Circular No. 31/2016/TT-BTC supplements the item N-Hexane Solvent used in soybean oil and vegetable oil production, rice bran extraction, and rice bran oil into Chapter 98 of the Preferential Import Tariff Schedule.

CIRCULAR

Supplementing the item "N-Hexane Solvent Used in Soybean Oil and Vegetable Oil Dehydration Production, Rice Bran Extract and Rice Bran Oil" to Chapter 98 of the Preferential Import Tariff Schedule
     Pursuant to the Law on Export Tax and Import Tax dated June 14, 2005;
     Pursuant to Resolution No. 295/2007/NQ-UBTVQH12 dated September 28, 2007 of the Standing Committee of the National Assembly regarding the issuance of the Export Tariff Schedule according to the list of taxable goods groups and tax rate ranges for each group. The Preferential Import Tariff Schedule according to the list of taxable goods groups and preferential tax rate ranges for each group;

     Pursuant to Decree No. 87/2010/NĐ-CP dated August 13, 2010 of the Government detailing the implementation of certain provisions of the Law on Export Tax and Import Tax;

     Pursuant to Decree No. 215/2013/NĐ-CP dated December 23, 2013 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;

     At the proposal of the Director of the Department of Tax Policy,

     The Minister of Finance issues this Circular supplementing the item "N-Hexane Solvent Used in Soybean Oil and Vegetable Oil Dehydration Production, Rice Bran Extract and Rice Bran Oil" to Chapter 98 of the Preferential Import Tariff Schedule.

Article 1. Amending and supplementing Item I - Notes and Conditions for Applying Special Preferential Import Tariff Rates at Chapter 98

1. Supplement Clause 1.39 to Point 1 of the Notes of Chapter 98 as follows:

"1.39. Group 98.42: N-Hexane Solvent Used in Soybean Oil and Vegetable Oil Dehydration Production, Rice Bran Extract and Rice Bran Oil"

2. Supplement Subpoint b.10 to Clause 3 of Item I on conditions and procedures for importation to apply special preferential import tariff rates for code 9842.00.00 recorded in Chapter 98 as follows:

"b.10) Goods imported under Group 98.42

b.10.1) Application Conditions:

- Goods imported are items of N-Hexane Solvent Used in Soybean Oil and Vegetable Oil Dehydration Production, Rice Bran Extract and Rice Bran Oil.

- Imported by enterprises producing soybean oil and vegetable oil dehydration, rice bran extract and rice bran oil.

b.10.2) Import Procedures:

b.10.2.1 - Responsibilities of the Customs Declaration Maker:

The Customs Declaration Maker must register the list of goods imported under Group 98.42 (List) with the nearest Customs Office based on the annual import volume consistent with the production capacity/annual usage needs of the factory before importing the first batch of goods. The application dossier submitted to the customs authority issuing the List includes:

A letter requesting issuance of the List, the List of goods, and the Reconciliation Form following the provisions of Clause 5, Article 104 of Circular No. 38/2015/TT-BTC dated March 25, 2015 of the Ministry of Finance on customs procedures; customs inspection and supervision; export tax and import tax; and management of tax refunds for exported and imported goods, where the term "tax exemption" is replaced with "used in soybean oil and vegetable oil dehydration production, rice bran extract and rice bran oil".

In case the List has been registered but requires amendment or supplementation, the Customs Declaration Maker may amend or supplement it provided that they submit relevant documents to the customs authority issuing the List before the first import or before the subsequent import batch with amended or supplemented List to prove that the amendments or supplements are appropriate. The application dossier submitted to the customs authority issuing the List for amendment or supplementation includes:

- A letter requesting issuance of the List;

- The List of goods and the Reconciliation Form.

- A letter requesting issuance of the amended or supplemented List;

- The List of goods and the amended or supplemented Reconciliation Form.

- A letter requesting reissuance of the List and the Reconciliation Form stating the reasons for loss of the List and Reconciliation Form and the declarant's commitment to the accuracy of the declaration content;

- A detailed list of all customs declarations (electronic or paper) of the quantity of goods already imported under the List;

In case the List and the Reconciliation Form are lost, the declarant must submit an application dossier to the customs authority issuing the original List for reissuance, including:

- The original List and Reconciliation Form issued by the customs office handling the last import procedure before loss (one copy with confirmation stamp from the customs office handling the import).

When handling customs procedures, the Customs Declaration Maker shall submit the following documents to the customs office registering the customs declaration:

- The List of goods and the Reconciliation Form registered with the customs authority (handed over to the Customs Declaration Maker) for the customs authority to handle the reconciliation of imported goods.

Annually, no later than the ninetieth day after the end of the fiscal year, the Customs Declaration Maker shall submit a report on the use of the item "N-Hexane Solvent Used in Soybean Oil and Vegetable Oil Dehydration Production, Rice Bran Extract and Rice Bran Oil" to apply the special preferential import tariff rate for the fiscal year according to the provisions of Article 41 of Decree No. 08/2015/NĐ-CP dated January 21, 2015 of the Government and Article 60 of Circular No. 38/2015/TT-BTC dated March 25, 2015 of the Minister of Finance.

- Customs documents as prescribed;

b.10.2.2 - Responsibilities of the Customs Authority:

b.10.2.2.1 - Upon receipt of the List:

- Immediately after receiving the application dossier, the Customs Office where the Customs Declaration Maker registers the List shall be responsible for checking, recording, stamping confirmation on two copies of the List of imported goods and one copy of the Reconciliation Form (keeping one original copy of the List, handing over one original copy of the List along with one original copy of the Reconciliation Form to the Customs Declaration Maker for submission to the customs office handling the import procedures to reconcile actual imported goods and calculate taxes according to Circular No. 38/2015/TT-BTC dated March 25, 2015 of the Minister of Finance and Clause b.10.2.2.2).

b. 10.2.2.1 - Upon receiving the List:

- Immediately after the customs declarant submits the application, the Customs Office where the customs declarant registers the List shall be responsible for checking, establishing a monitoring form, affixing a confirmation stamp on two copies of the List of imported goods and one copy of the advance monitoring form (retaining one original copy of the List, delivering one original copy of the List along with one original copy of the advance monitoring form to the customs declarant to submit to the customs office handling the import procedures for actual deduction of imported goods and calculation of taxes in accordance with Circular No. 38/2015/TT-BTC dated March 25, 2015 issued by the Minister of Finance and point b.10.2.2.2).

- In case the declarant needs to amend or supplement the List and tracking form, the Customs Office where the declarant registered the List shall be responsible for checking, issuing a tracking form, stamping confirmation on two copies of the amended and supplemented Import Goods List and one copy of the amended and supplemented tracking form (retaining one original copy of the List, delivering one original copy of the List along with one original copy of the tracking form to the declarant for presentation to the customs office handling the import procedures to implement the actual deduction of imported goods and tax calculation according to Circular No. 38/2015/TT-BTC dated March 25, 2015 of the Minister of Finance and point b.10.2.2.2).

- In case the declarant loses the List and Tracking Form: based on the declarant's request and confirmation from other local Customs Offices, the customs office where the declarant registered the List shall check specifically and reissue the List and Tracking Form for the item 'N-Hexane Solvent used in soybean oil and vegetable oil production, rice bran extraction, and cooking oil' under group 98.42 that has not yet been imported according to Circular No. 38/2015/TT-BTC dated March 25, 2015 of the Minister of Finance.

The processing time limit of the customs office for registering the List, amending or supplementing the List; reissuing the List shall be carried out in accordance with Article 104 of Circular No. 38/2015/TT-BTC dated March 25, 2015 of the Minister of Finance.

b.10.2.2.2 - When handling import procedures:

Besides the customs procedures as prescribed, the customs office shall base on the customs declaration file, compare with the tracking form to deduct the imported items under group 98.42 that the declarant has actually imported and sign confirmation according to regulations. Retain one copy of the List and the tracking form that have been deducted in the customs declaration file.

Upon completion of the quantity of imported goods recorded in the tracking form, the Head of the Customs Office where the final procedure was conducted shall confirm "all goods under List number ... have been imported" on the adjusted tracking form of the declarant and retain one copy, deliver one copy to the declarant and send the original to the Customs Office that issued the tracking form to carry out inspection of goods that have passed through according to regulations.

In case the Customs Office receiving the registration of the List is also the Customs Office handling the import procedures, after the Head of the Office has confirmed the completion of the quantity of imported goods in the tracking form, the Office retains the original, delivers one copy to the declarant, and sends one copy of the tracking form along with the registration List file to the post-clearance inspection Office to carry out inspection of goods that have passed through according to regulations.

b. 10.2.2.3 - After receiving the original tracking form sent by the Customs Office where the final procedure was conducted, the Customs Office that registered the List and issued the tracking form shall compile all registration files and transfer them to the post-clearance inspection Office as the basis for post-clearance inspection in accordance with the risk management regulations regarding the use of imported goods subject to a specific preferential tariff rate under group 98.42 as stipulated in Article 98 of Decree No. 08/2015/NĐ-CP dated January 21, 2015 of the Government.

In case of improper use, goods under group 98.42 must be taxed at the preferential tariff rate applicable to corresponding codes in Chapter 97 at the time of registering the import goods declaration with the customs authority.

Article 2. Amend and supplement Section II - List of commodity groups and preferential import tariff rates under Chapter 98.

Add group 98.42 - N-Hexane solvent used in the production of soybean oil and vegetable oil, rice bran extract and rice bran oil to Section II - List of commodity groups and preferential import tariff rates under Chapter 98 as follows:

Article 3. Effectiveness

This Circular takes effect from April 8, 2016./.