Circular No. 164/2015/TT-BTC Amending and Supplementing the List of Groups of Goods and Preferential Import Tariff Rates for Raw Materials, Components, and Auxiliary Parts for the Production of Key Information Technology (IT) Products under Chapter 98 of the Preferential Import Tariff Schedule issued together with Circular No. 164/2013/TT-BTC dated November 15, 2013, of the Minister of Finance.

CIRCULAR

Amending and supplementing the list of groups of goods and rates of preferential import duties for raw materials, components, spare parts, and auxiliary parts to produce key information technology (IT) products under Chapter 98 of the Preferential Import Tariff Schedule issued together with Circular No. 164/2013/TT-BTC dated November 15, 2013, of the Minister of Finance.

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

Pursuant to Resolution No. 295/2007/NQ-UBTVQH12 dated September 28, 2007, regarding the issuance of the Export Tariff Schedule based on the list of taxable commodity groups and tax rate ranges for each group, and the Preferential Import Tariff Schedule based on the list of taxable commodity groups and preferential tax rate ranges for each group;

Pursuant to Decree No. 87/2010/NĐ-CP dated August 13, 2010, of the Government detailing certain provisions of the Law on Export Tax and Import Tax;

Pursuant to Decree No. 215/2013/NĐ-CP dated December 23, 2013, of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;

At the proposal of the Director of the Tax Policy Department,

The Minister of Finance issues this Circular amending and supplementing the list of groups of goods and rates of preferential import duties for raw materials, components, spare parts, and auxiliary parts to produce key information technology (IT) products under Chapter 98 of the Preferential Import Tariff Schedule issued together with Circular No. 164/2013/TT-BTC dated November 15, 2013, of the Minister of Finance.

Article 1. Amending and supplementing Section I - Explanations and conditions for applying preferential import duty rates for raw materials, components, spare parts, and auxiliary parts to produce key information technology (IT) products under Chapter 98

1. Supplement Clause b.8 to Point 3 - Methods of classification, conditions for applying preferential import duty rates recorded in Chapter 98, finalizing imports, and usage in Section I - Explanations and conditions for applying preferential import duty rates in Chapter 98 as stipulated in Circular No. 164/2013/TT-BTC dated November 15, 2013, of the Minister of Finance as follows:

"b.8. Goods imported under subheading 98.34:"

b.8.1) Conditions for application:

- Goods imported are raw materials, components, spare parts, and auxiliary parts to produce key IT products under tariff codes 9834.12.90, from 9834.28.00 to 9834.37.00 under subheading 98.34.

- Imported by enterprises producing key IT products.

b.8.2) Import procedures:

b.8.2.1 - Responsibilities of the declarant:

The declarant must register a list of goods imported as raw materials, components, spare parts, and auxiliary parts to produce key IT products under tariff codes 9834.12.90, from 9834.28.00 to 9834.37.00 (List) with the Customs Sub-department at the most convenient location before importing the first batch of goods, in accordance with the annual production capacity/usage requirements of the factory. The application dossier submitted to the customs authority issuing the List includes:

- Confirmation from the Ministry of Information and Communications regarding the List of goods;

- A letter requesting issuance of the List;

- The List of goods and the Reconciliation Form.

A letter requesting issuance of the List, the List of goods, and the Tracking Sheet following the regulations stipulated in Clause 5, Article 104 of Circular No. 38/2015/TT-BTC dated March 25, 2015, of the Ministry of Finance concerning customs procedures; customs inspection and supervision; export tax, import tax, and tax management for exported and imported goods, where the term "exempted from tax" is replaced with "for producing key information technology products."

In case the List has been registered but needs to be amended or supplemented, the declarant may amend or supplement it provided that they submit relevant documents and materials to the customs authority issuing the List before the first importation of goods or before importing subsequent batches with amendments or supplements to the List, proving that such amendments or supplements are appropriate. The application dossier submitted to the customs authority issuing the List for amendment or supplementation includes:

- A letter requesting issuance of the amended or supplemented List;

- The List of goods and the Reconciliation Form amended or supplemented.

In case the List and the Reconciliation Form are lost, the declarant must submit an application dossier to the customs authority issuing the original List for reissuance, including:

- A letter requesting reissuance of the List, the Tracking Sheet, clearly stating the reasons for losing the List and the Tracking Sheet, and the declarant's commitment to the accuracy of the declaration;

- An inventory of all customs declarations (electronic or paper) of the quantity of goods imported under the List;

- The original List and the Tracking Sheet issued by the customs authority handling the last importation before loss (one copy with confirmation stamp from the customs authority handling the importation).

When handling customs procedures, the declarant must submit and present to the customs authority registering the customs declaration the following documents:

- Customs documents as prescribed;

- The List of goods and the Reconciliation Form registered with the customs authority (a copy given to the declarant) for the customs authority to process reconciliation of imported goods.

Annually, no later than the ninetieth day after the end of the fiscal year, the declarant submits a report on the use of raw materials, components, spare parts, and auxiliary parts to produce key IT products to apply preferential import duty rates under tariff codes 9834.12.90, from 9834.28.00 to 9834.37.00 during the fiscal year to the customs authority according to Article 41 of Decree No. 08/2015/NĐ-CP dated January 21, 2015, of the Government and Article 60 of Circular No. 38/2015/TT-BTC dated March 25, 2015, of the Minister of Finance. Simultaneously, send a copy of the report to the Ministry of Information and Communications for recordkeeping.

b.8.2.2 - Responsibilities of the customs authority:

b.8.2.2.1 - When receiving the List:

- Immediately upon receipt of the application dossier, the Customs Sub-department where the declarant registers the List shall be responsible for checking, preparing a tracking sheet, affixing a confirmation stamp on two copies of the List of imported goods and one copy of the Tracking Sheet (keep one original copy of the List, hand over one original copy of the List along with one original copy of the Tracking Sheet to the declarant for presentation to the customs authority handling the importation to perform actual deduction and calculate taxes according to Circular No. 38/2015/TT-BTC dated March 25, 2015, of the Minister of Finance and Clause b.8.2.2.2, Point 1, Article 1 of this Circular).

- In case the declarant needs to amend or supplement the List and tracking form, the Customs Sub-department where the declarant registered the List shall be responsible for checking, issuing a tracking form, stamping confirmation on two copies of the List of imported goods that need to be amended or supplemented and one copy of the tracking form that needs to be amended or supplemented (retain one original copy of the List, hand over one original copy of the List along with one original copy of the tracking form to the declarant for presentation to the customs authority at the place of import procedures to implement the actual import deduction and tax calculation according to Circular No. 38/2015/TT-BTC dated March 25, 2015 of the Minister of Finance and point b.8.2.2.2 Clause 1 of this Circular).

- In case the declarant loses the List and Tracking Form: based on the declarant's request and confirmation from other local Customs Departments, the customs authority where the declarant registered the List shall check specifically and reissue the List of goods and Tracking Form for raw materials, components, and spare parts to produce key IT products under HS codes 9834.12.90, from 9834.28.00 to 9834.37.00 that have not yet been imported according to Circular No. 38/2015/TT-BTC dated March 25, 2015 of the Minister of Finance.

The processing time limit of the customs authority for registration of the List, amendment, and supplementation of the List; reissuance of the List shall be carried out in accordance with Article 104 of Circular No. 38/2015/TT-BTC dated March 25, 2015 of the Minister of Finance.

b.8.2.2.2 - When handling import procedures:

In addition to customs procedures as prescribed, the customs authority shall base on the customs file, compare with the tracking form to deduct the raw materials, components, and spare parts to produce key IT products under HS codes 9834.12.90, from 9834.28.00 to 9834.37.00 that the declarant has actually imported and sign confirmation according to regulations. Retain one copy of the List and the tracking form that have been deducted into the customs file.

Upon completion of the quantity of imported goods recorded in the tracking form, the Head of the Customs Sub-department where the final import procedures were conducted shall confirm "all goods under List number... have been imported" on the original tracking form of the declarant and retain one copy, issue one copy to the declarant and send the original to the Customs Sub-department that issued the tracking form for post-clearance inspection according to regulations.

In case the Customs Sub-department receiving the List registration is also the Customs Sub-department handling the import procedures, after the Head of the Sub-department confirms the completion of the quantity of imported goods in the tracking form, the Sub-department retains the original, issues one copy to the declarant, and forwards one copy of the tracking form along with the registration file to conduct post-clearance inspection according to regulations.

b.8.2.2.3 - After receiving the original tracking form sent by the Customs Sub-department where the final import procedures were conducted, the Customs Sub-department where the List was registered and the tracking form was issued shall compile all registration files and transfer them to the Post-Clearance Inspection Sub-department for post-clearance inspection according to the regulations on risk management regarding the use of imported goods subject to special preferential tariff rates under HS codes 9834.12.90, from 9834.28.00 to 9834.37.00 as stipulated in Article 98 of Decree No. 08/2015/NĐ-CP dated January 21, 2015 of the Government.

2. In case of misuse, goods under HS codes 9834.12.90, from 9834.28.00 to 9834.37.00 must be taxed at the preferential tariff rate applicable to the corresponding HS codes in Chapter 97 at the time of registering the Import Declaration with the customs authority.

Article 2. Supplement Item II - List of commodity groups and preferential import tariff rates in Chapter 98

Supplement the names of some raw materials, components, and spare parts to produce key IT products into Group 9834 in Section II - List of product groups and preferential tariff rates in Chapter 98 as follows:

Article 3. Effectiveness

1. This Circular takes effect from December 20, 2015.

2. Repeal Article 2 and Article 3 of Circular No. 101/2015/TT-BTC dated June 29, 2015, which supplements the list of groups of goods and preferential import tariff rates for raw materials, components, spare parts, and auxiliary parts for the production of key information technology products under Chapter 98 of the Preferential Import Tariff Schedule issued together with Circular No. 164/2013/TT-BTC dated November 15, 2013, issued by the Minister of Finance.

3. For cases that have registered lists of raw materials, components, and auxiliary parts for the production of key information technology products according to Circular No. 101/2015/TT-BTC dated June 29, 2015, but modify, supplement, reissue the list, and report on the use of raw materials, components, spare parts, and auxiliary parts from the date this Circular takes effect, they shall be implemented in accordance with the provisions of this Circular./.