Laws of Vietnam

THE PRIME MINISTER

DECIDES:

Article 1.- To assign the Ministry of Finance to realize the reduction of import tax on import fertilizers and plant protection drugs of various kinds with a view to minimizing the input costs for agricultural production. The application duration lasts from now till the end of June 2002; to expeditiously study and submit to the Government for consideration in August 2001 the time for collecting value added tax on import fertilizers and plant protection drugs, which is in line with the particulars of circulation of these two commodity items in agricultural production.

Article 2.- To provide tax preferences in the field of export goods processing or production according to current regulations for the following cases:

- Processing goods for foreign traders by not directly exporting but assigning another enterprise to export or produce export goods according to the processing-ordering party’s mandate.

- Producing semi-finished products to be assigned to another enterprise for production of export goods.

The Ministry of Finance shall specifically guide the tax preferences for these cases.

Article 3.- To assign the Ministry of Finance to assume the prime responsibility and coordinate with the concerned ministries and branches in increasing import tax rates on agricultural goods such as rice, maize, soybean, vegetables and fruits,… in 2001.

To expeditiously promulgate in the third quarter of 2001 new tools of tax management in order to create favorable conditions for a number of domestic manufacturing industries as prescribed in the Prime Minister’s Decision No. 46/2001/QD-TTg of April 4, 2001; to manage the minimum prices for tax calculation of a number of commodity items with a view to regulating and restricting import, saving foreign currencies, creating jobs and making full use of materials available in the country.

Article 4.- Not to collect for one year the whole amount of customs fees for all export goods and all kinds of fees on export quotas, export permits and certificates of export goods’ origin (C/O). In cases where export quotas in 2001 are assigned in form of bidding but the exportation of bid-winning goods items is difficult, the bidding-organizing agency(ies) shall consider and reimburse 100% of bid-participation charges to bid-winning enterprises for the bid-winning quota proportion, which has not yet been implemented.

Article 5.- The Ministry of Finance shall coordinate with the People’s Committees of border provinces in directing and managing the exemption and/or reduction of fees for people, means and goods participating in the export through the territories of border provinces; not to collect lot-trading tax on export goods brought to the frontier from inland provinces.

Article 6.- The General Department of Customs shall continue stepping up the simplification of customs procedures. Particularly for export activities, traders shall not be necessarily obliged to produce their foreign trade contracts when carrying out customs procedures. To enhance the application of "green channel" (inspection exemption) regime for export goods; to create the most favorable conditions for the expertise of export goods’ quality.

Article 7.- The Ministry of Trade shall coordinate with the Ministry for Foreign Affairs, the General Department of Customs and the People’s Committees of border provinces in revising all existing customs-clearance points; work out plans to handle border gate-related problems in principle or with agreement between localities of two countries, or with agreement at the Government level, in order to encourage goods circulation in the border areas and submit them to the Prime Minister for consideration and decision.

Article 8.- To assign the Ministry of Planning and Investment to coordinate with the Ministry of Trade in guiding concerned branches to step up potential service activities such as sea transport, aviation, and post and telecommunications; to work out target programs on service export and import of each branch in the 2001-2005 period and systemize, make statistics and report on the business activities of these types of services to the Prime Minister before October 1, 2001.

Article 9.- This Decision takes effect after its signing.

Article 10.- The ministers of: Finance, Trade, Planning and Investment, Foreign Affairs; the General Director of Customs and the presidents of the People’s Committees of the provinces shall have to implement this Decision.

For the Prime Minister
Deputy Prime Minister
NGUYEN MANH CAM