Circular 60
Circular 60
Circular 60
CIRCULAR
AMENDING A NUMBER OF ARTICLES OF THE CIRCULAR NO. 39/2015/TT-BTC DATED MARCH 25,
2015 BY THE MINISTER OF FINANCE ON CUSTOMS VALUE OF EXPORTED GOODS AND
IMPORTED GOODS
APPENDIX I
THE APPENDIX I ENCLOSED WITH THE CIRCULAR NO. 39/2015/TT-BTC IS AMENDED AS
FOLLOWS: (Enclosed with the Circular No. 60/2019/TT-BTC dated August 30, 2019 by the Minister of
Finance)
“APPENDIX I
SOME EXAMPLES ON ROYALTY/LICENSE FEE (Enclosed with the Circular No. 39/2015/TT-BTC dated
March 25, 2015 by the Minister of Finance)
1. Examples of royalty/license fee satisfying the “relating to imported goods”
condition (prescribed in Point a Clause 3 and Clause 4 of Article 14 herein)
Example 1: Example for the case prescribed in Point b.1 Clause 4 of Article 14 herein is as follows:
Company Y (the seller) of country B uses the technical know-how Z (trade secret) to produce the K brand
motorcycle engine. Company X (the buyer) of Vietnam imports the K brand motorcycle engine of company Y.
Besides paying for the imported goods, company X must pay a fee for the right to use the K brand motorcycle
engine to company K.
The payment for the right to use the K brand motorcycle engine is related to the imported goods being
motorcycle engines, thus satisfying the regulations in Point b.1 Clause 4 of Article 14 herein.
Example 2: Example for the case prescribed in Point b.2 Clause 4 of Article 14 herein is as follows:
Company I of Vietnam signs a contract with company J of country X on importation of a drug containing the
active ingredient A. The active ingredient A is a product created based on the patent B. Therefore, in order to
purchase the drug containing the active ingredient A, the buyer – company I – must pay a royalty to company J
(calculated by product unit). The royalty in this case is considered to be related to the imported goods as
prescribed in Point b.2 Clause 4 of Article 14 herein.
2. Examples of the cases where the buyer must directly or indirectly pay
royalty/license fee as a condition for sale of imported goods (as prescribed in
Point b Clause 3 and Clause 6 of Article 14 herein)
The cases from 1 to 7 (except for case 2) all satisfy the condition where the buyer pays royalty/license fee “as a
condition for sale of imported goods”. To be specific:
Case 1:
The Buyer B and the Seller S agree that the buyer shall pay for the goods and royalties in the sale contract. In
reality, the buyer pays for the goods and royalty to the seller as agreed. Thus, the royalty paid by the buyer in this
case satisfies the “as a condition for sale of imported goods” condition as prescribed in Clause 6 Article 14
herein, because the Buyer B pays the royalty to the Seller S (who is also the intellectual property rights holder) to
be able to purchase the goods.
Case 2:
The Buyer B and the Seller S signs a goods sale contract stating that the seller shall provide the goods and the
buyer shall pay for such goods. There is no agreement between B and S on the subject matters of intellectual
property rights related to the trade of goods between B and S.
Based on the sale contract, the Buyer B pays the Seller S for the goods; in return, the Seller S delivers the goods
to the Buyer B.
On the other hand, to ensure lawful business rights for the goods incorporating subject matters of intellectual
property rights, the Buyer B signs an agreement on transfer of right to use subject matters of intellectual property
rights with the intellectual property rights holder L and pays the royalty as agreed with L.
The royalty paid by the Buyer B to L in this case does not satisfy the “as a condition for sale of imported goods”
condition as prescribed in Point b Clause 3 and Clause 6 of Article 14 herein as there is no agreement stipulating
that the Buyer B must pay royalty to be able to purchase the goods from the Seller S.
Case 3:
The Buyer B signs a goods sale contract with the Seller S stating that B must sign an agreement on transfer of
right to use subject matters of intellectual property rights with the intellectual property rights holder L and pay
royalty to L.
B receives the goods from S and pays S for such goods.
B pays royalty to L per the concluded agreement on transfer of right to use subject matters of intellectual
property rights.
The royalty paid by the Buyer B to L in this case satisfies the “as a condition for sale of imported goods”
condition prescribed in Point b Clause 3 and Clause 6 of Article 14 herein as there is an agreement between the
Buyer B and the Seller S that the Buyer B must pay royalty to L to be able to purchase the imported goods.
Case 4:
The Buyer B signs a goods sale contract with the Seller S stating that B must sign an agreement on transfer of
right to use subject matters of intellectual property rights with the intellectual property rights holder L and pay
royalty to L. L is the parent company of S.
The Buyer B receives the goods from S and pays S for such goods as agreed in the sale contract. The Buyer
Balso pays royalties to L per the transfer agreement.
The royalty paid by the buyer in this case satisfies the “as a condition for sale of imported goods” condition as
prescribed in Point b Clause 3 and Clause 6 of Article 14 herein as the Seller S and the intellectual property
rights holder L have a special relationship (subsidiary – parent company) and the buyer can only purchase the
goods when the royalty is paid.
Case 5:
The Buyer B signs a goods sale contract with the Seller S stating that B must sign an agreement on transfer of
right to use subject matters of intellectual property rights with the intellectual property rights holder L and pay
royalty to L.
The Buyer B has signed the agreement on transfer of right to use subject matters of intellectual property rights
with L and paid royalty to L.
The Holder L and the Seller S have an agreement that the Holder L shall only sign the agreement on transfer of
right to use subject matters of intellectual property rights if the buyer buys S's goods; in return, when signing the
goods sale contract, the Seller S shall only agree to sell to the buyer who agrees to pay royalty to L.
The royalty paid by the buyer in this case satisfies the “as a condition for sale of imported goods” condition as
prescribed in Point b Clause 3 and Clause 6 of Article 14 herein as the Buyer B who purchases the goods from
the Seller S is designated by the intellectual property rights holder L
Case 6:
The Buyer B signs a goods sale contract with the Seller S, receives the goods from S and pays for the goods per
the contract. In the goods sale contract, both parties agree that B shall pay a fee for the right to use subject
matters of intellectual property rights to S as S has an agreement on exclusive use of subject matters of
intellectual property rights with the Holder L.
The royalty paid by the buyer in this case satisfies the “as a condition for sale of imported goods” condition as
prescribed in Point b Clause 3 and Clause 6 of Article 14 herein as the Buyer B can only purchase the goods after
paying the royalty to theSeller S.
Case 7:
The Buyer B signs an agreement on exclusive right to use industrial property rights with the intellectual property
rights holder L where the Holder L designates the Buyer B to buy only the goods from the Manufacturer S. B
pays royalty to L per the license contract. According to the agreement with the Holder L, the Buyer B signs a
goods sale contract with the Seller S, receives the goods from S and pays S for such goods.
The royalty paid by the buyer in this case satisfies the “as a condition for sale of imported goods” condition as
prescribed in Point b Clause 3 and Clause 6 of Article 14 herein as the Buyer B must pay royalty to be able to
purchase the goods from the Seller S, meeting the technical standard of the intellectual property rights holder
L.”.
APPENDIX II
THE APPENDIX II ENCLOSED WITH THE CIRCULAR NO. 39/2015/TT-BTC IS AMENDED AS
FOLLOWS: (Enclosed with the Circular No. 60/2019/TT-BTC dated August 30, 2019 by the Minister of
Finance)
“APPENDIX II
LIST OF FORMS (Enclosed with the Circular No. 39/2015/TT-BTC dated March 25, 2015 by the Minister of
Finance)
The form No. 04/TGHQ is improved as follows:
Form
No. Form name No. Provided for printing
HEAD OF UNIT”
(signature, full name and stamp)