This circular of the Ministry of Finance guides on applying import tariffs for color television sets according to the CEPT/AFTA Agreement, specifying a reduction schedule from 2003 to 2006 and guiding methods for calculating taxable value as well as cases of importing components to implement localization policies.
Đối tượng áp dụng
Toshiba Vietnam Consumer Products Limited Liability Company
Các điểm cốt lõi
- Color televisions are subject to a CEPT tariff rate of 20% starting in 2003, reducing to 5% by 2006 (Article 1).
- The taxable value for color televisions is based on the contract if it meets certain conditions; where lower than the verified price, proof of the veracity of the contract price must be provided (Article 2).
- If a business imports components to assemble complete products, CEPT tariff rates apply to all components or higher tariffs are paid according to the tariff schedule if eligibility criteria are not met (Article 3).
- Businesses registering for localization policies must uniformly apply preferential tax rates based on the degree of localization for all imported components (Article 3).
- If a business does not register for localization, it must pay taxes at the highest rate for each item imported and apply CEPT to items meeting eligibility criteria (Article 3).
🌐 Tác động xã hội từ văn bản này
- Manufacturers of color televisions benefit from reduced import tariffs according to the schedule.
- Consumers can purchase electronic products at lower prices due to decreased input costs.
- Applying CEPT requires businesses to prove the veracity of contract prices.
❓ Câu hỏi thường gặp
When was the CEPT tariff rate applied for color televisions?
Starting in 2003 with a tariff rate of 20%, reducing to 5% by 2006.
What conditions determine the taxable value for color televisions?
Based on the contract if it meets certain conditions; where lower than the verified price, proof of the veracity of the contract price must be provided.
How is the CEPT tariff rate applied when a business imports components to assemble complete products?
The CEPT tariff rate applies to all imported components or higher tariffs are paid according to the tariff schedule if eligibility criteria are not met.
What preferential tax rates must businesses applying for localization policies uniformly apply?
A uniform preferential tax rate based on the degree of localization is applied to all imported components.
How must a business pay taxes if it does not register for localization policies?
Taxes are paid at the highest rate for each item imported and CEPT applies to items meeting eligibility criteria.
Toàn văn
LETTER
OF THE MINISTRY OF FINANCE NO. 14028 TC/TCT DATED DECEMBER 23, 2002
REGARDING IMPORT DUTY RATES
Dear: Toshiba Vietnam Consumer Products Limited Liability Company
The Ministry of Finance has received Letter No. 2010/FA dated October 22, 2002 from the Toshiba Vietnam Consumer Products Limited Liability Company regarding the application of import duty rates under domestic localization policies and the ASEAN Common Effective Preferential Tariff (CEPT) Agreement. In response to this matter, the Ministry of Finance provides the following comments:
1- Regarding the CEPT rate for color television sets:
Color televisions will be included in the list of items subject to reduced import tariffs under the CEPT/AFTA starting from 2003, with a proposed CEPT tariff rate of 20%. The year 2003 is the final year Vietnam must include all products on the list for reducing CEPT tariffs, including color televisions. According to ASEAN regulations, when implementing the CEPT, the tariff rates must be reduced to no more than 20%, and further reduced to 5% by 2006. The Ministry of Finance proposes a phased reduction in tariffs for color television sets as follows: 2003: 20%; 2004: 20%; 2005: 20% and 2006: 5%.
2- Regarding the taxable value:
According to Circular No. 08/2002/TT-BTC dated January 23, 2002 of the Ministry of Finance; Decision No. 164/2000/QĐ-BTC dated October 10, 2000 of the Minister of Finance; color television sets are not currently included in the list of items subject to government-controlled taxable values. If they meet the conditions for applying contract-based prices, such prices may be used, provided that if the contract price is lower than the verified price, the enterprise must prove the authenticity of the contract price.
For imported goods listed under Vietnam's CEPT Agreement implementation list, the determination of the taxable value shall follow Decree No. 60/2002/NĐ-CP dated June 6, 2002 of the Government regarding the valuation of imported goods according to Article 7 of the General Agreement on Tariffs and Trade (GATT) and guidelines issued by the Ministry of Finance.
3- Regarding the application of tax policies in cases where unassembled components are imported for localization policy implementation, but some components meet the conditions for applying CEPT rates. Can these components be subject to preferential CEPT rates while other components receive benefits based on the degree of localization?
According to Circular No. 47/2002/TT-BTC dated May 28, 2002 of the Ministry of Finance; if all imported components for localization policy implementation meet the conditions for applying preferential CEPT rates, the enterprise may choose the lower rate.
If an enterprise has registered to implement a localization policy, it must apply a uniform preferential tax rate based on the degree of localization for all items listed in the import details. In cases where some items are subject to reduced CEPT tariffs, these items will not be separately applied with CEPT rates.
If an enterprise does not register to implement a localization policy and imports unassembled components for assembly, it must pay taxes according to the specified rate for each item (as per Circular No. 37/1999/TT-BTC dated April 7, 1999 of the Ministry of Finance). In such cases, if some items have import tariffs higher than those based on the degree of localization, enterprises must pay taxes at the higher rate; however, components meeting CEPT conditions shall be taxed according to the CEPT.
If an enterprise imports a complete set of assembled components for final product assembly, it must pay taxes according to the specified rate for the finished product (as per Letter No. 11052 TC/TCT dated November 19, 2001 of the Ministry of Finance), without separately applying CEPT rates to individual items meeting such conditions.
The Ministry of Finance hereby informs Toshiba Vietnam Consumer Products Limited Liability Company for its knowledge and compliance.
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