CIRCULAR

GUIDING THE IMPLEMENTATION OF THE GUARANTEE OF THE PAYMENT OF THE IMPORT TAX ON CONSUMER GOODS BY CREDIT INSTITUTIONS

With the view to implementing paragraph 3 d, Article 4 of the Decree No. 94/1998/ND-CP dated 17 November, 1998 of the Government on the guarantee of the payment of the import tax on consumer good and contributing to the implementation of the new tax Laws of the State, The State Bank of Vietnam provides guidance on the guarantee of the payment of the import tax on consumer goods by credit institutions as follows:

1. Interpretation

a. Guarantee of the import tax on consumer good by credit institutions is a commitment issued by credit institutions to the tax collection unit (the guarantee accepting party) on the obligation to pay tax in lieu of the customer being the importer (the guaranteed party) in case of the customer failing to fulfil the obligation to pay tax to the tax collection unit within 30 days since the date of receipt of the official notice by the tax collection unit on the tax to be paid.

b. The guaranteeing party is credit institutions which have been established and operating in accordance with the Law on credit institutions, including:

State-owned commercial banks, development banks, investment banks, policy banks, joint-stock commercial banks, joint-venture banks, branches of foreign banks in Vietnam, finance companies (hereinafter referred to as credit institutions).

Credit institutions shall be entitled to guarantee on the basis of their reputation and financial capability.

...

...

...

d. The guarantee receiving party is the customs authority or other tax collecting agencies in accordance with applicable laws, being responsible for the collection of tax (hereinafter referred to as tax collection unit).

2. Imported goods the tax payment of which is guaranteed are those consumer goods permitted to import under the List of consumer goods which is issued in conjunction with the Decision No. 1655/1998/QD-BTM dated 25 December, 1998 of the Ministry of Trade.

3. Conditions for customers to be guaranteed by credit institutions for the payment of the import tax on consumer goods shall be as follows:

a. Having the civil legal capability and the civil act capability, being established and operating in accordance with the current laws of Vietnam;

b. The imported goods shall be those covered by the scope of business and registered in the business registration certificate and included in the List of consumer goods mentioned in paragraph 2 of this circular. In case of an conditional import item, there needs to be a permit issued by the Ministry of Trade or the Line ministry in charge of the sector in accordance with the current provision on the management of the import, export.

c. Availability of an application for the guarantee of the payment of the import tax on consumer goods, which states clearly the reason of the application.

d. Availability of a business plan for the imported goods which proves profitable.

dd. The business is profitable, no tax arrears to the Budget and overdue debts to credit institutions.

e. Availability of assets to secure the guarantee.

...

...

...

4. The acceptance or refusal to issue a guarantee of the payment of the import tax shall be decided upon by credit institutions on their determination of the effectiveness of the guarantee, the financial status and the reputation of the guaranteed party. No organization, individual shall have the right to interfere in the guarantee of payment of the import tax by credit institutions.

5. The value of guarantees of a credit institution issued to a single customer shall not be more than 15% of the own capital of the credit institution and the total value of guarantees by a credit institution of the payment of the import tax shall not exceed its own capital. In case of exceeding this limit, an approval of the Governor of the State Bank shall be required.

6. The amount of import tax on consumer goods guaranteed by credit institutions for customers shall be the total or a part of the tax payment which the guaranteed party have to pay to the tax collection unit, at the level provided for in the circular No. 172/1998/TT/BTC dated 22 December 1998 of the ministry of finance on the guidance of the implementation of the Law on the import, export tax.

7. Guarantee fee: The guaranteed party shall have to pay to the guaranteeing party a guarantee fee. The fee shall be agreed upon by both party but not exceed 2% per year calculated on the tax payment being guaranteed.

8. The guaranteed and guaranteeing party shall enter into an guarantee contract which provides clearly for the amount to be guaranteed, the maturity of the guarantee, the guarantee fee, forms of security for the guarantee and the responsibility of each party. The notarization of the guarantee contract shall be subject to the agreement by the parties.

9. The guarantee commitment of the credit institutions for the guarantee receiving party shall be made in writing.

The authorization of signature of the guarantee of the payment of the import tax on consumer goods which is issued by the credit institution shall be guided by the credit institution for its system in accordance with provisions of applicable laws.

10. The security for the guarantee by the credit institutions shall be applied on the basis of current provisions on the forms of security for loans.

11. Within 30 days since the date of receiving the notice of the tax collection unit, the guaranteed party shall be responsible to pay tax to the tax collection unit in accordance with current provisions. In case the guaranteed party does not sufficiently pay the tax, the guaranteeing party shall, upon receiving the notice requesting the payment for its customer, have to pay for the guaranteed party, and the guaranteed party shall automatically become liable to the guaranteeing party for the amount which has been paid by the guaranteeing party and be subject to a penalty interest rate.

...

...

...

12. Accounting and Information

Directors General (Directors) of the credit institutions shall guide the accounting for the guarantee of the payment of the import tax on consumer goods in his/her own system in accordance with the current accounting regime.

The guaranteed party shall be responsible for the periodical report (at the end of each month, quarter, year) to the guaranteeing party on the performance of its production, business, the financial status and the performance of sale. In addition to the periodical report, the guaranteed party shall be responsible to make report on its general performance upon the request by the guaranteeing party during the guarantee term.

13. Examination and control regime

The guaranteed party shall be subject to the examination, control of the guaranteeing party like in the case of the examination, control of a loan, including the control before, after the issuance of the guaranty and during the guaranty period.

Credit institutions guaranteeing the payment of the import tax on consumer goods shall report and be subject to the supervision, inspection by the State Bank in accordance with current provisions.

14. Implementing provision

This Circular shall be effective after 15 days from the date of signing. On the basis of provisions of this circular, Chairmen of the Board of Directors, General Directors (Directors) of credit institutions provides guidance and organization on the implementation. Any obstacle arising during the implementation, credit institutions shall timely report to the State Bank for the supplement and amendment.

...

...

...

FOR THE GOVERNOR OF THE STATE BANK
DEPUTY GOVERNOR




Nguyen Van Giau

Thông tư 02/1999/TT-NHNN14 hướng dẫn bảo lãnh nộp thuế nhập khẩu đối với hàng tiêu dùng của các tổ chức tín dụng do Ngân hàng Nhà nước ban hành