Circular No. 72A-TC/TCT guiding the implementation of Decree No. 54/CP dated August 28, 1993 detailing the implementation of the Law on Export Tax and Import Tax and the Law on Value Added Tax regarding certain provisions of the Export and Import Tax Law.

CIRCULAR

Implementation guidance Government Decree No. 54/CP dated August 28, 1993, of the Government detailing the implementation of the Law on Export Tax and Import Tax and the Amended Law on Export Tax and Import Tax. to implement the Law on Export Tax and Import Tax and the amended Law on Export Tax and Import Tax

_____________________________

Pursuant to Decree No. 54/CP dated August 28, 1993 of the Government detailing the implementation of the Law on Export Tax and Import Tax; after reaching consensus with the Ministry of Trade and the General Department of Customs of the Ministry of Finance, the Ministry of Finance hereby provides guidance for implementation as follows:

I. TAXPAYERS AND TAX SUBJECTS

1. Tax subjects: All goods permitted for export and import through Vietnamese border gates and borders as stipulated in Article 1 of Decree No. 54/CP dated August 28, 1993 of the Government are tax subjects.

2. Goods not subject to export tax or import tax under Article 3 of Decree No. 54/CP dated August 28, 1993 include:

a) Goods in transit, transshipment, or using Vietnamese territory as a route according to government regulations must comply with all provisions of the Ministry of Trade and the General Department of Customs; when handling customs procedures, they must meet the following conditions:

- A letter from the Ministry of Trade permitting transit services or transshipment, or a letter from the General Customs Department permitting foreign owners to detour.

- Certified copies of transit service contracts or certified copies of purchase and sale contracts for transshipment services.

- Export permit, export permit for each consignment.

During transportation within Vietnamese territory, the goods may not be consumed in any form, nor may they be unpacked, dismantled, or altered. They are subject to strict supervision and management by customs from the port of entry to the port of exit or from the departure port to the arrival port within Vietnamese territory.

b) Humanitarian aid goods must have the following documents: - Import permit for humanitarian aid issued by the Ministry of Trade.

- Confirmation of humanitarian aid clearly stating it is humanitarian aid, issued by the Management and Reception Board for International Aid.

- Other relevant documents related to receiving the consignment: bill of lading, detailed statistical sheet, commercial invoice, insurance certificate.

Based on the conditions and documents specified in points a and b above, provincial and port customs authorities will handle customs management procedures and stamp the declaration form to indicate that the goods are exempt from tax. At the same time, they will closely monitor and organize the storage of complete documentation for each consignment during the customs procedure.

3. Taxpayers:

All organizations and individuals with goods subject to export tax or import tax as stipulated in point 1 above are taxpayers.

In cases of agency export or import, the organization accepting the agency is the taxpayer for export tax and import tax.

II. DETERMINATION OF THE TAXABLE VALUE

1. Where there is a valid foreign trade sales contract and other legitimate documents as prescribed by the Ministry of Trade, the taxable value shall be determined based on the contract, specifically:

a) For exported goods sold under a sales contract to customers, the taxable value is the selling price at the port of export excluding freight charges (F) and insurance charges (I) from the port of departure to the port of destination (FOB price).

b) For imported goods purchased under a contract, the taxable value is the actual purchase price paid by the customer at the port of import including transportation costs and insurance charges from the port of departure to the port of destination (CIF price). If the import price does not include insurance charges (I) and freight charges (F), the organization or individual paying the tax must present valid documents regarding these charges to the customs authority to determine the taxable value. If the organization or individual cannot provide valid documents for insurance and freight charges, the customs authority will calculate these charges according to the principles set forth by the Ministry of Trade.

c) In cases where the purchase or sale contract is made on deferred payment terms and the purchase or sale price stated in the contract includes interest payable, the taxable value is determined by subtracting the interest payable from the purchase or sale price as stated in the contract.

d) The taxable value for export tax and import tax for goods traded in export processing zones is the actual purchase or sale price at the port of the export processing zone as stated in the contract.

2. For certain goods that require state management, if the price on the contract is lower than the minimum selling price (for export goods) or the minimum purchase price (for import goods) as stipulated in the price list of the Ministry of Finance, then the taxable value is the minimum purchase or sale price at the port of entry or exit as specified in the price list of the Ministry of Finance.

3. In cases where goods for export or import do not meet the conditions to determine the contract price according to the format prescribed in Circular No. 4794/TN-XNK dated July 31, 1991 of the Ministry of Commerce (now the Ministry of Trade), or where purchases or sales are not settled through banks or do not have contracts, the taxable value is the price list established by the Ministry of Finance.

4. The exchange rate used to determine the taxable value in Vietnamese dong for export tax and import tax is the rate between Vietnamese dong and foreign currency published by the State Bank of Vietnam at the time of registering the export or import declaration with the customs authority.

For foreign currencies not published by the State Bank, the General Department of Customs will consult with the State Bank to promptly publish the applicable exchange rates for export tax and import tax.

Whenever the State Bank of Vietnam changes the exchange rate, the General Department of Customs will promptly notify the new exchange rate to customs offices in provinces and cities for uniform implementation according to the published bank rate. If declarations for tax calculation have not yet been calculated using the new exchange rate during this period, the province or city customs office will adjust and reissue the tax amount according to the new exchange rate within the tax payment deadline.

III. TAX RATES

1. The current tax rates are the export tax rates and import tax rates promulgated together with Decrees No. 110/HĐBT dated March 31, 1992, Decision No. 359/HĐBT dated September 29, 1992 of the Council of Ministers (now the Government), and Decisions No. 25 TC/TCT dated January 15, 1993, No. 216 TC/TCT dated April 13, 1993, No. 346 TC/TCT dated June 10, 1993, and No. 571 TC/TCT dated August 3, 1993 of the Ministry of Finance.

2. Preferential tax rates are applied to goods for export or import meeting the following conditions:

- Goods exported and imported under trade agreements signed between the Government of Vietnam and foreign governments, which include preferential provisions on export duties and import duties as stipulated in point a, Clause 2, Article 11 of Decree No. 54/CP dated August 28, 1993, must comply with the specific goods and quantities specified in the trade agreement. If the trade agreement does not clearly specify the quantities and types of goods, they will not meet the conditions to apply preferential rates.

- For exported goods, such goods must have a certificate of production in Vietnam.

- For imported goods, such goods must have a certificate of production in the country that has signed preferential clauses in its commercial relations with Vietnam.

To implement the preferential rate correctly according to the goods and quantities specified in the agreement, when issuing export and import permits, the Ministry of Commerce must clearly state the quantity of goods subject to preferential rates on the cargo transfer permit. Customs authorities shall collect taxes at the preferential rate as prescribed, for the correct goods and quantities, based on the permit endorsed by the Ministry of Commerce.

3. The tax rate applicable to unassembled, semi-assembled, and knock-down forms of goods listed in the tariff schedule shall only apply to those goods whose unassembled, semi-assembled, and knock-down forms have been standardized by authorized State agencies. In cases where imported goods exceed the established standards, the higher tax rate shall be applied. For example, if unassembled goods exceed the standard, the fully assembled rate will be applied. If semi-assembled goods exceed the standard, the unassembled rate will be applied...

IV. EXEMPTION FROM TAX.

Organizations and individuals exporting or importing goods eligible for tax exemption as provided in Article 12 of the Decree must submit the following documents:

1. For non-repayable aid goods, the following documents are required:

- Aid project or agreement between the Government of Vietnam and foreign organizations or aid agreement or notification of aid;

- Document permitting receipt, distribution, or use of aid goods issued by the competent ministry or People's Committee of provinces or centrally-administered cities;

- Bill of lading for imported goods or notice from the donor;

- Export/import permit issued by the Ministry of Commerce specifying non-repayable aid;

Based on these documents, the Aid Management and Reception Board (Ministry of Finance) issues a confirmation of aid stamped with "non-repayable aid."

2. For temporarily imported goods for re-export or temporarily exported goods for re-import to participate in exhibitions, the following documents are required:

- Notice or invitation to attend the exhibition;

- Export or import permit for goods issued by the Ministry of Commerce or General Department of Customs specifying temporary import for re-export or temporary export for re-import for exhibition purposes, including the duration of the exhibition.

The customs office handling the temporary import or export procedures is responsible for closely monitoring. If the goods are not re-exported or re-imported within the exhibition period, the entity or individual must declare and pay the import or export duty; failure to declare and being discovered will result in back payment of import or export duty and penalties as prescribed by law.

3. For movable assets, the following documents are required:

a) For movable assets of foreigners transferring out of Vietnam upon expiration of their residence and work periods in Vietnam, the following documents are required:

- Decision of the foreign government allowing return to their home country;

- Certificate of expiration of residence and work period in Vietnam issued by the Ministry of Foreign Affairs;

- Permit issued by the Ministry of Commerce or General Department of Customs.

All prohibited export goods cannot be considered as movable assets.

For movable assets of foreigners entering Vietnam for residence and work, regulations set forth in Decree No. 131/HĐBT dated August 27, 1987 of the Council of Ministers (now the Government) shall apply.

b) For movable assets of Vietnamese organizations and individuals permitted to take abroad for business and work, upon expiration of their stay abroad, the following documents are required:

- Decision of the competent authority allowing business and work abroad;

- Decision allowing return to Vietnam;

- Export declaration when taking goods abroad;

- Import permit for the goods brought back to Vietnam.

Customs at the border gate shall compare the actual assets returned with those taken out to exempt tax on the assets returned.

c) For personal and household items of Vietnamese individuals returning to Vietnam for permanent residence or taking abroad for permanent residence, the following decisions are required:

- Decision allowing permanent residence in Vietnam;

- Decision allowing permanent residence abroad.

Only one unit each of high-end consumer goods such as cars, motorcycles, televisions, refrigerators, air conditioners currently in use may be brought back tax-free.

Any other goods brought back in large quantities with the intent to sell for profit must be taxed.

4. For goods exported and imported by foreign organizations and individuals entitled to tax exemptions under international treaties, an export/import permit issued by the General Department of Customs is required.

5. For imported materials and raw materials for processing for export under contracts signed, the following documents are required:

- An agency import contract (if it is an agency-imported item).

- Processing contract (original or certified copy) signed with foreign parties, specifying the supply method of raw and material materials, delivery terms, consumption quotas, quantity of raw materials and materials to be processed, finished products to be delivered, and payment terms for processing fees.

For goods processed for export to foreign countries, only the import tax on raw materials and components used for processing shall be exempted. Equipment, means of production, tools, and raw materials paid for by foreign entities when imported must pay import tax. In cases where raw materials and components are imported for processing for export but the products are not exported, they must declare and repay the exempted import tax according to the provisions of Section VI below. If there is intentional non-declaration, in addition to back payment of the import tax, penalties ranging from two to five times the amount of undeclared tax will be imposed.

Upon completion of the processing contract, the entity must consolidate and settle accounts, report to the customs authority regarding the quantity of raw materials and components imported, the goods actually exported, and any surplus or shortage of raw materials and components. Within forty-five days from the end date of the contract (as recorded in the contract), if the entity has not submitted a settlement report, the customs authority will suspend the procedure for exempting import taxes on subsequent processing contracts. At the same time, import taxes will be collected according to the guidelines provided in Section VI below.

The customs authority shall base its procedures for granting import tax exemptions on the provisions above for the cases specified in Section IV of this Circular.

V. CONSIDERATION FOR TAX EXEMPTIONS AND REDUCTIONS.

Organizations and individuals with goods for export or import that fall under the cases eligible for tax exemption or reduction as stipulated in Article 13 of the Decree must present the following documents to the Ministry of Finance:

1. For specialized imported goods directly serving security and defense organizations, scientific research institutions, educational and training establishments, based on annual plans approved by the principal ministry:

a) Specialized imported goods directly serving security and defense organizations;

- Specific plans and lists detailing the quantities and types of specialized imported goods for each unit, approved by the leadership of the principal ministry after consultation with the Ministry of Finance. These plans must be registered at the beginning of the year with the Ministry of Finance.

- A letter requesting tax exemption signed off by the leadership of the principal ministry.

- An import permit issued by the Ministry of Trade.

- An import declaration form issued by customs (already settled and taxed).

- An agency import contract (if it is an agency-imported item).

b) Specialized imported goods directly serving scientific research and educational institutions:

- Research project files including:

+ Approval decisions for projects at the ministry or state level.

+ Lists of goods needed for import to implement the projects, approved by the leadership of the principal ministry.

- A letter requesting tax exemption.

- An import permit issued by the Ministry of Trade.

- An import declaration form issued by customs (already settled and taxed).

- An agency import contract (if it is an agency-imported item).

Specialized imported goods directly serving security and defense organizations, scientific research, and educational institutions, once exempted from import tax, must have their tax repaid if they are used for purposes other than those intended. In cases of intentional non-declaration, in addition to repayment of the exempted tax, penalties ranging from two to five times the amount of tax due will be imposed.

2. For goods exported or imported by enterprises with foreign investment and foreign partners conducting business cooperation based on joint venture contracts in special cases encouraging investment (as stipulated in Article 11 of the Law on Export Duties and Import Duties). After obtaining written agreement from the Ministry of Finance, the State Committee on Cooperation and Investment will review and approve specific units for tax exemption on equipment, machinery, spare parts, means of transport, and other materials imported into Vietnam according to Article 76 of Decree No. 18/CP dated April 16, 1993 of the Government. The Ministry of Finance will handle the tax exemption procedures for each specific shipment.

Documents required for reviewing tax exemptions for each shipment include:

- A request letter from the entity;

- A letter agreeing to tax exemption from the State Committee on Cooperation and Investment;

- An import-export plan approved by the Ministry of Trade, clearly distinguishing between equipment, machinery, spare parts, production and business means (including transportation means) and materials imported into Vietnam for basic construction to establish enterprises or to create fixed assets to fulfill joint venture contracts;

- An import permit for the shipment;

- A customs declaration form already settled by customs.

3. For gifts and presents from foreign organizations and individuals to Vietnamese organizations and individuals and vice versa, the following must be provided:

- A letter requesting exemption from import and export duties;

- An import-export permit issued by the customs authority;

- A notification or decision to give the goods by the owner.

The criteria for gift exemptions are based on Circular No. 28 TC/TCT dated July 17, 1992 of the Ministry of Finance. Specifically, gifts from Vietnamese organizations and individuals to foreign individuals and vice versa are only eligible for tax exemption up to $100 per individual per shipment. If a single shipment is given to multiple people, each person can only be exempted up to $100, and the total value of the shipment cannot exceed $1,000.

Any shipments of gifts exceeding the specified limits must pay import and export duties on the entire shipment.

Goods that are gifts and are subject to quota management by the state will not be eligible for tax exemption, except in certain special cases which the Ministry of Finance will consider and handle specifically.

Based on the documents specified in points 1, 2, and 3 of this section, the Ministry of Finance (General Department of Taxation) will examine and decide on tax exemptions for each case. Customs authorities will base their customs procedures for exported and imported goods on the Ministry of Finance's tax exemption decision, noting on the declaration form: "Tax-exempt goods according to Decision No... dated... month... year... of the Ministry of Finance." For gifts within the specified limit, customs authorities will proceed with tax exemptions based on the prescribed procedures and documents.

4. For goods imported for duty-free sales, the following must be provided:

- A letter requesting tax exemption;

- A license to operate duty-free sales granted by the competent state authority;

- Quotas or plans for imports approved by the Ministry of Trade;

- An import permit for the shipment;

- A customs declaration form already inspected and taxed.

Based on the above documents, the Ministry of Finance (General Department of Taxation) shall issue a decision to grant tax exemption. The customs authority shall implement the procedures and stamp "Tax-exempt goods" on the customs declaration form based on the tax exemption decision of the Ministry of Finance (General Department of Taxation). Quarterly (on the 10th day of the first month of each quarter), the business unit selling tax-exempt goods must report and settle the sales of tax-exempt goods with the Ministry of Finance (General Department of Taxation). If the unit fails to submit the settlement report within thirty days, the General Department of Taxation shall be responsible for notifying the customs authority to stop processing import procedures for tax-exempt goods until the unit submits the complete settlement report.

5. For export and import goods damaged or lost during transportation and loading/unloading with valid reasons, there must be:

- An export and import permit issued by the Ministry of Trade;

- A customs declaration form for export and import goods with confirmation from the customs office at the border gate regarding the actual exported/imported goods;

- An inspection report on the condition of damage or loss of the consignment during transportation issued by the VINACONTROL agency;

- Export and import documents accompanying the consignment such as invoices, bills of lading, etc.;

The provincial customs authority shall, based on the degree of loss and damage confirmed by VINACONTROL, compare relevant documents to reduce taxes accordingly for each specific case as stipulated in Article 14 of Decree No. 54/CP dated August 28, 1993 of the Government.

6. For warranty goods:

In principle, warranty goods are not subject to taxation. However, if the price payable for the entire consignment divided by the quantity of actually imported goods (including warranty goods) is lower than the minimum price level specified in the price list, the customs authority shall calculate the tax for the entire consignment (including warranty goods) according to the minimum price level.

VI. COLLECTION OF EXPORT DUTY AND IMPORT DUTY.

According to Article 15 of Decree No. 54/CP dated August 28, 1993 of the Government, when the reasons for tax exemptions or reductions under Sections IV and V above change differently from the provisions, including:

- Aid goods used for purposes other than those specified in the program/project;

- Temporary import/export goods for trade fairs or exhibitions that are not re-exported (for temporary imports) or not re-imported (for temporary exports);

- Goods imported by foreign organizations and individuals enjoying tax exemption under the temporary import/export regime as per Decision No. 131/HĐBT dated July 28, 1987 but sold or transferred in the domestic market to organizations and individuals not entitled to such exemptions;

- Goods imported specifically for direct use by security, defense organizations, scientific research, and educational institutions which have been exempted from import duty but are resold instead of being used for their intended purposes;

- Raw materials and components imported for overseas processing which have been exempted from import duty but are consumed domestically or sold domestically rather than exported;

- Goods imported by joint ventures with foreign investment and foreign cooperative enterprises which have been exempted from import duty but are sold domestically;

- Goods declared as damaged or lost during transportation and loading/unloading but later determined to be undamaged or unlost, etc.

Exporters and importers must declare to the customs authority that processed the customs procedures for the consignment of goods exempted or reduced in tax within two days from the date the reasons for exemption or reduction change, so that the customs authority can process the collection of the full amount of tax previously exempted or reduced.

The basis for collecting additional tax: the price, exchange rate, and tax rate shall be determined according to the price, exchange rate, and tax rate at the time the reason for exemption or reduction changes.

VII. REFUND OF TAX.

1. When requesting a refund of paid export duty or import duty, organizations and individuals must present the following documents:

a) For imported goods that have paid import duty and remain in bonded warehouses or storage areas at the border but are permitted to be re-exported, there must be:

- A letter requesting a refund of paid import duty, clearly stating the reason for the request;

- An export and import permit issued by the Ministry of Trade;

- Customs declarations for imported and exported goods with clearance from the customs authority. Specifically, the customs declaration for exported goods must have confirmation from the customs authority that the goods remain in bonded warehouses or storage areas at the border or are still under customs supervision within the customs-controlled area;

- Receipt for payment of import duties;

- Entrusted export and import contract (if the goods are entrusted for export and import).

b) For goods that have paid export duty but are not exported, there must be:

- A letter requesting a refund of paid export duty;

- An export permit issued by the Ministry of Trade;

- A customs declaration for exported goods with confirmation from the customs authority that the goods were not exported as declared;

- A receipt for payment of export duty;

c) For goods that have paid export duty or import duty but the actual export or import quantity is less than declared, there must be:

- A letter requesting a refund of paid export duty or import duty;

- An export or import permit issued by the Ministry of Trade;

- Customs declarations for exported or imported goods cleared by the customs authority;

- A receipt for payment of export duty or import duty;

- Waybills or sales invoices.

d) For imported goods that do not meet quality requirements as per the contract or import permit (due to incorrect shipment by the foreign supplier), accompanied by an inspection report from VINACONTROL and confirmation from the foreign supplier, the importing entity shall be responsible for working with the issuing authorities - the Ministry of Trade to adjust the import permit to match the actual imported goods. Based on the adjusted permit, the customs authority shall review and determine the correct tax payable to collect the appropriate tax. If the entity has overpaid, the excess will be refunded.

đ) For raw materials and components imported for production of export goods, there must be:

- A letter requesting a refund of paid import duty (with a detailed explanation of the quantity of exported goods, the consumption rate of imported raw materials, and the amount of import duty requested for refund), confirmed by the local Tax Bureau and the superior management agency regarding the consumption quota of raw materials and components used in the production of export goods.

- An export contract signed with foreign countries (specifying quantity, specifications, quality, type, etc., of exported goods);

- Export and import permit for a specific voyage issued by the Ministry of Trade;

- A customs declaration form for imported goods that has been settled by the customs authority;

- Receipt for payment of import duties;

- Entrusted export and import contract (if the goods are entrusted for export and import).

e) For temporarily imported goods intended for re-export, or temporarily exported goods intended for re-import, the following must be provided:

- A letter requesting a refund of paid import or export duties;

- Export and import permit for a specific voyage issued by the Ministry of Trade, which must clearly state: Temporary import for re-export, temporary export for re-import;

- Customs declarations for imported and exported goods that have been settled and confirmed by the customs authority regarding the quantity, weight, and type of goods to be re-exported or re-imported;

- An original foreign contract (or a certified copy) between the seller and buyer specifying the quantity, weight, quality, type, etc., of the goods being traded;

- Receipts for paid import or export duties;

- Entrusted export and import contracts (if it is an entrusted export and import arrangement).

In the case of temporarily imported or exported goods that have not yet paid duties according to the customs notification but are still within the tax payment period and have actually been re-exported or re-imported, the following must be presented: The customs notification from the customs authority (instead of the receipts for paid duties);

g) For imported goods by certain Vietnamese enterprises permitted to act as agents for selling to foreign countries, registered in advance with the Ministry of Finance, when applying for a duty refund, the following must be provided:

- A letter requesting a refund of paid import duties;

- An export permit issued by the Ministry of Trade;

- A customs declaration form for exported goods that has been settled and confirmed by the customs authority;

- The tax receipt for import duties.

2. Authority to approve tax refunds:

For cases a, b, c, and d under point 1 of this section, the inspection department confirms, the tax collection department reviews again and processes the tax refund. The Director of the Provincial or Municipal Customs Office signs the decision on tax refund and agrees with the entity entitled to the tax refund to deduct it from the next tax payment. If the amount of tax to be refunded is large and the entity does not have imports or exports in the next period, the customs office will confirm and request the Ministry of Finance (State Budget Department) to refund the tax to the entity.

For cases d, e, and g, the customs authority deposits the collected taxes into a separate account at the treasury. When a tax refund is required, the Ministry of Finance (General Tax Department) will base its decision on the files specified in points d, e, and g of this section and issue a tax refund decision. The customs authority will implement the tax refund for the entity from the aforementioned deposit account at the treasury within seven working days based on this decision.

VIII. HANDLING VIOLATIONS.

1. Handling violations of fraudulent tax acts by taxpayers as stipulated in Clause 3, Article 17 of Decree No. 54/CP dated August 28, 1993 of the Government; if taxpayers commit fraudulent tax acts, in addition to recovering the tax, they shall also bear penalties as follows:

- Failure to declare imported or exported goods: first violation, fined twice the amount of fraudulent tax; second violation, fined three times; third violation and onwards, fined five times.

- Declaring imported or exported goods inaccurately compared to actual imports or exports, such as incorrect quantities, types, grades of goods, incorrect purposes of imports or exports, or conditions of imported or exported goods to take advantage of tax exemptions or reductions; declaring a lower price for tax calculation than the actual purchase price; creating false purchase and sale documents, then: first violation, fined twice the amount of fraudulent tax; second violation, fined three times; third violation and onwards, fined five times the amount of fraudulent tax.

- In cases where the violation involves aggravating circumstances such as organized fraud, large scale fraud, taking advantage of positions, powers, or natural disasters, epidemics, enemy attacks to commit fraud, or evading responsibility after committing fraud, even the first violation may result in a fine of up to three times the amount of fraudulent tax (for failure to declare imported or exported goods) or a fine of up to two times the amount of fraudulent tax (for inaccurate declaration of imports or exports, incorrect purposes, incorrect conditions, declaring a lower price for tax calculation than the actual purchase price, creating false purchase and sale documents).

- Upon discovering that taxpayers have committed fraudulent tax acts, the customs authority issues a penalty decision and collects the fine; if other authorities discover fraudulent tax acts, they compile the file and request the customs authority to issue a penalty decision and collect the fine according to the above provisions.

- Individuals who evade taxes in large amounts, or who have been administratively punished according to the above provisions from the third time onwards, and continue to evade taxes in very large amounts, or commit crimes in other serious cases, will be criminally prosecuted according to Article 169 of the Criminal Code.

2. Handling violations by tax officials and other individuals as stipulated in Article 20 of Decree No. 54/CP dated August 28, 1993 of the Government; the Ministry of Finance specifically defines the following acts of violation:

a) Tax officials or other individuals who take advantage of their positions or powers to embezzle or misappropriate export or import duties, must compensate the State for the full amount of the embezzled or misappropriated duties. Depending on the severity of the violation and disciplinary action, administrative punishment, or criminal prosecution according to the law.

b) Tax officials or other individuals who take advantage of their positions or powers to cover up for violators, or intentionally violate the provisions of the Law on Export Duties and Import Duties, lacking a sense of responsibility in implementing the Law on Export and Import Duties, such as intentionally calculating taxes incorrectly (reducing the quantity, quality of goods compared to the actual exported or imported goods, calculating the taxable value incorrectly, applying the wrong exchange rate for tax calculation, applying the wrong tariff rate); covering up for taxpayers; not inspecting customs declarations for exported or imported goods; not calculating and collecting export duties and import duties but still allowing the export or import of goods; exporting or importing goods without permits (for commercial trade goods), still processing export or import procedures; processing export or import procedures arbitrarily to grant tax exemptions without following prescribed procedures, etc., shall compensate the State budget for the tax amount. Depending on the level of violation, they will be subject to disciplinary action, administrative penalties, or criminal prosecution according to the law.

c) Tax officials who lack a sense of responsibility and intentionally handle matters incorrectly, causing losses to taxpayers or those being processed, such as incorrectly calculating taxes (quantity, taxable value, tax rate errors); collecting taxes from goods that have been exempted or reduced according to regulations; imposing penalties incorrectly according to prescribed regimes; reporting taxes late, causing losses to taxpayers, etc., must fully compensate the loss amount to the taxpayer or the person being processed.

3. Handling of violations of the tax payment deadline: Organizations or individuals violating the tax payment deadline as stipulated in Clause 1 and Clause 2 of Article 17 of Decree No. 54/CP dated August 28, 1993 shall, in addition to paying the full amount of tax as prescribed, also be fined at a rate of 0.2% (two thousandths) of the unpaid tax amount for each day of delay. These provisions also apply to outstanding tax amounts as of March 31, 1992.

IX. REGIME FOR TAX COLLECTION, ACCOUNTING OF TAX REVENUE AND REPORTING ON TAX COLLECTION RESULTS.

1. Tax collection regime:

When receiving declarations of exported or imported goods, the tax collection department must strictly check the bases for tax calculation as prescribed in Article 6 of Decree No. 54/CP dated August 28, 1993 issued by the Government. Accurately determine the tax payable and process the tax notification to the taxpayer, while recording in the journal the declaration number, date, time, and the tax amount payable according to the declaration.

The export duty revenue is collected into Item 4, the import duty revenue is collected into Item 5, and other revenues are collected into Item 30 according to the appropriate chapter, type, item, and category of the current state budget ledger at the National Treasury. Specifically, the tax revenue collected from goods that are raw materials or components imported for production of export goods and temporarily imported goods for re-export, temporarily exported goods for re-import, and imported goods sold or delivered to foreign countries on behalf of others is deposited into a special account at the National Treasury. Customs authorities may only use funds from this account to refund taxes as provided in Points 1d, 1e, and 1g of Section VII of this Circular, based on the decision of the Ministry of Finance.

2. Reporting regime on tax collection results:

a) Provincial customs offices base their reports on tax receipts and actual tax payments made to the state budget, submitting quick reports every five days according to Form 1-BCN (annexed) and no later than the fifth day of the month, submitting formal monthly revenue reports according to Form 2-BCT (annexed).

b) Based on the consolidated reports from provincial customs offices, the General Department of Customs prepares reports on tax collection results to submit to the Ministry of Finance, including quick reports every ten days according to Form 1-BCN and no later than the tenth day of the month, submitting formal monthly revenue reports according to Form 2-BCT.

c) Provincial customs offices base their reports on tax receipts and actual tax payments made to their special accounts at the National Treasury and actual refunds made to taxpayers, submitting quick reports every five days according to Form 3-BCN (annexed) and no later than the fifth day of the month, submitting formal monthly revenue reports according to Form 4-BCN (annexed).

Based on the consolidated reports from provincial customs offices, the General Department of Customs compiles reports to submit to the Ministry of Finance, including quick reports every ten days according to Form 3-BCN and no later than the tenth day of the month, submitting formal monthly revenue and refund reports according to Form 4-BCN. On the tenth day of the first month of each quarter, the General Department of Customs compiles and submits to the Ministry of Finance a report on the progress of national export and import turnover according to Form 5-BCN (annexed).

X. IMPLEMENTATION.

The Ministry of Finance assigns the General Department of Taxation to monitor and inspect the collection of export duties and import duties by the customs sector in accordance with the provisions of Article 23 of Decree No. 54/CP dated August 28, 1993 issued by the Government.

This Circular takes effect from September 1, 1993.

Any guidance on export duties and import duties in previous documents that contradicts this Circular are hereby abolished.