This circular guides the refund of import tax for raw materials imported to produce export goods, addresses cases of errors in customs declaration before September 1, 2003, and specifies procedures for tax refunds from this date onwards.
Scope of application
Export production enterprises
Key points
- Enterprises importing raw materials to produce export goods are eligible for a refund of import tax corresponding to the ratio of finished products exported (Article 1).
- In cases where there are errors in customs declaration procedures regarding export formalities, enterprises will still be considered for tax refunds if they have registered material consumption quotas and obtained confirmation of actual exports from the Customs Authority (Point 2).
- The Customs Authority shall inspect accounting records and documents related to imported and exported goods before granting a tax refund (Point 3).
- Procedures for refunding import taxes on raw materials imported to produce export goods are implemented according to Circular No. 172/1998/TT-BTC and Circular No. 240 TC/TCT from September 1, 2003 (Point 4).
- The Customs Authority shall cooperate with the local Tax Department to inspect enterprise accounting records before granting a tax refund.
- Procedures for tax refunds are detailed in Circular No. 172/1998/TT-BTC and Circular No. 240 TC/TCT.
🌐 Social impact of this document
- To assist export production enterprises in obtaining import tax refunds, thereby reducing costs.
- The Customs Authority has additional responsibilities to inspect enterprise accounting records before granting a tax refund.
- Enterprises must comply with regulations regarding the registration of material consumption quotas and confirmation of actual exports to be eligible for tax refunds.
❓ Frequently asked questions
Can enterprises obtain an import tax refund if there are errors in customs declarations?
Yes, if they have registered material consumption quotas and obtained confirmation of actual exports from the Customs Authority.
What documents specify procedures for importing tax refunds?
Circular No. 172/1998/TT-BTC dated December 22, 1998, and Circular No. 240 TC/TCT dated January 19, 2000.
Which authority inspects enterprise accounting records before granting a tax refund?
The Customs Authority cooperates with the local Tax Department to conduct inspections.
Full text
LETTER
OF THE MINISTRY OF FINANCE NUMBER 8422 TC/TCT DATED AUGUST 15, 2003
REGARDING REFUND OF IMPORT TAX ON RAW MATERIALS FOR EXPORT PRODUCTS
Dear: - Ministries, ministerial-level agencies, and government agencies
- People's Committees of provinces and centrally-run cities
To implement the Law on Export Duties and Import Duties and to encourage export production, to address difficulties regarding requests for refund of import tax on raw materials imported for producing exported goods that have been exported due to errors in customs declaration procedures (export for business purposes) arising before August 2003, the Ministry of Finance provides guidance as follows:
Pursuant to paragraph g, point 1, section I, part E Circular No. 172/1998/TT-BTC dated December 22, 1998 issued by the Ministry of Finance guiding the implementation of Decree No. 54/CP dated August 28, 1993 and Decree No. 94/1998/NĐ-CP dated November 17, 1998 of the Government detailing the implementation of the Law on Export Duties and Import Duties; Circular No. 240 TC/TCT dated January 19, 2000 issued by the Ministry of Finance regarding refund of import tax for raw materials imported to produce exported goods; then raw materials imported to produce exported goods are eligible for a refund of import tax corresponding to the export ratio.
The procedures and documents for reviewing tax refunds are stipulated in paragraph g, point 1, section I, part E Circular No. 172/1998/TT-BTC dated December 22, 1998 issued by the Ministry of Finance.
In cases where raw materials for export production or imported under business import procedures are used to produce exported products and the enterprise has established and registered consumption quotas for raw materials with customs authorities before exporting the product (for cases involving raw material imports for export production) or before applying for a tax refund (for business import cases), if there is an error in the customs declaration regarding the form of export (business export), then such cases are still eligible for a refund of import tax according to paragraph g, point 1, section I, part E Circular No. 172/1998/TT-BTC dated December 22, 1998 issued by the Ministry of Finance. Customs authorities shall coordinate with local Tax Departments to inspect the enterprise's accounting records and documents regarding imported goods, exported goods, raw material usage, quantity of exported products, and payment for exported goods before applying for a tax refund. From September 1, 2003 onwards, refunds of import tax on raw materials imported for export production shall be implemented according to the procedures set forth in paragraph g, point 1, section I, part E Circular No. 172/1998/TT-BTC dated December 22, 1998 issued by the Ministry of Finance and Circular No. 240 TC/TCT dated January 19, 2000 issued by the Ministry of Finance regarding refund of import tax for raw materials imported to produce exported goods.
Relations map
Click a document to open. A red border = a relation that changes validity.
Translations
This document is available in the following languages: