Decision No. 04/2002/QD-BTC On the determination of preferential import tax rates for certain machinery and equipment specifically used for underground coal mining and materials and equipment for the production and assembly of such machinery and equipment

Pursuant to …;

Regarding the determination of preferential import tax rates for certain machinery and equipment specifically used for underground coal mining explosion prevention and certain materials and equipment for producing and assembling such machinery and equipment

THE MINISTER OF FINANCE

Pursuant to Decree No. 15/CP dated March 2, 1993 of the Government on the tasks, powers, and responsibilities for state management of ministries and ministerial-level agencies;

BASED ON DECREE NO. 178/CP DATED OCTOBER 28, 1994 OF THE GOVERNMENT ON THE TASKS, POWERS AND ORGANIZATIONAL STRUCTURE OF THE MINISTRY OF FINANCE;

Pursuant to the tariff rate framework stipulated in the Import Tariff Schedule according to the List of Taxable Commodity Groups issued together with Resolution No. 63/NQ-UBTVQH10 dated October 10, 1998 of the Standing Committee of the National Assembly, Tenth Session;

Pursuant to Article 1 of Decree No. 94/1998/NĐ-CP dated November 17, 1998 of the Government detailing the implementation of the Law Amending and Supplementing Certain Provisions of the Law on Export Tax and Import Tax No. 04/1998/QH10 dated May 20, 1998;

After considering the opinions of relevant Ministries and Sectors and based on the proposal of the General Director of the General Department of Taxation;

DECISION:

Article 1:Apply a preferential import tax rate of 0% (zero percent) for certain machinery and equipment specifically used for underground coal mining explosion prevention and certain materials and equipment for producing and assembling such machinery and equipment, provided that they meet the following conditions:

- Listed in the Appendix attached hereto;

- Not produced domestically (confirmed by the Ministry of Industry);

- Imported for installation in underground mines for coal mining purposes, or for production and assembly of machinery and equipment installed and used in underground mines; - Imported by Vietnam National Coal Corporation and its affiliated enterprises;

Article 2: The commodity code according to the Tariff Schedule for machinery and equipment specifically used for underground coal mining explosion prevention and certain materials and equipment for producing and assembling such machinery and equipment specified in this Decision shall apply only to the items clearly named in the Appendix attached hereto, not to all items under the same commodity code.

Article 3: Annually, the Ministry of Finance will review and adjust the import tax rates for the items specified in Article 1 of this Decision, in accordance with domestic production capacity and international commitments on taxes.

Article 4: Vietnam National Coal Corporation must bear full responsibility for the importation and proper use of machinery and equipment specifically used for underground coal mining explosion prevention and certain materials and equipment for producing and assembling such machinery and equipment. The provision of a separate import tax rate for machinery and equipment specifically used for underground coal mining explosion prevention and certain materials and equipment for producing and assembling such machinery and equipment shall be implemented no later than December 31, 2005.

Within three months from the date of actual importation of goods subject to the preferential import tax rate of 0% (zero percent) as stipulated in this Decision, Vietnam National Coal Corporation must report to the Customs Authority (at the place of importation) the situation regarding the importation and use of machinery and equipment specifically used for underground coal mining explosion prevention and materials and equipment for producing and assembling such machinery and equipment which have been imported and subject to the preferential import tax rate of 0% (zero percent). In case of violation, the preferential import tax rate stipulated in this Decision will not be applied but the applicable import tax rate under the current Preferential Tariff Schedule will be applied instead..

Cases of improper use will result in back payment of import tax and penalties in accordance with the provisions of the Tariff Schedule and the Law on Export Tax and Import Tax.

Article 5: This Decision replaces Decision No. 166/2000/QĐ/BTC dated October 17, 2000 of the Minister of Finance concerning the determination of import tax rates for certain machinery and equipment specifically used for underground coal mining explosion prevention.

THIS DECISION SHALL TAKE EFFECT 15 DAYS FROM THE DATE OF SIGNATURE.