Circular No. 106/1998/TT-BTC guides the period during which import duties are not paid for imported raw materials and supplies used to produce export goods.

CIRCULAR

OF THE MINISTRY OF FINANCE NUMBER 106/1998/TT-BTC ON JULY 23, 1998
GUIDELINES FOR TEMPORARY NON-PAYMENT OF IMPORT DUTIES FOR
RAW MATERIALS AND INPUTS IMPORTED FOR PRODUCTION OF EXPORT GOODS

Pursuant to Article 8 of the Decree No. 10/1998/NĐ-CP dated January 23, 1998 of the Government on certain measures to encourage and ensure foreign direct investment activities in Vietnam; Pursuant to Item I of Resolution No. 02/1998/NQ-CP dated January 26, 1998 of the Government on policies and measures to encourage exports;

Pursuant to the opinion of the Prime Minister in Circular No. 775/CP-KTTH dated July 10, 1998;

To be consistent with the actual situation of import and export activities, to encourage and create favorable conditions to enhance efficiency and accelerate exports, after reaching consensus with relevant ministries and sectors, the Ministry of Finance hereby guides enterprises on the period for temporary non-payment of import duties for raw materials and inputs imported for production of export goods as follows:

Enterprises (Vietnamese enterprises, foreign-invested enterprises) importing raw materials and inputs to produce export products are entitled to temporarily not pay import duties within a period of 9 (nine) months from the date they receive the official tax notification from customs authorities regarding the amount of duty payable. During this temporary non-payment period, if an enterprise has actually exported products, it is exempted from paying import duties for raw materials and inputs corresponding to the quantity of products already exported. If beyond the temporary non-payment period (9 months), an enterprise has not yet actually exported products, it must pay import duties; when there are actual exports, the paid import duties will be refunded.

Procedures and authority for handling non-collection of import duties and refunding import duties shall be carried out in accordance with Circulars No. 72A TC/TCT dated August 30, 1993; No. 53 TC/TCT dated July 13, 1995; and No. 84/1997/TT-BTC dated November 13, 1997 of the Ministry of Finance.

This Circular takes effect for import declarations registered with customs authorities from July 1, 1998.

The General Department of Customs shall guide local Customs Bureaus to uniformly implement this Circular.