THE MINISTRY OF FINANCE
---------
SOCIALIST REPUBLIC OF VIET NAM
Independence - Freedom - Happiness
--------------
No. 5193/TC/TCHQ
On the implementation of tax policies based on localization rates for products and accessories of the mechanical-electric-electronic sector
Hanoi, April 28, 2005
 
To: Provincial/municipal Customs Departments
The Finance Ministry has received requests from several enterprises for the application of tax policies based on localization rates to components and accessories imported before the enterprises submit to competent agencies dossiers of registration of the legality of industrial property rights over products registered for the implementation of tax policies based on localization rates. Concerning this matter, the Finance Ministry gives the following opinion:
Pursuant to the December 26, 1991 Law on Export Duties and Import Duties and May 20, 1998 Law No. 04/1998/QH10 Amending and Supplementing a Number of Articles of the Law on Export Duties and Import Duties; Joint Circular No. 176/1998/TTLT-BTC-BCN-TCHQ of December 25, 1998, and Joint Circular No. 120/2000/TTLT/BTC-BCN-TCHQ of December 25, 2000, of the Finance Ministry, the Industry Ministry and General Department of Customs; and the Science and Technology Ministry's opinions in Official Letter No. 672/BKHCN-KHTC of March 30, 2005:
Where enterprises import components or accessories under tax preference policies based on localization rates for local manufacture or assembly, if, at the time of import, the enterprises could not produce documents proving the legality of industrial property rights (documents proving the legality of industrial property rights or dossiers of registration of trademarks) to competent agencies, but met all other conditions for the application of tariff policies based on localization rates as provided for in the above-said Joint Circular No. 176/1998/TTLT/BTC-BCN-TCHQ and Joint Circular No. 120/2000/TTLT/BTC-BCN-TCHQ, but later their products registered for implementation of such tariff policies were granted by competent agencies certificates of industrial property right legality, they shall enjoy import duty rates according to the actual localization rates. If enterprises are detected to commit acts of duty fraud or evasion, they shall be handled according to the provisions of law.
The Finance Ministry hereby notifies the above-said opinion to provincial/municipal Customs Departments for implementation.
 

 

 
Truong Chi Trung