Circular No. 61/2006/TT-BTC guiding tax policies for unprocessed agricultural products supported by Vietnam for investment and cultivation in Cambodia imported back to Vietnam.

CIRCULAR

||| Guidelines on tax policies for unprocessed agricultural products supported by investment from Vietnam and grown in Cambodia for import to Vietnam

||| Unprocessed agricultural products supported by investment from Vietnamese enterprises and grown in Cambodian provinces bordering Vietnam for import to Vietnam as raw materials for production shall be subject to these guidelines.

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||| Pursuant to the Law on Export Tax and Import Tax No. 45/QH11 dated May 14, 2005; Pursuant to the Law on Value Added Tax No. 02/1997/QH9 dated May 10, 1997, the Law Amending and Supplementing Certain Provisions of the Law on Value Added Tax No. 07/2003/QH11 dated June 17, 2003, and the Law Amending and Supplementing Certain Provisions of the Special Consumption Tax Law and the Value Added Tax Law No. 57/2005/QH11 dated November 29, 2005;

||| Pursuant to the opinion of the Government Prime Minister at Official Letter No. 478/VPCP-KTTH dated January 25, 2006 of the Government Office;

||| The Ministry of Finance guides the exemption of import taxes for unprocessed agricultural products supported by investment from Vietnamese enterprises and grown in Cambodian provinces bordering Vietnam for import to Vietnam as raw materials for production as follows:

1. Scope of application:

||| Unprocessed agricultural products (as listed in Appendix I attached hereto) supported by investment from Vietnamese enterprises and grown (by means such as: capital contribution, direct planting, or investment with money or goods) in Cambodian provinces bordering Vietnam (as listed in Appendix II attached hereto) for import to Vietnam as raw materials for production shall be exempted from import taxes and not subject to value added tax.

||| Cases where products are merely purchased or investments are made in Cambodian provinces not bordering Vietnam do not fall within the scope of this Circular.

2. Procedures for Exemption of Import Taxes:

When importing goods eligible for import tax exemption under this Circular, Vietnamese enterprises must submit complete documentation as follows:

- A letter requesting exemption from import tax from the enterprise specifying the quantity, type, and value of imported goods;

- A confirmation document issued by the competent authority in Cambodia where the Vietnamese enterprise has invested (a copy with a Vietnamese translation certified and stamped by the enterprise);

- A Contract or Agreement signed with the Cambodian side regarding support for investment, planting, and receiving agricultural products, clearly stating the amount of investment in each sector and the corresponding quantity, type, and value of each type of agricultural product to be harvested. When processing import procedures for agricultural products, the enterprise must submit a copy and present the original Contract or Agreement signed with the Cambodian side regarding support for investment, planting, and receiving agricultural products for comparison by the Customs Authority (at the location where the import procedures are being processed);

- Documents related to the support for investment and planting of agricultural products in Cambodian provinces bordering Vietnam.

Based on the above documents, the Customs Authority (at the location where the goods are imported) will check and compare with the actual imported goods to process the import tax exemption for each consignment, and simultaneously mark "Exempted Goods" on the Customs Declaration for Imported Goods.

3. Handling Violations:

In cases where enterprises have imported goods that have been processed for import tax exemption, if it is found that the goods do not qualify for import tax exemption, they will be subject to recovery of taxes and penalties according to current regulations.

4. Implementation:

This Circular takes effect 15 days after its publication in the Official Gazette. The Customs Authority will handle import tax exemptions and maintain records. Monthly, quarterly, and annual reports (name of enterprise, quantity, type, and value of exempted goods) shall be submitted to the Ministry of Finance (General Department of Customs). During the implementation of this Circular, if there are difficulties or issues, units are requested to report to the Ministry of Finance for consideration and resolution./.