The Ministry of Planning and Investment responds questions relating to the implementation of Circular 05

VCN – Responding to the problems and requests for guidance from Customs authority during the implementation of the provisions of Circular 05/2021/TT-BKHDT dated August 17, 2021, of the Ministry of Planning and Investment promulgating the List of domestically available machinery, equipment, spare parts, special-use vehicles, raw materials, supplies and semi-finished products (referred to as Circular 05), the Ministry of Planning and Investment said the unit is reviewing and studying to adjust the Circular amending and supplementing Circular No. 05.
Customs officers of Quang Nam Customs Department check imported goods. Photo: T.H
Customs officers of Quang Nam Customs Department check imported goods. Photo: T.H

Review for correction

Regarding the issue that the Customs authorities still face many problems related to the identification of domestically produced goods as a basis for considering import duty exemption, the General Department of Vietnam Customs (Ministry of Finance) issued an official letter 9045/BTC-TCHQ requesting the Ministry of Planning and Investment to provide specific guidance and answers (Customs News mentioned at the publication No. 84 issued on October 21, 2022-PV).

After that, the Ministry of Planning and Investment sent an official dispatch to the Ministry of Finance to respond to this issue. The Ministry of Planning and Investment said that on October 7, 2022, the unit issued an official letter 7170/BKHDT-KTCN on requesting to provide commodity information to update the list of domestically available products.

According to Official Letter 7170/BKHĐT-KTCN, to continue to solve arising problems, and review newly manufactured goods appearing on the market; the Ministry of Planning and Investment has updated the list of domestically available machinery, equipment, spare parts, special-use vehicles, raw materials, supplies and semi-finished products. However, the Ministry emphasized that, for the goods in the last updates of the List (in 2018 and 2021), no agency or unit has registered to produce goods. So the Ministry of Planning and Investment will review and consider removing from the List of domestically available products.

Regarding the problems related to implementing several provisions of Circular 05, the Ministry of Planning and Investment said that they will conduct a review and study to adjust the Circular, amending and supplementing Circular 05. Furthermore, they expected the General Department of Vietnam Customs and Ministry of Finance to actively cooperate in the drafting process.

Regarding the problems related to the application of several specific products such as products, components and auto parts, the Ministry of Planning and Investment said that the problems of Circular 01/2018/TT -BTC have been amended and supplemented by the unit in Circular 05 and many documents to solve problems have been sent to Customs authority and Ministry of Finance.

The Ministry of Planning and Investment stressed that in case there still arises, the unit would bring the problem to discuss in the meeting of developing the Circular amending and supplementing Circular 05. It is expected that representatives of the Ministry of Finance, the Vietnam Automobile Manufacturers Association and domestic automobile manufacturing and assembling enterprises will participate in the meeting.

For goods with clear names and technical descriptions in Circular 05, the Ministry of Planning and Investment requested Customs authority to look up goods names and technical descriptions in the Circular to comply with regulations. As for items that are equipment directly serving oil and gas activities, the Ministry of Planning and Investment proposed to look up Appendix 2 and Appendix 6 of Circular 05 to determine.

Giving instructions for some regulations

Based on the Ministry of Planning and Investment responses, on November 14, 2022, the General Department of Vietnam Customs sent an official dispatch to a number of local Customs units to direct to apply the provisions of Article 3 of Circular 05 for some specific cases.

Accordingly, for items that are equipment directly serving oil and gas activities, the General Department of Vietnam Customs requested the following Customs Departments: Ba Ria- Vung Tau, Ha Nam Ninh, Quang Nam to look up Appendix 2 (List of domestically available machinery, equipment and technological lines) and Appendix 6 (List of supplies necessary for domestic oil and gas activities that can be produced) of Circular 05 for determination.

For goods that are necessary supplies for domestic oil and gas activities that can be produced, in Appendix 6 of Circular 05 stipulated that they are "necessary supplies for domestic oil and gas activities that can be produced". According to the General Department of Vietnam Customs, the materials that need to be imported to serve oil and gas exploration activities directly need only be compared with Appendix 6 of Circular 05.

For other goods, according to the guidance of the Ministry of Planning and Investment, depending on the purpose of use, the field of production, the goods will have different requirements in terms of characteristics, standards and techniques. Therefore, the General Department of Vietnam Customs requested the units based on the purpose of use, the field of production of the goods to select, apply and compare with an appropriate appendix.

Regarding the inconsistency between goods names, HS codes, symbols, specifications, descriptions and technical descriptions of some goods, the General Department of Vietnam Customs requested units to look up goods names, descriptions and technical descriptions which are specified in Circular 05 to comply with regulations for goods with clear product names, descriptions and specifications.

As for barges and ships; valves; labor protection equipment; fixed platforms at sea, in Appendix 1 of Circular 05 stipulated that domestically available products include goods that have specifications lower than or equal to those specified in the technical description of the goods, the General Department of Customs suggested the units to study and implement.

For example, No. 79 in Appendix 1 of Circular 05 stipulates barges with a technical description: tonnage of 9,500 tons, a carrying capacity of 150 people. Therefore, it could be determined as domestically produced goods.

In addition, for valve products (No. 397-400, 402, 409, 410 Appendix 4 of Circular 05); labor protection equipment (No. 40, Appendix 6); fixed platforms at sea, the General Department of Vietnam Customs said that units need to look up the name, description, and technical characteristics in Circular 05 to determine.

The General Department of Vietnam Customs emphasized that according to the response of the Ministry of Planning and Investment related to document No. 1068/BKHDT-KHCN dated March 1, 2021, the Circular 01/2018/TT-BKHDT dated March 30, 2018 has expired, it is requested that the units do not continue to apply this document to determine whether imported goods are domestically available products or not.

By Nụ Bùi/Thanh Thuy

Related News

Halal Market: The Door is Wide Open, How to Exploit It

Halal Market: The Door is Wide Open, How to Exploit It

VCN - The size of the global Halal economy is estimated to reach USD 7,700 billion in 2025, expected to increase to 10,000 billion USD in 2028. Besides "certification", what do businesses need to effectively exploit the potential of this market?
Concerns over counterfeit goods in e-commerce and express delivery

Concerns over counterfeit goods in e-commerce and express delivery

VCN - The proliferation of counterfeit goods and intellectual property (IP) violations in e-commerce has become a significant challenge for businesses and authorities alike. This issue was highlighted at the seminar titled "Enhancing Cooperation to Combat Smuggling, Counterfeiting, and IP Violations," organized by Customs Magazine last weekend in Ho Chi Minh City.
Challenges in preventing counterfeit goods and intellectual property violations in e-commerce

Challenges in preventing counterfeit goods and intellectual property violations in e-commerce

VCN - The open sale of counterfeit goods, items with unclear origins, and intellectual property (IP) infringing products on e-commerce websites has become a growing trend.
Policy adaptation and acceleration of digital transformation in tax and customs management

Policy adaptation and acceleration of digital transformation in tax and customs management

VCN - In order to contribute to economic growth, tax, customs and logistics management policies need to ensure high adaptability, stability and predictability so that they require little amendment or supplementation.

Latest News

Flexible tax policy to propel Việt Nam’s economic growth in 2025

Flexible tax policy to propel Việt Nam’s economic growth in 2025

The Vietnamese government has extended and enhanced tax relief for 2025, offering reductions and deferrals to boost economic growth.
Brandnew e-commerce law to address policy gaps

Brandnew e-commerce law to address policy gaps

The proposed law seeks to address gaps in existing regulations and keep pace with technological advancements and evolving business models.
From January 1, 2025: 13 product codes increase export tax to 20%

From January 1, 2025: 13 product codes increase export tax to 20%

VCN - According to the Export Tariff (XK) issued with Decree 26/2023/ND-CP, from January 1, 2025, there will be 13 commodity codes with an export tax rate of 20%.
Export tax rates of 13 commodity codes to increase to 20% from January 1, 2025

Export tax rates of 13 commodity codes to increase to 20% from January 1, 2025

VCN – According to the Export Tariff issued with Decree 26/2023/ND-CP, the tax rates of 13 commodity codes will increase to 20% from January 1, 2025.

More News

Proposal to reduce 30% of land rent in 2024

Proposal to reduce 30% of land rent in 2024

VCN - The Ministry of Finance has finalized a draft Government Decree outlining the reduction of land rent for 2024. The draft is currently under review by the Ministry of Justice before being submitted to the Government for approval.
Resolve problems related to tax procedures and policies for businesses

Resolve problems related to tax procedures and policies for businesses

VCN - Immediately after the end of the Dialogue Conference between the Ministry of Finance and enterprises on tax and customs policies and administrative procedures in 2024, the General Department of Customs proactively removed obstacles related to tax procedures and policies for the business community.
New regulations on procurement, exploitation, and leasing of public assets

New regulations on procurement, exploitation, and leasing of public assets

VCN - Decree No. 114/2024/ND-CP, which amends and supplements certain articles of Decree No. 151/2017/ND-CP detailing the implementation of the Law on Management and Use of Public Assets, introduces significant changes. These include updates on authority, methods of asset exploitation in agencies and units, plans for leasing, joint ventures, and partnerships in public service units, as well as centralized procurement procedures.
Actively listening to the voice of the business community

Actively listening to the voice of the business community

VCN - Recognizing the Customs-business relationship as a long-term partnership, the Customs authority has organized hundreds of dialogues with businesses since the beginning of the year. These efforts aim to promptly address challenges, resolve obstacles, and facilitate import-export activities. Such meetings offer an opportunity for the Customs authority and the business community to exchange, share insights, and find solutions to enhance operational quality and efficiency.
Step up negotiations on customs commitments within the FTA framework

Step up negotiations on customs commitments within the FTA framework

VCN - Promoting negotiations on customs commitments within the framework of free trade agreements (FTAs) plays an important role in facilitating import and export activities. These commitments not only help optimize the customs clearance process but also minimize costs and risks for businesses, opening up great opportunities for Vietnamese goods to access deeper into the international market.
Proposal to amend regulations on goods circulation

Proposal to amend regulations on goods circulation

VCN - To perfect the policy on customs procedures, inspection and supervision, enterprises and associations have contributed many ideas from practical activities. Thereby, the Drafting Committee (General Department of Customs) has more perspectives to build policies to meet the goal of facilitating trade and ensuring state management of customs.
Review of VAT exemptions for imported machinery and equipment

Review of VAT exemptions for imported machinery and equipment

VCN - The General Department of Vietnam Customs has directed provincial and municipal customs departments to review, inspect, and address issues related to the implementation of VAT exemption policies for specialized machinery and equipment used in agricultural production.
Customs tightens oversight on e-commerce imports

Customs tightens oversight on e-commerce imports

VCN - The General Department of Vietnam Customs has issued new directives to enhance the management of imported goods transacted through e-commerce platforms, addressing ambiguities and ensuring consistent enforcement across provincial and municipal customs departments.
Bringing practical experience into customs management policy

Bringing practical experience into customs management policy

VCN - At the workshop to collect opinions from Southern Customs units on the draft Decree amending and supplementing Decree 08/2015/ND-CP dated January 21, 2015 of the Government; the draft Circular amending and supplementing Circular 38/2015/TT-BTC dated March 25, 2015 and Circular 39/2018/TT-BTC dated April 20, 2018 of the Minister of Finance, organized by the General Department of Customs last weekend, many Southern Customs units contributed specific contents from practical operations in the locality.
Read More

Your care

Latest Most read
Flexible tax policy to propel Việt Nam’s economic growth in 2025

Flexible tax policy to propel Việt Nam’s economic growth in 2025

The Vietnamese government has extended and enhanced tax relief for 2025, offering reductions and deferrals to boost economic growth.
Brandnew e-commerce law to address policy gaps

Brandnew e-commerce law to address policy gaps

The proposed law seeks to address gaps in existing regulations and keep pace with technological advancements and evolving business models.
From January 1, 2025: 13 product codes increase export tax to 20%

From January 1, 2025: 13 product codes increase export tax to 20%

VCN - According to the Export Tariff (XK) issued with Decree 26/2023/ND-CP, from January 1, 2025, there will be 13 commodity codes with an export tax rate of 20%.
Export tax rates of 13 commodity codes to increase to 20% from January 1, 2025

Export tax rates of 13 commodity codes to increase to 20% from January 1, 2025

VCN - 13 commodity codes with export tax rates increased to 20% from January 2025 include:
Proposal to reduce 30% of land rent in 2024

Proposal to reduce 30% of land rent in 2024

The Ministry of Finance has finalized a draft Government Decree outlining the reduction of land rent for 2024. The draft is currently under review by the Ministry of Justice before being submitted to the Government for approval.
Mobile Version