Circular No. 42/2005/TT-BTC guiding the implementation of Decree No. 48/2005/NĐ-CP dated April 8, 2005 of the Government on reducing import tax rates for certain goods to implement the agreement between Vietnam and Thailand related to Vietnam's suspension of implementing the ASEAN CEPT Agreement for certain motorcycle spare parts and light truck complete vehicles.

CIRCULAR

Guidelines for Implementing Decree No. 48/2005/NĐ-CP dated April 8, 2005

concerning certain spare parts and components of motorcycles and light trucks.

To implement the Protocol on the accession of the Socialist Republic of Vietnam to the ASEAN Trade in Goods Agreement (CEPT) to establish the ASEAN Free Trade Area (AFTA), signed in Bangkok on December 15, 1995;

To implement the Protocol on the Implementation of the Temporary Exclusion List under the ASEAN CEPT Program, signed in Singapore on November 23, 2000;

To enforce Decree No. 48/2005/NĐ-CP dated April 8, 2005 of the Government on reducing import tax rates for certain goods to implement the agreement between Vietnam and Thailand related to Vietnam's suspension of implementation of the ASEAN CEPT Agreement for certain motorcycle parts and components and light trucks.

I. Scope and Conditions for Application

Imported goods to be subject to the preferential tariff rate CEPT (hereinafter referred to as the CEPT rate) specified in Article 1 of Decree No. 48/2005/NĐ-CP dated April 8, 2005 of the Government must meet the following conditions:

1. They must be included in the list of goods and tariff rates issued together with Decree No. 48/2005/NĐ-CP dated April 8, 2005 of the Government.

2. They must be imported directly from the Kingdom of Thailand into Vietnam according to the direct transport principle stipulated in Decision No. 1420/2004/QĐ-BTM dated October 4, 2004 of the Minister of Trade.

The Ministry of Finance hereby provides guidance as follows:

3. They must satisfy the ASEAN origin requirement, confirmed by an ASEAN Certificate of Origin Model D (C/O Model D) issued by the Ministry of Trade of the Kingdom of Thailand or an authorized agency of the Kingdom of Thailand, as provided in Part III of this Circular.

4. They must be declared in customs declarations for imported goods registered with the Customs Authority from April 1, 2005 to December 31, 2007.

II. Import Tariff Rates Applied

1. The preferential tariff rate CEPT applicable to imported goods eligible for the CEPT rate under this Circular's Part I shall be the CEPT rate for each year, corresponding to the CEPT rate column of that year, as specified in the list of goods and tariff rates issued together with Decree No. 48/2005/NĐ-CP dated April 8, 2005 of the Government.

2. The CEPT rate specified in Part I of this Circular applies to goods imported from the Kingdom of Thailand.

Imported goods from other ASEAN member countries (including Brunei Darussalam; the Kingdom of Cambodia; the Republic of Indonesia; the Lao People's Democratic Republic; Malaysia; the Union of Myanmar; the Republic of the Philippines; and the Republic of Singapore) listed in the goods list issued together with Decree No. 48/2005/NĐ-CP dated April 8, 2005 of the Government continue to apply the preferential tariff rates issued together with Decrees No. 78/2003/NĐ-CP dated July 1, 2003, No. 151/2004/NĐ-CP dated August 5, 2004, and No. 13/2005/NĐ-CP dated February 3, 2005 of the Government if they meet the conditions for applying the CEPT rate.

III. Certificate of Origin and Verification of Certificate of Origin

1. C/O Model D must bear a signature and stamp consistent with the official signature and stamp model issued by the Ministry of Trade of the Kingdom of Thailand or an authorized agency of the Kingdom of Thailand.

2. Rules for goods to be recognized as having ASEAN origin are set out in the Regulation on Issuing ASEAN Certificate of Origin Model D of Vietnam issued together with Decision No. 1420/2004/QĐ-BTM dated October 4, 2004 and Decision No. 151/2005/QĐ-BTM dated January 27, 2005 of the Minister of Trade.

3. In case of doubt about the authenticity and accuracy of C/O Model D, the Customs Authority has the right:

- To request a recheck of C/O Model D. The Customs Authority will send a request to the Ministry of Trade of the Kingdom of Thailand or the issuing authority to seek confirmation.

- To suspend the application of the CEPT rate and temporarily collect taxes at the preferential or ordinary tariff rates currently in effect.

- To request the importer to provide additional documentation (if available) to prove that the goods indeed have ASEAN origin within the latest period of one year.

- During the waiting period for the recheck results, the procedures for releasing the goods according to the general import regulations shall continue.

- When sufficient documentation proves that the goods have ASEAN origin issued by the Ministry of Trade of the Kingdom of Thailand or an authorized agency, the Customs Authority shall proceed with the procedures to refund the importer the difference between the temporarily collected preferential or ordinary tariff amounts and the amount calculated based on the CEPT rate specified in Decree No. 48/2005/NĐ-CP dated April 8, 2005 of the Government.

The recheck procedures and formalities are carried out in accordance with the Regulation on Issuing ASEAN Certificate of Origin Model D of Vietnam issued together with Decision No. 1420/2004/QĐ-BTM dated October 4, 2004 and Decision No. 151/2005/QĐ-BTM dated January 27, 2005 of the Minister of Trade.

IV. Other Provisions

Goods declared in customs declarations for imported goods registered with the Customs Authority from April 1, 2005 until the effective date of this Circular, which have been taxed at the preferential or ordinary tariff rates, may submit C/O Model D to claim a refund of import duties if they meet the other conditions specified in Part I of this Circular.

Regulations on tax calculation basis, tax collection and payment system, tax exemption and reduction, tax refund, tax recovery, violation handling, and other provisions shall be implemented in accordance with the provisions of the Law on Export Tax and Import Tax and current guiding documents.

The re-examination procedure and process shall be carried out in accordance with the provisions of the ASEAN Certificate of Origin Issuance Regulation of Vietnam - Form D issued together with Decision No. 1420/2004/QĐ-BTM dated October 4, 2004, and Decision No. 151/2005/QĐ-BTM dated January 27, 2005, of the Minister of Trade.

IV. Other Provisions

Goods under import customs declarations registered with the Customs authority from April 1, 2005 to the date this Circular takes effect, which have been taxed at the preferential tariff rate or the ordinary tariff rate, may submit a supplementary Form D Certificate of Origin to claim a refund of import duties if they meet the other conditions specified in Part I of this Circular.

Provisions on tax calculation basis, tax collection and payment regime, tax exemption and reduction regime, tax refund regime, tax recovery, violation handling, and other provisions shall be implemented in accordance with the provisions of the Law on Export Duties and Import Duties and current guiding documents.

V. Implementation

This Circular shall take effect fifteen days after its publication in the Official Gazette.

In the course of implementation, if there are difficulties or obstacles, please promptly reflect them so that the Ministry of Finance can provide supplementary guidance as appropriate./.