Joint Circular No. 54/2003/TTLT-BTC-BTM guides the implementation of import tax reduction for goods of Lao origin as stipulated in the Vientiane Agreement between the Government of the Socialist Republic of Vietnam and the Government of the Lao People's Democratic Republic signed on August 13, 2002.

JOINT CIRCULAR

Guidelines for implementing the reduction of import duties on goods of Lao origin as stipulated in the Vientiane Agreement between the Government of the Socialist Republic of Vietnam and the Government of the Lao People's Democratic Republic signed on August 13, 2002.

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Pursuant to the Vientiane Agreement between the Government of the Socialist Republic of Vietnam and the Government of the Lao People's Democratic Republic on facilitating the movement of people, vehicles, and goods across the border and encouraging trade and investment cooperation between Vietnam and Laos signed on August 13, 2002;

The Ministry of Finance and the Ministry of Trade issue guidelines for reducing import duties by 50% on goods of Lao origin imported into Vietnam as follows:

I- SCOPE OF APPLICATION

A. Goods produced in the Lao People's Democratic Republic and imported into Vietnam shall be subject to an import duty rate equal to 50% of the preferential tariff rate specified in the Preferential Import Tariff Schedule if they meet the following conditions:

1- They must be included in the List of Lao-origin goods eligible for a 50% reduction in preferential import duties when imported into Vietnam under the Agreement or annual agreement between the two governments.

The quantity and value of specific Lao-origin goods eligible for a 50% reduction in import duties annually shall be based on the List of Lao-origin goods eligible for a 50% reduction in preferential import duties when imported into Vietnam under the Agreement or annual agreement between the two governments, or according to the notification of the Ministry of Trade based on the agreed quantities with the Lao Ministry of Trade.

Attached to this Circular is the List of goods of Lao origin eligible for a 50% reduction in import duties when imported into Vietnam in 2003.

In cases where goods are eligible for a 50% reduction in import duties and also qualify for preferential treatment under the ASEAN Preferential Tariff (CEPT) rates, the lower of the two rates shall apply.

2- They must have a Certificate of Origin (C/O) issued by the Ministry of Trade or Chamber of Commerce or Provincial Trade Departments in Vientiane and Sayaboury Special Zone of Laos.

3- They must have a confirmation certificate that the goods belong to the program of tax benefits under the agreement between the two governments, issued by the Ministry of Trade or Provincial Trade Departments in Vientiane and Sayaboury Special Zone of Laos.

4- They must be imported through officially opened border gates between Vietnam and Laos.

B. Procedures for presenting and checking the Certificate of Origin (C/O) for goods:

Enterprises importing Lao goods listed in the attached Circular wishing to enjoy the tax reduction benefit must submit the original Certificate of Origin along with the required import documents to the Customs authority when processing import procedures.

If an enterprise does not have a C/O at the time of import declaration, the Customs authority will apply the general tariff rate or the preferential CEPT rate (if eligible) and accept deferred submission of the C/O, with a maximum period of 30 days from the date of submitting the Customs declaration. After submitting the C/O, the enterprise will be considered for refund of the excess tax paid (the difference between the tax paid at the general tariff rate or preferential CEPT rate and the tax calculated at the reduced rate of 50% of the preferential import tariff rate specified in the Import Tariff Schedule).

Import enterprises are responsible for the legality and validity of the submitted C/O under the law. If fraud is detected regarding the C/O, the importing enterprise will be dealt with according to current laws.

When there is suspicion about the authenticity and accuracy of the Certificate of Origin, the Customs authority may request the enterprise to provide supporting documents. The maximum time allowed for submitting additional documents is 30 days from the date of submitting the C/O. While awaiting the results of the recheck, the 50% reduction in the tariff rate will not be applied temporarily, and the general tariff rate or preferential CEPT rate (if eligible) will be applied. At the same time, customs clearance procedures will continue for these goods if they are not prohibited or restricted imports and there is no suspicion of false declaration. If the consignee can prove that the goods are of Lao origin, they will be considered for refund of the excess tax paid (the difference between the tax paid at the general tariff rate or preferential CEPT rate and the tax calculated at the reduced rate of 50% of the preferential import tariff rate specified in the Import Tariff Schedule).

II- OTHER PROVISIONS

1) The price for calculating the 50% reduction in preferential import duties on goods of Lao origin imported into Vietnam is determined as the actual payment price recorded in the foreign trade sales contract signed between companies of the two countries, provided that the foreign trade sales contract meets the conditions specified in Section 1, Part III of Circular No. 08/2002/TT-BTC dated January 23, 2002, issued by the Ministry of Finance guiding the application of prices for calculating import duties based on foreign trade sales contracts. For foreign trade sales contracts that do not meet the conditions for calculating taxes based on contracts, the price for calculating the 50% reduction in tax is the minimum price set by the Ministry of Finance.

2) Provisions concerning the basis for taxation, tax collection and payment system, accounting for tax revenue, reporting on tax collection and payment results, tax reduction system, tax refund system, tax recovery, and handling violations shall be implemented in accordance with the provisions of the Law on Export Duties and Import Duties and current guiding documents.

III- IMPLEMENTATION

Every three months (no later than the 15th day of the next month) and annually (no later than February 15 of the following year), the General Department of Customs shall compile and report to the Ministry of Trade and the Ministry of Finance on the quantity and value (based on the import duty calculation price) of goods imported under the provisions of this Circular. In cases where it is found that Laos has issued confirmation certificates exceeding the agreed quantities, the Ministry of Trade will work with the Lao Ministry of Trade to take appropriate measures to address the situation.

This Circular shall take effect fifteen days from the date of its publication in the Official Gazette and shall apply to customs declarations for imported goods registered with the Customs authorities from January 9, 2003 onwards (the date on which the Agreement on Economic, Cultural, Scientific and Technological Cooperation between the Government of the Socialist Republic of Vietnam and the Government of the Lao People's Democratic Republic in 2003 comes into force).

Cases of imported goods originating from Laos that are subject to a 50% reduction in import tax, with customs declarations registered with the Customs authorities from January 9, 2003 until the date this Circular takes effect, shall be eligible for refund of import tax. The amount of import tax refunded is the difference between the tax paid by the enterprise and the reduced import tax calculated at 50% according to the guidance provided in this Circular. Enterprises shall contact the local Customs Bureau where they import goods to process the tax refund procedures. The application for tax refund includes:

+ A letter requesting a refund of the import tax already paid

+ The customs declaration form for imported goods that has been settled with the Customs

+ Foreign trade contracts, foreign trade sales invoices

+ Documents proving that the imported goods originate from

Laos as guided in this Circular

This Circular replaces Joint Circular No. 75/2001/TTLT-BTC-BTM-TCHQ dated September 24, 2001 of the Ministry of Finance, Ministry of Trade, General Department of Customs on guiding the implementation of the reduction in import tax on goods originating from Laos as stipulated in the agreement between the Government of the Socialist Republic of Vietnam and the Government of the Lao People's Democratic Republic (Cua Lo Agreement in 1999) regarding facilitation of the movement of people, means of transport, and goods across the border between the two countries

During the implementation, if there are any difficulties, units are requested to report to the Ministry of Finance and the Ministry of Trade for timely research, guidance, and supplementation.

List and quantity of goods originating from Laos

eligible for a 50% reduction in preferential import tax when imported into Vietnam in 2003 (as per Appendix No. 3 of the Agreement

on economic, cultural, scientific and technological cooperation between

the Government of the Socialist Republic of Vietnam and the Government of the Lao People's Democratic Republic in 2003

signed on January 9, 2003) issued together with Joint Circular

No. 54/2003/TTLT-BTC-BTM dated June 3, 2003 of the Ministry of Finance and the Ministry of Trade