Circular No. 09/2003/TT-BTM guiding the implementation of Decision No. 91/2003/QĐ-TTg dated May 9, 2003 of the Prime Minister on the application of tariff quotas for imported goods in Vietnam for the year 2004.

CIRCULAR

Guidelines for implementing Decision No. 91/2003/QĐ-TTg dated May 9, 2003 of the Government Chairman regarding the application of tariff quotas for imported goods in Vietnam for the year 2005

on the application of tariff quotas for imported goods in Vietnam for the year 2004

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Pursuant to Decree No. 57/1998/NĐ-CP dated July 31, 1998 of the Government detailing the implementation of the Law on Trade regarding export, import, processing, and agency sales of goods with foreign countries;

Pursuant to Decree No. 44/2001/NĐ-CP dated August 2, 2001 of the Government amending and supplementing certain articles of Decree No. 57/1998/NĐ-CP dated July 31, 1998 of the Government;

Pursuant to Decision No. 46/2001/QĐ-TTg dated April 4, 2001 of the Prime Minister on managing exports and imports of goods during the period 2001-2005;

Based on Decision No. 91/2003/QĐ-TTg dated May 9, 2003 of the Government Prime Minister on the application of quota tariffs for imported goods in Vietnam;

After exchanging opinions with the Ministry of Industry and the Ministry of Agriculture and Rural Development, the Ministry of Trade guides the implementation of Decision No. 91/2003/QĐ-TTg dated May 9, 2003 of the Prime Minister for the year 2004 as follows:

I. GENERAL PROVISIONS:

1. From January 1, 2004, apply tariff quotas for seven raw materials: tobacco leaves, salt, cotton, concentrated milk powder, non-concentrated milk, corn kernels, and poultry eggs according to the following details:

II. SUBJECTS TO BE ALLOCATED TARIFF QUOTAS:

The Ministry of Trade issues import licenses to traders meeting the conditions for importing goods under the tariff quota list, specifically as follows:

1. Tobacco Leaves:

Merchants holding production licenses for cigarettes issued by the Ministry of Industry and having a need to use a certain proportion of imported tobacco leaves for cigarette production in accordance with the annual import plan regulations of the Ministry of Industry.

The industry corporation acts as the focal point to receive quotas for its member companies.

2. Salt:

Traders with a need to use salt in production in compliance with the regulations of the relevant sectoral management ministry.

The industry corporation acts as the focal point to receive quotas for its member companies.

3. Cotton:

Traders holding business registration certificates with appropriate business activities and a need to import cotton.

The industry corporation acts as the focal point to receive quotas for its member companies.

4. Concentrated Milk Powder, Non-Concentrated Milk, Corn Kernels, and Poultry Eggs:

Merchants with business registration certificates for relevant industries who have a need to import these items.

III. ALLOCATION OF TARIFF QUOTAS:

1. Based on the quantity of tariff quotas announced by the Ministry of Trade for the year 2004 (for those items specified in Clause I and Clause III Point 2 of this Circular) and based on the balance between import results and the demand for tariff quota applications from merchants, the Ministry of Trade will consider issuing import permits under tariff quotas for merchants as stipulated in Clause II of this Circular.

2. The quantity of items allocated based on demand may be defined for the subsequent period. The Ministry of Trade will announce the quantity of tariff quotas (if applicable), at least three months before implementation, in a separate document after consultation with relevant ministries and agencies. The principle for determining the quantity of tariff quotas is based on balancing the need for raw materials and domestic production capacity.

IV. IMPLEMENTATION ORGANIZATION:

1. Merchants present import permits for goods under tariff quotas issued by the Ministry of Trade or authorized agencies when handling import procedures at customs checkpoints, and the quantity of goods imported must comply with the tariff quota import tax rate.

2. At the end of each quarter, merchants report their import situation to the Ministry of Trade (using Form 3 attached to this Circular).

Before September 30, 2004, merchants submit a report (replacing the third quarter report) to the Ministry of Trade assessing their ability to import throughout the year, requesting adjustments to increase or decrease the allocated quota or reporting the quantity of goods they cannot import so that the Ministry of Trade can allocate them to other merchants.

3. Traders granted import licenses by the Ministry of Trade may entrust other traders to import according to current regulations. It is strictly prohibited to buy, sell, or transfer tariff quotas.

4. Merchants eligible to import goods subject to tariff quota management as stipulated in Section I of this Circular, if they do not have a quota from the Ministry of Trade or have already imported the full quantity within the quota, may still import according to demand without applying for a permit from the Ministry of Trade but must pay the import tax outside the tariff quota as prescribed by the Ministry of Finance.

5. Merchants eligible to import goods subject to tariff quotas as stipulated in Clause I of this Circular, if they need to supplement or request new import quotas for raw materials to serve export production, should submit a tariff quota registration form to the Ministry of Trade to be considered for issuance of an import permit under the tariff quota. The tariff quota registration form must be confirmed by the relevant sectoral ministry (for salt and tobacco leaves) regarding the need for importation to serve export production.

6. Registration for tariff quotas for the year 2005:

Before October 30, 2004, merchants wishing to import the above items should submit a tariff quota registration form for the year 2005 to the Ministry of Trade using Form 1 attached to this Circular.

7. This Circular replaces Circular No. 04/2003/TT-BTM dated July 10, 2003, guiding the implementation of Decision No. 91/2003/QĐ-TTg dated May 9, 2003 of the Prime Minister.

This Circular and forms can be printed from the Ministry of Trade's website at www.mot.gov.vn.

This Circular takes effect fifteen days from the date of publication in the Official Gazette./.