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DECREE No.
94/1998/ND-CP OF NOVEMBER 17, 1998 DETAILING THE IMPLEMENTATION OF LAW
No. 4/1998/QH10 OF MAY 20, 1998 AMENDING AND SUPPLEMENTING A NUMBER OF
ARTICLES OF THE LAW ON EXPORT TAX AND IMPORT TAX
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THE GOVERNMENT
Pursuant to the Law on Organization of the Government of September 30,
1992;
Pursuant to the Law on Foreign Investment in Vietnam of November 8,
1996; Law on Domestic Investment Promotion (amended) No. 03/1998/QH10 of
May 20, 1998;
Pursuant to the Law on Export Tax and Import Tax of December 26, 1991;
the Law Amending and Supplementing a Number of Articles of the Law on
Export Tax and Import Tax of July 5, 1993; Law No. 04/1998/QH10 of May
20, 1998 Amending and Supplementing a Number of Articles of the Law on
Export and Import Tax;
At
the Minister of Finance’s proposal,
DECREES:
Article 1:
The import tax
rates are stipulated as follows:
1.
The tax rates applicable to import goods include the ordinary tax
rates, the preferential tax rates and the special preferential tax
rates:
a)
The
preferential tax rates shall apply to goods imported from countries or
groups of countries that have agreements on the most favored nation
treatment in their trade relations with Vietnam.
The
preferential tax rates are specified in the Import Tariff issued by the
Minister of Finance. The Ministry of Finance shall assume the prime
responsibility and coordinate with the Ministry of Trade and the
concerned ministries in readjusting, on the basis of export and import
policies and the market price fluctuation in each period, the tax rates
on the Import Tariff to make them compatible to the tax rate bracket set
by the National Assembly Standing Committee.
b)
The
ordinary tax rates shall apply to goods imported from countries that
have no agreements on the most favored nation treatment in their trade
relations with Vietnam.
The
uniformly applied ordinary tax rates shall be 50% (fifty per cent)
higher than the preferential tax rates stipulated in Point a, Clause 1
of this Article. For special cases where the tax rates should be
prescribed lower or higher than 50% (but not higher than 70% of
preferential tax rates), the Ministry of Finance shall, after consulting
the Ministry of Trade, stipulated the tax applicable to each specific
case, ensuring its conformity with the trade policies and relations in
each period.
c)
The
special preferential tax rates shall apply to goods imported from
countries or groups of countries that have agreements with Vietnam on
special import tax preferences under the free trade areas institutions,
tariff coalitions or aimed to create favorable conditions for border
trade exchange.
The
special preferential tax rates shall apply to import goods which fully
meet the following conditions:
- Being
goods items specified in the agreements and fully meeting the conditions
stated in the agreements;
- Being
goods with origin from countries bordering Vietnam or countries being
members of groups with tax agreements which Vietnam has acceded to.
The
Ministry of Trade shall provide detailed guidance on the criteria of
goods origin stipulated in Points a, b and c, Clause 1 of this Article.
2.
There shall be separate regulations on surtax rates stipulated in
Points a, b and c, Clause 2, Article 9 of the Law on Export and Import
Tax and supplemented in Clause 1, Article 1 of Law No. 04/1998/QH 10 of
May 20, 1998.
Article 2:
Export goods and
import goods eligible for tax exemption consideration as stipulated in
Clause 2, Article 1 of Law No. 04/1998/QH10 Amending and Supplementing a
Number of Articles of the Law on Export Tax and Import Tax are specified
as follows:
1.
Goods imported in exclusive service of national security and
defense, scientific research, education and training activities shall be
exempt from import tax according to the import goods list formulated by
the Ministry of Finance after consulting the concerned ministries and
branches.
2.
Import goods of foreign-invested enterprises and foreign parties
to business cooperation contracts under the Law on Foreign Investment in
Vietnam shall be exempt from import tax in accordance with provisions of
Decree No. 12/CP of February 18, 1996 of the Government detailing the
implementation of the Law on Foreign Investment in Vietnam, Decree No.
10/1998/ND-CP of January 23, 1998 of the Government on a number of
measures to encourage and guarantee foreign direct investment in Vietnam
and Decree No. 62/1998/ND-CP of August 15, 1998 of the Government
promulgating the Regulation on investment in forms of
build-operate-transfer contracts, build-transfer-operate contracts and
build-transfer contracts applicable to foreign investment in Vietnam.
3.
Import goods of domestic-invested enterprises operating under the
Law on Domestic Investment Promotion shall be exempt from import tax in
accordance with Article 25 of the Law on Domestic Investment Promotion
(amended) of May 20, 1998.
4.
Goods sent as gifts and/or donations from foreign organizations
and/or individuals and vice versa, and sample goods shall be exempt from
tax according to the levels prescribed by the Ministry of Finance.
The
Ministry of Finance shall prescribe the procedures for considering the
tax exemption for each case as defined in this Article.
Article 3:
Tax declaration
and payment
1.
Organizations and/or individuals, upon each exportation of their
goods as permitted, shall have to make and submit their export goods
declarations and pay export tax to the customs authorities where the
export procedures are carried out, and take responsibility for the
accuracy of their declarations.
2.
Organizations and/or individuals, upon each importation of goods
as permitted, shall have to make and submit import goods declarations
and pay import tax to the customs authorities of the localities with
border-gate through which the goods are imported, and take
responsibility for the accuracy of their declarations.
The
border-gates with great flow of import goods shall be permitted to open
some more places for import procedures clearance and import tax
collection. The General Department of Customs shall consult the Ministry
of Finance before proposing the Government to permit the opening of such
places.
The
customs authorities shall have to inspect export and import goods, carry
out the customs procedures and collect taxes in accordance with
provisions of this Decree.
Article 4:
Goods inspection,
tax calculation and tax payment time limit:
1.
The time for export or import tax calculation shall be the date
when an organization or individual registers its/his/her export or
import goods declaration with the customs authority. The taxes shall be
calculated according to the tax rates and tax calculation prices on the
date the export or import goods declaration is registered.
2.
Within eight (8) working hours from the receipt of an export or
import goods declaration, the customs authority shall have to officially
notify the tax payer of the payable tax amount.
- For
some goods items imported in large quantity each time (such as iron,
steel, steel cast, cement, clinker, petroleum, fertilizers) and those
subject to the quality standard inspection according to the Government’s
regulations before being permitted to be circulated on the Vietnamese
market, the time limit for issuing tax notices may be extended but shall
not exceed 3 working days and shall be specified by the General
Department of Customs.
- For
goods items which require the technical standard inspection before
identifying their code numbers in the tax tariff and their current state
(new or old), in order to ensure the accuracy of the tax calculation,
the time limit for issuing tax notices may be more than 3 working days
but shall not exceed 15 working days.
The
inspection agency(ies) and the State quality control agency(ies) shall
have to complete the inspection and quality control of export or import
goods items within the prescribed time limit so that the customs
authorities can issue tax notices to the tax payers.
The
Ministry of Science, Technology and Environmental shall coordinate with
the Ministry of Trade and the Ministry of Finance in specifically
defining the agencies competent to inspect and control the quality of
export and import goods as well as the agencies competent to make final
decisions in cases of complaints.
3.
The time limit for export tax or import tax payment is prescribed
as follows:
a)
For
export goods, it is fifteen (15) days from the date the tax payers
receive the official notices from the customs authorities on the payable
tax amounts.
b)
For
goods being materials and raw materials imported for export goods
production, it is nine (9) months from the date the tax payers receive
official notices from the customs authorities on the payable tax
amounts.
For
exceptional cases where the production cycles and materials and raw
materials reserves of enterprises in such sectors as ship-building and
mechanical engineering are prolonged, the tax payment time limit may be
extended to suit such production cycles and materials and raw materials
reserves and shall be decided by the Ministry and Finance for each case.
For
exceptional cases where the production cycles and materials and raw
materials reserves of enterprises in such sectors as ship-building and
mechanical engineering are prolonged, the tax payment time limit may be
extended to suit such production cycles and materials and raw materials
reserves and shall be decided by the Ministry of Finance for each case.
In cases
where the goods produced from imported materials and raw materials are
actually exported within the above-prescribed tax payment time limit,
the import tax on the volume of imported materials and raw materials
used for the production of the corresponding exported goods volume shall
not be paid. If the goods are exported outside the prescribed tax
payment time limit, the tax payers shall have to pay tax(es) as
prescribed.
Enterprises producing export goods shall have to register with the
customs authorities their goods which are materials and raw materials
and used for the production of export goods. In cases where enterprises
have registered and been eligible for tax payment time limit prescribed
in this Clause but sold their goods in Vietnam, they shall be handled
according to Article 5 of this Decree.
The
Ministry of Finance shall specify the conditions for tax payment time
limit application and the handling of violations of this Clause.
c)
For
goods temporarily exported for re-import or temporarily imported for
re-export, the time limit shall be fifteen (15) days from the date of
expiry of the temporary export for re-import or temporary import for
re-export time limit.
In cases
where the goods are actually re-imported (for goods temporarily exported
for re-import) or actually re-exported (for those temporarily imported
for re-export) within the prescribed tax payment time limit, the export
tax or import tax shall not be paid for the corresponding goods volume
temporarily re-imported or re-exported.
The
Ministry of Trade shall prescribe the temporary export for re-import and
temporary import for re-export time limits.
For
forms of temporary import for re-export and temporary export for
re-import other than business forms stipulated by the Ministry of Trade,
the tax payment time limits shall comply with Points a, d and e of this
Clause.
d)
For
goods being machinery, equipment, raw materials, fuel, materials and
means of transport, which are imported in service of the enterprises’
production, the time limit shall be thirty (30) days from the date the
tax payers receive the official notices from the customs authorities on
the payable tax amounts.
e)
For
imported consumer goods, the tax payers shall be to fully pay taxes
before receiving their goods. In cases where the payable tax amounts are
guaranteed by credit institutions or other organizations licensed to
conduct some banking activities under the Law on Credit Institutions,
the tax payment time limit shall be thirty (30) days from the date the
tax payers receive the official notice from the tax-collecting agencies
on the payable tax amounts. The Ministry of Trade shall assume the prime
responsibility and coordinate with the concerned ministries in
determining the list of import consumer goods as stipulated in this
Point.
Past the
above-said tax payment time limit, if the tax payers still fail to pay
taxes, the guaranteeing organizations shall have to pay such tax amounts
on the tax payers’ behalf.
The
guaranty for tax payers’ payable tax amounts, the rights and obligations
of the credit institutions providing the guaranty and the obligations of
the guaranteed tax payers shall comply with Articles 58, 59 and 60 of
the Law on Credit Institutions of December 12, 1997.
Article 5:
Tax payers that
violate the Law on Export Tax and Import Tax shall, depending on each
act of violation and its seriousness, be handled according to provisions
in Clause 5, Article 1 of Law No. 04/1998/QH10 of May 20, 1998 Amending
and Supplementing a Number of Articles of the Law on Export Tax and
Import TAX and other legal documents on handling of administrative
violations in the fields of taxation and customs.
Article 6:
This Decree takes
effect from January 1st, 1999. the previous stipulations on
export tax and import tax, which are contrary to this Decree, are now
annulled.
The
Minister of Finance, the Minister of Trade, the Minister of Science,
Technology and Environment, the General Director of Customs and the
Governor of the State Bank of Vietnam shall have to jointly provide
detailed guidances for the implementation of this Decree.
The
ministers, the heads of the ministerial-level agencies, the heads of the
agencies attached to the Government and the presidents of the People’s
Committees of the provinces and centrally-run cities shall have to
implement this Decree.
On behalf of the
Government
For the Prime
Minister
Deputy Prime
Minister
NGUYEN TAN DUNG |
