Circular No. 137/1998/TT-BTC guiding temporarily the import of goods with aid funds for projects implemented by Vietnamese enterprises

CIRCULAR

Provisional guidance on the importation of goods using aid funds for projects implemented by Vietnamese enterprises
Vietnam implements

Pursuant to Decree No. 87/CP dated August 5, 1997 of the Government on the issuance of the Regulation on management and use of Official Development Assistance;

Pursuant to Decision No. 20 TC/KBNN dated January 17, 1996 of the Ministry of Finance on the issuance of the regulation on tendering procurement of equipment, tools, and working means for state agencies, armed forces, mass organizations, and state-owned enterprises;

In order to strictly manage, follow regulations, and prevent tax evasion in the importation of goods using aid funds for projects implemented by Vietnamese enterprises, the Ministry of Finance provides provisional administrative procedures for the importation of goods using aid funds for projects implemented by Vietnamese enterprises as follows:

II- SUPPORT MEASURES FOR STATE-OWNED AGRICULTURAL FARMS AND FORESTRY COMPANIES IN THE FIELD OF SCIENCE AND TECHNOLOGY

Article 1. The subjects of this Circular are programs and non-repayable aid projects that organize tendering procurement of equipment in Vietnam.

Article 2. Non-repayable aid is a source of the state budget, therefore, the use of non-repayable aid funds to import equipment for aid projects must be carried out according to the project documentation and tendering procedures for state agencies, armed forces, mass organizations, and state-owned enterprises issued pursuant to Decision No. 20 TC/KBNN dated January 17, 1996 of the Minister of Finance, and the provisions of this Circular.

Article 3. Materials, equipment, and imported goods using aid funds must comply with the Agreement, project documentation, and programs agreed upon and signed between the Government of Vietnam and the donor organization. For automobiles, motorcycles, and other restricted imports, approval from the Prime Minister is required.

II - SPECIFIC PROVISIONS

Article 1. Tendering Implementation: In addition to implementing the regulations on tendering procurement of equipment, tools, and working means for state agencies, armed forces, mass organizations, and state-owned enterprises issued pursuant to Decision No. 20 TC/KBNN dated January 17, 1996 of the Minister of Finance, the tendering for the importation of materials, equipment, and goods using aid funds must also comply with the following provisions:

The financial agency representative in the tender evaluation committee specified in Clause 4.1 of the tendering regulation attached to Decision No. 20 TC/KBNN dated January 17, 1996 is the representative of the International Aid Management and Reception Board - Ministry of Finance or the Financial Accounting Department (or Administrative Financial Management Department) of the central ministry managing agency.

When announcing the tender, it must publicly and clearly disclose the bidding price as not including indirect taxes for the imported materials and equipment to implement the project.

Article 2. During the import process: The project owner is responsible for guiding the winning bidder to comply with the following provisions:

Article 2.1. In the case of importing complete sets of goods for aid projects:

On the import documents (including commercial invoices, transport invoices, packing lists, certificates of origin...), the winning enterprises must request foreign suppliers to clearly indicate that the goods are for aid projects. Specifically, all these documents must have a separate section for notification (Notify) clearly stating the name of the entity using the goods.

Article 2.2. In the case where goods for aid projects are imported together with regular trade goods:

When purchasing goods from abroad, the winning bidder must request the supplier to issue two separate commercial invoices for the goods for aid projects and regular trade goods. The commercial invoice for the goods for aid projects must also have a separate section for notification (Notify) clearly stating the name of the entity using the goods.

Article 2.3. In the case of designated tendering at the request of the donor, the enterprises designated to bid must also comply with the requirements set forth in Points 2.1 and 2.2 above when importing goods.

Article 3. Documents for confirmation of aid goods:

In addition to the documents stipulated in Circular No. 30 TC/VT dated June 12, 1997 of the Ministry of Finance, to obtain confirmation of aid goods, the following documents are required: - Minutes of the tender results and decision recognizing the winning bidder (if applicable);

The supply contract signed between the Project Management Board (project owner) and the winning bidder (the bid price in the Contract must clearly state that it does not include indirect taxes payable for imported goods).

Foreign trade contract (if importing directly) or Entrusted Import Contract (if entrusting import).

In the case of designated tendering, only the purchase contract signed between the Project Management Board and the designated bidder, accompanied by a letter from the Project Management Board recognizing the designated bidder, is required.

Article 4. Declaration of aid goods confirmation:

The declaration of aid goods confirmation is completed on the day the enterprise receives the import documents. The project owner is the person who signs the declaration of aid goods confirmation.

III- IMPLEMENTATION PROVISIONS

This Circular takes effect fifteen days from the date of signature. During implementation, if there are any difficulties, relevant ministries, sectors, localities, units, and project owners should promptly report to the Ministry of Finance (International Aid Management and Reception Board) for resolution./.