Bases used for determination of building materials that cannot be domestically produced shall be carried out according to the Ministry of Planning and Investment's regulations (currently, it is Circular No. 01/2018/TT-BKHDT).
Accordingly, in case building materials imported for projects eligible for investment incentives are domestically – produced building materials, import duty shall not be exempt in this case.
In which, it is required to declare product category in accordance with the list of products specified in Table 1, Part 2. Names of products, goods are regulated based on national or international standards.
In addition, it is also required to provide customs authority at checkpoint with an application for registration of certification of conformity bearing certification of a certification body with the purpose of clearance of goods.
The List of organizations competent to conduct regulation conformity certification with regard to goods, products of building materials is provided in the Annex enclosed with this Official letter.
On such application for registration, it is required to bear the certification of certification bodies designated by the Ministry of Construction with full information about name of product; number; quantity; time of import; sale contract; invoice, bill of lading, manifest; form of assessment.
Regarding the list of regulation conformity certification bodies appointed by the Ministry of Construction, it has been published on the Ministry of Construction's website.
According to Clause 11 Article 16 of the Law on import and export duties No. 107/2015/QH13, imports as fixed assets of projects to which investment is encouraged shall be exempt from duty.
On the other hand, according to Article 7 Section I Part A Annex I issued together with Decree No. 118/2015/ND-CP, manufacture of “light building materials” is the business line eligible for special investment incentives.
Accordingly, if the “light plasterboards” manufactured by the enterprise are certified by the Ministry of Construction that they are the light building material category eligible for special investment incentives, import duty on goods imported to form fixed assets for the project shall be exempt.
As the result, the consignments of building materials coming into port before January 1st, 2018 but the regulation conformity certification is made after December 31st, 2017, the regulation conformity certification for such consignments must be carried under QCVN 16:2017/BXD.
Hoverer, upon carrying out procedures for customs clearance, enterprises need to provide the written registration of certification of conformity at certification bodies designated by the Ministry of Construction.
If an enterprise imports construction sand through a secondary border gate, it shall also comply with Decision No. 52/2015/QD-TTg and Circular No. 34/2016/TT-BCT.
Regarding import duty, the enterprise shall determine, based on actually – imported goods in comparison with the List of imports and exports issued together with Circular No. 103/2015/TT-BTC and the Tariffs issued together with Decree No. 122/2016/ND-CP.
Accordingly, from 2018, all goods of building materials which are domestically manufactured or imported must be ensured their quality under the new national regulation QCVN 16:2017/BXD
instead of QCVN 16:2014/BXD issued together with Circular No. 15/2014/TT-BXD .
However, it is not applicable to building materials imported to be used as samples or used for testing, displayed at trade fairs and exhibitions and goods temporarily imported for re-export, goods in transit.
Regarding form of certification of conformity, the certification of conformity of building materials that are domestically manufactured shall be applied with either the fifth method or the seventh method specified in Part 3 QCVN 16:2017/BXD. The certification of conformity of building materials that are imported shall be applied with one of the first, fifth or seventh methods specified in Part 3 QCVN 16:2017/BXD.
Upon importing building materials, importers have to present the written registration of the declaration of conformity for carrying procedures for customs clearance.
For traders and users of building materials specified in QCVN 16:2017/BXD, they must possess the copy or the original of the certificate of conformity and the declaration of conformity of organizations, individuals declaring the conformity.
This Circular takes effect from January 1st, 2018.
The following Circular shall be expired as from the effective date of this Circular:
If the exported building materials have total value of natural resources, minerals added energy cost accounting for 51% production price of the products or more, they are not subject to VAT but input VAT shall not be deducted/refunded.
In contrast, if they have total value of natural resources, minerals added energy cost accounting for less than 51% production price of the products, they are entitled to apply 0% VAT and input VAT shall be deducted/refunded.