Laws of Vietnam

INTER-MINISTERIAL CIRCULAR No.11/TT-LB OF JULY 21, 1997 PROVIDING GUIDANCES ON DUTY-FREE IMPORT OF EQUIPMENT OF FOREIGN INVESTED ENTERPRISES

Pursuant to the Prime Minister’s comments in the Government’s Official Dispatch No.3144-KTTH of June 24, 1997.

The Ministry of Planning and Investment, the Ministry of Finance, the Ministry of Trade and the National Administration of Tourism hereby provide following guidances on the duty-free import of equipment of foreign-invested enterprises:

I. Objects and scope of application

1.1. This Circular shall apply to foreign-invested enterprises and foreign parties to business cooperation contracts (hereinafter referred to as enterprises) in such fields as: hotels, office space and apartments for rent; residential housing; construction of markets and trade centers; technical services; dealing in department stores, golf courses; tourist resorts; sport centers; entertainment centers; hospitals; schools; culture; finance; banking; insurance; auditing; consultanty services that had been granted investment licenses before 23 November 1996.

1.2. If the above-mentioned enterprises have been granted by readjusted licenses by the Ministry of Planning and Investment before or after November 23, 1996 in order to increase investment capital, upgrade or expand project scales, this Circular shall also apply thereto (except where the construction is added as a new project at another location).

2. Equipment eligible for import-duty exemption.

An enterprises shall be entitled to a single import-duty exemption for equipment imported as part of the investment capital to form fixed assets for establishing the enterprise according to commodity groups specified in the Appendix attached with this Circular.

Goods eligible for a single import-duty exemption as mentioned above shall be all the equipment that meets the requirements stated in the economic and technical presentations or technical designs, which are exempt from duty upon the first-time import for forming fixed assets to establish the relevant enterprises, but not upon the import for replacement or upgrading.

3. Competence and procedures for approving a list of goods exempt from import duty

Based on the investment license, the economic and technical presentation or technical design of a project, the Ministry of Trade shall determine a list of goods to be exempt once from import duty in respect of equipment of foreign invested enterprises mentioned in Point 2 of this Circular

In the process of approving import plans, if the total value of equipment to be imported by an enterprise is not more than 10% of the breakdown capital of import as set forth in the economic and technical presentation or technical design, but not exceeding of 500,000 USD, the Ministry of Trade shall approve such import without written certification by the Ministry of Planning and Investment.

For the Minister of Trade

Vice Minister

NGUYEN XUAN QUANG

For the Minister of Finance

Vice Minister

VU MONG GIAO

For the General Director of the National Administration of Tourism

Deputy General Director

DANG VAN TIN

For the Minister of Planning and Investment

Vice Minister

NGUYEN NHAC

APPENDIX

(Issued together with Circular No.11/TT-LB of July 21, 1997)

THE LIST OF FOREIGN-INVESTED ENTERPRISES EQUIPMENT CATEGORIES ELIGIBLE FOR ONE IMPORT-DUTY EXEMPTION

1. Office equipment and furniture (computers, printers, fax machines, telex, photocopiers, tables, chairs, file cabinets...)

2. Reception-room furniture (desks, chairs, carpets...)

3. Equipment for kitchens, dinning rooms, restaurants, bars (all kind of cooking stores, microwave ovens, smoke ventilators, deodorizers, kitchen utensils, glasses, plates of various types...)

4. Equipment and furniture for hotel rooms (beds, wardrobes, tables and chairs, TV, refrigerators, telephone ...)

5. Audio-visual equipment (cassette tape recorders players, amplifiers, speakers, VCR, micro ...)

6. Sanitary wares (bathtubs, toilet bowls, wash basins, mirrors, ...)

7. Water supply system of various types (water pumps, filters, water meters, steam boilers, ...)

8. Air-conditioning and ventilating system (central or local air conditioning).

9. Fire alarm and fight system

10. Lighting and electric system (lamps of all kinds, lighting etc.)

11. Garbage and discharge water treatment system.

12. Communications system

13. Transport system (elevators, electric vehicles, trolley of all kinds etc.)

14. Laundry system

15. Security system

16. Equipment and facilities for gymnasiums, swimming pools, tennis courts, hair dressers’, dancing halls, karaoke parlours, entertainment and therapeutic rehabilitation.

17. Lawn machinery and equipment (grass cutter, insecticide sprayers etc.)

18. Water sprayer, irrigation and drainage system

19. Golf facilities (gloves, golf clubs, golf balls etc.)

20. Machinery and equipment for sport and entertainment centers

21. Medical machines and equipment, laboratory equipment

22. Spare parts attached to the above mentioned machinery and equipment.-