Circular No. 06-TC/TCT stipulates and guides the application of export tax rates and import tax rates for complete equipment and individual components.

CIRCULAR

OF THE MINISTRY OF FINANCE NUMBER 06-TC/TCT DATED JANUARY 19, 1993 ON THE APPLICATION AND GUIDELINES FOR THE COLLECTION OF EXPORT TAX AND IMPORT TAX RATES FOR COMPLETE SETS OF EQUIPMENT AND INDIVIDUAL ITEMS OF EQUIPMENT

BASED ON Decision No. 91/TTg dated November 13, 1992 of the Prime Minister on the importation of complete sets of equipment and individual items of equipment with state budget funds;
BASED ON the authority stipulated in Article 3 of Decision No. 359-HĐBT dated September 29, 1992 of the Council of Ministers on the amendment and supplementation of the Export Tax Schedule and Import Tax Schedule dated March 31, 1992;
After reaching consensus through discussions with the Ministry of Trade, General Department of Customs, State Committee for Science, Technology and Environment, the Ministry of Finance hereby provides specific guidelines for calculating and collecting export tax and import tax on complete sets of equipment and individual items of equipment as follows:

The application of export tax rates and import tax rates to consignments of complete sets of equipment or individual items of equipment will not follow the general principle of searching the current Tariff Schedule but will be based on the tax rate applicable to the main machinery and equipment in that consignment.

1. Complete sets of equipment here refer to a collection of machinery and equipment belonging to Chapter 84 or Chapter 85 of the Import Tariff promulgated together with Decree No. 110/HĐBT, intended for exclusive use in a project or construction with specific technological installations, having economic and technical parameters described and specified in the project design, approved by competent state authorities, and must be imported as a complete set through a specific contract for use in that project or construction, with all specific contents considered as goods under the complete set of equipment as defined in Decision No. 91/TTg dated November 13, 1992 of the Prime Minister.

In cases where a complete set of equipment for a project or construction is only partially implemented or implemented in separate phases at different times without being imported as a complete set in one go according to the contract, the unit must be inspected and officially approved in writing by the Ministry of Trade.

2. Equipment of a production line, a power plant of a factory, or a production workshop is understood as individual pieces of equipment or machinery that have been shaped during manufacturing and sold with specific standards required for the production line or power plant to operate normally, and must also be imported as a complete set according to a specific contract for use in that production line or power plant.

In cases where individual machines or equipment of a production line are imported separately or exceed the necessary standard quantities, they shall not be considered as individual items of equipment of the production line or power plant station and shall not apply the tax rate of the main equipment of the production line or power plant, but must be classified into the specific chapter, group, or sub-group of the item in the Tariff Schedule.

3. For materials, raw materials, fuels, and transportation means (such as gasoline, diesel, iron, steel, automobiles...), if imported along with individual items of equipment of a production line or power plant, they shall not apply the export tax rate or import tax rate of the main equipment according to the principle mentioned above, but must be classified into the specific chapter, group, or sub-group of the item in the Export Tariff and Import Tariff to calculate and collect export tax and import tax.

4. Necessary documents for complete sets of equipment and individual items of equipment for customs authorities to consider applying export tax rates and import tax rates include:

- Export and import contracts signed by the unit with foreign parties accompanied by a list of machinery and equipment to be imported for a specific project or construction (in case of agency imports, there must be an agency export and import contract), approved and stamped by the Ministry of Trade.

- Economic and technical justification or feasibility study report on the design work or detailed drawings of the production line or power plant, or a detailed description of the project or construction to be installed, the production line to be operated.

- Import permit issued by the Ministry of Trade clearly stating that the consignment is a complete set of equipment for a project or construction or individual items of equipment for a production line or power plant of a specific factory or production workshop.

- Approval document from the Ministry of Trade agreeing to implement a partial or phased complete set of equipment (if imported not as a complete set according to the signed contract).

Based on the specific documents mentioned above and the actual exported or imported goods of the unit, the customs authority handling the export or import procedures for the consignment will calculate and collect export and import taxes for each specific shipment and maintain a record of the actual exports and imports of the unit.

Upon completion of the export or import contract for complete sets of equipment or individual items of equipment, the unit must consolidate and report the final settlement of the actual imports to the customs authority. Based on the unit's final settlement report and the record of actual exports and imports, the customs authority will calculate the corresponding export and import taxes for the quantity of goods actually exported or imported by the unit.

5. All machinery and equipment that do not fall under the definition of complete sets of equipment or individual items of equipment as stated above must be taxed according to the specific chapter, group, or sub-group of the item in the tariff schedule. In cases where units or individuals are found to have fraudulent declarations, tax evasion, or intentionally misapplied tax rates, they will be punished according to Articles 20, 21, and 22 of the Law on Export Tax and Import Tax adopted by the National Assembly on December 26, 1991.

This Circular takes effect from February 1, 1993. Any issues encountered during implementation should be reported to the Ministry of Finance for timely resolution.