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THE
MINISTRY OF FINANCE
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SOCIALIST REPUBLIC OF VIET NAM
Independence - Freedom - Happiness
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No.
45/2005/TT-BTC
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Hanoi, June 6, 2005
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CIRCULAR
GUIDING THE
IMPLEMENTATION OF THE GOVERNMENT’S DECREE No. 78/2003/ND-CP OF JULY 1, 2003,
DECREE No. 151/2004/ND-CP OF AUGUST 5, 2004, DECREE No. 213/2004/ND-CP OF
DECEMBER 24, 2004, AND DECREE No. 13/2005/ND-CP OF FEBRUARY 3, 2005,
PROMULGATING VIETNAM’S LIST OF GOODS AND THEIR TAX RATES FOR THE IMPLEMENTATION
OF THE ASEAN COUNTRIES’ AGREEMENT ON COMMON EFFECTIVE PREFERENTIAL TARIFFS
(CEPT)
In furtherance of the
Protocol on the Socialist Republic of Vietnam’s accession to the Agreement on
Common Effective Preferential Tariffs (CEPT) Scheme for the ASEAN Free Trade
Area (AFTA) (hereinafter called the CEPT/AFTA Agreement), concluded on December
15, 1995 in Bangkok;
In furtherance of the Government’s Decree No. 78/2003/ND-CP of July 1,
2003, Decree No. 151/2004/ND-CP of August 5, 2004, Decree No. 213/2004/ND-CP of
December 24, 2004, and Decree No. 13/2005/ND-CP of February 3, 2005,
promulgating Vietnam’s list of goods and their tax rates for the implementation
of the CEPT/AFTA Agreement;
The Ministry of Finance hereby guides the implementation thereof as follows:
I. APPLICATION SCOPE AND
CONDITIONS
1. Import goods, to be eligible
for the application of CEPT particularly preferential import tax rates
(hereinafter referred to as CEPT tax rates for short), as defined in Article 1
of the Government’s Decree No. 78/2003/ND-CP of July 1, 2003, Decree No.
151/2004/ND-CP of August 5, 2004, Decree No. 213/2004/ND-CP of December 24,
2004, and Decree No. 13/2005/ND-CP of February 3, 2005, must satisfy the
following conditions:
1.1. Being on Vietnam’s list of
goods and their tax rates for the implementation of the CEPT/AFTA Agreement,
promulgated together with the Government’s Decree No. 78/2003/ND-CP of July 1,
2003, Decree No. 151/2004/ND-CP of August 5, 2004, Decree No. 213/2004/ND-CP of
December 24, 2004, and Decree No. 13/2005/ND-CP of February 3, 2005.
1.2. Being imported into Vietnam from the ASEAN countries, including the following countries:
- Brunei Darussalam;
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- The Republic of Indonesia;
- The Lao People’s Democratic
Republic;
- Malaysia;
- The Federation of Myanmar;
- The Republic of Philippines;
- The Republic of Singapore; and
- The Kingdom of Thailand;
1.3. Satisfying the ASEAN-origin
requirement, certified by certificates of ASEAN goods origin – Form D (C/O –
form D for short), as prescribed in Part III of this Circular.
1.4. Being transported directly
to Vietnam from exporting countries being ASEAN members as prescribed in the
Trade Minister’s Decision No. 1420/2004/QD-BTM of October 4, 2004.
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II. APPLICABLE IMPORT TAX
RATES
1. The import tax rates
applicable to import goods eligible for the application of CEPT tax rates as
prescribed in Part I of this Circular shall be CEPT tax rates for each year,
which are correspondingly specified in CEPT tax rate column for that year in
Vietnam’s list of goods and their tax rates for the implementation of the
CEPT/AFTA Agreement, promulgated together with the Government’s Decree No.
78/2003/ND-CP of July 1, 2003, Decree No. 151/2004/ND-CP of August 5, 2004,
Decree No. 213/2004/ND-CP of December 24, 2004, and Decree No. 13/2005/ND-CP of
February 3, 2005.
2. For goods on the lists of
goods and tax rates, promulgated together with the Government’s Decree No.
78/2003/ND-CP of July 1, 2003, Decree No. 151/2004/ND-CP of August 5, 2004,
Decree No. 213/2004/ND-CP of December 24, 2004, and Decree No. 13/2005/ND-CP of
February 3, 2005, which provide only the schedule for implementation of CEPT
tax rates until 2006, the CEPT tax rates applicable to subsequent years shall
be CEPT tax rates of 2006 prescribed in the above-said decrees, unless
otherwise provided for by the Government.
3. In cases where the
preferential import tax rate (MFN tax rate) of one goods item specified in the
current Preferential Import Tariff is adjusted to be lower than the CEPT tax
rate, the import tax rate applicable to such goods item shall be the MFN tax
rate.
If the MFN tax rate of such
goods item specified in the Preferential Import Tariff is adjusted to be higher
than the CEPT tax rate, the applicable import tax rate shall be the CEPT tax
rate.
4. In cases where goods imported
by enterprises for production and/or assembly of mechanical, electrical and
electronic products meet both the conditions for the application of the CEPT
tax rates and the conditions for the application of import tax rates according
to the localization rate under the current regulations, the enterprises may
choose to enjoy the tax rates according to the localization rate or the CEPT
tax rates, concretely as follows:
Where enterprises choose to
apply tax rates according to the localization rate, upon importation of parts
or incomplete part assemblies, enterprises shall apply the sole tax rate
according to the localization rate to the whole list of imported parts or
incomplete part assemblies, though the list contains some parts eligible for
application of CEPT tax rates.
Where enterprises choose to
apply CEPT tax rates, parts or incomplete part assemblies eligible for
application of CEPT tax rates shall enjoy such CEPT tax rates, while other
parts and part assemblies shall enjoy preferential import tax rates (MFN tax
rates) or ordinary tax rates.
5. Parts and spare parts of
automobile CKD component sets imported from many sources (countries of origin)
and in many different shipments shall be subject to the application of CEPT tax
rates prescribed for automobile CKD component sets, provided that one or many
separate commercial invoices can be produced for parts or spare parts expected
to apply CEPT tax rates, apart from the conditions specified in Part I of this
Circular.
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The application of CEPT tax rates
shall be effected when import procedures are carried out for each specific
shipment. The procedures for settlement of import tax with customs offices
shall comply with current regulations.
6. CEPT tax rates applicable to
goods processed by export processing enterprises for domestic enterprises shall
be the CEPT tax rates of imported processed goods specified in the list of
goods and CEPT tax rates, promulgated together with the Government’s Decree No.
78/2003/ND-CP of July 1, 2003, Decree No. 151/2004/ND-CP of August 5, 2004,
Decree No. 213/2004/ND-CP of December 24, 2004, and Decree No. 13/2005/ND-CP of
February 3, 2005.
7. In case of changes in the
goods items in legal documents promulgated by the ASEAN countries for the
implementation of the CEPT/AFTA Agreement, that affect Vietnam’s right to
enjoy CEPT tax rates as provided for in Part I, the Ministry of Finance
shall provide appropriate guidance on a case-by-case basis.
III. CERTIFICATES OF ORIGIN
AND EXAMINATION OF CERTIFICATES OF ORIGIN
1. The rules for goods to be
recognized as originating from ASEAN countries are defined in the Regulation on
granting of Vietnam’s certificates of ASEAN goods origin - Form D, promulgated
together with the Trade Minister’s Decision No. 1420/2004/QD-BTM of October 4,
2004 and Decision No. 151/2005/QD-BTM of January 27, 2005.
2. The certificates of origin
must bear signatures and seals compatible with the official specimen signatures
and seals of the following agencies of ASEAN member countries, which are
competent to grant certificates of ASEAN goods origin – Form D:
- In Brunei Darussalam: The
Ministry of Industry and Natural Resources;
- In the Kingdom of Cambodia: The Ministry of Trade;
- In the Republic of Indonesia: The Ministry of Trade and Industry;
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- In Malaysia: The Ministry of
Foreign Trade and Industry;
- In the Federation of Myanmar: The Ministry of Trade;
- In the Republic of Philippines: The Ministry of Finance;
- In the Republic of Singapore: The Customs; and,
- In the Kingdom of Thailand: The Ministry of Trade.
3. C/O Form D for goods sold by
export processing enterprises to the domestic market or processed by export
processing enterprises for enterprises in the domestic market must bear
signatures and seals compatible with the official specimen signatures and seals
of regional export and import management offices or management boards of
industrial parks or export processing zones authorized by the Trade Ministry.
4. Particularly, C/O Form D for
imports, which are on the lists of goods promulgated together with the
Government’s Decree No. 213/2004/ND-CP of December 24, 2004 (other than goods
processed by export processing enterprises for enterprises in the domestic
market) and stated in customs declarations of imports registered with the
customs offices in the period from January 1, 2004 to the effective date of
this Circular, shall have their validity extended for not more than two (02)
years as from the date of registration of customs declarations.
The time limit for producing C/O
Form D to the customs offices shall comply with the Trade Minister’s Decision
No. 1420/2004/QD-BTM of October 4, 2004 and Decision No. 151/2005/QD-BTM of
January 27, 2005.
5. In case of suspicion of the
truthfulness and accuracy of the certificates of ASEAN goods origin - Form D,
the customs offices shall be entitled:
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- To stop the application of
CEPT tax rates and temporarily collect tax at the rates specified in the
current preferential or ordinary import tariff.
- To request importers to
provide additional documents (if any) to prove that their goods actually
originate from ASEAN countries, within 01 (one) year.
- Pending the re-examination
results, to continue filling in the procedures for the release of goods
according to the ordinary import regulations.
- When having enough documents
to evidence the goods’ ASEAN origin, the customs offices shall have to carry
out procedures for returning to the importers the differences between the tax
amounts temporarily collected according to the current preferential or ordinary
import tariff and the tax amounts calculated at the CEPT tax rates.
Procedures for requesting the
re-examination shall comply with the provisions of the Regulation on the
granting of Vietnam’s certificates of ASEAN goods origin – Form D, promulgated
together with the Trade Minister’s Decision No. 1420/2004/QD-BTM of October 4,
2004 and Decision No. 151/2005/QD-BTM of January 27, 2005.
IV. OTHER PROVISIONS
1. Enterprises importing goods
on the list of goods promulgated together with the Government’s Decree No.
213/2004/ND-CP of December 24, 2004 and stated in customs declarations of
imports registered with the customs offices in the period from January 1, 2004
to the effective date of this Circular may additionally submit C/O Form D and
relevant documents according to current law provisions to serve as a basis for
re-calculating payable import tax. Enterprises shall be reimbursed the
difference between the already paid import tax amounts and the import tax
amounts calculated at CEPT tax rates if they satisfy the conditions specified
in Part I of this Circular. In cases where enterprises have failed to pay
import tax according to notices of customs offices and are imposed fines for
late tax payment, they shall pay import tax and late payment fines re-calculated
according to the above-said CEPT tax rates.
Enterprises shall have to
additionally submit
C/O Form D and other relevant documents for completion of procedures for
re-calculating payable import tax amounts no later than December 31,
2005.
2. The regulations on tax
calculation bases, the regimes of tax collection, payment, exemption, reduction
and reimbursement, the handling of violations and other regulations shall
comply with the provisions of the Law on Export Tax and Import Tax and current
guiding documents.
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This Circular takes effect 15
days after its publication in “CONG BAO” and replaces the Finance Ministry’s
Circular No. 64/2003/TT-BTC of July 1, 2003, Official Letter No. 9493/TC-HTQT
of September 12, 2003, Official Letter No. 736/TC-HTQT of January 19, 2004,
Official Letter No. 3932/TC-HTQT of April 15, 2004, and Official Letter No.
5127/TC-HTQT of May 14, 2004.
Any difficulties or problems
arising in the course of implementation should be promptly reported to the
Ministry of Finance for appropriate additional guidance.
FOR
THE FINANCE MINISTER
VICE MINISTER
Le Thi Bang Tam