MINISTRY Of fiNANCE     THE SOCIALIST REPUBLIC Of VIETNAM
  No 668 TC/TCT           Independence-freedom-Happiness
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                                 Hanoi, 24th March, 1994.

ON HANDLING IMPORT TAX IN ACCORDANCE WITH THE OLD TAX RATES

In implementation of the instructions by the Prime Minister as informed by the office of the Government in the document number 1009/ KTTH of 3rd March 1994 regarding the handling by application of the old tax rates, the Ministry of finance here by specifi es concrete guidance on the application of the list of import tax rates published in attachment to Decision number 15/ TTg of 15 January 1994 by the Prime Minister with regard to cases that had either concluded the contracts with the foreign party and ope ned letter of credit (L/C) or fulfilled procedures of payment through the Bank in other similar forms prior to the data of the publication of the Prime Minister's decision (15 January 1994) as follows:

With regard to those lots of import goods of which the declaration forms of import were registered from 15 february 1994 (the date of implementation of the new list of tax rates) afterward that are subject to the tax rates of the newly - published list of import tax rates in the decision number 15/ TTG which are higher than the old tax rates, the import tax rates provided for in the old list of tax rates shall be applied, should be following conditions be met:

1) Contracts of purchasing specific goods (or annex to the principled contracts) were lawfully concluded with the foreign party and registered with the Ministry of Trade (the Bureau for issuing export and import licenses) prior to the date of publication of the new list of tax rates in the Decision number 15/ TTG of 15 January 1994. In the contracts of purchase and sales, the particular such as name of goods, quantity and types of each goods must be specified in details.

2) Letter of Credit (L/C) was opened for direct payment for the goods lot with the sum of money equaling the value of the purchased goods lot or the procedures of payment through the banks in other forms were fulfilled (with the certification by the banks ) to pay for the goods lot prior to the date of publication of the new list of tax rates (15 January 1994). Concerning the cases of payment in other forms, the Ministry of finance (the General Department of Taxation) and the General Department of Customs shall handle each specific case.

3) Documents of purchase and sales with foreign country such as Invoice, Bill of Lading must have completed before 15 february 1994 (the date of implementation of the new list of tax rates).

On the basis of the above - specified records / files, the Customs Authorities of provinces, cities shall carry out concrete examinations; if all above mentioned conditions are met the import tax shall be calculated and collected in accordance with the ta x rates of the old list of tax rates. The application of the import tax rates in conformity with the old list of tax rates shall only be applied to the import goods lots that fully meet the specified conditions and whose goods really arrive at the Vietnam ese ports before 31 March 1994.

With respect to the lots of import goods that have sufficient conditions to enjoy the tax rates of the above- specified old list of tax rates but whose goods arrive at the Vietnamese ports after 31 March 1994 the tax rates of the old list of tax rates sha ll not be applied to but the tax rates of the new list of tax rates published in attachment to Decision number 15/TTG of 15 January 1994 by the Prime Minister.

The General Department of Customs is kindly requested to instruct and give guidance to the provincial and municipal customs authorities to organize the strict and unified implementation so as to avoiding tax evasion.

for the Ministry of finance
Vice Minister

PHAN VAN DINH (Signed)