Joint Circular No. 04/2001/TTLT/BTC-TCHQ guiding the concentration, management, and payment of export and import taxes into the State budget through the State Treasury

JOINT CIRCULAR

Guidelines for Concentrating, Managing Collection, and Paying Import and Export Taxes into the State Budget through the State Treasury

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Implementing Decree No. 87/CP dated December 19, 1996 of the Government on detailed regulations regarding decentralization, budget preparation, implementation, and settlement, the Ministry of Finance issued Circular No. 41/1998/TT-BTC dated March 31, 1998 guiding the system of concentrating and managing state budget revenues through the State Treasury, and Circular No. 12/1999/TT-BTC dated February 1, 1999 guiding amendments and supplements to some points in Circular No. 41/1998/TT-BTC. To ensure full and timely concentration of state budget revenues and unify the management of collection and payment of import and export taxes, the Ministry of Finance and General Department of Customs have stipulated procedures, formalities, and responsibilities of the State Treasury and Customs in the work of concentrating and managing tax revenues from imports and exports into the state budget through the State Treasury as follows:

I. GENERAL PROVISIONS

1\. The tax and other revenue items prescribed in this Circular include export tax, import tax, value-added tax on imported goods, special consumption tax on imported goods, personal income tax, price differential, and other revenues of Customs under the prescribed regime (collectively referred to as import and export taxes) at border gates, airports, ports (collectively referred to as customs checkpoints) throughout the territory of the Socialist Republic of Vietnam.

2\. All import and export tax revenues must be paid into the state budget through the State Treasury. Import and export taxes may be paid in Vietnamese dong or foreign currency in cash, bank drafts, or transfer as specified in Circular No. 41/1998/TT-BTC dated March 31, 1998 of the Ministry of Finance.

3\. The collection and payment of import and export taxes at customs checkpoints shall be carried out directly through the State Treasury. In cases where customs checkpoints cannot organize State Treasury transaction points (due to lack of office space or existing office space that does not ensure safety, with few and irregular revenues), the Customs authority shall directly collect and promptly pay into the State Treasury.

4\. The document for paying money into the state budget for import and export taxes is the receipt for payment into the state budget. In cases where the Customs authority directly collects or the payer cannot issue a receipt for payment into the state budget, the Customs authority shall use a receipt when collecting taxes and write a receipt when paying money into the State Treasury.

Receipts for payment into the state budget and receipts for collecting import and export taxes are uniformly printed, issued, and managed by the Ministry of Finance (General Tax Department) according to current regulations.

II\. SPECIFIC REGULATIONS

A\. PROCEDURES AND FORMALITIES FOR COLLECTING AND PAYING IMPORT AND EXPORT TAXES

1\. Collecting and paying import and export taxes at the State Treasury headquarters

Procedures and formalities are implemented according to Circular No. 41/1998/TT-BTC dated March 31, 1998 and Circular No. 12/1999/TT-BTC dated February 1, 1999 of the Ministry of Finance. Specifically as follows:

a\. Notification of collection: Based on the amount of tax and other revenues payable to the state budget declared by the taxpayer on the declaration form for exported and imported goods, the Customs authority will conduct inspections, issue collection notifications, and send the amounts due to the taxpayer. The notification of collection must clearly specify each item to be paid and according to the correct chapter, type, section, sub-section of the State Budget Revenue Schedule.

Depending on the nature of each item to be paid, the Customs authority immediately determines the deposit account on the collection notification based on the principle:

- Immediate payments into the state budget are deposited into Account 741 "State Budget Revenues". - Temporary hold payments are deposited into Account 921 "Temporary Hold Pending Resolution".

b\. Receipt for payment into the state budget: Implemented according to the model of the receipt for payment into the state budget in cash or by transfer as specified in Circular No. 12/1999/TT-BTC dated February 1, 1999 of the Ministry of Finance.

c\. Based on the content of the receipt for payment into the state budget in cash or by transfer submitted by the taxpayer, bank, or Customs authority, the State Treasury organizes the collection and accounting, and distributes state budget revenues among levels of the budget according to the prescribed ratio and current state budget schedule.

In case the receipt for payment into the state budget contains errors regarding the state budget schedule, the State Treasury staff has the responsibility to coordinate with Customs staff and the taxpayer to adjust it correctly and pay it into the state budget in a timely manner.

2\. Collecting and paying import and export taxes at the State Treasury collection point

- Based on the tax amount determined in the collection notification of the Customs authority or the declaration form for exported and imported goods, the taxpayer prepares five copies of the receipt for payment into the state budget in cash or bank draft according to the model specified in Circular No. 12/1999/TT-BTC dated February 1, 1999 of the Ministry of Finance: one copy retained, four remaining copies brought to the State Treasury collection point at the customs checkpoint to pay into the state budget.

- Upon receiving four copies of the receipt for payment from the payer, the accountant at the State Treasury collection point checks the content of the document and transfers it directly to the cashier to collect the money.

- The cashier rechecks the copies of the receipt for payment, requests the payer to fill out a classification list of money, proceeds to collect the money, record it in the cash book, sign and stamp "Money Collected" on the copies of the receipt for payment; then returns them to the accountant.

- The accountant signs and stamps the collection point on the copies of the receipt for payment and processes them as follows:

+ Copy 3 is returned to the payer; Copy 4 is sent to the Customs authority at the customs checkpoint;

+ The remaining copies (Copies 2 and 5) are kept at the State Treasury collection point on the day of collection as the basis for preparing the receipt for payment list (Model No. 01/BK-TNS attached). The receipt for payment list is prepared in three copies: one copy retained at the collection point; one copy handed over to the Customs authority at the customs checkpoint; one copy attached with the collection documents retained at the State Treasury authority.

- Based on the receipt for payment into the state budget confirmed by the State Treasury, the Customs authority compares it with the customs declaration form to process the release of goods or payment of tax arrears for the payer.

- At the end of the day, customs officers at the border gate and treasury collection staff at the State Treasury directly manage the reconciliation and sign confirmation on the payment list. Based on the signed and confirmed payment list along with the receipt voucher and the collected amount for the day, the process of submitting money to the State Treasury under direct management shall be carried out according to the current regulations.

* In cases where goods at border gates mainly consist of non-trade goods, small-scale trade, luggage, etc., the collection procedure shall be as follows:

- Based on the notice of collection or declaration form of imported/exported goods, customs officers at the border gate issue three copies of the receipt: copy 3 retained as stub, the remaining two copies directly transferred to the treasury collection staff.

- Treasury collection staff base on the receipt, collect money from the payer, record it in the fund ledger; sign the receipt and return it to the customs officer.

- Customs officers at the border gate hand over copy 2 of the tax receipt to the payer together with the declaration form for receiving goods procedures; copy 1 serves as the basis for compiling the receipt list (model number 02/BK-TNS attached).

- At the end of the day, customs officers at the border gate and the accountant at the treasury collection point reconcile and sign confirmation on the receipt list. The receipt list is compiled into three copies: one copy kept with copy 1 of the receipt retained by the customs authority; one copy kept at the treasury collection point; one copy serves as the basis for issuing the payment voucher to the state budget. Daily or no later than five days, customs authorities base on the receipt list to issue the payment voucher to the state budget; the treasury collection point transfers the payment voucher (with the receipt list attached) and the collected amount to the State Treasury under direct management.

- Based on the payment voucher and the amount transferred back by the collection point, the State Treasury processes the entry of funds and records the state budget revenue according to the current regulations.

3/ Collection and Payment of Import and Export Duties Directly Through Customs Authorities

Customs authorities use the receipt to directly collect import and export duties from payers. Periodically, based on the duty receipts, customs authorities compile detailed receipt lists (Model number 03/BK-TNS attached) and write cash payment vouchers to the state budget to submit all collected amounts to the State Treasury according to the prescribed regulations.

Customs authorities base on the collection situation; distance and transportation conditions from the border gate to the State Treasury,... specifically each locality to coordinate with the State Treasury to determine the periodic submission of collected import and export duties to the State Treasury (daily or no later than ten days). Customs authorities only submit collected import and export duties to the State Treasury headquarters, not at collection points outside the State Treasury headquarters.

B/ DUTIES AND LIMITATIONS OF CUSTOMS AUTHORITIES AND STATE TREASURY IN THE CONCENTRATION AND MANAGEMENT OF IMPORT AND EXPORT DUTY COLLECTION

1/ Customs Authorities

1.1/ Timely issue notices of collection and guide payers to prepare payment vouchers to the state budget according to the prescribed regulations.

1.2/ Directly organize the collection of import and export duties at border gates where treasury collection points have not been established and submit them to the state budget according to point 3, Section A, Part II of this Circular.

1.3/ Create favorable conditions for the establishment of working locations and equipment and cooperate with the State Treasury to ensure the safety of state assets and funds at treasury collection points at border gates.

1.4/ Periodically (monthly, quarterly, annually), based on the collection vouchers already signed and stamped by the State Treasury, customs authorities compile reports on import and export duty collection in their jurisdiction, reconcile with the State Treasury, ensuring accurate matching. During the reconciliation process, if discrepancies occur, both parties must promptly check and reconcile the collection vouchers and notify relevant units to adjust erroneous figures according to accounting regulations.

1.5/ Organize accounting work, accounting entries, and prepare accounting reports and settlements according to prescribed regulations.

2/ State Treasury

2.1/ Coordinate with customs authorities in the jurisdiction in establishing direct transaction points through the State Treasury in places meeting the conditions as stated in point 1.3, clause 1, Section B above.

2.2/ Fully and promptly concentrate all import and export duty revenues into the state budget (including those collected directly by customs authorities) and allocate the revenues among different levels of the budget according to the prescribed ratios.

2.3/ Provincial and centrally-administered city treasuries inform customs authorities in their jurisdiction of the sample stamp and signature of treasury staff at transaction points for verification and transactions.

2.4/ Periodically (monthly, quarterly, annually), the State Treasury coordinates with provincial and centrally-administered city customs authorities to reconcile import and export duty revenues, ensuring accurate matching between the two sectors (as mentioned in point 1.4, Section B, Part II above).

2.5/ Organize accounting work, accounting entries, and prepare reports according to prescribed regulations.

III. IMPLEMENTATION

1/ This Circular takes effect from the date of issuance.

2/ Customs authorities, State Treasuries, and related organizations and individuals are responsible for strictly implementing the import and export duty collection and payment regulations stipulated in this Circular. If units or individuals violate these regulations, they will be dealt with according to current laws. Periodically (quarterly, semi-annually, annually), customs authorities and State Treasuries shall coordinate to evaluate the results of import and export duty collection and payment work and the operation of inter-departmental collection points in their jurisdictions.

3/ In cases where localities apply information technology to centralize and manage state budget revenues with separate collection and payment procedures, they must develop a proposal and report to the Ministry of Finance and General Department of Customs for review and approval.

During implementation, if difficulties arise, they should be reported promptly to the Ministry of Finance (Central State Treasury) and the General Department of Customs for coordination and resolution.