Circular No. 164/2015/TT-BTC dated November 05, 2015 of the Ministry of Finance on amending and supplementing the list of commodity groups and the particular preferential import duty rates for materials, supplies, components and ancillary parts for manufacturing key information technology products in Chapter 98 of the Preferential Import Tariff, issued together with the Minister of Finance’s Circular No. 164/2013/TT-BTC of November 15, 2013

CIRCULAR

Amending and supplementing the list of commodity groups and the particular preferential import duty rates for materials, supplies, components and ancillary parts for manufacturing key information technology products in Chapter 98 of the Preferential Import Tariff, issued together with the Minister of Finance’s Circular No. 164/2013/TT-BTC of November 15, 2013[1]

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

Pursuant to 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, and 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 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. 215/2013/ND-CP of December 23, 2013, defining the functions, tasks, powers and organizational structure of the Ministry of Finance;

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

The Minister of Finance promulgates the Circular amending and supplementing the list of commodity groups and the particular preferential import duty rates for materials, supplies, components and ancillary parts for manufacturing key information technology products in Chapter 98 of the Preferential Import Tariff, issued together with the Minister of Finance’s Circular No. 164/2013/TT-BTC of November 15, 2013.

Article 1.To amend and supplement Section I - Annotations and conditions for application of the particular preferential import duty rates for materials, supplies, components and ancillary parts for manufacturing key information technology products in Chapter 98

1. To add Clause b.8 to Point 3 - Classification method and conditions for application of the particular preferential import duty rates specified in Chapter 98, finalization of import and use in Section I - Annotations and conditions for application of the particular preferential import duty rates in Chapter 98, prescribed in the Minister of Finance’s Circular No. 164/2013/TT-BTC of November 15, 2013, as follows:

“b.8. Imports under heading 98.34:

b.8.1/ Conditions for application:

- Imports being materials, supplies, components and ancillary parts for manufacturing key information technology products under heading 9834.12.90 and headings 9834.28.00 through 9834.37.00 under heading 98.34.

- Being imported by key information technology product manufacturers.

b.8.2/ Import procedures:

b.8.2.1/ Responsibilities of customs declarants:

Customs declarants shall register the list of imported goods being materials, supplies, components and ancillary parts for manufacturing key information technology products under heading 9834.12.90 and headings 9834.28.00 through 9834.37.00 (list) with customs branches most convenient to them, with annually imported quantities commensurate with factories’ annual capacity/need for manufacture and assembly before importing the first shipment of products. A dossier of application to the customs office that grants the list must comprise:

- The Ministry of Information and Communications’ confirmation for the list of goods;

- A written request for the list;

- The list of goods and the reconciliation monitoring slip.

A written request for grant of the list, the list of goods and the reconciliation monitoring slip shall be made according to Clause 5, Article 104 of the Ministry of Finance’s Circular No. 38/2015/TT-BTC of March 25, 2015, prescribing customs procedures; customs inspection and supervision; import duty and export duty and tax administration for imports and exports, in which the phrase “tax exemption” shall be replaced with the phrase “for manufacturing key information technology products.”

If the registered list requires modifications and supplements, the customs declarant may modify and supplement it, providing that he/she/it submits relevant papers and documents to the customs office with which the list is registered prior to the first import of goods or before importing the subsequent shipment with the modified and supplemented list to prove that the modifications and supplements are appropriate. A dossier of application to the customs office that grants the modified and supplemented list must comprise:

- A written request for the modified and supplemented list;

- The modified and supplemented list of goods and reconciliation monitoring slip.

If the list and the reconciliation monitoring slip are lost, the customs declarant shall make a dossier of application for the re-grant to the custom office that has granted the original list. It must comprise:

- A written request for the re-grant of the list and the reconciliation monitoring slip which clearly states the reason of losing and the customs declarant’s commitment on the accuracy of the declared content.

- A statement of all (electronic or paper) customs declarations of the quantity of goods already imported according to the list;

- The list and reconciliation monitoring slip of the customs office which cleared import procedures for the last shipment before the loss (1 copy certified by the customs office of the place of importation).

When carrying out customs procedures, the customs declarant shall submit and produce to the customs office with which the customs declaration has been registered the following documents:

- The customs dossier as prescribed;

- The list of goods and reconciliation monitoring slip registered with the customs office (the copy given to the customs declarant) for the customs office to reconcile imported goods.

Within 90 days after the end of every fiscal year, the customs declarant shall submit a report on the use of materials, supplies, components and ancillary parts for manufacturing key information technology products for enjoyment of particular preferential import duty rates for goods under heading 9834.12.90 and headings 98.34.28.00 through 9834.37.00 in the fiscal year to the customs office under Article 41 of the Government’s Decree No. 08/2015/ND-CP of January 21, 2015, and Article 60 of the Finance Minister’s Circular No. 38/2015/TT-BTC of March 25, 2015, and concurrently to the Ministry of Information and Communications for monitoring.

b.8.2.2/ Responsibilities of the customs office:

b.8.2.2.1/ Upon receipt of the list:

- After the customs declarant submits the dossier, the customs branch with which the customs declarant has registered the list shall examine and make a monitoring slip, affix its seal for certification to 2 copies of the list of imported goods and 1 reconciliation monitoring slip (1 original list for file, 1 original list together with 1 original reconciliation monitoring slip for the customs declarant to produce to the customs office clearing import procedures which shall reconcile actually imported goods and assess taxes under the Finance Minister’s Circular No. 38/2015/TT-BTC of March 25, 2015, and Point b.8.2.2.2, Clause 1, Article 1 of this Circular).

- In case the customs declarant needs to modify the list and the reconciliation monitoring slip, the customs branch wih which the customs declarant has registered the list shall examine and make a monitoring slip, affix its seal for certification to 2 copies of the list of imported goods and 1 reconciliation monitoring slip requiring modification (1 original list for file, 1 original list together with 1 original reconciliation monitoring slip for the customs declarant to produce to the customs office clearing import procedures which shall reconcile actually imported goods and assess taxes under the Finance Minister’s Circular No. 38/2015/TT-BTC of March 25, 2015, and Point b.8.2.2.2, Clause 1, Article 1 of this Circular).

- In case the customs declarant loses the list and the reconciliation monitoring slip: At the request of the customs declarant and based on the certification by customs departments of other localities, the customs office with which the customs declarant has registered the list shall conduct thorough examination and re-grant the list of goods and the reconciliation monitoring slip for materials, supplies, components and ancillary parts for manufacturing key information technology products under heading 9834.12.90 and headings 98.34.28.00 through 9834.37.00, which have not been imported under the Finance Minister’s Circular No. 38/2015/TT-BTC of March 25, 2015.

The time limit for settlement by customs offices for registration, modification and re-grant of the list must comply with Article 104 of the Finance Minister’s Circular No. 38/2015/TT-BTC of March 25, 2015.

b.8.2.2.2/ Upon clearance of import procedures:

In addition to prescribed customs procedures, the customs office shall, based on the customs dossier, compare with the reconciliation monitoring slip to reconcile  materials, supplies, components and ancillary parts for manufacturing key information technology products under heading 9834.12.90 and headings 98.34.28.00 through 9834.37.00 actually imported by the customs declarant, sign for certification according to regulations, and keep in the customs dossier 1 copy of the list and the reconciliation monitoring slip in which reconciliation has been made.

When the quantity of goods recorded in the reconciliation monitoring slip is completely imported, the head of the customs branch last clearing customs procedures shall certify “to have imported all goods on list No. ….” on the original reconciliation monitoring slip of the customs declarant and keep 1 copy, grant another copy to the customs declarant and send the original to the customs branch which has granted the reconciliation monitoring slip for inspection of goods already cleared for customs procedures according to regulations.

In case the customs branch receiving the list is concurrently the one clearing goods import procedures, after the head of the branch has certified that the quantity of goods has been completely imported in the reconciliation monitoring slip, the branch shall keep 1 original, grant a copy to the customs declarant and transfer 1 copy of the reconciliation monitoring slip together with the list registration dossier for inspection of goods already cleared from customs procedures according to regulations.

b.8.2.2.3/ After receiving the original reconciliation monitoring slip from the customs branch last clearing customs procedures, the customs branch which has registered the list and granted the reconciliation monitoring slip shall collect the entire list registration dossier and transfer it to the customs branch conducting post-customs clearance inspection as the basis for post-clearance inspection in accordance with regulations on risk management of the use of imports having enjoyed particular preferential import duty rates under heading 9834.12.90 and headings 98.34.28.00 through 9834.37.00 under Article 98 of the Government’s Decree No. 08/2015/ND-CP of January 21, 2015.

2. If being used for improper purposes, goods under heading 9834.12.90 and headings 98.34.28.00 through 9834.37.00 must be subject to import duty at the preferential import duty rate applicable to goods under corresponding headings in Chapter 97 at the time of registration of the import declaration with the customs office.

Article 2.To supplement Section II - List of goods categories and preferential import duty rates of Chapter 98

To add a number of goods being materials, supplies, components and ancillary parts for the manufacture of key information technology products to heading 9834 in Section II - List of goods categories and preferential import duty raes of Chapter 98, as follows:

Article 3.Effect

1. This Circular takes effect on December 20, 2015.

2. To annul Articles 2 and 3 of Circular No. 101/2015/TT-BTC of June 29, 2015, supplementing the list of commodity groups and separate preferential import duty rates for raw materials, supplies, components and ancillary parts for producing key information technology products in Chapter 98 of the Preferential Import Tariff promulgated together with the Minister of Finance’s Circular No. 164/2013/TT-BTC of November 15, 2013.

3. Cases in which the list of raw materials, supplies and ancillary parts for producing key information technology products under Circular No. 101/2015/TT-BTC of June 29, 2015, has been registered but is modified, supplemented or replaced and the use of raw materials, supplies, components and ancillary parts is reported from the effective date of this Circular, shall comply with this Circular.-

For the Minister of Finance
Deputy Minister
VU THI MAI