Circular No. 185/2012/TT-BTC dated October 30, 2012 of the Ministry of Finance guiding exemption from import duties for spare parts and components for the manufacture and assembly of buses of the development, investment project of public passenger transportation by buses in Hanoi and Ho Chi Minh cities

THE MINISTRY OF FINANCE

Circular No. 185/2012/TT-BTC of October 30, 2012, guiding the import duty exemption for spare parts and components used for manufacturing or assembling buses under the investment project to develop mass transit by bus in Hanoi and Ho Chi Minh City

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

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 direction in the Government Office’s Official Letter No. 2366/VPCP-KTTH of April 10, 2012;

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

The Minister of Finance promulgates the Circular to guide the import duty exemption for spare parts and components used for manufacturing or assembling buses under the investment project to develop mass transit by bus in Hanoi and Ho Chi Minh City.

Article 1. Scope of application

This Circular guides the import duty exemption for domestically unavailable spare parts and components used for manufacturing or assembling buses under the investment project to develop mass transit by bus in Hanoi and Ho Chi Minh City during 2012-2015

Article 2. Conditions for import duty exemption

1. The investment project is approved by a competent state agency during 2012-2015 under the guidance of the Ministry of Transport, clearly identifying the project implementation duration; number, category, quality and value of spare parts and components which need to be imported to manufacture or assemble buses at home.

2. The ground for determining domestically available spare parts or components is the Ministry of Planning and Investment-issued list of domestically available machinery, equipment, spare parts, special-use vehicles, materials, supplies and semi-finished products which is valid at the time of registering the project’s goods import declarations.

Article 3. Import duty exemption procedures

1. Registration of the list of duty-exempt imports

a/ The project owner shall register the list of duty-exempt imports before registering the first import declaration of the project as well as its investment items and phases according to form 11 provided in Appendix VI to the Ministry of Finance’s Circular No. 194/2010/TT-BTC of December 6, 2010, guiding customs procedures; customs inspection and supervision; and import duty, export duty and tax administration of imports and exports (below referred to as Circular No. 194/2010/TT-BTC).

b/ Place of registration: Customs Departments of provinces and centrally run cities where the project is implemented.

c/ Registration dossier: Registrants shall submit and produce to customs offices a dossier comprising:

- A written request for registration of the list of duty-exempt imports clearly stating the quantity of spare parts and components and the grounds for requesting duty exemption, made according to form No. 13 provided in Appendix VI to Circular No. 194/2010/TT-BTC: To submit the original;

- The list of duty-exempt imports: To submit 2 originals together with a conciliation-monitoring slip made according to form 14 provided in Appendix VI to Circular No. 194/2010/TT-BTC;

- The investment license or investment incentive certificate: To submit 1 copy and produce the original for comparison;

- The project’s techno-economic evaluations and detailed technical designs: To submit 1 copy and produce the original for comparison;

- The list of documents included in the dossier: To submit the original.

d/ After the enterprise registers the list of duty-exempt imports, the customs office shall issue a conciliation monitoring slip to be produced by the taxpayer to the customs office when carrying out customs procedures for actually imported goods.

2. Duty exemption dossiers and procedures

a/ Duty exemption dossiers and procedures comply with Article 103 of Circular No. 194/2010/TT-BTC. In addition, the project owner must obtain the project approval document issued by a competent agency (under the guidance of the Ministry of Transport), clearly defining the project implementation duration; quantity, category, quality and value of spare parts and components to be imported for manufacturing or assembling buses at home.

b/ The project owner shall calculate and declare the exempted duty amount for each goods item and customs declaration as for cases liable to import duty. Customs offices shall compare tax exemption dossiers and duty amounts requested for exemption against current regulations and, on that basis, carry out duty exemption procedures for each customs declaration according to regulations.

3. Finalization of the import and use of duty-exempt goods and other related contents

a/ The project owner shall conduct finalization of the import and use of duty-exempt goods under Article 104 of Circular No. 194/2010/TT-BTC.

b/ Other contents related to customs dossiers, registration of the list of duty-exempt imports, customs offices’ responsibilities for inspection in the course of carrying out customs procedures, implementation of the regime of reporting on duty-exempt goods and taxpayers’ responsibilities which are not mentioned in this Circular comply with Circular No. 194/2010/TT-BTC.

Article 4. Organization of implementation

1. This Circular takes effect on December 14, 2012.

2. In the course of implementation, if relevant documents referred to in this Circular are amended, supplemented or replaced, the amending, supplementing or replacing documents prevail; and any arising problems should be promptly reported to the Ministry of Finance for study and guidance.-

For the Minister of Finance
Deputy Minister
VU THI MAI

* All the forms provided in appendices to this Circular are not translated.-