Circular No. 101/2015/TT-BTC supplements the list of groups of goods and preferential import tax rates for raw materials, components, spare parts, and auxiliary parts to produce key information technology (IT) products under Chapter 98 of the Preferential Import Tariff Schedule issued together with Circular No. 164/2013/TT-BTC dated November 15, 2013, of the Minister of Finance.

CIRCULAR

Supplement the list of groups of goods and preferential import tax rates for raw materials, components, and auxiliary parts to produce key Information Technology (IT) products under Chapter 98 of the Preferential Import Tariff Schedule issued together with Circular No. 164/2013/TT-BTC dated November 15, 2013, of the Minister of Finance.

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Pursuant to the Law on Export Tax and Import Tax dated June 14, 2005;

On the basis of Decision No. 295/2007/NQ-UBTVQH12 dated September 28, 2007, on issuing the Export Tariff according to the list of taxable goods and tariff ranges for each group of goods, the Preferential Import Tariff according to the list of taxable goods and preferential tariff ranges for each group of goods;

Pursuant to Decree No. 87/2010/NĐ-CP dated August 13, 2010 of the Government detailing certain provisions of the Law on Export Duties and Import Duties;

Pursuant to Decree No. 215/2013/NĐ-CP dated December 23, 2013 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;

At the request of the Director of the Tax Policy Department,

The Minister of Finance issues this Circular to amend the preferential import tax rates for goods made of iron or steel under HS Code 7326.90.99 and to supplement and amend the list of groups of goods and preferential import tax rates for raw materials, components, and auxiliary parts to produce key IT products under Chapter 98 of the Preferential Import Tariff Schedule issued together with Circular No. 164/2013/TT-BTC dated November 15, 2013, of the Minister of Finance.

Article 1. Amend the preferential import tax rates for goods made of iron or steel under HS Code 7326.90.99 in the Preferential Import Tariff Schedule.

Amend the preferential import tax rates for goods made of iron or steel under HS Code 7326.90.99 in the Preferential Import Tariff Schedule accompanying Circular No. 164/2013/TT-BTC dated November 15, 2013, of the Minister of Finance, which issued the Export Tariff and the Preferential Import Tariff according to the list of taxable goods as follows:

Article 2. Amend and supplement Section I - Explanations and Conditions for Applying Special Preferential Import Tax Rates for Raw Materials, Components, and Auxiliary Parts to Produce Key Information Technology (IT) Products under Chapter 98

1. Add Clause b.8 to Point 3 - Methods of Classification, Conditions for Applying Special Preferential Import Tax Rates, Settlement of Imports, and Usage under Section I - Explanations and Conditions for Applying Special Preferential Import Tax Rates at Chapter 98 as follows:

“b.8. Goods imported under Group 98.34:

b.8.1) Conditions for application:

- Goods imported are raw materials, components, and auxiliary parts to produce key IT products under HS Code 7326.90.99.

- Imported by enterprises producing key IT products.

b.8.2) Import procedures:

b.8.2.1 - Responsibilities of the declarant:

Enterprises must register the list of imported goods as raw materials, components, and auxiliary parts to produce key IT products under HS Code 7326.90.99 with the customs authority with annual import quantities consistent with production capacity/usage needs for annual production and assembly of the factory.

The declarant must submit the Registration List of raw materials, components, and auxiliary parts to produce key IT products under HS Code 7326.90.99 (List) with the most convenient Customs Sub-Department before importing the first consignment under the List. The application dossier for the issuing customs authority includes:

- Confirmation from the Ministry of Information and Communications regarding the List of goods;

- A letter requesting issuance of the List;

- The List of goods and the Reconciliation Form.

In case the registered List needs to be amended or supplemented, the declarant may make such changes provided that they submit relevant documents to the registering customs authority before the first importation or before importing subsequent consignments with amendments or supplements to the List to prove that the changes are appropriate. The application dossier for the issuing customs authority to amend or supplement the List includes:

- A letter requesting amendment or supplementation of the List;

- The List of goods and the Reconciliation Form for amendment or supplementation.

In case the List and the Reconciliation Form are lost, the declarant must submit an application dossier to the original issuing customs authority including:

- A letter requesting reissue of the List stating: reasons for loss of the List and Reconciliation Form; Names, quantities, values of goods listed in the List; Names, quantities, values of actually imported goods according to the List; Names, quantities, values of remaining goods not yet imported according to the List;

- All customs declarations for the quantity of goods already imported according to the List;

- The original List and Reconciliation Form issued by the customs authority handling the last importation before loss (one copy with confirmation from the customs authority where the import was made);

The declarant must undertake legal responsibility for the accuracy of the declarations above.

When handling customs procedures, the declarant must submit the following documents to the issuing customs authority:

- Customs documents as prescribed;

- A letter requesting application of special preferential import tax rates under Chapter 98 by the enterprise using the Import List; specifying types of raw materials, components, and auxiliary parts, value, customs declaration for imported goods; if there are multiple types of raw materials, components, and auxiliary parts under multiple customs declarations for imported goods, then list all types of goods and customs declarations for imported goods requesting application of special preferential import tax rates under Chapter 98; commit to accurate declaration, provision of correct documents, and proper usage.

Annually, no later than the 90th day after the end of the fiscal year, the declarant must submit a report on the use of raw materials, components, and auxiliary parts to produce key IT products to apply special preferential import tax rates under HS Code 9834.12.90 for the fiscal year to the customs authority in accordance with Article 41 of Decree No. 08/2015/NĐ-CP dated January 21, 2015, of the Government.

b.8.2.2 - Responsibilities of the customs authority:

b.8.2.2.1 - When receiving the List:

- Immediately after the declarant submits the application, the Customs Sub-department where the declarant has registered the List shall be responsible for checking, issuing a tracking form, stamping confirmation on two copies of the List of imported goods and one copy of the tracking form (retaining one original copy of the List, handing over to the declarant one original copy of the List along with one original copy of the tracking form to present to the customs authority handling the import procedures for tax calculation and deferred deduction when processing actual import customs procedures) in accordance with the regulations.

- In cases where the declarant needs to change or supplement the List and the tracking form, the Customs Sub-department where the declarant has registered the List shall be responsible for checking, issuing a tracking form, stamping confirmation on two copies of the changed or supplemented List of imported goods and one copy of the changed or supplemented tracking form (retaining one original copy of the List, handing over to the declarant one original copy of the List along with one original copy of the tracking form to present to the customs authority handling the import procedures for actual import goods when processing customs procedures) in accordance with the regulations.

- In cases where the declarant loses the List and the Tracking Form: based on the declarant's request and confirmation from other local Customs Bureaus, the customs authority where the declarant has registered the List shall check specifically and reissue the List of goods, the Tracking Form for raw materials, components, spare parts, and auxiliary parts for producing key IT products under HS code 7326.90.99 that have not yet been imported.

b.8.2.2.2 - When handling import procedures:

In addition to the customs procedures as prescribed, the customs authority shall base on the customs declaration file, compare with the tracking form to deduct deferred raw materials, components, spare parts, and auxiliary parts for producing key IT products under HS code 7326.90.99 that the declarant has actually imported and sign confirmation according to the regulations. Retain one copy of the List and the tracking form that have been deducted in the customs declaration file.

Upon completion of the quantity of imported goods recorded in the tracking form, the Head of the Customs Sub-department where the final procedures were processed shall confirm "all goods under List number... have been imported" on the original tracking form of the declarant and retain one copy, hand over one copy to the declarant and send the original to the Customs Sub-department that issued the tracking form for post-clearance inspection in accordance with the regulations.

In cases where the Customs Sub-department receiving the registration of the List is also the Customs Sub-department handling the import procedures for goods, after the Head of the Sub-department has confirmed the completion of the quantity of imported goods in the tracking form, the Sub-department shall retain the original, hand over one copy to the declarant, transfer one copy of the tracking form along with the registration file to the post-clearance inspection Sub-department for post-clearance inspection in accordance with the regulations.

b.8.2.2.3 - After receiving the original tracking form sent by the Customs Sub-department where the final procedures were processed, the Customs Sub-department that registered the List and issued the tracking form shall collect all registration files and transfer them to the post-clearance inspection Sub-department as the basis for post-clearance inspection in accordance with the risk management regulations regarding the use of imported goods subject to a specific preferential tariff rate under HS code 9834.12.90 as stipulated in Article 98 of Decree No. 08/2015/NĐ-CP dated January 21, 2015 of the Government.

2. In cases of incorrect use of purpose, the preferential tariff rate specified at HS code 7326.90.99 in Chapter 97 of the time of registering the Import Declaration with the customs authority shall be applied.

Article 3. Amend and supplement Item II - List of commodity groups and preferential import tariff rates under Chapter 98.

Amend and supplement the raw materials, components, spare parts, and accessories made of iron or steel for the production of key ICT products in Item II - List of commodity groups and preferential import tariff rates under Chapter 98 as follows:

Article 4. Effectiveness

This Circular takes effect from August 13, 2015./.