Circular No. 6271/TC/TCT regarding guidance on refunding import tax for the production of urban specialized vehicles

LETTER

OF THE MINISTRY OF FINANCE NO. 6271 TC/TCT ON JUNE 24, 2002
GUIDING THE REFUND OF IMPORT TAX FOR
THE PRODUCTION OF URBAN SPECIAL-PURPOSE VEHICLES.

Dear: - Ministries, ministerial-level agencies, government agencies

- People's Committees of provinces and centrally governed cities

Implementing the guidance of the Prime Minister in Circular No. 08/CP-KTTH dated January 4, 2002 of the Government regarding import tax on chassis for the production of urban special-purpose vehicles.

The Ministry of Finance guides the refund of import tax for chassis and auxiliary equipment imported to produce urban special-purpose vehicles as follows:

1. Definitions: Some terms in this document are understood as follows:

- Chassis: A truck without a cargo box, or a frame with an engine installed, or truck component parts imported to produce urban special-purpose vehicles.

- Auxiliary equipment: Materials, components, and spare parts imported for use in producing urban special-purpose vehicles.

- Urban special-purpose vehicle: A specially designed automobile for public service purposes in urban areas, belonging to subheading 8704 and sub-subheading 870590 of the Import Tariff (for example: garbage trucks, vacuum trucks, street washing trucks...).

2. Scope of Application:

2.1. Applicability:

Enterprises directly importing (or entrusting the importation of) chassis and auxiliary equipment to produce urban special-purpose vehicles.

2.2. Scope of Application:

Enterprises importing chassis and auxiliary equipment to produce urban special-purpose vehicles must pay import tax according to the applicable import tariff rates as stipulated in the current Import Tariff. The deadline for paying import tax shall be carried out in accordance with the Law on Export Tax and Import Tax. If the imported chassis and auxiliary equipment are used to produce urban special-purpose vehicles that meet technical standards confirmed by authorized agencies and approved by the Ministry of Public Security for registration and circulation, then the paid import tax will be refunded.

2.3. Calculation of Refundable Import Tax:

In cases where the enterprise's paid import tax for the chassis and auxiliary equipment that have been assembled into urban special-purpose vehicles is lower than the calculated import tax for the chassis and auxiliary equipment that have been assembled into urban special-purpose vehicles based on the import tariff rate for urban special-purpose vehicles specified in the Import Tariff at the time of import, the enterprise does not need to pay the difference.

3. Implementation:

3.1. Monitoring Imported Goods:

Before processing the import procedures, enterprises producing urban special-purpose vehicles must register with customs authorities the following contents:

- Register with the General Department of Customs: The local customs office where the enterprise chooses to process import procedures, for monitoring and managing, and handling refunds when the vehicles are assembled into urban special-purpose vehicles.

- Register with the local customs office where the enterprise processes import procedures: annual import plan (regarding goods, quantity, import time), usage quota for chassis and auxiliary equipment imported to produce urban special-purpose vehicles, assembly deadline for urban special-purpose vehicles.

The General Department of Customs guides local customs offices to monitor imported goods, ensuring convenience for enterprises engaged in production and business activities, and strictly managing to prevent commercial fraud.

3.2. Procedures for Refunding Import Tax:

After the urban special-purpose vehicle has been approved for registration and circulation by the Ministry of Public Security (with a registration permit), the enterprise presents the following documents to the local customs office to process the refund of import tax:

- A letter from the enterprise requesting the refund of paid import tax, detailing the number of urban special-purpose vehicles produced, production quotas for imported chassis and auxiliary equipment, the amount of paid import tax, and the requested refund amount.

- Decision of the Ministry of Transport allowing the enterprise to produce and assemble urban special-purpose vehicles.

- Technology transfer contracts and trademark licenses approved by the Ministry of Science and Technology and Environment (if any).

- Confirmation from standardization, measurement, and quality control agencies and authorized inspection agencies that the assembly line meets the technical and technological conditions of the production and assembly project.

- Quality certificate for urban special-purpose vehicles issued by the Vietnam Vehicle Inspection Center.

- Circulation permit issued by the Ministry of Public Security.

- Import declaration forms for chassis and auxiliary equipment, settled with customs.

- Import contracts for chassis and auxiliary equipment.

- Payment receipts.

- Entrusted import contracts (if the goods are entrusted imports).

Usage quotas for chassis and auxiliary equipment to produce urban special-purpose vehicles are established by the enterprise and the enterprise director is responsible under the law for the accuracy of these quotas. In cases where registered quotas do not match actual consumption rates, the enterprise must immediately report to the customs authority where the quotas were registered to serve as the basis for tax refunds. The refundable import tax is determined based on the actual consumption rate self-determined by the enterprise and for which it bears responsibility, but not exceeding the registered consumption quota.

Based on the documents stipulated herein, the customs office where the enterprise processed import procedures will review the documents and issue a Decision to refund import tax to the enterprise. The refundable import tax will be deducted from the enterprise's import tax payable in the next period. In cases where the refundable import tax is large or the enterprise has no import tax payable in the next period, the local customs office will follow the provisions of point 2, part II of Circular No. 68/2001/TT-BTC dated August 24, 2001 of the Ministry of Finance, and submit to the Ministry of Finance for consideration to refund the import tax from the state budget to the unit.

3.3. In cases where there are doubts about the consumption rates of the base vehicles and equipment, the Customs authority may request an appraisal from the specialized management agency regarding such goods as a basis for considering and resolving the refund of import tax for the enterprise. The Customs authority shall take the lead in coordinating with the local tax authority to organize inspections of the use of imported base vehicles and auxiliary equipment for the production of urban special-purpose vehicles by the enterprise (if necessary), and to resolve the refund of import tax.

If the enterprise does not comply with the policies and regulations as prescribed, upon discovery, it will be subject to the recovery of import tax at the applicable tariff rate specified in the Import Tariff Schedule and penalties according to current laws.

The resolution of the refund of import tax for units producing urban special-purpose vehicles in accordance with the guidance provided in this letter applies to declarations for imported base vehicles and auxiliary equipment submitted to the Customs authority from January 4, 2002.

It is requested that relevant ministries, sectors, and agencies coordinate to direct implementation.