Circular No. 166/2000/DEC-BTC Regarding the Import Tax Rate for Certain Machinery and Equipment Specifically Used for Coal Mining in Underground Mines

Pursuant to …; ISSUED BY THE MINISTER OF FINANCE

Regarding the determination of import tax rates for certain machinery and equipment specifically used for underground coal mining explosion prevention

room for storing explosive materials specifically for coal mining in underground tunnels

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THE MINISTER OF FINANCE

Pursuant to Decree No. 15/CP dated March 2, 1993 of the Government on the tasks, powers, and responsibilities for state management of ministries and ministerial-level agencies;
BASED ON DECREE NO. 178/CP DATED OCTOBER 28, 1994 OF THE GOVERNMENT ON THE TASKS, POWERS AND ORGANIZATIONAL STRUCTURE OF THE MINISTRY OF FINANCE;
Pursuant to the tariff rate framework stipulated in the Import Tariff Schedule according to the List of Taxable Commodity Groups issued together with Resolution No. 63/NQ-UBTVQH10 dated October 10, 1998 of the Standing Committee of the National Assembly, Tenth Session;
Pursuant to Article 1 of Decree No. 94/1998/ND-CP dated November 17, 1998 of the Government detailing the implementation of the Law Amending and Supplementing Certain Provisions of the Law on Export Tax and Import Tax No. 04/1998/QH10 dated May 20, 1998;
After consulting relevant Ministries and Agencies; at the proposal of the Director General of the General Department of Taxation;

DECISION:

Article 1: Apply an import tax rate of 0% (zero percent) for certain machinery and equipment specifically used for underground coal mining explosion prevention if they meet the following conditions:

- Listed in the Appendix attached hereto

- Not produced domestically (confirmed by the Ministry of Industry)

- Imported for installation in underground mines for coal mining purposes

- Imported by Vietnam National Coal Corporation and its affiliated enterprises;

The commodity code according to the Tariff Schedule for machinery and equipment specifically used for underground coal mining as stipulated in this Decision shall not apply to all items under that commodity code but only to those items clearly named in the Appendix attached hereto.

Article 2: Annually, the Ministry of Finance will review and adjust the import tax rates for the items specified in Article 1 of this Decision, in accordance with domestic production capacity and international commitments on taxes.

Article 3: Vietnam National Coal Corporation must bear full responsibility for the import and proper use of explosion-proof equipment specifically used for underground coal mining. The provision of separate import tax rates for machinery and equipment specifically used for underground coal mining shall be implemented no later than December 31, 2005.

By March 31 of the following year, Vietnam National Coal Corporation must report the usage of the machinery and equipment specifically used for underground coal mining imported in the previous year to the Ministry of Industry and customs authorities (at the place of import). Cases of improper use will result in back payment of import tax and penalties in accordance with the provisions of the Tariff Schedule and the Law on Export Tax and Import Tax.

Article 4: This Decision takes effect and applies to import declarations submitted to customs authorities from October 25, 2000.

ANNEX

LIST OF EXPLOSION-PROOF EQUIPMENT SPECIFICALLY USED FOR UNDERGROUND COAL MINING
(Annexed to Decision No. 166/2000/QD/BTC dated October 17, 2000 of the Minister of Finance)