Circular No. 55/2015/TT-BCT stipulates the procedures and formalities for confirming incentives and post-approval supervision for projects producing supporting industrial products listed in the Priority Supporting Industrial Products Development Catalogue.

CIRCULAR

Regulations on the procedures and formalities for confirming incentives and post-grant monitoring for projects producing supporting industrial products listed in the Priority Supporting Industrial Products Development Catalogue

industrial supporting products listed in the Priority Industrial Supporting Products Development Catalogue

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Pursuant to Decree No. 95/2011/NĐ-CP dated November 12, 2012 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Industry and Trade;

Pursuant to Law No. 71/2014/QH13 dated November 26, 2014 amending and supplementing certain articles of the Laws on Taxation;

Pursuant to Decree No. 111/2015/NĐ-CP dated November 3, 2015 of the Government on the development of support industries;

At the proposal of the Director of the Heavy Industry Department,

The Minister of Industry and Trade promulgates this Circular stipulating the procedures and formalities for confirming incentives and post-grant monitoring for projects producing supporting industrial products listed in the Priority Supporting Industrial Products Development Catalogue as follows:

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

This Circular stipulates the procedures and formalities for confirming incentives and post-grant monitoring for projects producing supporting industrial products listed in the Priority Supporting Industrial Products Development Catalogue issued by Government Decree No. 111/2015/NĐ-CP dated November 3, 2015 on the development of supporting industries.

Article 2. Applicability

This Circular applies to organizations and individuals producing supporting industrial products listed in the Priority Supporting Industrial Products Development Catalogue within the territory of Vietnam.

Article 3. Explanation of Terms

In this Circular, the following terms are understood as follows:

1. Supporting industrial products are products belonging to industries producing raw materials, materials, components, and spare parts for the production of finished products.

2. The competent authority is the unit entrusted with the task of receiving and processing applications for confirmation of incentives:

b) The competent authority at the provincial level: the state management agency designated by the People's Committee of the province in accordance with Article 15 of Government Decree No. 111/2015/NĐ-CP dated November 3, 2015 on the development of supporting industries.

3. A new investment project for producing supporting industrial products is:

a) A project implemented for the first time or operating independently from existing projects;

b) An ongoing project that is expanded in scale, increased in capacity, and updated in technology to produce supporting industrial products using new equipment and production processes with a production capacity increase of at least 20%.

4. Small and medium-sized enterprises are enterprises defined in accordance with the Law on Small and Medium-Sized Enterprises.

Article 4. Cases Eligible for Corporate Income Tax Incentives

New investment projects eligible for corporate income tax incentives under Law No. 71/2014/QH13 dated November 26, 2014 amending and supplementing certain articles of the Laws on Taxation must produce supporting industrial products meeting one of the following requirements:

a) Domestic priority supporting industrial products produced before January 1, 2015 (as specified in Appendix 1 attached hereto) and having a Certificate of Technical Standards Compliance issued by the European Union (standards established by the European Committee for Standardization CEN) or equivalent (if applicable);

b) Supporting industrial products specified in the Priority Supporting Industrial Products Development Catalogue issued together with Government Decree No. 111/2015/NĐ-CP dated November 3, 2015, which do not fall under Appendix 1 attached hereto.

Chapter II

PROCEDURES FOR CONFIRMING INCENTIVES AND POST-GRAFT MONITORING

Article 5. Documents and Procedures for Confirming Incentives

1. Number of Documents:

a) Six copies including one original and five duplicates;

b) The documents must be sealed and clearly marked with relevant information about the organization or individual applying for incentives on the outside;

c) In cases where investment incentive conditions change, supplementary documents (details of changes) shall be submitted to the competent authority for review.

2. Contents of the application documents:

a) Request for confirmation of incentives (Annex 2 issued together with this Circular);

b) Business registration certificate or business license;

c) Project description:

- For new projects or independent operations: Investment report (project) in accordance with current laws on investment and construction;

- For ongoing projects:

+ Description of current production process, facilities (workshops), machinery and equipment (list and capacity of specialized machinery and equipment for key processes corresponding to products and scale of production at the facility; measuring and quality control equipment...); production capacity; Independent audit report of the most recent year before submitting the application for incentive confirmation (or financial statements);

+ Description of expanded scale investment, technological innovation with new equipment and production processes according to current laws on investment and construction, with increased production capacity of at least 20%;

d) Decision approving the environmental impact assessment report (for new investment projects) or environmental protection commitment in accordance with environmental protection laws or confirmation of completion of environmental protection works and measures (for ongoing projects);

đ) Certificate of compliance with European Union technical standards (standards issued by the European Committee for Standardization CEN) or equivalent (if applicable) issued by a certification organization authorized under laws on product quality;

3. Submission Location:

a) Projects producing priority supporting industrial products for small and medium-sized enterprises shall submit documents to the competent authority of the locality where the project is implemented or the Ministry of Industry and Trade. An enterprise may only submit documents to one competent authority;

b) Other entities shall submit documents to the Ministry of Industry and Trade (address: No. 54 Hai Ba Trung Street, Hoan Kiem District, Hanoi City).

4. Method of Submission: Documents can be submitted directly, by post, or online to the competent authority.

Article 6. Content of Review

1. Compliance of the production project with provisions of Government Decree No. 111/2015/ND-CP dated November 3, 2015 on the development of supporting industries.

2. Legal procedures of the project.

3. Feasibility and rationality of technical and technological solutions applied in the production of the project.

4. Financial capability and investment efficiency of the project.

5. Ability to meet environmental protection conditions of the project.

Article 7. Authority to Confirm Incentives

1. The competent authority of the locality where the project is implemented or the Ministry of Industry and Trade shall confirm incentives for production projects of priority supporting industrial products for small and medium-sized enterprises.

2. The Ministry of Industry and Trade shall confirm incentives for production projects of priority supporting industrial products for other entities.

Article 8. Time Limit for Resolution

1. Within five (05) working days, the competent authority shall examine the validity and completeness of the dossier. In cases where the dossier is incomplete and invalid, the competent authority shall notify the organization or individual in writing to supplement and complete the dossier.

2. In cases where the dossier is complete and valid, within fifteen (15) working days, the competent authority shall conduct an assessment of the dossier's contents, and if necessary, inspect the actual situation at the facility. The competent authority must issue a written notification of the result of confirming the benefits no later than thirty (30) working days.

Article 9. Post-Inspection and Recovery of the Certificate of Benefits

1. Post-inspection procedures:

a) Inspection agency:

- The Ministry of Industry and Trade shall take the lead and coordinate with relevant ministries, sectors, and agencies to inspect projects benefiting from incentives nationwide;

- Provincial Departments of Industry and Trade shall take the lead and coordinate with relevant provincial departments and agencies to inspect projects benefiting from incentives within their respective jurisdictions.

b) Forms of inspection:

Based on the requirements of state management, either periodically or unexpectedly, the Ministry of Industry and Trade or the Provincial Departments of Industry and Trade shall establish inspection teams.

c) Contents of inspection:

- Legal documentation review;

- Physical infrastructure inspection;

- Review of incentives received by the project;

- Project implementation progress inspection;

- Inspection of products of the project that have benefited from incentives.

All inspection contents must be recorded in a Report. In case of discovering violations, the inspection team has the responsibility to recommend relevant authorities to handle according to regulations.

2. Recovery of the Certificate of Benefits:

Cases where the Certificate of Benefits will be recovered and organizations or individuals who have committed violations will be required to compensate for the benefits they have received:

a) During production, there is a change in the product receiving incentives without the organization or individual reporting this to the competent authority;

b) After eighteen months from the date of confirmation of benefits, the project does not produce the registered products confirmed to benefit from incentives;

c) Other cases as recommended by the inspection team.

Chapter III

RESPONSIBILITY AND EFFECTIVENESS OF IMPLEMENTATION

Annually (before January 31 of the following year), organizations and individuals who have benefited from incentives are responsible for reporting to the Ministry of Industry and Trade on the production and business situation of products benefiting from incentives.

Article 11. Responsibilities of State Management Agencies

a) Receiving dossiers and soliciting opinions from relevant ministries, sectors, and agencies (if necessary) to verify and confirm incentives;

b) Guiding and inspecting organizations and individuals in implementing the provisions of this Circular and related laws regarding the production of priority supporting industrial products;

c) Taking the lead and coordinating with relevant ministries, sectors, and agencies to periodically and unexpectedly inspect projects benefiting from incentives.

2. Local competent authorities shall be responsible for:

a) Receiving dossiers and soliciting opinions from relevant provincial departments and agencies to verify and confirm incentives;

b) Guiding and inspecting organizations and individuals in implementing the provisions of this Circular and related laws regarding the production of priority supporting industrial products;

3. Provincial Departments of Industry and Trade shall be responsible for taking the lead and coordinating with relevant provincial departments and agencies to periodically or unexpectedly inspect projects benefiting from incentives within their respective jurisdictions.

Article 12. Effective Date

1. This Circular takes effect from January 1, 2016.

2. During the implementation process, if there are difficulties or issues arising, organizations and individuals are advised to report to the Ministry of Industry and Trade for research and appropriate amendments and supplements./.