This circular guides on exempting special consumption tax for air conditioning systems imported to be assembled into passenger vehicles with 25 seats or more, applicable to production facilities listed in the key industries directory. The tax exemption period extends until the end of 2003.
Scope of application
Production and assembly units manufacturing passenger vehicles with 25 seats or more
Key points
- Passenger vehicle manufacturers with 25 seats or more are exempt from special consumption tax when importing air conditioning systems (Article 1)
- Customs authorities shall base on the list of materials and parts specified by the Ministry of Transport to confirm the quantity of air conditioning systems eligible for tax exemption (Article 2)
- Enterprises must use the imported air conditioning systems subject to tax exemption exclusively as intended; otherwise, they will be liable for recovery of taxes paid and penalties according to regulations (Article 2)
- In cases where enterprises have already paid taxes on imported air conditioning system consignments from August 14, 2002, until the date this circular is issued, such payments shall be offset or refunded in accordance with regulations (Article 3)
- The period for special consumption tax exemption extends from August 14, 2002, to December 31, 2003
🌐 Social impact of this document
- Passenger vehicle manufacturers benefit from reduced input costs due to the exemption of special consumption tax
- Customs and tax authorities have additional responsibilities in confirming and monitoring the use of imported air conditioning systems
❓ Frequently asked questions
Which enterprises are eligible for tax exemption?
Production facilities manufacturing passenger vehicles with 25 seats or more listed in the key industries directory.
Until when does the tax exemption period extend?
Until December 31, 2003
Are taxes already paid eligible for refund?
Yes, enterprises will be entitled to offset or receive refunds of taxes paid according to regulations.
Full text
NOTIFICATION
OF THE MINISTRY OF FINANCE NUMBER 2868TC/TCT DATED MARCH 28, 2003
REGARDING SPECIAL CONSUMPTION TAX FOR AIR CONDITIONING SYSTEMS IMPORTED TO BE ASSEMBLED INTO PASSENGER CARS
INSTALLATION PURPOSE
Respected: - Ministries, ministerial-level agencies, and government agencies
- People's Committees of provinces and centrally-run cities
- Production and assembly facilities for passenger cars
Pursuant to Notification No. 944/CP-KTTH dated August 14, 2002 of the Government regarding exemption from special consumption tax on air conditioning systems imported specifically for installation in passenger vehicles with 25 seats or more, the Ministry of Finance hereby provides detailed guidance on the scope of application and procedures for exempting such taxes as follows:
1. Production facilities manufacturing passenger cars with 25 seats or more, which are key industrial products according to Decision No. 1223/QĐ-TTg dated September 11, 2001 of the Prime Minister, and benefiting from development support policies stipulated in Decision No. 37/2000/QĐ-TTg dated March 24, 2000 of the Prime Minister, are eligible for exemption from special consumption tax when importing air conditioning systems to be installed into such vehicles from August 14, 2002 until December 31, 2003.
2. Procedures for exempting special consumption tax on imported air conditioning systems to be assembled into passenger cars with 25 seats or more are as follows:
- Customs authorities at border gates shall base their decisions on the list of materials, components, and spare parts that cannot be produced domestically but are necessary for manufacturing passenger vehicles with 25 seats or more, as specified by the Ministry of Transport, and confirmations from the Ministry of Transport regarding the quantity of air conditioning systems required to be imported for tax exemption purposes. They shall grant such exemptions to production and assembly facilities for passenger cars with 25 seats or more on a per-import basis.
- Tax authorities directly managing enterprises are responsible for monitoring the use of specialized air conditioning systems that have been exempted from tax for installation in passenger vehicles with 25 seats or more. If misuse is detected, they shall impose penalties and recover the special consumption tax according to regulations.
3. Production facilities manufacturing passenger cars with 25 seats or more importing air conditioning systems as stipulated in points 1 and 2 above are eligible for exemption from special consumption tax when importing such systems from August 14, 2002 until December 31, 2003, the date on which Notification No. 944/CP-KTTH dated August 14, 2002 of the Government took effect. In cases where enterprises have already paid special consumption tax for imported air conditioning systems from August 14, 2002 to the date this notification was issued, they may offset such payments against future taxes due on similar imports. If there are no corresponding taxes to offset, the amount paid will be refunded according to regulations.
The Ministry of Finance hereby informs relevant agencies for their knowledge and implementation.
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