Finance’s Circular No. 12/2013/TT-BTC of January 21, 2013, amending the preferential import duty rate for non-alloy steel under sub-heading 7217.10.39 in the Preferential Import Tariff.

d/ The Ministry of Finance’s Circular No. 38/2013/TT-BTC of April 4, 2013, amending the preferential import duty rates for a number of commodity items under headings 39.03, 54.02, 59.02 and 72.17 in the Preferential Import Tariff.

e/ The Ministry of Finance’s Circular No. 39/2013/TT-BTC of April 9, 2013, amending the preferential import duty rate for hydrogen peroxide under sub-heading 2847.00.10 in the Preferential Import Tariff.

g) The Ministry of Finance’s Circular No. 44/2013/TT-BTC of April 25, amending the export duty rates for a number of minerals in the Export Tariff.

h) The Ministry of Finance’s Circular No. 56/2013/TT-BTC of May 06, 2013, amending the export duty rate for planted forest wood charcoal under heading 44.02 in the Export Tariff.

i) The Ministry of Finance’s Circular No. 70/2013/TT-BTC of May 22, 2013, amending the preferential import duty rates for a number of commodity items under heading 27.10 in the Preferential Import Tariff.

k) The Ministry of Finance’s Circular No. 71/2013/TT-BTC of May 23, 2013, amending the export duty rates for a number of coal items under headings 27.01 and 27.04 in the Export Tariff.

l) The Ministry of Finance’s Circular No. 79/2013/TT-BTC of June 7, 2013, amending the preferential import duty rates for a number of commodity items under heading 17.02 in the Preferential Import Tariff.

m) The Ministry of Finance’s Circular No. 107/2013/TT-BTC of August 12, 2013, amending the preferential import duty rates for a number of commodity items under headings 27.07, 29.02 and 39.02 in the Preferential Import Tariff.

n) The Ministry of Finance’s Circular No. 120/2013/TT-BTC of August 27, 2013 amending and supplementing descriptions of commodity items under heading 98.25 in Chapter 98 specified in the Preferential Import Tariff promulgated together with the Ministry of Finance’s Circular No. 193/2012/TT-BTC of November 15, 2012.

o) The Ministry of Finance’s Circular No. 124/2013/TT-BTC of August 30, 2013, amending the export duty rates for a number of commodity items under heading 27.01 in the Export Tariff.

p) The Ministry of Finance’s Circular No. 125/2013/TT-BTC of August 30, 2013, amending the preferential import duty rates for a number of commodity items under sub-headings 2836.30.00, 2916.31.00, 3302.10.90, 3824.90.70 in the Preferential Import Tariff.

q) The Ministry of Finance’s Circular No. 157/2013/TT-BTC of November 11, 2013, amending the export duty rates for a number of rubber items under headings 40.01, 40.02 and 40.05 specified in the Export Tariff promulgated together with the Ministry of Finance’s Circular No. 193/2012/TT-BTC of November 15, 2012.

r) Other regulations of the Ministry of Finance on export duty and preferential import duty that are contrary to this Circular.

3. In the course of implementation, if relevant documents referred to in this Circular are amended, supplemented or replaced, amending, supplementing or replacing documents must be complied with.-

For the Minister
Deputy Minister
VU THI MAI