Circular No. 67/TC-TCT guiding the sale of tax-free goods to certain subjects according to the Council of Ministers' Decree No. 131-HĐBT dated August 27, 1987.

 CIRCULAR

NUMBER 67/TC-TCT OF OCTOBER 30, 1992 ISSUED BY THE MINISTRY OF FINANCE GUIDING THE SALE OF GOODS EXEMPT FROM TAX FOR CERTAIN OBJECTS AS PROVIDED IN DECREE 131-HĐBT OF AUGUST 27, 1997 OF THE STATE COUNCIL

Implementing the directive of the Chairman of the State Council (now Prime Minister) as set out in Circular No. 1433/PPLT dated April 16, 1992 of the Office of the State Council; after reaching consensus with the People's Committee of Hanoi City, the Ministry of Trade and Tourism, the General Customs Department, and the Ministry of Foreign Affairs; the Ministry of Finance guides the exemption from import tax for units importing goods to serve the objects entitled to tax-exempt standards as provided in Decree No. 131/HĐBT dated August 27, 1997 of the State Council as follows:

I. GENERAL PROVISIONS

1. Purchasing Object and Tax-Exempt Goods

- The purchasing object exempt from import tax is those specified in Article 1 of Decree No. 131/HĐBT and points 1 and 2 of Section 1 of Circular No. 1777-TCHQ/PC dated September 23, 1987 of the General Customs Department (specific list according to Table 1 attached hereto).

- Administrative technical staff, service personnel, and their families may only purchase tax-exempt imported goods during the first 12 months after arriving in Vietnam to assume duties. However, automobiles are excluded from this tax exemption for administrative technical staff, service personnel, and their families.

2. Goods

- The types of goods and purchase quotas for tax-exempt goods for the aforementioned purchasing objects shall be based on the list of goods attached to Decree No. 131/HĐBT (excluding tobacco products). The General Customs Department is responsible for guiding and confirming the tax-exempt purchase standards for each purchasing object.

For now, only seven types of goods (excluding tobacco) as stipulated in Decree No. 131/HĐBT can be sold. In cases where additional goods need to be sold, the tax-exempt store must report to the Ministry of Finance for consideration and resolution.

3. Selling Units

- The selling unit must have experience in selling foreign currency goods, possess all necessary technical facilities, and must have direct import-export trading rights without any outstanding tax debts.

- Localities permitted to open tax-exempt stores for diplomatic objects must obtain approval from the Chairman of the State Council (now)

II. PROCEDURES FOR PURCHASING GOODS, TEMPORARY EXEMPTION REVIEW AND SETTLEMENT OF TAXES ALREADY EXEMPTED

1. Purchasing Procedures

a) The purchasing objects mentioned in point 1 of this circular must establish a purchase registration book and submit it to the Ministry of Foreign Affairs for verification and confirmation.

The format of the book will be printed and distributed by the Ministry of Finance to the Ministry of Foreign Affairs. This book is used for purchases at tax-exempt stores and for declarations to customs when self-importing. After the Ministry of Foreign Affairs verifies and confirms, the book is transferred to the General Customs Department for review and confirmation of the purchase standards for each book (each book has two copies), with the General Customs Department retaining one copy and sending one copy to the Ministry of Foreign Affairs to return to the purchasing object and recover the book upon completion of their term in Vietnam.

b) After the customs authority verifies and confirms the purchase standards, the selling units must submit a list of orders to the Ministry of Finance (General Tax Department) as a basis for temporarily exempting import taxes for the units.

c) When purchasing goods, the purchasing objects must present:

- The tax-exempt purchase book already confirmed by the customs authority, accompanied by a letter of introduction or a certificate issued by the agency if purchasing for the agency.

- The tax-exempt purchase book already confirmed by the customs authority, accompanied by a passport or identity card issued by the Protocol Department, if purchasing for an individual.

After selling goods, the selling unit must reclaim the letter of introduction, purchase certificate, and the customs-approved certificate for goods outside the list of Decree No. 131/HĐBT.

2. Temporary Exemption Review Procedures

Each time importing goods to serve the 131/HĐBT objects within ten working days from the date the customs authority receives the declaration form, the units must submit the following documents to the Ministry of Finance:

- A letter requesting temporary exemption from import tax from the selling unit detailing the service needs and commitment to sell to the designated objects.

- An import permit issued by the Ministry of Trade and Tourism clearly stating that the goods are for serving the 131/HĐBT objects.

- An import declaration form for commercial goods with import tax calculated by the customs authority.

- A consignment import documentation (for units that consign imports).

After receiving the above documents within ten working days, the Ministry of Finance is responsible for reviewing and issuing a decision to temporarily exempt import tax for the units.

The amount of temporary exemption for each batch of goods shall not exceed three times the customer demand (number of books) and must be confirmed by the customs authority as meeting the tax-exempt standards. When reviewing the temporary exemption for subsequent batches, the units must have sufficient books to sell the entire previous batch.

The temporary exemption period is six months from the date the Ministry of Finance temporarily exempts import tax. Within this period, the units must settle all batches with the Ministry of Finance. If the units fail to settle the batches beyond the deadline, the Ministry of Finance will notify the customs authority to collect the previously exempted import tax and impose late payment penalties as prescribed by law (if overdue).

3. Settlement of Officially Exempted Taxes

After selling the entire batch or no later than ten days after the temporary exemption period for each batch, the units must report the settlement of each batch to the Ministry of Finance. Based on this, the Ministry of Finance will verify and issue a decision officially exempting taxes for each batch. Beyond the six-month temporary exemption period, even if the batch has not been fully consumed, the unit must still settle with the Ministry of Finance. After settlement, the Ministry of Finance will officially exempt taxes for the consumed goods, and the remaining goods can continue to be sold, with the unit reporting the settlement to the Ministry of Finance within the next six months.

If the unit is permitted by the Ministry of Commerce to transfer imported goods from objects 131/HĐB T to sell to other objects, then within two days from the date of permission to change the object, the selling unit must declare to the Customs authority (where the import procedures for the consignment were handled) and pay taxes according to the notification of the Customs authority. In all cases where sales are made to incorrect objects and do not meet the required procedures stipulated in this circular, the units must pay the full import tax and be subject to late payment penalties as prescribed (if the tax payment deadline is exceeded).

4. The sale of duty-free imported goods to object 131/HĐB T shall be considered an export activity and shall fulfill the obligations of turnover tax and other domestic taxes as with export business units.

III. IMPLEMENTATION PROVISIONS

This Circular takes effect from November 1, 1992. During implementation, if there are any difficulties, the units should report them to the Ministry of Finance for study and resolution.

LIST

OBJECTS 131

a) Diplomatic missions located in Vietnam:

- Embassies, Consulates General, Consulates

- International organizations under the United Nations such as: UNHCR, UNDP, FAO, UNICEF, WHO, WFP, UNFPA, UNIDO, UNEP, UNSCO, etc.

- International organizations, government and non-government organizations allowed by the Government of Vietnam to establish offices in Vietnam and enjoy tax preferential treatment.

b) Diplomatic personnel:

- Ambassadors, representatives, commercial counsellors, first secretaries, second secretaries, third secretaries, various attaches (military, trade, cultural, scientific and technical...), deputy military attaches, trade representatives, deputy trade representatives, consuls general, deputy consuls general, consuls, deputy consuls. Representatives and deputy representatives of the organizations mentioned in point (a) above.

- Family members who are foreign nationals living together with those mentioned in point (b) above.

c) Administrative and technical staff and service personnel of foreign nationals of the agencies and organizations mentioned in point (a) including secretaries, doctors, radio operators, drivers, housekeepers... and family members who are foreign nationals living together with them.

COVER SHEET NUMBER

- For individual books, blue color

- For diplomatic agency books, red color.

INDIVIDUAL BOOK

- Full name

- Position

- Passport number (or identity card issued by the Protocol Department of the Ministry of Foreign Affairs)

- Number of family members living together

-

-

-

-

Date of arrival to assume duties in Vietnam.

Hanoi, day month year 199

Declaration signature

Confirmation by the Ministry of Foreign Affairs

DIPLOMATIC AGENCY AND INTERNATIONAL ORGANIZATION BOOK

- Name of international organization

5. List of sports activities for business operation (specify the sports activities for business operation) …

- Number of staff on the establishment

+ Foreign nationals

+ Vietnamese nationals Hanoi, day month year 199

Head of the organization

(Signature, stamp)

Confirmation by the Ministry of Foreign Affairs

I. GOODS IN THE LIST ACCOMPANYING DECREE NO. 131-HĐBT

Approved for purchase according to quotas. Each time approved for sale, confirm by stamping and signing each box to serve as proof of sale and kept together with the invoice.

GOODS OUTSIDE THE LIST ACCOMPANYING DECREE NO. 131-HĐBT

1. Foodstuffs:

2. Other goods

Confirmed by the General Customs Department for purchase on each purchase receipt (similar to the Customs issuing import permits to customers for self-importation).