Circular 128/2016/TT-BTC Regulating export tax exemption and reduction for environmentally friendly products; products from waste recycling and treatment activities specified in Decree 19/2015/ND-CP guiding the Law on Environmental Protection promulgated by the Minister of Finance

CIRCULAR

ON EXPORT DUTY EXEMPTION AND REDUCTION FOR ENVIRONMENT-FRIENDLY PRODUCTS; AND PRODUCTS FROM WASTE RECYCLING AND TREATMENT ACTIVITIES PRESCRIBED IN THE GOVERNMENT’S DECREE NO. 19/2015/ND-CP OF FEBRUARY 14, 2015, DETAILING A NUMBER OF ARTICLES OF THE LAW ON ENVIRONMENTAL PROTECTION

Pursuant to June 14, 2005 Law No. 45/2005/QH11 on Import Duty and Export Duty;

Pursuant to April 6, 2016 Law No. 107/2016/QH13 on Import Duty and Export Duty;

Pursuant to the Government’s Decree No. 87/2010/ND-CP of August 13, 2010, detailing a number of articles of the Law on Import Duty and Export Duty;

Pursuant to the Government’s Decree No. 19/2015/ND-CP of February 14, 2015, detailing a number of articles of the Law on Environmental Protection;

Pursuant to the Government’s Decree No. 215/2013/ND-CP of December 23, 2013, defining the functions, tasks, powers and organizational structure of the Ministry of Finance;

In furtherance of the Prime Minister’s direction in the Government Office’s Official Letter No. 2030/VPCP-KTTH of March 28, 2016.

At the proposal of the Director of the Tax Policy Department,

The Minister of Finance promulgates the Circular on export duty exemption and reduction for environment-friendly products; and products from waste recycling and treatment activities prescribed in the Government’s Decree No. 19/2015/ND-CP of February 14, 2015, detailing a number of articles of the Law on Environmental Protection (below referred to as Decree No. 19/2015/ND-CP).

Article 1. Scope of regulation

1. This Circular prescribes the export duty exemption and reduction for environment-friendly products; and products from waste recycling and treatment activities prescribed in Item 12 of the list of environmental protection activities entitled to incentives and supports provided in Appendix III to Decree No. 19/2015/ND-CP.

2. From the effective date of Law No. 107/2016/QH13 on Import Duty and Export Duty of April 6, 2016, environment-friendly products and products from waste recycling and treatment activities shall be entitled to export duty exemption as prescribed by this Law and guiding documents.

Article 2. Subjects of application

Organizations and individuals producing, trading in and exporting environment-friendly products and products from waste recycling and treatment activities prescribed in Item 12 of the list of environmental protection activities entitled to incentives and supports provided in Appendix III to Decree No. 19/2015/ND-CP.

Article 3. Export duty exemption and reduction

1. To exempt from export duty environment-friendly products listed in the Export Tariff, which are granted Vietnamese green label certificates as guided by the Ministry of Natural Resources and Environment, and to give 50% export duty reduction for products from waste recycling and treatment activities listed in the Export Tariff as certified by the state competent agencies under the Ministry of Natural Resources and Environment’s guidance in Clause 2, Article 44 of Decree No. 19/2015/ND-CP from the effective date of this Decree (if the reduced export duty rate applicable to the commodity item is lower than the floor rate of the export duty bracket prescribed by the National Assembly Standing Committee for such item, the floor export duty rate shall be applied).

2. In case of export of environment-friendly products and products from waste recycling and treatment activities specified in Clause 1 of this Article which are not listed in the Export Tariff, exporters shall comply with Clause 2, Article 2 of the Ministry of Finance’s Circular No. 182/2015/TT-BTC of November 16, 2015, promulgating the Export Tariff and the Preferential Import Tariff according to the list of dutiable items.

3. In case a taxpayer has already paid export duty for environment- friendly products and products from waste recycling and treatment specified in Clause 1 of this Article, and the paid duty amount is higher than the duty amount eligible for exemption or reduction, the overpaid amount shall be settled under the Ministry of Finance’s Circular No. 38/2015/TT-BTC of March 25, 2015, on customs procedures, customs inspection and supervision; import duty and export duty and tax administration of imports and exports (below referred to as Circular No. 38/2015/TT-BTC).

Article 4. Customs dossiers for exported goods entitled to export duty exemption and reduction

1. Customs dossiers for exported goods entitled to export duty exemption and reduction must comply with Article 16 of Circular No. 38/2015/TT-BTC, enclosed with copies of Vietnamese green label certificates as guided by the Ministry of Natural Resources and Environment or copies of certificates of products from waste recycling and treatment activities issued by a state competent agency.

2. Other contents related to customs procedures; customs inspection and supervision; export duty and tax administration of exported goods which are not mentioned in this Circular comply with Circular No. 38/2015/TT-BTC, Law No. 107/2016/QH13 on Import Duty and Export Duty, and the legal documents guiding Law No. 107/2016/QH13.

Article 5. Effect

1. This Circular takes effect on September 23, 2016.

2. Any problem arising in the course of implementation should be promptly reported to the Ministry of Finance for appropriate amendment and supplementation.-

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