VCN - Imported machinery, equipment, raw materials, supplies, components and semi-finished products which cannot be domesticallymanufactured for shipbuilding are exempt from tax according to the provisions at point b, Clause 16, Article 16 of the Law on import export duties No. 107/2016/QH13 dated 6 April 2016 and Decree No. 134/2016/ND-CP dated 1 September 2016 of the Government “detailing some articles and measures to implement the Law on import and export duties”
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Provisions on the management of duty-free goods as raw materials, supplies and semi-finished products for shipbuilding should be specific and suitable with the actual conditions.
To be exempted from tax, the enterprise must make and sendaList of duty-free goods which are planned to import to the Customs agency where the enterprise implements their projects or to the Customs agency where the enterprise is headquartered in accordance with Article 30 and 31 of Decree 134/2016/ND-CP.
Pursuant to point c, Clause 2, Article 30 of Decree No. 134/2016/ND-CP: "The duty-free list shall be compiled once for whole projects, production facilities and activities using duty-free goods, or compiled for each stage, each work item, compound or technological line in accordance with the reality and project documents and production facilities or activities using duty-free goods, hereinafter referred to the project”.
Applying provisions in point c, Clause 2 of Article 30 of Decree No. 134/2016/ND-CP for goods as raw materials, supplies, semi-finished products serving shipbuilding will not suitable for annual routine shipbuilding of enterprises under actual needs, and only suitable for shipbuilding and ship repair contractsthat have no basis to be divided into projects or stages, work items of project or whole project”.
Whereas an enterprise formulates a duty-free list and informs it to the Customs agency according to each ship (if it is assumed that the building and repair of each ship is considered as a project), there will be shortcomings arising when that enterprise imports raw materials, supplies and semi-finished products for building many other ships at the same time or redundant materials after finishing the ship building or repair contracts are transferred to build other ships. How it will be managed?
This case cannot be considered as change in purpose of use of tax exemption to use declarations to change purpose of use due to the enterprise has not changed the purpose of tax exemption, they still use in right purpose of shipbuilding, so any policies for these goods in this case are not different from the initial purpose of tax exemption (if registering Declarations to change into new purpose of use, the tax policies and specialized policies on goods, exchange rate and channel classification must be applied again at this time).
For example: if goods were used, they must be subject to the policies for used goods, if goods were not previously banned, but they are banned now, they will not be imported, thus enterprises will waste a lot of time and expenses and meet other shortcomings and unreasonable matters if they implement the change in purpose of use in this case). And if the management of duty-free goods according to fiscal year of enterprises, when the enterprises compile a duty-free List for whole year, it will be insufficient because the time is too long and enterprises also cannot predict the imported goods because the imports will be implemented under the partner’s needs, which leads to too many amendments, supplementations and corrections, causing difficulties for the Customs agencies in management.
Should there be a clearer provision for this case for enterprise and Customs agencies to implement more easilyand adapt to the actual conditions of duty-free management for raw materials, supplies and semi-finished products for shipbuilding. For the above case, the management of raw materials, supplies and semi-finished products according to the fiscal year should be allowed.
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However, the notification period of duty-free list shall be selected by the enterprises and negotiated in advance with Customs agencies in the form of quarter,half-year and year in line with actual production demand, also the enterprises shall be responsible for notifying the use of duty-free goods in the fiscal year as prescribed at point đ, Clause 7, Article 30 of Decree No. 134/2016 / ND-CP.Or the competent authority can study and propose another management solution that is simpler, more rational and easier to implement in management of duty-free imported goods for shipbuilding in particular as well as broadly applicable to other duty-free goods in general.
By Ly Van Dong/ Huyen Trang