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THE MINISTRY OF TRANSPORTATION AND
COMMUNICATIONS
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SOCIALIST REPUBLIC OF VIET NAM
Independence - Freedom - Happiness
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No: 3277/2002/QD-BGTVT
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Hanoi, October 10, 2002
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CIRCULAR
GUIDING EXPORT TAX, IMPORT TAX AND VALUE ADDED TAX ON GOODS SOLD TO
FOREIGN TRADERS BUT DELIVERED TO OTHER ENTERPRISES BASED IN VIETNAM AND DESIGNATED BY FOREIGN TRADERS FOR USE AS RAW MATERIALS FOR EXPORT GOODS PRODUCTION
AND/OR PROCESSING
Pursuant to the December 26, 1991
Import and Export Tax Law, the July 5, 1993 Law and May 20, 1998 Law No.
04/1998/QH10 amending and supplementing a number of articles of the Import and
Export Tax Law; the Governments Decree No. 54/CP of August 28, 1993 and Decree No.
94/1998/ND-CP of November 17, 1998 detailing the implementation of the December
26, 1991 Import and Export Tax Law and the Laws amending and supplementing a
number of articles thereof;
Pursuant to the Value Added Tax (VAT) Law; the Governments Decree No.79/2000/ND-CP of
December 29, 2000 detailing the implementation of the VAT Law and Decree
No.76/2002/ND-CP of September 13, 2002 amending and supplementing a number of
articles of the Governments Decree No.79/2000/ND-CP;
Following the Prime Ministers directions in Document No.660/CP-KTTH of June 14, 2002 on
taxes on on-spot export and import goods;
The Finance Ministry hereby guides the export tax, import tax and VAT on
goods sold to foreign traders but delivered to other enterprises based in
Vietnam and designated by foreign traders for use as raw materials for export
goods production and/or processing as follows:
I. OBJECTS OF APPLICATION
Goods produced and sold by
Vietnam-based enterprises (including Vietnamese enterprises and
foreign-invested enterprises) to foreign traders under foreign trade contracts,
which are paid for by foreign traders in foreign currencies but delivered to
other Vietnam-based enterprises designated by such foreign traders for further
production and/or processing of export goods.
II. A NUMBER OF WORDS AND PHRASES
REFERRED TO IN THIS CIRCULAR SHALL BE CONSTRUED AS FOLLOWS
- On-spot export means that goods
produced in Vietnam for sale to foreign traders but delivered to other
enterprises based in Vietnam and designated by foreign traders.
- On-spot exporting enterprises mean
enterprises engaged in on-spot export activities.
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III. CONDITIONS FOR ENTITLEMENT TO
THE TAX POLICY GUIDED IN THIS CIRCULAR
- On-spot goods export and import
shall be effected under foreign trade contracts signed with foreign traders,
which clearly state goods categories and quantities, names and addresses of
goods-receiving enterprises in Vietnam.
- Foreign traders must pay for
on-spot exports in freely- convertible foreign currencies via banks.
- Enterprises must open customs
declarations for on-spot export-import goods.
- Goods produced by on-spot
exporting enterprises (which are foreign-invested ones) must be those specified
in their investment licenses.
IV. APPLICABLE TAXES
1. VAT: On-spot export goods shall enjoy
the VAT rate of 0%.
1.1. On-spot exporting enterprises
must produce to local tax offices all the following dossiers:
- The added value invoices already
handed to the on-spot importing enterprises upon goods delivery, which must be
inscribed clearly with the names of the foreign traders and on-spot importing
enterprises receiving goods (importing establishments) as well as the
goods-delivery places in Vietnam.
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- The vouchers of payment for
on-spot exports by foreign traders via banks and in freely- convertible foreign
currencies.
- On-spot export-import goods
declarations.
In cases where on- spot export
establishments fail to fully submit the above-mentioned procedural dossiers,
they shall not be eligible for the application of the nought-percent VAT rate
and must pay VAT under the provisions of the VAT Law as for the
domestically-sold goods.
1.2. On-spot importing enterprises
shall pay VAT under the guidance in the Finance Ministrys Circular No.122/2000/TT-BTC of
December 29, 2000 and Circular No.82/2002/TT-BTC of September 18, 2001, which
guide the implementation of the Governments Decree No.79/2000/ND-CP of December 29, 2000 and Decree
No.76/2002/ND-CP of September 13, 2002. Particularly for goods imported on the
spot for use as raw materials for export goods production and/or processing,
they shall not be liable to VAT under the guidance at Point 21, Section II,
Part A of the above-mentioned Circular No.122/2000/TT-BTC of December 29, 2000.
On-spot importing enterprises must produce to the customs offices where they
carry out on-spot import procedures the following dossiers:
- Import contracts made according to
the provisions of the Commercial Law and signed with foreign traders. The
contracts must clearly state the goods names and categories consistent to the
goods of on-spot exporting enterprises.
- On-spot export-import goods
declarations.
- Contracts on goods export to, or
goods processing for, foreign traders.
- Commercial invoices.
- Written registrations of the
import of supplies and/or raw materials for export goods production and/or
processing for foreign countries, including supplies and/or raw materials
imported on the spot.
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3. Import tax:
3.1. Enterprises importing supplies
and/or raw materials for on-spot export goods production shall, after
completing the on-spot export procedures, be considered for import tax
reimbursement for the supplies and/or raw materials volumes corresponding to
on-spot export products.
Procedural dossiers for
consideration of import tax reimbursement: Apart from the procedural dossiers
stipulated at Point 1.1 above, enterprises must submit the following:
- Official dispatches requesting
import tax reimbursement for supplies and/or raw materials already imported for
on-spot exports production, concretely explaining the volumes and value of
imported raw materials and/or supplies used for the production of goods sold to
foreign customers, which must be consistent to the export goods categories and
volumes in the on-spot export goods declarations, covering the following
contents: the serial numbers of the import goods declarations; the goods
categories and volumes, the value of imported raw materials and/or supplies;
the volumes of already exported products; the already paid import tax amounts
and the import tax amounts requested for reimbursement;
- Written explanations on the actual
consumption norms of the imported raw materials and/or supplies for the
production of a unit product for on -sport export by enterprises and the
enterprise directors shall be accountable for the legality, accuracy and
truthfulness of those reports;
- Customs declarations on import
goods for raw materials and/or supplies; import goods trading contracts;
- Tax notices and import tax-payment
receipts;
- Foreign trade contracts signed
with foreign traders in strict compliance with the provisions of the Commercial
Law, which clearly state the goods categories and volumes as well as the names
and addresses of goods-receiving enterprises in Vietnam;
- Import contracts signed between
foreign traders and on-spot importing enterprises; on-spot export and import
goods declarations (stamped and certified as true copies by the directors of
the on-spot importing enterprises).
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As soon as their products have been
exported on the spot, enterprises eligible for import tax reimbursement may
send import tax-reimbursement dossiers to the customs offices (where they have
filled in the procedures for import of raw materials and/or supplies) so as to
be considered for import tax reimbursement.
Basing themselves on the
above-prescribed dossiers, the provincial/municipal Customs Departments shall
consider and issue decisions on import tax reimbursement.
For raw materials and/or supplies
imported for export goods production, if products are actually exported within
the prescribed tax payment time limit, the import tax shall not be paid for the
volume of raw materials and/or supplies corresponding to the goods volume
actually exported. The dossiers for consideration of non-collection of tax
shall comply with the provisions on tax reimbursement dossiers; particularly,
the tax-payment receipts, shall be replaced with official tax notices of
customs offices.
3.2. The on-spot importing
enterprises must carry out the procedures for registration of the on-spot
import goods declaration, tax calculation and payment, strictly according to
the provisions of the Export and Import Tax Law and the current guiding
documents.
V. HANDLING OF VIOLATIONS
In cases where on-spot importing
enterprises do not use on-spot import goods as raw materials for export goods
production but sell them or use them for other purposes:
- Regarding VAT: They must declare
and pay VAT to the tax offices directly managing them. The time limit for VAT
declaration and calculation shall be counted from the month the goods sold or
used for other purposes. The VAT calculation prices shall be the sale prices
without VAT. If the goods are not sold but used for other purposes, the VAT
calculation prices shall be the sans-VAT sale prices of goods of the same kind
on the market.
- Regarding import tax: They must
declare and pay the import tax to the customs offices (where they have filled
in the import procedures for the goods lots). The time limit for retrospective
tax payment declaration shall be 2 (two) days from the date of changing the
goods use purposes as inscribed in the related documents, vouchers and
invoices. In case of unavailability of vouchers to determine the date of
changing the goods use purposes, the day for retrospective tax collection shall
be the day of registering the on-spot export-import goods declarations.
If on-spot importing enterprises
fail to declare and pay VAT and import tax for goods sold or used for other
purposes, they shall, apart from paying fully the tax amounts prescribed by the
Export and Import Tax Law and VAT Law, depending on the nature and seriousness
of their violations, be sanctioned for acts of tax fraudulence according to
current regulations.
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This Circular takes effect 15 days
after its signing. Particularly for the VAT-related guidance in this Circular,
it shall apply as from January 1st, 2002. Regarding the procedural dossiers for
VAT handling for cases arising between January 1st, 2002 and the effective date
of this Circular, enterprises shall not have to produce the on-spot
export-import goods declarations (except for foreign-invested enterprises).
All documents providing guidance on
export tax, import tax and VAT applicable to on-spot export and import goods,
which are contrary to the provisions of this Circular, are hereby annulled.
The ministries, the
ministerial-level agencies, the agencies attached to the Government, the Peoples Committees of the provinces and
centrally-run cities are requested to coordinate with one another in directing
the strict implementation of the above guidance. Should any problems arise in
the course of implementation, agencies and units are requested to report them
to the Finance Ministry for settlement.