Laws of Vietnam

CIRCULAR No. 106/1998/TT-BTC OF JULY 23, 1998 GUIDING THE PERIOD OF TEMPORARY NON-PAYMENT OF IMPORT TAX ON RAW MATERIALS AND MATERIALS IMPORTED FOR THE PRODUCTION OF EXPORT GOODS

Pursuant to Article 8 of Decree No. 10/1998/ND-CP of January 23, 1998 of the Government on a number of measures to encourage and guarantee foreign direct investment activities in Vietnam;

Pursuant to Section I of the Government's Resolution No. 02/1998/ND-CP of January 26, 1998 on the policies and measures to encourage export;

Proceeding from the Prime Minister's opinions in Official Dispatch No. 775/CP-KTTH of July 10, 1998;

Basing itself on the actual situation of export and import activities, in order to encourage and create all favorable conditions for raising export efficiency and volume, after consulting the concerned ministries and branches, the Ministry of Finance hereby guides the duration of temporary non-payment of import tax on raw materials and materials imported for the production of export goods, as follows:

Enterprises (Vietnamese enterprises and foreign-invested enterprises) that import raw materials and materials for the production of export goods shall be temporarily free from paying import tax for 9 (nine) months from the date of receiving the official tax notices of the customs authorities on the payable tax amounts. During such period, the enterprises which have actually exported their products shall not have to pay import tax on the volume of raw materials and materials corresponding to the volume of actually exported products. Past such temporary non-payment time limit (9 months), if enterprises have not actually exported their products, they shall have to pay import tax; once they have their products actually exported, they shall be reimbursed with the already paid import tax amounts.

The procedures for and competence to decide the non-collection and/or reimbursement of import tax shall comply with provisions of Circular No.72A-TC/TCT of August 30, 1993; Circular No.53-TC/TCT of July 13, 1995 and Circular No.84/1997/TT/BTC of November 13, 1997 of the Ministry of Finance.

This Circular shall apply to the import goods declarations registered with the customs office as from July 1st, 1998.

The General Department of Customs shall guide the local Customs Departments in uniformly implementing this Circular.

For the Minister of Finance

Vice Minister

PHAM VAN TRONG