Update to the List of Domestically Produced Goods

Attached to Circular 01 are 9 lists of domestically produced goods with more than 1,900 types of goods produced domestically. This serves as a crucial basis for central and local government agencies and import units across the country to use.

The Ministry of Planning and Investment (MPI) has indicated that after two years since the issuance of Circular No. 14/2015/TT-BKHDT, domestic enterprises have been able to produce some new goods to meet market demands. Concurrently, some enterprises have ceased production and no longer supply the goods listed in the Circular No. 14/2015/TT-BKHDT. Therefore, it is necessary to add new items to the list and remove some discontinued items. Opinions from state management agencies, business associations, and enterprises have shown high consensus on the necessity of issuing Circular 01.

Circular 01 emphasizes that this list is the basis for determining the subjects that are exempt from value-added tax according to the provisions of Decree No. 209/2013/ND-CP dated December 18, 2013, by the Government, which provides detailed regulations and guides the implementation of certain articles of the Value Added Tax Law and many other related documents.

The goods domestically produced as stated in the Lists attached to Circular 01 are generally applicable and independent of the intended use, except for specialized goods (specialized goods are those that must meet specific technical standards for use indicated in specialized certificates).

The subjects affected are agencies, organizations, businesses, and individuals related to the import of goods that are not subject to value-added tax according to Clause 7, Article 3 of Decree 209/2013/ND-CP; subjects exempt from import tax as stipulated in Articles 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, and 28 of Decree No. 134/2016/ND-CP dated September 1, 2016, by the Government.

Based on this, central and local state management agencies and import units across the country use the List of domestically produced goods according to Circular 01 to identify domestically non-produced goods eligible for value-added tax exemption/import tax exemption as prescribed.

The 9 lists of domestically produced goods issued along with Circular 01 include: List of domestically produced specialized transport vehicles (92 goods); List of domestically produced machinery and equipment (336 goods); List of domestically produced construction materials (113 goods); List of domestically produced materials, supplies, components, and replacement parts (678 goods); List of domestically produced automobile components and parts (197 goods); List of domestically produced materials needed for oil and gas activities (74 goods); List of domestically produced materials, supplies, and semi-finished products for shipbuilding (11 goods); List of domestically produced machinery, equipment, materials, supplies, and components in the telecommunications - information technology, digital content, and software sectors (178 goods); List of domestically produced plant varieties, animal breeds, fertilizers, and plant protection drugs (204 goods).

To encourage investors, bidders, and contractors to use domestically produced goods, in 2017, the Prime Minister of the Government issued Directive No. 13/CT-TTg on enhancing the use of domestically produced materials and goods in bidding for development investment projects and regular procurement activities using state funds, replacing Directive No. 494/CT-TTg issued earlier. Directive No. 13/CT-TTg has received strong support from enterprises, investors, and bidders in public procurement activities.

In 2017, the Department of Procurement Management issued approximately 800 legal guidance documents on public procurement to agencies and units, including many documents related to incentive policies in bidding for domestically produced goods.

See also: Circular No. 01/2018/TT-BKHDT, effective May 15, 2018.

Source: Bao Dau Thau

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