Circular No. 193/2012/TT-BTC Issuing Export Tax Schedule and Preferential Import Tax Schedule according to the List of Taxable Goods

CIRCULAR

Issuing the Export Tariff, the Import Preferential Tariff

according to the list of taxable goods

____________________

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 issuing the Export Tariff according to the list of taxable commodity groups and the tax rate framework for each group, the Import Preferential Tariff according to the list of taxable commodity groups and the preferential tax rate framework for each group;

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/UBTVQH12 dated October 17, 2009 of the Standing Committee of the National Assembly on amending and supplementing 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;

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

The Minister of Finance issues this Circular on Export Tariff Table, Import Tariff Table for Preferential Treatment according to the List of Goods Subject to Taxation.

Article 1. Issuing the Export Tariff, the Import Preferential Tariff according to the list of taxable goods Issued together with this Circular:

1. The Export Tariff according to the list of taxable goods as specified 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 specified in Appendix I includes a description of goods (name of commodity group and name of commodity), code number (commodity group consists of 04 digits, commodity consists of 08 digits), export tax rate prescribed for the commodity group or taxable export commodity. When processing customs procedures, the declarant must declare the commodity code according to 08 digits as specified in the Export Tariff list. In case the exported commodity does not have a specific code number according to 08 digits in the Export Tariff list, when processing customs procedures, the declarant still has to declare the commodity code according to 08 digits corresponding to the commodity code in the Import Preferential Tariff as specified in Section I of Appendix II issued together with this Circular and record the export tax rate prescribed for the commodity group or sub-group at the Export Tariff.

Example: When exporting Pulpwood from coniferous trees, the commodity code must be declared according to 08 digits as 4404.10.00 and apply the export tax rate of 5% for commodity group 4404.

2. In case a commodity is not specifically named in the Export Tariff, when processing customs procedures, the declarant still has to declare the commodity code according to 08 digits corresponding to the commodity code in the Import Preferential Tariff as specified in Section I of Appendix II issued together with this Circular and record the export tax rate as 0% (zero percent).

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

a) In case goods meet the conditions to be determined as being produced or processed entirely from 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 used to produce or process the actual exported goods. The quantity of goods exported produced or processed from domestic raw materials shall be subject to export tax at the export tax rate prescribed for that exported commodity.

The documents exempted from 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, including detailed explanation of the quantity and value of imported raw materials used to produce or process exported goods; quantity of exported goods; amount of export tax exempted: Submit one original copy;

- Declaration form for imported raw materials that have completed customs procedures: Submit one copy, present one original copy for verification;

- Declaration form for exported goods: Submit one original copy;

- Export and import contracts; consignment export and import contracts if it is consignment export and import: Submit one copy;

- Goods purchase and sale contract (in case the enterprise imports raw materials for production and processing of export products but does not directly export or consign export but sells to another enterprise which directly exports abroad): Submit one copy;

- Production and processing contract for export goods if it is a joint production and processing of export goods: Submit one copy;

- Registration table of import raw material quotas for production and processing of export goods specifying the part of imported raw materials, the part of domestic raw materials (each declaration form for imported raw materials registers once): The enterprise presents one original copy and submits one copy;

- List of declaration forms for imported raw materials used for production and processing of export goods specifying the quantity of imported raw materials: Submit one copy;

- List of documents in the application for exemption from tax: Submit one original copy.

The content of the declaration for exported goods exempted from export tax as stipulated 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 for exported and imported goods.

4. For certain gold items (belonging to subheading 71.08), gold jewelry (belonging to subheading 71.13), gold handicrafts (belonging to subheading 71.14), and other gold products (belonging to subheading 71.15), a zero percent export tax rate shall be applied: In addition to the customs declaration documents for exported goods as prescribed generally, there must be a certificate of gold fineness from the competent agency or unit conducting the appraisal according to Circular No. 49/2010/TT-BTC dated April 12, 2010 of the Ministry of Finance (one original copy for verification and one photocopy submitted to the Customs authority). In cases where gold items meet the conditions to be determined as being produced entirely from imported raw materials and exported under the processing export scheme, when handling customs procedures, it is not necessary to present the certificate of gold fineness but must present the gold raw material import permit issued by the State Bank according to Circular No. 16/2012/TT-NHNN dated May 25, 2012 (submit one photocopy stamped by the enterprise and present the original for verification).

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

The preferential import tariff schedule according to the list of taxable goods specified in Appendix II includes:

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

2. Section II: Chapter 98 - Prescribing code numbers and preferential import tariff rates separately for some commodity groups and commodities. Content includes:

a) Explanation and conditions for applying separate preferential import tariff rates. For commodity groups and commodities applying separate preferential import tariff rates prescribed from commodity group 98.17 to commodity group 98.23 in Chapter 98: The taxpayer must settle the importation and use of goods according to the provisions in Section II of Appendix II promulgated together with this Circular (except for goods imported under commodity groups 9820, 9821, and 9823).

b) List of commodity groups and commodities and preferential import tariff rates: Prescribing the name of commodity groups and commodities; goods code at Chapter 98; corresponding code of the commodity group or commodity at Section I of Appendix II (97 chapters according to the list of the Import Tariff Schedule of Vietnam) and the separate preferential import tariff rate applicable at Chapter 98.

Commodities with names and implementing separate preferential import tariff rates prescribed in Chapter 98, if they meet the conditions to apply special preferential import tariff rates according to current regulations, may choose to apply special preferential import tariff rates prescribed in Circulars promulgating the Special Preferential Import Tariff Schedule or the separate preferential import tariff rates prescribed in Chapter 98 of this Circular. When handling customs procedures, the declarant must declare classification according to the corresponding eight-digit code belonging to Section I of Appendix II prescribed in Chapter 98 and note the code according to Section II Chapter 98 beside it.

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

The preferential import tax on used motor vehicles imported is stipulated as follows:

1. Passenger cars with up to 15 seats (including the driver) belonging to subheadings 87.02 and 87.03 shall apply the import tariff rate as prescribed in Decision No. 36/2011/QĐ-TTg dated June 29, 2011 of the Prime Minister on the import tariff rate for passenger cars with up to 15 seats imported second-hand and guiding documents of the Ministry of Finance.

2. The preferential import tariff rate for passenger cars with more than 15 seats (including the driver) belonging to subheading 87.02 and cargo vehicles with a total weight not exceeding five tons belonging to subheading 87.04 (excluding refrigerated trucks, waste collection trucks equipped with a compactor, concrete mixer trucks, armored trucks for transporting valuable goods; cement tank trucks and mud trucks with detachable tanks that can be raised and lowered) is 150%.

3. The preferential import tariff rate for other types of passenger cars and cargo vehicles belonging to subheadings 87.02, 87.03, and 87.04 is 1.5 times the preferential import tariff rate of new passenger cars and cargo vehicles of the same type belonging to subheadings 87.02, 87.03, and 87.04 prescribed in Section I of Appendix II - The Preferential Import Tariff Schedule According to the List of Taxable Goods promulgated together with this Circular.

State-owned enterprises that have been assigned by the Ministry of Agriculture and Rural Development to conduct offshore wind power project surveys before the effective date of this Circular shall continue to implement according to the assigned documents; any new matters arising after the effective date of this Circular shall be implemented in accordance with the provisions of this Circular.

1. THIS CIRCULAR SHALL TAKE EFFECT FROM JANUARY 1, 2013.

2. This Circular abolishes:

a) Circular No. 157/2011/TT-BTC dated November 14, 2011 of the Ministry of Finance prescribing the tariff rates of the Export Tariff Schedule and the Preferential Import Tariff Schedule According to the List of Taxable Goods;

b) Circular No. 67/2012/TT-BTC dated April 27, 2012 of the Ministry of Finance adjusting the preferential import tariff rate for stainless steel bars and rods belonging to subheading 7222.30.10 in the Preferential Import Tariff Schedule;

c) Circular No. 89/2012/TT-BTC dated May 30, 2012 of the Ministry of Finance amending the preferential import tariff rate for coke and semi-coke belonging to heading 2704 in the Preferential Import Tariff Schedule;

d) Circular No. 100/2012/TT-BTC dated June 20, 2012 of the Ministry of Finance guiding the implementation of preferential import tariff rates for certain liquefied petroleum gas (LPG) products belonging to heading 2711 in the Preferential Import Tariff Schedule;

đ) Circular No. 114/2012/TT-BTC dated July 18, 2012 of the Ministry of Finance amending the export tariff rate for coconuts belonging to heading 0801 in the Export Tariff Schedule;

e) Circular No. 119/2012/TT-BTC dated July 20, 2012 of the Ministry of Finance amending and supplementing Circular No. 157/2011/TT-BTC dated November 14, 2011 of the Ministry of Finance promulgating the Export Tariff Schedule and the Preferential Import Tariff Schedule According to the List of Taxable Goods;

g) Circular No. 148/2012/TT-BTC dated September 11, 2012 of the Ministry of Finance guiding the implementation of preferential import tariff rates for certain products belonging to heading 2710 in the Preferential Import Tariff Schedule;

h) Circular No. 154/2012/TT-BTC dated September 18, 2012 of the Ministry of Finance amending the preferential import tariff rate for certain products belonging to codes 2815.11.00 and 2842.10.00 in the Preferential Import Tariff Schedule;

i) Circular No. 169/2012/TT-BTC dated October 11, 2012 of the Ministry of Finance amending the export tariff rate for coal belonging to heading 27.01 in the Export Tariff Schedule;

l) Circular No. 170/2012/TT-BTC dated October 19, 2012, of the Ministry of Finance amending the preferential import tax rate for goods under tariff code 3909.10.10 and tariff code 3909.20.10 in the Preferential Import Tariff Schedule.

m) Circular No. 208/2012/TT-BTC dated November 30, 2012, of the Ministry of Finance amending the preferential import tax rate for aviation fuel and aircraft fuel belonging to subheading 2710 in the Preferential Import Tariff Schedule.

n) Other regulations of the Ministry of Finance on export taxes and preferential import taxes that conflict with 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 new document from the date the new document takes effect. /./