Circular No. 157/2011/TT-BTC Issuing the Export Tax Schedule and the Preferential Import Tax Schedule according to the List of Taxable Goods

CIRCULAR

Specifies the rate of export tax under the Export Tariff,

Import tariff with preferential rates according to the list of taxable goods,

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

Pursuant to Resolution No. 71/2006/QH11 dated November 29, 2006 of the National Assembly approving the Protocol on Accession to the World Trade Organization Agreement of the Socialist Republic of Vietnam;

Pursuant to Resolution No. 295/2007/NQ-UBTVQH12 dated September 28, 2007 of the Standing Committee of the National Assembly on the issuance of the Export Tariff based on the list of taxable goods categories and the tax rate framework for each category, the Import Tariff with preferential rates based on the list of taxable goods categories and the preferential tax rate framework for each category;

Pursuant to Resolution No. 710/2008/NQ-UBTVQH12 dated November 22, 2008 of the Standing Committee of the National Assembly amending Resolution No. 295/2007/NQ-UBTVQH12 dated September 28, 2007;

Pursuant to Resolution No. 830/2009/UBTV12 dated October 17, 2009 of the Standing Committee of the National Assembly on amending Resolution No. 295/2007/NQ-UBTVQH12 dated September 28, 2007 and Resolution No. 710/2008/NQ-UBTVQH12 dated November 22, 2008;

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 the Decree No. 118/2008/NĐ-CP dated November 27, 2008 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;

Implementing the Protocol stipulating the implementation of the Harmonized System Tariff Schedule of the Association of Southeast Asian Nations (ASEAN AHTN) 2012;

The Ministry of Finance promulgates the Export and Import Tariff, Import Tariff with preferential rates according to the list of taxable goods as follows:

Article 1. Issuing the Export Tariff, Import Tariff with preferential rates according to the lists of taxable goods

1. National Technical Regulation on Railway Traffic Signals, number QCVN 21:2025/BXD.

1. The Export Tariff according to the list of taxable goods as prescribed in Appendix I.

2. The Import Preferential Tariff according to the list of taxable goods as specified in Appendix II.

Article 2. The Export Tariff according to the list of taxable goods

1. The Export Tariff according to the list of taxable goods as prescribed in Appendix I includes a description of goods (name of goods category and name of goods), code number (goods category consists of four digits, goods consists of eight digits), the rate of export tax prescribed for the goods category subject to export tax.

2. In case a good is not specifically named in the Export Tariff, when processing customs formalities, the declarant must still declare the code number of that good according to eight digits corresponding to the code number of that good in the Import Tariff with preferential rates prescribed in Section I of Appendix II attached hereto and record the export tax rate as 0% (zero percent).

Export tax on goods exported produced or processed from imported raw materials:

a) In case goods meet the conditions to be determined as being produced or processed from entirely imported raw materials, no export tax shall be paid. For wood products, if they include paint, varnish, nails, these items are considered auxiliary materials.

b) In case goods are produced or processed from two sources: Imported raw materials and domestically sourced raw materials, no export tax shall be paid for the quantity of goods exported corresponding to the quantity of imported raw materials actually used to produce or process the exported goods. The quantity of goods exported produced or processed from domestic raw materials shall be subject to export tax at the rate prescribed for the exported goods.

Documents exempting export tax for exported goods submitted to the Customs authority include:

A letter requesting exemption from export tax for exported goods produced or processed from imported raw materials, detailing the quantity and value of imported raw materials used to produce or process exported goods; the quantity of exported goods; the amount of export tax exempted: One original copy;

The import declaration form for raw materials already processed through customs procedures: Submit one copy, present one original for verification;

The export declaration form: One original copy;

Export and import contracts; consignment export and import contracts if consignment export and import is the form used: One copy;

Sales contract for goods (in cases where the enterprise imports raw materials for production and export but does not directly export or consign export but sells to another enterprise which exports directly abroad): One copy;

Production and processing contract for exported goods if it is a joint production and processing arrangement: One copy;

Registration table of raw material import quotas for production and processing of exported goods specifying the portion of imported raw materials and domestic raw materials (each import declaration for raw materials registers once): The enterprise presents one original and submits one copy.

List of import declarations for raw materials used for production and processing of exported goods specifying the quantity of imported raw materials: One copy;

List of documents for the application for exemption from tax: One original;

The content of the documents exempting export tax for exported goods specified herein shall be implemented in accordance with Circular No. 194/2010/TT-BTC dated December 6, 2010 of the Ministry of Finance guiding customs procedures; customs inspection and supervision; export tax, import tax and management of taxes on exported and imported goods.

For certain gold items (belonging to subheading 71.08), gold jewelry (belonging to subheading 71.13), gold craft items (belonging to subheading 71.14) and other gold products (belonging to subheading 71.15), a zero percent export tax rate applies: In addition to the general customs documents for exported goods, there must be a certificate of gold content issued by the competent agency or unit for appraisal in accordance with Circular No. 49/2010/TT-BTC dated April 12, 2010 of the Ministry of Finance guiding classification and application of tax rates for exported and imported goods: Present one original for verification, submit one copy to the Customs authority.

Article 3. The preferential import tariff schedule according to the list of taxable goods

The Import Tariff with preferential rates according to the list of taxable goods as prescribed in Appendix II includes:

1. Section I: Preferential import tax rate applicable to 97 chapters according to the list of imported goods in Vietnam. Content includes a description of goods (name of goods category and name of goods), code number (goods category, goods consisting of eight digits), the preferential import tax rate prescribed for the goods category or goods subject to tax.

2. Section II: Chapter 98 - Prescribing code numbers and preferential import tax rates for certain goods categories and goods. Content includes:

a) Explanation and conditions for applying separate preferential import tax rates. For goods categories and goods applying separate preferential import tax rates prescribed from subheading 98.17 to subheading 98.22 in Chapter 98 (excluding subheadings 9820 and 9821): The taxpayer must settle the importation and use of goods in accordance with Section II of Appendix II issued together with this Circular.

b) List of product groups, products, and preferential import tax rates: Specifies the names of product groups and products; commodity codes in Chapter 98; corresponding codes for those product groups and products in Section I of Appendix II (97 chapters according to the Vietnam Import Tariff Schedule) and the preferential import tax rate applicable specifically in Chapter 98.

Article 4. Preferential import tax on second-hand automobiles imported

The preferential import tax on second-hand automobiles imported is prescribed as follows:

1. Passenger cars carrying up to 15 seats (including the driver) belonging to Groups 87.02 and 87.03 shall apply the preferential import tax rate as stipulated in Decision No. 36/2011/QĐ-TTg dated June 29, 2011 of the Prime Minister regarding the preferential import tax rate for passenger cars carrying up to 15 seats (including the driver) that have been used and guiding documents issued by the Ministry of Finance.

2. The preferential import tax rate for passenger cars carrying 16 seats or more (including the driver) belonging to Group 87.02 and cargo transport vehicles with a total weight not exceeding 5 tons belonging to Group 87.04 (excluding refrigerated trucks, waste collection trucks equipped with waste compaction units, tank trucks, armored trucks for transporting valuable goods, cement-type trucks, and mud trucks with detachable and liftable tanks) is 150%.

3. The preferential import tax rate for other types of passenger cars belonging to Groups 87.02, 87.03, and 87.04 shall be 1.5 times the preferential import tax rate for new passenger cars of the same type belonging to Groups 87.02, 87.03, and 87.04 as specified in Section I of Appendix II – Preferential Import Tariff Schedule according to the list of taxable items promulgated under this Circular.

Article 5. Implementation

1. This Circular takes effect from January 1, 2012

2. This Circular abolishes:

a) Circular No. 184/2010/TT-BTC of the Ministry of Finance prescribing the tariff rates of the Export Tariff and the Preferential Import Tariff according to the list of taxable items;

b) Circular No. 201/2010/TT-BTC dated December 13, 2010 of the Ministry of Finance prescribing the preferential import tax rate for materials and equipment imported for projects manufacturing non-fired building materials and producing cement-clinker with a capacity of seven million standard bricks per year or more;

c) Circular No. 208/2010/TT-BTC dated December 17, 2010 of the Ministry of Finance guiding the implementation of the preferential import tax rate for certain items belonging to Group 2711 in the Preferential Import Tariff Schedule;

d) Circular No. 214/2010/TT-BTC of the Ministry of Finance guiding the preferential import tax policy for materials and equipment imported for the production of key mechanical products and for investment in the production of key mechanical products;

e) Circular No. 07/2011/TT-BTC dated January 14, 2011 guiding the implementation of the preferential import tax rate for certain items belonging to Group 2710 in the Preferential Import Tariff Schedule;

f) Circular No. 20/2011/TT-BTC of the Ministry of Finance dated February 17, 2011 prescribing the export tax rate for yellow phosphorus items under code 2804.70.00.00 in the Export Tariff;

g) Circular No. 24/2011/TT-BTC dated February 23, 2011 of the Ministry of Finance guiding the implementation of the preferential import tax rate for certain items belonging to Group 2710 in the Preferential Import Tariff Schedule;

h) Circular No. 29/2011/TT-BTC dated March 1, 2011 of the Ministry of Finance concerning the adjustment of the preferential import tax rate for sugar items under Group 17.01 in the Preferential Import Tariff Schedule;

i) Circular No. 46/2011/TT-BTC dated April 5, 2011 of the Ministry of Finance prescribing the export tax rate for fresh coconuts under code 0801.19.00.00 in the Export Tariff;

j) Circular No. 67/2011/TT-BTC dated May 18, 2011 of the Ministry of Finance amending the export tax rate for iron ore and concentrate iron ore under Group 26.01 as stipulated in the Export Tariff;

k) Circular No. 77/2011/TT-BTC dated June 7, 2011 of the Ministry of Finance amending the preferential import tax rate for ammonia items under code 2814.10.00.00 in the Preferential Import Tariff Schedule;

l) Circular No. 82/2011/TT-BTC dated June 10, 2011 of the Ministry of Finance guiding the implementation of the preferential import tax rate for certain items belonging to Group 2710 in the Preferential Import Tariff Schedule;

m) Circular No. 91/2011/TT-BTC dated June 20, 2011 of the Ministry of Finance amending the preferential import tax rate for certain items in the Preferential Import Tariff Schedule;

n) Circular No. 95/2011/TT-BTC dated July 4, 2011 of the Ministry of Finance amending the export tax rate for scrap and waste steel under Group 7204 in the Export Tariff;

o) Circular No. 102/2011/TT-BTC dated July 11, 2011 of the Ministry of Finance amending the preferential import tax rate for cashew nuts under code 0801.31.00.00 in the Preferential Import Tariff Schedule;

p) Circular No. 103/2011/TT-BTC dated July 11, 2011 amending and supplementing Clause 75 Section II Appendix III promulgated along with Circular No. 184/2010/TT-BTC dated November 15, 2010 of the Ministry of Finance;

q) Circular No. 108/2011/TT-BTC dated July 28, 2011 of the Ministry of Finance amending the regulations on export tax and preferential import tax for items in the Export Tariff and the Preferential Import Tariff Schedule;

r) Circular No. 111/2011/TT-BTC dated August 2, 2011 of the Ministry of Finance concerning the amendment of the export tax regulations for certain gold items in the Export Tariff;

s) Circular No. 119/2011/TT-BTC dated August 16, 2011 of the Ministry of Finance amending the preferential import tax rate for parts used for flat (thin) screens under codes 8529.90.94.10, 8529.90.94.90 in the Preferential Import Tariff Schedule;

t) Circular No. 135/2011/TT-BTC dated October 3, 2011 amending the export tax rate for copper stannic alloy under Group 74.01 in the Export Tariff;

u) Circular No. 145/2011/TT-BTC dated October 24, 2011 prescribing the export tax rate for certain rubber items under Groups 40.01, 40.02, and 40.05 in the Export Tariff;

Other regulations of the Ministry of Finance on export tax and preferential import tax contrary to the provisions of this Circular.

3. In the course of implementation, if related documents cited in this Circular are amended, supplemented, or replaced, they shall be implemented according to the amended, supplemented, or replacement documents./.