THE MINISTRY OF FINANCE
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SOCIALIST REPUBLIC OF VIET NAM
Independence - Freedom - Happiness
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No: 117/2000/TT-BTC
Hanoi, December 21, 2000
 
CIRCULAR
SUPPLEMENTING AND AMENDING A NUMBER OF POINTS IN THE FINANCE MINISTRY’S CIRCULAR No. 40/2000/TT-BTC OF MAY 15, 2000 GUIDING THE IMPLEMENTATION OF THE PRIME MINISTER�S DECISION No. 176/1999/QD-TTg OF AUGUST 26, 1999 ON IMPORT TAX EXEMPTION FOR MATERIALS AND RAW MATERIALS
Pursuant to the Prime Minister’s Decision No. 176/1999/QD-TTg of August 26, 1999 on import tax exemption for materials and raw materials;
Pursuant to the Prime Minister’s directing opinions in the Government Office’s Official Dispatch No. 4537/VPCP-KTTH of October 18, 2000;
After consulting with the Ministry of Planning and Investment, the Ministry of Trade, the Ministry of Industry and the General Department of Customs, the Ministry of Finance hereby guides the amendments and supplements to a number of points in its Circular No. 40/2000/TT-BTC of May 15, 2000 guiding the implementation of the Prime Minister’s Decision No. 176/1999/QD-TTg of August 26, 1999 on import tax exemption for materials and raw materials, as follows:
I. TO SUPPLEMENT SECTION I - SUBJECTS AND SCOPE OF APPLICATION OF TAX EXEMPTION, AS FOLLOWS:
To supplement and amend Point 1 as follows:
- Investment projects on the list of projects where investment is encouraged, and investment projects in mountainous, deep-lying and remote areas shall enjoy import tax exemption for materials, raw materials and semi-finished products, which can not be produced at home yet or can be produced but fail to meet the required quality standards, in service of the production under the projects, for a period
1. Investment projects on the list of projects where investment is specially encouraged, list of projects where investment is encouraged, and investment projects in mountainous, deep-lying and remote areas specified in Appendix I to the Government’s Decree No. 10/1998/ND-CP of January 23, 1998 on a number of measures to encourage and secure foreign direct investment activities in Vietnam and Article 11 of the Prime Minister’s Decision No. 53/1999/QD-TTg of March 26, 1999 on a number of measures to encourage foreign direct investment in Vietnam;
Projects where investment is encouraged, with trade and/or production lines compatible with List A and investment projects in geographical areas meeting with extremely difficult socio-economic conditions specified in List C of the Appendix, issued together with the Government’s Decree No. 51/1999/ND-CP of July 3, 1999 detailing the implementation of Domestic Investment Promotion Law (amended) No. 03/1998/QH10;
II. TO AMEND SECTION II- TAX EXEMPTION PROCEDURES AND DOSSIERS, AS FOLLOWS:
1. To annul the regulation in the fourthem rule, Points 1 and 2 of Section II: "- The investment preference certificate issued by the competent agencies, which clearly states the subjects entitled to import tax exemption for materials, raw materials and semi-finished products, which cannot be produced at home or can be domestically produced but fail to meet the required quality standards; the tax exemption duration."
To replace the above regulation with the following:
- For domestic enterprises, the business registration certificates granted by competent agencies, which clearly states the production and business lines strictly compatible with List A, or the investment projects in geographical areas with extremely difficult socio-economic conditions, on List C of the Appendix issued together with the Government’s Decree No. 51/1999/ND-CP of July 8, 1999 detailing the implementation of the Domestic Investment Promotion Law (amended) No. 03/1998/QG10;
2. For the projects entitled to enjoy preferences under certain conditions such as the percentage of export products, the percentage of domestic raw materials and supplies to be used, intensive labor employment, the enterprises shall, annually (February 15 at the latest), have to report to the Ministry of Trade the situation on the implementation of the percentage of export products, percentage of domestic raw materials and supplies to be used, and the intensive labor employment in the previous year, which shall serve as basis for consideration and issuance of lists of materials, raw materials and semi-finished products entitled to import tax exemption for the following year. At the same time, the enterprises shall have to send such reports to the provincial/municipal Customs Departments where the import procedures for their goods are carried out and to their directly managing tax offices for use as basis for the final settlement of duty-free materials, raw materials and semi-finished products. If the enterprises fail to ensure the percentage of export products, percentage of domestic materials and supplies to be used, and employment of intensive labor as prescribed, they shall have to pay the import tax arrears already exempted, corresponding to the quantity products not exported.
III. IMPLEMENTATION ORGANIZATION
This Circular takes effect as from the effective date of the Finance Ministry’s Circular No. 40/2000/TT-BTC of May 15, 2000. The previous regulations, which are contrary to the provisions of this Circular, are hereby annulled.
 

 

 
FOR THE MINISTER OF FINANCE
VICE MINISTER





Vu Van Ninh