Circular No. 10/2004/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 2005.

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

concerning the application of tariff quotas for imported goods in Vietnam for the year 2005

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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 Government Chairman on managing exports and imports of goods during the period 2001-2003;

Pursuant to Decision No. 91/2003/QĐ-TTg dated May 9, 2003 of the Government Chairman dated May 9, 2003 of the Government Chairman on the application of tariff quotas for imported goods in Vietnam;

After exchanging opinions with the Ministry of Finance, 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 Government Chairman for the year 2005 as follows:

I. GENERAL PROVISIONS:

1. From January 1, 2005, apply tariff quotas for seven items: tobacco leaf, salt, cotton, concentrated milk powder, non-concentrated milk powder, corn kernels, and poultry eggs according to the following details:

2. The description of goods and 8-digit code for non-concentrated milk powder and concentrated milk powder are detailed in the Goods List for applying tariff quotas issued together with Decision No. 36/2004/QĐ-BTC dated April 15, 2004 of the Ministry of Finance.

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 leaf:

Traders holding production licenses for cigarettes issued by the Ministry of Industry and having a need to use a certain proportion of imported tobacco leaf for cigarette production in accordance with the annual import plan set by 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 powder, corn kernels, and poultry eggs:

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

III. ALLOCATION OF TARIFF QUOTAS:

1. Based on the quantity of tariff quotas for 2005 (for items with specified quantities such as salt and tobacco leaf) and taking into account the results of imports and the demand for tariff quotas from traders, the Ministry of Trade will consider issuing import licenses within the tariff quotas for traders listed in Part II of this Circular.

2. Items allocated based on demand may be subject to a defined quantity 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 sectors. The principle for determining the quantity of tariff quotas is based on balancing domestic raw material needs and production capacity.

IV. IMPLEMENTATION ORGANIZATION:

1. Traders must present import licenses 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 under the license shall enjoy the tariff rate within the tariff quota.

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

Before September 30, 2005, traders submit a report (replacing the third quarter report) to the Ministry of Trade assessing their ability to import for the entire year, requesting adjustments to the allocated quotas or reporting quantities of goods they cannot import so that the Ministry of Trade can allocate them to other traders.

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. Traders eligible to import goods subject to tariff quotas as stipulated in Section I of this Circular who have not yet received quotas from the Ministry of Trade or have exhausted their quota still may import according to demand without needing to apply for a license from the Ministry of Trade but must pay the import tax outside the tariff quota as prescribed by the Ministry of Finance.

5. Traders eligible to import goods subject to tariff quotas as stipulated in Part II of this Circular who wish to request additional or new quotas for importing raw materials to serve production for export should submit a tariff quota registration form to the Ministry of Trade for consideration and issuance of an import license within the tariff quota. The tariff quota registration form must include confirmation from the relevant sectoral management ministry (for salt and tobacco leaf) regarding the need for imports to serve export production.

6. Registration of tariff quotas for 2006:

Before October 30, 2005, traders wishing to import the above items should submit a tariff quota registration form for 2006 to the Ministry of Trade using Form 1 attached to this Circular.

7. This Circular takes effect 15 days after publication in the Official Gazette and replaces Circular No. 09/2003/TT-BTM dated December 15, 2003 of the Ministry of Trade guiding the implementation of Decision No. 91/2003/QĐ-TTg dated May 9, 2003 of the Government Chairman on the application of tariff quotas for imported goods in Vietnam for the year 2004.

The forms accompanying this Circular can be printed from the website of the Ministry of Trade at the address: www.mot.gov.vn/.