THE
MINISTRY OF FINANCE
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SOCIALIST
REPUBLIC OF VIET NAM
Independence - Freedom - Happiness
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No.
78/2002/QD-BTC
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Hanoi,
June 10, 2002
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DECISION
PROMULGATING THE REGULATION ON PRINCIPLES AND METHODS FOR
CALCULATING THE COMBINED MOTORBIKE-MANUFACTURING AND -ASSEMBLING CAPACITY
THE MINISTER OF FINANCE
Pursuant to the Government’s
Decree No. 15/CP of March 2, 1993 on the tasks, powers and State management
responsibilities of the ministries and ministerial-level agencies;
Pursuant to the Government’s Decree No. 178/CP of October 28, 1994 on the
tasks, powers and organizational structure of the Ministry of Finance;
Pursuant to Clause 3, Article 2 of the Prime Minister’s Decision No.
38/2002/QD-TTg of March 14, 2002 on management of the manufacture, assembly and
import of motorbike components;
After consulting with ministries and branches;
At the proposal of the General Director of Tax,
DECIDES:
Article 1.-
To issue together with this Decision the Regulation on principles and methods
for calculating the combined motorbike-manufacturing and -assembling capacity.
Article 2.- This
Decision takes implementation effect after its signing. The General Director of
Tax, the director of the Ministry’s Office and the motorbike-manufacturing
and/or �assembling
enterprises shall have to implement this Decision.
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FOR THE FINANCE MINISTER
VICE MINISTER
Truong Chi Trung
REGULATION
ON PRINCIPLES AND METHODS FOR CALCULATING THE COMBINED
MOTORBIKE-MANUFACTURING AND -ASSEMBLING CAPACITY
(Issued together with the Finance Minister’s Decision No. 78/2002/QD-BTC of
June 10, 2002)
I. SUBJECTS
OF APPLICATION
All enterprises which make
investment in the manufacture and/or assembly of motorbikes and fully meet the
criteria set for motorbike-manufacturing and/or �assembling
enterprises by the Industry Ministry (excluding motorbike-manufacturing and/or �assembling foreign-invested
enterprises which strictly fulfill their responsibilities and obligations
prescribed in the investment licenses).
For those enterprises which
manufacture and/or assemble motorbikes for export, the quantity of motorbikes
manufactured and/or assembled for export shall not be controlled under the
guidance in this document.
II. MARKING
METHOD SERVING AS BASIS FOR DETERMINING THE COMBINED CAPACITY OF EACH
ENTERPRISE: THE COMBINED CAPACITY SHALL BE CALCULATED ON THE MAXIMUM SCALE OF
100 POINTS ON THE BASIS OF THE FOLLOWING CRITERIA
1. Investment
scale: shall be calculated on the maximum scale of 45 points, and points shall
be given according to the total investment capital on the following principles:
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- Investment of up to VND 10
billion: 10 points
- Investment of between over VND
10 billion and 15 billion: 15 points
- Investments of between over
VND 15 billion and 20 billion: 20 points
- Investments of between over
VND 20 billion and 25 billion: 25 points
- Investments of between over
VND 25 billion and 30 billion: 30 points
- Investments of VND over 30
billion: 35 points
Investment capital contributed
in cash to joint-ventures for the manufacture of motorbike components and
accessories shall be included into the investment capital in directly-manufacturing
machinery and equipment according to coefficient H = 0.5.
For example: Enterprise A
invests machinery and equipment valued at VND 10 billion in motorbike
manufacture and assembly. At the same time it has contributed a cash amount of
VND 5 billion to a joint-venture for the manufacture of motorbike components
and accessories. According to the above-said stipulation, the total investment
capital of Enterprise A shall be: VND 10 billion (machinery and equipment) +
VND 5 billion (investment capital contributed in cash to the joint-venture) x
0.5 = VND 12.5 billion.
b/ Workshops (excluding land
rents and land compensations), office equipment, infrastructure construction
(electricity, water supply and drainage, environmental sanitation,�): 10 points
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- Investment of between over VND
05 billion and 08 billion: 05 points
- Investment of between over VND
08 billion and 10 billion: 07 points
- Investment of over VND 10
billion: 10 points
Enterprises workshops
contributed as investment capital to joint-ventures in direct service of the
manufacture of motorbike components and accessories for implementation of their
localization programs shall also be included into the value of their workshops.
Those enterprises which
manufacture and/or deal in more than one type of products (including products
other than motorbike components and accessories), shall declare only the value
of machinery and equipment; for workshops, office equipment and constructed
infrastructure, directly involved in the manufacture of motorbike components
and accessories, if they can not be separated, the declaration thereof shall be
based on the ratio between the value of output of the manufactured motorbike
components and accessories and the total value of the output manufactured
and/or purchased by enterprises.
The above-said total investment
capital for motorbike manufacture and assembly shall be determined as a
residual value of the fixed assets being machinery, equipment and workshops and
the other total investment capital reflected on the enterprises accounting
books and vouchers at the time of registration for approval of the combined
capacity. (The period-end figures are calculated according to the enterprises
settlement reports at the time closest to the time of registration for
approval).
2.
Technologies, the advancedness and synchroneousness of machinery and equipment
directly involved in the manufacture shall be based on the value of each type
of machinery or equipment for calculation on the maximum scale of 30 points, of
which:
a/ Simple chain for motorbike
assembly: 03 points
- With a value of up to VND 02
billion: 01 point
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- With a value of over VND 03
billion or more: 03 points
b/ Machinery and equipment for
manufacture of frames and petrol tanks: 04 points
- With a value of up to VND 01
billion: 01 point
- With a value of between over
VND 01 billion and 02 billion: 02 points
- With a value of between over
VND 02 billion and 03 billion: 03 points
- With a value of over VND 03
billion: 04 points
c/ Machinery and equipment for
manufacture of plastic components and details (including pressing machines,
casting dies, painting and polishing equipment): 04 points
- With a value of up to VND 02
billion: 01 point
- With a value of between over
VND 02 billion and 3.5 billion: 02 points
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- With a value of over VND 05
billion: 04 points
d/ Machinery and equipment for
manufacture of aluminum or cast pig iron components and details such as hubs,
cylinders, sock absorber covers, crank covers, crank cases,: 05 points
- With a value of up to VND 02
billion: 02 points
- With a value of between over
VND 02 billion and 03 billion: 03 points
- With a value of between over
VND 03 billion and 04 billion: 04 points
- With a value of over VND 04
billion: 05 points
e/ Machinery and equipment for
engine manufacture and assembly: 05 points
- With a value of up to VND 02
billion: 02 points
- With a value of between over
VND 02 billion and 03 billion: 03 points
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- With a value of over VND 04
billion: 05 points
g/ Machinery and equipment for
shock absorber manufacture and assembly: 03 points
- With a value of up to VND 01
billion: 01 point
- With a value of between over
VND 01 billion and 02 billion: 02 points
- With a value of over VND 02
billion: 03 points
h/ Machinery and equipment for manufacture
of electric equipment (IC assembly, assorted light assemblies, ignition coils,
relays,in Group V on the list of percentages of motorbike components and
details, issued together with Joint-Circular No. 92/2001/TTLT-BTC-BCN-TCHQ of
November 20, 2001): 03 points
- With a value of up to VND 02
billion: 01 point
- With a value of between over
VND 02 billion and 03 billion: 02 points
- With a value of over VND 03
billion: 03 points
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- With a value of up to VND 02
billion: 01 point
- With a value of between over
VND 02 billion and 03 billion: 02 points
- With a value of VND 03
billion: 03 points
The value of machinery and
equipment shall be calculated according to the residual value of machinery and
equipment inscribed in the enterprises accounting books. (The period-end
figures are calculated according to the enterprises settlement reports at the
latest time). In cases where a machine or equipment is used in the manufacture
or assembly of various components and details, the declaration thereof shall be
made according to major components or details turned out by such machine or
equipment, or the enterprises may opt for which to declare if the major
components or details turned out by such machine or equipment can not be
identified.
3. The
localization rates achieved in the implementation registration year shall be
approved by the inter-branch working team (excluding those manufactured by
joint-ventures), calculated on the maximum scale of 10 points
- Localization rates of under
20%: 02 points
- Localization rates of between
20% and under 25%: 04 points
- Localization rates of between
25% and under 30%: 06 points
- Localization rates of between
30% and under 35%: 08 points
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4. The
localization rates achieved in the implementation year shall be approved by the
inter-branch working team, for engines with the enterprises direct investment
in the manufacture or assembly thereof, calculated on the maximum scale of 10
points
- Localization rates of under
25%: 03 points
- Localization rates of between
25% and under 30%: 05 points
- Localization rates of between
30% and under 35%: 07 points
- Localization rates of 35% or
more: 10 points
5.
Technological transfer, license contracts and technical training shall be
calculated on the maximum scale of 05 points
- Having technological transfer
contracts (for those motorbikes manufactured or assembled by enterprises): 02
points (regardless of the number of contracts)
- Having approved license
contracts (for those motorbikes manufactured or assembled by enterprises): 01
point (regardless of the number of contracts)
- Having technical- and
skill-training contracts and programs signed between foreign countries and
enterprises: 02 points.
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- Class-1 enterprises: getting
80 points or more
- Class-2 enterprises: getting
between 60 points and 79 points
- Class-3 enterprises: getting
between 40 points and 59 points
- Class-4 enterprises: getting
less than 40 points
III. METHODS
OF DETERMINING THE COMBINED CAPACITY FOR EACH ENTERPRISE
1. Basing itself on the
Government’s annual policy on management and administration of the total number
of imported motorbike component sets, the Ministry of Finance shall notify the
import quota for each enterprise on the following principles:
a/ 30% shall be distributed
equally to all enterprises permitted to manufacture and/or assemble motorbikes;
b/ 50% shall be additionally
distributed to class-1, class-2 and class-3 enterprises. Principles for
additional distribution of quotas to enterprises shall be specified as follows:
- Import quotas additionally
given to class-1 enterprises = S1 x 2
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- Import quotas additionally
given to class-3 enterprises = S1 x 1
Of which, S1 shall be calculated
according to the following formula:
S1
=
Total
number of component sets additionally distributed to class-1, class-2 and
class-3 enterprises
(Number
of class-1 enterprises x 2)
+
(Number
of class-2
enterprises x 1.5)
+
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c/ 20% for reserve to be distributed
as follows:
10% of reserve shall be
additionally distributed to enterprises which have been notified of import
quotas at the beginning of the year but obtained more points thanks to
investment in raising the achieved localization rates.
The remaining 10% shall be
distributed to enterprises which have just been supplementarily granted the
motorbike manufacture and/or assembly licenses after the import quotas have
been notified. In cases where there are no such enterprises, this reserve shall
be further distributed to enterprises, calculated according to the combined
capacity mentioned above.
2. Time for import-quota
distribution shall be determined as follows:
a/ The consideration for
additional distribution of import quotas to enterprises having obtained more
points shall be made in June every year together with the consideration for
application of tax preference policy under the provisions at Point 9, Section
IV of Joint-Circular No. 92/2001/TTLT-BTC-BCN-TCHQ of November 20, 2001. The
additional distribution shall be made on the above-said principles.
b/ The import quotas left by
October 31 every year, which have not yet been distributed, shall be
distributed to enterprises having capability and wishing to increase import
quotas for manufacture and assembly in the year; By November 10 every year at
the latest, the motorbike-manufacturing and/or �assembling
enterprises must make sum-up reports on the situation of their import,
manufacture, assembly and consumption of motorbikes to the end of October 31
(with certification of local tax departments) and send them to the Ministry of
Finance (the General Tax Department) for summing up and determining the
additional import quotas in order to notify the enterprises thereof. By
November 10 every year, those enterprises which fail to send their reports, or
which, by the end of October 31, have manufactured and/or assembled only less
than 70% of the announced quotas, shall not be considered for additional quota
distribution.
IV.
IMPLEMENTATION ORGANIZATION
1. Annually, together with the
registration for implementation of the tax preference policy, enterprises must
send to the Ministry of Finance reports on the situation of manufacture
investment, the achieved localization rates, license and technological transfer
contracts according to the provisions of Part II of this Regulation (enclosed
with relevant dossiers and vouchers,�)
so that the inter-branch working team shall consider and give points for each
enterprise. Basing itself on the reports and dossiers of registration for
implementation of the tax preference policy of each enterprise, the
inter-branch working team shall organize, consider and give points for each
enterprise together with the approval of the tax preference policy. On the basis
of the points given and the combined capacity determined by the inter-branch
working team, the Ministry of Finance shall announce the combined capacity of
each enterprise together with the preferential tax rates to be enjoyed by
enterprises according to the localization rates.
2. In the implementation
registration year, if enterprises have got more points thanks to the increased
investment in the first 2 quarters of the year and wish to increase the import
quotas, they must produce dossiers and reports on the increased investment
before May 31 so that the Ministry of Finance shall consider the additional
distribution of import quotas in June every year together with the
consideration for application of the tax preference policy according to the
provisions at Point 9, Section IV of Joint-Circular No. 92/TTLT-BTC-BCN-TCHQ of
November 20, 2001.
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FOR THE FINANCE MINISTER
VICE MINISTER
Truong Chi Trung