Decision No. 1944/1998/QD-BTC On the Issuance of Preferential Import Tax Rates Based on Domestic Content Ratio for Machinery - Electrical - Electronics Products and Parts

Pursuant to …;

Regarding the issuance of preferential import tax rates based on domestic content ratios for products and parts in the mechanical-electrical-electronic industry.

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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 for 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 Decree 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 Export Tax, Import Tax Law No. 04/1998/QH10 dated May 20, 1998 of the National Assembly;

Pursuant to the opinions of the Prime Minister expressed 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 ratios for products;

After consulting the relevant ministries and sectors;

Pursuant to …;

Article 1. Issued herewith are the preferential import tax rates based on domestic content ratios for products and parts in the mechanical-electrical-electronic industry. (For automobiles, the current regulations shall continue to apply and are not within the scope of this Decision).

Article 2. For products that have been specified under the loose form standards SKD, CKD, IKD, enterprises may choose to apply either the import tax rate based on the domestic content ratio or the import tax rate based on the loose form standards SKD, CKD, IKD, but the maximum period allowed is until December 31, 2000. As of January 1, 2001, all will be uniformly implemented according to the provisions of this Decision.

Article 3. For products and parts without specified assembly 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 implementing the tax rate based on the 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 in Vietnam, if enterprises still use imported components to produce and assemble these products and parts, they shall not be eligible for the import tax rate based on the 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.