Circular No. 1269-TC/TCT regarding the handling of import tax exemption for goods imported with ODA funds from the French Government according to the Financial Protocol of 1996.

LETTER

DECISION OF THE MINISTRY OF FINANCE NO. 1269 TC/TCT DATED APRIL 22, 1997
ON THE PROCEDURE FOR EXEMPTING IMPORT DUTIES ON GOODS IMPORTED WITH ODA FUNDS FROM THE GOVERNMENT OF FRANCE
PURSUANT TO THE FINANCIAL AGREEMENT DECREE IN 1996

Dear General Department of Customs:

Pursuant to the guidance of the Prime Minister in document No. 462/QHQT dated January 28, 1997 regarding the results of signing the Financial Agreement Protocol 1996 with France;

Pursuant to the letter No. 1077 BKH/KTĐN dated February 24, 1997 of the Ministry of Planning and Investment on implementing the use of French aid in 1996;

The Ministry of Finance guides the procedure for exempting import duties on goods and equipment of projects using ODA funds from the Government of France according to the Financial Agreement in 1996 as follows:

1. Equipment and machinery (including transportation means recorded in the project approved by competent authorities) imported with ODA funds from the Financial Agreement signed between the Government of Vietnam and the Government of France in 1996 (signed on December 5, 1996) to implement projects as stated in the Financial Agreement shall be exempted from import duties. Details of the projects are attached as Appendix.

Special consumption tax (if applicable) must be paid in full according to the current regulations of Decree No. 97/CP dated December 27, 1995 of the Government detailing the implementation of the Law on Special Consumption Tax and the Laws amending and supplementing certain articles of the Law on Special Consumption Tax; and Circular No. 98 TC/TCT dated December 30, 1995 of the Ministry of Finance guiding the implementation of Decree No. 97/CP mentioned above.

2. Documents required to be considered for exemption of import duties:

- A letter requesting exemption from the project implementation unit.

- Purchase contract for goods signed between the French supplier and the Vietnamese buyer; In cases where imports are made with ODA loans but the Vietnamese side does not sign a contract with the French supplier and is allowed to purchase goods from a third party, additional confirmation of the contract and confirmation of payment under the contract with ODA funds from the French side must be provided, approved according to Decision No. 91/TTg dated November 13, 1992 of the Prime Minister and the guidelines of the Ministry of Trade on managing imports of machinery and equipment with state budget funds.

- A letter from the Ministry of Trade permitting the import of equipment and machinery for the project, clearly stating that this equipment is imported with ODA funds according to the Financial Agreement for fiscal year 1996 of the Government of France.

- Import declaration form with customs inspection confirmation by the customs office at the port of entry.

Local Customs Bureau (where the goods are imported) shall process the procedures for exempting import duties for each specific shipment based on the above provisions.

The Ministry of Finance requests the General Department of Customs to instruct local Customs Bureaus to implement uniformly. Every six months and annually, the General Department of Customs shall compile and report statistics on the situation of exempting import duties for this category.

Projects using ODA funds according to the Financial Agreements between the Governments of Vietnam and France in previous fiscal years shall also be implemented uniformly according to the provisions of this document.

Any difficulties encountered during implementation within the jurisdiction of the Ministry of Finance should be reported to the Ministry of Finance by the General Department of Customs for timely consideration and resolution.

ANNEX

(Attached to the letter No. 1269 TC/TCT dated April 22, 1997 of the Ministry of Finance)