Circular No. 207/2012/TT-BTC guides the determination of the sale price for confiscated quality tobacco products subject to re-export by enterprises and the management and utilization of revenue from the re-export of tobacco products according to Decision No. 1112/QĐ-TTg dated August 21, 2012 of the Prime Minister.

 

 

CIRCULAR

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Pursuant to Decree No. 60/2003/NĐ-CP dated June 6, 2003 of the Government detailing and guiding the implementation of the Law on State Budget;

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;

PART I. GENERAL PROVISIONS

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

This Circular guides the determination of the selling price of quality tobacco products seized from illegal imports for enterprises to re-export and the management and utilization of revenue from the re-export of such tobacco products according to Decision No. 1112/QĐ-TTg dated August 21, 2012 of the Prime Minister on piloting the re-export of quality tobacco products seized from illegal imports.

1. The Central Steering Committee against Smuggling, Counterfeit Goods, and Commercial Fraud and its permanent working body (referred to as the Central Steering Committee 127); the Provincial Steering Committee against Smuggling, Counterfeit Goods, and Commercial Fraud and its permanent working body (referred to as the Local Steering Committee 127).

Article 1. Scope of Application

2. The Department of Finance at the province or centrally administered city where the enterprise designated by the Ministry of Industry and Trade to re-export quality tobacco products seized from illegal imports has its headquarters (hereinafter referred to as the Department of Finance).

Article 2. Applicability

3. The agency responsible for coordination as stipulated in Section II, Guidance on Piloting the Re-Export of Quality Tobacco Products Seized from Illegal Imports issued together with Decision No. 5500/QĐ-BCT of the Ministry of Industry and Trade dated September 20, 2012.

4. Anti-smuggling forces in each province or centrally administered city (Police, Customs, Market Management, Border Guard...).

5. Enterprises designated by the Ministry of Industry and Trade to re-export quality tobacco products seized from illegal imports (hereinafter referred to as the Enterprise).

PART II. DETERMINATION OF THE SELLING PRICE OF QUALITY TOBACCO PRODUCTS SEIZED FROM ILLEGAL IMPORTS FOR RE-EXPORT

Article 3. Procedures and formalities for determining the selling price of quality tobacco products seized from illegal imports sold to enterprises for re-export

1. The authority responsible for determining the price:

The Department of Finance at the location where the Enterprise has its main office is the authority responsible for determining and notifying the selling price of quality tobacco products seized from illegal imports to the Enterprise for re-export. 2. Procedures and formalities for determining the selling price of quality tobacco products seized from illegal imports:

a) The Enterprise builds specific purchase prices for each brand and type of cigarette pack and sends them to the Department of Finance;

b) After receiving the document from the Enterprise requesting the determination of the price of quality tobacco products seized from illegal imports, the Department of Finance takes the lead, coordinates with the Local Steering Committee 127 and anti-smuggling forces in the locality to examine, determine, and notify the selling price of seized illegal tobacco imports to the Enterprise within five working days from the date the Department of Finance receives the request from the Enterprise. The Department of Finance is responsible for notifying the price and retaining the price determination file including: Minutes of the meeting to determine the price of relevant units, the price request document of the Enterprise, and other related documents (if any).

If necessary, the Department of Finance may establish a Price Determination Council for quality tobacco products seized from illegal imports for the Enterprise to re-export (hereinafter referred to as the Price Determination Council).

c) The members of the Price Determination Council for quality tobacco products seized from illegal imports for the Enterprise to re-export include: The leader of the Department of Finance as the Chairman of the Council, representatives of the specialized department managing prices under the Department of Finance, representatives of the permanent working body of the Local Steering Committee 127, representatives of anti-smuggling agencies in the locality, and organizations related to the purchase and sale of seized illegal tobacco imports.

The Price Determination Council is responsible for determining the selling price of tobacco within ten working days from the date the Department of Finance receives the request document from the Enterprise. The Department of Finance issues a Notice of Selling Price of Tobacco based on the conclusion of the Price Determination Council, retains the price determination file including: Minutes of the Price Determination Council meeting, the price request document of the Enterprise, and other related documents (if any).

3. The list of selling prices of quality tobacco products seized from illegal imports for the Enterprise to re-export notified by the Department of Finance shall be effective until the end of 2013.

In case the selling price of tobacco according to the re-export contract between the Enterprise and the foreign importer varies by more than 20% compared to the selling price of tobacco according to the re-export contract at the time when the Department of Finance issues the Notice of Selling Price, or in case new types of tobacco not included in the Notice of Selling Price arise, the Enterprise shall be responsible for building new purchase prices for each brand and type of tobacco and requesting the Department of Finance to determine the selling price of quality tobacco products seized from illegal imports for the Enterprise to re-export. The procedures and formalities for determining the price of tobacco shall be carried out according to the guidance provided in Clause 2 of this Article.

The Valuation Council is responsible for determining the selling price of cigarettes within ten working days from the date when the Department of Finance receives the request document from the Enterprise. The Department of Finance shall issue a Selling Price Notification based on the conclusion of the Valuation Council, and retain the pricing determination file including: the minutes of the Valuation Council meeting, the pricing request document from the Enterprise, and other related documents (if any).

3. The Selling Price List of smuggled cigarette stocks with remaining quality to be re-exported by the Enterprise, as announced by the Department of Finance, shall remain effective until the end of 2013.

In cases where the selling price of cigarettes under the re-export contract between the Enterprise and the foreign importer fluctuates by more than 20% compared to the selling price of cigarettes under the re-export contract at the time the Department of Finance issues the Selling Price Notification, or in cases where new types of cigarettes not included in the Selling Price Notification arise, the Enterprise shall be responsible for establishing new purchase prices for each brand and type of cigarette and requesting the Department of Finance to determine the selling price of smuggled cigarette stocks with remaining quality to be re-exported by the Enterprise. The procedures and formalities for determining the cigarette price shall be carried out in accordance with the guidance provided in Clause 2 of this Article.

Article 4. Competence and responsibilities of the leading agency in determining prices and related parties:

1. Department of Finance:

- Lead and coordinate with relevant agencies to determine the selling price for confiscated quality tobacco products that were illegally imported for the enterprise to re-export; if necessary, establish a Valuation Committee to determine the selling price for confiscated quality tobacco products for re-export by the enterprise.

- Based on the conclusion regarding the price level agreed upon by the units, the Department of Finance announces the selling price for confiscated quality tobacco products for re-export by the enterprise and sends the Selling Price Notice to the Central Steering Committee 127 and local Steering Committees 127 for notification to the lead agencies to be aware and implement.

- Archive the pricing determination file including: Minutes of the meeting to determine the price or Minutes of the Valuation Committee; the price proposal from the enterprise and other related documents (if any).

2. Enterprise:

- Develop specific prices for each brand and type of tobacco product and submit to the Department of Finance; responsible for the reasonableness of the reported data and documents.

- Implement the purchase of tobacco products according to the Selling Price Notice issued by the Department of Finance.

3. Lead Agencies:

Local lead agencies base on the Selling Price Notice issued by the Department of Finance to sign purchase and sale contracts with the enterprise and implement the handover of tobacco products after the enterprise has provided proof of full payment into the temporary account opened by the lead agency at the State Treasury.

4. Related Agencies:

Lead agencies, enterprises, and related agencies and units have the responsibility to provide information as requested by the Department of Finance and must bear full responsibility for the truthfulness and accuracy of the source and information provided.

Chapter III. MANAGEMENT AND USE OF REVENUE FROM THE RE-EXPORT OF QUALITY TOBACCO PRODUCTS ILLEGALLY IMPORTED AND CONFISCATED

Article 5. Principles for managing and using revenue from the re-export of quality tobacco products illegally imported and confiscated

1. After classifying confiscated illegally imported tobacco products together with the lead agency, the enterprise signs a purchase and sale contract for re-exporting quality confiscated illegally imported tobacco products with the lead agency and then proceeds to deposit funds into the temporary account of the local lead agency opened at the State Treasury.

2. The revenue obtained from the re-export of tobacco products, after covering the following expenses in order, shall be used entirely to serve the anti-smuggling efforts of the designated anti-smuggling forces implementing the re-export of quality confiscated illegally imported tobacco products:

- Expenses to support the conditions for concentrating and processing confiscated illegally imported tobacco products, including costs for appraisal and classification of re-exportable quality tobacco products (if applicable); transaction and signing fees with the enterprise for the re-export of confiscated quality illegally imported tobacco products (if applicable); transportation costs for confiscated quality illegally imported tobacco products to the delivery location for the enterprise (if applicable);

- Costs for destroying low-quality confiscated illegally imported tobacco products that the lead agency receives but cannot re-export.

- Deduct 10% from the remaining budget (after deducting costs for re-export processing and destruction of tobacco products) for the Steering Committee 127, including 3% for the Central Steering Committee 127 and 7% for the local Steering Committee 127 of the lead agency.

3. The lead agency bases on the number of confiscated illegally imported tobacco products handed over (including both re-exportable quality tobacco products and destroyed tobacco products) to allocate the remaining revenue from the re-export of quality confiscated illegally imported tobacco products to the designated anti-smuggling forces.

4. The financial support stipulated in this Circular does not replace the financial sources currently applied for anti-smuggling operations, trade fraud, and counterfeit goods.

5. This financial source may not be used to fund unrelated activities.

6. Units using the financial resources must track and record separately this support fund. Unspent funds can be carried forward to the next year for continued use in accordance with this Circular.

Article 6. Using Revenue from the Re-Export of Quality Tobacco Products Illegally Imported and Confiscated

1. For anti-smuggling forces:

a) Expenses to support the conditions for concentrating and processing confiscated illegally imported tobacco products, including costs for appraisal and classification of re-exportable quality tobacco products (if applicable);

b) Transaction and signing fees with the enterprise for the re-export of confiscated quality illegally imported tobacco products (if applicable);

c) Transportation costs for confiscated quality illegally imported tobacco products to the delivery location for the enterprise (if applicable);

d) Expenses to support the collection of information, inspection, verification, arrest, overtime pay, and additional hours;

đ) Expenses for purchasing equipment to directly support anti-smuggling operations in accordance with regulations;

e) Rewards for collectives and individuals with outstanding achievements in anti-smuggling work.

2. For the Central Steering Committee 127 and local Steering Committees 127:

a) Expenses to support the development of plans, strategies, and combat proposals for anti-smuggling;

b) Expenditures for organizing specialized conferences, seminars, and training sessions to implement plans and coordinate measures among ministries, sectors, and relevant agencies;

c) Expenses to support the implementation of publicity, mobilization, and dissemination of laws on anti-smuggling;

d) Expenses to support regular or spot inspections for anti-smuggling;

đ) Expenses to support mid-term and final evaluations, rewards, and encouragement for organizations and individuals with outstanding achievements in anti-smuggling;

e) Training and professional development expenses for anti-smuggling forces.

3. Heads of agencies and units specified in Clause 1 and Clause 2 of this Article decide on expenditures based on standards, quotas, and systems prescribed by competent state agencies. In cases where expenditure items do not have prescribed standards, quotas, and systems by competent state agencies, the heads of agencies and units specified in Clause 1 and Clause 2 of this Article decide on expenditures but must ensure compliance with current state financial management systems and bear responsibility for their decisions.

CHAPTER IV. IMPLEMENTATION ORGANIZATION

Article 7. Effectiveness

This Circular takes effect concurrently with the effective date of Decision No. 1112/QĐ-TTg of the Prime Minister on piloting the re-export of seized smuggled cigarettes that are still in quality condition, which is August 21, 2012, and shall be applied until December 31, 2013.

During implementation, if any difficulties arise, it is recommended thatrelevant agencies and units promptly report to the Ministry of Finance for study and resolution./.