Decision No. 1944/1998/ND-BTC on the issuance of preferential import tax rates based on domestic content ratio for products and spare parts in the mechanical-electronic industry.

Pursuant to …;

OF THE MINISTRY OF FINANCE NUMBER 1944/1998/QT/BTC DATED DECEMBER 25, 1998 ON THE ISSUANCE OF REGULATIONS ON IMPORT DUTY RATES FOR PREFERENTIAL IMPORT DUTIES BASED ON DOMESTIC CONTENT RATIO FOR PRODUCTS AND PARTS IN THE MECHANICAL - ELECTRIC - ELECTRONIC INDUSTRY

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 Goods Categories issued together with Resolution No. 63/NQ-UBTVQH10 dated October 10, 1998 of the Standing Committee of the National Assembly, Term X;
Pursuant to Article 1 of Resolution No. 94/1998/NĐ-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 of the National Assembly;
Pursuant to the opinions of the Prime Minister in Circulars No. 4830/KTTH dated September 24, 1998; No. 1440/CP-KTTH dated November 7, 1998 of the Government regarding tax policies based on domestic content ratio for products;
After consulting the opinions of relevant ministries and sectors;

Pursuant to …;

Article 1.

Issued herein are the preferential import duty rates based on domestic content ratio for products and parts in the mechanical - electric - electronic industry. (For automobiles, the current regulations shall continue to apply and they are not within the scope of this Decision).

Article 2.

For products that have been specified with standards for unassembled kits (SKD), semi-knocked down kits (CKD), and imported kits (IKD); enterprises may choose to apply either the preferential import duty rate based on domestic content ratio or the preferential import duty rate based on unassembled kit standards (SKD, CKD, IKD), but the maximum period allowed is until December 31, 2000. From January 1, 2001, the unified application of the provisions set forth in this Decision shall be implemented.

Article 3. For products and parts without specified assembled kit standards (SKD, CKD, IKD) currently being implemented under the temporary provisions of Circular No. 50A TC/TCT dated July 31, 1997 of the Ministry of Finance, enterprises may continue to implement Circular No. 50A TC/TCT until June 30, 1999, or switch immediately to the preferential import duty rate based on domestic content ratio. As of July 1, 1999, Circular No. 50A TC/TCT ceases to be effective.

Article 4.

For products and parts where certain components must be produced domestically, if enterprises still use imported components to produce and assemble these products and parts, they shall not be eligible for the preferential import duty rate based on domestic content ratio.

Article 5.

This Decision takes effect and shall be applied to customs declarations for imported goods registered with customs authorities starting from January 1, 1999.

PREFERENTIAL IMPORT DUTY RATES BASED ON DOMESTIC CONTENT RATIO FOR PRODUCTS AND PARTS IN THE MECHANICAL - ELECTRIC - ELECTRONIC INDUSTRY
(Issued together with Decision No. 1944/1998/QT/BTC dated December 25, 1998 of the Minister of Finance)

1. Motorcycles and automobile parts

1.1. Motorcycles (preferential import duty rate for complete units; 60%)

1.2. Automobile and motorcycle parts

2. Electronic products and parts:

2.1. Electronic products:

2.2. Parts

3. Mechanical - Electric products and parts

3.1. Products

3.2. Parts