Laws of Vietnam

Pursuant to the Prime Minister’s Decision No. 195/1999/QD-TTg of September 27, 1999 on the setting up and management of the Export Assistance Fund;

In furtherance of the Prime Minister’s direction in the Government’s Official Dispatch No. 1112/CP-KTTH of December 4, 2000 on the non-collection and/or reimbursement of price differences;

The Finance Ministry hereby guides the non-collection and/or reimbursement of price differences for imported materials and raw materials for the production or processing of export goods, as follows:

I. GENERAL PROVISIONS

1. Application scope and objects:

This Circular guides the non-collection and/or reimbursement of price differences, applicable to enterprises which have imported materials and raw materials liable to the payment of price differences under the Prime Minister’s Decision No. 195/1999/QD-TTg of September 27, 1999 on the setting up and management of the Export Assistance Fund (hereinafter referred to as Decision No. 195/1999/QD-TTg for short), but use such materials and raw materials for the production of export goods or the processing for foreign countries of goods to be later exported under the signed contracts.

2. Mode of implementation:

2.1. Materials and raw materials imported for the processing for foreign countries of goods to be later exported under the already signed contracts shall not be liable to the payment of price differences right at the time of importation;

2.2. For imported materials and raw materials, which are liable to the price difference collection and used for the export goods production, the time limit for price difference payment shall be that for import tax payment prescribed at Point b, Clause 3, Article 4 of the Government’s Decree No. 94/1998/ND-CP of November 17, 1998 detailing the Law Amending and Supplementing a Number of Articles of Export Tax and Import Tax Law No. 04/1998/QH10 of May 20, 1998.

2.3. If past the time limit prescribed at Item 2.2 of this Point, enterprises still fail to export their products, they shall have to pay price differences for the imported volume of materials and raw materials according to the current regulations. When exporting their products, the enterprises shall be reimbursed with the already paid price differences corresponding to the volume of imported materials and raw materials actually used for the production of such export products.

II. SPECIFIC GUIDANCE ON THE NON-COLLECTION AND/OR REIMBURSEMENT OF PRICE DIFFERENCES

1. For materials and raw materials imported for the processing of export goods

1.1. The order, procedures and dossiers applicable to cases of non-collection of price differences prescribed at Item 2.1, Point 2, Part I of this Circular shall be carried out simultaneously and strictly according to the order and procedures for import tax exemption for materials and raw materials imported for the processing for foreign countries of goods to be later exported under the already signed contracts.

1.2. The Customs Departments of the provinces and centrally-run cities where enterprises fill in the import procedures (hereinafter referred to as the customs authorities for short) shall base themselves on dossiers of import tax exemption for imported materials and raw materials to issue decisions on non-collection of price differences simultaneously with the issuance of decisions on import tax exemption on the case-by-case basis;

1.3. The non-collection of price differences for import materials and raw materials prescribed at Item 2.1, Point 2, Part I of this Circular shall apply only to volume of materials and raw materials actually put into the production of export products, for which the decisions on corresponding import tax exemption have already been issued.

2. For materials and raw materials imported for the production of export goods

2.1. To be eligible for the time limit for price difference payment prescribed at Item 2.2, Point 2, Part I of this Circular, enterprises shall have to complete their dossiers satisfying the conditions prescribed at Point 2, Part III, Section C of the Finance Ministry’s Circular No. 172/1998/TT-BTC of December 22, 1998 guiding the Government’s Decree No. 54/CP of August 20, 1993 and Decree No. 94/1998/ND-CP of November 17, 1998 detailing the implementation of the Law on Export Tax and Import Tax and the Laws Amending and Supplementing a Number of Articles of the Law on Export Tax and Import Tax (hereinafter referred to as Circular No. 172/1998/TT-BTC).

2.2. Basing themselves on the prescribed dossiers, the customs authorities shall issue notices on price difference payment time limits to enterprises, and at the same time open monitoring books to determine price difference amounts (if any) to be paid by enterprises when they export their products.

2.3. If within the price difference payment time limit, enterprises have exported their products, they shall send written requests for exemption of price difference payment to the customs authorities.

2.3.1. Basing themselves on enterprises’ written requests, the customs authorities shall verify dossiers and issue decisions on non-collection of price differences on the case-by-case basis.

2.3.2. The non-collection of price differences shall apply only to volumes of imported materials and raw materials, for which decisions on import tax exemption have already been issued, and be effected simultaneously with such decisions on import tax exemption.

2.4. If past the time limit for price difference payment prescribed at Item 2.2, Point 2, Part I of this Circular, enterprises still fail to export their finished products, they shall have to pay price differences for the volume of imported materials and raw materials according to the current regulations. In cases where enterprises delay the price difference payment, they shall be handled for violations like cases of delaying import tax payment specified at Point 1, Part I, Section G of Circular No. 172/1998/TT-BTC of December 22, 1998 of the Finance Ministry.

3. Reimbursement of price differences for materials and raw materials imported for the production of export goods after they are paid according to the regulations

3.1. The order and procedures for reimbursing price differences for cases specified at Item 2.3, Point 2, Part I of this Circular shall strictly comply with the order and procedures for reimbursing import tax for materials and raw materials imported for the export goods production prescribed in Circular No. 172/1998/TT-BTC.

3.2. Besides the dossiers prescribed at Point 1, Part I, Section E of Circular No. 172/1998/TT-BTC, enterprises applying for price difference reimbursement shall have to submit the following additional dossiers:

a/ Written requests for reimbursement of price differences already paid by enterprises, clearly stating the price difference amounts already paid and those requested to be reimbursed;

b/ Receipt(s) of price difference payment (or papers evidencing remittances into the State budget, or the State Treasury’s written certification of paid price difference amounts);

3.3. The customs authorities shall base themselves on the above provisions to issue decisions on price difference reimbursement on the case-by-case basis. The price difference reimbursement shall be effected simultaneously with the reimbursement of import tax (if any). The collected price difference amounts to be reimbursed shall be determined in proportion to the volume of import materials and raw materials volumes for which import tax (if any) has been reimbursed and must not exceed the price difference amounts actually remitted by the enterprises into the State budget according to the State Treasury’s written certifications. Enterprises shall not be reimbursed price differences for materials and raw materials which are determined ineligible for reimbursement of already paid import tax.

3.4. On the basis of customs authorities’ decisions on reimbursement of collected price differences, the State Treasury offices of the provinces and centrally-run cities shall effect the reimbursement of price differences to enterprises. The sources for reimbursement shall be accounted into the Export Assistance Fund’s account(s) opened at the State Treasury.

4. Retrospective collection of price differences

4.1. Enterprises that have imported materials and raw materials, which are eligible for non-collection of price differences specified at Item 2.1, Point 2, Part I of this Circular, and use such volume of materials and raw materials for purposes other than those prescribed to serve as basis for non-collection of price differences shall have to declare such materials and raw materials volume and retrospectively pay price differences therefor.

4.2. The bases for calculating price differences to be retrospectively collected shall comply with the principle for price difference calculation prescribed at Item 1.1, Point 1, Part I, Section B of Circular No. 150/1999/BTC-TT of December 21, 1999 of the Finance Ministry guiding the implementation of the Prime Minister’s Decision No. 195/1999/QD-TTg, and be applied according to the regulations applicable at the time of calculating price differences to be retrospectively collected.

4.3. The time limits for retrospective payment declaration and retrospective payment of price differences shall be determined according to the time limit for retrospective collection of import tax prescribed in Part II, Section E of Circular No. 172/1998/TT-BTC.

III. ORGANIZATION OF IMPLEMENTATION

1. This Circular takes effect as from January 1, 2001.

2. If problems arise in the course of implementation, the ministries, branches, localities and enterprises are requested to report them to the Finance Ministry for study, consideration and additional guidance.

For the Finance Minister
Vice Minister
TRAN VAN TA