Thông tư 127/1998/TT/BTC của Bộ Tài chính hướng dẫn thực hiện chế độ thuế nhập khẩu đối với một số phục tùng, chi tiết dự phòng nhập khẩu cùng bộ linh kiện SKD,CKD,IKD để phục vụ sản xuất

CIRCULAR

GUIDING THE IMPLEMENTATION OF THE REGIME OF IMPORT TAX APPLICABLE TO RESERVE SPARE PARTS AND DETAILS IMPORTED TOGETHER WITH SKD, CKD OR IKD COMPONENT SETS IN SERVICE OF PRODUCTION

Pursuant to Decree No.54-CP of August 28, 1993 of the Government detailing the implementation of the Law on Export Tax and Import Tax and the Law on the Amendments and Supplements to a Number of Articles of the Law on Export Tax and Import Tax;

Pursuant to Article 3 of Decision No.280-TTg of September 28, 1994 of the Prime Minister promulgating the Export Tariff and Import Tariff;

After consulting the ministries and branches, the Ministry of Finance hereby guides the application of import tax regime to details and spare parts imported together with SKD, CKD or IKD component sets in service of production and/or assembly as follows:

1. The details and spare parts imported as reserve for replacement of damaged parts in the course of production and/or assembly of finished products from imported SKD, CKD or IKD component sets (if such spare parts and details are currently subject to tax rates higher than those applicable to imported component sets) shall be taxed at the rates applicable to such component sets at the time they are imported.

2. To be entitled to the tax policy stipulated in Point 1 of this Circular, enterprises shall, upon filling the customs procedures, have to produce the following dossiers:

- An official dispatch requesting that import tax on reserve details and spare parts shall be calculated at the tax rates applicable to their SKD, CKD or IKD component sets;

- The table of damage and waste norms of details and spare parts imported as reserves (additionally imported) besides SKD, CKD or IKD component sets already inspected and verified by the Ministry of Industry;

- The Ministry of Trade's official dispatch permitting the import of reserve details and spare parts in service of production and/or assembly of finished products from their SKD, CKD or IKD component sets;

- The written explanation on the manufacture and/or assembly plans of the year.

Basing themselves on the above-said dossiers, the provincial/municipal customs departments shall check the quantity of reserve details and/or spare parts imported together with SKD, CKD or IKD component sets to calculate import tax according to provisions in Point 1 of this Circular.

* The process of drawing up plans:

Each year, basing itself on the registration of enterprises' annual manufacture and/or assembly plans, the damage and waste norms of imported reserve details and spare parts verified by the Ministry of Industry and the quantity of imported reserve details and spare parts transferred from the preceding year, the customs authority shall approve the enterprises' plans for import of details and spare parts.

The unused details and spare parts of a year shall be deducted into the following year's import quota of reserve details and spare parts. Enterprises are not allowed to sell their unused reserve details and spare parts. In cases where enterprises sell their unused details and spare parts, they shall have to retroactively pay import tax thereon at the tax rates prescribed for such details and spare parts, and shall also be sanctioned under the current regulations.

* Regime of final settlement:

Enterprises shall have to make the annual final settlement report on the use of imported reserve details and spare parts to the customs authority, concretely: the imported quantity, the quantity already used for manufacture and/or assembly, the quantity sold or not used for the production and/or assembly of finished products.

The customs authority shall approve the final settlement on the basis of the enterprises' reports thereon. In cases where it deems necessary, the customs authority shall assume the prime responsibility and coordinate with the local tax departments in inspecting and making final settlement for the enterprises. All those who fail to abide by the regulations, if detected upon inspection, shall have to retroactively pay import tax at the tax rate prescribed for each spare part or detail specified in the Import Tariff and pay fines for tax evasion under the current regulations.

At the end of April 1st of the following year, if an enterprise still fails to make the final settlement report (without any plausible reasons), the customs authority shall not allow such enterprise to enjoy the tax rates applicable to SKD, CKD or IKD component sets as stipulated in this Circular.

4. This Circular takes effect after its signing. The previous stipulations which are contrary to this Circular are now annulled. Any problems arising in the course of implementation shall be promptly reported by agencies and units to the Ministry of Finance for consideration, solution and appropriate additional guidance.