Circular No. 214/2010/TT-BTC dated December 28, 2010 of the Ministry of Finance guiding the policy of preferential Import Tax applicable to materials, equipment imported for manufacture of key mechanical products and for investment for manufacture of key mechanical products

CIRCULAR

GUIDING THE POLICY OF PREFERENTIAL IMPORT TAX APPLICABLE TO MATERIALS, EQUIPMENT IMPORTED FOR MANUFACTURE OF KEY MECHANICAL PRODUCTS AND FOR INVESTMENT FOR MANUFACTURE OF KEY MECHANICAL PRODUCTS

Pursuant to the Law on Import Tax and Export Tax dated 06/14/2005;

Pursuant to the Resolution No.295/2007/NQ-UBTVQH12 dated 28/9/2007 of the Standing Committee of National Assembly promulgating the Export Tax according to the List of dutiable commodity groups and the duty rate bracket for each commodity group and the preferential import tax according to the List of dutiable commodity groups and the preferential duty rate bracket for each commodity group;

Pursuant to the October 17, 2009 Resolution No.830/2009/UBTV12 of the Standing Committee of National Assembly on amending Resolution No. 295/2007/NQ-UBTVHQ12 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 of August 13, 2010 detailing implementation of the Law on Import Duty and Export Duty;

Pursuant to the January 16, 2009 Decision No.10/2009/QD-TTg of the Prime Minister providing for the mechanism of support for manufacture of key mechanical products;

Pursuant to the November 27, 2008, Decree No.118/2008/ND-CP of the Government providing for functions, duties, powers and organizational structure of the Ministry of Finance;

The Ministry of Finance guides policy of the preferential import tax applicable to materials, equipment imported for manufacture of key mechanical products and for serving investment project of manufacture of key mechanical products according to provisions in the January 16. 2009 Decision No.10/2009/QD-TTg of the Prime Minister on the mechanism of support for manufacture of key mechanical products as follows:

Article 1. Rates of the preferential import tax

Materials, equipment imported for manufacture of key mechanical products and for serving investment project of manufacture of key mechanical products are applied rate of the preferential import tax of 0%.

Article 2. Conditions, dossier and formalities

1. For being applied rate of the preferential import tax of 0% referred in Article 1 of this Circular:

a) Imported materials, equipment must be the one used for investment project of manufacture of key mechanical products provided in Annex I (List of key mechanical products phase from 2009 to 2015) and Annex II (List of investment project of manufacture of key mechanical products phase from 2009 to 2015) issuing together with this Decision No.10/2009/QĐ-TTg;

b) Enterprises must determine its demand of use and set up List of imported materials, equipment together with a monitoring card of backward deduction and register with the customs agencies before registering the first import declarations; List of imported materials, equipment and monitoring card of backward deduction are set up one time for the whole project, or each phase of implementation of investment project of manufacture of key mechanical products. In case the number of materials, equipment or prices of imported materials, equipment in the List is false or changed, enterprises shall be supplemented, modified, however such supplemented materials, equipment must be in conformity with demand of project of manufacture of key mechanical products or key mechanical products.

c) Place for registering the List:

The Department of Customs under cities, provinces in which enterprises implement the manufacture of key mechanical products or implement the investment project of manufacture of key mechanical products or the nearest provincial-level Departments of Customs to the cities, provinces in which there is no Customs agency, Directors of the provincial-level Departments of Customs select and assign to a unit who has ability enough to implement the registration of the List of duty free imported goods.

In case the provincial-level Departments of Customs manage customs some provinces, then besides the above mentioned list registration unit, Directors of the provincial-level Departments of Customs shall consider and decide to assign to Branches of Customs to implement the management of customs in provincial area in which enterprises with investment project implement to register the List of materials, equipment under such provincial area.

2. When conducting customs formalities, declarer must hand in, show the following dossier to Customs agency:

a) Customs dossier according to current provisions;

b) Certification of the steering committee of key mechanical product program that the importer is the enterprise of manufacture of key mechanical products;

c) An official dispatch requesting for applying rate of the preferential import tax of 0% of the enterprises using imported materials, equipment; in which stating clearly type of material, equipment, price, customs declarations; in case there are many types of materials, equipment being of many customs declarations, the importer must list goods, customs declarations requesting for applying rate of the preferential import tax of 0%; committing to declare exactly, supply right dossier, and use right purpose.

d) On the basis of the above mentioned conditions, dossier, customs agency updates quantity, imported equipment, materials prices into the original copy of monitoring card of backward deduction of tax payer and signs for confirmation according to provisions, archives 01 copy of List of imported materials, equipment applied the preferential import tax of 0% and monitoring card of backward deduction in that write clearly quantity, value of import material, equipment were applied the preferential import tax of 0% together with import dossier. Where there is no longer imported materials, equipment in the List, leaders of Branches of Customs in which conduct final formalities confirm in the original copy of monitoring card of backward deduction of taxpayer, photo one copy to send to Department of Customs in which the List is registered for use as a basis for inspection after customs clearance of the use of imported materials and equipment applied the preferential import tax of 0%.

Article 3. Settlement of import, use of materials, equipment applied the preferential import tax of 0%

1. Enterprise which imports materials and equipment applied the preferential import tax of 0%, besides the use of such materials and equipment for the right purpose; is responsible for settlement of the implementation of import, the use of materials and equipment applied the preferential import tax of 0% according to List registered with customs agency of which enterprise registered the List for management, supervision, inspection to the implementation of import, the use of materials and equipment applied the preferential import tax of 0%.

2. Time-limit for settlement: Not later than 45 days since the date of finishing the manufacture of key mechanical products phase from 2009 to 2015, enterprises must conduct settlement with the customs agency in which enterprise registered the List of import and materials and equipment applied the import tax of 0% to serve for the manufacture of key mechanical products or for investment project for the manufacture of key mechanical products.

3. Contents of settlement:

3.1. The number of imported materials and equipment serving for the manufacture of key mechanical products or for investment project for the manufacture of key mechanical products;

3.2. Consumption norm of imported materials, equipment in reality;

3.3. The number of imported materials and equipment applied the import tax of 0% used for the manufacture of key mechanical products or for the investment project for the manufacture of key mechanical products;

3.4. The number of imported materials and equipment applied the import tax of 0% used for other purposes;

3.5. The number of key mechanical products manufactured or investment project of the manufacture of key mechanical products finished.

Article 4.Effect

1. This Circular takes effect after 45 days since the signing date.

2. This Circular annuls the Circular No.104/2010/TT-BTC of July 22, 2010 and clause 5, item II, Annex III issuing together with the Circular No.184/2010/TT-BTC of November 15, 2010 of the Ministry of Finance providing the tax rates of the export tariff, import tariff referenced according to the List of taxable items./.