LETTER

OF THE MINISTRY OF FINANCE NUMBER 8528/BTC-TCHQ DATED JULY 7, 2005 REGARDING EXEMPTION FROM IMPORT TAX AND NON-IMPOSITION OF VALUE ADDED TAX ON SHOE MOLDS

RESPECTED: Customs Departments of provinces and cities

In the course of implementing exemptions from import tax and non-imposition of value added tax on imported goods to create fixed assets for foreign-invested enterprises, according to reports from the General Department of Customs, there are currently issues concerning imported shoe molds. After discussions with the Ministry of Trade, PLANNING AND INVESTMENT, the Ministry of Finance provides additional guidance as follows: Pursuant to Article 57 of Decree No. 24/2000/NĐ-CP dated July 21, 2000 of the Government detailing the implementation of the Law on Foreign Investment in Vietnam and Decree No. 158/2003/NĐ-CP dated December 10, 2003 of the Government detailing the implementation of the Law on Value Added Tax and the Law amending and supplementing certain provisions of the Law on Value Added Tax: types of molds accompanying main equipment and machinery imported to create fixed assets for enterprises, in accordance with investment licenses issued by competent authorities, are exempt from import tax and not subject to value added tax.

In cases where types of paper molds are imported at different times than the main equipment and machinery but these molds are compatible with the technical characteristics of the imported machines and belong to the production line and process for producing products as stipulated in the issued investment license, they are also exempt from import tax and not subject to value added tax.

The Ministry of Finance

hereby informs relevant customs units of provinces and cities to be aware and implement this guidance. roughnotify for the customs units of provinces and cities to be aware of and implement.