Circular No. 92/1999/TT-BTC amends and supplements Circular No. 82/1997/TT-BTC guiding the implementation of import tax valuation based on foreign trade contracts.

CIRCULAR

OF THE MINISTRY OF FINANCE NUMBER 92/1999/TT-BTC DATED JULY 24, 1999 AMENDING AND COMPLEMENTING CIRCULAR NO. 82/1997/TT/BTC GUIDING THE IMPLEMENTATION OF APPLICATION OF IMPORT DUTY VALUATION PRICES UNDER FOREIGN TRADE CONTRACTS

In order to address difficulties arising in practice regarding import duty valuation prices, and to facilitate units and enterprises in actively calculating business efficiency, the Ministry of Finance amends and supplements some points of Circular No. 82/1997/TT/BTC dated November 11, 1997 guiding the implementation of application of import duty valuation prices under foreign trade contracts as follows:

I. REPLACE PART C, SECTION I AS FOLLOWS:

"I. For goods not included in the list of goods subject to state management of import duty valuation prices, the following conditions must be met:

1. A written foreign trade purchase and sale contract containing all essential elements of a contract, including the following main contents:

+ Name of goods;

+ Quantity;

+ Price;

+ Payment method;

+ Place and time of delivery and receipt of goods;

Forms such as telegrams, telex, fax, email, and other forms of electronic information printed on paper are also considered written forms.

Quotations and acceptance of quotations in written form also have the effect of a commercial contract if they contain all the essential elements of a contract as specified above.

The contents recorded in the contract must be carried out in accordance with the regulations of the Ministry of Trade.

Amendments and supplements to the contract must be carried out according to the appropriate procedures for each type of contract. Specifically, in this case, the amendment and supplement must be signed before the seller completes the shipment procedures to the buyer.

2. Full payment of the value of the consignment through the Bank: it must be clearly stated in the contract that full payment of the value of the imported consignment will be made through a Commercial Bank in freely convertible foreign currency or in a foreign currency agreed upon by both parties in accordance with international payment methods such as L/C, TTR, D/A, D/P.

For goods imported by road, the letter of credit (L/C) payment method must be used and the currency of payment must be freely convertible foreign currency."

3. The General Department of Customs has the right to determine the import duty valuation price in the following cases:

- Goods imported not included in the list of goods subject to state management of import duty valuation prices, and which do not meet the conditions for applying the import duty valuation price according to the contract.

- Goods imported not included in the list of goods subject to state management of import duty valuation prices, and which meet the conditions for applying the import duty valuation price according to the contract but the tax collection authority has sufficient grounds to determine that the price recorded in the contract does not match the actual import price, and the importing unit cannot prove that the price recorded in the contract is the actual import price paid.

Determination of the import duty valuation price must be carried out according to a unified, strict, objective regime without causing delays or negative impacts on cargo release.

II. REPLACE POINT 3, SECTION II, PART C REGARDING CONDITIONS FOR CONSIDERING THE IMPLEMENTATION OF APPLICATION OF THE CONTRACT PRICE AS FOLLOWS:

"3. The importing unit and entrusted importer has no tax arrears subject to compulsory enforcement (confirmed by the Customs Authority);"

III. REPLACE PART D REGARDING VIOLATION HANDLING AS FOLLOWS:

"In case of fraud in foreign trade contracts; failure to declare to the Customs Authority when there is a change in the purpose of using raw materials and supplies that have been taxed based on the price recorded in the foreign trade contract, or violation of the provisions of this Circular, in addition to being required to pay all due import duties and special consumption taxes (if applicable), the violator will be punished for tax evasion according to the current Law on Export Tax and Import Tax, Law on Special Consumption Tax, and Decree No. 22/CP of the Government on administrative penalties for violations in the tax field, and Circular No. 128/1998/TT-BTC dated September 22, 1998 amending and supplementing Circular No. 45TC/TCT dated August 1, 1996 of the Ministry of Finance."

IV. This Circular takes effect from August 1, 1999. Points stipulated in Circular No. 82/1997/TT/BTC dated November 11, 1997 of the Ministry of Finance, if not contrary to this Circular, remain in force. During the implementation process, if there are difficulties, organizations and individuals are requested to promptly report to the Ministry of Finance and the General Department of Customs for consideration and supplementation to ensure compliance.