Export limestone shipments originating from mines licensed by provincial People’s Committee inconsistent with regulations

Customs strengthen control exported minerals

Exported limestone is inspected by Customs.

Limestone used for the manufacturingof cement under heading 25.21

The GDVC said that according to some firms, currently some exporters declared the shipments as the building stone originating from limestone with HS code 2517.49.00.30, and an export tax rate of 15%. However, the stone products of these enterprises are limestone with CaCO3 content of more than 85%, so per provisions in Point g Article 64 of the Mineral Law and the National Standard TCVN6072:2013, these products must be classified into HS code 2521.00.00 and export tax rate of 17%.

To prevent tax loss and ensure equality in business and strict enforcement of the Mineral Law, enterprises have proposed the GDVC instruct the classification for this item and direct, inspect and handle firmsthat have falsely declared code of goods.

After considering and basing on the provisions of the Mineral Law andcurrent regulations on goods classification, on December 22, the GDVC issued Official letter 8019/TCHQ-TXNK on the classification of stone products.

Per the law, the limestone meeting the National Standard TCVN 6072:2013 on limestone for production of Portland cement clinkeris under heading 25.21.

The GDVC requests provincial and municipal customs departments review export declarations and dossiers for products declared as limestone, calcareous stone and building stone that meet National Standard TCVN 6072:2013 but have not been classified into Heading 25.21, to classify, apply tax rate and collect taxes and handle in accordance with regulations

At the same time, the GDVC has checked the export dossiers of enterprises provided by QuangNinh Customs Department and realised that the product declared as building stone originating from limestone and not declared CaCO3 and MgCO3 contents, but the trade name of the export product is shown as limestone on the invoice and sale contract.

The GDVC also checked other documents of the enterprises, the trade name of the export product stated as limestone and HS code 2521 on C/O issued by Vietnam.

Resulting from the above basis, the GDVC’s instruction for the limestone meeting the National Standard TCVN 6072:2013 on limestone for production of Portland cement clinker and being classified into the heading 25.21 per Official letter 8019/TCHQ-TXNK dated December 22, is consistent with regulations.

Ministry of Natural Resources and Environment in charge of granting the exploration licence

According to the GDVC, Clause 1, Article 82 of the Mineral Law provides the competency for granting the mineral exploration licence and the mineral mining licence. The Ministry of Natural Resources and Environment is in charge of granting the Mineral exploration licence and the Mineral mining licence for minerals other than those specified in Clause 2, Article 82 of the Mineral Law.

Also, Point g, Clause 1, Article 64 of the Law on Mineral on the mining of minerals for usingas normal building materials stipulates that the limestone meeting TCVN 6072:2013 on limestone for production of Portland cement clinker not subject to the minerals use as normal building materials and the Ministry of Natural Resources and Environment is in charge of granting the mining licence for limestone use as material for the production of Portland cement.

Clause 4, Article 2 of Circular 05/2018/TT-BXD dated June 29, 2018 of the Ministry of Construction guiding export of minerals for use as construction materials provides that the limestone meeting the national standard TCVN 6072: 2013 on limestone for the production of Portland cement clinker willhave a legal origin according to the Law on Mineral (is mined from the mine licensed by the Ministry of Natural Resources and Environment).

Customs responds and guides enterprises

After the inspection, the GDVC realised the exported shipments being declared as building stone with HS code 2517 49 00. These shipments are identified as mineral use as normal building material as prescribed in Article 64 of the Mineral Law and issued with the mineral exploration licence and the mineral mining licence per Article 82 of the Mineral Law.

Immediately after the request of the GDVC, the Quang Ninh Customs Department issued a report. According to the report, the shipments declared as export limestone are being stored at the border gate and originated from mines licensed by the provincial People's Committee.

According to the GDVC’s instruction in Official Letter 8019/TCHQ-TXNK on the classification of stone products, the limestone stated in the export declarations meeting the National Standard TCVN 6072: 2013 on limestone use for production of Portland cement clinker, areunder Heading 25.21 and must be exploited from mines licensed by the Ministry of Natural Resources and Environment in accordance with Article 82 of the Mineral Law.

Therefore, the shipments declared as export limestone being stored at the border gate and originating from mines licensed by the provincial People's Committee are not in compliance with the provisions of Article 82 of the Mineral Law, so they have not been considered for customs clearance, the GDVC said.

In addition, on December 31, the GDVC issued Official Letter 8206/TCHQ-TXNK responding to Vietnamese enterprises manufacturing and exporting building stone materials and an official letter requesting Quang Ninh Customs Department direct border gate customs branches to base on customs dossiers of export shipments and compare to provisions of the Customs law and specialised management regulations to handle customs procedures for limestone export.