Circular No. 45/2007/TT-BTC dated May 7, 2007 of the Ministry of Finance guiding the application of particularly preferential import tax rates
THE MINISTRY OF FINANCE
SOCIALIST REPUBLIC OF VIET NAM
Independence - Freedom - Happiness
Hanoi, May 07, 2007
GUIDING THE APPLICATION OF PARTICULARLY PREFERENTIAL IMPORT DUTY RATES
Pursuant to Law No. 45/2005/QH11 of June 14, 2005, on Import Duty and Export Duty; and the Government’s Decree No. 149/2005/ND-CP of December 8, 2005, detailing the implementation of the Law on Import Duty and Export Duty;
Pursuant to the Government’s Decree No. 154/2005/ND-CP of December 15, 2005, detailing a number of articles of the Customs Law regarding customs procedures, inspection and supervision;
Pursuant to the Government’s Decree No. 77/2003/ND-CP of July 1, 2003, defining the functions, competent, obligations and organizational structure of the Ministry of Finance;
The Ministry of Finance guides the application of particularly preferential import duty rates as follows:
I. Scope, conditions and principles of application
1. Scope of application:
Imported goods originating from a country, a group of countries or a territory which agrees with Vietnam to apply particular import duty (below referred to as country having agreement on particular preferences with Vietnam for short) in line with a free trade area institution or a table of rates alliance or in order to create favorable conditions for border trade and other particularly preferential cases (below referred to as trade agreements for short).
2. Conditions for application:
2.1. To be eligible for particularly preferential import duty rates, imported goods must meet all specific conditions in the Finance Minister’s relevant decisions promulgating particularly preferential import table of rates for the implementation of trade agreements.
2.2. To be eligible for particularly preferential import duty rates promulgated by the Finance Minister,
(i) Appearing on the corresponding particularly preferential import table of rates promulgated by the Finance Minister.
(ii) Satisfying requirements on the origin of goods, as manifested by certificates of origin under regulations of the Trade Ministry.
2.3. For a lot of imported goods valued (at FOB prices) not more than USD 200, a certificate of origin (below abbreviated to particularly preferential C/O) is not required.
3. Principles of application
3.1. The particularly preferential import duty rate applicable to a certain goods item shall be determined under a decision of the Finance Minister (including amending or supplementing decisions), promulgating the particularly preferential import table of rates for the implementation of a trade agreement, under the guidance in this Circular and relevant current regulations.
3.2. When the MFN duty rate of a goods item specified in the preferential import table of rates is lower than the particularly preferential tax rate specified in Vietnam’s particularly preferential import table of rates applicable to each trade agreement promulgated under the Finance Minister’s decision, the import duty rate applicable to this goods item is the MFN tax rate.
3.3. The particularly preferential duty rates applicable to knockdown details and components in complete sets imported for the assembly of mechanical engineering, electric or electronic products shall be applied as follows:
Knockdown details (detail assemblies) and components (component assemblies) in complete sets are eligible for particularly preferential tax rates applicable to complete goods items if they satisfy the conditions for application of particularly preferential tax rates specified in Section I of this Circular. Other knockdown details and components without particularly preferential C/O are eligible for MFN or common duty rates applicable to complete goods items.
In order to request application of particularly preferential duty rates, enterprises shall produce one or some separate commercial invoices for details (detail assemblies) and components (component assemblies) with particularly preferential C/O.
Particularly preferential duty rates shall be applied at the duty calculation time prescribed by the law on import duty and export duty. Procedures for finalization of import duty with customs offices shall be carried out according to current regulations.
Complete or knockdown components shall be classified on the principles prescribed by current law on classification of imported goods and exported goods and relevant laws.
3.4. Particularly preferential duty rates applicable to goods processed in non-table of rates areas and imported into the domestic market are Vietnam’s particularly preferential tax rates applicable to processed import goods items specified in the particularly preferential import table of rates promulgated by the Finance Minister for each trade agreement.
3.5. When customs declarants cannot submit particularly preferential C/O at the time of registration of import customs declarations but the imported goods satisfy all other conditions stipulated in Section I of this Circular, import duties shall be temporarily calculated at the MFN duty rates. When customs declarants additionally submit particularly preferential C/O which remain valid as prescribed in Section II of this Circular, customs offices shall re-calculate duty amounts at the corresponding particularly preferential duty rates.
3.6. Imported goods with C/O affixed with stamps “FOR CUMULATION PURPOSES ONLY” are not eligible for particularly preferential duty rates.
3.7. Where commercial invoices are issued by a third party other than a signer of a commercial contract, goods imported into Vietnam are still eligible for particularly preferential duty rates if they fully meet the conditions specified in Clause 2, Section I of this Circular.
Click Download to see full text