To determine the import tax on complete equipment and single equipment and facilitate the calculation and collection of import tax on complete and single equipment, the Ministry of Finance issued Circular No.06-TC/TCT on January 19, 1993 and Official Dispatch No.602-TC/TCT on September 25, 1995 stipulating and guiding the concrete settlement principles. Now, the Ministry of Finance defines and gives more detailed guidance on the import tax applicable to the complete equipment of a production line as defined in Point 2 of Circular No.06-TC/TCT as follows:

1. Where a specialized agency determine that a line of machinery and/or equipment imported to carry out a technical production plan of a factory or a project... is in complete sets and in conformity with the design of the producer; and that they are interconnected and inseparable and such line cannot operate without one such machine or equipment, the import tax rate prescribed for the main machine of the line shall apply. The main machine of the line shall be determined by the agency which approves the investment project for renewing the line of equipment and/or machinery when approving the project.

2. Conditions for a lot of equipment in complete sets to enjoy the import tax rate prescribed for the main machine of the lot include:

- The import contract, payment invoice, packing list of the import goods and other vouchers (if any) to prove that the import goods are equipment in complete sets.

- Goods actually imported are equipment in complete sets.

Without one of the above-said conditions, the import tax shall be calculated and collected strictly according to chapter, heading and subheading of each specific machinery or equipment as detailed in the Import Tariff.

This Circular takes effect from October 1st, 1998. The previous stipulations which are contrary to this Circular are now annulled. All problems arising before the effective date of this Circular shall be considered and settled by the Ministry of Finance on a case-by-case basis.

Problems arising in the course of implementation shall be reported by the concerned units to the Ministry of Finance for timely solution.

For the Minister of Finance

Vice Minister