Circular No. 185/2012/TT-BTC guiding the exemption from import tax for spare parts and components to produce and assemble buses under the Public Passenger Transport Development Investment Project in Hanoi and Ho Chi Minh City.

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

Article 1. Scope of Application

This Circular guides the implementation of the exemption from import tax for spare parts and components to produce and assemble buses that are not yet produced domestically under projects to invest in developing public passenger transport by bus in Hanoi City and Ho Chi Minh City during the period of 2012-2015.

Article 2. Conditions for Exemption from Import Tax

1. The investment project must be approved by the competent state agency within the period of 2012-2015 according to the guidance of the Ministry of Transport, specifying: the duration of the project; the quantity, type, quality, and value of spare parts and components needed for importing to produce and assemble domestic buses.

2. The basis for determining spare parts and components that have been produced domestically is the List of machinery, equipment, replacement parts, specialized transportation means, raw materials, materials, semi-finished products that have been produced domestically issued by the Ministry of Planning and Investment and effective at the time of registering the customs declaration for goods imports of the project.

Article 3. Procedures for Exemption from Import Tax

1. Regarding registration of the list of imported goods exempted from tax

a) The project owner must register the list of imported goods exempted from tax before registering the first customs declaration of the project, project component, or phase according to Form 11 of Appendix VI issued together 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 tax management for exported and imported goods (hereinafter referred to as Circular No. 194/2010/TT-BTC).

b) Place of registration: Customs Department of provinces and cities where the project is implemented.

c) Registration documents: The person registering the list of imported goods exempted from tax must submit and present to the customs authority the following documents:

- A letter requesting registration of the list of imported goods exempted from tax, clearly stating the quantity of spare parts and components, reasons for requesting tax exemption according to Form 13 of Appendix VI issued together with Circular No. 194/2010/TT-BTC: One original copy;

- List of imported goods exempted from tax: Two original copies accompanied by one tracking sheet according to Form 14 of Appendix VI issued together with Circular No. 194/2010/TT-BTC;

- Investment License or Certificate of Investment Incentives: One copy, presenting the original for verification;

- Economic and technical justification, detailed technical design documents of the project: One copy, presenting the original for verification;

- List of documents for registration of the list of imported goods exempted from tax: One original copy.

d) After the enterprise registers the list of imported goods exempted from tax, the customs authority will issue a tracking sheet as the basis for the taxpayer to present to the customs authority for tracking when handling customs procedures for actual imported goods.

2. Regarding documents and procedures for tax exemption

a) Documents and procedures for tax exemption shall be carried out according to Article 103 of Circular No. 194/2010/TT-BTC. Additionally, the project owner must provide the approval document of the competent authority (according to the guidance of the Ministry of Transport), specifying: the duration of the Project; the quantity, type, quality, and value of spare parts and components needed for importing to produce and assemble domestic buses.

b) The project owner must calculate and declare the amount of tax exempted for each item and customs declaration as if it were a case requiring payment of tax. The customs authority will base on the tax exemption documents, the amount of tax proposed to be exempted, and compare with current regulations to handle tax exemption for each customs declaration according to the provisions.

3. Regarding settlement of importation, use of tax-exempt goods, and other related matters

a) The project owner is responsible for settling the importation and use of tax-exempt goods according to Article 104 of Circular No. 194/2010/TT-BTC.

b) Other related matters concerning customs documents, registration of the list of imported goods exempted from tax, the responsibility of customs authorities in supervising customs procedures, implementing the reporting system for tax-exempt goods, and the responsibilities of taxpayers not mentioned in this Circular shall be carried out according to the guidance in Circular No. 194/2010/TT-BTC.

Article 4. Organization of Implementation

1. This Circular takes effect from December 14, 2012.

2. During the implementation process, if related documents cited in this Circular are amended, supplemented, or replaced, they shall be implemented according to the amended, supplemented, or replacing documents; in case of any difficulties, relevant agencies, organizations, and individuals are requested to promptly reflect to the Ministry of Finance for research and guidance./.