General department of vietnams customs instructing on applying 0% tax rate for importing spare parts for automobiles

General department of customs issued letter no.1636/TCHQ-TXNK to instruct Customs Departments of provinces and cities for implementing the program of tax incentives for importing spare parts for automobiles.

On November 16, 2017, the Government issued Decree No. 125/2017 / ND-CP amending and supplementing a number of Articles of Decree No. 122/2016 / ND-CP dated September 1, 2016 of the Government on Export Tariff, Preferential Import Tariff, List of Goods and Tariffs, Mixed Taxes, Import Tariffs outside of tariff quotas, including provisions on tax incentives for automotive components imported at Article 7a of the Decree (hereinafter referred to as Program). To facilitate enterprises and Customs Departments in provinces and cities in implementing the Program, based on Decree No. 125/2017 / ND-CP and legal documents on tax, customs and general The Customs Department provides the following guidance:

  1. Subjects and Conditions for applying the Program

Comply with the provisions of Clause 2, Article 7a of Decree No. 125/2017 / ND-CP of the Government, in which the determination of imported automobile components is not yet produced in the country according to the provisions of Circular No. 14 / 2015 / TT-BKHĐT dated November 17, 2015 of the Ministry of Planning and Investment and amending correspondence to this circular.

  1. Application and registration procedures for participation in the Program

2.1. Enterprises prepare the Application for participation in the Program in accordance with the provisions of Point a, Clause 3 Article 7a Decree No. 125/2017 / ND-CP and submit to the Customs Branch where the head office is located or where the house is located. Production machine before importing the first shipment to join the Program.

2.2. Customs Sub-department where the application for registration for participation in the Program is received:

+ Receiving dossiers and responding to the receipt of dossiers for enterprises.

+ Send a written notice to the General Department of Customs of the list of enterprises (including the business name, tax code, minimum vehicle commitment and minimum volume of committed vehicles) registered to participate Program to publish this list on the website of the General Department of Customs.

2.3. Department of Information Technology and Customs Statistics:

Published on the website of the General Department of Customs, the list of eligible enterprises registered to participate in the Program (including the business name, tax code, commitment of minimum specific volume and group of vehicles committed to general output) minimum) and update the list upon receipt of notification from the Customs Branch.

  1. 3. Dossier, customs import procedures.

3.1. Import customs dossiers and procedures shall comply with current regulations.

3.2. For codes of type and description of goods on import goods declarations, provincial and municipal Customs Departments are requested to guide enterprises to make declarations as follows:

a) Type code: declare Code of type A43 – “Import of automotive components to participate in the Import Tax Preferential Program” for imported automobile components with products of Group 98.49 expected to produce , assembling for the group of cars registered to participate in the Program.

Note: The declaration of type code A43 applies only to automotive components used for production and assembly for the group of cars registered to participate in the Program under the codes specified in Group 98.49 and belong to type that cannot be produced domestically (specified in the Ministry of Planning and Investment’s Circular No. 14/2015 / TT-BKHĐT of November 17, 2015, and amendments and supplements to this Circular)

b) Description of goods: declaration of component code (self-coded by enterprise for monitoring management) + component name (detailed description of name, specifications, specifications, composition, model, sign / code, character, utility) + name of the model of the production and assembly planned to participate in the Program.

3.3. In case the E-customs V5 System warns against type A43 code declaration, the customs office shall do the following:

– For the declaration of gold flow and red channel: in addition to the inspection of documents and actual inspection of goods according to regulations, customs officers must check and compare imported goods in cases of declaration according to types A43 or not. In case the enterprise has not declared correctly, it is required that the enterprise declare amendments and supplements according to regulations.

– For the green flow declaration: Keeping information of green flow declarations with warning on E-customs V5 System to check and compare information on declarations with relevant data information contained in the Information system of customs authorities and documents of enterprises submitted when applying the tax rate of 0%.

  1. Dossier, procedures for applying 0% tax rate of Group 98.49

4.1. Application file: Filing dossier in accordance with detailed provisions in point b, Clause 3 Article 7a Decree No. 125/2017 / ND-CP. For the requirement of the List of import goods customs declarations, the list of paid tax amounts according to each import goods declaration form prescribed in Section b, Clause 3 of Article 7a, requesting Customs Bureau The provincial / municipal agencies shall guide enterprises to make declarations according to the List No. 01 (attached) to facilitate and agree on a form.

4.2. Location for receiving documents: Customs Sub-department where the enterprise registers to participate in the Program.

4.3. Time for enterprises to submit dossiers: Enterprises shall make accurate and complete dossiers and submit dossiers to customs offices where enterprises register to participate in the Program to apply the 0% tax rate of Group 98.49 to with automotive components imported to manufacture and assemble groups of cars registered under the Program’s route during the proposed period, no later than 60 days after June 30 or December 31 annual.

4.4. The Customs Sub-Department where the dossier is received shall check the application file for registration of the Program, the application file for the application of 0% tax rate shall be submitted by the enterprise and compared with the customs dossier of the imported automobile component. and relevant data information in the information system of the customs office to identify the subject and the Conditions for application of the tax incentives program specified in Clause 2, Article 7a of Decree No. 125 / 2017 / ND-CP. Simultaneously perform the function 5. Lookup> 2. Details of import and export records on the centralized Accounting System to look up and compare the information of vouchers provided by enterprises in accordance with data on tax amounts paid, the tax amount requested to be refunded on the centralized Accounting System.

a) In case the contents need to be clarified, the customs office shall request the enterprise to explain and supplement relevant information.

b) In cases where enterprises fail to meet the subjects and conditions for application of tax incentive programs, customs offices shall reply in writing to enterprises.

c) In cases where enterprises meet all the conditions for application of tax incentive programs and enterprises (taxpayers) with paid tax amounts for imported automobile components larger than tax amounts payable at the tax rate of group 98.49, customs offices shall handle overpaid tax amounts for enterprises according to the provisions of the Law on Tax Administration and guiding documents.

In cases where enterprises meet the conditions and conditions prescribed to apply the tax incentive program but have registered import declarations at many different Sub-Departments, the Customs Branch where the enterprise submits the application file 0% tax rate shall be used to make the inspection conclusion minutes to determine the paid import tax amount and the tax amount to be refunded according to each import declaration of each customs unit and at the same time send a notice enclosed with the conclusion minutes check to the Customs Branches where the refunded tax amount arises for the Branches to issue decisions to implement tax refund according to regulations. The Customs Branches where the import declarations arise, which apply the Preferential Program, after receiving the attached notices of the inspection conclusion minutes issued by the Sub-Department, apply the tax rate of 98.49 Group to send then the import tax shall be remitted in excess to the enterprises according to the provisions of the Tax Administration Law and guiding documents.

Proposing Customs Departments of provinces and cities to direct and guide Sub-Departments and enterprises under the above guidelines to agree on the application from April 20, 2018.

The General Department of Customs informs the customs unit to know and implement.

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