Customs strengthen control exported minerals

On September 29, Prime Minister Nguyen Xuan Phuc issued Directive No.38/CT-TTg on continuing to strengthen State management for exploration, exploitation, processing, using and exporting minerals (replacing Directive No.03/CT-TTg dated March 30,2015).

In Section 5 of Directive No. 38/CT-TTg, the PM stated that: “The Ministry of Finance reviewed overall financial policies on minerals (natural resource consumption tax, export duty, fees and charges and money for granting mineral mining rights), especially for small and medium-sized enterprises, propose adjustments in financial policies in line with reality, promote development, and encourage the use of alternative materials replacing riverbed sand and gravel; intensify inspection, examination and handling of violations in the compliance with the regime of invoices and accounting documents for trading riverbed sand and gravel, handling the legalisation of documents for the use of riverbed sand and gravel in works, projects; coordinating with state management authorities in charge of minerals to strictly control revenue collected from mineral through the actual exploited output of mineral exploiting organisations and individuals. Directing Customs forces to strengthen the channel classification, inspection and strict control of the import and export activities of minerals in accordance with the regulations.”

Via the review, the General Department of Vietnam Customs also received recommendations from a number of units related to classification, application of codes and the application of tax rates for item of construction stone and exported limestone.

Customs officials of Cua Lo port Customs Branch inspected exported stone. Photo: H.Nụ

To closely inspect and supervise this item in accordance with the Prime Minister's directive, to limit the situation where enterprises take advantage of commodity policies and smooth operation of customs procedures to committe tax fraud, the General Department of Vietnam Customs sent a document to request provincial customs departments implement procedures based on Point g, Clause 1, Article 64 of the Law on Minerals No. 60/2010/QH12 and provide business guidance when implementing customs procedures.

Point g Clause 1 Article 64 of the Law on Minerals No. 60/2010/QH12 states: “1. Minerals used as common building materials include: g) Limestone, marlstone, marble (except limestone, white limestone and white marble) that are not qualified for use as raw materials for Portland cement production, Vietnamese technical regulations and standards or are not qualified as raw materials for production of paving stone or fine art stone in accordance with Vietnamese technical standards and regulations.”

Customs departments of the provinces and cities, when receiving the enterprise's proceduresneed to compare with the National Standard TCVN 6072: 2013 on limestone use for Portland cement production clinker: “Quality criteria of limestone used to Portland cement clinker production: CaCO3 content> 85% and MgCO3 content <7%.”

The General Department of Vietnam Customs emphasised that pursuant to Decree No. 24a/2016/ND-CP dated April 5, 2016 of the Government on the management of construction materials; Circular 05/2018/TT-BXD dated June 29, 2018 of the Ministry of Construction guiding the export of minerals as building materials; Circular 05/2012/TT-BXD dated October 10, 2019 of the Ministry of Construction amending and supplementing the contents of the Circular 05/2018/TT-BXD dated June 29, 2018 of the Ministry of Construction guiding the export of minerals production as construction materials; Circular 65/2017/TT-BTC dated June 27, 2017 of the Ministry of Finance promulgating the List of exported and imported goods of Vietnam; Circular 09/2014/TT-BTC dated 15, 2019 of the Ministry of Finance amending and supplementing a number of contents in the appendices of Circular 65/2017/TT-BTC;

Clause 3, Article 6 of Circular 14/2015/TT-BTC dated January 30, 2015 of the Ministry of Finance guiding classification of goods, analysis for goods classification, analysis for quality inspection and checking food safety reads: “In case of differing opinions on the classification of goods and the application of tax rates when applying the List of exported and imported goods of Vietnam and specialised standards, the Ministry of Finance agreed that the ministries in charge of related specialised management would handle.”

Accordingly, the General Department of Vietnam Customs also refers to the Detail Expanatory Note of HS Chapter 25, for export items such as limestone, calcium-containing stone (except: limestone, white limestone and white marble), meeting national standard TCVN 6072: 20 which belongs to heading 25.21.

Therefore, the General Department of Vietnam Customs requested provincial customs departments check the export declarations and export dossiers for declared items as limestone, calcium containing stone, construction stone, if they meet the National Standard TCVN 6072: 2013 but have not been classified into group 25.21 yet, then it should classify and apply a tax rate in accordance with regulations, fully collect tax and sanction.