Công văn 11897/BTC-CST

In past time, the Ministry of Finance has received proposals for guiding on environmental protection tax applicable to nylon bags which are not used or just used partly for product packing. On this problem, the Ministry of Finance has the following opinion:

- At Clause 1 Article 2 of the Law on environmental protection tax prescribes:

“1. Environmental protection tax means indirect-collected tax, collected on products and goods (hereafter referred to as goods) when their use cause severe impacts to environment”.

- At Article 1 of the Decree No.69/2012/ND-CP dated September 14, 2012, amending and supplementing Clause 3 Article 2 of the Government’s Decree No. 67/2011/ND-CP dated August 08, 2011, prescribes taxable objects as follows:

“3. The taxable nylon bags (plastic bags) specified in Clause 4 Article 3 of the Law on Environment protection tax are the bags and packages made of thin plastic in form of bag (with an bag mouth, bag bottom, bag body, and can contain products) made of high density polyethylene resin (HDPE), low density polyethylene (LDPE), or linear low density polyethylene resin (LLDPE), except for packaging of the packaged goods and nylon bags that satisfy the eco-friendly criteria as prescribed by the Ministry of Natural Resources and Environment).

Packaging of the packaged goods defined in this Clause (whether or not in form of bags), includes:

a) Packaging of the packaged import goods;

b) Packaging produced or imported by organizations, households or individuals to pack the products which they produce, process, or purchase, or to provide packaging services;

c) Packaging which organizations, households or individuals directly purchase from producers or importers to pack the products that they produce, process, or purchase, or to provide packaging services".

- At point a2 and point b2 Article 1 of the Circular No.159/2012/TT-BTC dated August 29, 2012, amending and supplementing Circular No. 152/2011/TT-BTC dated November 11, 2011, of the Ministry of Finance amend and supplement Clause 4 Article 1 as follows:

“a2)…

The packaging that the producers or importers have committed or declared at import stage of use for packing products, but then they have not used for packing products, and they have used for internal use, exchange, or for donation, hence the producers or importers must declare and pay environment protection tax, and shall be handled as prescribed by law on tax administration.

…

b2) For imported packaging, the importer must provide the Customs agencies when import: Customs dossier of imported packaging as prescribed. The importers must make declaration and bear responsibility for the declared content of packaging import for packing products or selling directly to packaging buyers for packing products in accordance with law..."

- At point 1.3 Article 7 of the Circular No. 152/2011/TT-BTC dated November 11, 2011, of the Ministry of Finance prescribes declaration of environmental protection tax as follows:

“a) For produced goods sold, exchanged, used for internal consumption, donated, used for sales promotion or advertising, tax shall be declared, calculated and paid on a monthly basis under the Law on Tax Administration and guiding documents.

In case there is no payable environmental protection tax amount in a month, taxpayers are still required to make and submit tax declarations to tax administration agencies for monitoring.

b) For imported goods and goods imported under entrustment which are subject to environmental protection tax, taxpayers shall declare, calculate and pay tax each time when there is an environmental protection tax amount (except petrol and oil imported for sale).

Environmental protection tax on imported goods shall be declared, calculated and paid simultaneously with declaration and payment of import duty, except imported petrol and oil which comply with Clause 2, Article 7 of this Circular.

In this case, the time limit for environmental protection tax payment is the time limit for import duty payment under the Law on Tax Administration and guiding documents”.

Based on provisions mentioned above:

- If the importers have declared import of nylon bags for packing products but they have not used or just used partly for packing products, and used such bags for exchange, internal use, donation (except for nylon bags in the loss rate whether or not registered norms with customs agencies such as torn, punctured or crumpled bags during production, irrespective of case where this quantity of nylon bags is sold, donated or damaged or not, will be defined as quantity of nylon bags not been used or not been used wholly), the importers must declare, pay environmental protection tax for nylon bags not used or not been used wholly and shall be handled in accordance with law on tax administration.

- The environmental protection tax for quantity of nylon bags which are not used or not used wholly mentioned above shall be declared and paid as follows:

+ Case where nylon bags are imported under type of importing raw materials and supplies for export production or processing for export: The importers must declare, pay environmental protection tax for quantity of nylon bags which are not used or not used wholly mentioned above at customs agencies. Time for declaration and tax payment shall comply with guides in the Circular No. 117/2011/TT-BTC dated August 15, 2011, and the Circular No. 194/2010/TT-BTC dated December 06, 2010, of the Ministry of Finance.

+ Case where the nylon bags are imported under type of import for trading: The importers must declare, pay environmental protection tax for quantity of the imported nylon bags which are not used or not used wholly mentioned above at tax agencies where the importers have head offices. The customs agencies shall notify in writing and enclose copy of import dossier to tax agencies where the importers have head offices for handling in accordance with regulation. The importers shall declare, pay tax on a monthly basis as prescribed by Law on tax administration and guiding documents.

The Ministry of Finance guides Tax Departments and Customs Departments of provinces and central-affiliated cities for information and implementation.