CIRCULAR

AMENDING THE LIST OF GOODS AND PREFERENTIAL IMPORT TAX RATES PARTICULARLY APPLICABLE TO MATERIALS, SPARE PARTS AND AUXILIARY PARTS FOR PRODUCTION OF KEY INFORMATION TECHNOLOGY PRODUCTS IN CHAPTER 98 OF PREFERENTIAL IMPORT TARIFF ENCLOSED WITH CIRCULAR NO. 164/2013/TT-BTC DATED 15/11/2013 BY THE MINISTER OF FINANCE

Pursuant to the Law on Export and import tax dated 14/6/2005;

Pursuant to Resolution No. 295/2007/NQ-UBTVQH12 dated 28/9/2007 on promulgation of export tariff according to the list of taxable goods and tax framework for specific groups of goods, Preferential import tariff according to the list of taxable goods and preferential tax framework for specific groups of goods;

Pursuant to the Decree No. 87/2010/ND-CP dated August 13, 2010 by the Government detailing the implementation of a number of articles of the Law on Export and import tax;

Pursuant to Decree No. 215/2013/ND-CP dated December 23, 2013 by the Government defining the functions, tasks, entitlements and organizational structure of the Ministry of Finance;

At the request of the Director of the Tax Policy Department,

The Minister of Finance promulgates the Circular amending the list of goods and preferential import tax rates particularly applicable to materials, spare parts and auxiliary parts for production of key information technology products prescribed in Chapter 98 of Preferential import tariff enclosed with Circular No. 164/2013/TT-BTC dated 15/11/2013 by the Minister of Finance.

Article 1. Amendments to Section I – Notes and conditions for particular application of preferential import tax rates materials, spare parts and auxiliary parts for production of key information technology products prescribed in Chapter 98

1. Clause b.8 is added to point 3 – Classification methodology, conditions for applying the particular preferential import tax rates specified in Chapter 98, import finalization and use in Section I – Notes and conditions for applying particular preferential import tax rates specified in Chapter 98 of Circular No. 164/2013/TT-BTC dated 15/11/2013 by the Minister of Finance as follows:

“b.8 Imported goods in group 98.34:

b.8.1) Application requirements:

- Imported goods shall be materials, spare parts and auxiliary parts for producing key information technology products having code 9834.12.90, 9834.28.0 to 9834.37.00 of group 98.34

- Goods shall be imported by enterprises producing key information technology products.

b.8.2) Import procedures:

b.8.2.1 – Responsibilities of customs declarant:

Customs declarant must register the list of imported goods being materials, spare parts and auxiliary parts for producing key information technology products having code 9834.12.90, 9834.28.00 to 9834.37.00 (on the List) with the Sub-department of Customs where is most convenient for the declarant with the amount of export every year conformable to the capacity/need for manufacture every year of the factory before importing the first consignment. An application submitted to the List issuing agency shall include:

- A certificate issued by the Ministry of Information and Communications of the List;

- An official application for the list;

- The List of goods and monitoring sheet

An official application for the List, the List and the monitoring sheet shall comply with regulations in clause 5 Article 104 of Circular No. 38/2015/TT-BTC dated 25/3/2015 by the Ministry of Finance, where the phrase “tax exemption” is replaced by “for producing key information technology products".

If the registered List needs modification, the customs declarant shall send documents to customs authority where the List is registered before the initial import of goods or before the import of the next consignment with modified List to prove that the modification is suitable. An application for modification submitted to the List issuing agency shall include:

- An official application for a modified list;

- The List of goods and monitoring sheet that are modified.

If the List and the monitoring sheet are lost, the customs declarant shall submit to customs authority where the List is initially issued an application for reissuance, including:

- A official application for reissuance of the List/ monitoring sheet containing reasons of the loss and a commitment of the customs declarant of the accuracy of the declaration;

- A list of all customs declaration sheets (electronic or written ones) of the goods imported according to the list;

- The List and the monitoring sheet of the customs authority where the import procedures of the last consignment are carried out before the loss (01 photocopy verified by the importing customs authority).

When carrying out the customs procedures, the customs declarant shall present the customs authority where the customs declaration sheet is registered the following documents:

- Customs dossiers according to current regulations;

- List of goods and monitoring sheet that have been registered with the customs authority (the copy to be sent to the customs declarant) for the customs authority to carry out the back subtraction of imported goods.

Periodically, every year, no later than the 90^th date from the ending date of fiscal year, the customs declarant shall submit the report on the use of materials, spare parts and auxiliary parts so that key information technology products are eligible for particular preferential import tax rates according to the codes 9834.12.90, from 9834.28.00 to 9834.37.00 in fiscal year to the customs authority according to regulations in Article 41 of Decree No. 08/2015/ND-CP dated 21/01/2015 by the Government and Article 60 of Circular No. 38/2015/TT-BTC dated 25/3/2015 by the Minister of Finance. Another copy of the report shall be sent to the Ministry of Information and Communications for supervision.

b.8.2.2 – Responsibilities of the customs authority:

b.8.2.2.1 – When receiving the List:

- When the customs declarant has just submitted the documents, the Sub-department of Customs of where the customs declarant registered the List shall check and formulate supervision sheet, append verification seal to 02 copies of the List of imported goods and 01 copy of the monitoring sheet (01 original copy of the List shall be retained, 01 original copy of the List and 01 original copy of the monitoring sheet shall be sent to the customs declaration to be presented to customs authority where the procedures for import of goods are carried out to subtract back the actually imported goods and calculate tax amount according to regulations in Circular No. 38/2015/TT-BTC dated 25/3/2015 by the Minister of Finance and Point b.8.2.2.2 clause 1 Article 1 of this Circular).

- If the customs declarant wishes to modify the List and the monitoring sheet, the Sub-department of Customs where the customs declarant registered the List shall check and formulate supervision sheet, append verification seal to 02 copies of the List of imported goods subject to modification and 01 copy of the  monitoring sheet subject to modification (01 original copy of the List shall be retained, 01 original copy of the List and 01 original copy of the monitoring sheet shall be sent to the customs declarant to be presented to customs authority where the procedures for import of goods are carried out to subtract back the actually imported goods and calculate tax amount according to regulations in Circular No. 38/2015/TT-BTC dated 25/3/2015 by the Minister of Finance and Point b.8.2.2.2 clause 1 Article 1 of this Circular).

- If the List and the monitoring sheet are lost, on the basis of the recommendation of the customs declarant and the verification of the Customs Departments of another area, customs authority of where the customs declarant registered the List shall check and reissue the List of products, monitoring sheet of materials, spare parts and auxiliary parts for the production of key information and technology products of codes 9834.12.90, from 9834.28.00 to 9834.37.00 that have not been imported according to regulations in Circular No. 38/2015/TT-BTC dated 25/3/2015 by the Minister of Finance.

Deadline for processing applications for modification of the Lists; reissuance of the Lists shall comply with regulations in Article 104 of Circular No. 38/2015/TT-BTC dated 25/3/2015 by the Minister of Finance.

b.8.2.2.2 – When carrying out procedures for import:

Apart from customs procedures as prescribed in regulations, pursuant to the customs dossiers, the customs authority shall compare information with the monitoring sheet to subtract back the materials, spare parts and other auxiliary parts for production of key information and technology products of codes 9834.12.90, from 9834.28.00 to 9834.37.00 that the customs declarant has actually imported and append seal according to regulations. 01 copy of the List and the completed monitoring sheet shall be retained to the customs dossier.

If the imported goods on the monitoring sheet are used up, Heads of the Sub-department of Customs where the final procedure is carried out shall state “goods have been imported according to the List No……” on the original copy of the monitoring sheet of the customs declarant and shall retain 01 photocopy and sent 01 photocopy to the customs declarant and sent the original copy to the Sub-department of Customs where the monitoring sheet is issued for inspection of goods granted with customs clearance according to regulations.

If the Sub-department of Customs receiving the registration of the List is also the Sub-department of Customs carrying out the procedures for importing goods, when the Heads of the Sub-department of Customs has verified on the monitoring sheet that the imported goods are used up, the Sub-department of Customs shall retain the original copy and sent the customs declarant 01 photocopy, sent 01 photocopy of the monitoring sheet and the application for registration of the list to conduct inspection of goods granted customs clearance according to regulations.

b.8.2.2.3 – When the original copy of the monitoring sheet sent from the Sub-department of Customs carrying out the final procedure is received, Sub-department of Customs where the List is registered and where the monitoring sheet is issued shall gather all applications for registration of the list and send them to the Sub-department of customs conducting post-customs clearance inspection as the basis for post-customs clearance inspections according to regulations on management of risk in the use of imported goods that are applied the particular preferential import tax rates according to codes 9834.12.90, 9834.28.00 to 9834.37.00 according to regulations in Article 98 of Decree No. 08/2015/ND-CP dated 21/01/2015 by the Government.

2. If goods of code 9834.12.90, from 9834.28.00 to 9834.37.00 are used unconformably, the import tax shall be calculated according to preferential importing rates for the corresponding codes in Chapter 97 at the time of registration of Declaration of importing goods with the customs authority.

Article 2. Amendments to Section II – List of goods and preferential import tax rates in Chapter 98

A number of articles being materials, spare parts and auxiliary parts for production of key information technology products are added to Heading 9834 in Section II of Chapter 98 as follows:

Article 3. Effect

1. This Circular comes into effect from December 20, 2015.

2. Articles 2 and 3 of Circular No. 101/2015/TT-BTC dated 29/6/2015 are annulled.

3. Any entities having registered the list of materials and auxiliary parts for production of key IT products according to regulations in Circular No. 101/2015/TT-BTC dated 29/6/2015 that carries out the modification of the list and reports the use of materials, spare parts and auxiliary parts after the effective date of this Circular shall comply with regulations in this Circular.