Circular No. 18/2001/TT-BTC guides the non-collection and refund of price difference revenue for imported materials and raw materials used for producing and processing export goods.

CIRCULAR

Guidelines for not collecting and refunding price difference revenue

on imported materials and raw materials used for production and processing of export goods

b) Organizing the implementation of mechanisms to encourage, support, and guide the development of new business models based on e-commerce applications and digital technology;

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Pursuant to Decision No. 195/1999/QĐ-TTg dated September 27, 1999 of the Prime Minister on establishing and managing the Export Support Fund;

To implement the guidance of the Prime Minister as stated in Circular No. 1112/CP-KTTH dated December 4, 2000 of the Government regarding not collecting and refunding price differences;

The Ministry of Finance hereby provides guidelines for not collecting and refunding price difference revenue on imported materials and raw materials used for producing and processing export goods as follows:

I. GENERAL PROVISIONS

1. Scope and subjects of application This Circular guides the non-collection and refunding of price difference revenue for enterprises that import materials and raw materials subject to price difference payment according to Decision No. 195/1999/QĐ-TTg dated September 27, 1999 of the Prime Minister on establishing and managing the Export Support Fund (hereinafter referred to as Decision No. 195/1999/QĐ-TTg), but which are used for producing export goods or for processing for foreign countries and then exporting under signed contracts.

2. Implementation Method.

2.1. Materials and raw materials imported for processing for foreign countries and then exported under signed contracts shall not be required to pay price differences at the time of importation;

2.2. Materials and raw materials imported subject to price difference payments, if used for producing export goods, will be subject to the deadline for paying price differences as stipulated for paying import duties under Point b, Clause 3, Article 4 of Decree No. 94/1998/NĐ-CP dated November 17, 1998 of the Government detailing the Law Amending and Supplementing Certain Provisions of the Law on Export Tax and Import Tax No. 04/1998/QH10 dated May 20, 1998.

2.3. If the enterprise has not exported the product within the deadline specified in Subparagraph 2.2 of this point, the enterprise must pay the price difference for the imported materials and raw materials as currently prescribed. When exporting the product, the enterprise will be refunded the price difference revenue paid corresponding to the actual amount of materials and raw materials imported and used for producing the exported goods.

II. SPECIFIC GUIDELINES FOR NON-COLLECTION AND REFUNDING OF PRICE DIFFERENCE REVENUE

1. For materials and raw materials imported for processing export goods.

1.1. The procedures and documentation process applicable to cases of non-payment of price differences as stipulated in Subparagraph 2.1, Point 2, Part I of this Circular shall be carried out simultaneously and in accordance with the procedures and formalities for exempting import duties on materials and raw materials imported for processing for foreign countries and then exporting under signed contracts.

1.2. The Customs Office of the province or centrally administered city where the enterprise handles the import procedures (hereinafter referred to as the Customs Office) shall base its decision on the exemption from import duties on materials and raw materials imported to issue a decision on non-payment of price differences concurrently with the issuance of a decision to exempt import duties for each specific case.

1.3. The non-payment of price differences for imported materials and raw materials as stipulated in Subparagraph 2.1, Point 2, Part I of this Circular shall only apply to the actual portion of materials and raw materials used in producing exported goods and which have been decided to be exempted from import duties.

2. For materials and raw materials imported for producing export goods.

2.1. To be eligible for the deadline for paying price differences as stipulated in Subparagraph 2.2, Point 2, Part I of this Circular, enterprises must have complete documentation meeting the conditions stipulated in Point 2, Part III, Section C of Circular No. 172/1998/TT-BTC dated December 22, 1998 of the Ministry of Finance guiding the implementation of Decree No. 54/CP dated August 20, 1993, Decree No. 94/1998/NĐ-CP dated November 17, 1998 of the Government detailing the implementation of the Law on Export Tax and Import Tax and the Law Amending and Supplementing Certain Provisions of the Law on Export Tax and Import Tax (hereinafter referred to as Circular No. 172/1998/TT-BTC).

2.2. Based on the stipulated documentation, the Customs Office issues a notice of the deadline for paying price differences to the enterprise, while opening a record to determine the amount of price differences the enterprise must pay (if any) when exporting the product.

2.3. If the enterprise exports the product within the deadline for paying price differences, the enterprise sends a letter requesting non-payment of price differences to the Customs Office.

2.3.1. Based on the enterprise's request letter, the Customs Office reviews the documentation and issues a decision on non-payment of price differences for each specific case.

2.3.2. Non-payment of price differences shall only apply to the quantity of imported materials and raw materials that have been decided not to be subject to import duties and shall be implemented concurrently with the decision not to pay import duties.

2.4 If the enterprise does not export finished products within the deadline for paying price differences as stipulated in Subparagraph 2.2, Point 2, Part I of this Circular, the enterprise must pay the price difference for the imported materials and raw materials as currently prescribed. In case the enterprise delays payment of the price difference, it will be treated as a violation similar to the delay in paying import duties as stipulated in Point 1, Part I, Section G of Circular No. 172/1998/TT-BTC dated December 22, 1998 of the Ministry of Finance.

3.1. The procedures and formalities for refunding price differences for the cases mentioned in Subparagraph 2.3, Point 2, Part I of this Circular shall be carried out in accordance with the procedures and formalities for refunding import duties on materials and raw materials imported for producing export goods as stipulated in Circular No. 172/1998/TT-BTC.

3.2. In addition to the documentation stipulated in Point 1, Part I, Section E of Circular No. 172/1998/TT-BTC, enterprises requesting refund of price differences must also provide the following additional documentation:

a) A letter requesting the refund of price differences submitted by the enterprise, clearly stating the amount of price differences already paid and the amount requested for refund;

b) Receipts for payment of price differences (or certificates of payment into the State budget, Treasury confirmation regarding the amount of price differences already paid);

3.3. The Customs Authority shall base its decision to refund price differences for each specific case on the aforementioned regulations. The refund of price differences shall be carried out simultaneously with the refund of import tax (if applicable). The amount of refunded price difference shall correspond to the imported materials and raw materials that have been refunded import tax (if applicable), and shall not exceed the amount of price difference actually paid by the enterprise into the State budget as confirmed by the Treasury. Enterprises will not be entitled to a refund of price differences for materials and raw materials determined to be ineligible for the refund of previously paid import tax.

3.4. Based on the decision to refund price differences issued by the Customs Authority, the Treasury of provinces and centrally governed cities shall implement the refund of price differences to enterprises. The source of the refund shall be recorded in the account of the Export Support Fund opened at the Treasury.

4. Recovery of price differences.

4.1. Enterprises with imported materials and raw materials subject to non-collection of price differences as stipulated in Clause 2.1, Point 2, Part I of this Circular, if they use these materials and raw materials for purposes other than those specified as the basis for non-collection of price differences must declare and pay back the price differences.

4.2. The basis for calculating the recovery of price differences shall be implemented according to the principle of calculating price differences prescribed in Clause 1.1, Point 1, Part I, Section B of Circular No. 150/1999/TT-BTC dated December 21, 1999, guiding the implementation of Decision No. 195/1999/QĐ-TTg, and applied according to the provisions at the time of calculating the recovery of price differences.

4.3. The deadline for declaring and paying back the recovery of price differences shall be determined according to the deadline for recovering import tax as stipulated in Part II, Section E of Circular No. 172/1998/TT-BTC.

III IMPLEMENTATION

2. In the course of implementation, if there are any difficulties, please report them to the Ministry of Finance for research and consideration of supplementary guidance.