Circular guiding on refunding price differentials to enterprises when importing raw materials for export production, applicable from January 1, 2001.
Scope of application
Enterprises engaged in import and export
Key points
- Enterprises importing raw materials to sell to other enterprises for the production of exported goods → shall be refunded the corresponding price differential based on the ratio of finished product exports (Condition: implementing VAT deduction method and having valid purchase-sale documents).
- Procedures, documentation, and authority for resolving price differential refunds are similar to those for resolving import tax refunds.
- Price differential refunds apply to export declarations registered with customs authorities from January 1, 2001.
- Enterprises must implement VAT deduction method to be eligible for price differential refunds.
- Valid purchase-sale documents as prescribed by the Ministry of Finance are required to receive a price differential refund.
🌐 Social impact of this document
- Enterprises importing raw materials for export production will reduce costs due to price differential refunds.
- Customs authorities and related units have additional work in processing price differential refund documentation.
❓ Frequently asked questions
Which enterprises are eligible for price differential refunds?
Enterprises importing raw materials to sell to other enterprises for the production of exported goods and implementing VAT deduction method.
What conditions must be met to receive a price differential refund?
Enterprises must implement VAT deduction method and have valid purchase-sale documents as prescribed by the Ministry of Finance.
What are the procedures and documentation required for receiving a price differential refund?
Procedures, documentation, and authority for resolving price differential refunds are similar to those for resolving import tax refunds.
When does the application of price differential refunds begin?
Applies to export declarations registered with customs authorities from January 1, 2001.
Which agency resolves price differential refund matters?
Customs authorities and related units.
Full text
LETTER
OF THE MINISTRY OF FINANCE NUMBER 8602 TC/TCT DATED AUGUST 7, 2002
REGARDING HANDLING OF PRICE DIFFERENTIAL REFUNDS
Respected: - Ministries, ministerial-level agencies, and central government agencies
- People's Committees of provinces and centrally-administered cities
Implementing the directive of the Prime Minister in Government Document No. 1112/CP-KTTH dated December 4, 2000 regarding agreement not to collect price differentials into the Export Support Fund for imported materials used for processing for export under signed contracts; refunding price differentials for imported materials used for producing goods for export; Based on Circulars No. 18/2001/TT-BTC dated March 22, 2001 and No. 74/2001/TT-BTC dated September 21, 2001 of the Ministry of Finance; After exchanging opinions with the Ministry of Planning and Investment, the Ministry of Trade, and the General Customs Department, the Ministry of Finance guides on refunding price differentials for imported materials used to produce products sold to other enterprises for direct export production as follows:
Imported materials used to produce products sold to other enterprises for direct export production if eligible for VAT refund shall also be eligible for refund of price differential corresponding to the finished product's export rate, subject to the following conditions:
- The importing enterprise and the exporting enterprise comply with value-added tax deduction methods;
- There are purchase-sale documents in accordance with the invoice management regulations of the Ministry of Finance.
Refunding of price differentials as mentioned above shall apply to export declarations registered with customs authorities from January 1, 2001 onwards.
Procedures and authority for handling refunds of price differentials are similar to those for VAT refunds.
The Ministry of Finance informs relevant units for their knowledge and uniform implementation.
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