Circular No. 26-TC/TCT guides the examination for exemption from import tax on materials and passenger cars for foreign-invested enterprises.

CIRCULAR

OF THE MINISTRY OF FINANCE NO. 26 TC/TCT ON MAY 15, 1997 GUIDING THE EXEMPTION FROM IMPORT DUTY FOR RAW MATERIALS AND PASSENGER CARS FOR ENTERPRISES WITH FOREIGN INVESTMENT CAPITAL

Pursuant to Article 1 of the Law amending and supplementing certain provisions of the Law on Export Duties and Import Duties;

Pursuant to Articles 13 and 17 of Decree No. 54/CP dated August 28, 1993 of the Government guiding detailed implementation of the Law on Export Duties and Import Duties and the Law amending and supplementing certain provisions of the Law on Export Duties and Import Duties;

Pursuant to the directive of the Prime Minister in Circular No. 716/KTTH dated February 17, 1997 of the Government regarding import duties for raw materials and passenger cars for enterprises with foreign investment capital;

The Ministry of Finance guides the implementation of the examination and exemption from import duty on raw materials and passenger cars for forms of investment under the Law on Foreign Investment in Vietnam as follows:

I. SCOPE OF APPLICATION:

1. Objects eligible for examination and exemption from payment of import duties:

- Enterprises with foreign investment capital including joint ventures and wholly foreign-owned enterprises established according to the Law on Foreign Investment in Vietnam.

- Foreign parties engaging in business cooperation based on a business cooperation contract under the Law on Foreign Investment in Vietnam.

2. Goods eligible for examination and exemption from import duties:

Raw materials, passenger cars (within the limits specified in Appendix 7 of Circular No. 215 UB/LXT dated February 8, 1995 of the State Committee on Cooperation and Investment) imported to invest in basic construction projects forming enterprises or creating fixed assets for implementing business cooperation contracts.

II. CONDITIONS AND PROCEDURES FOR EXAMINATION OF IMPORT DUTY EXEMPTION:
IMPORT DUTY:

1. Conditions for examination of import duty exemption:

- Enterprises eligible for examination and exemption from import duties under Article 13 of Decree No. 54/CP dated August 28, 1993 and Article 76 of Decree No. 18/CP dated April 16, 1993 of the Government shall continue to be eligible for examination and exemption from import duties on raw materials and passenger cars until July 1, 1997 if they meet the following conditions:

- An investment license issued by the Ministry of Planning and Investment (or the State Committee on Cooperation and Investment or the Ministry of Trade for projects previously approved) before November 23, 1996.

- A customs declaration form for imported goods registered with the Customs Office handling import procedures (in accordance with regulations of the General Department of Customs) until July 1, 1997.

2. Procedures for examination and exemption from import duties: shall be carried out in accordance with Circular No. 72A TC/TCT dated August 30, 1993 and Circular No. 20 TC/TCT dated March 16, 1995 of the Ministry of Finance.

III. IMPLEMENTATION:

The General Department of Customs shall direct and guide the Customs Offices of provinces and cities to implement procedures for exemption from import duties based on the above guidance. All other provisions shall continue to be implemented in accordance with Circular No. 72A TC/TCT dated August 30, 1993 and Circular No. 20 TC/TCT dated March 16, 1995 of the Ministry of Finance. All imported goods not meeting the specified conditions or having customs declarations registered after July 1, 1997 shall be implemented in accordance with Decree No. 12/CP dated February 18, 1997 of the Government guiding detailed implementation of the Law on Foreign Investment in Vietnam.

During the course of implementation, any difficulties should be promptly reported to the Ministry of Finance for specific resolution.