Duty exemption for imported components to manufacture ventilators for Covid-19 prevention

Accordingly, the General Department of Customs requires the customs departments to carry out procedures to exempt import duty for components used for manufacturing ventilators for Covid-19 prevention and control stated on the list issued together with Decision 2138 / QD-BTC of the Minister of Finance.

In particular, dossiers and procedures for duty exemption for goods on the list issued together with Decision 2138 / QD-BTC comply with Article 31 of Decree 134/2016 / ND-CP.

If the importers do not use imported components to manufacture ventilators or sell them to other enterprises, they must make new customs declarations and pay sufficient duties as prescribed in Clause 12, Article 1 of Decree No. 59/2013 / N-CP.

If the importer does not make a new declaration and pays sufficient duties before changing the purpose of use, it will be sanctioned.

At the target of the code of exemption / reduction / not subject to import duty on the import declaration, the customs authority instructs the enterprise to declare under code XN502 – tax exemption for goods for pandemic prevention.

For import declarations from November 11, 2020 to December 25, 2020, enterprises declared under codes that are inconsistent with the instructions in this official dispatch, the customs agency will check and review dossiers to ensure import duty exemption specified in Decision 2138 / QD-BTC.

Regarding the reporting regime, the importer of duty-free goods according to the list issued together with Decision 2138 / QD-BTC must report to the customs agency where the import procedures are made, on the use of duty-free goods in accordance with the form No. 01 / BCMT.

The reporting time limit is 60 days at the latest from the day on which a written announcement of the end of the pandemic is used by the competent authority. If it is over the above time limit, the importer does not report the use of the imported goods, the customs agency will conduct post-customs clearance audit and impose penalties according to regulations.

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The General Department of Customs also requires provincial and municipal customs departments to report to the General Department of Customs on the quantity of duty-free import goods, the exempt import duty amount according to form No. 02 / BCMT on the 10th of each month, and report the quantity of duty-free import goods in stock according to form No. 03 / BCMT no later than 65 days after the competent authority announces the end of the pandemic, (the Import-Export Tax Department, Post-Customs Clearance Audit Department).

At the same time, the Post-Customs Clearance Audit Department is required to review items on the list of duty-free import goods for pandemic prevention and control, issued together with Decision 2138 / QD-BTC and based on reports on the use of duty-free import goods according to form No. 01 / BCMT and reports on exempt import duty amount under form No. 02 / BCMT to conduct post-customs clearance audit or direct post-customs clearance audit branches under provincial and municipal customs departments to conduct audits for cases guided in this official letter or other cases with suspicious signs or imported goods volumes seeing an extraordinary increase.

Following the Government's Resolution 169 / NQ-CP dated November 11, 2020, on December 18, 2020, the Minister of Finance signed Decision 2138 / QD-BTC issuing a list of imported components for production of ventilators subject to import duty exemption for Covid-19 pandemic prevention.

Accordingly, Article 2 of Decision 2138 / QD-BTC stated: “The Director General of the General Department of Customs shall direct and guide customs units to uniformly implement the duty exemption for imported goods for pandemic prevention. The customs office shall carry out import duty exemption procedures in customs clearance for goods on the list issued together with this decision; and work with relevant agencies to conduct inspections and ensure imports in accordance with the purpose of import duty exemption. If imported goods are used for improper purpose of import duty exemption, they shall be handled in accordance with the law on penalties for administrative violations and the law on tax administration.”

According to Decision 2138 / QD-BTC, components imported for the production of ventilators for Covid-19 pandemic prevention subject to duty exemption include nine items.

Specifically: Radiator fan of a capacity not exceeding 125kW, with protective mesh, used for ventilator with HS code 8414.59.41; Electronic valve with multi-vent of metal, used for ventilator with HS code 8481.80.79; DC electric motors with an output from 37.5W and not exceeding 750W, used for ventilator with HS code 8501.31.40; Display, which is a LCD Parameter Display Module, of a multi-colour type, for ventilator with HS code 8528.59.10; Electric bell, which is warning bell, used for ventilator with HS code 8531.80.10; Thermal fuse with a current not exceeding 16 amps, used for ventilator with HS code 8536.10.12; Plastic insulated electric cables fitted with connectors, with core diameter not exceeding 5mm, used for ventilators with HS code 8544.42.94 and data transfer cables with USB, used for ventilators with HS code 8544.42. 99.