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THE MINISTRY
OF TRADE
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SOCIALIST
REPUBLIC OF VIET NAM
Independence - Freedom – Happiness
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No. 09/1998/TT-BTM
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Hanoi, July 18,
1998
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CIRCULAR
GUIDING THE
DUTY-FREE IMPORT FOR INVESTMENT PROJECTS DEFINED IN DECREE No. 07/1998/ND-CP OF
JANUARY 15, 1998 OF THE GOVERNMENT DETAILING THE IMPLEMENTATION OF THE LAW ON
DOMESTIC INVESTMENT PROMOTION (AMENDED)
Pursuant
to Decree No. 95-CP of December 4, 1993 of the Government defining functions,
tasks, powers and organizational structure of the Ministry of Trade;
In furtherance of Article 37 of Decree No. 7/1998/ND-CP of January 15, 1998 of
the Government detailing the implementation of the Law on Domestic Investment
Promotion (amended);
The Ministry of Trade hereby guides duty-free import for investment projects
specified in the above-said Decree as follows:
A.
OBJECTS OF APPLICATION
This Circular shall apply to objects defined in
Article 3 of Decree No. 7/1998/ND-CP of January 15, 1998 of the Government
detailing the implementation of the Law on Domestic Investment Promotion
(amended), including:
1. Enterprises of various economic sectors:
- State enterprises.
- Enterprises of political, socio-political
organizations and professional societies.
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- Limited liability companies and joint stock
companies.
- Private enterprises.
- Individuals and business groups operating
under Decree No.66-HDBT of March 2, 1992 of the Council of Ministers (now the
Government).
2. Enterprises directly invested by Vietnamese
residing abroad.
3. Enterprises directly invested by foreigners
permanently residing in Vietnam.
4. Enterprises jointly set up by Vietnamese
citizens and Vietnamese residing abroad and/or foreigners permanently residing
in Vietnam.
5. Vietnamese organizations and citizens,
Vietnamese residing abroad and foreigners permanently residing in Vietnam that
buy shares or contribute capital to domestic enterprises, including State
enterprises allowed to diversify forms of ownership or investment funds with
financial autonomy.
Objects defined in Points 1, 2, 3, 4 and 5
above, shall be hereafter referred to as enterprises.
B.
STIPULATIONS ON DUTY-FREE GOODS IMPORTED TO CREATE FIXED ASSETS FOR LICENSED
INVESTMENT PROJECTS
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1. Machinery, equipment and transport means
defined in the technical-economic feasibility study reports, which are imported
to form fixed assets of the enterprises, including:
1.1. Machinery and equipment, including
electricity, water supply and drainage and information systems.
1.2. Specialized transport means included in
technological lines and specialized means of conveyance to be used for carrying
workers (cars of 24 seats or more), and water transport means.
The specialized transport means included in
technological lines shall include:
- Specialized transport means used for
production activities stipulated in the investment licenses.
- Transport means used for carrying raw
materials and products in technological lines.
1.3. Components, details, spare parts,
implements, models and accessories accompanied with the above-mentioned
equipment, machinery, specialized transport means and means of conveyance.
1.4. The above-mentioned equipment, machinery
and specialized transport means, which are imported for substitution, in-depth
investment, technological renovation or expansion of production scale.
1.5. Raw materials and materials imported for
the implementation of BOT, BTO and BT projects.
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1.7. Laboratory equipment, equipment in service
of the production of school equipment, medical equipment and equipment for
environmental protection.
1.8. Other goods and supplies used for projects
where investment is specially encouraged as stipulated by the Prime Minister.
2. Raw materials and supplies imported to form
enterprises' fixed assets shall be exempt from tax under the following
conditions:
2.1. Being raw materials imported for the
manufacture of machinery and equipment in Vietnam to form enterprises' fixed
assets.
2.2. Being raw materials and materials imported
for construction to form enterprise' fixed assets, if such raw materials and
supplies have not yet been produced in the country or have been domestically
produced but failed to meet the technical requirements of the projects.
Lists of such construction raw materials and
materials shall be announced annually by the specialized ministries.
3. Raw materials imported for projects' trial operation
before pre-acceptance test and for trial production according to the
explanation reports, which are considered, approved by the Ministry of Trade
case by case, based on the certification by the agency competent to decide
investment regarding their categories and quantities.
4. Raw materials, spare parts, accessories and
materials, which are imported for the production of export goods, shall be
subject to import tax when they are imported into Vietnam and when finished
products are exported, the import tax shall be refunded with the amount
corresponding the percentage of the export finished products. The import tax
reimbursement shall be made in accordance with the stipulations of the Ministry
of Finance in Circular No.43/1998/TT/BTC of April 4, 1998.
II. TIME-LIMIT FOR CONSIDERATION AND ISSUE OF
DOCUMENTS:
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2. If the dossiers are incomplete or invalid:
Within 5 working days after receiving dossiers, the Ministry of Trade shall
inform verbally or in writing the enterprises thereof so that the latter
supplement and/or readjust the dossiers. The date of receiving the complete and
valid dossiers shall be the date stamped on the final document of the Ministry
of Trade.
III. DOSSIER ON EVALUATION TO PERMIT THE IMPORT
AND CERTIFY DUTY-FREE IMPORT GOODS
1. The project owner's (enterprise's) written
proposal on the import and exemption of import tax.
2. Investment license or investment decision
issued by the competent level in accordance with the provisions of Article 7 of
the Regulation on the Management of Investment and Construction (issued
together with Decree No.42-CP of July 16, 1996 of the Government) and a number
of Articles amending and/or supplementing the Regulation on the Management of
Investment and Construction issued together with Decree No.42-CP of July 16,
1996 of the Government (issued together with Decree No.92-CP of August 23, 1997
of the Government).
3. The technical-economic feasibility study
report.
4. Decision of the level competent to decide
investment ratifying bid selection and bidding results (attached with a written
report on the analysis of the selection of bidders).
In cases where goods are imported by mode of
competitive offer, a decision ratifying the offer selection (attached with a
written report on the analysis of such selection) is required.
5. The original contract and attached
appendices.
6. Decision of the level competent to decide
investment, ratifying the contract's contents.
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Regarding lists of duty-free goods imported to
form fixed assets, the enterprises shall, basing themselves on the provisions
of Clause 1, Article 37 of Decree No. 7/1998/ND-CP of January 15, 1998 and
documents defined in this Section III, clearly state the goods' names,
quantities and value, for each of the following items:
- Machinery, equipment.
- Construction materials.
- Raw materials and materials for manufacture of
machinery and equipment in Vietnam.
- Raw materials and materials used for trial
production.
C.
TIME-LIMIT FOR APPLICATION
1. For projects with preferential investment
certificates granted before February 1st, 1998 (the date when the Government's
Decree No. 7/1998/ND-CP of January 15, 1998 takes effect), the import tax
exemption in the remaining grace period from February 1st, 1998 is prescribed
concretely as follows:
- They shall be exempt from import tax on goods
imported into Vietnam after February 1st, 1998.
- They shall be subject to import tax on goods
imported into Vietnam before February 1st, 1998.
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- Exempt from import tax on goods imported into
Vietnam from the date of issuance of the preferential investment certificates.
- Subject to import tax on goods imported into
Vietnam before the date of issuance of the preferential investment
certificates.
The date when the goods are imported into
Vietnam shall be the date written in customs declaration forms.
D.
IMPLEMENTATION PROVISIONS
1. The Ministry of Trade requests the
ministries, the ministerial-level agencies, the agencies attached to the
Government, the People's Committees of the provinces and cities directly under
the Central Government, the central bodies of the mass organizations to notify
the contents of this Circular to the enterprises under their respective
management for implementation, and at the same time, report to the Ministry of
Trade on any problems arising in the course of implementation for the prompt
and appropriate adjustment.
2. Enterprises having investment projects shall
have to comply with this Circular. Any problems arising in the course of
implementation shall be promptly reported to the Ministry of Trade for
appropriate amendments and supplements.
3. Officials and employees of the Ministry of
Trade shall have to strictly abide by the provisions of this Circular. Any
violations shall, depending on their seriousness, be handled administratively
or examined for penal liability in accordance with the provisions of law.
4. This Circular takes effect 15 days after its
signing.
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FOR THE MINISTER OF TRADE
VICE MINISTER
Mai Van Dau