Set import tax rate of steel billet at 9%

The Ministry of Finance has just issued an official dispatch guiding the Customs of provinces and cities and the Post-clearance Inspection Department to handle import tax on steel products.

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To unify the handling of classification and import tax calculation for steel billets, the Ministry of Finance has just issued an official dispatch guiding the Customs of provinces and cities and the Post-clearance Inspection Department to handle import tax for this item.

The Ministry of Finance guides that for shipments that have been cleared before the issuance of Official Dispatch 13734/TCHQ-TXNK dated November 12, 2014, declared under code 7207.19.00 and paid tax at the import tax rate of 5%, the determination shall be made to collect full tax under code 7201.11.00, with a preferential import tax rate of 9%.

For shipments registered with the Customs authority after the date of Official Dispatch 13734, if the imported goods have analysis and classification results belonging to a HS code, the import tax calculation must be based on the tax rate prescribed for that HS code in the Import Tariff applicable at the time of registration of the import goods declaration.

Specifically, customs declarations registered with the Customs authority after November 12, 2014, enterprises have declared under code 7207.19.00 and paid import tax at the preferential import tax rate of 5%, with analysis results classified as steel billets under code 7201.11.00, preferential import tax rate of 9%... then tax determination will be carried out to collect full tax at the preferential import tax rate of 9%.

Customs declarations registered with the Customs authority after November 12, 2014, the enterprise declared under code 7207.19.00 and paid import tax at the preferential import tax rate of 5%, with analysis results classified as alloy steel billets under code 7224.90.00, preferential import tax rate of 0%... In this case, the units must re-check all related records, accounting books and documents, related transactions, and the use of imported goods.

In case the goods are indeed alloy steel billets, the import tax rate shall be adjusted in accordance with the provisions of the law on export tax and import tax and the excess tax paid shall be offset in accordance with the provisions of Clause 13, Article 1 of the Law on Tax Administration No. 21/2012/QH13.

Because the import of alloy steel billets does not meet the conditions, standards and regulations as prescribed in Joint Circular No. 44/2013/TTLT-BTC-BKHCN, accordingly, the customs of provinces and cities shall impose administrative sanctions for this violation as prescribed in Point d, Clause 5, Article 14, Decree 127/2013/ND-CP.

According to the Government Electronic Information Portal