Circular No. 128/2013/TT-BTC of September 10, 2013, on customs procedures, customs supervision and inspection; import duty, export duty, and tax administration of imports and exports

THE MINISTRY OF FINANCE

Circular No. 128/2013/TT-BTC of September 10, 2013, on customs procedures, customs supervision and inspection; import duty, export duty, and tax administration of imports and exports

Pursuant to June 29, 2011 Law No. 29/2001/QH10 on Customs and June 14, 2005 Law No. 42/2005/QH11 Amending and Supplementing a Number of Articles of the Customs Law;

Pursuant to June 14, 2005 Law No. 45/2005/QH11 on Export Duty and Import Duty;

Pursuant to November 29, 2006 Law No. 78/2006/QH11 on Tax Administration and November 20, 2012 Law No. 21/2012/QH13 Amending and Supplementing a Number of Articles of the Law on Tax Administration;

Pursuant to December 16, 2002 Law No. 01/2002/QH11 on the State Budget;

Pursuant to June 3, 2008 Law No. 13/2008/QH12 on Value-Added Tax;

Pursuant to November 14, 2008 Law No. 27/2008/QH12 on Excise Tax;

Pursuant to November 15, 2010 Law No. 57/2010/QH12 on Environmental Protection Tax;

Pursuant to November 15, 2010 Law No. 56/2010/QH12 on Inspection;

Pursuant to the Government’s Decree No. 16/2001/ND-CP of May 2, 2001, on the organization and operation of finance lease companies and Decree No. 65/2005/ND-CP of May 19, 2005,  amending and supplementing a number of articles of Decree No. 16/2001/ND-CP;

Pursuant to the Government’s Decree No. 66/2002/ND-CP of July 1, 2002, on allowable quotas on luggage of people on exit and entry and duty-free gifts;

Pursuant to the Government’s Decree No. 154/2005/ND-CP of December 15, 2005, on customs procedures, customs inspection and supervision;

Pursuant to the Government’s Decree No. 12/2006/ND-CP of January 23, 2006, detailing the implementation of the Commercial Law regarding international goods trading and activities of agency, trading, processing and transit of goods with foreign partners;

Pursuant to the Government’s Decree No. 23/2007/ND-CP of February 12, 2007, detailing the implementation of the Commercial Law regarding goods trading and other activities directly related to goods trading of foreign-invested enterprises;

Pursuant to the Government’s Decree No. 29/2008/ND-CP of March 14, 2008, on industrial parks, export-processing zones and economic zones;

Pursuant to the Government’s Decree No. 123/2008/ND-CP of December 8, 2008, detailing and guiding the implementation of a number of articles of the Law on Value-Added Tax and the Government’s Decree No. 121/2011/ND-CP of December 27, 2011, amending and supplementing a number of articles of Decree No. 123/2008/ND-CP;

Pursuant to the Government’s Decree No. 26/2009/ND-CP of March 16, 2009, detailing a number of articles of the Law on Excise Tax and Decree No. 113/2011/ND-CP of December 8, 2011, amending and supplementing a number of articles of Decree No. 26/2009/ND-CP;

Pursuant to the Prime Minister’s Decision No. 33/2009/QD-TTg of March 2, 2009, promulgating financial mechanisms and policies applicable to border-gate economic zones;

Pursuant to the Government’s Decree No. 93/2009/ND-CP of October 22, 2009, promulgating the Regulation on management and use of foreign non-governmental aid;

Pursuant to the Government’s Decree No. 87/2010/ND-CP of August 13, 2010, detailing a number of articles of the Law on Export Duty and Import Duty;

Pursuant to the Government’s Decree No. 67/2011/ND-CP of August 8, 2011, detailing and guiding the implementation of a number of articles of the Law on Environmental Protection Tax and Decree No. 69/2012/ND-CP of September 14, 2012, amending and supplementing Clause 3, Article 2 of Decree No. 67/2011/ND-CP;

Pursuant to the Government’s Decree No. 07/2012/ND-CP of February 9, 2012, on the agencies appointed to perform the function of specialized inspection and specialized inspection activities;

Pursuant to the Government’s Decree No. 83/2013/ND-CP of July 22, 2013, detailing a number of articles of the Law on Tax Administration and the Law Amending and Supplementing a Number of Articles of the Law on Tax Administration;

Pursuant to the Government’s Decree No. 118/2008/ND-CP of November 27, 2008, defining the functions, tasks, powers and organizational structure of the Ministry of Finance;

At the proposal of the General Director of Customs.

The Minister of Finance promulgates the Circular on customs procedures, customs supervision and inspection, import duty, export duty and tax administration of imports and exports as follows:

Part I

GENERAL GUIDANCE

Article 1.Scope of regulation

This Circular specifies the customs procedures, customs supervision and inspection of imports and exports and goods in transit; means of transport on entry, exit or in transit, import duty, export duty, and tax administration of imports and exports.

Article 2.Goods not liable to import duty and export duty

The goods specified in Article 2 of the Government’s Decree No. 87/2010/ND-CP of August 13, 2010, detailing the implementation of the Law on Import Duty and Export Duty are not liable to import duty and export duty.

Article 3.Principles ofcarrying out customs procedures, customs supervision, customs inspection and tax administration

1. The customs procedures, customs inspection and supervision, and tax administration comply with Article 3 of the Government’s Decree No. 154/2005/ND-CP of December 15, 2005, on customs procedures, customs inspection and supervision; Article 4 of the Law on Tax Administration, which is supplemented in Clause 1, Article 1 of November 20, 2012 Law No. 21/2012/QH13 Amending and Supplementing a Number of Articles of the Law on Tax Administration.

2. Customs offices shall apply risk management to customs procedures, customs inspection, customs supervision and tax administration of imports and exports, means of transport on entry, exit or in transit in accordance with law.

Article 4.Post-customs clearance inspection

Customs dossiers; imports and exports that have been granted customs clearance are subject to post-customs clearance inspection according to Article 32 of Law No. 42/2005/QH11 on Customs, Chapter X of Law No. 78/2006/QH10 on Tax Administration, Clause 24, Article 1 of Law No. 21/2012/QH13 Amending and Supplementing a Number of Articles of the Law on Tax Administration, Decree No. 83/2013/ND-CP, Chapter VI of Decree No. 154/2005/ND-CP, and Part VI of this Circular.

Article 5.Rights and obligations of customs declarants and taxpayers; responsibilities and powers of customs offices and customs officers

1. Customs declarants and taxpayers may exercise their rights and fulfill their obligations specified in Article 23 of the Customs Law; Articles 6, 7 and 30 of the Law on Tax Administration, which are amended in Clauses 3, 4 and 7, Article 1 of Law No. 21/2012/QH13 Amending and Supplementing a Number of Articles of the Law on Tax Administration; Article 56 of Decree No. 154/2005/ND-CP; and Article 5 of Decree No. 83/2013/ND-CP.

2. The restructured companies shall inherit the rights and fullfill the tax obligations in accordance with Article 55 of the Law on Tax Administration, specifically:

a/ Converted companies shall inherit the tax obligations and entitlements and incentives related to customs procedures and import duty payment procedures of the old companies;

b/ Consolidated, merged, divided or split companies may apply the 275-day tax payment time limit to raw materials and supplies imported for export production according to Article 38 of Decree No. 83/2013/ND-CP and Clause 1, Article 20 of this Circular when:

b.1/ Both consolidating and consolidated or merging and merged enterprises meet the prescribed conditions.

b.2/ The new enterprises are formed from the divided or split enterprises that meet the prescribed conditions.

c/ If the enterprise consolidated, merged, split or divided falls into other cases, the director of the Customs Department of the province or city where its head office is located shall decide the application of the 275-day tax payment time limit according to Article 38 of Decree No. 83/2013/ND-CP and Clause 1, Article 20 of this Circular.

3. Customs declarants and taxpayers shall certify, sign and append its seal on the documents in the customs dossier, supplementary declaration dossier, liquidation dossier, dossier for registration of duty-free goods, tax finalization dossier, dossier of request for tax exemption, reduction, refund or non-collection, dossier of request for settlement of tax, late payment interests or overpaid fines, dossier of request for tax payment deadline extension, dossier of request for payment of tax arrears in installments, dossier of request for prior determination of headings, dossier of request for prior determination of customs value, dossier of request for prior determination of goods origin, dossier of request for certification of tax obligation fulfillment, dossier of request for write-off of tax debts, late payment interests or fines; and papers that are copies, other documents issued by foreigners in the form of electronic file, fax, telex, etc., that are submitted to the customs offices as guided in this Circular, and shall take responsibility before law for the accuracy, truthfulness and legality of these papers and documents. If the copy has multiple pages, the customs declarant or taxpayer shall certify, sign and append its seal on the first page and every two adjoining pages of the entire document.

Documents in any of the dossiers above that are not in Vietnamese or English must be translated into Vietnamese, and the customs declarant or taxpayer shall take responsibility before law for the accuracy and truthfulness of Vietnamese translations.

4. Customs offices and customs officers shall perform the responsibilities and powers specified in Article 27 of the Customs Law; Articles 8 and 9 of the Law on Tax Administration, which are amended and supplemented in Clauses 5 and 6 of Law No. 21/2012/QH13 Amending and Supplementing a Number of Articles of the Law on Tax Administration; and Article 57 of Decree No. 154/2005/ND-CP.

5. Customs offices may consider and approve the physical inspection and grant customs clearance after office hours based on prior written (or faxed) registration of the customs declarant and the actual conditions of the customs offices. An ongoing physical inspection may continue beyond office hours without a written request of the customs declarant.

6. Cooperation between customs offices and customs declarants or taxpayers

a/ Customs offices shall provide guidance on the customs procedures, and information and  documents, publicize the customs and tax procedures for customs declarants or taxpayers to comply with customs and tax laws, and exercise their powers and perform their responsibilities in accordance with law;

b/ Customs declarants or taxpayers shall promptly provide customs offices with information relating to imports and exports, means of transport on entry, exit or in transit, and violations of customs law in order to ensure healthy competition in commerce;

c/ Customs offices and customs declarants or taxpayers may coordinate or exchange information between them by signing a memorandum in order to ensure the fulfillment of obligations and responsibilities of both parties.

Part II

CUSTOMS PROCEDURES; CUSTOMS INSPECTION, CUSTOMS SUPERVISION; TAX ADMINISTRATION OF COMMERCIAL IMPORTS AND EXPORTS

Chapter I

GENERAL GUIDANCE ON CUSTOMS PROCEDURES AND TAX ADMINISTRATION

Article 6.Commercial imports and exports

Commercial imports and exports include:

1. Goods imported and exported under goods purchase and sale contracts;

2. Goods temporarily imported for re-export;

3. Goods in border gate transfer;

4. Goods imported or exported as materials for export production;

5. Goods imported or exported for the performance of processing contracts with foreign traders;

6. Goods imported or exported for the implementation of investment projects;

7. Goods imported or exported across the border under regulations of the Prime Minister on management of border trading with bordering countries;

8. Commercial imports and exports of organizations and individuals that are not traders;

9. Imports and exports of export processing enterprises;

10. Goods moved in and out of tax-suspension warehouses;

11. Goods that are temporarily imported for re-export or temporarily exported for re-import for display at fairs or exhibitions;

12. Equipment, machinery and means for construction, molds and models temporarily imported for re-export or temporarily exported for re-import to serve production, construction of works, project execution, testing or research.

Article 7.Prior determination of headings of imports and exports (below referred to as prior determination of headings)

1. Prior determination of headings of imports and exports must be made before carrying out the customs procedures at the request of organizations or individuals.

2. A dossier of request for prior determination of headings comprises:

a/ A written request for prior determination of headings (form No. 01/XDTMS/2013 in Appendix III to this Circular): 1 original;

b/ The purchase and sale contract signed with the foreign party under current regulations for the goods requested for prior determination of headings, and directly performed by the requester: 1 copy;

c/ Technical document describing in detail the composition, properties, structure, utilities and mode of operation of the goods: 1 original;

d/ The catalog or image of the goods: 1 copy;

dd/ Goods samples if requested by the customs office;

e/ A list of documents in the dossier: 1 original.

3. Procedures for prior determination of headings:

a/ The requester for prior determination of headings shall:

a.1/ Fill in the form of request for prior determination of headings (form No. 01/XDTMS/2013 in Appendix III to this Circular);

a.2/ Submit the complete dossier of request for prior determination of headings as specified in Clause 2 of this Article to the Customs Department of the province or city where customs procedures are expected to be carried out, at least 90 days before the date of import or export;

a.3/ Provide and supplement documents and information to clarify the contents of the request for prior determination of headings to the Customs Department or the General Department of Customs at the latter’s request;

a.4/ Notify in writing the Customs Department within 10 days of occurrence of any change related to the goods requested for prior determination of headings, specifying the reason and date of such change;

a.5/ Request the General Department of Customs to extend the time limit for written notification of the result of prior determination of headings when it expires, provided there is no change in the information, documents, goods samples and laws serving as the grounds for issuance of such written notification.

b/ The customs offices:

Based on the law, goods classification database, tax rates applied by the customs office, and the dossier of request for prior determination of headings:

b.1/ The Customs Department shall check the dossier and:

b.1.1/ Send a written notification of refusal of prior determination of headings within 5 working days after receiving the written request if the purchase and sale contract is not directly performed by the requester;

b.1.2/ Request the requester to provide additional information and documents within 5 working days after receiving the written request if the purchase and sale contract is directly performed by the requester but the dossier of request is incomplete or the written request is not fully filled in;

b.1.3/ Send to the General Department of Customs a document stating the suggested headings of the goods, the reasons and grounds for the suggestion, together with the dossier within 5 working days after receiving a complete dossier of request for prior determination of headings, if the purchase and sale contract is directly performed by the requester;

b.1.4/ While considering the suggested headings of the goods, if the information in the documents in the dossier is consistent but the analysis or assessment of goods is needed for determination of the goods’ characteristics, the  Customs Department shall send a written request for the supply of goods samples. The goods samples must be sent for analysis or assessment in accordance with Clauses 8 and 9, Article 17 of this Circular.

Within 5 working days after receiving the analysis or assessment result, the Customs Department shall send to the General Department of Customs the suggested headings, the reasons and grounds for the suggestion, and the dossier of request for prior determination of headings submitted by the requester and the written notification of the analysis or assessment result.

The dossier and result must be updated on the database on goods classification and duty rates applied by the customs offices.

b.2/ The General Department of Customs shall check the dossiers and written suggestions of the Customs Department, and:

b.2.1/ The General Director of Customs shall issue a written notification of the result of prior determination of headings (form No. 02/TB-XDTMS/2013 in Appendix III to this Circular) within 25 working days (for ordinary goods) or within 90 working days (for goods in need of analysis or assessment, or complex goods) after receiving a complete dossier from the Customs Department. This written notification must be sent to the requester, the Customs Department, updated on the database of the customs office, and posted on the website of the General Department of Customs;

b.2.2/ If the grounds and information for prior determination of headings are insufficient, within 5 days after receiving a complete dossier from the Customs Department, the General Department of Customs may send a written request to the requester for provision of additional information and documents.

The time limit for processing the dossier is counted from the date the General Department of Customs receives sufficient information and documents additionally provided by the requester.

b.2.3/ If verification must be carried out at a competent foreign agency, the time limit for verification complies with the agreement signed with the foreign country. The time limit for processing the dossier is counted from the date the General Department of Customs receives the verification result from the competent foreign agency.

4. Validity of the written notification of the result of prior determination of headings

a/ The written notification of the result of prior determination of headings is invalid if the goods actually imported or exported or the dossiers of actual importation or exportation are inconsistent with the goods requested or dossiers of request for prior determination of headings;

b/ The written notification of the result of prior determination of headings is valid for 3 years at most from the date it is signed by the General Director of Customs;

c/ After the 3-year period, if the information, documents, goods samples, and grounds for issuance of the written notification of the result of prior determination of headings are not changed, the General Department of Customs shall consider and extend the time limit for written notification of the result of prior determination of headings at the request of the organization or individual concerned;

d/ The General Director of Customs shall issue a document to revise or replace the written  notification of the result of prior determination of headings (form No. 03/TT-XDTMS/2013 in Appendix III to this Circular) if the written notification is found improper. The document revising or replacing the written notification of the result of prior determination of headings takes effect on the date of its signing;

dd/ The written notification of the result or prior determination of headings ceases to be valid when the legal provisions used as the grounds for its issuance are amended, supplemented or superseded. The date on which it ceases to be valid is the date on which the amendments, supplements or superseding provisions take effect.

e/ The General Director of Customs may issue a document to cancel the written notification of the result of prior determination of headings if documents in the dossier of request for prior determination of headings are found inaccurate or untruthful.

5. The written notification of the result of prior determination of headings serves as the basis for writing headings on the customs declaration and must be submitted together with the customs dossier (1 copy) when carrying out the customs procedures.

6. If disagreeing with the prior determination of headings made by the General Director of Customs, the requester may send a written petition to the Ministry of Finance for consideration and settlement.

Article 8.Prior determination of customs value of imports and exports (below referred to as prior determination of value)

1. Cases and conditions for prior determination of value

a/ Determining in advance the method of determining taxable prices, additions and deductions applicable to imports and exports if the requester for prior determination of value has not yet ever imported or exported any goods identical to these goods.

b/ In addition to satisfying the conditions at Point a of this Clause, the requester for prior determination of prices must:

b.1/ Have engaged in export and import activities for at least 365 days up to the date of filing the written request for prior determination of value. Within the 365-day period, the written request must:

b.1.1/ Not be present in the list of entities sanctioned for smuggling and illegally transporting goods across the border by customs offices;

b.1.2/ Not be present in the list of entities handled for tax evasion or tax fraud in import and export activities by customs offices;

b.2/ Have made payment via bank by opening L/C for all imports or exports under the purchase and sale contract, which are requested for prior determination of value;

b.3/ Deliver the goods under the purchase and sale contract all at once.

2. A dossier of request for prior determination of value comprises:

a/ For the case of request for prior determination of methods of determining taxable value:

a.1/ The written request for prior determination of value (form No. 04XDTMS/2013 in Appendix III to this Circular): 1 original;

a.2/ The purchase and sale contract that is directly performed by the requester according to Clause 1, Article 2 of the Ministry of Finance’s Circular No. 205/2010/TT-BTC of October 15, 2010: 1 copy;

a.3/ Technical documents, photos or catalogs of the goods: 1 copy each;

a.4/ Documents relevant to the case of request for prior determination of value: 1 copy each, such as:

a.4.1/ For imports:

- Documents proving that the special relationship does not affect the transaction value;

- Documents related to the amounts payable by the buyers but not yet included in the purchase price on the commercial invoice;

- Documents related to the additions;

- Documents related to the deductions;

- Other documents related to the goods requested for prior determination of value (if any).

a.4.2/ For exports:

- Relevant documents in the case the actual sale prices at the border gate of exportation are not FOB or DAF prices;

- Other documents related to the goods requested for prior determination of value (if any).

a.5/ A list of documents: 1 original.

b/ For the case of request for prior determination of prices: In addition to the documents mentioned at Point a of this Clause, the dossier of request for prior determination of prices must comprise documents on via-bank payments by opening L/C for all goods under the purchase and sale contract: 1 copy each.

3. Procedures for prior determination of value

a/ The requester shall:

a.1/ Fully fill in the form of written request for prior determination of value (form No. 04/XDTTG/2013 in Appendix III to this Circular);

a.2/ Submit a complete dossier of request for prior determination of value as prescribed in Clause 2 of this Article to the Customs Department at which the requester intends to carry out the customs procedures for the goods requested for prior determination of value at least 90 days before the importation or exportation of the goods;

a.3/ Additionally provide documents and meet with the Customs Department or the General Department of Customs at the latter’s request in order to clarify the request for prior determination of value;

a.4/ Send a written notification to the Customs Department within 10 days from the date a change is made in relation to the goods stated in the dossier of request submitted to the customs office, specifying the change, reason for, and date of change.

a.5/ Request the General Department of Customs to extend the validity of the written notification of the result of prior determination of value when its validity duration expires without any change in the information, documents and legal provisions serving as the grounds for the issuance of the written notification.

b/ For the customs office:

Based on the laws, its value database and the dossier of request for prior determination of value:

b.1/ The Customs Department shall check the dossier and:

b.1.1/ Within 5 working days after receiving the request, send to the requester a written notification of refusal of prior determination of value, if the conditions for prior determination of value specified in Clause 1 of this Article are not satisfied, or the purchase and sale contract is not directly performed by the requester;

b.1.2/ Within 5 working days after receiving the request, send a written request to the requester for provision of additional information, evidence and documents, if the conditions for prior determination of value specified in Clause 1 of this Article are satisfied or the purchase and sale contract is directly performed by the requester, but the dossier is incomplete or information in the dossier is insufficient;

b.1.3/ Within 5 working days after receiving a complete dossier, submit a written request to the General Department of Customs for consideration together with the whole dossier of request for prior determination of value, if the conditions for prior determination of value specified in Clause 1 of this Article are satisfied or the purchase and sale contract is directly performed by the requester, and the dossier is complete. The written request sent to the General Department of Customs must specify the suggestion and the grounds for such suggestion.

The dossier and result must be updated on the value database of the customs office.

b.2/ The General Department of Customs shall check the dossier and written request of the Customs Department, and:

b.2.1/ The General Director of Customs shall issue a written notification of the result of prior determination of value (form No. 05/TB-XDTTG/2013 in Appendix III to this Circular) within 25 working days (in an ordinary case) or within 90 working days (if the case is complicated and needs verification).after receiving a complete dossier from the Customs Department. The written notification of the result of prior determination of value must be sent to the requester, the Customs Department, updated on the database of the customs office, and posted on the website of the General Department of Customs.

b.2.2/ While processing the dossier of request for prior determination of value, if finding any information or documents unclear, the General Department of Customs may request the requester to hold a meeting. If finding any information insufficient or grounds inadequate, within 5 working days after receiving a complete dossier from the Customs Department, the General Department of Customs shall request in writing the requester to provide additional information or documents.

The time limit for processing a dossier of request for prior determination of value is counted from the date the General Department of Customs receives sufficient information and documents additionally provided by the requester.

b.2.3/ If verification must be carried out at a foreign competent agency, the time limit for verification complies with the agreement signed with the foreign country. In this case, the time limit for processing the dossier of request for prior determination of value starts on the date the General Department of Customs receives the verification result.

4. Validity of the written notification of the result of prior determination of value

a/ A written notification of the result of prior determination of value is invalid if the actual goods being exported or imported are not consistent with the goods stated in the dossier, or the dossier of request for prior determination of value is inconsistent with the dossier of actual importation or exportation or is changed.

b/ Validity of the written notification of the result of prior determination of value:

b.1/ In case of prior determination of methods of determining taxable value: The written notification is valid for related transactions for no more than 3 years from the date it is signed by the General Director of Customs;

b.2/ In case of prior determination of prices: The written notification is valid directly for the shipments that need prior determination of prices.

c/ When a written notification of the result of prior determination of value expires, and if the information, documents and grounds for issuing the written notification are not changed, the General Director of Customs shall consider and grant an extension of the notification at the request of the organization or individual concerned;

d/ The General Director of Customs may modify or replace a written notification of the result of value in writing (form No. 06/TT-XDTTG/2013 in Appendix III to this Circular) when the written notification is found improper. The amendment or document replacing the written notification becomes valid on the date of its issuance.

dd/ A written notification of the result of prior determination of value expires when the legal provisions serving as the grounds for its issuance are changed. The expiration date is the date on which the amendments to the legal provisions serving as the grounds for issuing the written notification take effect.

e/ The General Director of Customs shall issue a document to cancel a written notification of the result of prior determination of value if the dossier of request for prior determination of value is found inaccurate or untruthful.

5. The written notification of the result of prior determination of value serves as a basis for making the taxable value declaration and is submitted (1 copy) together with the customs dossier when the customs procedures are carried out.

6. If disagreeing with the written notification of the result of prior determination of value issued by the General Director of Customs, the requester may send a written petition to the Ministry of Finance for consideration and settlement.

Article 9.Prior determination of origin

1. The prior determination of origin is applicable to imports.

2. A dossier of request for prior determination of origin comprises:

a/ The written request for prior determination of origin (form No. 07/XDXX/2013 in Appendix III to this Circular): 1 original;

b/ The manifest of raw materials and materials used for the production of goods specifying names, headings of goods, origin of raw materials and materials used for the products, CIF prices or equivalent prices of raw materials and materials, made by the requester based on the information provided by the producer or exporter: 1 original;

c/ A written description of the production process or the certificate of composition analysis issued by the producer: 1 copy;

d/ The catalogs or photos of the goods: 1 copy each;

dd/ Goods samples if requested by the General Department of Customs.

3. Procedures for prior determination of origin:

a/ The requester shall:

a/ Fully fill in the form of written request for prior determination of origin (form No. 07/XDXX/2013 in Appendix III to this Circular);

a.2/ Submit a complete dossier of request for prior determination of origin as specified in Clause 2 of this Article to the Customs Department where the requester intends to carry out customs procedures at least 90 days before the date of importation;

a.3/ Provide additional information and documents to clarify the dossier of request to the Customs Department or the General Department of Customs at the latter’s request;

a.4/ Send a written notification to the Customs Department or the General Department of Customs within 10 days if any change is made to the dossier of request, specifying the date of change.

b/ For the customs office:

Based on the laws, goods classification database and the dossier of request for prior determination of origin:

b.1/ The Customs Department shall check the dossier and:

b.1.1/ If the dossier of request for prior determination of origin or information therein is incomplete, within 5 working days after receiving the dossier, request in writing the requester to provide additional information, evidence and documents;

b.1.2/ If the dossier of request for prior determination of origin is complete, within 5 working days after receiving the dossier, send a written request together with the dossier to the General Department of Customs for consideration and settlement;

b.1.3/ When carrying out the customs procedures for imports, check and compare information on the document on prior determination of origin with the dossier and the actual imports. If the imports are inconsistent with the written notification of prior determination of origin, the Customs Department shall report it to the General Department of Customs for issuing a document to cancel the written notification of prior determination of origin under the guidance at Point b, Clause 4 of this Article, and inspect and determine the origin as prescribed at Point e, Clause 2, Article 16 of this Circular.

b.2/ The General Department of Customs shall check the dossier and written request of the Customs Department, and:

b.2.1/ The General Director of Customs shall issue a written notification of prior determination of origin (form No. 08/TBXDXX/2013 in Appendix III to this Circular) within 25 working days (for ordinary goods) or within 90 working days (if verification of information about the producer, market, origin of raw and auxiliary materials, geographical characteristics, production technology, assessment/analysis and classification is needed) after receiving a complete dossier from by the Customs Department. The written notification of prior determination of origin must be sent to the requester and the Customs Department, concurrently updated on the database of the customs office and posted on the website of the General Department of Customs;

b.2.2/ While processing a dossier of request for prior determination of origin sent from the Customs Department, if the grounds and information for prior determination of origin are insufficient, or goods samples are necessary for prior determination of origin, within 5 working days after receiving the dossier, the General Department of Customs shall request in writing the requester to provide additional information, documents or goods samples according to regulations.

The time limit for processing a dossier or request for prior determination of origin is counted from the date the General Department of Customs receives additional documents.

b.2.3/ If verification must be carried out at a foreign competent agency, the time limit for processing the dossier for prior determination of origin complies with relevant treaties;

b.2.4/ If the requester for prior determination of origin fails to provide sufficient information, the General Department of Customs shall reject the prior determination of origin and send a written notification (form No. 09/CDHL-XDXX/2013 in Appendix III to this Circular).

4. Validity of a written notification of prior determination of origin:

a/ A written notification of prior determination of origin of imports is valid for no more than 3 years from the date of its signing by the General Director of Customs, and only be applied to the goods concerned and the same producer and exporter.

b/ Cancellation of a written notification of prior determination of origin:

The General Director of Customs shall issue a document to invalidate a written notification of prior determination of origin in one of the following cases:

b.1/ Relevant legal documents are supplemented and amended;

b.2/ The factors for assessing the origin of goods are changed;

b.3/ The result of prior determination of origin and actual origin of goods are inconsistent;

b.4/ The requester provides false information.

5. Use of a written notification of prior determination of origin:

b/ A written notification of prior determination of origin serves as a basis for declaring origin and carrying out customs procedures.

b/ A written notification of prior determination of origin is not valid for claiming special preferential duty rates.

The prior determination of origin and application of special preferential duty rates for goods imported under Free Trade Agreements to which Vietnam is a signatory comply with such agreements.

6. If disagreeing with the written notification of prior determination of origin issued by the General Director of Customs, the requester may send a petition to the Ministry of Finance for consideration and settlement.

Article 10.Checking of goods before customs declaration

The checking of goods before customs declaration according to Point b, Clause 1, Article 23 of the Customs Law must be carried out as follows:

1. The goods owner shall send a written request for checking goods before carrying out customs procedures to the goods holder, and concurrently notify the customs branch for supervision.

2. The goods checking must be approved by the goods holder and under the supervision of the customs office.

3. When checking the goods, the goods holder shall make a written record of certification to be certified by the goods holder, goods owner and supervising customs officer. Each party shall keep 1 copy.

4. After the goods owner checks the goods, the customs officer shall seal the goods. If goods cannot be sealed, the written record of certification mentioned in Clause 3 of this Article must clearly describe the state of the goods and state that the goods holder is responsible for protecting the original state of the goods.

Article 11.Customs declaration

1. Customs declaration (including tax declaration while carrying out customs procedures) must be made on the form issued by the Ministry of Finance.

2. Goods imported and exported in different forms must be declared on separate corresponding declarations.

3. For imports, customs declaration must be made within 30 days after the goods arrive at the border gate. The arrival date of goods at the border gate is the date shown on the customs mark appended on the manifest of imports at the unloading port in the dossier of the means of transport on entry (by sea, air or railway) or the date written on the declaration of the means of transport moving through the border gate, on the book for monitoring means of transport (by river or road).

4. Customs declaration of goods under multiple contracts/orders

a/ Imports that have multiple contracts/orders, one or multiple invoices of the same seller, the same delivery conditions, the same method of payment, are delivered at the same time, and have the same bill of lading must be declared on the same customs declaration;

b/ Exports that have multiple contracts/orders, the same delivery conditions, the same method of payment, are sold to the same customer and delivered at the same time must be declared on the same customs declaration.

c/ When making customs declaration, customs declarants shall fully write the numbers and dates of contracts/orders on the customs declarations. If the declaration form is not large enough, a list thereof must be made and enclosed therewith. Only the total amount goods of all contracts/orders must be written on the declaration.

5. For goods that are imported in multiple forms, have the same bill of lading, commercial invoice, are stated on separate declarations corresponding to each form, the original documents must be enclosed to one of these customs declaration while the documents enclosed with other customs declarations are copies clearly show the words ”The originals are attached to customs declaration No. … dated …“

6. If imports and exports are eligible for tax reductions and/or special preferential duty rates, the original duty rate before reduction, the reduction rate and/or special preferential duty rate, and the documents regulating these issues must be specified.

7. Responsibilities of declarants and taxpayers for making customs declaration and using goods according to declared purposes:

a/ To fully, accurately and honestly fill in the declaration and documents to be presented and submitted as prescribed by law, specifying the grounds for tax calculation or tax exemption, consideration of tax exemption, reduction, refund and non-collection with regard to import duty, export duty, excise tax, value-added tax, environmental protection tax (except the declaration of tax rates and payable tax amounts for goods that are not subject to tax);

a/ To calculate tax amounts payable, exempted, considered for exemption, reduction, refund and non-collection with regard to import duty, export duty, excise tax, value-added tax, environmental protection tax in accordance with law, and take responsibility before law for such calculation; and declare the tax amount payable on a remittance bill for all taxes on the customs declaration.

8. If imports or exports have been declared to be not subject to import duty, export duty, excise tax, value-added tax, environmental protection tax, or eligible for exemption from or consideration of exemption from import duty or export duty, or preferential tax rates, special preferential tax rates, tariff quota-based tax rates, and they have been treated according to declaration but then the objects of tax exemption or the purposes eligible for tax exemption, preferential or special preferential tax rates, tariff  quota-based tax rates are changed, or the goods being materials and supplies imported for export production or the goods temporarily imported for re-export are sold on the domestic market:

a/ The taxpayer shall issue a written notification of the quantity, quality, types, headings, values and origins of the goods that are expected to be used for other purposes or be sold on the domestic market;

b/ Within 10 days from the date of receiving the written request for permission for change of use purpose or for domestic sale, the customs office shall make a written response;

After the customs office approves the change of use purpose or domestic sale, the taxpayer shall declare and pay tax under Clause 1, Article 96 of this Circular on a new customs declaration.

c/ If the taxpayer is found to have changed the use purpose or sold goods on the domestic market without declaring or paying tax to the customs office, the taxpayer shall pay the tax assessed according to the initial import declaration and pay fines according to current regulations. The taxpayer shall pay the tax arrears, late payment interests and fines (if any) under the decision of the customs office.

9. The conditions and procedure for changing use purpose or selling goods on the domestic market mentioned in Clause 8 of this Article comply with Articles 39, 41, 43, 46, 52, 53, and 55 of this Circular.

Article 12.Customs dossiers

1. When carrying out the customs procedures for exporting goods, the customs declarant shall submit to the customs office a customs dossier comprising:

a/ The customs declaration: 2 originals;

b/ The purchase and sale contract, export entrustment contract (if the export is entrusted), for exports subject to export duty, exports eligible for tax refund or non-collection and goods for which the time of submission of customs dossiers is related to export contracts: 1 copy;

c/ The export invoice, for exports subject to export duty: 1 copy;

d/ The manifest of goods, for goods of multiple categories or different packages;

dd/ In the specific cases below, the customs declarant may need to additionally submit or present:

dd.1/ The export permit, for goods which must have an export permit as prescribed by law: 1 original if goods are exported all at once, or 1 copy enclosed with the original for comparison if goods are exported several times, and a reconciliation monitoring slip;

dd.2/ Other documents requested by related ministries and agencies;

dd.3/ If goods are eligible for export duty exemption, in addition to the above documents, the following documents are also needed:

dd.3.1/ The notice of successful bid or contractor appointment enclosed with the goods supply contract specifying the successful bid or supply prices exclusive of export duty (if the bidder wins an export contract); the entrusted export contract specifying the supply prices exclusive of export duty (if the export is entrusted): 1 copy. The original must be presented for comparison in the first exportation at the customs branch where the export procedures are carried out;

dd.3.2/ Other papers proving that the exports are eligible for duty exemption: To submit 1 copy and present the original;

dd.4/ The written notification of prior determination of headings or customs value (if any): 1 copy.

2. When carrying out the customs procedures for exports, the customs declarant shall submit to the customs office a customs dossier comprising:

a/ The customs declaration: 2 originals;

b/ The purchase and sale contract: 1 copy;

c/ The commercial invoice: 1 copy;

d/ The manifest of goods: 1 copy if the goods are of multiple categories or different packages;

dd/ The bill of lading or other transport documents of equivalent validity as prescribed by law (except for the goods mentioned in Clause 7, Article 6 of this Circular, goods traded between non-tariff zones and the inland, imports in luggage of persons on entry): 1 copy.

For goods imported by international post, if the bill of lading is not available, the customs declarant shall write the number of the postal package or parcel on the customs declaration, or submit the list of postal packages or parcels made by the post office.

If goods imported for petroleum exploration and exploitation are loaded onto service ships (not commercial ships), the cargo manifest must be submitted instead of the bill of lading.

e/ In the specific cases below, the customs declarant shall additionally submit or present:

e.1/ The certificate of inspection registration or the notice of exemption from inspection or the notice of inspection result of a technical organization appointed to conduct quality inspection, a food safety inspection agency or a quarantine agency, for imports on the list of products and goods that must undergo quality inspection, food safety inspection or animal or plant quarantine: 1 original;

e.2/ The certificate of assessment, for goods are granted customs clearance based on assessment results: 1 original;

e.3/ The declaration of import value, for goods subject to value declaration according to the Minister of Finance’s Decision No. 30/2008/QD-BTC of May 21, 2008, issuing declaration forms of dutiable values of imports and exports and guiding declaration, and Circular No. 182/2012/TT-BTC of October 25, 2012, amending and supplementing a number provisions of Decision No. 30/2008/QD-BTC: 2 originals;

e.4/ The import permit, for goods which must have an import permit; the tariff quota-based import permit as prescribed by law: 1 original, if goods are imported all at once, or a copy enclosed with the original for comparison if goods are imported many times, and a reconciliation monitoring slip;

e.5/ The certificate of origin (C/O): To submit 1 original in the following cases:

e.5.1/ The goods made in a country or group of countries that conclude an agreement on application of special preferential duty rates to Vietnam (except imports of which the FOB price does not exceed USD 200) in accordance with Vietnamese law and treaties to which Vietnam is a contracting party, if the importer wishes to enjoy such preferences;

e.5.2/ The goods that are imported from countries that pose threats to social safety, community health or environmental sanitation, and need to be controlled;

e.5.3/ The goods that are imported from countries applying anti-dumping tax, anti-subsidy tax, anti-discrimination tax, safeguarding tax, or tariff quota-based tax rates;

e.5.4/  The imported goods that must comply with the regulations on import management in accordance with Vietnamese law or bilateral or multilateral treaties to which Vietnam is a contracting party.

The C/O submitted to the customs office must be free of any modification or replaced, unless it is modified or replaced by the very issuing agency or organization within a time limit prescribed by law.

e.6/ The goods eligible for import duty exemption mentioned in Article 100 of this Circular must have:

 e.6.1/ The list of duty-free goods enclosed with the reconciliation monitoring slip registered with the customs office, if the list registration is mandatory according to the guidance in Clause 1, Article 101 of this Circular: To submit 1 copy enclosed with the original for comparison;

e.6.2/ The notice of successful bid or contractor appointment enclosed with the goods sale contract or goods supply contract that specifies the successful bid or supply prices exclusive of import duty (if the requester wins an import contract); the import entrustment contract, the service provision contract that specifies the sale prices exclusive of import duty (if the import or service provision is entrusted); the financial  lease contract (if the financial lease company imports machinery, equipment or means of transport for financial lease to projects eligible for investment incentives): To submit 1 copy. The original must be presented at the first importation for comparison at the customs branch where the import procedures are carried out;

e.6.3/ The paper on the transfer of goods eligible for duty exemption if the goods of an entity eligible for duty exemption are transferred to another entity eligible for duty exemption: To submit 1 copy;

e.6.4/ The certificate of eligibility for duty-free shop business, if the goods are imported and sold at duty-free shops: To submit 1 copy;

e.6.5/ Other papers proving the eligibility for duty exemption for the imports;

e.7/ The declaration of non-refundable aid certification by a finance agency according to the Ministry of Finance’s Circular No. 225/2010/TT-BTC of December 31, 2010, on financial state management of foreign non-refundable aid classified as state budget revenues, if the goods are non-refundable aid that is not subject to import duty, excise tax and value-added tax: To submit 1 original;

If the owner or contractor of a project funded with non-refundable ODA is not subject to import duty, export duty, value-added tax or excise tax according to tax laws, it must have a notice of successful bid or contractor appointment together with the goods supply contract that specifies the successful bid or sale prices exclusive of import duty, value-added tax and excise tax (if the requester wins an import contract); the import entrustment contract that specifies the sale prices exclusive of import duty, value-added tax and excise tax: To submit 1 copy and present the original for comparison.

e.8/ The notice of successful bid or contractor appointment enclosed with the contract on sale of goods to export processing enterprises in accordance with the bidding result or goods supply contract, which specifies the successful bid or supply prices exclusive of import duty, excise tax or value-added tax on goods that are not subject to import duty, excise tax or value-added tax (if any) imported by the contractors to serve the construction of workshops and offices of export processing enterprises.

e.9/ The certificate of animal breed or plant variety trading registration issued by a state management agency, for animal breeds or plant varieties not subject to value-added tax: To submit 1 copy and present the original for comparison;

e.10/ For the goods not subject to value-added tax being machinery, equipment and  supplies that cannot be manufactured at home and need to be imported to directly serve scientific research and technology development; machinery, equipment, spare parts, specialized means of transport and supplies that cannot be manufactured at home and need to be imported to serve petroleum exploration and exploitation and oil and gas well development; aircraft, oil rigs and ships that cannot be manufactured at home and need to be imported to form fixed assets of enterprises or to be hired from abroad to serve production and business or lease back, they must have:

e.10.1/ The notice of successful bid or contractor appointment and the sale contract or goods supply contract or service provision contract (which specifies the payment exclusive of import duty) if the goods are not subject to value-added tax and imported by the bid winner or appointed contractor or service provider: To submit 1 copy. The original must be presented at the first importation for comparison at the customs branch where the import procedures are carried out;

e.10.2/ The import entrustment contract that specifies the supply prices exclusive of valued added tax (if the import is entrusted): to submit 1 copy and present the original for comparison;

e.10.3/ The document of a competent agency that assigns other organizations to implement scientific research and technology development programs or projects, or the science and technology contract between the order-placing and order-accepting parties, enclosed with a written certification of the representative of the enterprise or the head of the scientific research agency, and the commitment to directly use the imports for scientific research and technology development, if the imports are used to serve scientific research and technology development: To submit 1 original;

e.10.4/ The certification and commitment made by the representative of the enterprise to use machinery, equipment, spare parts and specialized means of transport that cannot be manufactured at home and need to be imported to serve oil and gas exploration, exploitation and development: To submit 1 original;

e.10.5/ The certification and commitment of the representative of the enterprise to use the aircraft, oil rigs and ships that cannot be manufactured at home and need to be imported to form fixed assets of the enterprise or to hired from abroad to serve production and business or for lease: To submit 1 original;

e.10.6/ The lease contract signed with a foreign party, in case of leasing aircraft, oil rigs or ships that cannot be manufactured at home to serve production and business or for lease: To submit 1 original;

e.11/ The certificate of goods imported to directly serve national defense or security issued by the Ministry of National Defense or the Ministry of Public Security respectively, if the imported goods are weapons or military equipment directly serving national defense and security and are not subject to value-added tax: To submit 1 original;

e.12/ For the application of 5% tax rate to specialized equipment and instruments serving teaching, scientific research and experiments, it is required to have:

a.12.1/ The notice of successful bid or contractor appointment or sale contracts signed with schools or research institutes according to bidding results, or goods supply contract or service provision contract: To submit 1 copy. The original must be presented at the first importation for comparison at the customs branch where the import procedures are carried out;

e.12.2/ The commitments made by the schools or research institutes to use the specialized equipment and instruments for teaching, scientific research and experiments at the schools or institutes: To submit 1 original;

e.13/ The written notification of prior determination of headings, customs value or origin (if any): 1 copy;

e.14/ Other relevant documents as prescribed by law depending on each type of  goods: To submit 1 original.

Article 13.Customs declaration registration

1. Places to register declarations

Declarations of imports or exports must be registered at the border-gate or outside-border gate customs branches, specifically:

a/ If the goods are not carried to another border gate, the customs declarations must be registered at the customs branch in charge of the goods depot at the border gate or port of destination;

b/ If the goods are carried to another border gate, the customs declarations must be registered either at the customs branch in charge of the goods depot at the border gate or the customs branch of the locality to which goods are carried;

c/ For the goods imported or exported in certain particular forms, the declarations must be registered at corresponding places as specified in this Circular.

This provision is also applicable to electronic customs procedures prescribed in the Ministry of Finance’s Circular No. 196/2012/TT-BTC of November 15, 2012.

2. Conditions and time for registering customs declarations

Declarations must be registered right after the customs declarant fills in and submits the complete customs dossier as prescribed and the customs office checks the conditions for registering customs declarations, including:

a/ Inspecting the conditions for taking coercive measures or suspending customs procedures;

b/ Inspecting the adequacy and validity of declared information and documents in the customs dossier;

c/ Inspecting the compliance with the management regime and policies and tax policies applicable to imports and exports.

If the conditions for registering declarations are satisfied, the customs officer shall issue a declaration registration number and update it on the system. If the conditions for registering declarations are not satisfied, the customs officer notifies in writing the reason to the customs declarant.

Article 14.Modification of customs declarations and additional declaration of customs dossiers

1. The modification of customs declarations and additional declaration of customs dossiers may be made in the following cases:

a/ The modification or additional declaration is made before the physical inspection of goods or before the decision on exemption from physical inspection of goods is made according to Clause 3, Article 9 of Decree No. 154/2005/ND-CP;

b/ The additional declaration of customs dossiers is made after the customs office decides on customs clearance or release of goods or transport of goods to storage when the following conditions are satisfied:

b.1/ The errors in the declared information are found and reported to the customs office by the taxpayer or customs declarant;

b.2/ The errors are reported within 60 days from the date the customs declaration is registered, but before the customs office carries out tax examination or inspection at the office of the taxpayer;

b.3/ The customs declarant or taxpayer provides adequate evidence, and the customs office has sufficient grounds and conditions for verifying the truthfulness, accuracy and legality of the additional declaration;

b.4/ The additional declaration does not affect the application of policies on management of imports and exports to the goods additionally declared.

2. Contents of modification or additional declaration:

a/ Additional declaration of information for use as grounds for determining factors and bases for tax calculation or identifying duty-free goods, goods eligible for tax exemption, reduction, refund or non-collection;

b/ Additional declaration of tax amounts payable, paid tax amounts, tax arrears or overpaid tax amounts (if any), interest on late payment of additionally declared tax amounts (if the taxpayer has paid the additionally declared tax amount after the tax payment deadline) on each goods item and for the whole customs declaration; commitment on the accuracy and legality of documents for additional declaration;

c/ Modification and additional declaration of other information on the customs declaration.

3. A dossier of request for modification or additional declaration comprises:

a/ The document on modification or additional declaration (form No. 10/KBS/2013 in Appendix III to this Circular): To submit 2 originals;

b/ Other papers supporting the modification or additional declaration.

4. Processing of dossiers of request for modification or additional declaration:

a/ The customs declarant shall:

a.1/ Truthfully declare accurate and sufficient factors and grounds for additional declaration in the document on modification or additional declaration;

a.2/ Calculate the additionally declared tax amount and late payment interest (if any);

a.3/ Submit a complete dossier to the customs office within the time limit for making modification and additional declaration according to Article 34 of the Law on Tax Administration and Clause 2, Article 22 of the Customs Law;

a.4/ Comply with the requirements of the customs office written on the document on modification or additional declaration;

a.5/ If the additional declaration leads to an increase of the payable tax amount, the taxpayer shall pay it and the late payment interest (if any) as prescribed;

a.6/ If the additional declaration leads to a decrease of the payable tax amount, the taxpayer may request the customs office to which the additional declaration is submitted to handle the overpaid tax amount as guided in Article 26 of this Circular.

b/ The customs office shall:

b.1/ Write the date and hour of receipt of the dossier of request for modification or additional declaration in the case mentioned at Point a, Clause 2, Article 34 of the Law on Tax Administration, and Clause 2, Article 22 of the Customs Law. Write the date of receipt of the dossier of request for additional declaration in the case mentioned at Point b, Clause 2, Article 34 of the Law on Tax Administration;

b.2/ Check the completeness and accuracy of the dossier of request for modification or additional declaration, write the checking result on the document on modification or additional declaration, return 1 copy to the customs declarant and keep 1 copy;

b.3/ Notify the result of checking of the dossier of request for modification or additional declaration within:

b.3.1/ Eight working hours after receiving a complete dossier, if such modification or additional declaration is made before the customs office conducts physical inspection of goods or makes a decision on physical inspection exemption;

b.3.2/ Five working days after receiving a complete dossier, if the additional declaration is made within 60 days from the date the customs declaration is registered and before the customs office conducts tax examination or inspection at the office of the taxpayer.

5. In case the customs declarant or taxpayer finds errors in the submitted customs dossier and report them before the customs office conducts tax examination and inspection at its/his/her office, after 60 days from the date on which the customs declaration is registered, but the customs declarant or taxpayer provides sufficient evidence and the customs office has sufficient grounds and conditions for verifying the accuracy and legality of the declaration, then:

a/ The customs declarant or taxpayer shall make the declaration as in the case of additional declaration guided in Clauses 2 and 3, and at Point a, Clause 4 of this Article, pay the tax arrears and late payment interest calculated from the tax payment deadline specified on the original declaration to the time of actual tax payment, and comply with the customs office’s decision on sanctioning of administrative violations;

b/ The customs office shall receive and check the declaration dossier made by the customs declarant or taxpayer as in the case of additional declaration guided at Point b, Clause 4 of this Article; impose administrative sanctions as prescribed and write the sanctions on the document on additional declaration. If the paid tax amount is higher than the payable tax amount, the customs office shall refund the overpaid tax amount as prescribed in Article 26 of this Circular.

Article 15.Replacement of customs declarations

Customs declarations may only be replaced when the form of exportation or importation is changed, and before the physical inspection of goods is made or before the decision on physical inspection exemption is issued. The customs procedures are as follows:

1. The customs declarant shall send a document explaining the request for replacement of the customs declaration to the customs branch with which the declaration has been registered;

2. The head of the customs branch with which the declaration has been registered shall consider the reason and explanation provided by the customs declarant; if seeing that the explanation is reasonable and detecting no signs of trade fraud, accept the request and assign a customs officer to:

a/ Withdraw the registered customs declaration;

b/ Cancel the registered declaration by crossing it with a red-ink pen, sign and append the officer’s seal to both cancelled declarations;

c/ Register a new customs declaration. The new customs dossier comprises the new customs declaration, the documents of the goods and the cancelled customs declaration;

d/ Take a note on the system: This declaration has been cancelled and replaced with declaration No. … dated … ;

e/ Keep and file the cancelled customs declaration and the written request for replacement of the declaration made by the customs declarant in the cardinal order of registration of customs declarations.

Article 16.Customs inspection during the process of carrying out customs procedures

1. Inspection during the process of carrying out customs procedures includes checking of customs dossiers, tax examination and physical inspection of goods.

2. Inspection during the process of carrying out customs procedure covers:

a/ Checking names and headings of goods according to the circulars of the Ministry of Finance guiding the classification of imports and exports;

b/ Inspecting goods quantity;

For the goods of which the quantity cannot be determined manually or with instruments of the customs office (such as liquid and bulk cargo, massive cargo, etc.), the customs office shall inspect based on the assessment result provided by an assessment service provider (below referred to as assessor).

c/ Inspecting goods quality:

c.1/ For the goods of which the quality cannot be determined with the instruments of the customs office for the purpose of import and export management, the customs declarant may be requested to take samples or provide technical documents (catalogue…) and together with the customs office select an assessor. The conclusion given by the assessor is binding;

c.2/ If the customs declarant and the customs office fail to select an assessor, the customs office shall select a technical organization appointed to carry out inspections serving state management or an assessor (if the technical organization makes a written refusal). The conclusion given by the technical organization or assessor is binding. The customs declarant that does not agree with such conclusion may file a complaint in accordance with law.

d/ Checking import or export permits:

For the goods in the list of imports and exports that need permits granted by state management agencies, the customs office shall register declarations and carry out customs procedures based on the import or export permits granted by state management agencies;

dd/ For the goods that must undergo quality inspection, animal, plant or medical quarantine or food safety and hygiene inspection (below referred to as specialized inspection): The customs office shall carry out customs procedures based on the certificate of specialized inspection registration or the notice of exemption from inspection or the notice of the conclusion on the satisfaction of the goods of import or export requirements granted by a specialized inspection agency;

e/ Inspecting the origin of goods based on the actual goods, customs dossier, relevant information, Article 15 of the Government’s Decree No. 19/2006/NĐ-CP of February 20, 2006, and relevant guiding documents:

e.1/ If the actual origin of imported goods is inconsistent with the declared origin but they still belong to a country or territory applying most-favored nation treatment to Vietnam, the customs office shall apply preferential tax rates as prescribed and take appropriate actions as prescribed by law, depending on the nature and seriousness of the violations;

e.2/ If doubting about the origin of goods, the customs office shall request the customs declarant to additionally provide supporting documents to prove it or request a competent authority of the exporting country to certify. Goods are not entitled to tax incentives pending the availability of the verification result, but are still granted customs clearance according to ordinary customs procedures;

e.3/ If the customs declarant submits the certificate of origin granted for the whole goods shipment but only imports part of the goods shipment, the customs office shall accept the certificate of origin for the imported part;

e.4/ If the certificate of origin is provided after the goods are released or transported to storage in order to re-calculate tax, and is accepted by the leader of the customs branch with which the declaration has been registered, the customs declarant shall make the declaration and re-calculate tax in accordance with the form of document on modification or additional declaration (form No. 10/KBS/2013 in Appendix III to this Circular);

e.5/ Inspection of the application of written notification of prior determination of origin to the goods subject to customs dossier inspection or physical inspection.

g/ Conducting tax examination, covering:

g.1/ Inspecting the conditions for taking coercive measures or applying tax payment deadlines as prescribed;

g.2/ Inspecting the grounds for identifying duty-free goods when the customs declarants declare that their goods are not subject to import duty, export duty, value- added tax, excise tax or environmental protection tax;

g.3/ Inspecting the grounds for identifying goods eligible for tax exemption or consideration of tax exemption or reduction when the customs declarants declare that their goods are eligible for tax exemption or consideration of tax exemption or reduction;

g.4/ Check the tax calculation bases used for determining payable tax amounts or calculating payable tax amounts when the imported or exported goods are subject to tax based on the inspection results mentioned at Points a, b, c and d of this Clause, the result of inspection of dutiable values according to the Ministry of Finance’s guidance on the Government’s Decree No. 40/2007/ND-CP of March 16, 2007, on customs valuation of exports and imports, and relevant grounds;

g.5/ Inspecting the application of the written notification of prior determination of headings or customs value to the goods subject to customs dossier inspection or physical inspection.

h/ For the goods temporarily imported for re-export or temporarily exported for re-import that are not sealed, when conducting customs inspection, the customs officer shall write the goods names, quantity, category, headings and origin (if any) on the physical inspection result sheet, or photograph the goods in their original state, and enclose these photos with the customs dossier. While carrying out the procedures for re-export or re-import, the customs officer shall inspect and compare the goods with their descriptions in the customs dossier of temporary import or temporary export (kept by the customs office) and certify that the goods re-exported or re-imported are consistent with those temporarily imported or exported.

3. Based on the risk analysis and assessment of the customs office, the head of the customs office that receives and processes the customs dossier shall decide the method and level of inspection as follows:

a/ Exempt the dossier inspection and physical inspection of goods;

b/ Inspect the customs dossier and exempt goods from physical inspection;

c/ Inspect the customs dossier and conduct physical inspection of goods.

4. While carrying out the customs procedures for imported or exported goods, based on the result of inspection of customs dossiers or physical inspection of goods and the new information received, the leaders of the customs branch shall decide the change of the method or level of inspection previously decided and take responsibility for such change.

5. Upon completing the physical inspection of goods, the inspecting customs officer shall write the inspection results according to the guidance provided by the General Department of Customs.

Article 17.Sampling, storage of samples of imports and exports for customs declaration; fulfillment of requirements of specialized inspection agencies; analysis or assessment for classification of imports and exports

1. Sampling of imports and exports is required in the following cases:

a/ Customs declarants or specialized inspection agencies request the sampling for customs declaration;

b/ Imports and exports must be sampled for analysis or assessment for goods classification at the request of customs offices.

2. The sampling shall be decided by heads of requesting customs offices.

3. Import and export sampling procedures

a/ Taking of samples at the request of the customs declarant or the customs office must be conducted according to the form of import or export sampling card (form No. 11/PLM/2013 in Appendix III to this Circular);

b/ Taking of samples for analysis: Samples must be taken from goods shipments which need analysis. The General Department of Customs shall specify requirements on goods samples and sampling process for analysis;

c/ Taking of samples at the request of specialized inspection agencies: Samples must be taken at border gates of importation or places where goods are transferred from other border gates;

d/ Samples must be taken in the presence of representatives of the goods owner and customs office. In case of sampling at the request of a specialized management agency, the representative of such agency is also required (in accordance with specialized laws); samples must be signed and sealed by the involved parties. Upon the handover of samples, a written record must be made and signed by involved parties.

4. Sampling techniques are guided by the General Department of Customs.

5. Storage places of import or export samples

Samples taken under Point b, Clause 1 of this Article must be stored at:

a/ The Imports and Exports Analysis and Classification Center (below referred to as the Analysis and Classification Center), for samples taken for analysis;

b/ Sampling customs offices, for samples taken for performance of other customs operations.

6. Storage duration of samples

a/ For samples stored at the Analysis and Classification Center: 90 days from the date of notification of analysis results;

b/ For samples stored at customs branches: 90 days from the date of customs clearance.

7. Objects to be analyzed and assessed and sending of requests for analysis and assessment for goods classification

a/ Subject to analysis and assessment for goods classification are import or export samples (below referred to as goods samples);

b/ Sending of requests for analysis and assessment:

b.1/ Customs offices requesting analysis shall take goods samples and send them to the Analysis and Classification Center of the General Department of Customs for analysis, for goods items which are beyond the classifying ability of the requesting customs offices and require the use of machinery and technical equipment for identification of properties and composition of samples;

b.2/ For cases in which analysis is required under Point b.1, Clause 7 of this Article but the Analysis and Classification Center of the General Department of Customs has insufficient conditions for analysis, the requesting customs offices shall send goods samples to non-business technical service organizations of line ministries or organizations providing assessment services in accordance with the Commercial Law (below referred to as assessing agencies) for assessment in accordance with law, and use assessment results of these agencies for identification of import or export goods names, headings and duty rates.

The General Department of Customs shall publicize the list of goods items which the Analysis and Classification Center is unable to analyze;

b.3/ Cases in which analysis or assessment requests are sent and analysis or assessment results are used in contravention of this Clause are not legally valid for use as grounds for goods classification.

8. Dossiers of analysis request or assessment solicitation

a/ Dossiers of analysis request:

a.1/ A dossier of analysis request must be made by the requesting customs office, appended with its seal on every two adjoining pages and sent to the Analysis and Classification Center, and comprises:

a.1.1/ A written analysis request-cum-sampling record (made according to form No. 12/PYCPT/2013 in Appendix III to this Circular), which must be made in two originals, one to be kept by the unit requesting the analysis and the other to be sent to the Analysis and Classification Center;

a.1.2/ Relevant technical documents: 1 copy;

a.1.3/ Customs declaration of the import or export requested to be analyzed. In case a physical inspection has been conducted, the declaration must clearly state customs inspection results: 1 copy;

a.1.4/ Commercial contract: 1 copy;

a.1.5/ Certificate of origin (if any): 1 copy;

a.1.6/ List of documents of the dossier: 1 original.

a.2/ In case of request for analysis for headings: Based on goods samples sent by the organization or individual requesting prior determination of headings, the Customs Department that receives the dossier of request shall make 2 written analysis requests (according to form No. 13/PYCPT-XDTMS/2013 in Appendix III to this Circular), one to be kept by the Customs Department and the other to be sent to the Analysis and Classification Center. The analysis dossier to be sent to the Analysis and Classification Center is a copy of the dossier for pre-determination of headings mentioned in Clause 2, Article 7 of this Circular.

b/ Dossiers of assessment solicitation comply with regulations on goods assessment.

9. Handover and receipt of goods samples and dossiers of request for analysis or assessment solicitation

a/ The customs office requesting analysis or soliciting assessment shall send directly or by post, or authorize in writing the customs declarant to deliver the goods sample and dossier of request or solicitation to the Analysis and Classification Center or the assessing agency.

b/ In case of solicitation of assessment for prior determination of headings, based on a notice of the customs office, the requesting organization or individual shall send the goods sample and dossier of assessment solicitation to the assessing agency.

c/ Upon receiving the goods sample and dossier of analysis request, the Analysis and Classification Center shall make a receipt of analysis request (according to form No. 14/PTNYCPT/2013 in Appendix III to this Circular). A receipt of analysis request must be made in 2 originals, one to be kept by the Analysis and Classification Center and the other to be sent to the requesting customs office.

Within 3 working days, the Analysis and Classification Center shall send the receipt of analysis request to the requesting customs office for monitoring.

d/ In case the goods sample and dossier of analysis request are improper, the Analysis and Classification Center shall notify such in writing and return the goods sample and dossier within 3 working days from the date of receipt. The requesting customs office shall receive back the dossier and goods sample for supplementation under regulations.

10. Destruction of samples and return of analyzed or assessed goods samples

a/ Destruction of analyzed goods samples:

a.1/ The Analysis and Classification Center shall carry out procedures for destruction of goods samples which have expired under regulations, goods samples likely to cause danger, deteriorated goods samples or goods samples which can no longer be stored;

a.2/ The destruction of analyzed goods samples must be decided by heads of units and recorded in writing. Sample destruction decisions and written records must be preserved under regulations on preservation of dossiers.

b/ Return of analyzed goods samples:

b.1/ In case an analysis request made by the customs office clearly requires “return of sample”, the Analysis and Classification Center shall return the sample to the customs office or the customs declarant (if the requesting customs office authorizes the customs declarant to receive the sample), for returnable samples.

b.2/ The head of the unit shall decide on the return of the preserved goods sample and take no responsibility for the quality of samples returned due to impacts of the sample analysis.

b.3/ In case of return of a goods sample during the preservation duration, the goods owner shall make a written commitment not to complain about analysis results.

b.4/ Upon the return of a goods sample, a written record of sample return must be made (according to form No. 15/BBTLMHH/2013 in Appendix III to this Circular).

c/ The return of assessed goods samples complies with the current law on goods assessment.

11. Notification of analysis and assessment results

a/ Within 10 working days after the receipt of a dossier and goods sample, the Analysis and Assessment Center shall notify in writing analysis results to the General Department of Customs (according to form No. 16/TBKQPT/2013 in Appendix III to this Circular).

In case a dossier of to-be-analyzed goods has two or more goods samples or a complicated goods sample which requires more time for analysis, within 5 working days after receiving the goods sample and dossier of to-be-analyzed goods, the Analysis and Classification Center shall notify in writing the requesting customs office of the requirement and expected time of reply. After obtaining analysis results, the Analysis and Classification Center shall notify in writing analysis results to the General Department of Customs (according to form No. 16/TBKQPT/2013 in Appendix III to this Circular), enclosed with a copy of the analysis dossier.

b/ The General Director of Customs shall issue written notices of goods classification results (according to form No. 17/TBKQPL/2013 in Appendix III to this Circular) within 10 working days after receiving analysis result notices of the Analysis and Classification Center.

Classification result notices issued by the General Director of Customs serve as a basis for determining duty rates and implementing the goods item policy to imports and exports; and must be updated on the database, posted on the website and uniformly applied within the customs sector.

12. Notification of classification results for imports and exports requiring solicited assessment under Point b.2, Clause 7 of this Article:

After receiving assessment results from the assessing agency, the customs branch shall send such results to the managing Customs Department. Based on assessment results, the director of the Customs Department shall issue a document to guide the goods classification for determination of duty rates and implementation of the goods item policy to imports and exports, and concurrently send a copy of such document to the General Department of Customs for summarization on the website of the customs sector.

13. In case customs declarants disagree with classification results of customs offices, they may lodge complaints in accordance with law.

Article 18.Supervision of imports, exports and goods in transit; and means of transport on entry, exit or in transit

1. The customs supervision of imports, exports and goods in transit; and means of transport on entry and exit or in transit complies with Article 26 of the Customs Law and Articles 13 and 14 of Decree No. 154/2005/ND-CP. In addition, this Circular additionally guides the customs supervision of imports and exports brought into or out of customs supervision areas at border gates as follows:

a/ Responsibilities of customs declarants

For imports and exports brought into or out of customs supervision areas at border gates, the customs declarant shall produce to the customs office:

a.1/ Customs declaration:

a.1.1/ For exports, the customs declaration with the customs office’s certification of completion of customs procedures;

a.1.2/ For imports, the customs declaration with the customs office’s certification of customs clearance or goods release or transportation of goods to the place of preservation; ex-warehousing bill of the warehousing enterprise;

a.2/ Imports and exports.

b/ Responsibilities of border-gate customs offices

b.1/ Border-gate customs offices shall supervise imports and exports under regulations. When detecting an import or export shipment showing signs of violation of the customs law, the head of the border-gate customs office shall decide on physical inspection of goods.

b.2/ During the supervision of imports and exports brought into or out of the border-gate area, the border-gate customs office shall:

b.2.1/ Examine the validity of the customs declaration;

b.2.2/ Examine and compare identification number of cargo containers and conditions of customs seals (if any);

b.3/ Handling of examination results

If examination results are satisfactory, the customs officer shall give certification, sign and append a seal to and return to the customs declarant:

b.3.1/ The customs declaration with the certification that “Goods have gone through the customs supervision area”, for imports and exports through sea, internal waterway, air or railway border gates;

b.3.2/ The customs declaration with the certification that “Goods have been imported/exported”, for imports and exports through land or inland waterway border gates, transshipment ports or zones;

b.3.3/ The written record of delivery of goods in border-gate transfer, for imports and exports in border-gate transfer;

b.3.4/ The manifest of goods in border-gate transfer from bonded warehouses or container freight stations (CFS) to border gates, for goods transferred from bonded warehouses/CFS to border gates of exportation.

In case examination results are unsatisfactory, on a case-by-case basis, the border-gate customs office shall guide the customs declarant to modify or supplement the above document or handle it according to current regulations.

In case the customs declaration is no longer valid for carrying out customs procedures and must be cancelled under the guidance in Clause 1, Article 31 of this Circular, the border-gate customs office shall request the customs declarant to carry out procedures for cancellation.

c/ For goods temporarily imported for re-export; and imports and exports in border-gate transfer, in addition to the documents specified at Point a, Clause 1 of this Article, the customs declarant shall produce the dossier set and the customs office shall conduct customs supervision under Articles 41 and 61 of this Circular.

2. The General Director of Customs shall specifically guide measures and duration of supervision applicable to each type of border gate and each type of imports or exports or goods in transit or means of transport on exit, entry or transit.

Article 19.Tax payment currencies

1. Taxes on imports and exports must be paid in Vietnam dong. In case of paying taxes in a foreign currency, taxpayers shall pay taxes in a freely convertible foreign currency as prescribed. Foreign currencies shall be converted into Vietnam dong at the average inter-bank exchange rate announced by the State Bank of Vietnam at the time of tax calculation.

2. In case temporary tax payment is permitted pending the availability of official taxable prices before customs clearance or goods release, taxpayers may make temporary tax payments in a foreign currency or Vietnam dong. After obtaining official taxable prices, taxpayers that receive foreign-currency payments from foreign customers shall pay tax differences (if any) in such foreign currency.

In case taxes must be paid in a foreign currency but temporary payment is made in Vietnam dong, the applicable foreign exchange rate is the average inter-bank exchange rate announced by the State Bank of Vietnam at the time of tax calculation. Such exchange rate is also uniformly applied to foreign-currency accounting between the State Treasury and customs offices.

Article 20.Tax payment time limits

Tax payment time limits for imports and exports are prescribed in Clause 3, Article 42 of the Law on Tax Administration, which is amended and supplemented in Clause 11, Article 1 of the Law No. 21/2012/QH13 Amending and Supplementing a Number of Articles of the Law on Tax Administration, and specifically guided as follows:

1. For imports being materials and supplies for export production:

a/ To be eligible for the tax payment time limit of 275 days counting from the date of customs declaration registration, a taxpayer must fully satisfy the following conditions:

a.1/ Owning an export production establishment, which is not leased in the Vietnamese territory and suitable to materials and supplies imported for export production (based on the enterprise’s commitment made according to form No. 18/CSSX-SXXK/2013 in Appendix III to this Circular). The custom office shall conduct physical inspection of the production establishment, for enterprises showing signs of risk under the guidance of the General Department of Customs;

a.2/ Having conducted import or export activities for at least 2 consecutive years by the date of customs declaration registration for the shipment of materials and supplies imported for export production and being regarded by the customs office for these two years as:

a.2.1/ Having not been handled for acts of smuggling or illegal cross-border transportation of goods;

a.2.2/ Having not been handled for tax evasion or trade fraud;

a.3/ Owing no overdue tax debts or no late payment interests or fines for imports and exports by the time of declaration registration;

a.4/ Having not been sanctioned by competent state management agencies for accounting violations within 2 consecutive years up to the date of customs declaration registration;

a.5/ Making via-bank payments for materials and supplies imported for export production. Cases of payment regarded as via-bank payment will be handled under Clause 4 of Appendix I to this Circular.

In case of import entrustment, entrusting parties must fully satisfy the above conditions and have import entrustment contracts. Entrusted parties must satisfy the conditions prescribed at Points a.2, a.3, a.4 and a.5 of this Clause.

In case a parent company imports and supplies goods to its subsidiary companies or a subsidiary company imports and supplies to its attached units or to other subsidiary companies, units attached to the parent company or the subsidiary company or other subsidiary companies must fully satisfy the above conditions. The importing parent company or subsidiary company must satisfy the conditions prescribed at Points a.2, a.3, a.4 and a.5 of this Clause and provide to the customs office where it carries out procedures a list of subsidiary companies or attached units already declared to the tax office.

b/ In case the conditions prescribed at Point a of this Clause are not fully satisfied but a credit institution guarantees the payable tax amount and the conditions prescribed in Clause 2, Article 21 of this Circular are satisfied, the tax payment time limit is the guarantee duration but must not exceed 275 days counting from the date of customs declaration registration and no late payment interest is paid during the guarantee duration.

c/ Goods being materials and supplies imported for export production, for which the tax payment time limit of 275 days has been applied or extended but which are not used for export production or one of the conditions prescribed at Point a of this Clause is detected through examination as being not satisfied or products are exported beyond the tax payment time limit, are handled as follows:

c.1/ Domestic sale of materials and supplies: Taxpayers shall fully pay taxes and late payment interests during the period from the date of registration of the original import customs declaration to the date of actual tax payment for goods domestically sold.

In case the foreign party cancels the export contract or the taxpayer has to domestically sell imports due to aforce majeureevent, the taxpayer shall declare and fully pay taxes for domestic sale and calculate late payment interests from the date of expiration of the tax payment time limit to the date of actual tax payment (for the case of domestic sale of imports beyond the tax payment time limit). The Customs Department shall base on the enterprise’s explanation to consider and handle the case.

c.2/ Re-exporting materials and supplies: Taxpayers shall calculate and pay late payment interests during the period from the date of registration of the original customs declaration to the date of actual re-export. In case the foreign party cancels the export contract for an objective reason, the taxpayer is not required to calculate and pay late payment interests. The Customs Department shall base on the enterprise’s explanation to consider and handle the case.

c.3/ Exporting products beyond the tax payment time limit: Taxpayers shall calculate and pay late payment interests during the period from the date of expiration of the tax payment time limit to the date of actual export of products or actual tax payment (whichever is earlier). In case the export is conducted beyond the prescribed time limit due to a fault of the foreign party, taxpayers are not required to calculate and pay late payment interests.

c.4/ Inspecting and detecting failure to satisfy one of the conditions prescribed at Point a of this Clause: Taxpayers shall fully pay taxes and late payment interests during the period from the date of import customs declaration registration to the date of actual tax payment and be sanctioned under regulations.

2. For temporarily imported goods for re-export

a/ Taxpayers shall pay import duty before completing customs procedures for temporarily imported goods. In case import duty has not been paid, if credit institutions provide guarantee for payable duty amounts and tax payers satisfy the conditions prescribed in Clause 2, Article 21 of this Circular, tax payers may enjoy a tax payment time limit equal to the guarantee duration but must not exceed 15 days after the expiration of the time limit for temporary import for re-export (not applicable to the extended time limit for temporary import for re-export) and are not required to pay late payment interests during the guarantee duration.

b/ In case of re-export beyond the guarantee duration, taxpayers shall pay late payment interests for the period from the date of expiration of the guarantee duration to the date of re-export or the date of actual tax payment (whichever is earlier).

c/ In case of application of the tax payment time limit equal to the guarantee duration but imported goods are domestically sold, taxpayers shall fully pay taxes and re-count the tax payment time limit for such goods and calculate late payment interests for the period from the date of completion of customs procedures for temporary import to the date of actual tax payment.

3. For goods imported or exported under Point c, Clause 3, Article 42 of the Law on Tax Administration, which is amended and supplemented in Clause 11, Article 1 of the Law Amending and Supplementing a Number of Articles of the Law on Tax Administration, taxpayers shall pay taxes before customs clearance or release of goods.

In case taxpayers obtain guarantee of credit institutions for payable tax amounts (the maximum guarantee duration is 30 days from the date of customs declaration registration) and fully satisfy the conditions prescribed in Clause 2, Article 21 of this Circular, the tax payment time limit equals the guarantee duration but taxpayers shall pay late payment interests during the guarantee duration for the period from the date of customs clearance or release of goods to the date of actual tax payment. The late payment interests comply with Article 106 of the Law Amending and Supplementing a Number of Articles of the Law on Tax Administration, and Article 131 of this Circular.

4. The tax payment time limit in some special cases, except cases of payment of tax arrears in installments under Clause 25, Article 1 of Law No. 21/2012/QH13 Amending and Supplementing a Number of Articles of the Law on Tax Administration:

a/ For imports and exports for which customs declarations are registered once for multiple import or export, the tax payment time limit complies with regulations and is applicable to each time of actual import or export;

b/ For imports and exports which are still subject to customs supervision but temporarily seized by competent state agencies for investigation and handling, the tax payment time limit for each case complies with regulations but may be counted from the date competent state agencies permit in writing the release of temporarily seized goods;

c/ For imports directly serving security and national defense which have been customs-cleared or released and identified through inspection as being ineligible for tax exemption consideration, taxpayers shall fully pay taxes, re-count the tax payment time limit and recalculate late payment interests for the period from the date of customs clearance or release to the date of actual tax payment and shall be sanctioned for violations under regulations (if any).

For imports directly serving scientific research, education and training eligible for tax exemption consideration, pending tax exemption consideration, taxpayers shall commit to abiding by final decisions of the General Director of Customs on payable tax amounts. In case goods are identified through inspection as being ineligible for tax exemption consideration, taxpayers shall fully pay taxes, re-count the tax payment time limit and recalculate late payment interests for the period from the date of customs clearance or release to the date of actual tax payment and shall be sanctioned for violations under regulations (if any).

d/ In case of declaration for additional payment of taxes, the tax payment deadline is the date of customs declaration registration (for goods being materials and supplies imported for export production) or the date of completion of customs procedures for temporary import of goods (for goods temporarily imported for re-export) or the date of customs clearance or release of goods (for other goods).

5. In case customs declarations are registered before July 1, 2013, but customs clearance or release of goods is conducted after July 1, 2013, the tax payment time limit prescribed in Clause 11, Article 1 of Law No. 21/2012/QH13 Amending and Supplementing a Number of Articles of the Law on Tax Administration is applied.

6. Tax payment time limit for assessed tax amounts

a/ For customs declarations registered from July 1, 2013, with customs offices assessing payable tax amounts, the payment deadline for assessed tax amounts is the date of customs declaration registration, for materials and supplies imported for export production. For goods temporarily imported for re-export, the payment deadline for assessed tax amounts is the date of completion of customs procedures for temporary import. For other goods, the payment deadline for assessed tax amounts is the date of customs clearance or release of goods;

b/ For customs declarations registered before July 1, 2013, with customs offices issuing decisions on tax assessment from July 1, 2013, the payment deadline for assessed tax amounts is the date of issuance of tax assessment decisions by customs offices.

7. The tax payment time limit for exported crude oil and goods subject to safeguard or anti-dumping or anti-subsidy tax complies with Point c, Clause 3, Article 42 of the Law on Tax Administration which was amended and supplemented in Clause 11, Article 1 of Law No. 21/2012/QH13 Amending and Supplementing a Number of Articles of the Law on Tax Administration. Accordingly, taxpayers shall pay taxes before customs clearance or release of goods or obtain guarantee of credit institutions. In case of obtaining guarantee of credit institutions, taxpayers shall pay late payment interests at the rate of 0.05%/day for the guarantee duration. The maximum guarantee duration is 30 days from the date of customs declaration registration. The conditions for guarantee are prescribed in Clause 2, Article 21 of this Circular.

8. Tax payment time limit in case no official prices are available at the time of customs clearance or release of goods: Taxpayers shall temporarily pay taxes at prices declared before customs clearance or release of goods or obtain guarantee of credit institutions. The conditions for guarantee are prescribed in Clause 2, Article 21 of this Circular. Taxpayers shall pay late payment interests at the rate of 0.05%/day on late paid tax amounts for the guarantee duration.

In case temporarily paid tax amounts or tax amounts guaranteed before the customs clearance or release of goods are smaller than tax amounts payable at official prices, taxpayers shall pay the difference between tax amounts payable at official prices and those at temporarily calculated prices (if any) at the time of fixing official prices but are not required to pay late payment interests on such difference. The conditions for guarantee are prescribed in Clause 2, Article 21 of this Circular.

In case temporarily paid tax amounts or tax amounts guaranteed before the customs clearance or release of goods are larger than tax amounts payable at official prices, the handling of overpaid tax amounts complies with Articles 26 and 130 of this Circular.

9. The time limit for payment of value-added tax for equipment, machinery, special-use vehicles in technology lines and construction materials which cannot be domestically produced and need to be imported to create fixed assets; imported materials for animal feed production, animal feed, fertilizers and pesticides is prescribed at Point c, Clause 3, Article 42 of the Law on Tax Administration, which was amended and supplemented in Clause 11, Article 1 of Law No. 21/2012/QH13 Amending and Supplementing a Number of Articles of the Law on Tax Administration, and Clause 2, Article 21 of this Circular.

Article 21.Guarantee for payable tax amounts

1. Guarantee for payable tax amounts may be provided in either of the following forms: single guarantee or multiple guarantee.

a/ Single guarantee means that a credit institution operating under the Law on Credit Institutions commits to make full tax payment for a single import or export declaration. Upon the expiration of the guarantee duration, if the taxpayer guaranteed by a credit institution still fails to pay taxes and late payment interests (if any), the guarantor shall fully pay taxes and interests for the taxpayer under Clause 11, Article 1 of Law No. 21/2012/QH13 Amending and Supplementing a Number of Articles of the Law on Tax Administration,  and Clause 2, Article 114 of the Law on Tax Administration.

b/ Multiple guarantee means the commitment to make full tax payment for 2 or more import or export declarations registered at one or several customs branches. Multiple guarantee may be reconciliated or restored to the original level corresponding to paid tax amounts. Multiple guarantee may be applied at several customs branches when the e-customs clearance system is organized and the single-window customs mechanism VNACCS/VCIS is applied.

Upon the expiration of the guarantee duration for each declaration, if the taxpayer guaranteed by a credit institution still fails to pay taxes and late payment interests (if any), the guarantor shall fully pay taxes and interests for the taxpayer under Clause 11, Article 1 of Law No. 21/2012/QH13 Amending and Supplementing a Number of Articles of the Law on Tax Administration, and Clause 2, Article 114 of the Law on Tax Administration.

2. Customs offices shall accept guarantee if the following conditions are fully satisfied:

a/ Conditions for a taxpayer to enjoy guarantee:

a.1/ Having an equity capital of at least VND 10 billion (as stated in the financial statement of the year preceding the year of customs declaration registration), and conducted import or export activities for at least 365 days by the date of customs declaration registration for the import or export shipment. Within 365 days before the date of customs declaration registration for the import or export shipment, the taxpayer is identified by the customs office as:

a.1.1/ Being not on the customs office’s list of taxpayers that have been handled for smuggling or illegal cross-border transportation of goods;

a.1.2/ Being not on the customs office’s list of taxpayers that have been handled for tax evasion or fraud;

a.1.3/ Having been handled no more than twice for other customs violations (including false declaration leading to decrease in payable tax amounts or increase in tax amounts to be exempted, reduced, refunded) with the fine level beyond the competence of the head of the customs branch in accordance with the Law on Handling of Administrative Violations;

a.2/ Being not on the list of taxpayers that owe overdue tax, late payment interests and fine amounts at the time of customs declaration registration.

b/ Having a letter of guarantee issued by a credit institution established and operating in accordance with the Law on Credit Institutions, clearly stating the guaranteed tax amount, guarantee duration and commitment with the concerned customs office to secure its capability and liability to pay taxes and late payment interests for the taxpayer if, upon the expiration of the guarantee duration, the taxpayer still fails to pay taxes.

3. Procedures for provision of single guarantee

a/ When carrying out procedures for an import or export shipment, the taxpayer shall submit the letter of guarantee issued by the guarantee-providing credit institution to the customs office.

b/ The letter of guarantee must have the details specified in form No. 19/TBLR/2013 in Appendix III to this Circular.

c/ The customs office shall examine the guarantee conditions as guided in Clause 2 of this Article, details of the letter of guarantee according to the set form and deal with the guarantee as follows:

c.1/ To determine the tax payment time limit according to the guarantee duration which must not exceed the time limit prescribed at Clause 3, Article 42 of the Law on Tax Administration, which was amended and supplemented in Clause 11, Article 1 of Law No. 21/2012/QH13 Amending and Supplementing a Number of Articles of the Law on Tax Administration;

c.2/ In case the guaranteed tax amount is smaller than the payable tax amount, the head of the customs branch shall decide on customs clearance for the goods volume corresponding to the guaranteed tax amount and take responsibility before law for such decision. If the taxpayer wishes to have the whole goods shipment cleared from customs procedures, he/she shall pay the difference between the guaranteed tax amount and the payable tax amount before receiving goods;

In case guaranteed imports are bulk goods or liquefied gas for which the guaranteed tax amount is smaller than the payable tax amount, the head of the customs branch shall decide on the volume of goods to be cleared from customs procedures which must not exceed the goods volume corresponding to the guaranteed tax amount.

c.3/ In case the guarantee conditions are not fully satisfied, the customs office shall notify in writing the taxpayer of the refusal of guarantee. If having doubts about the truthfulness of the letter of guarantee, the customs office may consult in writing the guarantee-providing credit institution for verification.

d/ Monitoring and handling the guarantee:

d.1/ Past the tax payment deadline, if the taxpayer still fails to fully pay the guaranteed tax amount, the guarantee-providing credit institution shall fully pay tax and late payment interest amounts (if any) for the taxpayer.

d.2/ The customs office shall monitor and urge the taxpayer and guarantee-providing credit institution to fully pay tax and late payment interest amounts into the state budget under regulations.

The customs office which detects violations committed by the guarantee-providing credit institution shall notify these violations in writing or through the electronic data system (if such a system exists) to other customs units nationwide for refusal to accept letters of guarantee of this credit institution and to functional agencies for handling under regulations.

d.3/ If both the taxpayer and guarantee-providing credit institution pay taxes and late payment interests (if any), the overpaid tax and late payment interest amounts will be refunded to the guarantee-providing credit institution.

4. Procedures applicable to multiple guarantee

a/ Before carrying out customs procedures for imports and exports, the taxpayer shall send to the customs branch with which the declaration is registered a written request for acceptance of multiple guarantee for imports, made according to form No. 20/DBLC/2013 in Appendix III to this Circular;

b/ The letter of guarantee must have the details specified in form No. 21/TBLC/2013 in Appendix III to this Circular;

c/ The customs office with which the declaration is registered shall examine the guarantee conditions guided in Clause 2 of this Article. If guarantee conditions are fully satisfied, it shall accept multiple guarantee for import or export declarations registered by the taxpayer within the guarantee duration stated in the letter of guarantee as requested by the taxpayer and determine the tax payment time limit according to the guarantee duration for each goods shipment under regulations.

In case guarantee conditions are not fully satisfied, the customs office shall notify in writing the taxpayer of the refusal of guarantee.

If having doubts about the truthfulness of the letter of guarantee, the customs office may consult in writing the guarantee-providing credit institution for verification and handling under regulations.

d/ The case in which the remaining guarantee amount is smaller than the payable tax amount shall be handled under Point c.2, Clause 3 of this Article;

dd/ The monitoring and handling of guarantee must be carried out under Point d, Clause 3 of this Article and reconciliation must be made to ensure that the each guaranteed tax amount is smaller than or equal to the balance of the multiple guarantee and the guarantee level is restored corresponding to the paid tax amount of the declaration using guarantee. The remaining level of the letter of guarantee is based on the initial level of the letter of guarantee minus (-) the guaranteed tax amount plus (+) the tax amount remitted into the state budget for declarations under multiple guarantee;

e/ In case the guarantee-providing credit institution requests in writing the cancellation of multiple guarantee: Upon receiving such written request, the customs office shall immediately stop the use of the multiple guarantee on the condition that tax, late payment interest and fine amounts (if any) of declarations under such multiple guarantee have been fully paid into the state budget.

5. In case tax guarantee is provided electronically by commercial banks that have signed agreements on coordination in tax collection with the General Department of Customs: Upon receiving information on tax amounts guaranteed by commercial banks via the e-payment system on the e-payment portal of the General Department of Customs, the customs office shall update such information in the database of the General Department of Customs and accept the clearance of goods. The monitoring and handling of guarantee comply with Point d, Clause 3 and Point dd, Clause 4 of this Article.

Article 22.Places and methods of tax payment

1. Taxpayers shall pay taxes, late payment interests and fines and other charges for imports and exports directly to the State Treasury or into collection accounts of customs offices at commercial banks or via commercial banks, other credit institutions and service organizations specified in Clause 1, Article 26 of Decree No. 83/2013/ND-CP.

2. In case taxpayers pay taxes, late payment interests and fines and other charges in cash but there is no tax collection counter of the State Treasury at customs clearance places, customs offices with which customs declarations are registered shall collect taxes from taxpayers and transfer the whole collected tax amounts to the State Treasury under regulations.

3. In case taxpayers still owe tax or fine arrears to other customs offices at the time of customs declaration registration and wish to pay these arrears at customs offices which are carrying out customs procedures, taxpayers shall make declaration and remit money to the tax collection counter of the State Treasury or to the customs offices which are carrying out customs procedures (if there is no tax collection counter of the State Treasury).

4. The State Treasury, credit institutions and service organizations shall issue papers on remittance into the state budget to taxpayers according to a form set by the Ministry of Finance.

Customs offices shall issue receipts to taxpayers, made according to a form set by the Ministry of Finance, in case of collecting taxes in cash. In case a customs branch collects taxes for others, it shall fax tax receipts to customs branches to which enterprises owe tax arrears for the latter to make a document to designate the collection and handling of tax arrears under regulations.

5. Customs offices shall open collection accounts for tax and late payment interest amounts and other charges for imports and exports at commercial banks that have signed agreements on coordination in tax collection with the General Department of Customs. After completing procedures for collecting money from taxpayers for remittance into collection accounts of customs offices, commercial banks shall summarize and transmit information and data on collected state budget revenue amounts to customs offices and the State Treasury and carry out steps in the process of coordination in state budget revenue collection among the State Treasury, the General Department of Taxation, the General Department of Customs and commercial banks. Upon receiving information on remitted money amounts from collection accounts at commercial banks, customs offices shall update such information in the accounting system and liquidate tax arrears for taxpayers.

In case taxpayers pay taxes directly to customs offices, the State Treasury, credit institutions and service organizations (not yet connected with the tax e-payment system), within 8 working hours after collecting tax from taxpayers, customs offices, the State Treasury, credit institutions and service organizations shall transfer collected tax amounts into customs offices’ state budget revenue collection accounts or deposit accounts at the State Treasury, with regard to tax amounts on materials and supplies imported for export production, goods temporarily imported for re-export and goods temporarily exported for re-import, or remit these tax amounts to the State Treasury as for other cases.

For taxes collected in cash in deep-lying and remote areas, islands and areas difficult to access, the above time limit is 5 working days after taxes are collected from taxpayers.

For tax amounts already remitted into customs offices’ deposit accounts at the State Treasury, past 135 days from the date of actual tax collection, if taxpayers still fail to submit finalization dossiers, customs offices shall carry out procedures to transfer these amounts into the state budget under regulations.

Article 23.Tax payment for goods subject to assessment, analysis or classification

When necessary to assess, analyze or classify goods in terms of technical standards or goods quality, quantity and category (identifying goods appellations and tariff headings, quality, quantity, technical standards, and the current state of imports) to ensure accurate tax calculation, taxpayers shall still pay taxes under Clause 1, Article 28 of this Circular.

If goods assessment, analysis or classification results are different from taxpayers’ declarations, leading to a change in payable tax amounts, customs offices shall assess tax amounts for taxpayers to pay according to assessment, analysis or classification results and the time limit for payment of the difference between payable tax amounts and declared tax amounts for each category of goods is prescribed in Clause 11, Article 1 of Law No. 21/2012/QH13 Amending and Supplementing a Number of Articles of the Law on Tax Administration.

Article 24.Order of tax and late payment interest and fine payment

1. The order of tax and late payment interest and fine payment applies to due tax, late payment and fine amounts and complies with Article 45 of the Law on Tax Administration, which was amended and supplemented in Clause 12, Article 1 of Law No. 21/2012/QH13, Amending and Supplementing a Number of Articles of the Law on Tax Administration.

a/ Tax arrears and overdue late payment interest amounts subject to coercive measures are those overdue for more than 90 days after the tax payment deadline;

b/ Tax arrears and overdue late payment interest amounts not yet subject to coercive measures are those overdue for 90 days or less after the tax payment deadline.

2. The State Treasury and customs offices shall share information on tax and late payment interest and fine collection in order to determine the order of collection and collect taxes in the prescribed order, specifically as follows:

a/ Customs offices shall monitor tax arrears of taxpayers, guide taxpayers to pay taxes in the prescribed order and develop a data system for reference by taxpayers to pay taxes in the prescribed order;

b/ Based on tax and late payment interest and fine payment documents of taxpayers, the State Treasury shall account these amounts as state budget revenues and transfer the documents and provide detailed information on paid amounts to customs offices for monitoring and management;

c/ In case taxpayers pay taxes and late payment interests and fines in contravention of the prescribed order, customs offices shall make and send an order on adjustment of collected tax amounts to the State Treasury for adjustment and, at the same time, notify taxpayers of adjusted tax and fine amounts; or request taxpayers to pay taxes and late payment interests and fines in the prescribed payment order. Imports and exports under new import or export declarations may be cleared from customs procedures only when taxpayers owe no overdue tax and fine amounts;

d/ In case taxpayers do not clearly write on tax payment documents the amount of each tax or late payment interest or fine, customs offices shall account collected tax and fine amounts in the prescribed order and, at the same time, notify the State Treasury thereof for the latter to account them as state budget revenues and inform such to taxpayers.

Article 25.Tax assessment

1. Tax assessment under the guidance of this Circular means that customs offices exercise their powers to identify tax calculation factors and tax bases, calculate tax and notify and request taxpayers to pay tax amounts determined by customs offices in the cases specified in Clause 2 of this Article.

2. Customs offices shall conduct tax assessment in the cases specified in Clause 3, Article 33 of Decree No. 83/2013/ND-CP.

3. Tax assessment must be conducted on the principles prescribed in Article 36 of the Law on Tax Administration.

4. Bases for customs offices to conduct tax assessment are the quantity, taxed value and origin of, import duty, export duty, excise tax, value-added tax, environmental protection tax, safeguard, anti-dumping and anti-subsidy tax rates applicable to, goods actually imported or exported; the exchange rate used for tax calculation; prescribed tax calculation methods and other information and databases prescribed in Clause 2, Article 39 of the Law on Tax Administration, Article 35 of Decree No. 85/2007/ND-CP, and the guidance in Section 1, Part V of this Circular.

5. The competence to conduct tax assessment is provided in Article 33 of Decree No. 83/2013/ND-CP.

6. Procedures for and sequence of tax assessment

a/ Assessment of taxes on imports and exports is conducted in the process of carrying out customs procedures or after goods are cleared from customs procedures or released.

b/ When conducting tax assessment, customs offices shall assess the payable tax amount or each relevant factor (goods quantity, taxed value, tariff heading, tax rate, origin, exchange rate and norm) which are used as grounds for the determination of the total payable tax amount and tax amounts to be exempted, reduced or refunded for each goods item or customs declaration under Article 34 of Decree No. 83/2013/ND-CP.

In case of assessing each factor related to the determination of the payable tax amount, customs offices shall calculate the payable tax amount based on the assessed factors and notify taxpayers thereof together with the results of assessment of the factors related to the determination of the payable tax amount.

c/ Specific procedures and sequence:

c.1/ Identifying goods subject to tax assessment under the guidance in Clause 2 of this Article;

c.2/ Determining the method of tax assessment according to Article 34 of Decree No. 83/2013/ND-CP, and taking the following steps:

c.2.1/ In case of assessment of the total payable tax amount:

- Examining and determining tax bases (goods quantity, value, exchange rate, origin, tariff heading and tax rates) according to tax and relevant laws;

- Calculating the total payable tax amount; the difference between the payable tax amount and the tax amount declared, calculated and paid by the taxpayer (if tax has been paid);

- Issuing a decision on tax assessment and a decision on sanctioning administrative violations (if any).

c.2.2/ In case of assessment of each relevant factor used as a ground for the determination of the total payable tax amount:

- Examining and determining relevant factors in an accurate and lawful manner;

- Determining the time of tax calculation and/or tax bases (goods quantity, value, tax rates) on the basis of relevant factors assessed by themselves and prescribed by tax and other relevant laws. If it is impossible to determine the time of tax calculation and/or tax bases for goods of similar categories under different customs declarations of which the use purposes have been changed, the assessed tax amount will be the average tax amount calculated according to legal documents which are effective at the time of customs declaration registration;

- Calculating the payable tax amount and the difference between the payable tax amount and the tax amount declared, calculated and paid by the taxpayer (if tax has been paid); determining the late paid tax amount under Article 131 of this Circular;

- Issuing a decision on tax assessment and a decision on sanctioning of administrative violations (if any).

7. Responsibilities of customs offices

a/ When conducting tax assessment, customs offices shall issue a tax assessment decision, made according to form No. 01/QDAD/2013 in Appendix II to this Circular, and send it to taxpayers within 8 working hours after signing it;

b/ In case the tax amount assessed by customs offices is larger than the actual payable tax amount as prescribed, customs offices shall return the overpaid amount;

c/ In case customs offices have grounds to determine that a tax assessment decision is incorrect, they shall issue a decision, made according to form No. 02/HQDAD/2013 in Appendix II to this Circular, to cancel the tax assessment decision, and pay compensation to the taxpayer under regulations or the complaint settlement decision of a competent state agency or a court judgment or ruling.

8. Responsibilities of taxpayers

a/ Taxpayers shall fully pay deficient, evaded or cheated tax amounts as assessed by customs offices under Articles 107, 108 and 110 of the Law on Tax Administration, which were amended and supplemented in Clauses 33, 34 and 35, Article 1 of Law No. 21/2012/QH13, Amending and Supplementing a Number of Articles of the Law on Tax Administration.

Taxpayers who commit violations of the tax laws shall be sanctioned under regulations. The statute of limitations for sanctioning violations of tax laws is prescribed in Article 110 of the Law on Tax Administration, which was amended and supplemented in Clause 35, Article 1 of Law No. 21/2012/QH13, Amending and Supplementing a Number of Articles of the Law on Tax Administration, and the Government’s regulations on sanctioning of administrative violations and enforcement of administrative decisions in the field of customs.

b/ If taxpayers disagree with tax assessment decisions of customs offices, they shall still pay the assessed tax amount and, at the same time, may request explanations from customs offices, make a complaint or initiate a lawsuit against tax assessment in accordance with the laws on complaints and initiation of lawsuits.

Article 26.Handling of overpaid tax or late payment interest or fine amounts

1. Tax or late payment interest or fine amounts for imports and exports are considered overpaid in the following cases:

a/ Taxpayers have a paid tax, late payment interest or fine amount larger than the payable tax, late payment interest or fine amount for each tax within 10 years from the date of remittance into the state budget and have such tax, late payment interest or fine amount cleared against tax or fine arrears or against tax or fine amount payable for the next period or have overpaid tax, late payment interest or fine amount refunded on the condition that they owe no tax, late payment interest or fine amount; except for cases ineligible for fine exemption because decisions on sanctioning violations of tax laws issued by tax administration agencies or competent state agencies specified in Clause 2, Article 111 of the Law on Tax Administration have been implemented;

b/ Taxpayers have tax amounts refundable under the laws on import duty and export duty, value-added tax, excise tax, environmental protection tax, safeguarding, anti-dumping or anti-subsidy tax.

2. The dossier of and procedures for handling refunded tax amounts specified at Point b, Clause 1 of this Article comply with the guidance in Section 6, Part V of this Circular.

3. The handling of overpaid tax and late payment interest or fine amounts specified at Point a, Clause 1 of this Article are guided as follows:

a/ A dossier comprises:

a.1/ The written request for the handling of the overpaid tax, late payment interest or fine amount, clearly stating the overpaid tax, late payment interest or fine amount, the payable tax, late payment interest or fine amount, actually paid tax, late payment interest or fine amount, reason for overpayment and proposed handling method: 1 original;

a.2/ The customs dossier and other papers and documents related to the overpaid tax, late payment interest or fine amount: 1 copy each;

a.3/ Tax, late payment interest and fine payment documents: to submit 1 copy and produce the original for comparison.

b/ The customs office to which the taxpayer has overpaid tax, late payment interest or fine amounts shall receive and check the dossier submitted by the taxpayer and compare it with the original customs dossier kept at its office in order to determine its consistency, validity, accuracy and lawfulness, and proceed with the following:

b.1/ If determining that the actually paid amount is larger than the payable amount and the taxpayer’s declarations are correct, the customs office shall issue a decision, made according to form No. 03/QDHT/2013 in Appendix II to this Circular, to refund the overpaid amount;

b.2/ If determining that the actually paid amount is larger than the payable amount but the taxpayer’s declarations of the overpaid amount are incorrect, the customs office shall notify such in writing to the taxpayer and issue a decision to refund the overpaid amount under regulations;

b.3/ If determining that there is no overpaid amount, the customs office shall notify such in writing to the taxpayer, clearly stating the grounds for determining that no amount has been overpaid.

c/ The time limit for the customs office to process a dossier of request for refund of an overpaid amount specified at Point b of this Clause is 5 working days after the receipt of a complete dossier;

d/ On the basis of the decision to refund the overpaid amount, the customs office to which taxpayers have overpaid taxes, late payment interests or fines shall liquidate the overpaid amount and write on the original customs declaration submitted by the taxpayer: “Refund of the overpaid tax, late payment interest or fine amount of VND... under Decision No.... dated... of...” (according to form No. 14/MDHT/2013 in Appendix II to this Circular), make a copy of this liquidated declaration for filing in the tax refund dossier, return the original declaration to the taxpayer and follow the sequence guided in Article 130 of this Circular.

4. Competence to decide on the refund of overpaid tax, late payment interest and fine amounts: Customs offices to which taxes, late payment interest or fines are overpaid shall decide on the refund of overpaid amounts to taxpayers under regulations.

5. The handling of overpaid value-added tax amounts complies with the guidance in Clause 4, Article 130 of this Circular.

Article 27.Transportation of goods to places of preservation

1. For imports and exports subject to assessment to be permitted for import or export and which are requested by customs declarants to be transported to places of preservation:

a/ Heads of customs branches with which declarations are registered may permit customs declarants to transport goods to places of preservation specified at Point b.1, Clause 2 of this Article. Customs declarants shall preserve goods in the original state pending the availability of assessment results;

b/ Based on assessment results, customs officers shall certify the customs clearance of goods or report to heads of customs branches for handling in accordance with law.

2. For imports subject to quality inspection; animal, plant or medical quarantine; food safety inspection (below referred to as specialized inspection)

a/ For goods subject to quarantine:

Quarantine is conducted at border gates. In case quarantine must be conducted at inland places of quarantine, customs offices shall base themselves on the certification by quarantine offices in quarantine registrations or temporary certificates of plant quarantine results (for goods of plant origin) or bills of lading (for aquatic products) or other papers for permitting goods owners to transport goods to places of quarantine. Quarantine offices shall monitor and supervise goods in the course of transportation, quarantine and preservation pending the availability of quarantine results under regulations of the Ministry of Health and the Ministry of Agriculture and Rural Development.

b/ For goods subject to food safety or quality inspection:

b.1/ Heads of customs branches with which declarations are registered shall decide to permit customs declarants to transport goods to the following places for preservation:

b.1.1/ Border gates through which goods are imported.

b.1.2/ ICD, bonded warehouses or centralized customs checkpoints for imports and exports subject to customs supervision in case customs declarants wish to transport goods to places of preservation and get approval of specialized inspection agencies.

b.1.3/ Checkpoints as requested in writing by specialized inspection agencies:

In case specialized inspection cannot be conducted at border gates and goods must be transported to works or plants for installation or to checkpoints of specialized inspection agencies, and specialized inspection agencies request in writing permission for customs declarants to transport goods to such places and take responsibility for the supervision and management of goods pending customs offices’ certification of customs clearance, border-gate customs offices shall make written records of handover of goods shipments to customs declarants for transportation to places requested by specialized inspection agencies.

b.2/ Responsibilities of customs declarants:

b.2.1/ To transport goods to places of preservation and hand them over to customs branches managing these places or to checkpoints requested by specialized inspection agencies.

b.2.2/ In case specialized inspection agencies need to break the seal for specialized inspection, customs declarants shall notify such to customs branches managing places of preservation for breaking the seal, supervising goods and resealing them up upon the completion of specialized inspection.

b.3/ Responsibilities of customs branches with which declarations are registered:

b.3.1/ To seal up goods-transporting vehicles or goods;

b.3.2/ To make written records of handover of goods to customs branches managing places of preservation or to specialized inspection agencies in case goods are transported to checkpoint requested by specialized inspection agencies.

b.3.3/ To monitor customs dossiers of goods shipments transported to places of preservation until customs clearance.

b.4/ Responsibilities of customs branches managing places of goods preservation:

b.4.1/ To receive written records of handover of customs branches with which declarations are registered for supervision of goods during preservation pending specialized inspection or availability of specialized inspection results.

b.4.2/ To supervise goods, warehouses and storing yards where goods are preserved pending the availability of specialized inspection results until customs clearance.

b.4.3/ To permit customs declarants to receive goods after obtaining customs clearance certification of customs branches with which declarations are registered.

c/ To perform customs management of imports which are subject to both quarantine and food safety inspection like imports only subject to quarantine specified at Point a, Clause 2 of this Article.

d/ To handle specialized inspection results:

d.1/ In case specialized inspection results show that goods are eligible for import, customs officers of customs offices with which declarations are registered shall certify customs clearance under Clause 2, Article 29 of this Circular.

d.2/ In case goods are not eligible for import:

d.2.1/ Reprocessing: Based on conclusions of specialized management agencies permitting goods to be reprocessed, customs officers shall certify that “goods may be reprocessed under Document No.... dated...” in customs declarations and permit customs declarants to bring back their goods for reprocessing. In case goods shipments are preserved in quarantine zones or preservation warehouses, customs declarants shall reprocess their goods under documents of competent agencies.

After the reprocessing, if specialized inspection agencies conclude that goods eligible for import, customs officers of customs offices with which declarations are registered shall certify customs clearance. In case goods are still ineligible for import, they must be handled under the guidance at Point dd, Clause 2 of this Article.

d.2.2/ Forcible destruction: Based on conclusions of specialized management agencies on forcible destruction of goods, customs officers shall certify that “goods are destroyed under Document No.... dated..., under written record of goods destruction dated...” in customs declarations for completion of customs procedures.

d.2.3/ Forcible re-export: Based on conclusions of specialized management agencies on forcible re-export of goods, customs branches carrying out import procedures shall carry out procedures for re-export of goods under regulations. Upon completion of re-export procedures, they shall write serial numbers and dates of documents compelling re-export in import declarations and file these documents in their import dossiers.

Customs offices shall coordinate with specialized management agencies in providing information and customs dossiers; join the advisory council and handle other related matters when requested.

The provision of this Article on transportation of goods to places of preservation also applies to import and export shipments undergoing e-customs procedures under Article 15 of the Ministry of Finance’s Circular No. 196/2012/TT-BTC of November 15, 2012.

Article 28.Release of goods

1. Goods permitted for import or export but subject to valuation, assessment, solicitation analysis and classification for determination of exact payable tax amounts may be released after their owners fulfill tax obligations or have tax amounts guaranteed by credit institutions on the basis of tax self-declaration and calculation.

After obtaining valuation, assessment, analysis and classification results, heads of customs branches with which declarations are registered shall assign customs officers to check and recalculate tax amounts, sanction administrative violations (if any) and certify customs clearance of goods under Article 29 of this Circular.

In case goods are cleared from customs procedures on the basis of assessment, analysis and classification results, such results will apply to shipments of goods of the same category subsequently undergoing import procedures at the same Customs Department. This guidance does not apply to the assessment to determine goods quantity.

For an increase in tax amounts (if any) after valuation, assessment, analysis and classification results are obtained, taxpayers shall pay late payment interests under Article 106 of the Law on Tax Administration, which was amended and supplemented in Clause 32, Article 1 of Law No. 21/2012/QH13, Amending and Supplementing a Number of Articles of the Law on Tax Administration, and Article 131 of this Circular.

2. In case goods owners are fined for administrative violations of the customs law, their goods may be cleared from customs procedures as soon as they fully pay fine amounts or have their payable fine amounts guaranteed by credit institutions under sanctioning decisions of customs offices or competent state agencies.

3. Heads of customs branches with which customs declarations are registered shall decide on release of goods.

Article 29.Customs clearance

1. Goods are cleared from customs procedures in the following cases:

a/ Customs procedures are completed;

b/ Customs dossiers lack some documents but heads of customs branches permit late submission of such document within a definite time;

c/ Imports or exports are eligible for the tax payment time limit prescribed in Clause 11, Article 1 of the Law Amending and Supplementing a Number of Articles of the Law on Tax Administration, and Article 20 of this Circular, or payable tax amounts for goods for which taxes must be paid before receipt have not yet been paid or fully paid within the prescribed time limit but such payable tax amounts are guaranteed by credit institutions;

d/ Goods subject to specialized inspection are cleared from customs procedures when having:

d.1/ Notices of inspection exemption; or,

d.2/ Specialized inspection results showing that requirements on import management by specialized inspection agencies are met; or,

d.3/ Conclusions of specialized management agencies or handling decisions of competent state agencies on shipments permitted for import.

dd/ Exports are eligible for export duty exemption or free from export duty or subject to the export duty rate of 0%;

e/ Imports directly serving security or national defense are cleared from customs procedures on the conditions that:

e.1/ There are documents of the leadership of the Ministry of Public Security or the Ministry of National Defense certifying that these goods are imported to directly serve security or national defense and eligible for import duty exemption consideration and not liable to value-added tax;

e.2/ Excise tax, environmental protection tax and other taxes are fully declared and paid in accordance with law (if any).

g/ Imports directly serving natural disaster and epidemic prevention and control and emergency aid are cleared from customs procedures on the conditions that:

g.1/ There are documents of the managing ministries certifying that these goods are imported for natural disaster and epidemic prevention and control and emergency aid;

g.2/ Relevant taxes which these goods are liable to are fully declared and paid in accordance with law.

h/ Imports being humanitarian aid or non-refundable aid goods are cleared from customs procedures if there are notices of aid receipt of managing ministries.

2. Competence to decide on customs clearance:

a/ Customs officers registering customs declarations shall decide on customs clearance for goods exempted from physical inspection;

b/ Heads of customs branches that assign their customs officers to conduct physical inspection of goods shall decide on customs clearance for imports and exports subject to physical inspection.

Article 30.Bases for certification of actual exportation of goods

1. For goods exported through border gates by seaway or inland waterway, bases for certification of actual exportation are export declarations for which customs procedures have been completed with the certification by border-gate customs offices that “goods have gone through the supervision zone”, and bills of lading certifying that goods were loaded on vehicles on exit.

2. For goods exported through border gates by air or railway, bases for certification of actual exportation are export declarations for which customs procedures have been completed with the certification by border-gate customs offices that “goods have gone through the supervision zone”, and transport documents certifying that goods were loaded on vehicles on exit.

3. For goods exported through border gates by road or river-way, transshipment ports, transshipment areas, goods supplied for seagoing ships or aircraft on exit, or exports which are transported together with passengers on exit through border gates by air (without bills of lading), bases for certification of actual exportation are export declarations for which customs procedures have been completed, bearing the “GOODS ALREADY EXPORTED” certification of customs offices of border gates of exportation.

4. For exports put into bonded warehouses, bases for certification of actual exportation are export declarations for which customs procedures have been completed, bearing the “GOODS ALREADY PUT INTO BONDED WAREHOUSES” certification of the customs offices managing bonded warehouses.

5. For goods brought from bonded warehouses to border gates of exportation, bases for certification of actual exportation are declarations of goods brought into or out of bonded warehouses; written records of handover of goods in border-gate transfer and manifests of goods in border-gate transfer from bonded warehouses to border gates of exportation with certification of customs offices of border gates of exportation.

6. For exports put into container freight stations (CFSs), bases for certification of actual exportation are export declarations for which customs procedures have been completed, bearing the “GOODS ALREADY PUT INTO CFS” certification of customs branches managing CFSs; manifests of goods in border-gate transfer from CFSs to border gates of exportation with certification of customs offices of these border gates; bills of lading or equivalent documents.

7. For exports sold from the inland into non-tariff zones, bases for certification of actual exportation are export declarations for which customs procedures have been completed, bearing the “GOODS BROUGHT INTO NON-TARIFF ZONES” certification of the non-tariff zone customs offices.

8. For goods sold by export-processing enterprises to inland enterprises and goods sold by inland enterprises to export-processing enterprises, bases for certification of actual exportation are on-spot import/export declarations for which customs procedures have been completed.

9. For on-spot imports and exports, bases for certification of actual exportation are on-spot import/export declarations for which customs procedures have been completed.

Article 31.Cancellation of customs declarations

1. Cases of cancellation of customs declarations:

a/ Past 15 days from the date of import or export declaration registration under Clause 1 or 2, Article 18 of the Customs Law, customs procedures have not yet been completed, except cases in which imports are awaiting inspection/assessment results of specialized management agencies;

b/ Customs procedures have been completed for import or export declarations, but past 15 days from the date of declaration registration, no imports arrive at the border gate of importation or exports are not yet supervised by customs offices;

c/ Customs declarants request cancellation of registered declarations in the following cases:

c.1/ They make many declarations for the same import or export shipment;

c.2/ Their export declarations declare goods which have gone through customs supervision but they fail to export such goods.

2. The order and procedures for cancellation of a customs declaration are prescribed as follows:

a/ Canceling the custom declaration: The customs officer shall cross out the customs declaration with an ink pen, sign and append the officer seal to the cancelled customs declaration;

b/ Taking a note on the system: This declaration is cancelled;

c/ Filing the cancelled declaration by its registration number.

3. Heads of customs branches with which customs declarations are registered shall consider the cancellation of registered customs declarations.

Article 32.Reviewof customs dossiers

The review of customs dossiers may be conducted after goods shipments have been cleared from customs procedures, and must be completed within 60 days from the date of customs clearance of goods shipments.

Article 33.Post-customs clearance inspection

Post-customs clearance inspection complies with the guidance in Part VI of this Circular.

Chapter II

OTHER GUIDANCE ON CUSTOMS PROCEDURES FOR IMPORTS AND EXPORTS

Section 1

CUSTOMS PROCEDURES FOR GOODS IMPORTED AND EXPORTED BY MODE OF IMPORTING MATERIALS AND SUPPLIES FOR EXPORT PRODUCTION

Article 34.Materials and supplies imported for export production

Materials and supplies imported for export production include:

1. Materials, semi-finished products, parts and assemblies to be directly used in the production process, constituting products for export.

2. Materials and supplies to be directly used in the process of export production but neither being transformed into nor constituting products.

3. Finished products imported by enterprises for attachment to or packaging together with exports produced from imported materials and supplies or packaging together with exports produced from materials and supplies bought in the domestic market into complete goods for export abroad.

4. Supplies for use as packaging materials or exports packages.

5. Materials and supplies imported for the maintenance, repair or re-processing of exports.

6. Samples imported for export production which must be re-exported to foreign customers after completion of contracts.

Article 35.Products exported by mode of export production

1. Exports managed under the mode of export production include:

a/ Products which are wholly produced from materials and supplies imported for export production;

b/ Products which are produced from materials and supplies of two sources:

b.1/ Materials and supplies imported for export production and materials and supplies of domestic origin; or,

b.2/ Materials and supplies imported for export production and materials and supplies imported for domestic business.

c/ Products which are wholly produced from materials and supplies imported for domestic business.

2. Materials and supplies which are imported for domestic business may be used as materials and supplies imported by mode of export production, provided that the duration from the date of registration of the customs declaration for the import of such materials and supplies to the date of registration of the final export declaration for products from materials and supplies imported under the import declaration does not exceed 2 years.

3. Products from materials imported by mode of export production may be exported directly by importing enterprises or sold to other enterprises for export.

Article 36.Customs procedures for import of materials and supplies

1. Customs clearance places

An enterprise shall register materials and supplies to be imported for export production and carry out customs procedures for importation according to the list already registered at a customs branch prescribed as follows:

a/ Customs branch of the Customs Department of the locality where the enterprise bases its production establishment;

b/ In case the enterprise is organized as a group (parent company-subsidiary company) having member units specialized in importing materials and supplies for supply to affiliated units or having production establishments in different provinces or cities, it may choose a customs branch of the locality where one of its production establishment is located or the customs office of the border gate of importation of materials and supplies for completion of customs procedures.

This provision applies also to enterprises carrying out e-customs procedures under the Ministry of Finance’s Circular No. 196/2012/TT-BTC of November 15, 2012.

2. Procedures for registration of to-be-imported materials and supplies

a/ Enterprises shall base on their export production plans to register with customs offices materials and supplies to be imported for export production according to a set form (form No. 22/DMNVL-SXXK, Appendix III to this Circular);

b/ Registration must be made when import procedures are carried out for the first shipment of materials and supplies listed in the registration;

c/ Enterprises shall fully fill in the registration of imported materials and supplies, in which:

c.1/ Appellations are the appellations of all materials and supplies used for export production. These materials and supplies may be imported under one or several contracts;

c.2/ HS codes of goods are headings of materials and supplies in the current Import Tariff;

c.3/ Codes of materials and supplies must be identified by enterprises under the guidance of the customs branch which carries out import procedures;

c.4/ Units of calculation comply with Vietnam’s list of imports and exports;

c.5/ Enterprises shall fill the uniform appellations, HS codes, units of calculation and codes of materials and supplies in the registration of imported materials and supplies and customs dossiers from the stage of importing materials and supplies to the liquidation, tax refund and non-collection of import duty.

3. Inspection of a production establishment for application of the tax payment time limit under Article 20 of this Circular:

a/ Time of submission of a written commitment that the enterprise has a production establishment conformable with materials and supplies imported for export production:

The enterprise shall submit its written commitment on having a production establishment before it carries out procedures for importing the first shipment of materials and supplies for export production at the customs branch carrying out import procedures for materials and supplies.

The customs office shall receive the enterprise’s commitment and enter information on the production establishment in the database on the system.

b/ Cases subject to inspection of production establishments:

b.1/ The enterprise is eligible for the tax payment time limit of 275 days for the first time nationwide;

b.2/ The enterprise registers the import declaration with a customs branch in a locality where the production establishment is not located;

b.3/ The enterprise entrusts importation;

b.4/ Inspection is based on results of the risk management or availability of information for suspecting that the enterprise has no production establishment or that its production establishment is not suitable to materials and supplies imported for export production; inspection is conducted on a probability basis to appraise the law observance by the enterprise under the guidance of the General Department of Customs.

c/ Time of inspection of production establishments:

The inspection of a production establishment is conducted 10 working days after the customs clearance or release of the first shipment of materials and supplies for export production. such inspection is conducted within 3 working days. In case such establishment is not managed by the customs branch carrying out import procedures, the inspection time limit is 5 working days;

d/ Competence to decide on inspection of a production establishment: The leader of the customs branch carrying out import procedures for materials and supplies shall notify in writing the enterprise of the inspection 2 working days in advance;

dd/ Contents of inspection of a production establishment:

dd.1/ Inspecting the address of the establishment stated in the written commitment or verifying information on the address of the establishment through the local authorities, such as police, local tax office and local people.

dd.2/ Inspecting the lawful ownership of workshops, machinery and equipment of the production establishment:

dd.2.1/ Checking documents proving the lawful ownership of workshops and production spaces;

dd.2.2/ Inspecting the ownership and right to use machinery and equipment in the production establishment to identify the lawful ownership and use right of the enterprise to such machinery and equipment;

Contents of inspection: Checking import declarations (in case of import); invoices and documents on purchase of machinery and equipment (in case of domestic purchase); financial leasing contracts (in case of financial leasing). The validity term of the financial leasing contract must be equal to or longer than that of the product export contract;

dd.3/ Inspecting the production capacity and operation capacity of the lines of machinery and equipment, number of workers of the production establishment to determine their suitability to goods items, quantity of materials and supplies imported for export production;

e/ Making written records of inspection of production establishments:

Upon the completion of the inspection, customs officers shall make a written record of inspection of the production establishment according to inspection contents. Such record must fully and truthfully reflect the practical conditions and contain inspection conclusions, which must clearly state:

e.1/ The enterprise has a production establishment having lines of machinery and equipment suitable to materials and supplies imported for export production as stated in the written commitment, or,

e.2/ The enterprise has no production establishment or has a rent production establishment or the lines of machinery and equipment are not suitable to materials and supplies imported for export production as stated in the written commitment.

In this case, the customs office shall retrospectively collect all taxes prescribed for goods imported for commercial purposes.

Written records must be signed by customs officers who conduct the inspection and at-law representatives of inspected enterprises.

4. Customs procedures are similar to those applicable to commercial import goods guided in Chapter I, Part II of this Circular.

Article 37.Procedures for notification and adjustment of norms of materials and supplies and registration of exported products

1. The place of notification and adjustment of norms and registration of exported products is the customs branch which has carried out procedures for the import of materials and supplies.

2. Norms of materials and supplies actually used for export production include:

a/ “Norm of use of materials” means necessary and reasonable quantity of materials used for production of an export product unit;

b/ “Norm of consumed supplies” means quantity of supplies consumed for production of an export product unit;

c/ “Wastage ratio of materials or supplies” means quantity of wasted materials or supplies, including natural loss, wastes and scraps, faulty products (except scraps and wastes already calculated into the use norm), calculated in percentage of the material use norm or consumed supplies norm.

Methods for calculation of norms and average norms are similar to those applicable to the form of processing as guided by the Ministry of Finance.

3. Notification of norms

a/ Responsibilities of enterprises:

a.1/ To elaborate norms for export production;

a.2/ To notify norms of main materials:

Main materials are those constituting main parts of products. Main products are determined by enterprises themselves to be suitable to actual norms and enterprises shall notify such norms to customs offices according to form No. 23/TBDM-SXXK in Appendix III to this Circular, fully showing technical specifications of products.

Upon notifying norms, an enterprise shall submit one design diagram of the product model or production process (if any), diagram of design patterns (for garment and footwear) to the customs office for archive.

a.3/ To keep the norms in accordance with the Customs Law and produce them at the request of customs offices.

b/ Responsibilities of customs offices:

b.1/ To receive notifications of norms of enterprises within one hour after enterprises submit these notifications. In case the notification does not fully contain technical specifications under Point a.2 of this Clause, the customs office shall refuse to receive the notification and request the enterprise to supplement it;

b.2/ To keep norms and product model design diagrams or production processes (if any), diagrams of design patterns (for garment and footwear) notified by traders together with customs dossiers in accordance with the Customs Law;

b.3/ To conduct regular inspection or extraordinary inspection upon any doubt that the notified norms are untruthful.

The inspection of norms is conducted in a manner similar to that applicable to the form of processing as guided by the Ministry of Finance.

3. Time of notification of norms: Before or at the time of registration of export declarations for the first shipment of products stated in the notification of norms of main materials.

4. Adjustment of norms

a/ During production, if there is any change in actual norms, enterprises shall explain in writing the change and ask for permission for adjustment of norms of goods codes already notified to customs offices to suit new actual norms.

b/ The adjustment of norms must be carried out before or at the time of carrying out procedures for export of products with adjusted norms.

c/ Adjustment of norms after export of products:

c.1/ Cases of adjustment:

c.1.1/ Due to calculation errors (errors in calculation methods; units of calculation; decimal points; calculation results);

c.1.2/ Due to change in quality of materials, supplies and conditions for export production;

c.2/ Conditions for adjustment of norms:

c.2.1/ Customs offices still keep technical specifications, product model design diagrams and diagrams of design patterns (for garment and footwear);

c.2.2/ Enterprises have sufficient proofs (scraps, faulty products or invoices and documents related to shipments of goods with adjusted norms) and customs offices have sufficient grounds and conditions for inspection and determination of the truthfulness, accuracy and lawfulness of the requested adjustment of norms;

c.2.3/ Time of adjustment of norms: Before enterprises submit dossiers for tax refund or non-collection.

c.3/ Responsibilities of enterprises:

c.3.1/ To make and send written requests for adjustment of norms to customs offices, clearly stating reasons for adjustment;

c.3.2/ To produce all relevant documents for customs offices to examine and compare;

c.3.3/ To implement adjusted norms according to inspection results of customs offices;

c.4/ Responsibilities of customs offices:

c.4.1/ To receive dossiers of request for adjustment of norms of enterprises;

c.4.2/ To inspect conditions for adjustment of norms;

c.4.3/ To accept adjusted norms of enterprises if enterprises fully satisfy the conditions for adjustment of norms after exporting products.

c.4.4/ To inspect norms: To inspect all cases of declaration of norms higher than those notified to customs offices; to conduct inspection when there is a doubt about the declaration of norms lower than those notified to customs offices. In case customs offices cannot identify norms, they may solicit assessment by specialized assessment organizations.

5. Tasks of customs offices

a/ To receive enterprises’ notifications of norms and registration papers of exported products;

b/ To examine norms notified by enterprises under the Finance Ministry’s guidance on examination of norms applicable to exported processed products.

6. Enterprises shall register exported products before carrying out procedures for export of the first shipment of products, according to form No. 24/DMSP-SXXK in Appendix III to this Circular.

7. In case materials and supplies have been imported for production of goods for domestic sale but later used for export production and products are actually exported, the notification and adjustment of norms comply with the guidance in this Article.

8. In case enterprises notify norms and register export products at customs branches other than those with which they have registered import of materials and supplies, the notification of norms and registration of export products are conducted as follows:

a/ Places of notification of norms and registration of export products:

a.1/ For export products specified at Point b.2, Clause 1, Article 35 of this Circular: The notification of norms and registration of export products are conducted at customs branches carrying out import procedures for imports for export production.

a.2/ For export products specified at Point c, Clause 1, Article 35 of this Circular: Enterprises may choose one of customs branches that have carried out procedures for import of materials and supplies for commercial purposes but used for export production.

b/ Enterprises shall notify in writing norms to customs branches they have chosen. A notification of norms must state appellations and categories of materials in each import declaration for goods imported for commercial purposes but used for export production (clearly stating the serial number, code and date of the import declaration and customs branch carrying out procedures).

After completing procedures for notification of norms and registration of export products, customs branches shall notify such to customs branches carrying out procedures for imports for commercial purposes (clearly stating appellations of materials and supplies, serial numbers of declarations for imports for commercial purposes containing materials and supplies for use in export production) together with copies of norms and lists of export products.

Article 38.Customs procedures for export of products

1. Customs procedures for the export of products may be carried out at the customs branch which has carried out procedures for the import of materials, or at other customs branches provided that before carrying out export procedures, enterprises shall send a written notification (made according to form No. 25/TBXKSP-SXXK/2013 in Appendix III to this Circular) to the customs branch which has carried out procedures for the import of materials and supplies, for finalization of the use of imported materials and supplies and tax refund or non-collection.

Particularly for exported products produced from two sources of materials, namely materials imported for commercial purposes and materials imported for export production, or exported products wholly produced from materials imported for domestic sale, enterprises may register declarations for product export with the customs branch with which they have registered the declaration for import of materials for export production or either of the two customs branches with which they have registered declarations of import of materials for domestic sale, without having to notify in writing to the customs branch with which they have registered declarations of imports for commercial purposes.

For exported products produced from two sources of materials, namely materials imported for commercial purposes and materials imported for export production, if enterprises register the export declaration with a customs branch other than the customs branch which has carried out procedures for the import of materials for commercial purposes and materials for export production, they are required to send a written notification only to the customs branch with which they have registered the declaration for import of materials for export production.

2. Customs procedures are similar to those applicable to commercial exports guided in Chapter I, Part II of this Circular.

Article 39.Finalization of the use of imported materials and supplies

1. Principles of finalization

a/ Declarations of import of materials and supplies must be made before declarations of export of products;

b/ One declaration of import of materials and supplies may be used for multiple finalizations.

c/ An export declaration may be used only once for finalization.

Particularly for some cases in which a shipment is finalized many times at a customs branch but export products are made from materials imported for commercial purposes for which import procedures have been carried out by another customs branch, one export declaration may be used for multiple finalizations. The handling of materials and supplies finalized many times complies with the guidance in Article 129 of this Circular.

2. Enterprises shall submit dossiers of finalization of the use of imported materials and supplies to customs branches which have carried out import procedures under Article 117 of this Circular.

3. Examination of finalization dossiers

Customs offices shall receive finalization dossiers of enterprises and examine these dossiers under guidance in Clauses 7 and 8, Article 127 of this Circular.

4. Procedures for putting for domestic sale of imported materials and supplies

a/ Conditions for domestic sale:

Materials and supplies imported for export production may be domestically sold if enterprises cannot find an outlet for their products after foreign parties cancel export contracts or due toforce majeureevents.

b/ Customs procedures:

b.1/ Customs procedures for imported materials and supplies that are domestically sold are carried out by customs branches that have carried out import procedures;

b.2/ Enterprises shall send to customs branches their written requests for domestic sale of imported materials and supplies, clearly stating quantity, categories, import declarations and reasons;

b.3/ Leaders of customs branches shall consider and approve requests if the conditions prescribed at Point a, Clause 4 of this Article are satisfied;

b.4/ After obtaining approval of the leaders of customs branches, customs declarants shall fill in new customs declarations and carry out customs procedures for commercial import of goods; and abide by tax and import management policies applicable at the time of registration of declarations for domestic sale (except enterprises that have fully abided by management policies at the time of importation);

b.5/ Customs branches shall carry import procedures under regulations; imported goods to be domestically sold must be physically inspected to ensure that they are consistent with information in their import dossiers.

5. The destruction of scraps and faulty products at production establishments of customs declarants comply with law and is subject to customs supervision. In case scraps and faulty products are transported to other places for destruction, they will be treated like goods of export processing enterprises as guided in Article 49 of this Circular.

Article 40.Customs procedures applicable to cases in which products are sold to other enterprises for direct export

1. Enterprises importing materials and supplies for export production shall carry out procedures for import, notification of norms and reporting on finalization of the use of imported materials and supplies under this Circular.

2. Enterprises directly exporting products shall carry out procedures for export of their products under this Circular. Export declarations must be registered for the form of export production, clearly stating “Products produced from materials and supplies imported for export production” and the name of the selling enterprise.

Section 2

CUSTOMS PROCEDURES FOR GOODS TRADED IN THE FORM OF TEMPORARY IMPORT FOR RE-EXPORT, IN BORDER-GATE TRANSFER

Article 41.Customs procedures for goods traded in the form of temporary import for re-export

Customs procedures for goods traded in the form of temporary import for re-export as guided in this Circular (excluding some kinds of goods which comply with the Ministry of Industry and Trade’s Circular No. 05/2013/TT-BCT of February 18, 2013, and petrol and oil traded in the form of temporary import for re-export which comply with a separate guidance of the Ministry of Finance) are similar to those for commercial imports and exports. In addition, a number of contents are guided as follows:

1. Temporary-import customs procedures

a/ Customs clearance places:

The customs procedures for temporary import of goods are carried out at customs branches of border gates where temporarily imported goods are kept;

b/ Temporary-import customs dossiers:

When carrying out the temporary-import customs procedures, in addition to documents required for commercial imports, traders shall register the border gates for re-export in “Ghi chep khac” (Other notes) box in the customs declaration (if goods are to be re-exported through many border gates, a list of export border gates can be attached to the declaration) and submit 1 copy of the export contract.

c/ When carrying out the temporary-import procedures, customs officers shall examine and compare the export contracts with the temporary-import dossiers, clearly writing the serial number of the temporary-import declaration, sign and stamp their seals on the export contracts and return them to the customs declarants for carrying out the re-export procedures.

2. Re-export customs procedures

a/ Re-export customs clearance places:

The re-export customs procedures are carried out at the customs branches of temporary import border gates or re-export border gates.

b/ Re-export customs dossiers:

b.1/ When carrying out the re-export procedures, in addition to the documents required for commercial exports, customs declarants shall declare the re-export goods belonging to which temporary-import declarations in “Ghi chep khac” (Other notes) box in the export customs declaration;

b.2/ If the re-export procedures are carried out at border gates other than the temporary-import border gates, in addition to the documents specified at Points b.1, Clause 2 of this Article, customs declarants shall submit:

b.2.1/ One copy of the export contract bearing the certification of the customs office where the temporary import procedures are carried out;

b.2.2/ One copy of the temporary-import customs declaration, together with presenting the original for comparison.

c/ Re-export border gates: To comply with the regulations of the Government and the Ministry of Industry and Trade;

d/ If traders wish to change the re-export border gates already stated in the export declarations, they shall carry out the procedures as guided in Clause 10, Article 61 of this Circular;

dd/ Temporary-import goods can be divided into different goods lots for re-export. In case they are transported in containers, it is not permitted to divide them into smaller lots throughout the goods transportation from the temporary-import border gate to the customs supervision area at the re-export border gate; for plausible reasons, traders may propose to transfer goods to other containers or other means of transport for export, provided the customs seals and supervision are still maintained. The customs branches supervising the goods shall consider, decide and arrange customs officers to supervise the traders’ transfer of goods to containers or means of transport;

e/ Goods traded in the form of temporary import for re-export, which have gone through the customs procedures, must be fully gathered at export and import checkpoints; bonded warehouses in temporary-import or re-export border gate areas and re-exported through the border gates within 8 working hours after the goods arrive at the export border gates; in case they cannot be re-exported or are not fully re-exported, leaders of the export border-gate customs branches shall, upon receiving written requests of traders, consider and permit continued export in subsequent days within the prescribed duration of storage in Vietnam;

g/ If customs declarants carry out the re-export procedures at border gates other than the temporary-import border gates, after carrying the customs procedures, the export border gate customs branches shall daily at 17:00 hrs fax the re-export customs declarations to the temporary- import customs branches for monitoring and management under regulations.

3. Storage duration and places

a/ Storage duration:

a.1/ Goods traded in the form of temporary import for re-export may be stored in Vietnam in accordance with the law on management of goods traded in the form of temporary import for re-export;

a.2/ Extension procedures and competence:

If traders send written requests to border-gate customs branches where the temporary-import procedures are carried out, leaders of the customs branches shall consider and agree to extend the goods storage duration in Vietnam under regulations in force majeure cases and when the goods purchase and sale contracts see changes in goods delivery conditions and time.

b/ Storage places:

b.1/ Goods traded in the form of temporary import for re-export must be stored at export and import checkpoints or bonded warehouses at temporary-import border gate or re-export border gate areas. Particularly, goods on the list of goods banned from export and import or suspended from export and import must be kept within the temporary-import border gates;

b.2/ For goods traded in the form of temporary import for re-export deposited at bonded warehouses, the warehousing and delivery procedures must be carried out as guided in Article 59 of this Circular; the deposit duration is consistent with the time limit for storing these goods in Vietnam.

4. Custom supervision of goods transported from temporary-import border gates to re-export border gates

a/ Goods traded in the form of temporary import for re-export, after having gone through temporary-import customs procedures, must be customs-sealed and placed under customs inspection and supervision. For oversized, overweight or bulk goods which cannot be customs-sealed, the temporary-import border-gate customs branches shall make written records of the handover of goods to the customs declarants for preservation of their original state and transport to the re-export border gates. The goods handover records must describe in detail the state of goods, means of transport and be sent together with photos of the goods and means of transport to the re-export border gate customs branches for supervising the actual re-export of goods;

b/ Goods re-exported through border gates other than the temporary-import border gates must be customs-sealed and transported according to the routes, stops, time and border gates already registered with customs offices and be preserved in their original state with customs seals. The duration for transport of goods from temporary-import border gates to re-export border gates must not exceed 5 days, except cases specified at Point e.1, Clause 4 of this Article;

c/ Responsibilities of temporary-import border gate customs branches:

c.1/ To seal the goods and make 3 goods handover records (according to form No. 26/BBBG-TNTX/2013 in Appendix III to this Circular) with adequate information on departure time, transport route and other information serving as the basis for export border gate customs offices to receive, inspect, compare and handle; then seal the customs dossiers enclosed with 2 handover records and hand them to traders for transport to export border gates;

c.2/ To fax the goods handover record to the export border gate customs branches before 17:00 hrs daily for coordinated monitoring and management;

c.3/ To follow the feedback information from the export border gate customs branches. Past the goods transport duration (registered by traders on goods handover records), if receiving no feedback information or only receiving the information that the goods have not yet arrived at the re-export border gates from the re-export border-gate customs branches, the temporary-import border gate customs branches shall coordinate with the export border gate customs branches and notify the customs control teams of the Customs Departments of the places where the temporary-import procedures are carried out, for search of the goods.

d/ Responsibilities of re-export border gate customs branches:

d.1/  After receiving information on the transfer of goods traded in the form of temporary import for re-export according to the handover record faxed by the temporary-import border gate customs branches, the re-export border gate customs branches shall monitor information on the goods transported to export border gates according to the handover record;

d.2/ After the traders fully gather goods at export border gates, customs officers shall inspect and compare the customs seal conditions, certify the information and submit 2 handover records to the customs branch leaders for signing;

d.3/ To fax the handover record to the temporary-import customs branches for information. In case of doubting that the re-export goods lots breach the customs law, the heads of the re-export border gate customs branches shall decide to conduct physical inspection of the goods and handle inspection results as for goods in border-gate transfer;

d.4/ To keep 1 handover record and send another already certified to temporary-import border gate customs branches for filing;

d.5/ Customs officers shall supervise the goods from the time of receiving them to the time they are fully exported, give certification on the customs declarations and submit them to the customs branch leaders for signing (signature, seal and date);

d.6/ After the goods transportation time limit, if the goods have not yet arrived at the re-export border gates, before 08:00 hrs on the following working day, the re-export border-gate customs branches shall send feedback information that the goods lots have been transported not according to the registered routes and time to the temporary-import border-gate customs branches and coordinate with the latter in searching the goods.

dd/ Responsibilities of the customs control teams:

Upon receiving the information that the goods traded in the form of temporary import for re-export are transported not according to the registered routes and time, the customs control teams shall, within their operation areas, organize the search for the goods at the request of the customs branches with which the declarations are registered or report to the Anti-Smuggling Investigation Department for coordinated search of the goods, if the case falls outside their operation areas.

e/ Responsibilities of traders and operators of means of transport of goods:

e.1/ To transport goods according to the routes and time already certified on the goods handover records by customs offices. In case of transporting goods according to different routes and time, before the goods arrive at export border gates, customs declarants/carriers shall send written notices to the customs branches with which the declarations are registered and the export border-gate customs branches for monitoring and supervision;

e.2/ To preserve goods with customs seals in their original state throughout the course of transport. In case of having accidents or force majeure incidents which affect the customs seals or the original state of goods, customs declarants/carriers shall apply measures to limit the loss and promptly report them to commune/ward/township People’s Committees or the nearest customs branches for making written records of the current state of goods.

5. Customs procedures for goods traded in the form of temporary import for re-export goods to be sold domestically

a/ Goods on the Ministry of Industry and Trade’s list of goods not promoted for import may not be domestically sold. In case they cannot be re-exported or are not fully re-exported, they must be re-exported through the temporary-import border gates within 30 days after the expiration of the permitted duration of storage in Vietnam;

b/ Other goods may be domestically sold if they cannot be re-exported or are not fully re-exported due to the cancellation of goods purchase and sale contracts by foreign partners. The customs procedures are as follows:

b.1/ Traders shall send written requests for domestic sale to the Customs Departments of the localities where the temporary-import procedures are carried out;

b.2/ The Customs Departments of the localities where the temporary import procedures are carried out shall consider and approve the requests if the condition specified at Point b.1, Clause 5 of this Article is satisfied;

b.3/ After their requests are approved by the Customs Departments, traders shall carry out the customs procedures for commercial imports; the tax policies and import management policies apply at the time of registration of the written declarations for domestic sale.

Article 42.Customs procedures for goods in border-gate transfer

1. Goods in border-gate transfer which are transported directly from exporting countries to importing countries without going through Vietnamese border gates are not subject to customs procedures.

2. For goods in border-gate transfer which are transported from exporting countries to importing countries through Vietnamese border gates, but not deposited at bonded warehouses or goods transshipment areas at Vietnamese ports, customs offices shall supervise the goods until they are actually exported out of Vietnam. For goods in border-gate transfer which require permits of the Ministry of Industry and Trade, customs declarants shall submit copies of the licenses for trading in goods in border-gate transfer and present the originals to border-gate customs officers for comparison.

3. Goods transported from exporting countries to importing countries through Vietnamese border gates and deposited at bonded warehouses or goods transshipment areas at Vietnamese ports must go through the customs procedures prescribed for goods brought into and delivered from bonded warehouses or goods transshipment areas at Vietnamese ports.

4. Goods traded in the form of border-gate transfer must be transported out of Vietnam through import border gates.

5. Goods traded in the form of border-gate transfer are exempted from inspection. If signs of law violation are detected, they must be inspected according to Article 16 of this Circular.

Section 3

CUSTOMS PROCEDURES FOR SOME OTHER CASES

Article 43.Customs procedures for goods exported and imported for performance of processing contracts with foreign traders

1. Customs procedures for goods exported or imported for performance of processing contracts with foreign traders comply with a separate guidance of the Ministry of Finance.

2. For completely processed products imported on spot; processed products used for payment of processing remunerations; and surplus materials and supplies after the settlement of processing contracts which are sold in Vietnamese market, new customs declarations must be registered as for on-spot imports and exports. Traders shall fully comply with the policies on management of imports and tax policies applicable to goods imported from abroad.

Specific customs procedures comply with the guidance of the Ministry of Finance.

Article 44.Customs procedures for exports and imports with registration of single customs declarations

1. Registration of single customs declarations applies to all exports and imports which meet the following conditions:

a/ The goods appellations on the customs declaration do not change during the validity of the single registration of the declaration;

b/ Goods on the declaration belong to the same contract; and the goods purchase and sale contract contains a provision on multiple delivery;

c/ Enterprises being goods owners properly observe the customs law.

2. Validity of registered declarations

a/ The declarations are valid during the validity of contracts. For processed goods with contract annexes, the declarations are valid during the validity of contract annexes;

b/ The declarations terminate validity ahead of time in the following cases:

b.1/ There are changes in tax policies and export and import management policies for goods items on the declarations;

b.2/ The export or import permits or contracts cease to be valid;

b.3/ Enterprises have fully exported or imported the goods quantities stated in the customs declarations;

b.4/ Enterprises notify not to continue carrying out the procedures for full export or import of the goods quantities stated in the customs declarations;

b.5/ Enterprises export or import goods with appellations and headings inconsistent with those stated in the single-registered declarations;

b.6/ Enterprises are subject to coercive measures during the validity of the single-registered declarations;

b.7/ During the validity of the single declarations, enterprises commit violations, thus failing the meet the condition specified at Point c, Clause 1 of this Article.

3. The export or import procedures in the form of registration of single declarations are carried out at one customs branch.

4.  Procedures for registration of single declarations

a/ Customs declarants shall declare in the customs declaration and the export and import  monitoring books. A number of items on the declaration used for each export or import (transport documents, means of transport...) must not be filled in upon the registration of single declarations.

b/ A customs dossier comprises:

b.1/ The export or import goods declaration: to submit 2 originals;

b.2/ The goods purchase and sale contract made in writing or other forms of equivalent validity, such as telegraph, telex, fax and data message: to submit 1 copy;

b.3/ The export or import permit issued by a competent state management agency (for goods requiring export or import permits under law): to submit 1 copy and produce the original for comparison and issuance of a reconciliation monitoring slip; or submit 1 original (if goods stated in the single declaration are the entire goods permitted for export or import written in the permits);

b.4/ The export and import monitoring book and slip: 2 books (the book made according to form No. 27/STD/2013 and the monitoring slip made according to form No. 28/PTD/2013 in Appendix III to this Circular).

c/ The customs branch shall receive the dossier, register the declaration and return 1 declaration and 1 export and import monitoring book to the enterprise.

5. Procedures for single export and import

a/ Customs declarants submit the papers of the customs dossiers as prescribed for each form of export or import (except papers already submitted upon the registration of declarations); and produce the registered customs declarations and export or import monitoring books;

b/ Customs branch leaders shall base themselves on the form and extent of inspection notified by the risk management system upon the registration of customs declarations and the practical situation at the time of export or import to decide on the appropriate form and extent of customs inspection applicable to each export or import.

6. Report on finalization of single export or import

a/ Responsibilities of enterprises:

a.1/ Within 15 working days after the declaration become invalid, enterprises shall carry out procedures to report on the finalization of each export or import to the concerned customs branches;

a.2/ A dossier comprises the customs declaration and the export or import monitoring book.

b/ The customs branch shall inspect, compare and certify the total actually exported or imported quantities of goods on the customs declaration.

Article 45.Customs procedures for on-spot exports and imports

1. Interpretation of terms

a/ On-spot exports and imports means the goods exported by Vietnamese traders (including foreign-invested traders and export-processing enterprises) to foreign traders who, however, designate the delivery and receipt of such goods in Vietnam to other Vietnamese traders;

b/ On-spot exporters (below referred to as exporting enterprises) are persons designated by foreign traders for delivery of goods in Vietnam;

c/ On-spot importers (below referred to as importing enterprises) are persons who purchase goods of foreign traders and are designated by the latter to receive goods in Vietnam from on-spot exporters.

2. Grounds for determination of on-spot exports or imports

a/ For processed products; hired or borrowed machinery and equipment; surplus materials, auxiliary materials and supplies; scraps and discarded products under processing contracts: To comply with Clause 3, Article 33 of Decree No. 12/2006/ND-CP;

b/ For goods of foreign-invested enterprises: To comply with the guidance of the Ministry of Industry and Trade;

c/ For other types of goods: To comply with Clause 2, Article 15 of Decree No. 154/2005/ND-CP.

3. The customs procedures for on-spot export and import are carried out at the customs branches most convenient for enterprises at the latter’s own choice as prescribed for each form of export or import.

4. A customs dossier comprises:

a/ The on-spot export-import declaration (see Appendix IV with the use instructions in Appendix V to this Circular): to submit 4 originals;

b/ The goods purchase and sale contract or the processing contract with designated delivery of goods in Vietnam (for exporters), the goods purchase and sale contract or processing contract with designated receipt of goods in Vietnam (for importers), the hiring or borrowing contract: to submit 1 copy;

c/ Export bill: to submit 1 copy and produce the original for comparison;

d/ Other papers as prescribed for each form of export or import (excluding the bill of lading).

5. Within 15 working days after the exporting enterprises complete the customs procedures and deliver the goods, the importing enterprises shall carry out the customs procedures. Past the above time limit, if the importing enterprises fail to carry out the customs procedures, customs offices shall make written records, sanction customs-related administrative violations, then continue with the customs procedures.

6. The customs procedures for on-sport export

a/ Responsibilities of importing enterprises:

a.1/ To fully fill in the items reserved for importing enterprises on 4 declarations, clearly stating the customs branch projected for carrying out the import procedures in box 29 of the on-spot export-import declaration, sign and seal;

a.2/ To hand 4 customs declarations to the exporting enterprise;

a.3/ Upon the completion of the on-spot import procedures, to keep 1 customs declaration and send the other to the exporting enterprise.

b/ Responsibilities of exporting enterprises:

b.1/ After fully receiving 4 customs declarations, to fully fill in the items reserved for exporting enterprises on the 4 customs declarations;

b.2/ To submit the customs dossier to the customs branch for carrying out the export procedures under regulations;

b.3/ Upon the completion of the export procedures, to transfer the remaining 3 declarations to the importing enterprise for carrying out the import procedures;

b.4/ To receive back 1 customs declaration from the importing enterprise, which must fully contain the certifications, signatures and seals of all 4 parties: importing enterprise, exporting enterprise, import procedure-carrying out customs office and export procedure-carrying out customs office.

c/ Responsibilities of on-spot export procedure-carrying out customs branches:

c.1/ To receive and register the declarations, decide on appropriate forms and extent of inspection, and check tax calculations (for taxed goods) according to current regulations. To seal samples (if any) and hand them to the enterprises for preservation, which must be produced to customs offices upon request;

c.2/ To inspect the goods if so required;

c.3/ To certify the completion of customs procedures, sign and seal all 4 declarations;

c.4/ To keep 1 declaration and documents submitted by enterprises, return to the exporting enterprises 3 declarations and documents produced by the exporting enterprises;

c.5/ To fax to the import customs branches the customs declaration already cleared from customs procedures.

7. The customs procedures for on-spot import

a/ After receiving 3 on-spot export-import declarations with the certification of the export procedure-carrying out customs office, the importing enterprises shall submit the customs dossiers to the customs branches where they have carried out the import procedures for carrying out the on-spot import procedures;

b/ Responsibilities of on-spot import procedure-carrying out customs branches:

b.1/ To receive the export custom declaration faxed by the export procedure-carrying out customs branch;

b.2/ To receive the customs dossier submitted by the importing enterprise;

b.3/ To register the declarations under regulations as suitable to each form of export or import, except the physical inspection of goods; to check tax calculation (if any). To certify the completion of customs procedures, sign and seal the customs declaration;

b.4/ To keep 1 declaration together with the documents submitted by enterprises, to return to enterprises 2 others plus the documents produced by the enterprises;

b.5/ To send written notices (made according to form No. 29/TBXNKTC/2013 in Appendix III to this Circular) to tax offices directly managing the importing enterprises for monitoring, or send e-notices if the import procedure-carrying out customs branches and local tax offices are connected online.

8. The on-spot export-import declarations are valid for finalization when:

They are fully filled in and bear certifications, signatures and seals of 4 parties: exporting enterprise, importing enterprise, on-spot export procedure-carrying out customs office and on-spot import procedure-carrying out customs office.

If the exporting enterprises and importing enterprises carry out the procedures at one customs branch, such customs branch shall sign for certification in both parts reserved for the export and import customs procedure-carrying out customs offices.

9. Processed products imported on-spot for domestic trading comply with separate guidance of the Ministry of Finance.

10.  The tax finalization, refund and non-collection comply with the guidance in Section 6, Part V of this Circular.

Article 46.Customs procedures for goods exported or imported for implementation of investment projects

1. The customs procedures for goods exported or imported to serve enterprises’ activities comply with the regulations applicable for each form of export or import guided in this Circular.

2. Customs procedures for goods imported to create fixed assets; materials, supplies, components and semi-finished products for production under preferential investment projects:

a/ For tax-exempt investment projects:

a.1/ To register the lists of tax-exempt goods with customs offices with regard to the import of goods to create fixed assets; materials, supplies, components and semi-finished products to serve production under preferential investment projects, which are eligible for import duty exemption.

The registration procedures comply with the guidance in Article 101 of this Circular.

a.2/ Import procedures:

a.2.1/ Enterprises may carry out the customs procedures for import of goods at the most convenient customs branch of the Customs Department with which they have registered the list of tax-exempt goods;

a.2.2/ The customs procedures comply with the guidance for commercial imports in Chapter I, Part II of this Circular and additionally with the guidance in Articles 101, 102 and 103 of this Circular.

b/ For investment projects not eligible for tax exemption:

The customs procedures are similar to those applicable to commercial imports; enterprises shall carry out the import procedures at the customs branches of localities where goods are imported or investment projects are implemented. Enterprises shall use the goods imported to serve investment projects for proper purposes stated in the investment certificates.

3. Liquidation and change of use purpose of tax-exempt imports

a/ The forms of liquidating or changing the use purpose of liquidation-liable goods, conditions on liquidation and dossiers of liquidation of tax-exempt imports of domestic investment projects and foreign-invested projects comply with Circular No. 04/2007/TT-BTM of April 4, 2007, of the Ministry of Trade (now the Ministry of Industry and Trade), guiding the export, import, processing and liquidation of imports and sale of products of foreign-invested enterprises;

b/ The procedures for liquidation and use purpose change must be carried out at the customs offices with which the customs declarations for tax-exempt imports are registered;

c/ Procedures for liquidation and use-purpose change

c.1/ Enterprises or liquidation boards shall send a document to the customs office with which the customs declarations of tax-exempt imports are registered, clearly stating the reason for liquidation or change of use purpose, appellations, signs and headings and quantities of goods, exempted tax amounts corresponding to the quantities of goods to be liquidated or have their use purpose changed in import declarations No.,,, dated…;

c.2/ In case of liquidation in the form of export, enterprises shall fill in export declarations corresponding to the form of export;

c.3/ In case of sale in Vietnamese market, donation, giving as gifts or presents or destruction, tax declaration and calculation must be made on a new customs declaration as guided in Clause 8, Article 11 of this Circular. Enterprises shall carry out the customs procedures according to the corresponding form of import and comply with the tax policies and import goods management policies applicable at the time of registering the import declarations, unless they have fully complied with the import management policies at the time of carrying out the tax-exempt import procedures.

In case of sale to enterprises eligible for import duty exemption, tax-exempt goods must be deducted from the tax-exempt goods reconciliation monitoring slips of the purchasing enterprises.

c.4/ In case of destruction, enterprises shall comply with the regulations of environmental management agencies.

Article 47.Customs procedures for goods transported into or out of transshipment ports

1. Customs procedures for goods transported into or out of transshipment ports for transport abroad

a/ For goods transported into or out of transshipment ports: Goods transshipment service enterprises shall make a list of goods stored in transshipment containers according to form No. 30/BKTrC/2013 in Appendix III to this Circular;

b/ A customs dossier comprises 2 originals of the list of goods stored in transshipment containers;

c/ For goods transported into or out of transshipment ports which are exempted from inspection, customs offices shall only check the number of containers, compare the serial numbers and signs of containers with the contents of the list. If detecting signs of violation, customs offices shall conduct inspections under regulations.

2. Liquidation of goods in transshipment containers

a/ Within 10 days after the goods are fully transported out of transshipment ports, the transshipment service enterprises shall liquidate the goods in transshipment containers;

b/ Quarterly, within 15 days after a reporting period, transshipment service enterprises shall report and compare with transshipment zone customs offices on the quantities of goods transported into, out of the transshipment zones and left therein.

3. The settlement of goods in stock at transshipment ports is the same as the settlement of imported goods left in stock at seaports as guided in the Ministry of Finance’s Circular guiding the handling of goods left in stock at Vietnamese seaports.

4. The General Director of Customs shall guide the professional process of customs management of goods transported into and out of transshipment ports.

Article 48.Customs procedures for goods transported into and out of non-tariff zones within economic zones and border gate economic zones; means of transport entering, exiting or transiting non-tariff zones

1. Principles for carrying out the customs procedures for, and customs inspection and supervision of goods transported into or out of non-tariff zones:

a/ Goods transported into or out of non-tariff zones must go through customs procedures and be subject to customs supervision. Goods will be subject to the customs procedures prescribed for their respective types;

b/ Customs procedures may be or may not be carried out for the following goods under Clause 2, Article 6 of the Regulation on operation of non-tariff zones in economic zones or border-gate economic zones promulgated together with the Prime Minister’s Decision No. 100/2009/QD-TTg of July 30, 2009: stationeries, foodstuff, food, consumer goods bought by enterprises in non-tariff zones from the inland for the administrative offices and daily-life activities of employees of enterprises;

c/ Customs procedures are not required for the following goods:

c.1/ Goods brought by inhabitants from the inland into Lao Bao special economic-trade zone and Cau Treo border-gate economic zone, which are not liable to the 0% value added tax rate under Clause 3, Article 9 of the Ministry of Finance’s Circular No.06/2012/TT-BTC of January 11, 2012, guiding a number of articles of the Value-Added Tax Law and the implementation of the Government’s Decree No.123/2008/ND-CP of December 8, 2008, and Decree No. 121/2011/ND-CP of December 27, 2011;

c.2/ Goods being cultivation, husbandry and aquatic products not yet processed into other products or only preliminarily processed, which are produced or caught by inhabitants and brought from Lao Bao special economic-trade zone and Cau Treo border-gate economic zone into the inland and not liable to value added tax under Clause 1, Article 4 of the Ministry of Finance’s Circular No. 06/2012/TT-BTC of January 11, 2012;

d/ Goods transported from Vietnamese inland or other functional quarters within the border-gate economic zones into non-tariff zones within border-gate economic zones, which are not eligible for opening customs declarations on exports under the Ministry of Finance’s Circular No. 116/2010/TT-BTC of August 4, 2010, amending and supplementing Circular No. 137/2009/TT-BTC of July 3, 2009, guiding a number of articles of the Prime Minister’s Decision No. 33/2009/QD-TTg of March 2, 2009, promulgating financial mechanisms and policies applicable to border-gate economic zones.

2. When transporting goods from abroad into non-tariff zones, customs declarants shall declare on the customs declarations under regulations the form of import at the non-tariff zone-managing customs branches, stating that these goods are not liable to tax (except goods not eligible for tax preferences for imports).

Enterprises in non-tariff zones that import materials and supplies for production and business shall register the names of products, names of imported materials and supplies, norms of materials and supplies for production of products with customs offices. The notification of norms of imported materials and supplies for production of goods to be sold in non-tariff zones must be made before reporting on import, export and stock. The notification of norms for the forms of processing and import of materials and supplies for export production complies with the regulations prescribed for these two forms.

If enterprises in non-tariff zones import materials, supplies and components for production of goods to be sold in the domestic market, customs declarants, when registering the import declarations, shall register and declare the names, quantities, types and import values of each kind of materials, supplies and components; names of products made in non-tariff areas for sale into the domestic market, which use materials, supplies and components imported from abroad.

3. Customs procedures for goods transported from the inland into non-tariff zones

a/ Inland enterprises shall carry out the customs procedures as prescribed for each form of export at the inland customs branches or non-tariff zone-managing customs branches. If the customs procedures are carried out at inland customs branches, the transport of goods to non-tariff zones complies with the regulations applicable to exports in border-gate transfer.

Enterprises in non-tariff zones shall carry out the customs procedures as prescribed for each form of import at the non-tariff zone-managing customs branches.

b/ The physical inspection of goods complies with regulations applicable to goods exported abroad. For goods transported into non-tariff zones for which customs procedures are carried by customs branches other than the non-tariff zone-managing customs branches, if signs of violation are found, the non-tariff zone-managing customs branches shall re-inspect the goods under regulations.

4. Customs procedures for goods exported abroad from non-tariff zones

a/ For goods exported abroad from non-tariff zones, customs procedures prescribed for each form of export must be carried out;

b/ For goods imported from abroad or the inland, then exported abroad in their original state by enterprises in non-tariff zones, when carrying out the export procedures, the enterprises shall write on the export declarations “exporting goods in their original state imported from abroad in declaration No...” or “exporting goods in the original state imported from the inland in declaration No...”, enclosed with the initial import declarations and detailed lists (if any).

5. Customs procedures for goods transported from non-tariff zones into the inland

a/ Enterprises in non-tariff zones shall carry out the export procedures as prescribed for each form of export; inland enterprises shall carry out the import procedures as prescribed for each form of import. They shall carry out the export or import procedures at the non-tariff zone-managing customs branches;

b/ To provide bases for inland enterprises to calculate payable tax amounts when carrying out the import procedures, enterprises in non-tariff zones shall:

b.1/ In case products for export are made at non-tariff zones, before carrying out the export procedures, notify the customs offices of the norms of materials, supplies and components imported from foreign countries which constitute these products.

When carrying out the export procedures, write on the export declarations the names and types of imported materials, supplies and components constituting such products.

b.2/ In case goods are imported from abroad or the inland, then exported in the original state into the inland by the enterprises in non-tariff zones, when carrying out the procedures for export into the inland, write on the export declarations “exporting the original state the goods imported from the inland in declaration No...” enclosed with the initial import declarations and detailed lists (if any).

b.3/ Fully provide the inland enterprises with dossiers and data for the latter to calculate payable tax amounts.

6. Goods processing between non-tariff zone enterprises and inland enterprises

a/ If inland enterprises undertake the goods processing for non-tariff zone enterprises: Inland enterprises shall notify the processing contracts and carry out the customs procedures for such processing contracts at the non-tariff zone-managing customs branches. The customs procedures are the same as those prescribed for processing for foreign traders;

b/ If inland enterprises place goods processing orders for non-tariff zone enterprises: Inland enterprises shall notify the processing contracts and carry out the customs procedures for such processing contracts at the non-tariff zone-managing customs branches or inland customs branches. The customs procedures are the same as those prescribed for inland enterprises placing orders for processing overseas.

7. Customs procedures for goods bought at shops or department stores in non-tariff zones and brought into the inland

a/ Customers buying goods at shops or department stores in non-tariff zones and carrying them into the inland shall pay tax under regulations on imported goods before transporting goods out of the non-tariff zones.

For customers eligible for buying duty-free goods within prescribed quotas in non-tariff zones within border-gate economic zones, who buy goods and carry them into the inland according to the Prime Minister’s Regulation on operation of non-tariff zones, they shall pay tax on goods quantities in excess of the duty-free quotas;

b/ Customers buying goods at shops or department stores in non-tariff zones shall produce their identify cards (ID) or passports (for foreigners) to sellers when buying goods and customs officers posted at the gates when carrying goods out of the non-tariff zones;

c/ When selling goods to customers, sellers shall issue sale invoices and record in sale monitoring books the names, addresses, ID numbers or passport numbers of goods buyers; quantities, unit prices and values of goods sold to each buyer;

d/ Depending on the specific conditions at each non-tariff zone, tax on goods bought in non-tariff zones and carried into the inland may be collected in either of the following ways:

d.1/ Goods buyers declare and pay tax at the non-tariff zone gate customs offices:

d.1.1/ Before carrying the goods out of the non-tariff zones, goods buyers shall declare the taxable goods in the non-commercial declarations; submit the declarations, produce their IDs, goods and sale invoices (copies issued to buyers) to non-tariff zone gate customs officers;

d.1.2/ Non-tariff zone gate customs offices shall check the IDs of goods carriers against the carriers; check goods against the customs declarations and sale invoices; if they all match, they shall write tax receipts and collect tax, and remit tax amounts into the state budget according to regulations.

d.2/ Non-tariff zone-managing customs branches authorize goods sellers to collect tax:

d.2.1/ The authorization of goods sellers to collect tax must be made under Clause 2, Article 3 of Decree No. 83/2013/ND-CP. The responsibilities of the authorized party and tax administration agencies must comply with Clauses 3 and 4, Article 3 of Decree No. 83/2013/ND-CP.

d.2.2/ When carrying goods out of the non-tariff zones, goods buyers shall produce their IDs, goods, purchase invoices and tax receipts to the non-tariff zone gate customs offices.

d.2.3/ The non-tariff zone gate customs offices shall check the IDs produced by goods carriers against the carriers; check goods against sale invoices and tax receipts. If detecting any differences between the goods carriers and the photos in the IDs; between the ID serial numbers written in sale invoices, tax receipts and serial numbers of the IDs produced by the goods carriers; between goods taken out and goods written in sale invoices or tax receipts, they shall make written records of the violations and handle them strictly in accordance with law.

8. Customs supervision of goods transported out of, into, across non-tariff zones

a/ Non-tariff zones must have surrounding fences and customs control gates to supervise goods transported out of and into the non-tariff zones.

b/ Goods transported out of or into non-tariff zones, goods transported across non-tariff zones for import into the inland or export abroad must go through the customs control gates and be supervised by customs officers posted at these gates.

c/ Goods imported from abroad into the inland or goods exported abroad from the inland, when being transported through non-tariff zones, must be transported according to the routes prescribed by the non-tariff zone-managing customs offices in coordination with the non-tariff zone management boards.

9. Customs procedures and customs supervision applicable to means of transport on entry, exit or transit through non-tariff zones (for non-tariff zones attached to land border gates) comply with the regulations applicable to means of transport entering, exiting or transiting Vietnam.

10. Import-export-stock reporting:

a/ Production and business enterprises in non-tariff zones shall biannually report to customs offices on the goods exported and imported in the period and make export-import-stock reports; the time limit for submitting the report is 15 days after the reporting period.

A report dossier comprises:

a.1/ A list of declarations on import of materials and supplies in the reporting period: 2 originals (made according to form No. 31/HSBC-PTQ/2013 in Appendix III to this Circular);

a.2/ A list of invoices of materials and supplies bought in the non-tariff zone in the reporting period (if any): 2 originals (made according to form No. 32/HSBC-PTQ/2013 in Appendix III to this Circular);

a.3/ A list of declarations on export of products in the reporting period: 2 originals (made according to form No. 33/HSBC-PTQ/2013 in Appendix III to this Circular);

a.4/ A list of sale invoices of products in the non-tariff zone in the reporting period (if any): 2 originals (made according to form No. 34/HSBC-PTQ/2013 in Appendix III to this Circular);

a.5/ A list of materials and supplies used for production of products exported and sold in the non-tariff zone in the reporting period: 2 originals (made according to form No. 35/HSBC-PTQ/2013 in Appendix III to this Circular);

a.6/ A report on materials and supplies imported, exported and left in stock in the reporting period: 2 originals (made according to form No. 36/HSBC-PTQ/2013 in Appendix III to this Circular;

a.7/ The purchase invoices (copies) of raw materials and supplies purchased in the non-tariff zone in the reporting period (if any);

a.8/ The sale invoices (copies) of products sold in the non-tariff zone in the reporting period (if any).

b/ Enterprises engaged only in trading in non-tariff zones shall send monthly reports on goods exported and imported in the reporting period and export-import-stock reports to the non-tariff zone-managing customs offices. The deadline for submitting the reports is the 15^thday of the following month.

A report dossier comprises:

b.1/ A list of goods imported from abroad in the reporting period: 2 originals (made according to form No. 37/HSBC-PTQ/2013 in Appendix III to this Circular);

b.2/ A list of goods imported from the inland in the reporting period (if any): 2 originals (made according to form No. 38/HSBC-PTQ/2013 in Appendix III to this Circular);

b.3/ A list of goods bought in the non-tariff zone in the reporting period (if any): 2 originals (made according to form No. 39/HSBC-PTQ/2013 in Appendix III to this Circular);

b.4/ A list of goods sold in the non-tariff zone in the reporting period: 2 originals (made according to form No. 40/HSBC-PTQ/2013 in Appendix III to this Circular);

b.5/ A list of goods exported in the reporting period (if any): 2 originals (made according to form No. 41/HSBC-PTQ/2013 in Appendix III to this Circular);

b.6/ A report on goods imported, exported and left in stock in the reporting period: 2 originals (made according to form No. 42/HSBC-PTQ/2013 in Appendix III to this Circular);

b.7/ Invoices (copies) of goods purchased and sold in the non-tariff zone in the reporting period (if any).

c/ For processed goods: To comply with the regulations on processing.

d/ Enterprises engaged in production, trading and processing shall make separate reports for each activity.

dd/ Checking import-export-stock reports:

dd.1/ Enterprises shall take responsibility for their goods declarations and use.

dd.2/ Customs offices shall receive the import-export-stock reports submitted by enterprises and customs officers receiving these reports shall write the date of receipt; sign and append their seals to these reports.

Based on assessments of the seals law observance by enterprises, the non-tariff zone-managing customs branches shall conduct probability inspections to assess the law observance by enterprises; check in-stock goods if necessary; if detecting violations of illegally selling goods imported into non-tariff zones in the inland, they shall handle the violations in accordance with law.

If detecting that goods are carried from the inland into non-tariff zones, then illegally brought back into the inland, the non-tariff zone-managing customs offices shall notify the Tax Departments in the localities where the inland enterprises transporting goods into the non-tariff zones are located for coordinated handling.

Article 49.Customs procedures for imports and exports of export-processing enterprises

1. General principles

a/ Customs procedures for imports and exports of export-processing enterprises are applicable to export-processing enterprises inside and outside export-processing zones;

b/ Export-processing enterprises’ imports or exports must go through customs procedures applicable to each mode of importation or exportation. In case of carrying out e-customs procedures, the mode of importation or exportation mentioned at this Point complies with the provisions of the Ministry of Finance’s Circular No. 196/2012/TT-BTC of November 15, 2012, if such provisions are available;

c/  Export-processing enterprises may opt to carry out or not to carry out customs procedures for goods being stationery, food, foodstuffs and consumer goods (including also personal protective clothes: trousers, coats, caps, shoes, boots and gloves) purchased from the inland to serve the operation of their administrative apparatus and day-to-day activities of their employees;

d/ Goods transferred within an export-processing enterprise are not subject to customs procedures;

dd/ Export-processing enterprises’ imports may be transferred from the border gates of importation to the enterprises and their exports, from the enterprises to the border gates of exportation;

e/ Customs offices managing export-processing zones or export-processing enterprises shall conduct direct supervision at the gates of export-processing zones or export-processing enterprises only when necessary under decisions of Customs Department directors.

g/ In a reporting period, export-processing enterprises shall notify material and supplies use norms (including also loss rates) to customs offices no later than the deadline for submission of input-output-inventory reports.

2. Customs clearance places

a/ For imports and exports: Customs procedures shall be carried out at customs branches managing export-processing enterprises;

b/ For goods processed between export-processing enterprises and inland enterprises: Inland enterprises shall carry out customs procedures at customs branches managing export-processing enterprises or customs branches of localities in which inland enterprises’ production establishments are located;

c/ For goods processed between two export-processing enterprises: Enterprises undertaking the processing contracts shall notify processing contracts to and carry out customs procedures at their managing customs branches.

3. Customs procedures for imports and exports of export-processing enterprises

a/ For imports from abroad:

a.1/ For goods imported to form fixed assets: Based on export-processing enterprise directors’ written requests for import of goods to form fixed assets enclosed with a list (specifying names, quantity and categories of goods), customs offices shall clear import procedures according to regulations applicable to commercial imports under contracts. This provision also applies to export-processing enterprises carrying out e-customs procedures under Chapter VI of the Ministry of Finance’s Circular No. 196/2012/TT-BTC of November 15, 2012;

a.2/ For materials and supplies imported for export production, export-processing enterprises shall carry out import procedures as for commercial imports under contracts, except duty declaration and calculation.

b/ For goods exported abroad by export-processing enterprises: Export-processing enterprises shall carry out export procedures as for commercial exports under contracts, except duty declaration and calculation;

c/ For goods sold by export-processing enterprises to the inland:

c.1/ For products produced and sold to the inland by export-processing enterprises: Export-processing enterprises and inland enterprises shall carry out customs procedures using the on-spot import or export declaration form;

c.2/ For scraps and defective products permitted to be sold to the inland: Inland enterprises shall carry out import procedures as for commercial imports under contracts.

d/ For goods sold by inland enterprises to export-processing enterprises: Export-processing enterprises and inland enterprises shall carry out customs procedures using the on-spot import or export declaration form;

dd/ Processed goods:

dd.1/ For goods processed by inland enterprises for export-processing enterprises, inland enterprises shall carry out customs procedures according to regulations on goods processing for foreign traders;

dd.2/ For goods processed by export-processing enterprises for inland enterprises, inland enterprises shall carry out customs procedures according to regulations on overseas processing ordering;

dd.3/ Goods processed for foreign traders comply with the guidance of the Ministry of Finance.

e/ For goods traded between export-processing enterprises:

e.1/ Goods traded between export-processing enterprises in different export-processing zones, customs procedures comply with the guidance on customs procedures for on-spot imports and exports (except provisions on conditions for on-spot import and export);

e.2/ Customs procedures are not required for goods traded between export-processing enterprises in the same export-processing zone;

e.3/ For goods transferred between export-processing enterprises in different export-processing zones which belong to the same group or company system, enterprises may opt not to carry out customs procedures or to carry out customs procedures applicable to on-spot imports and exports (except provisions on conditions for on-spot import and export). This provision also applies to export-processing enterprises carrying out e-customs procedures under Chapter VI of the Ministry of Finance’s Circular No. 196/2012/TT-BTC of November 15, 2012.

g/ For their goods brought into the inland for repair, export-processing enterprises are not required to register customs declarations but shall make a notice of names and quantity of goods and the reason and time for repair. Customs offices shall monitor and make certification when goods are brought back to export-processing enterprises. Past the registered time limit for repair, goods which are not brought back shall be handled under the guidance on goods with changed use purposes;

h/ The destruction of scraps and defective products complies with law and is subject to customs supervision, except the case of preliminarily destroying scraps and defective products at export-processing enterprises before official destruction. This provision also applies to export-processing enterprises carrying out e-customs procedures under Chapter VI of the Ministry of Finance’s Circular No. 196/2012/TT-BTC of November 15, 2012;

i/ Customs procedures for goods of export-processing enterprises temporarily imported for repair or warranty and re-exported later are those for exported goods which are returned, except duty declaration and calculation.

4. Export-processing enterprises’ reporting on input-output-inventory of materials and supplies

a/ Quarterly, export-processing enterprises shall submit input-output-inventory reports no later than the 15^thof the first month of the subsequent quarter to their managing customs branches. Prioritized enterprises already recognized by the General Department of Customs may submit input-output-inventory reports according to calendar year at the end of the first quarter of the subsequent year or on a quarterly basis;

b/ Reports on input-output-inventory of imported materials and supplies (form No. 43/HSBC-CX/2013 in Appendix III to this Circular): To submit 2 originals.

Particularly for consumer goods imported or purchased from the inland to serve operations of workshops or production activities, for which use norms per product unit cannot be elaborated (for example: cloths and tissues for cleaning machinery and equipment, petrol and oil for operating generators, mould cleansing oil and faulty product markers) or to serve operations of administrative apparatuses or day-to-day activities of employees:

Export-processing enterprises are not required to classify such goods according to their use purposes or origin, register lists of goods, set management codes and make monthly input-output-inventory reports to customs offices.

Export-processing enterprises located outside export-processing zones shall make and submit quarterly reports on total quantity of consumer goods imported and purchased from the inland in the quarter.

Export-processing enterprises shall take responsibility for their declaration and proper use of goods.

These provisions also apply to export-processing enterprises carrying out e-customs procedures under Chapter VI of the Ministry of Finance’s Circular No. 196/2012/TT-BTC of November 15, 2012.

c/ Examination of input-output-inventory reports:

c.1/ The customs officer who receives an input-output-inventory report submitted by an export-processing enterprise shall sign, append his/her seal and write down the date of receipt therein. On the basis of the assessment of the export-processing enterprise’s law observance, its managing customs branch shall conduct random inspection to assess the enterprise’ law observance;

c.2/ If detecting any signs of trade frauds, within 30 days or 60 days after an export-processing enterprise submits a quarterly or an annual input-output-inventory report, its managing customs branch shall transfer the dossier to the Post-Customs Clearance Inspection Department for inspection according to regulations.

d/ When export-processing enterprises are transformed into ordinary enterprises and vice versa, imported assets and goods are handled as follows:

d.1/ In case an export-processing enterprise is transformed into an enterprise ineligible for the export-processing regime:

d.1.1/ Liquidating imported assets and goods;

d.1.2/ Identifying imported assets and goods left in stock;

d.1.3/ Collecting duties according to regulations;

d.1.4/ Imported assets and goods must be identified and liquidated before the transformation of the enterprise.

d.2/ In case an enterprise ineligible for the export-processing regime is transformed into an export-processing enterprise:

d.2.1/ The enterprise shall report on the quantity of materials and supplies left in stock; the customs office shall examine materials and supplies left in stock and handle taxes according to regulations;

d.2.2/ The enterprise shall fully pay tax and fine arrears to the customs office before it is transformed. The customs office shall apply tax and customs policies applicable to export-processing enterprises to the enterprise only after the latter fulfils tax and customs obligations.

5. Liquidation of machinery, equipment and vehicles for the formation of fixed assets

a/ Forms of liquidation, goods to be liquidated, liquidation conditions, and dossiers of liquidation of duty-free imports comply with Circular No. 04/2007/TT-BTM;

b/ Liquidation procedures shall be carried out at customs branches managing export-processing enterprises;

c/ Liquidation procedures

c.1/ An enterprise or a liquidation board shall prepare a document stating the liquidation reason, names, codes and quantity of goods to be liquidated and serial numbers and dates of the import declarations of those goods and send this document to the customs branch managing the export-processing enterprise;

c.2/ For liquidation through export, the enterprise shall open an export declaration. For liquidation through sale in the Vietnamese market, or donation or giving as gift or present, it shall open a declaration according to the respective form of liquidation and pay duty under regulations;

c.3/ In case of destruction, the enterprise shall comply with regulations of environmental management agencies and such destruction is subject to customs supervision.

6. When completing work construction, export-processing enterprises shall submit to customs offices reports on settlement of goods imported for work construction.

Customs offices shall examine and handle according to regulations applicable to redundant or improperly used imports.

7. Customs supervision of export-processing enterprises’ wastes transported to other places for destruction

a/ Responsibilities of export-processing enterprises:

a.1/ To notify their managing customs branches of the time of handing over such wastes to transporters;

a.2/ To transport and destroy wastes in accordance with the Law on Environmental Protection and its guiding documents.

b/ Responsibilities of customs branches managing export-processing enterprises:

After receiving export-processing enterprises’ notices, their managing customs branches shall:

b.1/ Examine hazardous waste management permits (these permits must remain valid and wastes to be treated must be those allowed for transportation and treatment as stated in the permits) and contracts on transportation and treatment of wastes;

b.2/ Examine wastes before they are handed over to transporters (these wastes must not contain usable scraps and defective products and other goods);

b.3/ Supervise the loading of wastes onto vehicles and the transport of wastes out of export-processing zones or export-processing enterprises;

b.4/ Make inspection and supervision records which are certified by export-processing enterprises and waste transporters (clearly indicating the time of inspection and supervision and names of customs officers conducting the inspection and supervision; names of export-processing enterprises having wastes and their representatives who hand over wastes to transporters; enterprises signing contracts on transportation and treatment of wastes; waste transporters; names of wastes; inspected and supervised contents, etc.). A record shall be made in three copies, each party keeps one copy;

b.5/ Customs sealing is not required for vehicles transporting wastes to places outside export-processing zones or export-processing enterprises for treatment.

c/ When receiving documents on hazardous wastes from hazardous waste management practitioners, export-processing enterprises (owners of waste sources) shall make a copy of sheet 4 and send it to their managing customs branches. When examining input-output-inventory dossiers in detail or irregularly, customs branches managing export-processing enterprises shall examine registers of owners of hazardous waste sources and documents on hazardous wastes kept at export-processing enterprises.

8. Goods of foreign-invested export-processing enterprises that exercise the import right and export right comply with the Government’s Decree No. 23/2007/ND-CP of February 12, 2007, and the Ministry of Industry and Trade’s regulations.

Customs procedures, tax policies and policies on management of imports and exports are those applicable to commercial imports and exports under contracts. In addition, the Ministry of Finance guides the exercise of the import right and export right of export-processing enterprises as follows:

a/ Export-processing enterprises exercising the export right, import right and distribution right must account these activities separately from production activities. Domestic taxes shall be declared under the Ministry of Finance’s guidance;

b/ Customs procedures for goods imported by export-processing enterprises exercising the import right:

b.1/ For goods sold to inland enterprises, customs procedures are not required;

b.2/ For goods sold to other export-processing enterprises, customs procedures comply with Point e, Clause 3 of this Article.

c/ Customs procedures for goods of export-processing enterprises exercising the export right:

c.1/ For goods purchased from the inland for export: To comply with Point d, Clause 3 of this Article;

c.2/ For goods purchased from other export-processing enterprises for export: To comply with Point e, Clause 3 of this Article;

c.3/ For goods exported abroad: To comply with Point b, Clause 3 of this Article; export-processing enterprises shall declare and calculate export duty (if any).

9. Customs inspection and supervision of export-processing enterprises which rent warehouses to store their goods under Clause 1, Article 19 of Decree No. 108/2006/ND-CP:

a/ Export-processing enterprises may rent warehouses in industrial parks, export-processing zones, hi-tech parks and economic zones in the localities under the management of their managing customs branches to store materials, supplies and finished products serving their production activities;

b/ Before goods are brought into warehouses, export-processing enterprises shall notify their managing customs branches of the locations and areas of warehouses, infrastructure conditions and mechanism for management and supervision of goods warehousing and ex-warehousing and warehouse rent time. Goods may be brought into warehouses only after obtaining written approval of customs branches managing export-processing enterprises;

c/ Export-processing enterprises shall manage and monitor goods brought into and out of warehouses and send input, output and inventory reports on the 15^thof the first month of the subsequent quarter to their managing customs branches;

d/ Quarterly, customs branches managing export-processing enterprises shall inspect the actual state of goods consigned to warehouses or conduct irregular inspections if doubting that goods consigned to warehouses violate regulations or are sold to the inland.

Article 50.Customs procedures for goods brought into and out of tax-suspension warehouses

1. Goods brought into and out of a tax-suspension warehouse are materials imported for export production by the enterprise having that warehouse, for which duty payment is not yet required.

Enterprises shall make separate customs declarations for imported materials eligible for tax suspension and register the quantity of exported products in a planning year.

2. Customs procedures for imported materials brought into tax-suspension warehouses comply with regulations applicable to materials imported for export production. Goods stored in tax-suspension warehouses which are damaged or deteriorated in quality, failing to meet production requirements, shall be handled under Article 29 of Decree No. 154/2005/ND-CP.

3. Input-output-inventory reporting

a/ At the year end (December 31 every year), not later than January 31 of the subsequent year, enterprises shall make a general list of import customs declarations and total quantity of materials imported under the tax suspension regime, a general list of export customs declarations and total quantity of materials constituting exported, re-exported and destroyed products, and send them to customs offices.

b/ Monitoring of input-output-inventory reports and procedures for duty payment and refund for imports brought into tax-suspension warehouses

b.1/ The monitoring of reports on input-output-inventory of materials and supplies of tax-suspension warehouses is as for monitoring of input-output-inventory of materials and supplies of export-processing enterprises provided in Clause 4, Article 49 of this Circular;

b.2/ If the quantity of materials constituting exported and re-exported products is smaller than that of materials imported under the tax suspension regime, enterprises shall pay duty for the quantity of not-yet-exported materials under import customs declarations for which the duration from the date of registration with customs offices to the date of reporting is more than 365 days. The quantity of materials for which duty payment has not been due may be carried forward to the subsequent fiscal year for input-output-inventory reporting;

b.3/ The quantity of materials for which duty has been paid but which is then used for production and export may be considered for duty refund like materials imported for export production guided in Article 117 of this Circular.

4. Inspection and supervision of tax-suspension warehouses

a/ The inspection and supervision of tax-suspension warehouses comply with Clause 4, Article 27 of Decree No. 154/2005/ND-CP;

b/ Once every year, customs branches managing tax-suspension warehouses shall inspect enterprises in managing tax-suspension warehouses, covering:

b.1/ Inspection of the implementation of Clause 1, Article 27 of Decree No. 154/2005/ND-CP;

b.2/ Inspection of books and documents monitoring importation and exportation; and warehousing and ex-warehousing;

b.3/ Physical inspection of the quantity of goods left in stock, comparison of goods actually left in stock with figures recorded in books tax suspension warehouse monitoring books and documents and enterprises’ input-output-inventory reports.

c/ Irregular inspection of goods left in stock shall be conducted when:

c.1/ Enterprises are reported to sell materials and supplies eligible for tax suspension to the inland;

c.2/ There are doubts about norm-related frauds which require the application of the measure to inspect norms at enterprises.

Article 51.Customs procedures for goods brought into and out of container freight stations (CFS)

1. Imports brought into CFSs include:

a/ Imports which have not been cleared from customs procedures and are currently under customs supervision and management.

b/ Exports which have been cleared from customs procedures or exports  for which customs declarations have been registered at outside-border gate customs branches but their physical inspection is conducted at CFSs.

2. Services allowed in CFSs

a/ For exports: Goods packing, re-packing, arrangement and re-arrangement;

Goods in transit or transshipment may be brought into CFSs inside ports for division, separation or packing in export containers or packing with Vietnamese exports;

b/ For imports: To be permitted for division and separation for clearance of import procedures or packing in containers of other export shipments to a third country.

3. Time limit for goods storage in CFSs

Goods may be stored in a CFS for at most 90 days after the date they are brought into such CFS. Past this time limit, the customs branch managing the CFS shall require the warehouse owner to bring goods out of the CFS or handle goods as imports which are abandoned, missing or mistaken or for which the customs declaration time limit has expired as prescribed in Article 45 of the Customs Law.

4. Customs supervision:

a/ CFSs, goods stored in CFSs, vehicles entering and leaving CFSs and services provided in CFSs are subject to regular customs inspection and supervision;

b/ Customs supervision of goods and vehicles brought into and out of CFSs and supervision of the provision of services in CFSs comply with Articles 13 and 14 of Decree No. 154/2005/ND-CP, Article 18 of this Circular and guiding documents of the General Department of Customs.

5. Goods brought from CFSs to the inland (including also goods from abroad not yet cleared from import procedures and goods cleared from export procedures and consigned into CFSs) must go through customs procedures according to corresponding modes.

Article 52.Customs procedures for machinery, equipment, construction vehicles, moulds and samples temporarily imported for re-export or temporarily exported for re-import serving production, work construction, project implementation or testing

1. Customs procedures for machinery, equipment, construction vehicles, moulds and samples temporarily imported for re-export or temporarily exported for re-import serving production, work construction, project implementation or testing comply with regulations applicable to commercial imports and exports.

For goods temporarily imported for re-export and temporarily exported for re-import eligible for duty exemption under Article 100 of this Circular, annually (365 days after the date of registration of temporary import/export declaration), customs declarants shall notify customs branches which have carried out temporary import/export procedures of the remaining use time of temporarily imported/exported machinery, equipment construction vehicles, moulds and samples for the latter to monitor and liquidate dossiers.

2. Procedures for temporary import and re-export/temporary export and re-import shall be carried out at border-gate customs branches.

In case goods are re-imported/re-exported through a border gate other than the border gate of temporary export/import, the customs declarant shall submit a copy of the temporary import/export customs declaration and produce the original for comparison.

3. The time limit for temporary import for re-export and temporary export for re-import complies with the agreements between traders and their partners and must be registered with border-gate customs offices. Past the time limit for temporary import/export, customs declarants shall immediately re-export/re-import goods and liquidate dossiers with customs branches which have carried out temporary import/export procedures.

When it is necessary to extend the time limit for temporary import/export for production, work construction, project implementation or testing, before this time limit expires, the customs declarant shall make a written request for extension and, if such request is approved by the directors of the customs branches which have carried out temporary import/export procedures, may extend the time limit for temporary import/export as agreed with the partner. Past the time limit for temporary import/export, customs declarants that fail to conduct re-export/re-import shall be handled in accordance with law.

4. Temporarily importing or exporting enterprises which request in writing to transfer the ownership (through purchase, sale, presentation or donation) of machinery, equipment, construction vehicles, moulds and samples temporarily imported for re-export or temporarily exported for re-import to serve production, work construction, project implementation or testing shall carry out customs procedures applicable to temporarily imported/exported goods sold to the inland, specifically as follows:

a/ Enterprises file a written request for transfer of ownership and send it to the customs branches which have carried out temporary import/export procedures.

b/ After being approved by customs branch leaders, enterprises shall carry out customs procedures applicable to commercial imports and are subject to tax policies and import/export management policies effective at the time of registration of the ownership transfer declaration (except cases in which all prescribed management policies have been implemented at the time of temporary import/export).

Article 53.Customs procedures in other cases of temporary import for re-export or temporary export for re-import

1. For accessories, spare parts or utensils temporarily imported without contracts to serve the repair or operation of foreign seagoing ships or aircraft:

a/ Customs declarants

a.1/ For temporarily imported accessories, spare parts or utensils carried by aircraft or seagoing ships on entry, customs declarants are aircraft or ship operators;

a.2/ For accessories, spare parts or utensils pre- or post-consigned to addresses of shipping agents, customs declarants are those agents.

b/ Customs procedures and tax policies comply with Articles 73 and 100 of this Circular.

2. Customs procedures for foreign seagoing ships and aircraft temporarily imported for repair or maintenance in Vietnam and later re-exported:

Foreign organizations’ or individuals’ seagoing ships or aircraft temporarily imported into Vietnam for repair or maintenance must go through customs procedures applicable to commercial imports and exports. In addition, due to the characteristics of this form, the following specific regulations must be complied with:

a/ Customs dossiers:

In addition to the customs dossier as prescribed, the customs declarant shall submit to customs offices 1 copy of the contract on provision of the seagoing ship or aircraft repair or maintenance service signed with the foreign partner;

b/ Customs clearance places: Customs branches of the border gates of  temporary import;

c/ The time limit for temporary import for re-export complies with the contract on provision of the seagoing ship or aircraft repair or maintenance service signed with the foreign partner and must be registered with the border-gate customs branch;

d/ Customs inspection and supervision:

d.1/ When carrying out temporary import procedures, the customs branch of the border gate of temporary import shall compare information on the declaration form with the actual state of the temporarily imported ship or aircraft and supervise the customs declarant in taking the ship or aircraft from the port pier or aircraft stand to the repair and maintenance station;

d.2/ When carrying out re-export procedures, the customs branch of the border gate of temporary import shall compare information on the re-export declaration with those on the temporary import declaration and the actual state of the re-exported seagoing ship or aircraft and supervise the customs declarant in taking the ship or aircraft from the repair and maintenance station to the port pier or aircraft stand till it is actually re-exported abroad.

Particularly for accessories, spare parts and utensils temporarily imported to serve the repair or operation of seagoing ships or aircraft under contracts on provision of the seagoing ship or aircraft repair or maintenance service signed with foreign partners, customs procedures shall be carried out under regulations applicable to the form of processing guided by the Ministry of Finance.

3. Customs procedures for goods temporarily imported for re-export or temporarily exported for re-import for display at trade fairs and exhibitions or product introduction comply with regulations applicable to commercial imports or exports. In addition, due to the characteristics of this form, the following specific regulations must be complied with:

a/ Customs dossiers: In addition to the papers required for commercial imports and exports, a copy of the decision on the organization of a fair or an exhibition, certified by a competent agency, must be submitted (except for goods temporarily imported for product introduction and later re-exported);

b/ Customs procedures for goods temporarily imported/exported for display at fairs or exhibitions and later re-exported/re-imported shall be carried out at customs branches of localities where fairs or exhibitions are organized or at border-gate customs branches;

c/ Time limit for re-export or re-import

c.1/ Goods temporarily imported for display at a trade fair or an exhibition in Vietnam must be re-exported within 30 days after the end of the fair or exhibition or product introduction event as registered with customs offices;

c.2/ The time limit for temporary export of goods for display at an overseas trade fair or exhibition is one year after the goods are temporarily exported. Past this time limit, goods which are not re-imported will be liable to duty and other financial obligations under Vietnamese law.

d/ The sale and donation of goods at fairs, exhibitions or product introduction events comply with Articles 136 and 137 of the Commercial Law and other relevant laws.

4. Goods temporarily imported for re-export and temporarily exported for re-import in service of conferences, seminars, scientific researches, education, sports tournaments, cultural or art performances or medical examination and treatment:

a/ Customs procedures comply with regulations applicable to non-commercial imports and exports. In case goods are re-imported/re-exported through a border gate other than the border gate of temporary export/import, the customs declarant shall submit a copy of the temporary export/import customs declaration and produce the original for comparison;

b/ Temporary import and re-export/temporary export and re-import procedures shall be carried out at border-gate customs branches;

c/ The time limit for temporary import and re-export/temporary export and re-import must be registered with customs offices but not exceed 90 days from the date of registration of the temporary import and re-export/ temporary export and re-import customs declaration which is made based on the certification of agencies organizing conferences, seminars, scientific researches, education, sports tournaments, cultural or art performances or charity medical examination and treatment events.

5. Goods temporarily exported for overseas warranty or repair and later re-imported

a/ In case the contract provides a warranty or repair term, customs procedures comply with Article 14 of the Government’s Decree No. 12/2006/ND-CP of January 23, 2006, and the guidance of the Ministry of Industry and Trade;

b/ In case there is no contract or the contract does not provide a warranty or repair term, customs procedures are those applicable to non-commercial imports and exports specified in Part III of this Circular;

c/ Temporary export and re-import procedures are carried out at customs branches of the border gates of temporary export. In case temporary export and re-import are not carried out at the same border gate, procedures for transfer to the border gate where export procedures have been carried out may apply.

6. Goods temporarily imported by subcontractors, organizations or individuals for petroleum activities under lease, borrowing or service provision contracts and later re-exported

a/ Customs clearance places:  Customs branches of the border gates of temporary import. In case temporary export and re-import are not carried out at the same border gate, procedures for border gate transfer may apply;

b/ Customs procedures are those applicable to commercial imports and exports. In addition, customs declarants shall submit:

b.1/ A written request made by the organization or individual conducting petroleum search, exploration and exploitation activities: 1 original;

b.2/ The petroleum service or goods supply contract: 1 copy;

c/ Time limit for temporary import and re-export:

The time limit for temporary import and re-export conforms with agreements between traders and their partners and must be registered with customs offices. When it is necessary to extend the time limit for temporary import and re-export to further carry out petroleum activities, customs declarants shall send a written request for extension under agreement with their partners to customs branches which have carried out temporary import procedures.

d/ Customs inspection and supervision:

d.1/ When carrying out temporary import procedures, the customs branch  of the border gate of temporary import shall compare information on the temporary import declaration with the actual state of equipment imported for petroleum exploitation;

d.2/ When carrying out re-export procedures, the customs branch of the border gate of temporary import shall compare information on the temporary export declaration with those on the temporary import declaration and the actual state of re-exported goods.

7. Liquidation of temporary import and re-export/temporary export and re-import declarations

a/ Customs branches which have carried out temporary import or temporary export procedures shall monitor, manage and liquidate declarations of temporarily imported or temporarily exported goods. In case goods are re-exported through a border gate other than that of temporary import, after completing re-export procedures, the customs branch carrying out re-export procedures shall send a written notice, enclosed with a copy of the customs declaration, to the customs branch which has carried out temporary import procedures for dossier liquidation according to regulations. In case goods are re-imported through a border gate other than the border gate of temporary export, after completing re-import procedures, the customs declarant shall contact the customs branch which has carried out temporary export procedures for dossier liquidation according to regulations.

b/ The time limit for liquidation is that for submission of tax refund or tax non-collection dossiers specified in Clause 2, Article 127 of this Circular.

c/ A liquidation dossier comprises:

c.1/ A written request for liquidation of the temporary import or temporary export declaration, specifying the temporary import declaration and re-export declaration, the quantity of temporarily imported and the corresponding quantity of re-exported goods, which are similar to the case of temporary export for re-import;

c.2/ The temporary import declaration and re-export declaration or temporary export declaration and re-import declaration;

c.3/ Other relevant papers.

8. Procedures for sale in the inland

Customs procedures for goods temporarily imported for re-export under this Article which are sold to the Vietnamese market comply with Clause 4, Article 52 of this Circular.

In case goods temporarily imported for display at fairs and exhibitions are sold or donated at such fairs or exhibitions instead of being re-exported, within 30 days after the fairs or exhibitions end, enterprises shall declare and pay duty to customs branches with which temporary import declarations have been registered using the non-commercial import declaration form.

Article 54.Customs procedures for temporary import or temporary export of rotated goods containers

1. These containers include:

a/ Empty containers with or without suspension hooks;

b/ Flex tanks.

2. Customs procedures

a/ For carriers’ containers

a.1/ Upon importation, the transport agent shall submit a manifest of transported cargo, listing imported containers;

a.2/ Upon exportation, the transport agent shall submit a list of empty containers temporarily imported or temporarily exported before loading them on vehicles (form No. 44/BKCR/2013 in Appendix III to this Circular); while the transporter or transport agent shall submit a manifest of transported cargo.

b/ If the above containers do not belong to carriers, customs declarants (owners of goods already or to be contained in containers hired from overseas or owners of rotated containers or persons authorized by owners of rotated containers) shall commit to properly use those containers as listed (form No. 44/BKCR/2013 in Appendix III to this Circular) so as to carry out procedures according to the mode of rotation;

c/ Customs branches carrying out temporary import/temporary export procedures shall monitor, compare and certify the number of temporarily exported and imported containers; and conduct physical inspection when having any doubts.

d/ In case of changing the use purposes of rotated containers, customs procedures are as follows:

d.1/ A customs declarant shall send a document to the customs branch with which the temporary import manifest has been registered and which has carried out temporary import procedures, clearly explaining the reason for change of use purposes of rotated containers.

d.2/ Leaders of the customs branch with which the temporary import manifest has been registered shall consider the reason and explanations given by the customs declarant and, if detecting no sign of trade frauds, approve the customs declarant’s request as follows:

d.2.1/ Receiving the temporary import manifest already registered and carrying out temporary import procedures;

d.2.2/ Guiding the customs declarant in opening a customs declaration according to the mode of commercial import and in declaring and calculating duty, and collecting duty (the time of duty calculation is the date of registering the customs declaration) under Clause 8, Article 11 of this Circular;

d.2.3/ Handling violations on the time limit for temporary import and re-export and calculating late payment interests (if any);

d.2.4/ After completing procedures for collection of duty and late payment interests and handling of violations (if any), liquidating the temporarily import manifest.

3. For other rotated containers (stands, shelves, barrels, bottles, etc.) other than containers and flex tanks, customs procedures comply with Points a and c, Clause 4, Article 53 of this Circular.

Article 55.Customs procedures for returned exports

1. Forms of re-importing returned exports (below referred to as re-import of returned goods) include:

a/ Re-import for repair or re-processing (collectively referred to as re-processing) then re-export;

b/ Re-import for sale in the inland (not applicable to goods processed for foreign traders);

c/ Re-import for destruction in Vietnam (not applicable to goods processed for foreign traders);

d/ Re-import for export to other foreign partners.

2. Places for carrying out procedures for re-import of returned goods:

a/ Customs branches which have carried out procedures for exporting those goods or customs branches of the border gates of re-import;

b/ In case a returned shipment consists of goods of different export shipments, re-import procedures shall be carried out at any of the customs branches which have carried out procedures for the export of those goods or the customs branch of the border gate of re-import.

3. Re-processed goods may go through re-export procedures at customs branches which have carried out procedures for their re-import. In case re-import or re-export procedures are carried out at an outside-border gate customs branch (other than border-gate customs branches), procedures for these goods are those applicable to imports or exports in border gate transfer.

4. Procedures for re-import of returned goods

a/ A customs dossier comprises:

a.1/ A written request for re-import of goods, indicating the export declaration the goods belong to, whether or not tax refund or non-collection has been permitted by the customs office, and whether or not input value-added tax credit has been declared to the tax office (stating the serial number of the tax refund or non-collection decision), and the reason for re-import (for re-processing, sale in the inland, destruction or re-export to a third country; if goods are imported for re-processing, the re-processing place, time and method and wastage after re-processing must be indicated): To submit 1 original;

a.2/ The customs declaration of imports, cargo manifest and bill of lading, which are similar to those for commercial imports;

a.3/ The previously submitted customs declaration of exports: To submit 1 copy;

a.4/ The foreign party’s written notice of the return of goods or the shipping company’s or shipping agent’s notice of non-existence of recipients: To submit 1 original or copy.

b/ Customs offices shall carry out customs procedures applicable to commercial imports (excluding import permit and line management permit). Re-imported goods must be physically inspected. Inspecting customs officers shall compare imports with goods descriptions on the export declaration so as to determine the conformity between goods re-imported back to Vietnam and those previously exported;

c/ Customs offices shall issue decisions on non-collection of tax on re-imported goods specified in Clause 1 of this Article if, at the time of carrying out re-import procedures, customs declarants have submitted a complete dossier of tax non-collection as guided in Article 119 of this Circular and customs offices have sufficient grounds to ascertain that re-imported goods are those actually exported. In other cases, taxes must be fully collected according to regulations;

d/ For goods re-imported for re-processing, enterprises shall register the re-processing time limit with customs offices, which must not exceed 275 days from the date of re-import.

5. Procedures for re-export of re-processed goods

a/ A customs dossier comprises:

a.1/ The manifest of exports: To submit 2 originals;

a.2/ The manifest of imports (for re-processing): To submit 1 copy.

b/ Customs offices shall carry out procedures applicable to commercial exports. For shipments subject to physical inspection, inspecting customs officers shall compare actually re-exported goods with goods descriptions on temporary import declarations so as to determine the conformity of re-exported goods and those temporarily imported;

c/ If re-processed goods cannot be re-exported, enterprises shall explain in writing the failure to re-export to customs branches which have carried out re-import procedures and request them to consider and accept the following ways of handling:

c.1/ For re-processed products being processed goods

c.1.1/ To carry out customs procedures as in the case of on-spot import or export for sale in the inland, if the conditions for on-spot import or export of processed products prescribed in Decree No. 12/2006/ND-CP are fully met; or,

c.1.2/ To destroy them if the processing-ordering party requests their destruction in Vietnam and such destruction is permitted by the provincial-level Natural Resources and Environment Department.

c.2/ Re-processed products other than processed goods shall be sold in the inland like goods re-imported for sale in the inland.

6. In case re-imported goods are exports produced from imported materials or supplies; or goods eligible for import duty refund, customs offices carrying out re-import procedures shall notify customs offices carrying out import-duty refund procedures (if these customs offices are not the same) of the cases specified at Points b and c, Clause 1, and Point c, Clause 5, of this Article, or the case of expiration of the time limit specified at Point d, Clause 4 of this Article, for handling under Point c, Clause 7, Article 112 of this Circular.

Article 56.Customs procedures for imports which must be returned to foreign customers or exported to a third country or into non-tariff zones

1. For goods already cleared from import procedures

a/ Places for carrying out export procedures: Customs branches that have carried out import procedures for those shipments. In case goods are exported through a border gate other than that of importation, procedures for transfer to the border gate of exportation may be carried out;

b/ A customs dossier comprises:

b.1/ The enterprise’s written explanation about the export of goods;

b.2/ The export declaration: To submit 2 originals;

b.3/ The previous import declaration: To submit 1 copy and produce the original;

b.4/ The foreign goods owner’s written acceptance to receive back the goods (if goods are returned to their sellers): To submit the original or a copy;

b.5/ The contract on sale of goods to a third country or export of goods into a non-tariff zone (if goods are exported to a third country or into non-tariff zones): To submit 1 copy.

b.6/ The decision on forcible re-export issued by a competent agency (if any): To submit 1 copy.

c/ Customs procedures shall be carried out as for those for export shipments under commercial contracts. Exports must be physically inspected. Inspecting customs officers shall compare goods samples taken upon import (if any); compare goods descriptions on import declarations with actually exported goods; and indicate the quantity, quality and categories of exports and the conformity between actually exported goods and those previously imported;

d/ Customs offices shall issue decisions on non-collection of tax on returned exports or goods exported to a third country or a non-tariff zone specified in Clause 1 of this Article if, at the time of carrying out export procedures, customs declarants submit a complete dossier of tax non-collection as guided in Article 117 of this Circular and customs offices have sufficient grounds to ascertain that exported goods are those previously imported.

2. For mistakenly consigned goods not yet cleared from import procedures which are stored in areas under customs supervision and their recipients cannot be identified or refuse to receive, if transporters or goods owners file a written request for re-export (clearly stating the reason), custom branch directors shall organize the supervision of these goods right at the border gates of importation until they are actually exported from the Vietnamese territory.

Article 57.Customs procedures for goods sold at duty-free shops

Customs management of goods sold at duty-free shops complies with the Ministry of Finance’s separate guidance.

Article 58.Customs procedures for mails, postal parcels, imports and exports consigned by post and imported and exported articles and goods consigned by express delivery services

Customs procedures for mails, postal parcels, imports and exports consigned by post and imported and exported articles and goods consigned by express delivery services comply with this Circular and the Ministry of Finance’s Circular No. 99/2010/TT-BTC of July 9, 2010, stipulating customs procedures for mails, postal parcels and imports and exports consigned by post; Circular No. 100/2010/TT-BTC of July 9, 2010, stipulating customs procedures for imports and exports consigned by international airway express delivery services; and Decision No. 93/2008/QD-BTC of October 29, 2008, stipulating customs procedures for imported, exported and transited goods and articles consigned by road express delivery services.

Article 59.Customs procedures for goods brought into and out of bonded warehouses

1. Customs procedures for goods brought from abroad or non-tariff zones into bonded warehouses:

a/ Goods consigned to bonder warehouses

Goods specified in Article 25 of Decree No. 154/2005/ND-CP may be consigned to bonded warehouses.

b/ A dossier submitted to the bonded warehouse customs office comprises:

b.1/ The manifest of cargo brought into and out of the bonded warehouse: 2 originals;

b.2/ The bonded warehouse rent contract: 1 copy (except cases in which the goods owner is also the warehouse owner).

In case an warehouse rent contract is used for several times of warehousing, to submit the contract once upon registration of the first manifest of cargo brought into and out of the bonded warehouse and to submit a contract annex for the subsequent time of warehousing.

The deadline for goods storage in bonded warehouses is counted from the date of warehousing.

b.3/ The written authorization for goods receipt (if authorization is not provided in the bonded warehouse rent contract): 1 original;

b.4/ The bill of lading or other transportation documents of equivalent validity or the declaration of exports already cleared from customs procedures, for goods brought from non-tariff zones into bonded warehouses: 1 copy;

b.5/ The cargo manifest (particularly for cars and motorcycles, their frame and engine numbers must be indicated): 1 original;

b.6/ Other documents serving management requirements of related ministries and sectors.

c/ Customs procedures

c.1/ Registering the warehousing declaration.

c.2/ The bonded warehouse customs office shall compare the numbers of containers and seals, for container goods, or numbers and codes of bales, for baled goods, with those indicated in accompanying documents. If they all match and their seals and packaging are unbroken, the customs office shall carry out warehousing procedures. If detecting signs of violation of the customs law committed by the goods owner, the customs office shall conduct physical inspection of goods.

c.3/ Customs officers supervising the warehousing of goods shall sign warehousing/ex-warehousing declarations to certify that goods have been warehoused, and input data in the computer for monitoring warehoused/ex-warehoused goods.

2. Customs procedures for goods brought into bonded warehouses from the inland

a/ Goods consigned to bonded warehouses:

a.1/ Goods specified in Clause 3, Article 25 of Decree No. 154/2005/ND-CP;

a.2/ Goods brought into the inland from bonded warehouses for processing or re-processing, then brought back into the warehouses as designated by foreign customers.

b/ A customs dossier comprises:

b.1/ The manifest of cargo brought into and out of the bonded warehouse: 2 originals;

b.2/ The bonded warehouse rent contract: 1 copy (except when the goods owner is concurrently the warehouse owner).

In case a warehouse rent contract is used for many times of warehousing, to submit the contract once upon registration of the first manifest of cargo brought into and out of the bonded warehouse and submit a contract annex for the subsequent time of warehousing.

b.3/ The written authorization for goods consignment (if authorization is not provided in the bonded warehouse rent contract): 1 original; if this authorization is sent by fax, it must be signed and stamped by the warehouse owner;

b.4/ The export declaration corresponding to the type of export, enclosed with a manifest (if any): To submit 1 copy and produce the original (the one kept by the customs declarant);

b.5/ A competent agency’s decision on forcible re-export (in case of forcible re-export): 1 copy.

c/ Customs procedures:

c.1/ Checking the validity of documents included in the dossier; registering the declaration and carrying out warehousing procedures as for goods brought from abroad into bonded warehouses provided at Point c, Clause 1 of this Article.

c.2/ Certifying that “goods have been brought into the bonded warehouse” on the export declaration as stipulated in Clause 4, Article 30 of this Circular.

3. Customs procedures for goods in bonded warehouses to be brought abroad or into non-tariff zones:

a/ A customs dossier comprises:

a.1/ The manifest of cargo brought into and out of the bonded warehouse: To submit 1 original;

a.2/ The customs declaration of exports (except goods brought into bonded warehouses from abroad): To submit 1 copy;

a.3/ The written authorization for ex-warehousing (if the authorization is not provided in the warehouse rent contract): To submit 1 original;

a.4/ The ex-warehousing slip: 1 original.

b/ Customs procedures:

b.1/ The bonded warehouse customs office shall compare declaration documents submitted upon ex-warehousing with those used for carrying out warehousing procedures and the actual state of the shipment. If they all match, it shall carry out ex-warehousing procedures;

b.2/ Goods from bonded warehouses may be exported abroad only through international border gates, main border gates or other places prescribed by the Prime Minister;

b.3/ Goods of each warehousing indicated in the manifest of cargo brought into/out of the bonded warehouse may be ex-warehoused once or many times. In case goods are ex-warehoused and brought abroad many times through different border gates at a time, copies of the manifest of cargo brought into/out of the bonded warehouse bearing a certification mark of the bonded warehouse customs branch may be used for carrying out procedures for border-gate transfer from the warehouse to the border gate of exportation;

b.4/ Upon completion of the ex-warehousing, the bonded warehouse customs branch shall, based on the record on delivery and receipt of goods in border gate transfer and the manifest of cargo in border gate transfer from the bonded warehouse to the border-gate of exportation which is certified by the customs office of the border gate of exportation, certify goods’ arrival to the border gate of exportation on box 35 of the manifest of cargo brought into and out of the bonded warehouse. In case the bonded warehouse is located at the border gate of exportation, the bonded warehouse customs office shall give certification right after goods are loaded into vehicles.

4. Customs procedures for goods imported to the inland from bonded warehouses

a/ Goods in bonded warehouses may be brought into the inland in the following cases:

a.1/ Imports are sold in the Vietnamese market under Point b, Clause 2, Article 26 of Decree No. 154/2005/ND-CP;

a.2/ Goods are brought into the inland for processing or re-processing;

a.3/ Foreign contractors’ machinery and equipment brought into the inland for work construction or machinery or equipment hired by enterprises for performance of processing contracts, which, upon contract completion, have been re-exported and consigned to bonded warehouses, are then brought into the inland for the performance of subsequent hire contracts;

a.4/ Goods already cleared from export procedures and consigned to bonded warehouses, which are imported back into the inland by corresponding modes.

b/ Goods may not to be brought into bonded warehouses in the following cases:

b.1/ Goods specified at Point c, Clause 2, Article 26 of Decree No. 154/2005/ND-CP;

b.2/ Goods for which import procedures must be carried out at border gates;

b.2/ Goods on the list of consumer goods or the list of goods discouraged for import, promulgated by the Ministry of Industry and Trade.

c/ Customs procedures:

c.1/ Customs declarants shall carry out import procedures according to corresponding modes, then warehouse owners shall carry out ex-warehousing procedures.

c.2/ In case of carrying out procedures for importing goods consigned to bonded warehouses for many times, for each importation, a set of customs dossier comprising copies of required papers (including the bill of lading, cargo manifest and certificate of origin) with the certification mark of the bonded warehouse customs office may be accepted while their originals shall be kept by that customs office.

c.3/ After goods are completely ex-warehoused, the bonded warehouse customs branch shall, based on the record on delivery and receipt of goods in border gate transfer, and customs declarations of imports, give certification on box 35 of the manifest of cargo brought into and out of the bonded warehouse.

d/ The bonded warehouse customs office shall supervise the ex-warehousing of goods and give certification on the manifest of cargo brought into and out of the bonded warehouse.

5. Customs supervision of goods transported from a bonded warehouse to the border gate of exportation

a/ Responsibilities of the goods owner/bonded warehouse owner

a.1/ To make a list of exports transported from the bonded warehouse to the border gate of exportation (according to form No. 47/BKCCK-KNQ/CFS/2013 in Appendix III to this Circular): 3 copies;

a.2/ To transport goods along the route and at the time already certified by the customs office on the record on goods delivery and receipt. In case of failing to comply with the certified route and time of transportation, before goods are transported to the border gate of exportation, the goods owner/bonded warehouse owner shall notify in writing such to the customs branch managing the bonded warehouse and the customs branch of the border gate of exportation for information, monitoring and supervision;

a.3/ To preserve goods and keep customs seals in status quo during the process of transportation. In case of an accident or a force majeure event which makes the customs seal broken or leads to a change in the state of the goods, the transporter or bonded warehouse owner shall apply measures to minimize loss and immediately report such to the People’s Committee of the nearest commune, ward or township or the nearest customs branch so as to make a record to certify the current state of goods.

b/ Responsibilities of the customs branch managing the bonded warehouse:

b.1/ To give certification on 2 copies of the list of exports transported from the bonded warehouse to the border gate of exportation; to seal up the goods and make 3 copies of the record on delivery and receipt of goods in border gate transfer (according to form No. 46/BBBG-CCK/2013 in Appendix III to this Circular), clearly indicating information on the time of departure, transport route and other information which serve as a basis for the customs office of the border gate of exportation to receive, inspect, compare and handle the goods; to seal up the customs dossier (comprising 2 copies of the goods delivery and receipt record; 2 copies of the list of exports transported from the bonded warehouse to the border gate of exportation and a copy of the manifest of cargo brought into and out of the bonded warehouse) and hand it over to the bonded warehouse owner/transporter for goods transportation to the border gate of exportation;

b.2/ To send by fax the record on goods delivery and receipt to the customs branch managing the border gate of exportation before 17:00 hours every day for coordinated monitoring and management;

b.3/ To monitor feedback from the customs branch managing the border gate of exportation. When the transport duration (registered by the trader on the record on goods delivery and receipt) terminates, if receiving no feedback from the border gate of exportation or receiving feedback that the goods have not yet arrived at the border gate of exportation, to coordinate with the customs branch of the border gate of exportation and notify such to the customs control team under the Customs Department managing the bonded warehouse for tracing the shipment.

c/ Responsibilities of the customs branch of the border gate of exportation:

c.1/ After receiving information on goods in border gate transfer as indicated on the record on goods delivery and receipt sent by fax from the customs branch managing the bonded warehouse, to monitor information on shipments transported to the border-gate of exportation as stated in such record;

c.2/ After the trader gathers all goods at the border gate of exportation, customs officers shall inspect and compare the customs seal, certify information and propose leaders of the customs branch to sign for certification 2 copies of the goods delivery and receipt record;

c.3/ To send by fax the goods delivery and receipt record to the customs branch managing the bonded warehouse. If doubting that the shipment violates the customs law, the director of customs branch of the border gate of exportation may decide to conduct physical inspection of goods and handle inspection results as for goods in border gate transfer;

c.4/ To keep 1 copy of the goods delivery and receipt record and send the copy with certification to the customs branch managing the bonded warehouse for archival;

c.5/ Customs officers of the border gate of exportation shall supervise goods from the time goods are received until they are completely exported, give certification on the list of exports from the bonded warehouse to the border gate of exportation and submit it to leaders of the customs branch for signing for certification (sign, append a seal and write down the date) and send it back to the customs branch managing the bonded warehouse for preservation and liquidation;

c.6/ When the duration for goods transport has terminated but goods have not yet arrived at the border gate of exportation, before 8:00 hours of the subsequent working day, to notify the customs branch managing the bonded warehouse of the failure to follow the registered transport route and time for coordination in tracing the shipment.

6. Procedures for transporting goods from a bonded warehouse to another bonded warehouse within the Vietnamese territory

a/ The goods owner or his/her/its lawful representative shall file a written request with the Customs Department (of the locality where goods-storing bonded warehouse is located) for settlement;

b/ Customs procedures for transportation of goods from a bonded warehouse to another are those applicable to goods in border gate transfer.

c/ The term of the bonded warehouse rent contract starts on the date goods are brought into the first warehouse.

7. Customs management of goods changing hands while in bonded warehouses

a/ A goods owner shall transfer ownership of its/his/her goods consigned to a bonded warehouse when it/he/she sells such goods under Clause 8, Article 3 of the Commercial Law;

b/ After transferring ownership of goods, the (new) goods owner or bonded warehouse owner (if authorized) shall submit to the customs branch managing the bonded warehouse the following documents:

b.1/ The manifest of cargo brought into and out of the bonded warehouse: 2 originals;

b.2/ A written notice of the transfer of ownership of goods stored in the bonded warehouse from the old owner to the new one: 1 original;

b.3/ The goods sale and purchase contract between the new owner and old owner of the shipment stored in the bonded warehouse: 1 copy;

b.4/ The new owner’s bonded warehouse rent contract: 1 copy.

The customs branch managing the bonded warehouse shall keep the above documents together with the shipment’s warehousing dossier for monitoring and liquidation of goods brought into and out of the bonded warehouse.

c/ After registering the new manifest of cargo brought into and out of the bonded warehouse, the customs branch managing the bonded warehouse shall liquidate the old manifest of cargo brought into and out of the bonded warehouse;

d/ The time limit for goods consignment to a bonded warehouse shall be counted from the date on which the goods are brought into the bonded warehouse under the warehouse rent contract signed between the bonded warehouse owner and the old goods owner.

8. Procedures for the liquidation of goods left overdue in bonded warehouses comply with the Finance Ministry’s separate guidance.

9. Customs management of goods consigned to bonded warehouses

a/ In case bonded warehouse owners are authorized by goods owners to provide bonded warehouse services, the former must be recognized as customs agents. When carrying out customs procedures, customs declarants shall produce customs agent’s employee cards;

b/ Customs branches managing bonded warehouses shall regularly examine operations of bonded warehouses; request warehouse owners to make goods arrangement diagrams and appropriately arrange areas for goods storage and service provision in the warehouses;

c/ Customs branches managing bonded warehouses shall appoint officers to take charge of supervising bonded warehouses and their operations. Goods transported from border gates of importation to bonded warehouses and from bonded warehouses to border gates of exportation or from a bonded warehouse to another are subject to customs supervision;

d/ Goods transported from bonded warehouses to border gates for export abroad must be exported within 15 days after the date of ex-warehousing. Past this time limit, if goods are not exported, the customs declarant files a written request and obtains certification of leaders of the customs branch of the border gate of exportation and the duration of goods consignment to the bonded warehouse has not expired, the customs branch of the border gate of exportation shall send a notice of the state of goods consigned to the bonded warehouse to the customs branch managing the bonded warehouse and supervise goods until they are completely exported. If the time limit for goods consignment to the bonded warehouse has expired but goods are not yet exported, the customs branch of the border gate of exportation shall hand over the shipment to the customs branch managing the bonded warehouse for handling under Clause 7 of this Article;

dd/ Biannually, within 15 days after the end of a reporting period, bonded warehouse owners shall send reports (made according to form No. 45/BC-KNQ/2013 in Appendix III to this Circular) on the actual state of goods therein and the operation of their warehouses to the directors of the Customs Departments of the localities in which their bonded warehouses are located;

e/ Liquidation of manifests of cargo brought into and out of bonded warehouses:

Within 15 days after goods are actually exported, a bonded warehouse owner shall submit the manifest of cargo brought into and out of the bonded warehouse to its managing customs branch for certifying goods’ arrival to the border gate of exportation and liquidate the manifest of cargo brought into and out of the bonded warehouse. The certification and liquidation of the manifest of cargo brought into and out of a bonded warehouse must be based on the record on delivery and receipt of goods in border gate transfer and the list of exports transported from the bonded warehouse to the border gate of exportation, which is certified of by the customs office of the border gate of exportation.

g/ Annually, Customs Departments shall inspect the operation of bonded warehouses and the observance of the customs law by their owners, then report inspection results to the General Department of Customs. If detecting any sign of law violation, Customs Departments may conduct irregular inspection of bonded warehouses.

Article 60.Customs procedures for cross-border imports and exports

Customs procedures for cross-border imports and exports comply with documents jointly issued by the Ministry of Industry and Trade, the Ministry of Finance, the Ministry of Transport, the Ministry of Agriculture and Rural Development, the Ministry of Health and the State Bank of Vietnam, guiding the implementation of the Prime Minister’s Decision on management of border trade activities.

Article 61.Customs inspection of imports and exports in border gate transfer

1. Principles of border gate transfer

For imports and exports in border gate transfer, border gate transfer procedures are carried out concurrently with customs procedures according to Articles 16 and 18 of Decree No. 154/2005/ND-CP. When carrying out customs procedures, customs branches with which customs declarations are registered shall base themselves on information on goods and places of border gate transfer indicated on customs declarations to effect the border gate transfer.

2. Supervision of goods in border gate transfer

a/ For exports:

a.1/ Outside-border gate customs branches shall make records on delivery and receipt of goods in border gate transfer (according to form No. 46/BBBG-CCK/2013 in Appendix III to this Circular), and hand them over to customs declarants together with the original customs declarations already cleared from customs procedures (the original to be handed over to the customs declarant) for submission to customs branches of border gates of exportation;

a.2/ Within 1 hour after receiving a customs dossier and goods from an outside-border gate customs branch, customs officers of the customs office of the border gate of exportation shall complete the receipt of the dossier and goods and sign for certification the delivery and receipt record.

b/ For imports:

b.1/ Customs branches with which customs declarations are registered shall hand over customs declarations to declarants for submission to customs offices of border gates of importation;

b.2/ Within 4 hours after receiving a customs dossier, customs officers of the border gate of importation shall complete the receipt of the dossier and hand over goods and the customs declaration. For imports subject to physical inspection, customs officers shall make 2 copies of the record on delivery and receipt of goods in border gate transfer and hand over them to the customs declarant for submission to the customs office with which the customs declaration is registered for further carrying out procedures.

3. For imports eligible for border gate transfer and exports in border gate transfer which belong to enterprises located in geographical areas managed by provincial-level Customs Departments without outside-border gate customs offices or with outside-border gate customs offices located far from border gates/ports, thus inconvenient for enterprises having goods in border gate transfer, directors of provincial-level Customs Departments may select and assign appropriate customs branches to carry out procedures for border gate transfer.

4. For goods being office equipment (desks, chairs, cabinets and stationery, etc.) or non-commercial imports in direct service of enterprise’ operations which are packed in the same containers with materials imported for export processing and production, enterprises may register customs declarations at outside-border gate customs branches to carry out procedures for border gate transfer.

5. Imports which have bills of lading indicating ports of destination being inland clearance depots (ICDs):

a/ Imports which have bills of lading indicating ports of destination being ICDs may not be transported from border gates to customs clearance places or import checkpoints outside border gates, unless otherwise stipulated by the Prime Minister;

b/ For imports of export-processing enterprises; materials, supplies, machinery and equipment imported for export production or performance of processing contracts, which have bills of lading indicating ports of destination being ICDs, export-processing enterprises may carry out procedures for border gate transfer from ICDs to their managing customs branches, customs branches with which import declarations for export production have been registered or customs branches to which enterprises have notified their processing contracts for further carrying out customs procedures. For imports subject to physical inspection, if enterprises wish to have their goods inspected right at ICDs, ICD customs branches shall conduct physical inspection at the request of customs branches managing export-processing enterprises or customs branches with which import declarations for export production have been registered or customs branches to which enterprises have notified their processing contracts.

6. Border gate transfer of goods consigned to bonded warehouses/CFSs

a/ Goods cleared from export procedures and consigned to bonded warehouses/CFSs may be transferred from bonded warehouses/CFSs to border gates of exportation.

Goods brought from abroad into bonded warehouses may be transferred from border gates of importation to bonded warehouses under Point e, Clause 3, Article 18 of Decree No. 154/2005/ND-CP, excluding those for which customs procedures are required by law to be carried out at border gates of importation;

b/ Goods being materials, supplies, machinery and equipment for production may be transported from bonded warehouses/CFSs to customs clearance places outside border gates;

c/ Customs supervision:

c.1/ For goods transported from customs clearance places to bonded warehouses/CFSs or vice versa, customs branches with which declarations have been registered shall make records on delivery and receipt of goods in border gate transfer so as to transfer the task of goods supervision and management to customs branches managing bonded warehouses/CFSs;

c.2/ In case goods are transported from bonded warehouses/CFSs to customs clearance places, bonded warehouse/CFS owners shall make a list of goods in border gate transfer from bonded warehouses to border gates of exportation (according to form No. 47/BKCCK-KNQ/CFS/2013 in Appendix III to this Circular) and submit it to customs branches managing bonded warehouses/CFSs for certification, customs sealing and coordination in customs supervision and management among involved customs branches;

c.3/ The supervision of goods transported from bonded warehouses to border gates of exportation complies with Clause 5, Article 59 of this Circular.

7. Imports transported from border gates of importation to non-tariff zones and exports from non-tariff zones to border gates of exportation and goods traded or exchanged between non-tariff zones are subject to customs supervision applicable to goods in border gate transfer but customs seals are required.

8. Declarations of imports and exports shall be registered at outside-border gate customs branches. If detecting any signs of violation, border-gate customs branches shall conduct physical inspection of goods right at border gates.

9. Supervision of imports and exports in border gate transfer

The supervision of imports and exports in border gate transfer shall be effected by customs sealing or other technical means specified by the General Director of Customs.

a/ Cases in which imports and exports in border gate transfer are subject to customs sealing:

a.1/ Imports and exports in border gate transfer which are subject to physical inspection must be kept in containers or vehicles meeting customs sealing requirements under Article 14 of Decree No. 154/2005/ND-CP;

a.2/ For small shipments not kept in containers or vehicles meeting customs sealing requirements, each bale shall be sealed up;

a.3/ For small shipments belonging to different import declarations which are transported together to an outside-border gate place and for which enterprises make a written request for transporting them all in a container or vehicle, leaders of customs branches of border gates of importation may accept such request but must seal up the container or vehicle and write down such in the delivery and receipt record.

b/ Cases not subject to customs sealing: Imports and exports which are  exempted from physical inspection when carrying out customs procedures.

c/ Cases in which customs sealing is impossible:

c.1/ For bulk cargo, customs procedures must be carried out at border-gate customs braches. In case customs procedures are carried out at outside-border gate customs offices, physical inspection shall be conducted by border-gate customs branches at the request of outside-border gate customs branches;

c.2/ For oversized and overweight cargo and bulk cargo which do not meet customs sealing requirements and due to special preservation requirements, physical inspection cannot be conducted at border gates, customs procedures may be conducted at outside-border gate customs branches. When making delivery and receipt records, customs branches of border gates of importation shall clearly describe the actual state of goods and vehicles and take photos of goods and vehicles for sending to outside-border gate customs branches.

10. Customs procedures for goods already cleared from export procedures but changing border gates of exportation

a/ For goods already cleared from export procedures but not yet transported to border gates of exportation or CFSs:

Enterprises shall send to customs branches with which export declarations have been registered:

a.1/ A request for change of the border gate of exportation (made according to form No. 48/TD-CKK/2013 in Appendix III to this Circular): 2 originals;

a.2/ A written notice of change of the border gate of exportation, made by the goods recipient, carrier or processing-ordering party: 1 copy;

a.3/ The document permitting the change of the border gate of exportation issued by the export licensing agency, for exports for which export permits are required, (clearly indicating the border gate of exportation) or the provincial-level People’s Committee’s document permitting the export of goods through a new border gate of exportation (for goods exported through land border gates, provincial-level People’s Committees are competent to permit the change of the border gates of exportation): To submit 1 copy and produce the original for comparison;

b/ In case goods have been cleared from export procedures and brought into customs supervision areas within the border gate indicated in the customs declaration or exports in border gate transfer have been transported to CFSs managed by outside-border gate customs branches:

Enterprises shall send to customs branches with which customs declarations have been registered the papers specified at Point a of this Clause.

The General Department of Customs shall guide in detail the change of border gates of exportation.

Article 62.Customs procedures for imported or exported vehicles

Customs procedures for imported and exported vehicles are those applicable to commercial imports and exports. In addition, due to specific characteristics of this mode, some contents are additionally guided as follows:

1. Waterway, airway and railway vehicles must be cleared from customs procedures for export before carrying out exit procedures and cleared from entry procedures before carrying out customs procedures for import.

For vehicles which have been cleared from exit procedures, if vehicle owners sign contracts to sell their vehicles to foreign partners (such contracts indicate the port of delivery and receipt is an overseas port), they shall make a written request for clearance of customs procedures for export, enclosed with documents proving the clearance of exit procedures and, if being approved by the directors of the Customs Departments which have carried out exit procedures, their vehicles will be exempted from physical inspection when carrying out customs procedures for export. Customs procedures shall be conducted at customs branches which have carried out exit procedures.

2. Road vehicles or vehicles which are carried by other vehicles across border gates must go through customs procedures for import or export without having to go through entry and exit procedures.

3. Import and export conditions for each type of vehicles comply with relevant laws.

Chapter III

PROCEDURES FOR ESTABLISHMENT, RELOCATION, EXPANSION OR NARROWING OF OUTSIDE-BORDER GATE CUSTOMS CLEARANCE PLACES AND INLAND IMPORT AND EXPORT CHECKPOINTS; BONDED WAREHOUSES AND TAX SUSPENSION WAREHOUSES

Article 63.Establishment conditions

1. For inland clearance depots

a/ They have been included in the inland clearance depot system master plan promulgated by the Prime Minister;

b/ They are at least 10 ha large each;

c/ They ensure working conditions for customs offices, such as working offices, places for goods inspection, places for installing equipment (electronic scales, screeners, etc.), and warehouses to store material evidence involved in violations;

d/ Warehouses and storing yards have fences separating them and surrounding areas and are furnished with cameras, electronic scales and other equipment for fast customs clearance. Goods brought out of and into warehouses and storing yards are managed through computers connected with the customs supervision system.

2. For customs clearance places outside border gates:

a/ They have been included in the Finance Ministry’s planning on the system of outside-border gate customs clearance places;

b/ They are located in geographical areas with industrial parks, export processing zones, non-tariff zones or other special economic zones or areas with many industrial factories engaged in regular and stable import and export activities;

c/ They are located at places convenient and suitable for container transportation of goods;

d/ They are at least 1 ha large each;

dd/ They satisfy other conditions specified at Points c and d, Clause 1 of this Article.

3. For centralized goods checkpoints established by customs offices or warehousing enterprises:

a/ Location: Being connected to the head office of a customs branch (for a goods checkpoint of one customs branch) or in a locality with regular import and export activities; convenient transport and suitable for container transportation of goods; and being not more than 20 km away from the managing customs branch (for a goods checkpoint used by more than one customs branch);

b/ Area: The area of a goods checkpoint of one customs branch is at least 5,000 m²; and of a goods checkpoint used by more than one customs branch, at least 10,000 m²;

c/ Physical foundations and equipment:

c.1/ Working conditions for the customs office are ensured, such as working office, place for goods inspection, place for installing equipment (electronic scales, screeners, etc.), and warehouses of material evidence involved in violations);

c.2/ Warehouses or storing yards have fences separating them from the surrounding area and a surveillance camera system;

c.3/ Goods brought into or out of warehouses or storing yards are managed through a computer system connected to the customs office.

d/ For a place established by an enterprise, such enterprise has registered the business line of forwarding and warehousing.

4. For border places for gathering and inspecting imports and exports:

a/ For a place inside a border-gate economic zone

a.1/ The enterprise has registered the business line of forwarding and warehousing;

a.2/ Such a place has an area of at least 5,000 m²;

a.3/ Working conditions for the customs office are ensured, such as working office, place for goods inspection, place for installing equipment (electronic scales, screeners, etc.), and warehouses of material evidence involved in violations;

a.4/ Warehouses or storing yards have fences separating them from the surrounding area and a surveillance camera system;

a.5/ Goods brought into or out of warehouse or storing yards are managed through a computer system connected to the customs office.

b/ For a place outside a border-gate economic zone:

The establishment conditions are the same as for places for gathering and inspecting imports and exports inside border-gate economic zones. In addition, it must satisfy the following conditions:

b.1/ It is linked with the border-gate area;

b.2/ It obtains an investment certificate from the provincial-level People’s Committee.

5. For a container freight station (CFS):

a/ The enterprise has registered the business line of forwarding and transportation of imports and exports and warehousing;

b/ The CFS is located in a locality with regular import and export activities and transport convenient and suitable for container transportation of goods; and is not more than 20 km from the managing customs branch;

c/ Working conditions for the customs office are ensured, such as working office, place for goods inspection, place for installing customs inspection equipment, and warehouses of material evidence involved in violations;

d/ A warehouse or storing yard has an area of at least 1,000 m², fences separating it from the surrounding area and a surveillance camera system;

e/ Goods brought into or out of a warehouse or storing yard are managed through a computer system connected to the customs supervision system.

6. For bonded warehouses

Conditions for the establishment of a bonded warehouse comply with Clause 3, Article 22 of Decree No. 154/2005/ND-CP, and the following provisions:

a/ Location

A bonded warehouse must be established in an area specified in Clause 2, Article 22 of Decree No. 154/2005/ND-CP.

b/ Area

b.1/ The area of a bonded warehouse must be at least 5,000 m²(including warehouses, storing yards and auxiliary works) with the area of goods warehouses being at least 1,000 m².

b.2/ The area of a special-use warehouse (such as gold, silver or gem warehouses; and warehouses of goods requiring special preservation) may be smaller than 5,000 m²and the area of goods warehouses may be smaller than 1,000 m^2.

b.3/ Special-use bonded storing yards (such as material timber, iron and steel storing yards, etc.) must have an area of at least 10,000 m²and are not subject to any requirement on the area of warehouses.

c/ Fences separating a bonded warehouse from the surrounding area

c.1/ Fences are not required for a bonded warehouse within a border gate or port area with fences separating it from the surrounding area and under the customs office’s control, inspection and supervision;

c.2/ For a bonded warehouse outside the above area, fences are required to separate it from the surrounding area to meet customs control, inspection and supervision requirements.

d/ Management software and surveillance cameras:

d.1/ The owner of a bonded warehouse must have accounting books and computers installed with software for monitoring and managing goods warehoused, ex-warehoused, kept and left in stock according to regulations of the customs office, and connected to the network of the managing customs office;

d.2/ At a bonded warehouse, cameras must be installed for supervising goods warehoused and ex-warehoused, which must be able to store images for 6 months to meet the customs office’s monitoring, supervision and data access requirements when necessary.

7. For tax suspension warehouses

An enterprise requesting the establishment of a tax suspension warehouse must satisfy the conditions specified at Points a, b and c, Clause 2, Article 27 of Decree No. 154/2005/ND-CP. In addition, in order to meet customs supervision and management requirements, this Circular specifically guides Point d, Clause 2, Article 27 of Decree No. 154/2005/ND-CP as follows:

a/ The enterprise must satisfy the conditions specified in Clause 1, Article 20 of this Circular;

b/ The enterprise must have accounting books and software for monitoring and managing goods warehoused, ex-warehoused, kept and left in stock;

c/ The tax suspension warehouse must be located in the enterprise’s production area and installed with surveillance cameras which can store images for 6 months to meet the customs office’s monitoring, supervision and data access requirements when necessary.

8. For goods checkpoints at construction sites or construction sites’ warehouses and production places

a/ The construction site or construction site’s warehouse must be a place for gathering equipment, machines and supplies imported for the construction of a plant or work or for the implementation of an investment project;

b/ The enterprise’s production plant or factory is a place for gathering imports and exports with specific preservation, packing, sanitation, technology or safety requirements, and goods which cannot be physically inspected at border gates or centralized checkpoints;

c/ The enterprise shall arrange the ground and means for goods inspection at construction sites or production places and may put goods into production, construction or installation only after the goods are granted customs clearance by the customs office.

Article 64.Establishment dossiers

1. A dossier of request for establishment of an inland clearance depot (ICD):

a/ The written request for establishment: 1 original;

b/ The Transport Ministry’s written approval of the establishment (except ICDs already included in the Ministry of Transport’s planning): 1 original;

c/ The business registration certificate showing the business line of forwarding and transporting imports and exports and (or) dealing in warehouses and storing yards: 1 copy;

d/ The construction econo-technical feasibility study report: 1 copy;

dd/ The operation regulation: 1 original.

2. A dossier of request for establishment of a customs clearance place outside a border gate:

a/ A written request for establishment: 1 original;

b/ The written approval of the establishment issued by the provincial-level People’s Committee of the locality where that customs clearance place will be located: 1 original;

c/ The business registration certificate showing the business line of forwarding and transporting imports and exports and (or) dealing in warehouses and storing yards: 1 copy;

d/ The construction econo-technical feasibility study report: 1 copy;

dd/ The operation regulation: 1 original.

3. A dossier of request for establishment of a centralized goods checkpoint comprises:

a/ For a centralized goods checkpoint established by a customs office:

a.1/ The Customs Department’s written request for establishment: 1 original;

a.2/ The plan of the transport network and related local industrial parks and economic zones: 1 copy;

a.3/ The construction econo-technical feasibility study report: 1 copy;

a.4/ The operation regulation: 1 original;

a.5/ The lawful land use right certificate.

b/ For a centralized goods checkpoint established by an enterprise:

b.1/ The enterprise’s written request for establishment: 1 original;

b.2/ The construction econo-technical feasibility study report: 1 copy;

b.3/ The operation regulation: 1 original;

b.4/ The paper proving lawful land use rights: 1 copy;

b.5/ The business registration certificate, indicating the business line of forwarding and transporting imports and exports and (or) warehousing: 1 copy;

4. A dossier of request for the establishment of a border import and export checkpoint comprises:

a/ The enterprise’s written request for establishment: 1 original;

b/ The construction econo-technical feasibility study report: 1 copy;

c/ The operation regulation: 1 original;

d/ The paper proving lawful land use rights: 1 copy;

dd/ The business registration certificate, indicating the business line of forwarding and transporting imports and exports and (or) warehousing: 1 copy;

e/ For an import and export checkpoint outside a border-gate economic zone, the investment certificate granted by the provincial-level People’s Committee: 1 copy;

5. A dossier of request for establishment of a container freight station (CFS) comprises:

a/ The enterprise’s written request for establishment: 1 original;

b/ The construction econo-technical feasibility study report: 1 copy;

c/ The operation regulation: 1 original;

d/ The paper proving lawful land use rights: 1 copy;

dd/ The business registration certificate, indicating the business line of forwarding and transporting imports and exports and (or) warehousing: 1 copy;

6. A dossier of request for establishment of a bonded warehouse comprises:

a/ The written request for establishment of a bonded warehouse (made according to form No. 49/TL-KNQ/2013 in Appendix III to this Circular);

b/ The business registration certificate, indicating the business line of warehousing: 1 copy;

c/ The design of the warehouse and storing yard zone, showing its boundary with the outside, locations of warehouses, internal roads, fire and explosion prevention and fighting systems, security system, the warehouse office and working place of the customs office (when requested by the customs office);

d/ Lawful documents proving the right to use warehouses, storing yards, technical infrastructure, management software, surveillance cameras, etc., enclosed with the design of the bonded warehouse and storing yard zone within the border gate and industrial park area.

7. A dossier of request for establishment of a tax suspension warehouse comprises:

a/ The written request for establishment of a tax suspension warehouse (made according to form No. 50/TL-KBT/2013 in Appendix III to this Circular);

b/ The business registration certificate: 1 copy;

c/ The design of the warehouse zone, showing its boundary with the outside, locations of warehouses, internal roads, fire and explosion prevention and fighting systems, security system and the warehouse office;

d/ Lawful documents proving the right to use warehouses, technical infrastructure, management software, surveillance cameras, etc.

8. For goods checkpoints at construction sites or construction sites’ warehouses and production places, the enterprise shall send a written request (original) for recognition to the Customs Department.

Article 65.Order of establishment

1. For inland clearance depots or outside-border gate customs clearance places (below collectively referred to as customs clearance places):

a/ An enterprise shall submit a dossier of request for establishment to the Customs Department of the locality where the customs clearance place will be located;

b/ Within 10 working days after receiving a complete and valid dossier, the Customs Department shall:

b.1/ Examine the dossier;

b.2/ Conduct field inspection at warehouses and storing yards;

b.3/ Assess the satisfaction of the conditions specified in Decree No. 154/2005/ND-CP and compliance with Clauses 1 and 2, Article 63 of this Circular; and make proposals and a report together with the dossier to the General Department of Customs.

c/ Within 30 working days after receiving the report enclosed with the dossier, the General Department of Customs shall complete its appraisal, report on appraisal results and submit them to the Minister of Finance for deciding on the establishment of a customs clearance place under Clause 2, Article 4 of Decree No. 154/2005/ND-CP. In case the establishment conditions are not fully met, the Ministry of Finance shall issue a written reply to the enterprise.

2. For centralized goods checkpoints, border places for inspecting imports and exports, CFSs and bonded warehouses (below collectively referred to as places):

a/ Request for approval of the establishment of a place

a.1/ An enterprise wishing to establish a place shall send a written request to the General Department of Customs (through the Customs Department), clearly stating the necessity for establishment, the tentative location, physical and technical foundation and infrastructure conditions, etc.;

a.2/ Within 5 working days after receiving the enterprise’s written request, the Customs Department shall examine the dossier, and based on the operation situation of existing places in the locality, assess the necessity for and conformity with management requirements of such establishment, and particularly for establishment of a bonded warehouse, consider the satisfaction of customs supervision requirements, and report its proposal to the General Department of Customs;

a.3/ Within 5 working days after receiving the Customs Department’s report, the General Department of Customs shall issue a written reply giving specific guidance on necessary matters to be complied with. In case of refusal, it shall clearly state the reason.

b/ Issuance of a decision on the establishment of a place

b.1/ After obtaining the approval of the General Department of Customs, the enterprise shall build its warehouse or storing yard meeting prescribed conditions and then make a dossier in accordance with this Circular and send it to the General Department of Customs (through the Customs Department of the locality in which the place is located);

b.2/ Within 10 working days after receiving the enterprise’s complete dossier, the Customs Department shall examine the dossier; conduct physical inspection of the warehouse or storing yard; assess the satisfaction of the establishment conditions, and send a report with its proposal to the General Department of Customs (if the establishment conditions are satisfied);

b.3/ Within 7 working days after receiving the Customs Department’s report enclosed with the establishment dossier, the General Director of Customs shall issue a decision to establish the place or issue a written reply if the enterprise fails to fully satisfy the prescribed establishment conditions;

3. For goods checkpoints being construction sites or construction sites’ warehouses or production places or bonded warehouses

An enterprise shall send a written request together with the establishment dossier to the Customs Department. Within 5 working days after receiving the enterprise’s complete dossier, the Customs Department shall examine the dossier; conduct physical inspection of the warehouse or storing yard and issue an establishment decision. In case of refusal, it shall issue a written reply to the enterprise clearly stating the reason.

Article 66.Termination and suspension of operation

1. Cases of operation termination

a/ The Customs Department makes a written request for termination of an inland clearance depot; outside border-gate customs place; centralized checkpoint; border place for gathering and inspecting imports and exports; container freight station; bonded warehouse or tax suspension warehouse when conditions on customs inspection and supervision and other conditions under Article 63 of this Circular are not met;

b/ The enterprise makes a written request for operation termination;

c/ Six months after the establishment decision is issued, the enterprise fails to put the place into operation without a plausible reason;

d/ Within a year, the enterprise has thrice committed customs-related administrative violations and paid fines at a level beyond the sanctioning competence of the head of a customs branch;

dd/ A bonded warehouse or tax suspension warehouse was established previously but by December 31, 2014, fails to expand its area to meet the conditions specified in Clauses 6 and 7, Article 64 of this Circular.

2. Competence to issue a termination decision

a/ The director of a Customs Department may:

a.1/ Issue decisions to terminate operation of checkpoints being construction sites or construction sites’ warehouses or production places; or bonded warehouses;

a.2/ Examine, report and propose the General Department of Customs to consider termination of operation of inland clearance depots; bonded warehouses; centralized checkpoints; CFSs; and border places for gathering and inspecting imports and exports.

b/ The General Director of Customs may:

b.1/ Issue decisions to terminate operation of bonded warehouses; centralized checkpoints; CFSs; and border places for gathering and inspecting imports and exports;

b.2/ Examine, report and propose the Ministry of Finance to issue decisions to terminate operation of inland clearance depots.

c/ The Minister of Finance may issue decisions to terminate operation of inland clearance depots.

3. Suspension of operation of places:

a/ When a place no longer operates due to unavailability of goods and the enterprise makes a written request for operation suspension, the director of the Customs Department shall issue a notice of suspension of operation of a centralized checkpoint; border place for gathering and inspection imports and exports; container freight station; or bonded warehouse, or report and propose the General Department of Customs to issue a notice of suspension of operation of an inland clearance depot;

b/ The operation suspension duration does not exceed 6 months after the enterprise makes a written request;

c/ During its operation suspension, the place is not subject to customs supervision;

d/ Past the above duration, if the enterprise makes a written request for resumption of operation, the director of the Customs Department shall examine establishment and operation conditions of the place and if it meets the conditions, he/she shall issue a written approval of operation or propose the General Department of Customs to approve operation, for inland clearance deports. In case the conditions are not met or the enterprise does not make a written request, the director of the Customs Department shall propose a competent authority to consider terminating operation under Clause 1 of this Article.

Article 67.Procedures for relocation, expansion or narrowing of places

1. An enterprise that wishes to narrow or expand the area of a place established under the General Department of Customs’s decision, or wishes to relocate a place established under the General Department of Customs’s decision to a new site and satisfies the conditions specified in Article 63 of this Circular shall make and send a dossier to the Customs Department. A dossier comprises:

a/ The written request for relocation, expansion or narrowing of a place;

b/ The plan of the warehouse or storing yard to be relocated, expanded or narrowed;

c/ Lawful documents proving the right to use the warehouse or storing yard to be relocated or expanded.

2. After receiving an enterprise’s complete and valid dossier, the Customs Department shall:

a/ Examine the dossier;

b/ Conduct physical inspection of the warehouse or storing yard;

c/ Within 15 days after receiving a complete and valid dossier, the director of the Customs Department shall decide to expand, narrow or relocate a place, for relocation in the same area of establishment, or issue a written reply to the enterprise in case the conditions for relocating, expanding or narrowing the place are not fully satisfied;

d/ In case of relocation out of the area of establishment of the place, the enterprise shall send a written request to the Customs Department for consideration and reporting to the General Department of Customs for decision on such relocation.

3. The relocation of a place specified in Clause 1 or 2, Article 63 of this Circular which is under planning of the Ministry of Transport or the Ministry of Finance is subject to written approval of the Ministry of Transport or the Ministry of Finance.

Article 68.Transfer of ownership or change of names of owners

1. Procedures for transferring the ownership of a place are as follows:

a/ The owner of the place makes a written request for transfer of ownership of the place;

b/ The new owner of the place carries out procedures for change of owner of the place. The dossier for such change complies with Article 64 of this Circular;

c/ The Customs Department receives the dossier of request for transfer of ownership, reports and proposes the General Department of Customs to decide on such transfer without conducting physical inspection of the warehouse or storing yard if there is no change in the state of the warehouse or storing yard. For a place to be established by the Minister of Finance, the General Department of Customs reports and proposes the Minister of Finance to make consideration and decision.

2. Procedures for change of name of the owner of a place:

a/ The owner makes a written request for change of name of the owner of a place together with documents proving that the change of name of the enterprise has been certified by the agency licensing that enterprise;

b/ Within 5 days after receiving a complete and valid dossier, the General Department of Customs makes a written recognition of change of name of the owner in the decision on establishment of the place. For a place established by the Minister of Finance, the General Department of Customs reports and proposes the Minister of Finance to make consideration and decision.

Part III

CUSTOMS PROCEDURES FOR NON-COMMERCIAL IMPORTS AND EXPORTS

Article 69.Non-commercial imports and exports

Non-commercial imports and exports (below referred to as non-commercial goods) include:

1. Donations and gifts of overseas organizations or individuals to Vietnamese organizations or individuals; or of Vietnamese organizations or individuals to overseas organizations or individuals;

2. Goods of Vietnam-based diplomatic missions and international organizations and their staff;

3. Goods as humanitarian aid;

4. Temporarily imported and exported goods of individuals entitled to tax exemption by the Vietnamese State;

5. Free sample goods;

6. Working tools and means of agencies, organizations or people on entry or exit temporarily imported or exported for a specified period;

7. Movable property of organizations and individuals;

8. Personal luggage of people on entry consigned under bills of lading, and hand luggage of people on entry which exceeds the duty-free quota;

9. Other non-commercial goods.

Article 70.Customs declarants

For non-commercial goods, customs declarants may be:

1. Goods owners;

2. Customs clearance agents, if goods owners sign contracts with agents;

3. Persons authorized in writing by goods owners.

In case of authorization, authorized persons may, in their names, declare, sign and append seals to customs declarations.

Article 71.Customs dossiers for imports

1. Papers to be submitted include:

a/ The declaration of non-commercial imports and exports: 2 originals;

b/ The bill of lading (except hand luggage in excess of duty-free quota provided at Point 8, Article 69 of this Circular): 1 copy;

c/ The written authorization provided in Clause 3, Article 70 of this Circular: 1 original;

d/ A competent agency’s certification of humanitarian aid, in case of import of humanitarian aid: 1 original;

dd/ The police office’s decision or notice allowing overseas Vietnamese to settle in Vietnam; or Vietnamese passport or its substitute paper which remains valid for this person to permanently reside in the country, with the entry certification mark of the border-gate immigration agency: 1 certified copy enclosed with the original for comparison;

e/ A competent state agency’s written permission for the transfer of the organization’s property from abroad into Vietnam: 1 copy;

g/ The import permit (in case of import of banned goods or goods subject to conditional import): 1 original;

h/ The certificate of origin, for the cases specified at Point e.5, Clause 2, Article 12 of this Circular: 1 original;

i/ The notice or decision or the agreement to give as gifts or donate goods: 1 copy;

k/ Other papers required by law on a case-by-case basis.

2. Papers to be produced include:

a/ The carrier’s notice of goods receipt (except hand luggage in excess of duty-free quota specified in Clause 8, Article 69 of this Circular);

b/ The duty-free quota book, for diplomatic missions, international organizations and their foreign staff.

3. Dossiers for identifying duty-free non-commercial imports are customs dossiers provided in this Article.

Article 72.Customs dossiers for exports

1. Papers to be submitted include:

a/ The declaration of non-commercial imports and exports: 2 originals;

b/ The written authorization prescribed in Clause 3, Article 70 of this Circular: 1 original;

c/ A competent agency’s written permission for export of goods as humanitarian aid and certification of humanitarian aid, for export of humanitarian aid: 1 original;

d/ A competent state agency’s written permission for overseas settlement (for export of movable property of individuals and families): 1 certified copy;

dd/ A competent state agency’s written permission for the transfer of the organization’s property abroad: 1 certified copy;

e/ The export permit (for export of banned goods or goods subject to conditional export): 1 original;

g/ Other papers as required by law on a case-by-case basis.

2. Dossiers for identifying duty-free non-commercial exports are customs dossiers provided in this Article.

Article 73.Customs procedures

1. Customs declarants shall make declaration and submit customs dossiers. Customs offices shall receive, register and carefully examine the dossiers.

2. Directors of customs branches may decide on the forms and extent of physical inspection of non-commercial goods in compliance with inspection principles under the Customs Law and Decree No. 154/2005/ND-CP.

Particularly, goods eligible for privileges and immunities comply with Article 38 of Decree No. 154/2005/ND-CP.

3. Duties, fees and other charges comply with current law.

4. Customs clearance for non-commercial goods

Customs officers at the final stage shall sign and stamp the “cleared from customs procedures” mark on customs declarations.

5. Monitoring and liquidation of professional tools and working means of agencies, organizations and people on entry or exit, which are temporarily imported or exported for a specified period for non-commercial purposes

a/ By the deadline for re-export, the customs declarant shall carry out procedures for re-export of professional tools and working means and liquidate dossiers at the customs branch of the locality in which such tools and means are temporarily imported. When they are re-exported in a locality other than that in which they are temporarily imported, after carrying out re-export procedures, the customs branch of the locality in which they are re-exported shall send a notice together with a copy of the customs declaration (kept at the customs office) to the customs branch of the locality in which such tools and means are temporarily imported, for dossier liquidation under regulations;

b/ By the deadline for re-import, the customs declarant shall carry out procedures for re-import of professional tools and working means and liquidate dossiers at the customs branch of the locality in which such tools and means are temporarily exported. When they are re-imported in a locality other than that in which they are temporarily exported, within 15 days after completing re-import procedures, the customs declarant shall directly contact the customs branch of the locality in which such tools and means are temporarily exported, for dossier liquidation under regulations;

c/ Past the prescribed deadline, a customs declarant that fails to re-export or re-import professional tools and working means shall be handled in accordance with current law.

Part IV

CUSTOMS PROCEDURES FOR VEHICLES ON ENTRY, EXIT, IN TRANSIT OR IN PORT TRANSFER

Section 1

FOR CARS ON ENTRY, EXIT OR IN TRANSIT VIA BORDER GATES FOR COMMERCIAL PURPOSES

Article 74.Customs procedures for foreign cars on entry (temporary import)

1.Customs declarants shall submit and/or produce the following papers:

a/ For foreign cars on entry under a bilateral agreement between Vietnam and the bordering country:

a.1/ A competent agency’s permit: to produce the original;

a.2/ The vehicle registration paper: to produce the original;

a.3/ The declaration of imported or transited goods: to produce the original;

a.4/ The list of passengers (for passenger cars): to submit 1 original;

a.5/ The entry/exit declaration (if any) of the vehicle operator and attendants on the vehicle: to produce the original;

a.6/ Other papers under the land transport treaty between Vietnam and the bordering country: to produce the original;

a.7/ The declaration of road vehicles temporarily imported for re-export (made according to form No. 51/PTVTDB/TN-TX/2013 in Appendix III to this Circular), printed by the customs office.

b/ Vehicles temporarily imported under the Greater Mekong Subregion Cross-Border Transport Agreement (GMS Agreement) comply with the Transport Ministry’s Circular No. 29/2009/TT-BGTVT of November 17, 2009. A dossier comprises:

b.1/ The GMS road transport permit: to produce the original;

b.2/ The motor vehicle temporary admission document: to produce the original;

b.3/ The container temporary admission document: to produce the original;

b.4/ The transit and inland customs clearance document: to produce the original.

c/ For foreign right-hand-drive cars, the papers specified in the Government’s Decree No. 80/2009/ND-CP of October 1, 2009 must be produced, specifically:

c.1/ The Transport Ministry’s written approval: to produce the original;

c.2/ The certificate of technical inspection and environmental protection for motor vehicles, which is granted by the registering country and remains valid: to produce the original;

c.3/ The vehicle registration paper: to produce the original;

c.4/ The entry/exit declaration (if any) of the vehicle operator: to produce the original;

c.5/ The declaration of road motor vehicles temporarily imported for re-export, printed by the customs office.

2. Customs offices shall receive and examine dossiers and carry out customs procedures according to the process prescribed by the General Department of Customs.

Article 75.Customs procedures for foreign cars on exit (re-export)

1. Customs declarants shall submit and/or produce the following papers:

a/ For foreign cars on entry under a bilateral agreement between Vietnam and the bordering country:

a.1/ A document on extension of the operation period of the vehicle (if any): to submit the original;

a.2/ A competent agency’s permit: to produce the original;

a.3/ Other papers under a land transport treaty between Vietnam and the bordering country: to produce the original;

a.4/ The list of passengers (for passenger cars moving on routes): to submit the original;

a.5/ The declaration of exported or transited goods (when procedures are carried out simultaneously for vehicles and exported or transited goods): to produce the original;

a.6/ The entry/exit declaration (if any) of the vehicle operator and attendants working on the vehicle: to produce the original.

b/ Motor vehicles re-exported under the GMS Agreement comply with the Transport Ministry’s Circular No. 29/2009/TT-BGTVT of November 17, 2009. A dossier comprises:

b.1/ The GMS road transport permit: to produce the original;

b.2/ The motor vehicle temporary admission document: to produce the original;

b.3/ The container temporary admission document: to produce the original;

b.4/ The transit and inland customs clearance document: to produce the original.

c/ For foreign right-hand-drive cars, the originals of the papers provided in the Government’s Decree No. 80/2009/ND-CP of October 1, 2009, must be produced, specifically:

c.1/ The vehicle registration paper;

c.2/ The entry/exit declaration (if any) of the vehicle operator;

c.3/ The declaration of road motor vehicles temporarily imported for re-export.

2. Customs offices shall receive and examine dossiers and carry out customs procedures according to the process prescribed by the General Department of Customs.

Article 76.Customs procedures for Vietnamese cars on exit (temporary export) and entry (re-import)

Customs procedures for Vietnamese cars on exit (temporary export) and entry (re-import) comply with Articles 74 and 75 of this Circular. Particularly, the vehicle declaration must be made according to form No. 52/PTVTDB/TX-TN/2013 in Appendix III to this Circular. Cars with international transport permits shall be managed by computer, no printed vehicle declaration is required.

Section 2

FOR MEANS OF TRANSPORT DEFINED IN ARTICLE 46 OF DECREE No. 154/2005/ND-CP

 Article 77.Mechanism of managing rudimentary means of transport

1. Rudimentary means of transport is that moved by human power or drawn by animals (e.g., rickshaw, pedicab, cart drawn by horse or ox, etc.).

2. Upon entry or exit of rudimentary means of transport, their owners or operators are not required to apply for permits or fill in declarations of means of transport.

Article 78.Customs procedures

Upon entry or exit of rudimentary means of transport, their owners or operators shall fill in the following declarations for submission to customs offices:

1. The declaration of imports and exports (if any);

2. The declaration of luggage of operators and passengers (if any).

Section 3

FOR VEHICLES OF INDIVIDUALS, AGENCIES AND ORGANIZATIONS WHICH ARE TEMPORARILY IMPORTED FOR RE-EXPORT OR TEMPORARILY EXPORTED FOR RE-IMPORT FOR NON-COMMERCIAL PURPOSES UNDER ARTICLE 47 OF DECREE No. 154/2005/ND-CP

Article 79.Customs procedures for cars on entry or exit for non-commercial purposes

1. For foreign cars on entry (temporary import), customs declarants shall submit and produce the following papers:

a/ For foreign cars on entry under a bilateral treaty between Vietnam and the bordering country:

a.1/ A competent agency’s written permission (except temporary admission of cars for operation at border gates): to produce the original;

a.2/ The vehicle registration paper: to produce the original;

a.3/ Other papers under a land transport treaty between Vietnam and the bordering country: to produce the original;

a.4/ The declaration of the road motor vehicle temporarily imported for re-export (made according to form No. 51/PTVTDB/TN-TX in Appendix III to this Circular), printed by the customs office;

a.5/ The entry/exit declaration (if any) of the vehicle operator and attendants working on the vehicle: to produce the original.

b/ For foreign right-hand-drive cars, the originals of the papers provided in the Government’s Decree No. 80/2009/ND-CP of October 1, 2009, must be produced, specifically:

b.1/ The Transport Ministry’s written approval;

b.2/ The certificate of technical inspection and environmental protection for motor vehicles;

b.3/ The vehicle registration paper;

b.4/ The entry/exit declaration (if any) of the vehicle operator;

b.5/ The declaration of the road motor vehicle temporarily imported for re-export (made according to form No. 51/PTVTDB/TN-TX/2013 in Appendix III to this Circular).

2. For foreign cars on exit (re-export), customs declarants shall submit or produce the following papers:

a/ The declaration of the road motor vehicle temporarily imported for re-export, containing the temporary admission certification by the border-gate customs office carrying out temporary admission procedures: to submit the original;

b/ A competent agency’s written permission: to produce the original;

c/ The document on temporary admission extension (if any): to submit the original.

3. For Vietnamese cars on exit (temporary export) or entry (re-import), customs dossiers are similar to those specified in Clauses 1 and 2 above. Particularly, vehicle declarations must be made according to form No. 52/PTVTDB-TX-TN/2013 in Appendix III to this Circular. Cars with international transport permits shall be managed by computer, no printed vehicle declaration is required.

4. Customs offices shall receive and examine dossiers and carry out customs procedures according to the process prescribed by the General Department of Customs.

Article 80.Customs procedures for canoes, speedboats, etc., on entry or exit

1. Customs procedures for ships, boats, barges, canoes, speedboats, etc., subject to operation registration under regulations applicable to waterway craft on entry or exit

a/ Craft owners or operators shall submit or produce to customs offices the following papers:

a.1/ A competent agency’s written permission (except temporary admission of craft for operation at border gates): to produce the original;

a.2/ The craft registration paper (if any): to produce the original;

a.3/ The declaration of imports or exports (if any): to produce the original;

a.4/ The entry/exit declaration (if any) of the craft operator and attendants working on the craft: to produce the original;

a.5/ The declaration of the riverway craft temporarily imported for re-export (made according to form No. 53/PTVTDS/TX-TN/2013 in Appendix III to this Circular) or the declaration of the riverway craft temporarily exported for re-import (made according to form No. 54/PTVTDS/TX-TN/2013 in Appendix III to this Circular): to submit the original.

b/ Customs offices shall receive and examine dossiers and carry out customs procedures according to the process prescribed by the General Department of Customs.

2. Customs procedures applicable to motorbikes and mopeds on entry or exit for non-commercial purposes

a/ For foreign motorbikes and mopeds on entry (temporary import), customs declarants shall submit or produce the following papers:

a.1/ A competent agency’s written permission (except temporary admission of motorbikes and mopeds for operation at border gates): to submit a copy;

a.2/ The vehicle registration paper: to produce the original;

a.3/ The declaration of road motor vehicles temporarily imported for re-export (made according to form No. 51/PTVTDB/TX-TN/2013 in Appendix III to this Circular), printed by the customs office.

b/ For foreign motorbikes and mopeds on exit (re-export), customs declarants shall submit and produce the following papers:

b.1/ The declaration of road motor vehicles temporarily imported for re-export, with temporary admission certification by the border-gate customs office carrying out temporary admission procedures: to submit the original;

b.2/ The document on temporary admission extension (if any): to submit a copy and produce the original.

c/ For Vietnamese motorbikes and motorcycles on exit (temporary export) or entry (re-import), customs dossiers are similar to those specified at Points a and b of this Clause 2. Particularly, the vehicle declaration must be made according to form No. 52/PTVTDB/TX-TN/2013 in Appendix III to this Circular.

d/ Customs offices shall receive and examine dossiers and carry out customs procedures according to the process prescribed by the General Department of Customs.

Article 81.Specific regulations applicable to vehicles of individuals and organizations in border areas that regularly travel across the border

1. These vehicles include:

a/ Foreign trucks which enter Vietnamese border-gate areas within a day (1 day) for delivering imports or receiving exports;

b/ Vietnamese trucks which go across the border within a day for delivering exports or receiving imports then return to Vietnam;

c/ Vehicles of individuals, agencies and organizations in border areas that regularly travel across the border in their daily activities.

2. For the cases specified at Points a and b, Clause 1 of this Article, if having a plausible reason for extending the stay in border-gate areas, the vehicle operator or goods owner shall send a written request to the director of the customs branch for consideration and extension. An extension must not exceed 2 days.

3. These vehicles may be temporarily imported for re-export or temporarily exported for re-import through the same border gate.

4. Neither permits nor declarations are required for these vehicles. Border-gate customs offices shall manage and monitor these vehicles through books or computers.

Section 4

FOR VIETNAMESE AND FOREIGN SEAGOING SHIPS ON ENTRY, EXIT, IN TRANSIT OR IN PORT TRANSFER

Article 82.Customs declarants

Captains or carriers’ lawful representatives (below collectively referred to as captains) shall declare and carry out customs procedures for seagoing ships on entry, exit, in transit or in port transfer.

Article 83.Customs clearance places

Customs procedures for Vietnamese and foreign seagoing ships on entry, exit or in transit must be carried out at head offices or representative offices of port authorities, except the cases specified at Point b, Clause 2, Article 54 of the Government’s Decree No. 21/2012/ND-CP of March 21, 2012, on management of seaports and navigable channels.

Article 84.Time limits for customs clearance

Customs declarants shall declare and submit customs dossiers within the following time limit:

1. For seagoing ships on entry, within 2 hours after the ships have safely anchored at places designated by directors of port authorities;

2. For seagoing ships on exit, at least 2 hours before the ships leave ports. Particularly for passenger ships and liners, right before the time the ships leave ports;

3. For plausible reasons, the above time limit may be changed but captains shall notify such in writing at least 30 minutes in advance to port customs offices.

Article 85.Customs declaration

Customs declarants shall make customs declarations under Article 86 of this Circular, taking into account the following contents:

1. Cargo declarations must be fully, specifically and clearly filled in terms of description of goods; general terms such as groceries, office equipment, electronic products, electric appliances, children’s toys, etc., are not accepted. If general terms are given for certain commodities, they must be attached with lists of these commodities.

2. For luggage of crew members:

a/ To declare luggage of the whole crew in the crew member luggage declaration;

b/ Each crew member shall declare his/her goods on the declaration of non-commercial goods.

3. Luggage in excess of allowable limits and goods of passengers on entry or exit comply the Government’s Decree No. 66/2002/ND-CP of July 1, 2002, prescribing luggage limits of people on entry and exit and duty-free imported donations and gifts.

Article 86.Customs dossiers

1. For seagoing ships on entry, captains shall submit to port customs offices a dossier comprising:

a/ The general declaration: 1 original;

b/ The cargo manifest: 1 original;

c/ The declaration of dangerous goods (if any): 1 original;

d/ The ship’s provisions declaration: 1 original;

dd/ The list of crew members: 1 original;

e/ The list of passengers (if any): 1 copy;

g/ The declaration of crew members’ cargo and luggage: 1 original;

h/ The declaration of goods transferred from or to port, transited or transshipped (if any): 1 original.

2. For foreign seagoing ships on exit, if there is no change in the declared contents upon entry, captains are not required to submit the papers specified in Clause 1 of this Article, except the general declaration, cargo declaration and list of passengers (if any). In case of any change, captains shall submit the papers specified in Clause 1 of this Article, except the declaration of goods transferred from or to port, transited or transshipped, and produce the following papers:

a/ The invoice of seagoing ship goods purchase;

b/ The invoice of duty-free goods purchase (under goods orders).

3. For Vietnamese seagoing ships on exit, captains shall submit to port customs offices a dossier comprising:

a/ The general declaration: 1 original;

b/ The cargo manifest: 1 original;

c/ The ship’s provisions declaration: 1 original;

d/ The list of crew members: 1 original;

dd/ The declaration of crew members’ cargo and luggage: 1 original;

e/ The list of passengers (if any): 1 copy.

4. For seagoing ships in transit:

a/ When carrying out entry procedures, captains shall submit a dossier specified in Clause 1 of this Article to customs offices of ports of entry.

Customs offices of ports of entry shall seal up dossiers (comprising one cargo manifest and one ship dossier transfer slip) and hand them to captains for transfer to customs offices of ports of exit.

b/ When carrying out exit procedures, captains shall submit to customs offices of ports of exit the general declaration (1 original) and dossiers transferred by customs offices of ports of entry.

5. For seagoing ships in port transfer

a/ At ports of departure:

a.1/ Captains shall submit to port customs offices the general declaration, declaration of imports transferred from or to port, declaration of exports already loaded onboard, declaration of transited and transshipped goods (if any): 1 copy each.

a.2/ Port customs offices shall seal up port-to-port dossiers and hand them to captains for submission to customs offices of ports of arrival.

b/ At ports of arrival, captains shall submit the general declaration (1 original) and sealed port transfer dossiers transferred by customs offices of ports of departure.

Section 5

CUSTOMS PROCEDURES FOR AIRCRAFT ON ENTRY, EXIT, IN TRANSIT OR IN PORT TRANSFER

Article 87.Responsibilities of airport authorities, air carriers and pilots

1. At least 24 hours (or one hour, for irregular flights) before the entry of an aircraft or before aviation authorities complete aviation procedures for passengers on exit and exports, the airport authority shall provide the customs office with the following information:

a/ The flight’s number;

b/ The aircraft’s nationality;

c/ The type of aircraft;

d/ The flight’s itinerary;

dd/ The time of the aircraft’s arrival and departure;

e/ The aircraft’s parking place;

g/ The arrival gate for passengers;

h/ The time of loading and unloading goods onto and from the aircraft.

The airport authority shall notify one hour in advance (upon entry or exit of an aircraft) to the customs office of any change in the above information.

2. At least 2 hours (for flights of over 6 hours) and 1 hour (for flights of 6 hours or less) before the entry of an aircraft or before aviation authorities complete aviation procedures for passengers on exit and exports, the air carrier shall provide the customs office with the following information:

a/ Goods imported, exported, in transit or port transfer;

b/ Checked luggage;

c/ The list of passengers;

d/ The list of crew members and attendants working aboard.

3. Right after aviation authorities complete aviation procedures for exported cargo and luggage and passengers on exit and right after an aircraft on entry parks at the designated place, the pilot or his/her lawful representative shall submit to the customs office a customs dossier comprising:

a/ The aircraft’s general declaration: 1 original;

b/ The cargo manifest: 2 originals;

c/ The manifest of checked luggage: 2 originals;

d/ The list of passengers: 1 original;

dd/ The list of crew members and attendants working aboard: 1 original.

Article 88.Responsibilities of customs offices

Customs offices shall receive and process information and data specified in Clauses 1 and 2, Article 87 of this Circular provided by airport authorities and air carriers; and receive customs dossiers provided in Clause 3, Article 87 of this Circular from pilots or their lawful representatives in order to carry out customs procedures for aircraft under law.

Article 89.Customs procedures for aircraft on international entry and exit in combination with domestic transport and aircraft for domestic transport in combination with transport of imports and exports

1. Customs procedures for aircraft on international entry and exit in combination with domestic transport are similar to those for aircraft in port transfer. Imports or exports on a flight must undergo customs procedures applicable to their kinds.

2. For aircraft for domestic transport in combination with transport of imports and exports, carriers shall arrange imported or exported cargo and luggage in separate places in cargo holds for customs sealing.

Section 6

CUSTOMS PROCEDURES FOR INTERNATIONAL TRAINS ON ENTRY OR EXIT

Article 90.Customs procedures for trains on entry

1. At border stations

a/ Right after a train enters a border station, the train guard or his/her representative (below collectively referred to as train guard) shall submit to the border station’s customs branch the following papers:

a.1/ The cargo delivery and receipt paper (for cargo trains): 1 original;

a.2/ The bill of lading: 1 copy of the second sheet;

a.3/ The carriage handover and receipt paper: 1 original;

a.4/ The manifest of cargo to be unloaded at each inland station: 2 originals (made according to form No. 55/BLK-DS/2013 in Appendix III to this Circular);

a.5/ The list of passengers and slips of their checked luggage (for passenger trains and passengers carrying out procedures at border stations): 1 original;

a.6/ The list and declaration of luggage of the crew and attendants working onboard (for passenger trains and passengers carrying out procedures at border stations): 1 original.

b/ The border station’s customs branch shall:

b.1/ Receive and examine the papers submitted by the train guard;

b.2/ Compare and physically inspect locomotives, number and codes of all consigned cargo or luggage carriages;

b.3/ Check the carrier’s seal of each consigned cargo or luggage carriage;

b.4/ Seal up each the cargo carriage or each cargo shipment to be unloaded at the inland station. For cargo which cannot be sealed up, such as oversized or overweight goods or bulk goods, the train guard shall preserve them in their original state;

b.5/ Supervise during the time the train stops at the station: the unloading of consigned cargo and luggage to warehouses and storing yards for carrying out import procedures at the station;

b.6/ Make a written record of handover of imports to be transported to another station to the inland station’s customs branch: 2 copies;

b.7/ Stamp the operational mark on the papers submitted by the train guard and seal up the customs dossier comprising 1 original of the manifest of cargo unloaded at the inland station; 1 copy of the second sheet of the bill of lading of cargo unloading at the inland station, and 1 copy of the handover record.

2. At inland stations

a/ Right after a train arrives at an inland station, the train guard or a lawful representative shall submit to the inland station’s customs branch:

a.1/ Papers sealed up by the border station’s customs branch;

a.2/ The list of passengers and slips of their checked luggage (for passenger trains and passengers carrying out procedures at inland stations): 1 original;

a.3/ The list and declaration of luggage of the crew and attendants working onboard (for passenger trains and passengers carrying out procedures at inland stations): 1 original.

b/ The inland station’s customs branch shall:

b.1/ Receive and examine the papers submitted by the train guard;

b.2/ Compare and physically inspect the number of consigned cargo and luggage carriages and the code of each carriage;

b.3/ Examine the carrier’s seal and seal of the border station’s customs branch (if any) of each cargo or consigned luggage carriage;

b.4/ Conduct supervision during the time the train stops at the station;

b.5/ Stamp the operational mark on and return papers sent by the border station’s customs branch.

Article 91.Customs procedures for trains on exit

1. At inland stations:

a/ Before a train leaves an inland station, the train guard shall submit to the inland station’s customs branch the following papers:

a.1/ The train composition form (for passenger trains carrying out customs procedures at inland stations): 1 original;

a.2/ The bill of lading: 1 copy of the second sheet (for trains with exports carriages);

a.3/ The list and declaration of luggage of the crew and attendants working onboard (for passenger trains and passengers carrying out procedures at inland stations): 1 original;

a.4/ The list of passengers and slips of their checked luggage (for passenger trains and passengers carrying out procedures at inland stations): 1 original.

b/ The inland station’s customs branch shall:

b.1/ Receive and examine papers submitted by the train guard or a lawful representative;

b.2/ Seal up every exports carriage or exports shipment. For goods which cannot be sealed up, such as oversized or overweight goods or bulk goods, the train guard shall preserve them in their original state;

b.3/ Make a written record of handover of exports to the border station’s border gate customs office: 2 copies;

b.4/ Stamp the operational mark on papers submitted by the train guard;

b.5/ Seal up the customs dossier comprising 1 copy of the handover record; 1 copy of the manifest of exports; and 1 copy of the second sheet of the bill of lading, and hand them to the train guard or a lawful representative for submission to the border station’s customs branch.

2. At border stations:

a/ When a train arrives at a border station, the train guard or a lawful representative shall submit to the border station’s customs branch:

a.1/ Papers sealed up by the inland station’s customs branch;

a.2/ The train composition form: 1 original appended with the border station’s seal (for cargo trains);

a.3/ The carriage handover and receipt paper, and cargo handover and receipt paper (for cargo trains): 1 original;

a.4/ The list of passengers and slips of their checked luggage (for passenger trains and passengers carrying out procedures at border stations): 1 original;

a.5/ The list and declaration of luggage of the crew and attendants working onboard (for passenger trains and passengers carrying out procedures at border stations): 1 original.

b/ The border station’s customs branch shall:

b.1/ Receive and examine papers submitted by the train guard or a lawful representative;

b.2/ Compare and physically inspect locomotives and the number of consigned cargo and luggage carriages and code of each carriage;

b.3/ Supervise the loading of cargo and luggage already cleared from customs procedures onto each carriage;

b.4/ Seal up each consigned cargo and luggage carriage or each cargo shipment. For cargo which cannot be sealed up, such as oversized or overweight goods or bulk goods, the train guard shall preserve them in their original state until the train leaves;

b.5/ Conduct supervision during the time the train stops at the station;

b.6/ Stamp the operational mark on papers submitted by the train guard or lawful representative;

b.7/ Append the seal to and return papers sent by the inland station’s customs branch.

Part V

IMPORT DUTY, EXPORT DUTY, AND OTHER PROVISIONS ON TAX ADMINISTRATION OF IMPORTS AND EXPORTS

Section 1

IMPORT DUTY AND EXPORT DUTY BASES AND CALCULATION METHODS

Article 92.Tax bases and calculation methods for goods subject to pro rata tax rates

1. For goods subject to pro rata tax rates, tax bases include:

a/ Quantity of units of each goods item actually imported or exported as indicated in the customs declaration;

b/ Dutiable value which complies with the Customs Law, the Law on Tax Administration, the Law on Export Duty and Import Duty ; the Government’s Decree No. 40/2007/ND-CP of March 16, 2007, prescribing the customs valuation of exports and imports; and the Ministry of Finance’s Circular guiding Decree No. 40/2007/ND-CP;

c/ Tax rate

c.1/ Export duty rates are specified for a number of goods items in the Export Tariff promulgated by the Minister of Finance;

c.2/ Import duty rates are specified for every goods item, including preferential duty rates, special preferential duty rates and ordinary duty rates:

c.2.1/ Preferential duty rates are applicable to imports originating from countries or groups of countries or territories that grant most favored nation treatment in trade relations with Vietnam. The Ministry of Industry and Trade shall publicize the list of countries and groups of countries or territories that grant most favored nation treatment to Vietnam.

Preferential duty rates are specified for every goods item in the Preferential Import Tariff promulgated by the Minister of Finance.

Taxpayers shall make declaration and take responsibility before law for the origin of goods to serve as the basis for determination of preferential import duty rates.

c.2.2/ Special preferential duty rates are specified for each goods item in the Minister of Finance’s circulars providing special preferential duty rates and the Ministry of Finance’s Circular No. 45/2007/TT-BTC of May 7, 2007, guiding the application of special preferential import duty rates.

c.2.3/ Ordinary duty rates are applicable to imports originating from countries or groups of countries or territories that do not grant most favored nation treatment or special import duty incentives to Vietnam. Ordinary duty rates are equal to 150% of preferential duty rates for corresponding goods items specified in the Preferential Import Tariff:

Ordinary duty rate = Preferential duty rate x 150%

The classification of goods for determination of duty rates specified at Point c of this Clause must adhere to the goods classification principles prescribed in the Government’s Decree No. 06/2003/ND-CP of January 22, 2003, on the classification of exports and imports, the Ministry of Finance’s Circular No. 49/2010/TT-BTC of April 12, 2010, guiding the classification of, and application of duty rates to, imports and exports, and relevant documents. For imported machinery and equipment in Chapters 84, 85 and 90 of the Preferential Import Tariff which are combinations and lines satisfying notes 3, 4 and 5, Part XVI of Vietnam’s List of Exports and Imports, in addition to the above provisions, declaration procedures must be carried out under Article 97 of this Circular.

d/ In addition to being taxed under Point c.2.1, c.2.2 or c.2.3 of this Clause, goods imported excessively into Vietnam, subsidized or dumped or involving discrimination between them and Vietnamese exports are subject to anti-subsidy tax, anti-dumping tax, anti-discrimination tax or safeguarding tax.

2. Tax calculation methods for goods subject to pro rata tax rates are as follows:

a/ Export duty or import duty amounts payable for goods subject to pro rata tax rates are determined based on the quantity of units of each goods item actually exported or imported as indicated in a customs declaration, dutiable value and tax rate for each goods item according to the following formula:

The determination of payable export duty amounts for crude oil or natural petroleum complies with the Ministry of Finance’s Circular No. 32/2009/TT-BTC of February 19, 2009, guiding the implementation of regulations on taxes on organizations and individuals engaged in petroleum prospecting, exploration and exploitation in accordance with the Petroleum Law.

b/ In case the actually exported or imported quantity of goods is different from that indicated in the commercial invoice due to the characteristics of the goods but satisfies delivery and payment conditions under the goods trading contract, the payable export duty or import duty amount is determined based on the value actually paid for the exported or imported goods and the tax rate applicable to each goods item.

Example: An enterprise imports under a contract 1,000 tons of tobacco shreds at a unit price of USD 100/ton and with a water content of ± 2%. On the commercial invoice is written 1,000 tons x USD 100 = USD 100,000 in payment value. Upon importation, though the customs scale shows that the actually imported quantity is 1,020 tons or 980 tons, the payment value for tax calculation is still USD 100,000.

Article 93.Tax bases and calculation methods for goods subject to specific tax or mixed tax

1. Tax bases for goods subject to specific tax or mixed tax:

a/ Tax bases for goods subject to specific tax include:

a.1/ Quantity of units of each actually exported or imported goods item indicated in the customs declaration which is subject to specific tax;

a.2/ Specific tax rate prescribed for a unit of goods;

a.3/ Exchange rate for tax calculation.

b/ Tax bases for goods subject to mixed tax include:

b.1/ Quantity of units of each actually imported or exported goods item indicated in the customs declaration which is subject to mixed tax;

b.2/ Pro rata tax rate and dutiable value of goods subject to mixed tax under Points b and c, Clause 1, Article 92 of this Circular;

b.3/ Specific tax rate for goods subject tomixed tax under Point a, Clause 1 of this Article;

b.4/ Exchange rate used for tax calculation.

2. Tax calculation methods for goods subject to specific tax or mixed tax:

a/ Payable export duty or import duty amounts for goods subject to specific tax are determined according to the following formula:

b/ Payable export duty or import duty amounts for goods subject to mixed tax are determined according to the following formula:

Article 94.Tax bases and calculation methods for goods subject to safeguarding tax, anti-dumping tax or anti-subsidy tax

1. Importers of goods subject to safeguarding tax, countervailing tax or anti-subsidy tax under the Minister of Industry and Trade’s decisions shall pay safeguarding tax, anti-dumping tax or anti-subsidy tax.

2. Tax bases:

a/ Actually imported quantity of units of each goods item indicated in the customs declaration subject to safeguarding tax, anti-dumping tax or anti-subsidy tax;

b/ Dutiable value of each imported goods item subject to safeguarding tax, anti-dumping tax or anti-subsidy tax;

c/ Duty rate for each goods item as specified at Point d, Clause 1, Article 92 of this Circular.

3. Tax calculation methods:

Article 95.Time for tax calculation, time limit for tax payment; procedures for tax collection, payment and refund for goods subject to safeguarding tax, anti-dumping tax or anti-subsidy tax

1. Time for tax calculation, time limit for tax payment:

a/ The time for tax calculation complies with Article 98 of this Circular;

b/ The time limit for tax payment complies with Clause 7, Article 20 of this Circular.

2. Procedures for tax collection, payment and refund:

a/ Tax collection and payment procedures:

a.1/ In case import duty is a type of specialized collection, safeguarding tax, anti-dumping tax and anti-subsidy tax will be paid into the same budget revenue account;

a.2/ For materials and supplies imported for export production and goods temporarily imported for re-export on which import duty is paid into the customs office’s deposit account, safeguarding tax, anti-dumping tax and anti-subsidy tax will be paid into the customs office’s deposit account like import duty.

b/ Tax refund procedures:

After receiving the Minister of Industry and Trade’s official decisions on application of safeguarding tax, anti-dumping tax or anti-subsidy tax or decisions on non-application of safeguarding tax, anti-dumping tax or anti-subsidy tax, customs offices shall refund overpaid tax amounts, if any, to taxpayers under Article 26 of this Circular.

Article 96.Application of tax bases in special cases

1. For goods used for a purpose different from that already determined for which these goods are eligible for non-taxation, tax exemption or tax exemption consideration, or for which preferential tax rates, special preferential tax rates or tariff quota-based tax rates are applied, tax bases include dutiable value, tax rate and exchange rate at the time of registration of new declarations (the time of change of the use purpose), of which:

a/ The value for import duty calculation complies with the Customs Law, the Law on Export Duty and Import Duty, Decree No. 40/2007/ND-CP and the Ministry of Finance’s Circular.

b/ The rate for import duty calculation is the one applicable at the time of registration of the new declaration.

In case taxpayers change use purposes of the goods and use them domestically but fail to declare and pay tax to customs offices, Point c, Clause 8, Article 11 of this Circular will be applied.

2. For goods produced, processed, reprocessed or assembled in non-tariff zones with the use of imported materials or components as specified in Clause 16, Article 100 of this Circular, tax will be calculated under Clauses 4 and 6, Article 13 of the Prime Minister’s Decision No. 33/2009/QD-TTg of March 2, 2009, promulgating financial mechanisms and policies applicable to border-gate economic zones, and amending, supplementing or replacing documents.

3. For imported goods which are additionally subject to one of import duty-related measures (safeguarding tax, anti-dumping tax, anti-subsidy tax or anti-discrimination tax), excise tax and value-added tax calculation prices must be added with safeguarding tax, anti-dumping tax, anti-subsidy tax or anti-discrimination tax.

Article 97.Procedures for tax declaration, classification and calculation for machinery and equipment in Chapters 84, 85 and 90 of the Preferential Import Tariff which are combinations or lines satisfying notes 3, 4 and 5, Part XVI of Vietnam’s List of Imports and Exports

1. Machinery and equipment in Chapters 84 and 85 of the Preferential Import Tariff, if satisfying notes 3, 4 and 5, Part XVI of Vietnam’s List of Imports and Exports, will be classified by main machines, regardless of whether they are imported from one or more than one source, arrive in one or more than one shipment, or go through customs procedures at one or more than one border gate.

2. In order to have grounds for monitoring and classifying machinery and equipment which are combinations or lines imported from one or more than one source, arriving in one or more than one shipment, going through customs procedures at one or more than one border gate, or imported in complete or knockdown form, the following procedures must be carried out:

a/ Responsibilities of customs declarants:

a.1/ In addition to carrying out customs procedures as prescribed, customs declarants shall register the list of machinery and equipment in Chapters 84 and 85 which are combinations and lines subject to tax calculation by main machines (according to form No. 04/DKDMTBTT/2013 in Appendix II to this Circular) to customs branches of localities where their enterprises are based. If there are no customs branches in the localities where their enterprises are based, customs declarants may register such list with customs branches most convenient to them.

If the customs declarant registers the list of, and imports machinery and equipment (once or more than once) at the same customs branch, when registering this list  it shall notify such to this customs branch for carrying out procedures for receiving the list registration under Point b.1 below.

a.2/ Dossiers and documents to be submitted upon registration of the list of machinery and equipment in Chapters 84 and 85 which are combinations and lines:

a.2.1/ A list of machinery and equipment in Chapters 84 and 85 which are combinations and lines expected to be imported (according to form No. 05/DMTBDKNK-MC/2013 provided in Appendix II to this Circular), specifying names, quantities, unit prices and headings of machinery and equipment and types and codes of main machines and equipment: To submit 2 originals enclosed with 1 reconciliation monitoring slip (according to form No. 06/PTDTL-TBMC/2013 in Appendix II to this Circular);

a.2.2/ A written description and an installation plan showing the locations of each type of machine and equipment on the list of machinery and equipment in Chapter 84 or 85 which are combinations and lines: To submit 1 copy and produce the original for comparison;

a.2.3/ A written commitment to take responsibility before law for the accurate and truthful contents of the above two documents.

a.3/ To fully pay tax on each machine and equipment on the list and be sanctioned for untruthful declaration.

b/ Responsibilities of customs offices:

b.1/ When receiving the lists of machinery and equipment in Chapters 84 and 85 which are combinations and lines, customs branches shall check such lists. If seeing that all notes 3, 4 and 5 of Part XVI are satisfied, they shall open monitoring books, append certification marks to the 2 lists of imports and 1 reconciliation monitoring slip (keep one original list and hand the other together with the original reconciliation monitoring slip to customs declarants for production to customs offices that carry out goods import procedures for calculating tax by main machines and making reconciliation when carrying out customs procedures for actually imported goods) according to regulations.

If customs declarants register the lists of and carry out import procedures (once or more than once) for all machinery and equipment in Chapters 84 and 85 which are combinations and lines at the same customs branch, this customs branch shall, after making monitoring books and appending certification marks to 2 lists of imports (keep one original list and hand the other to the customs declarants), keep 1 original reconciliation monitoring slip and carry out the procedures specified at Point b.2 below.

b.2/ When carrying out import procedures, in addition to prescribed customs procedures, customs offices shall compare customs dossiers with reconciliation monitoring slips to make reconciliation for machinery and equipment actually imported by customs declarants and sign for certification according to regulations; and shall file in customs dossiers 1 copy of the list of machinery and equipment and the filled-in reconciliation monitoring slip in customs dossiers.

After all goods written in the reconciliation monitoring slip have been imported, the leader of the customs branch that carries out final customs procedures shall give certification on the original reconciliation monitoring slip kept by the customs declarant, keep 1 copy, hand 1 copy to the customs declarant and send the original to the customs branch which issues the reconciliation monitoring slip.

In case the customs branch receiving the registration of the list of machinery and equipment is also the customs branch carrying out import procedures for such machinery and equipment as mentioned at Point b.1 above, after the leader of the customs branch certifies that all goods written in the reconciliation monitoring slip have been imported, the customs branch shall keep the original, hand 1 copy to the customs declarant and send 1 copy of the reconciliation monitoring slip together with the list registration dossier to the Post-Customs Clearance Inspection Sub-Department according to Point b.3 below.

b.3/ After receiving the original reconciliation monitoring slip from the customs branch that carries out final customs procedures, the customs branch registering the list of machinery and equipment and issuing the reconciliation monitoring slip shall gather all list registration dossiers and hand them to the Post-Customs Clearance Inspection Sub-Department for use as a basis for post-customs clearance inspection of the use of the combinations of machinery and equipment for which tax has been calculated by main machines.

c/ For actual imports which are inconsistent with those written in the notified list of imported machinery and equipment in Chapters 84 and 85 which are combinations and lines, customs declarants shall declare and pay tax on each individual machine. If customs offices or other agencies detect through examination that goods are not actually installed or used as combinations and lines, customs declarants shall, in addition to fully paying tax on each individual machine and equipment, be sanctioned according to regulations;

d/ For previously imported machinery and equipment in synchronous and complete units, if main machines have been certified by competent agencies and actually imported goods have been classified by main machines, the rest imported later will be further classified by main machines.

3. In case imported machinery and equipment satisfy notes 3, 4 and 5, Part XVI of Vietnam’s List of Imports and Exports but customs declarants do not want to classify them under the guidance at Point 1 of this Article, classification and tax calculation will be made for each individual machine and equipment.

4. In case imported machinery and equipment in Chapter 90 of the Preferential Import Tariff satisfy notes 3 and 4, Part XVI of Vietnam’s List of Imports and Exports, regardless of whether they are imported from one or more than one source, arrive in one or more than one shipment, or go through customs procedures at one or more than one border gate, they will go through the same procedures guided in Clauses 2 and 3 of this Article.

Section 2

TIME AND EXCHANGE RATES FOR TAX CALCULATION

Article 98.Time and exchange rates for tax calculation for imports and exports

1. The time for calculating import duty, export duty, safeguarding tax, anti-dumping tax or anti-subsidy tax (within the effective period of the Minister of Industry and Trade’s decisions) is the date of registration of customs declarations. Import or export duty will be calculated based on tax rate, dutiable value and exchange rate for tax calculation at the time of tax calculation.

In case taxpayers declare and calculate tax before the date of customs declaration registration and apply an exchange rate different from that at the time of customs declaration registration, customs offices shall re-calculate payable tax amounts at the exchange rate at the time of customs declaration registration.

2. In case taxpayers make e-declarations, the time for tax calculation complies with regulations on e-customs procedures.

3. Exchange rates for tax calculation comply with Clause 3, Article 7 of the Government’s Decree No. 87/2010/ND-CP of August 13, 2010. If the exchange rate published on Nhan Dan daily is different from the exchange rate posted daily on the website of the State Bank of Vietnam, the exchange rate for tax calculation for exports or imports is the exchange rate announced by the State Bank of Vietnam on its website at the time of tax calculation.

Article 99.Time for tax calculation for imports and exports subject to single registration of customs declarations

For imports and exports for which customs declaration is registered once for multiple importations or exportations, import duty or export duty will be calculated based on tax rate, dutiable value and exchange rate for tax calculation applied at the date of carrying out import or export customs procedures on the basis of the quantity of each goods item actually imported or exported.

Section 3

TAX EXEMPTION CASES AND PROCEDURES

Article 100.Tax exemption cases

1. Goods temporarily imported for re-export or temporarily exported for re-import for display at fairs, exhibitions or product displays; professional machinery, equipment and instruments temporarily imported for re-export or temporarily exported for re-import for use at conferences, workshops, scientific research, sports tournaments, art performances, medical examination and treatment; components and spare parts temporarily imported for replacement or repair of foreign seagoing ships or aircraft (except machinery and equipment temporarily imported for re-export which are  eligible for tax exemption under Clause 17 of this Article or eligible for tax refund consideration as guided in Clause 9, Article 112 of this Circular) are exempt from import duty when being temporarily imported and exempt from export duty when being re-exported, for goods temporarily imported for re-export, or exempt from export duty when being temporarily exported and exempt from import duty when being re-imported, for goods temporarily exported for re-import:

Tax must be paid for tax-exempted goods mentioned in this Clause after the duration of temporary import for re-export or temporary export for re-import specified in Article 53 of this Circular.

2. Goods being movable property of Vietnamese or foreign organizations and individuals brought into Vietnam or abroad within prescribed quotas, including:

a/ Goods being movable property brought into Vietnam by foreign organizations and individuals permitted to reside and work in the country at the invitation of competent state agencies or brought abroad upon the expiration of their stay or work duration in Vietnam;

b/ Goods being movable property permitted to be brought abroad by Vietnamese organizations or individuals for business or working purposes and imported back into Vietnam upon expiration of their business or working duration;

c/ Goods being movable property brought into Vietnam by overseas Vietnamese or Vietnamese families permitted to return home for permanent residence or brought abroad by these entities when being permitted for overseas settlement; goods being movable property brought into Vietnam by foreigners when being permitted for permanent residence in the country or brought abroad by these persons when being permitted for overseas settlement.

Particularly, automobiles and motorcycles currently in use and brought into Vietnam by families or individuals when being permitted for permanent residence in the country are exempt from import duty for only one unit of each kind.

The identification of goods as movable property complies with Clause 5, Article 5 of the Law on Export Duty and Import Duty, and guiding documents.

3. Exports or imports of foreign organizations and individuals entitled to diplomatic privileges and immunities in Vietnam are regulated by the Ordinance on Privileges and Immunities for Diplomatic Missions, Consular Offices and Representative Offices of International Organizations, and detailing and guiding documents.

4. Goods imported or exported for processing are exempt from tax under Clause 4, Article 12 of Decree No. 87/2010/ND-CP (under notified processing contracts)

a/ Goods eligible for tax exemption under processing contracts include:

a.1/ Materials imported or exported for processing;

a.2/ Supplies imported or exported for use in the process of production or processing (paper, chalk, drawing pen, marker pen, clothes pin, printing ink, glue brush, lithographic frame, crepe, polish, etc.) in case enterprises can elaborate consumption norms and wastage rates;

a.3/ Imported or exported processing samples;

a.4/ Machinery and equipment imported or exported to directly serve processing under processing contracts. Upon the expiration of processing contracts, these machinery and equipment must be re-exported or re-imported. If they are not re-exported or re-imported, tax declaration and payment must be made according to regulations. In case they are retained for use as gifts or donations, they are exempt from import or export duty under Clause 4, Article 104 of this Circular;

a.5/ Processed products exported back to the processing-ordering party (if they are liable to export duty);

a.6/ Finished products imported for attachment to or packaging together with processed products to form complete goods items for export; and components and spare parts imported for warranty for exported processed products, are exempt from tax like materials and supplies imported for processing if they fully satisfy the following conditions:

a.6.1/ They are shown in processing contracts or annexes thereto;

a.6.2/ They are managed as materials and supplies imported for processing;

a.7/ Goods imported for processing may be destroyed in Vietnam in accordance with law after processing contracts are liquidated and customs procedures are completed under the Ministry of Finance’s guidance.

b/ For export duty-exempt goods exported abroad for processing for Vietnamese parties, which are then imported back into Vietnam, import duty must be paid for processed products (duty is not imposed on the value of materials and supplies already used in processing under signed processing contracts; import duty rates are applied based on imported processed products; and the origin of products is identified under the Ministry of Industry and Trade’s rules of origin).

c/ Imported equipment, machinery, materials, supplies and processed products paid by foreign parties as processing remuneration are liable to import duty according to regulations.

d/ Processing norms:

Directors of processing enterprises are responsible for use and consumption norms and wastage rates (below referred to as norms) of goods which are imported under processing contracts and used for processing. Violations must be handled in accordance with law.

The elaboration and notification of norms comply with the Ministry of Finance’s guidance.

Scraps and discarded products within norms applicable to processing forms satisfying the conditions specified in Article 31 of the Government’s Decree No. 12/2006/ND-CP of January 23, 2006, which are agreed upon in processing contracts and notified to customs offices under the Ministry of Finance’s guidance, are liable to import duty like those for export production as guided at Point d.3, Clause 5, Article 112 of this Circular.

5. Goods exported or imported within duty-free luggage quotas applicable to persons on exit or entry; goods sent via the express delivery service within duty-free quotas prescribed by the Government and the Prime Minister.

a/ Goods exported or imported within duty-free luggage quotas applicable to persons on exit or entry:

a.1/ For persons on exit: No limit is set for articles included in their luggage other than goods banned from export or subject to conditional export.

a.2/ For persons on entry:

a.2.1/ Duty-free quotas comply with the Government’s Decree No. 66/2002/ND-CP of July 1, 2002, prescribing duty-free luggage quotas for persons on entry or exit and duty-free imported gifts and donations.

a.2.2/ For goods imported in excess of duty-free quotas, import duty must be paid for excessive quantities. The total payable duty amount for the excessive quantity of less than VND 50,000 (fifty-thousand) will be exempted. Persons on entry whose luggage contains multiple articles may choose articles in their luggage to be taxed.

b/ For goods sent via the express delivery service:

Goods sent via the express delivery service of which the declared value is within the duty-exempt quotas specified in the Prime Minister’s Decision No. 78/2010/QD-TTg of November 30, 2010, on the value of duty-free imports sent via the express delivery service are exempted from duty. In case goods are imported in excess of duty-free quotas, duty must be paid for the whole goods lot. The total payable duty amount for the whole goods lot of  less than VND 50,000 (fifty-thousand) will be exempted.

6. Goods purchased, sold or exchanged among border inhabitants are exempt from export duty or import duty within the prescribed quotas. Duty must be paid for the quantity of goods in excess of these quotas, if any.

Regulations on border inhabitants and duty-free quotas for goods purchased, sold or exchanged among border inhabitants are the Prime Minister’s Decision No. 254/2006/QD-TTg of November 7, 2006, on management of border trade with bordering countries, and Decision No. 139/2009/QD-TTg of December 23, 2009, amending and supplementing a number of articles of Decision No. 254/2006/QD-TTg.

7. Goods imported to create fixed assets of investment projects in the fields eligible for import duty incentives specified in Appendix I to Decree No. 87/2010/ND-CP or in geographical areas eligible for import duty incentives specified in the Appendix providing the list of geographical areas eligible for enterprise income tax incentives to the Government’s Decree No. 124/2008/ND-CP of December 11, 2008, detailing and guiding a number of articles of the Law on Enterprise Income Tax, and Decree No. 53/2010/ND-CP of May 19, 2010, specifying geographical areas eligible for investment and enterprise income tax incentives for new administrative units established upon the Government’s adjustment of administrative boundaries, and investment projects funded with official development assistance (ODA), are exempt from import duty, including:

a/ Equipment and machinery, if they fully satisfy the following conditions:

a.1/ Being conformable with investment projects’ fields, objectives and scope;

a.2/ Satisfying the conditions on fixed assets prescribed in the Ministry of Finance’s Circular No. 45/2013/TT-BTC of April 25, 2013.

b/ Domestically unavailable special-use vehicles in technological lines; vehicles to carry workers to/from work, including cars of 24 seats or more and waterway craft:

b.1/ The list of domestically available special-use vehicles to serve as a basis for duty exemption specified at this Point is issued by the Ministry of Planning and Investment.

b.2/ The list of and criteria for identification of special-use vehicles in technological lines to serve as a basis for tax exemption specified at this Point are issued by the Ministry of Science and Technology.

c/ Components, details, knockdown parts, spare parts, fittings, molds and accessories for assembly with equipment, machinery and vehicles are eligible for tax exemption as specified at Points a and b of this Clause in either of the following cases:

c.1/ Being components, details or parts of equipment, machinery and vehicles which are imported in knockdown form;

c.2/ Being components, details, knockdown parts, spare parts, fittings, molds and accessories which are imported for assembling machinery and equipment to ensure their normal operation.

d/ Domestically unavailable materials and supplies which are used for manufacturing equipment and machinery in technological lines or manufacturing components, details, knockdown parts, spare parts, fittings, molds and accessories specified at Point c of this Clause for assembly with equipment and machinery specified at Point a of this Clause.

The list of domestically available materials and supplies to serve as a basis for tax exemption specified at this Point is issued by the Ministry of Planning and Investment.

e/ Domestically unavailable construction materials.

The list of domestically available construction materials to serve as a basis for tax exemption specified at this Point is issued by the Ministry of Planning and Investment.

8. Plant varieties and animal breeds permitted to be imported for implementation of investment projects in agriculture, forestry or fisheries.

The list of plant varieties and animal breeds permitted to be imported to serve as a basis for tax exemption specified in this Clause is issued by the Ministry of Agriculture and Rural Development.

9. Import duty exemption for imports specified in Clauses 7 and 8 of this Article is also applicable to project expansion or technology replacement or renewal.

10. First-time duty exemption is given to equipment and devices on the list provided in Appendix II to Decree No. 87/2010/ND-CP, which are imported to create fixed assets of investment projects eligible for import duty incentives or ODA-funded investment projects on hotels, offices, apartments for lease, houses, trade centers, technical services, supermarkets, golf courses, tourist resorts, sports facilities, recreation and entertainment centers, health establishments, training, culture, finance, banking, insurance, audit or consultancy services.

Projects eligible for incentives under this Clause are not eligible for tax exemption under other clauses of this Article.

11. Goods imported to serve petroleum activities, including:

a/ Equipment and machinery which satisfy the conditions specified at Point a, Clause 7 of this Article; special-use vehicles necessary for petroleum activities; vehicles to carry workers to/from work, including cars of 24 seats or more and waterway craft, even components, details, knockdown parts, fittings and spare parts, molds and accessories for complete assembly or use with the above equipment, machinery, special-use vehicles and vehicles to carry workers, which satisfy the conditions prescribed at Point c, Clause 7 of this Article.

The list of and criteria for identification of special-use vehicles necessary for petroleum activities to serve as a basis for tax exemption mentioned at this Point are issued by the Ministry of Science and Technology.

b/ Domestically unavailable supplies necessary for petroleum activities

The list of domestically available supplies necessary for petroleum activities to serve as a basis for tax exemption mentioned at this Point is issued the Ministry of Planning and Investment;

c/ Medical equipment and first-aid medicines for use on oil rigs and floating works as certified by the Ministry of Health;

d/ Office equipment for petroleum activities;

e/ Other goods temporarily imported for re-export for petroleum activities.

In case goods specified in this Clause are imported by subcontractors and other organizations or individuals directly or through entrustment, bidding, rent and sublease, etc., for supply to organizations and individuals engaged in petroleum prospecting, exploration and exploitation activities under petroleum service contracts or goods supply contracts, these goods are also exempt from import duty.

12. Shipbuilders are exempt from export duty for exported seagoing ships and exempt from import duty for:

a/ Machinery and equipment imported to create their fixed assets which satisfy the conditions specified at Point a, Clause 7 of this Article.

b/ Vehicles in technological lines which are imported to create fixed assets.

The list of or criteria for identification of vehicles included in technological lines to serve as a basis for tax exemption mentioned at this Point is issued by the Ministry of Science and Technology.

c/ Domestically unavailable materials, supplies and semi-finished products for shipbuilding.

The list of domestically available materials, supplies and semi-finished products for shipbuilding to serve as a basis for tax exemption mentioned at this Point is issued by the Ministry of Planning and Investment.

13. Import duty exemption for domestically unavailable materials and supplies which are imported directly for software production.

The list of domestically available materials and supplies directly for software production to serve as a basis for tax exemption mentioned at this Point is issued by the Ministry of Planning and Investment.

14. Import duty exemption for goods imported directly for scientific research and technology development, including domestically unavailable machinery, equipment, spare parts, supplies and vehicles and technologies; scientific documents, books, newspapers and journals and online information on science and technology.

The list of domestically available machinery, equipment, spare parts, supplies, vehicles and technologies directly used in scientific research and technology development to serve as a basis for tax exemption mentioned in this Clause is issued by the Ministry of Planning and Investment.

15. Import duty exemption for 5 years from the date of production commencement for domestically unavailable materials, supplies and components which are imported for production under investment projects in:

a/ Fields eligible for special investment promotion provided in Appendix I to the Government’s Decree No. 87/2010/ND-CP of August 13, 2010 (except investment projects to manufacture or assemble cars, motorcycles, air conditioners, heaters, refrigerators, washing machines, electric fans, dish washers, disc players, hi-fi players, electric irons, kettles, hair dryers, hand dryers, liquors, beers, cigarettes and other commodity items under the Prime Minister’s decisions which are ineligible for import duty exemption);

b/ Geographical areas with extremely difficult socio-economic conditions provided in the Appendix on geographical areas eligible for enterprise income tax incentives to the Government’s Decree No. 124/2008/ND-CP of December 11, 2008, detailing and guiding a number of articles of the Law on Enterprise Income Tax, and Decree No. 53/2010/ND-CP of May 19, 2010, providing for geographical areas eligible for investment or enterprise income tax incentives for new administrative units established upon the Government’s adjustment of administrative boundaries (except projects to manufacture or assemble cars, motorbikes, air conditioners, heaters, refrigerators, washing machines, electric fans, dish washers, disc players, hi-fi players, electric irons, kettles, hair dryers, hand dryers, liquors, beers, cigarettes and other commodity items under the Prime Minister’s decisions which are ineligible for import duty exemption).

The date of production commencement to serve as a basis for import duty exemption for 5 years as guided in this Clause is the date when an enterprise actually commences production activities as certified by the management board of the industrial park, export-processing zone, hi-tech park or economic zone where the enterprise is operating, or certified by the provincial-level Industry and Trade Department of the locality where the project is implemented in case the enterprise does not operate in such park or zone.

The list of domestically available materials, supplies and components to serve as a basis for tax exemption mentioned in this Clause is issued by the Ministry of Planning and Investment.

16. Goods produced, processed, reprocessed or assembled in non-tariff zones without using imported materials or components are exempt from import duty when being imported into the domestic market. If using imported materials or components, these goods are subject to import duty when being imported into the domestic market. Bases and methods for import duty calculation comply with Clause 2, Article 96 of this Circular.

17. Machinery, equipment and vehicles temporarily imported into Vietnam for re-export by foreign contractors for the implementation of ODA-funded projects in Vietnam are exempt from import duty when being temporarily imported and are exempt from export duty when being re-exported. Upon the expiration of the duration of work construction or project implementation, foreign contractors shall re-export these goods. If foreign contractors do not re-export these goods but liquidate or transfer them in Vietnam, they shall obtain permission of competent state agencies and make import duty declaration and payment according to regulations.

Particularly, temporary import for re-export is not applicable to cars of under 24 seats and automobiles designed to carry both passengers and cargo and equivalent to cars of under 24 seats. Foreign contractors wishing to import these automobiles into Vietnam for use shall pay import duty under regulations. Upon the completion of work construction, foreign contractors shall re-export the imported automobiles and will have the paid import duty amounts refunded. The tax refund level complies with Clause 9, Article 112 of this Circular.

18. Domestically unavailable materials, supplies and semi-finished products imported for production under investment projects in border-gate economic zones are exempt from tax under the Prime Minister’s Decision No. 33/2009/QD-TTg of March 2, 2009, promulgating financial mechanisms and policies applicable to border-gate economic zones, and guiding documents.

19. Goods imported for sale at duty-free shops under the Prime Minister’s decision comply with the Ministry of Finance’s Circular No. 120/2009/TT-BTC of June 16, 2009.

Sales promotion or trial use goods which are supplied free-of-charge by foreign parties for sale together with goods at duty-free shops are not liable to import duty but subject to customs supervision and management like goods imported for sale at duty-free shops.

20. Tax exemption in special cases specified in Clause 20, Article 12 of the Government’s Decree No. 87/2010/ND-CP of August 13, 2010.

21. Components and parts of domestically unavailable machinery and equipment imported for projects to manufacture agricultural machinery and reduce post-harvest loss which are eligible for incentives under the Prime Minister’s Decision No. 63/2010/QD-TTg of October 15, 2010, are exempt from import duty if they fully satisfy the following conditions:

a/ Importers are on the Ministry of Agriculture and Rural Development-issued list of manufactures of machinery and equipment for reducing post-harvest loss that are eligible for incentives under Decision No. 63/2010/QD-TTg;

b/ To be exempt from import duty, components and parts of imported machinery and equipment must satisfy the following conditions:

b.1/ Not being on the Ministry of Planning and Investment-issued list of domestically available equipment, machinery, spare parts and special-use vehicles;

b.2/ Being conformable with the investment fields of manufacturing agricultural machinery to reduce post-harvest loss written in investment licenses;

b.3/ Being conformable with technical design documents and installation plans of machinery and equipment;

b.4/ Their quantities suit the manufacturing capacity.

c/ Organizations and individuals entitled to duty exemption as mentioned in this Clause shall make a written commitment on the accuracy of, and take responsibility before law for, the quantities of components and parts of imported machinery and equipment, and may choose the most convenient customs branch for carrying out import procedures.

22. Other guidance:

a/ Cases eligible for import duty exemption for goods imported to create fixed assets specified in this Article, in which goods are not imported from abroad but are import duty-free goods transferred in Vietnam from other enterprises, the receiving enterprises will be exempt from import duty, and import duty will not be retrospectively collected from transferring enterprises, provided that the transfer price is exclusive of import duty.

b/ Organizations and individuals that carry out entrusted import or win bids for import of goods (at import duty-exclusive prices under entrustment contracts or winning bids under bid-winning decisions) for supply to entities eligible for import duty exemption under Clauses 7 thru 18 of this Article will also be exempt from import duty for these goods.

c/ Goods and equipment imported to create fixed assets of projects eligible for investment incentives which already enjoy import duty incentives in the fields and geographical areas eligible for investment incentives under relevant laws, while owners of these projects transfer such projects to others (change of project owners), continue to be exempt from import duty if they fully satisfy the following conditions:

c.1/ At the time of transfer, the Law on Export Duty and Import Duty and guiding documents provide that the projects fall in the fields or geographical areas eligible for investment incentives;

c.2/ The transfer prices of machinery and equipment imported to create fixed assets of the projects are exclusive of import duty;

c.3/ Transferees (new owners of the projects) are investors of transferred projects as written in the adjusted investment certificates.

Ten days after the date of transfer, owners of transferred projects and transferees shall declare such transfer to the customs office with which they register the list of duty-free goods of the projects.

d/ In case financial leasing companies import machinery, equipment and vehicles for lease to entities eligible for import duty exemption defined in Clauses 7, 9, 11, 12 and 14 of this Article, they will be also exempt from import duty like importing project owners under Clause 1, Article 22 of Decree No. 16/2001/ND-CP of May 2, 2001, if they fully satisfy the following conditions:

d.1/ The lease price under the financial leasing contract is exclusive of import duty;

d.2/ Tax-free imports are included in the list of tax-free goods and tax-free goods reconciliation monitoring slip under the project eligible for investment incentives, made by the project owner;

Upon the completion of the financial leasing contract, if tax-free leased goods have not yet been used for the project eligible for investment incentives as they are designed for upon importation, the financial leasing company shall declare and pay tax under Clause 8, Article 11 of this Circular. Such project is not allowed to import goods in replacement of the duty-free leased goods.

dd/ For projects eligible for investment incentives already granted investment licenses or investment incentive certificates before the effective date of Decree No. 87/2010/ND-CP which enjoy export duty or import duty incentives higher than the incentives guided in Decree No. 87/2010/ND-CP, the higher incentives continue to apply if these projects fully satisfy the following conditions:

dd.1/ The investment license or investment incentive certificate remains valid without any change in investment incentive clauses.

The incentives written in the investment license or investment incentive certificate are lawful at the time of grant of such license or certificate.

dd.2/ The list of duty-free goods is registered according to regulations.

In case the investment license or investment incentive certificate provides export duty or import duty incentives lower than the incentives specified in Decree No. 87/2010/ND-CP, those specified in Decree No. 87/2010/ND-CP will apply in the remaining incentive duration of the project.

Article 101.Registration of lists of duty-free imports

1. Cases requiring registration of lists of duty-free imports:

Lists of duty-free exports or imports must be registered for goods specified in Article 13 of Decision No. 33/2009/QD-TTg and Clauses 7, 8, 9, 10, 11, 12, 13, 14, 15 and 18, Article 100 of this Circular.

2. Registrants of lists of duty-free imports: Goods users (project owners, shipyard owners, etc.) shall register lists of duty-free imports (according to form No. 07/DMHHNKMT/2013 in Appendix II to this Circular) before carrying out import procedures for the goods. If project owners do not directly import duty-free goods, principal contractors or subcontractors or financial leasing companies that import goods shall use the duty-free goods lists already registered by project owners.

3. Places for registration of lists:

a/ Customs Departments of localities where investment projects are implemented, in case Customs Departments of localities where projects are implemented can be identified; Customs Departments of localities where enterprises are based, in case Customs Departments of localities where projects are implemented cannot be identified, or the nearest Customs Departments, for provinces and cities without customs offices. Directors of Customs Departments shall select and assign a capable unit to register lists of duty-free imports.

In case a Customs Department is in charge of several provinces, apart from the above list-registering unit, the director of the Customs Department may consider and assign the customs branch in charge of the province in which investment projects are implemented to register lists of duty-free imports for projects implemented in that province.

4. Registration dossiers:

When registering lists of duty-free imports, registrants shall submit and produce to customs offices a dossier comprising:

a/ The written request for registration of a list of duty-free imports, specifying quantities of goods and reasons for tax exemption, made according to the form enclosed with this Circular (form No. 08/CVDKDMMT/2013 in Appendix II, for fixed assets, or form No. 09/CVDKDMMTK/2013 in Appendix II, for other cases: to submit 1 original;

b/ The list of duty-free imports enclosed with a reconciliation monitoring slip (made according to form No. 10/PTDTL-UDDT/2013 provided in Appendix II to this Circular): to submit 2 originals, of which:

b.1/ The list of duty-free imports must conform to the project’s investment field, objectives and scope and the reconciliation monitoring slip must be made once for the whole project, or for each stage of project implementation or each project item (if the investment license granted by a competent agency or the econo-technical study and scientific and technical documents of the project describe the project by each stage or each item) or for each combination or line, for systems, combinations or lines of equipment and machinery;

b.2/ In case the list registered for the whole project or for each project item, work, combination or line is erroneous and needs adjustment, the customs declarant may adjust such list on the conditions that, before the time of goods importation, he/she submits to the customs office papers or documents to prove that the adjustment is necessary for the project.

c/ The econo-technical feasibility study and detailed technical design documents of the project and expanded project or a competent agency’s written approval of the annual working program and annual state budget funds or annual resolution of the joint-venture council: to produce 1 original and submit 1 copy;

d/ The technical document and/or written description and/or diagram on the installation or use of duty-free imports or exports on the to-be-registered list, for cases eligible for tax exemption specified at Points c and d, Clause 7 and Point a, Clause 11, Article 100 of this Circular: to submit 1 original.

At the time of registration, if the customs declarant cannot submit the two papers specified at Point d of this Clause, the registering customs office shall take a note in the registered list for the customs branch which carries out procedures to examine these papers.

dd/ In the following specific cases, taxpayers shall additionally submit or produce the following papers:

dd.1/ The investment certificate (even for domestic investment projects capitalized at under fifteen billion Vietnam dong), for investment projects carried out under the Investment Law: to produce the original and submit 1 copy;

dd.2/ The expanded investment certificate, for cases of project expansion or technology replacement or renewal as specified in Clause 9, Article 100 of this Circular, for expanded investment projects under the Investment Law: to submit 1 copy;

dd.3/ The Prime Minister’s decision or approval decision of the head of the managing agency according to competence to approve ODA programs and projects; a competent agency’s written certification that domestic funds are not allocated for goods under ODA projects for tax payment for ODA projects: to produce the original and submit 1 copy;

dd.4/ The shipbuilding contract, for materials, supplies and semi-finished products imported for shipbuilding: to produce the original and submit 1 copy;

dd.5/ The written description of the software production project, for goods imported for software production: to produce the original and submit 1 copy;

dd.6/ The approved scientific research and technological development project, or the investment certificate for projects eligible for investment incentives on scientific research and technology development with regard to goods imported directly for scientific research and technology development activities: to produce the original and submit 1 copy;

e/ The certification given by an agency competent to issue lists of duty-free goods for projects licensed before January 1, 2006, for projects licensed before January 1, 2006 without this list: to produce the original and submit 1 copy;

g/ The list of documents included in the dossier for registration of the list of duty-free goods: to submit 1 original.

5. Bases for customs declarants to declare and register lists of duty-free imports and for customs offices to inspect such declaration and registration include:

a/ The papers and documents specified at Points c, d, dd and e, Clause 4 of this Article;

b/ Fields eligible for import duty incentives provided in Appendix I to Decree No. 87/2010/ND-CP or geographical areas eligible for import duty incentives provided in the Appendix on geographical areas eligible for enterprise income tax incentives to the Government’s Decree No. 124/2008/ND-CP of December 11, 2008, detailing and guiding a number of articles of the Law on Enterprise Income Tax, and Decree No. 53/2010/ND-CP of May 19, 2010, providing for geographical areas eligible for investment and enterprise income tax incentives for new administrative units established upon the Government’s adjustment of administrative boundaries; equipment imported for the first time to create fixed assets provided in Appendix II to and Article 12 of Decree No. 87/2010/ND-CP as guided in Article 100 of this Circular;

c/ Goods lists issued by competent agencies in the following specific cases:

c.1/ The list of domestically available machinery, equipment, spare parts, special-use vehicles, materials, supplies and semi-finished products, issued together with the Ministry of Planning and Investment’s Circular No. 04/2012/TT-BKHDT of August 13, 2012;

c.2/ The Ministry of Science and Technology-issued list of or criteria for identification of special-use vehicles in technological lines;

c.3/ The Ministry of Agriculture and Rural Development-issued list of plant varieties and animal breeds permitted for import;

c.4/ The list of groups of equipment exempt from import duty only for the first time of importation provided in Appendix II to and Article 12 of Decree No. 87/2010/ND-CP;

c.5/ The Ministry of Science and Technology-issued list or criteria for identification of special-use vehicles necessary for petroleum activities;

c.6/ The Ministry of Health’s certification of medical equipment and instruments and first-aid medicines for use on oil rigs and floating works;

c.7/ The Ministry of Science and Technology-issued list or criteria for identification of goods being special-use vehicles in technological lines imported to create fixed assets of shipyards;

c.8/ The Ministry of Planning and Investment-issued list of domestically available machinery, equipment, spare parts, supplies, vehicles and technologies directly used in scientific research and technology development to serve as a basis for identification of goods used in scientific research and technology development.

6. Time for registration of lists: Before registration of the first import declaration of the project, project item or stage or the expanded project.

7. The customs office that has given certification in the list of duty-free imports and reconciliation monitoring slip but later detects errors in such list (the quantity of goods exceed the actual capacity of the project; types of goods are incompliant with the objectives and use purposes of goods; and etc.) shall:

a/ Notify the errors to the registrant for adjustment of the list according to regulations;

b/ Examine the adjustment and update the registered list according to the project’s actual objectives and scale;

c/ Collect tax on the quantities of duty-free imports in excess of the quantities and types as compared to the adjusted list.

8. In case investment certificates of investment projects are revoked:

a/ The customs office that issues the list of duty-free imports shall:

a.1/ Withdraw the issued list;

a.2/ Notify customs offices nationwide not to carry out tax-free procedures for the issued list.

b/ Customs offices that have exempted tax for the projects according to the withdrawn lists shall collect tax on duty-free goods under regulations.

9. In case an enterprise loses the list of duty-free imports and reconciliation monitoring slip, the customs office which registers such list shall, based on the enterprise’s request and certification of customs offices of other localities of such loss, conduct examination and re-issue the list and reconciliation monitoring slip for the project’s quantities of goods not yet imported.

The above examination and re-issuance of the list of duty-free imports and reconciliation monitoring slip are specified as follows:

a/ A dossier of request for re-issuance of a list of duty-free imports and reconciliation monitoring slip comprises:

a.1/ The enterprise’s written request for re-issuance of the list and slip, indicating:

a.1.1/ Reasons for the loss of the list and slip;

a.1.2/ Names, quantities and value of goods according to the registered list;

a.1.3/ Names, quantities and value of goods actually imported according to the registered list;

a.1.4/ Names, quantities and value of goods not yet imported according to the registered list;

a.2/ All customs declarations of the quantities of goods already imported according to the registered list and slip, and the list of declarations of goods already imported: to produce the originals and submit the copies;

a.3/ The list of duty-free imports and reconciliation monitoring slip of the customs office that carries out the import procedures for the last goods lot before the loss: 1 copy certified by the customs office of importation.

The enterprise shall commit to take responsibility before law for the accuracy of the above declaration.

b/ Order of implementation:

b.1/ If the list of duty-free goods is lost, the customs office that re-issues such list shall, based on the request dossier and documents provided by the enterprise, notify the  provincial-level Customs Departments of the cancellation of the issued list and issue 1 copy of the list of duty-free imports in replacement of the lost one.

b.2/ If the reconciliation monitoring slip is lost:

b.2.1/ Based on the dossier declaring the loss of the reconciliation monitoring slip and the request for re-issuance of this slip:

- The customs office that re-issues the slip shall notify the Customs Departments of the cancellation of the lost slip and, before considering the re-issuance, request the related Customs Departments to give written certification of the quantities of duty-free goods already imported according to the issued list and slip (specifying the serial numbers and dates of issuance of the list and slip);

- Within 10 days after receiving a written request of the customs office that re-issues the slip, the Customs Departments shall:

+ Examine and compare the dossiers of imports and import and export data, and determine the quantities of duty-free imports according to the list of tax-free imports and the lost reconciliation monitoring slip, then send written certification to the customs office that re-issue the slip;

+ Not grant tax exemption for subsequent goods lots according to the list and lost slip;

b.2.2/ After fully receiving the Customs Departments’ written certifications of the quantities of duty-free goods already imported according to the issued list and slip, the customs office that re-issues such slip shall:

- Summarize the quantities of duty-free goods already imported by the enterprise according to the issued list and slip;

- Check to determine the quantities of duty-free goods imported to create fixed assets of the project and the use of such goods before re-issuing another reconciliation monitoring slip;

- Re-issue a new reconciliation monitoring slip for the quantities of goods not yet imported according to the lost slip;

- Write in the re-issued slip “RE-ISSUED FIRST TIME”;

- Handle violations of regulations on archive of dossiers and documents;

The customs office shall re-issue a reconciliation monitoring slip within 5 working days after receiving the written certifications of the Customs Departments.

Within 1 year after re-issuing a list of duty-free goods and reconciliation monitoring slip, the customs office shall conduct post-customs clearance inspection of projects for which such list and slip are re-issued.

10. Responsibilities of taxpayers:

a/ To determine their needs and make lists of duty-free imports and exports under the Law on Import Duty’s and Export Duty provisions on duty-free objects, Decree No. 87/2010/ND-CP, Article 13 of Decision No. 33/2009/QD-TTg, this Circular and other relevant documents;

b/ To take responsibility before law for the accurate and truthful declaration of imported goods items declared in duty-free lists and for the proper use of these duty-free goods.

11. Responsibilities of customs offices:

a/ Customs offices shall receive, examine and process dossiers for registration of lists of duty-free goods as follows:

a.1/ In case dossiers are incomplete, they shall issue a written reply (clearly stating the reason) within 3 working days after receiving the dossiers;

a.2/ In case dossiers are complete, they shall, within 10 working days after receiving the dossiers, examine and compare documents in these dossiers with the provisions of Article 12 of Decree No. 87/2010/ND-CP, Article 13 of Decision No. 33/2009/QD-TTg, and Articles 100 and 101 of this Circular, so as to identify duty-fee objects, the consistency and accuracy of the dossiers and proceed with the following:

a.2.1/ If goods are ineligible for tax exemption according to regulations, they shall not register lists of duty-free imports and issue a written reply to enterprises.

For projects in the fields or geographical areas eligible for investment incentives but goods registered in the lists of duty-free imports are not conformable with projects’ objectives and size, they shall notify and guide enterprises to adjust these lists.

a.2.2/ If goods are eligible for tax exemption and all details of the dossiers are satisfactory, they shall record in the monitoring book and append certification marks to 2 copies of the list of duty-free imports and 1 copy of the reconciliation monitoring slip (1 copy of the list of duty-free imports and 1 copy of the reconciliation monitoring slip to be handed to taxpayers for production to customs offices for making reconciliation when carrying out customs procedures for actually imported goods, and 1 copy of such list to be kept by the issuing customs office) according to regulations;

a.2.3/ At the time of registration of lists of duty-free goods, if the customs office has insufficient grounds to determine whether goods satisfy the conditions specified at Points a and c, Clause 7, Article 100, it shall take a note in such list and the reconciliation monitoring slip for inspection and comparison upon importation or for post-customs clearance inspection.

b/ Reporting regime:

Every 3 months, no later than the 10^thof the first month of the subsequent quarter, Customs Departments which register lists of duty-free imports shall make a list of cases in which such lists have been registered at their units according to form No. 11/BCTHDMMT/2013 in Appendix II to this Circular and report it to the General Department of Customs.

Article 102.Tax exemption dossiers and procedures

1. Tax exemption dossiers are customs dossiers as guided in this Circular. Taxpayers shall also submit to customs offices that carry out import procedures the papers which, when registering lists of duty-free goods, they have not yet produced to registering customs offices, for cases in which lists of duty-free imports must be registered.

For taxpayers that meet with objective difficulties and fall in other cases eligible for exemption from import duty and export duty under Clause 20, Article 12 of Decree No. 87/2010/ND-CP, a dossier must also have a written certification of objective reasons for which import duty and export duty exemption is requested, given by provincial-level People’s Committees, ministries or ministerial-level agencies.

2. Tax exemption procedures:

a/ For cases not requiring registration of lists of duty-free imports:

a.1/ Taxpayers shall calculate and declare tax amounts to be exempted for each goods item (except goods exported or imported for processing) and customs declarations as in the case of tax payment. Customs offices shall compare tax exemption dossiers and tax amounts requested to be exempted with current regulations before carrying out tax exemption procedures for each customs declaration under regulations.

In case customs offices identify through inspection that imports or exports are ineligible for tax exemption as declared by taxpayers, they shall assess tax and sanction violations (if any) under regulations.

a.2/ In case taxpayers meet with objective difficulties and other circumstances and become eligible for import duty and export duty exemption under Clause 20, Article 12 of Decree No. 87/2010/ND-CP:

a.2.1/ Taxpayers shall determine tax amounts requested to be exempted and send written requests (enclosed with relevant dossiers) to the General Department of Customs for reporting to the Ministry of Finance for submission to the Prime Minister for tax exemption consideration;

a.2.2/ The General Department of Customs shall examine all dossiers. If the dossiers are incomplete or reasons for tax exemption need to be further clarified, it shall request in writing the completion of these dossiers. When obtaining sufficient objective grounds, the General Department of Customs shall submit draft reports to the Ministry of Finance for submission to the Prime Minister;

a.2.3/ The Ministry of Finance shall send written notices on the Prime Minister’s opinions to concerned taxpayers and customs offices for compliance;

a.2.4/ Customs offices carrying out goods import and export procedures shall exempt import duty and export duty for goods quantities already permitted for tax exemption by the Prime Minister or fully collect taxes according to the Prime Minister’s opinions.

b/ For cases requiring registration of lists of duty-free imports:

b.1/ Apart from customs procedures guided at Point a.1, Clause 2 of this Article, customs offices shall compare tax exemption dossiers with current regulations and update the quantity and value of duty-free goods already imported in taxpayers’ original reconciliation monitoring slips and sign for certification under regulations, then file 1 copy of the list of duty-free imports and the reconciliation monitoring slip specifying the quantity and value of duty-free imports and import duty in the import dossier (including cases in which goods are transferred among entities eligible for tax exemption).

b.2/ Customs offices shall grant tax exemption only for cases in which customs declarations are registered after the registration of lists. Customs offices shall report cases in which customs declarations are registered before the registration of lists, clearly stating the reasons and proposing handling measures, to the Ministry of Finance for consideration and settlement on a case-by-case basis.

3. Tax exemption for imports and exports sent via the express delivery service complies with the Finance Ministry’s circular prescribing customs procedures for imports and exports sent via the express delivery service.

Article 103.Finalization of the import and use of duty-free goods

1. Finalization:

a/ For cases requiring registration of lists of duty-free imports, apart from using duty-free goods for proper purposes, taxpayers shall finalize the import and use of these goods with customs offices which have registered the lists of duty-free imports according to form No. 12/QTHHNKMT/2013 or form No. 13/QTNL-VT-LK-BTP/2013 in Appendix II to this Circular, for management, monitoring and inspection.

b/ Domestically unavailable components or parts of machinery and equipment imported for projects to manufacture agricultural machinery and reduce post-harvest loss which are eligible for incentives under the Prime Minister’s Decision No. 63/2010/QD-TTg of October 15, 2010, are exempt from import duty under Clause 21, Article 100 of this Circular.

2. Time limits for and contents of finalization:

a/ For the cases specified at Point d, Clause 7, Point c, Clause 12, Clause 13, Clause 15, Clause 18, and Clause 21, Article 100 of this Circular:

a.1/ Time limit for finalization:

a.1.1/ Within 45 days after the termination of shipbuilding contracts, for the case specified in Clause 12, the completion of software production, for the case specified in Clause 13, the completion of production or manufacture, for the case specified at Point d, Clause 7, or the end of a fiscal year, for the cases specified in Clauses 15 and 18, Article 100 of this Circular, taxpayers shall finalize the import and use of duty-free imports under shipbuilding contracts or for software production or in the fiscal year, with customs offices which have registered the lists of duty-free goods.

a.1.2/ Once every year, importers of duty-free goods specified in Clause 21, Article 100 of this Circular shall finalize duty-free goods with customs offices carrying out the import procedures.

a.2/ Finalization contents:

a.2.1/ Quantities of duty-free imported materials, supplies, components and semi-finished products;

a.2.2/ Actual norms of duty-free imported materials, supplies, components and semi-finished products;

a.2.3/ Quantities of duty-free imported materials, supplies, components and semi-finished products which have been used for production;

a.2.4/ Quantities of products;

a.2.5/ Quantities of duty-free imported materials, supplies, components and semi-finished products which have been used for other purposes;

a.2.6/ Quantities of duty-free imported materials, supplies, components and semi-finished products in stock to be carried forward to the subsequent year.

a.3/ Upon the expiration of goods supply contracts or service provision contracts, for the case specified in Clause 11, Article 100 of this Circular, goods users shall make finalization with customs offices which have registered their lists of duty-free goods and notify organizations and individuals that carry out petroleum prospecting, exploration and exploitation activities of the quantities and values of import duty-free goods. For the quantities of import duty-free goods which are not used for petroleum prospecting, exploration and exploitation activities, exempted import duty amounts must be fully paid under regulations.

b/ For other cases:

b.1/ Finalization time limit: Within 45 days after the completion of the import of goods on the registered list of duty-free goods.

In case a project has been put into production and business while goods have not yet been fully imported according to the registered list of duty-free goods, within 45 days after this project is put into production and business, the taxpayer shall finalize the import and use of duty-free imports with the customs office which has registered this list according to this Article.

b.2/ Finalization contents:

b.2.1/ Quantities of goods according to the registered list of duty-free goods;

b.2.2/ Quantities of goods actually imported and used to create fixed assets of enterprises;

b.2.3/ Quantities of goods actually imported but used for other purposes and tax payment for these goods;

b.2.4/ Accounting of fixed assets under Circular No. 45/2013/TT-BTC (for goods imported to create fixed assets);

3. Responsibilities of taxpayers:

a/ To submit the finalization of the import and use of duty-free goods as guided in Clauses 1 and 2 of this Article to customs offices and take responsibility before law for such finalization;

b/ To fully pay tax amounts and late payment interests (if any) in the following cases:

b.1/ They use duty-free goods for improper purposes;

b.2/ They declare goods ineligible for tax exemption to be eligible for tax exemption which have been cleared from customs procedures according to their declarations;

b.3/ The whole quantities of materials and supplies imported in excess of production demands and still left in stock, for imported goods which are duty-free within 5 years as specified in Clause 15, Article 100 of this Circular.

c/ Taxpayers that fail to fully submit finalization dossiers within the prescribed time limit shall be administratively sanctioned according to law. Past 30 days after the deadline for submission of finalization dossiers, if taxpayers still fail to submit these dossiers, customs offices shall update information on the taxpayers’ observance of law into the risk management system and, if having any doubt, conduct post-customs clearance inspection at the enterprises’ offices.

4. Responsibilities of customs offices registering lists of duty-free imports: To notify in writing taxpayers of the finalization of the import and use of duty-free goods, and:

a/ To fully collect taxes and fines (if any) for the cases specified at Points b and c, Clause 3 of this Article;

b/ To conduct post-customs clearance inspection at enterprises’ offices when necessary;

c/ To assess tax and fully collect taxes and late payment interests (if any) if detecting that enterprises fail to declare changes of the use purposes of duty-free goods or declare goods ineligible for tax exemption to be eligible for tax exemption which have been cleared from customs procedures.

5. For projects with lists of duty-free imports registered between January 1, 2006, and the effective date of this Circular for which finalization has not yet been made with customs offices, project owners shall, within 45 days from the effective date of this Circular, submit the finalization of the import and use of duty-free goods according to this Article.

Section 4

CASES OF TAX EXEMPTION CONSIDERATION AND PROCEDURES

Article 104.Cases to be considered for tax exemption

Imports or exports falling into the following cases may be considered for import duty or export duty exemption:

1. Special-use goods directly used for security and national defense purposes which are imported under a specific plan approved by a ministry and registered with and accepted by the Ministry of Finance at the beginning of the year (line ministries shall register import plans no later than March 31 every year, making two separate lists of goods: list of central budget-funded goods and list of local budget-funded goods).

Particularly, local budget-funded special-use goods used directly for security and national defense may only be considered for tax exemption if they are domestically unavailable. The Ministry of Planning and Investment’s list of domestically available goods serves as a basis for determining domestically unavailable goods for tax exemption.

2. Special-use imports used directly for scientific research (except the case specified in Clause 13, Article 12 of Decree No. 87/2010/ND-CP) which are on a specific list approved by a line ministry.

3. Special-use imports used directly for education and training which are on a specific list approved by a line ministry.

4. Goods permitted for import or export as gifts, donations or sample goods, including the following cases with specific duty-free quotas below:

a/ For exports:

a.1/ Goods of organizations and individuals in Vietnam which are permitted for export as gifts or donations for overseas organizations and individuals;

a.2/ Goods of overseas organizations and individuals which are permitted for export, which are gifts and donations from organizations and individuals in Vietnam during the former’s working visits, tourist stays or visits to their relatives in Vietnam;

a.3/ Goods of organizations or individuals in Vietnam which are permitted for export for display at fairs or exhibitions or for advertising, which are afterwards given as gifts or donations to overseas organizations or individuals;

a.4/ Organizations or individuals sent by the State to work or study aboard or Vietnamese tourists on overseas tours may, in addition to personal luggage quotas applicable to persons on exit, be considered for tax exemption for goods they bring along as gifts or donations to overseas organizations or individuals within the quotas applicable to exports as gifts or donations;

a.5/ Sample goods of organizations or individuals in Vietnam which are sent to overseas organizations or individuals;

An organization’s goods as gifts or donations or sample goods valued at up to VND 30 (thirty) million may be considered for export duty exemption.

An individual’s goods as gifts, donations or sample goods valued at up to VND 1 (one) million or at over VND 1 (one) million with their total payable duty amount of under VND 50,000 (fifty-thousand) are exempt from export duty (without having to go through export duty exemption procedures).

b/ For imports:

b.1/ Gifts or donations valued at up to VND 30 (thirty) million given by overseas organizations or individuals to Vietnamese organizations may be considered for tax exemption.

Vietnamese organizations include state agencies, political organizations, socio-political organizations, social organizations, socio-professional organizations, and people’s armed units;

b.2/ Gifts or donations given by overseas organizations or individuals to Vietnamese individuals which are valued at up to VND 1 (one) million or at over VND 1 (one) million with their total payable duty amount of under VND 50,000 (fifty-thousand) are exempt from tax (without having to go through import duty exemption procedures).

Goods which are addressed to an individual but actually donated to an organization (with a written certification of that organization) and managed and used by such organization may be considered for tax exemption according to the quotas applicable to gifts and donations given by overseas organizations and individuals to Vietnamese organizations.

b.3/ For overseas organizations’ or individuals’ goods permitted for temporary import into Vietnam for display at fairs or exhibitions or imported into Vietnam as sample goods or for advertising which are afterwards not re-exported but given as gifts, donations or souvenirs to Vietnamese organizations or individuals: Tax exemption may be considered for goods given as gifts or souvenirs to fair or exhibition visitors which are valued at under VND 50,000 (fifty-thousand)/piece and included in an import lot valued at VND 10 (ten) million at most;

b.4/ For overseas organizations’ or individuals’ goods permitted for import into Vietnam as prizes of sports, cultural or artistic competitions: Tax exemption may be considered for goods valued at up to VND 2 (two) million/prize (for individuals) or up to VND 30 (thirty) million/prize (for organizations) and included in an import lot with a total value not exceeding the total value of prizes in kind;

b.5/ Persons on entry into Vietnam may, in addition to personal luggage quotas, be exempt from tax on goods they bring along as gifts, donations or souvenirs which are valued at up to VND 1 (one) million or valued at over VND 1 (one) million with their total payable duty amount of under VND 50,000 (fifty-thousand) (without having to go through import duty exemption procedures);

b.6/ Tax exemption may be considered for goods falling in the cases specified in Clauses 1, 3, 4 and 17, Article 100 of this Circular which are not re-exported but are given by overseas organizations or individuals as gifts or donations (if they are conditional imports, a competent state agency’s permission is required) to Vietnamese organizations or individuals and are valued at up to VND 30 (thirty) million, for organizations, or up to VND 1 (one) million, for individuals. For gifts or donations for individuals which are valued at up to VND 1 (one) million or at over VND 1 (one) million with the total payable duty amount of under VND 50,000 (fifty-thousand), import duty exemption procedures are not required;

b.7/ Tax exemption may be considered for sample goods sent by overseas organizations or individuals to Vietnamese organizations or individuals which are valued at up to VND 30 (thirty) million, for organizations, or valued at up to VND 1 (one) million or at over VND 1 (one) million with their total payable duty amount of under VND 50,000 (fifty-thousand), for individuals.

c/ Tax must be paid for the value of gifts or donations exceeding the quotas for tax exemption consideration or tax exemption, except the following cases which may be considered for tax exemption for the whole value of the goods lot:

c.1/ Gift or donation recipients that are state-funded non-business administrative units or social mass organizations and permitted by their managing agencies to receive those gifts or donations may be considered for tax exemption on a case-by-case basis. In this case, they shall record an increase in their budget-allocated assets, including the duty amount and the value of the lot of gifts or donations, and manage and use them under current regulations on management of budget-allocated assets;

c.2/ Goods are presented or donated for humanitarian, charity and scientific research purposes;

c.3/ Medicines sent by overseas Vietnamese to their relatives in Vietnam who are members of families with meritorious service to the revolution, war invalids, martyrs or helpless elderly people as certified by local administrations.

5. Duty-free goods under treaties to which Vietnam is a contracting party.

Article 105.Dossiers for tax exemption consideration

A dossier for tax exemption consideration comprises:

1. One copy of the customs dossier made under this Circular;

2. Other papers, depending on the following specific cases:

a/ The written request for tax exemption consideration, made by the user of exports or imports (except the case specified at Point b of this Clause), specifying types and value of goods, tax amount, reason for tax exemption, and the customs declaration. In case there are multiple types of goods in different customs declarations, a list of these goods and customs declarations for tax exemption consideration must be made together with a commitment on accurate declaration, provision of proper documents and use of goods for proper purposes: to submit 1 original;

b/ The written request for tax exemption consideration, made by the Ministry of National Defense or the Ministry of Public Security or a unit authorized or decentralized by the Ministry of National Defense or the Ministry of Public Security (clearly stating that imports for defense and national security purposes are funded by the central or local budget; quantity, types and value of imports on the list approved by the Ministry of National Defense or the Ministry of Public Security after reaching agreement with the Ministry of Finance at the beginning of the year - the Ministry of National Defense or the Ministry of Public Security shall register annual import plans with the Ministry of Finance no later than the end of March 31; tax amount and customs declaration. In case there are multiple types of goods in different customs declarations, a list of these goods and customs declarations for tax exemption consideration must be made together with a commitment on accurate declaration, provision of proper documents and use of goods for proper purposes), enclosed with a reconciliation monitoring slip for special-use goods imported for security and national defense purpose: To submit 1 original of the written request and 1 original of the reconciliation monitoring slip;

c/ The import entrustment contract (in case of entrusted import) or the bid-winning notice enclosed with the goods supply contract (in case of import through bidding), clearly indicating that the payment price is exclusive of import duty: to submit 1 copy;

d/ The decision approving a scientific research project and the list of goods to be imported for implementation of this project, issued by a line ministry, for special-use imports directly for scientific research: to submit 1 original or the decision, 1 copy of the list enclosed with the original for comparison (for multiple importation, the reconciliation monitoring slip is required);

e/ The decision approving an equipment investment project and the list of equipment to be imported, issued by a line ministry, for special-use imports directly for education and training: to submit 1 original (for multiple importation, the reconciliation monitoring slip is required);

g/ The treaty to which Vietnam is a contracting party: to submit 1 original; the concerned state agency’s written certification of the scope of tax exemption and duty-free goods under this treaty: 1 original,  for cases in which tax exemption is requested under this treaty;

h/ For gifts, donations or sample goods:

h.1/ The notice or decision or agreement on goods donation or presentation; or the notice or agreement on sending of sample goods: to submit 1 copy;

h.2/ The written certification of the commune-level People’s Committee, in case relatives of an overseas Vietnamese are members of a family with meritorious service to the revolution, war invalids, martyrs or helpless elderly people and receive medicines as gifts from this overseas Vietnamese: to submit 1 original;

h.3/ The letter of authorization to clear customs procedures, made by the recipient of gifts, donations or sample goods in case customs procedures for these gifts, donations or sample goods are carried out by the authorized person: to submit 1 copy;

h.4/ The competent state agency’s written permission for non-export of temporarily imported goods for use as gifts or donations for Vietnamese organizations or individuals (in case permission is required); the invoice or ex-warehousing bill for those gifts or donations; and the record of delivery and receipt of goods between the donor and the donee in case goods are given as gifts or donations by the tax-exempt importer by mode of temporary import for re-export: to submit 1 copy;

h.5/ The superior managing agency’s certification of the permission to receive duty-exempt goods, for gifts or donations for state-funded non-business administrative agencies or mass organizations with a value exceeding the quota for tax exemption consideration.

i/ Other documents related to the determination of the tax-exempt amount: to submit 1 copy each.

k/ The list of documents in the dossier for tax exemption consideration.

Article 106.Procedures and order for tax exemption consideration

1. Submission and receipt of dossiers for tax exemption consideration

a/ Eligible taxpayers shall determine tax amounts for exemption consideration; and submit dossiers to customs offices competent to consider tax exemption as defined in Article 107 of this Circular. If the Ministry of Finance has the tax exemption competence, taxpayers shall determine tax amounts for exemption consideration and submit dossiers for tax exemption consideration to the General Department of Customs;

For imports eligible for tax exemption consideration, the time limit for submission of dossiers for tax exemption consideration is 15 working days from the date of customs clearance or goods release.

b/ When dossiers for tax exemption consideration are submitted directly to customs offices, customs officers shall receive dossiers and append a receipt mark and record the time of receipt and number of documents included in the dossiers;

c/ When dossiers for tax exemption consideration are submitted by post, customs officers shall append a receipt mark showing the date of receipt and record them in their incoming-mail book;

d/ When dossiers for tax exemption consideration are submitted electronically, customs offices shall receive, examine and accept these dossiers through their electronic data processing systems.

2. Customs offices shall examine dossiers for tax exemption consideration submitted by taxpayers and process them as follows:

a/ If these dossiers are incomplete, they shall, within 3 working days after receiving the dossiers, notify such to taxpayers for completion of the dossiers;

b/ They shall issue tax exemption decisions under regulations or notify taxpayers of reasons for their ineligibility for tax exemption and of payable tax amounts within 15 working days after receiving complete dossiers, and impose sanctions (if any) under current regulations. When physical inspection is needed to have sufficient grounds for processing the dossiers, this time limit may be extended to 50 days at most from the date of receiving complete dossiers.

3. Based on tax exemption decisions, customs offices registering customs declarations shall liquidate exempted tax amounts and append a mark to the original customs declarations filed at their offices and those kept by taxpayers which read: “Goods are exempt from tax under Decision No. …. dated … issued by….” (the specimen mark complies with form No. 14/MDHT/2013 in Appendix II to this Circular).

4. For taxpayers being priority enterprises eligible for tax exemption consideration under treaties, customs offices shall temporarily grant tax exemption according to declarations of enterprises and not conduct accounting in the KT559 accounting system and concurrently open books for monitoring such temporary tax exemption.

Biannually, enterprises shall finalize duty-free imports with customs offices, making a list of import declarations (without having to submit customs declarations) and exempted tax amounts for 6 months and submit documents proving their eligibility for tax exemption consideration under treaties according to Article 105 of this Circular to customs offices of the localities where goods are imported.

Based on finalization results, customs offices shall issue official decisions on tax exemption to taxpayers according to regulations.

Article 107.Competence to consider tax exemption

1. The Ministry of Finance may consider tax exemption for:

a/ Gifts or donations to non-business administrative agencies or mass social organizations with a value exceeding the duty-free quota;

b/ Gifts or donations for humanitarian, charity or scientific research purpose.

2. The General Department of Customs may consider tax exemption for goods imported for security, national defense, scientific research or education and training purpose.

3. Customs branches may grant tax exemption for goods valued at up to VND 1 (one) million, for individuals, or goods valued at over VND 1 (one) million with the total payable tax amount of under VND 50,000 (fifty-thousand), as specified at Points b.2, b.5 and b.6, Clause 4, Article 104 of this Circular.

4. Customs Departments may consider tax exemption for other cases.

Section 5

CASES ELIGIBLE AND PROCEDURES FOR TAX REDUCTION CONSIDERATION

Article 108.Cases eligible for tax reduction consideration

Exports and imports currently under customs supervision which are damaged or lost as assessed and certified by competent agencies or organizations may be considered for tax reduction corresponding to the rate of their actual damage.

Article 109.Adossier for tax reduction consideration comprises:

1. A custom dossier made under this Circular: to submit 1 copy.

2. The taxpayer’s written request for tax reduction consideration, clearly indicating the type, quantity and value of goods, tax amount and reason for tax reduction, and the customs declaration. In case there are multiple types of goods in different customs declarations, goods and customs declarations eligible for tax reduction must be listed with a commitment on accurate declaration and supply of proper documents in the dossier: to submit 1 original.

3. An assessment service provider’s assessment certificate of the lost quantity or actual damage rate of exports or imports: to submit 1 original.

4. The insurance policy: to submit 1 copy.

5. The contract/written agreement on payment of indemnity by the insurer or the carrier (in case damage is caused by the carrier): to submit 1 copy.

In case no insurance is bought for exports and imports eligible for tax reduction specified in Clause 1 Article 108 of this Circular, the dossier for tax reduction consideration does not include documents specified in Clauses 4 and 5 of this Circular.

6. A list of documents in the dossier.

Article 110.Order and procedures for tax reduction consideration

The order and procedures for tax reduction consideration are the same as those for tax exemption consideration.

Article 111.Competence to consider tax reduction

Directors of customs branches at which customs declarations are registered may consider tax reduction.

Section 6

CASES ELIGIBLE AND PROCEDURES FOR TAX REFUND

Article 112.Cases eligible for tax refund consideration

The following cases may be considered for tax refund:

1. Imports for which import duty has been paid but which are still in warehouses or storing yards under customs supervision and permitted for re-export;

2. Exports or imports for which export or import duty has been paid but actually are not exported or imported;

3. Goods for which export or import duty has been paid but have been actually exported or imported in smaller quantities;

4. Goods imported for delivery or sale to foreign parties by Vietnam-based agents; goods imported for sale to foreign companies’ vehicles or vessels on international routes through Vietnamese ports and Vietnamese vehicles or vessels on international routes under the Government’s regulations;

5. Goods imported for the production of goods to be exported abroad or into non-tariff zones for which import duty has been paid are entitled to import duty refund in proportion to actually exported products and are free from export duty, for exports which are determined to be processed wholly from imported materials, specifically as follows:

a/ Exports made wholly from imported materials are exempt from export duty. When exports are made from both imported and domestic materials, export duty must be paid for their constituent domestic materials according to export duty tax rate for these  exports;

b/ Materials and supplies eligible for import duty refund, including:

b.1/ Imported materials and supplies (including also parts for assembly, semi-finished products and packaging materials) physically constituting exports;

b.2/ Materials and supplies directly used in export production which are not turned into or do not physically constitute these products, such as paper, chalk, drawing pen, marker, clothes pin, printing ink, adhesive brush, lithographic frame, crepe, polish, etc;

b.3/ Finished products imported by enterprises for fitting on export products (contained in the same package with export products made from imported materials and supplies or from domestically purchased materials and supplies) to form complete goods for export;

b.4/ Details and spare parts imported for use as warranty items for export products;

b.5/ Specimen goods imported for export production which are re-exported to foreign customers upon completion of contracts.

c/ Cases eligible for tax refund consideration include:

c.1/ Enterprises importing materials and supplies for export production; or organizations hiring processing at home (including hired processing in non-tariff zones) or overseas, or enterprises associating with others in export production and receiving products for subsequent export;

c.2/ Enterprises importing materials and supplies for the production of goods for domestic sale but later finding export outlets, using these materials and supplies for export production, and having actually exported products (within 2 years from the date of registration of declarations for imported materials and supplies to the date of registration of export declarations for the last product using materials and supplies indicated in import declarations for which tax refund is requested);

c.3/ Enterprises importing materials and supplies (except finished products) for the performance of processing contracts (not supplied by foreign customers but imported by processing enterprises themselves for the performance of processing contracts signed with foreign customers), when actually exporting products, may be considered for tax refund as for materials and supplies imported for export production;

c.4/ Enterprises importing materials and supplies to make products which are used for the processing of exports under processing contracts with foreign parties;

c.5/ Enterprises importing materials and supplies to make (finished or semi-finished) products for sale to other enterprises for direct production or processing of exports may, after the latter’s exportation, be refunded import duty amounts in proportion to quantities of imported materials and supplies used by other enterprises for the production of actually exported products, if they fully satisfy the following conditions:

c.5.1/ Selling and purchasing enterprises pay value-added tax by the credit method; enterprises have made business registration and tax identification numbers; and there are invoices for the sale and purchase of goods between the two enterprises;

c.5.2/ Via-bank payment is made for exports under regulations of the State Bank of Vietnam;

c.5.3/ Maximum period from the date of import of materials and supplies (the date of registration of customs declaration of imports) to the date of actual export of products (the date of registration of customs declaration of exports) is one year (three hundred and sixty-five days).

After 365 days, tax refunding customs offices shall not collect tax but examine thoroughly and report to the General Department of Customs for reporting to the Minister of Finance for consideration and handling on a case-by-case basis.

c.6/ Enterprises importing materials and supplies to make (finished or semi-finished) products for sale to other enterprises for direct export in assemblies may be considered for tax refund in proportion to the ratio of exported products (assemblies), if the conditions specified at Point c.5 of this Clause and the following conditions are fully satisfied:

c.6.1/ Products made from materials and supplies imported by enterprises constitute a detail or part of an assembly for export;

c.6.2/ Enterprises purchase products for fitting with details or parts produced by themselves to make up export assemblies.

c.7/ Enterprises importing materials and supplies to make (finished or semi-finished) products for sale to other enterprises for direct export may, after the latter’s actual exportation, be refunded import duty amounts in proportion to quantities of actually exported products if they full satisfy the condition specified at Point c.5 of this Clause;

c.8/ Enterprises importing materials and supplies to make products for sale to foreign traders but delivering these goods to other enterprises in Vietnam designated by foreign traders may be refunded import duty for importing materials and supplies for export production.

c.8.1/ Conditions for tax refund for imported materials and supplies:

c.8.1.1/ On-spot imports are further used for export production or processing under processing contracts with foreign parties (customs offices will continue tax administration of on-spot importers);

c.8.1.2/ An on-spot export or import declaration satisfies the following conditions:

The customs declaration is fully filled in with certifications, signatures and seals of 4 parties, namely the exporter, importer and customs offices carrying out export procedures and import procedures.

The form of declaration upon registration of on-spot imports is that for export production or processing for on-spot importers that continue production or processing for export.

c.8.2/ When a customs office has collected import duty upon an enterprise’s import of materials and supplies into Vietnam and further collects import duty from on-spot importers upon on-spot importation and exportation, the enterprise importing materials and supplies for export production may be considered for refund of the import duty after the on-spot importer has paid import duty for on-spot imported products (excluding the condition specified at Point c.8.1.1 of this Clause).

c.9/ Materials and supplies imported for export production specified at Points c.1 thru c.7 of this Clause, which have been exported but not yet actually sold to foreign customers and are still stored in overseas warehouses of enterprises or consigned to overseas bonded warehouses or kept at overseas transshipment ports.

c.10/ Materials and supplies imported for export production specified at Points c.1 thru c.7 of this Clause, which are not exported abroad but into non-tariff zones (except export processing enterprises, export-processing zones and bonded warehouses) and are determined by inspecting and supervising customs offices as having been actually exported abroad or used in non-tariff zones, may be refunded import duty amounts in proportion to quantities of goods actually used in non-tariff zones or exported abroad.

d/ Norms of imported materials and supplies eligible for consideration for import duty refund or non-collection are norms of those actually used for the production of actually exported products, including scraps and discarded products within the consumption norm recovered in the production of exports from imported materials and supplies.

d.1/ Procedures for notification of norms of materials and supplies imported for export production and registration of exports comply with Article 33 of this Circular.

d.2/ In case two or more kinds of products are turned out from the same imported materials or supplies (for example, from the processing of imported shell peanuts, class-1 and class-2 peanuts are obtained) but only one kind of product is exported, enterprises shall declare and pay taxes (if any) to customs offices for quantities of materials and supplies imported for the production of non-exported products.

To-be-refunded import duty amount is determined by the allocation method using the following formula:

In which:

- Value of exported products is the actually exported quantity of products multiplied (x) by the taxable value of exports;

- Total value of obtained products is the total value of exported products and sales of products (including also recovered scraps and discarded products outside norms and exclusive of output value-added tax) for domestic sale.

In case an enterprise imports a type of materials or supplies for production but obtains two or more different kinds of products (for example, import of wheat for the production of wheat flour, bran and husk), of which a kind is used for export production while the other is for domestic sale (for example, wheat bran and husk obtained from this process are domestically sold while wheat flour is further used for the production of instant noodles for export), then:

+ Upon calculation of the value of exported products and total value of obtained products, the enterprise may exclude the portion of domestically purchased auxiliary materials (for example, instant noodle for export has other ingredients made from domestic auxiliary materials such as flavors, spices and packaging materials);

+ To exclude the portion of auxiliary materials in export products, the enterprise shall elaborate its own norm of the auxiliary material portion in an export product and register it with the customs office that carried out import procedures, and takes responsibility for the accuracy and reliability of the registered norm. When having a doubt about this norm, the agency considering tax refund may invite expert assessment by a specialized management agency or coordinate with the local tax office (which grants the tax identification number to the enterprise) in conducting an inspection at the enterprise to re-determine the norm for use as a basis for consideration of tax refund for the enterprise.

d.3/ Domestically sold scraps and discarded products may be handled as follows:

d.3.1/ The portion of scraps and discarded products within the norm recovered in the production of exports from imported materials and supplies (for example peanut shells in the processing of shell peanuts into peanuts) is exempt from import duty. Taxpayers that domestically sell scraps and discarded products of commercial value are also exempt from import duty but shall declare and pay other taxes such as value-added tax and enterprise income tax under regulations;

d.3.2/ The portion of scraps and discarded products not included in the norm is subject to import duty. The tax declaration and payment comply with Clause 8, Article 11 of this Circular.

e/ Materials and supplies imported for the production of goods which are actually exported within the tax payment time limit are not subject to import duty for the quantity of materials and supplies used for the production of the actually exported products.

6. Goods temporarily imported for re-export; goods temporarily exported for re-import or goods imported under foreign parties’ entrustment and subsequently re-exported for which import or export duty has been paid, including also imports re-exported into non-tariff zones (for use in these zones or for export abroad, except re-export into special trade economic zones, trade industrial zones and other economic sectors, which complies with the Ministry of Finance’s separate guidance) may be considered for import or export duty refund and exemption from import or export duty upon their re-import or re-export (except the case entitled to tax exemption under Clause 1, Article 101 of this Circular).

Goods temporarily imported for re-export or temporarily exported for re-import which are actually re-exported or re-imported within the tax payment time limit are not subject to import or export duty in proportion to actually re-exported or re-imported quantities of goods.

7. Exported goods which have to be subsequently imported back into Vietnam may be considered for refund of paid export duty amounts and non-payment of import duty.

a/ Conditions for being considered for refund of paid export duty amounts and non-payment of import duty:

a.1/ Goods are actually imported back into Vietnam within 365 days after the date of registering export declarations;

After 365 days, tax refunding customs offices shall not collect tax but examine thoroughly and report to the General Department of Customs for reporting to the Minister of Finance for consideration and handling on a case-by-case basis.

a.2/ Goods have not yet gone through production, processing, repair or use abroad;

b/ For exports being processed by Vietnamese enterprises for foreign parties for which import duty on materials and supplies has been exempted and which have to be imported back into Vietnam for repair or reprocessing and subsequent export back to foreign parties, customs offices which manage and settle processing contracts shall continue their monitoring and management until reprocessed goods are fully exported.

If reprocessed goods are not exported, they may be handled as follows:

b.1/ In case these goods are domestically sold, tax declaration and payment must be made as for processed products exported or imported on spot;

b.2/ In case these goods must be destroyed, are allowed to be destroyed in Vietnam and have been destroyed under customs supervision, they are exempt from tax like destroyed scraps and discarded processed products.

c/ Exports produced from imported materials and supplies; goods temporarily imported for re-export (eligible for tax refund upon exportation) which have to be imported back into Vietnam but have not been reprocessed or re-exported may be handled as follows:

c.1/ Enterprises will not be considered for tax refund (or for tax non-collection if they have not yet paid tax) for portions of materials imported for export production or re-exported goods which have to be imported back into Vietnam;

c.2/ In case customs offices have refunded tax or issued decisions on tax non-collection for portions of materials imported for export production or re-exported goods which have to be imported back into Vietnam, taxpayers shall return those refunded tax amounts or pay tax.

d/ In case the time limit for export duty payment for exports which have to be imported back into Vietnam has not yet expired, export duty payment is not required for quantities of goods actually imported back into Vietnam.

8. Imports which have to be re-exported for return to foreign goods owners or to third countries or into non-tariff zones (for use in these zones or export abroad, except export into special trade economic zones, trade industrial zones and other economic sectors, which complies with the Ministry of Finance’s separate guidance) may be considered for refund of import duty amounts already paid in proportion to actually re-exported quantities of goods and for which export duty payment is not required.

a/ Conditions for being considered for refund of paid import duty amounts and non-payment of export duty:

a.1/ Goods are re-exported abroad or into non-tariff zones within 365 days from the date of actual importation;

After 365 days, tax refunding customs offices shall not collect tax but examine thoroughly and report to the General Department of Customs for reporting to the Minister of Finance for consideration and handling on a case-by-case basis.

a.2/ Goods have not yet gone through production, processing, repair or use in Vietnam;

a.3/ In case imports do not match those indicated in contracts, there must be written notices of goods assessment by competent assessment agencies or organizations. For quantities of goods sent by foreign parties in substitution for those already exported back to countries of origin, enterprises shall make import declaration and payment under regulations;

a.4/ Goods exported into non-tariff zones (except export into export-processing zones, export-processing enterprises, bonded warehouses; special trade economic zones, trade industrial zones and other economic sectors, which complies with the Ministry of Finance’s separate guidance) which are determined by customs offices conducting goods inspection and supervision as having been actually used in non-tariff zones or further exported abroad.

b/ If the import duty payment time limit for imports subject to re-export has not expired, import duty  payment is not required for actually re-exported quantities of goods.

9. Machinery, equipment, tools and means of transport (except hired ones) temporarily imported for re-export by licensed organizations and individuals for implementation of investment projects, construction and installation of works or production for which import duty has been paid are entitled to import duty refund when they are re-exported out of Vietnam or into non-tariff zones (for use in these zones or further export abroad).

To-be-refunded import duty amounts are determined based on the residual value of these machinery, equipment, tools and means of transport upon their re-exportation calculated according to the duration of their use and storage in Vietnam (from the date of registering temporary import declarations to the date of registering re-export declarations). In case these goods can no longer be used, tax will not be refunded, specifically as follows:

a/ For brand-new imports:

b/ For used imports:

In case the duration of temporary import expires but importers of machinery, equipment, tools and means of transport fail to re-export them and are permitted by the Ministry of Industry and Trade (or another competent state agency) to transfer them to other entities in Vietnam for further management and use, the transferred goods are not regarded as exports and are ineligible for import duty refund. Recipients or buyers of these goods are not obliged to pay import duty. When these goods are actually re-exported out of Vietnam, initial importers will be refunded import duty under this Clause.

10. For exports or imports sent by overseas organizations or individuals to organizations or individuals in Vietnam through postal services or international express delivery services and vice versa, service providers having paid tax therefor but failing to deliver them to designated recipients and obliged to re-export or re-import or having these goods confiscated and destroyed under law may have paid tax amounts refunded under Joint Circular No. 01/2004/TTLT-BBCVT-BTC of May 25, 2004, of the Ministry of Post and Telematics and the Ministry of Finance, guiding responsibilities for and coordination in customs inspection and supervision of mails, postal parcels and items for export or import sent through postal services or mail delivery services.

11. For goods being exhibits in violations of customs regulations committed by organizations and individuals, currently under customs supervision or management and confiscated under decisions of competent state agencies, paid export or import duty amounts will be refunded.

12. Exports and imports for which duty has been paid but are later eligible for tax exemption or refund under decisions of competent state agencies are entitled to tax refund.

13. For exports and imports still under customs supervision or management, if their customs declarations have been registered but they are detected by customs offices through inspection to be involved in violations and have been forcibly destroyed, customs offices shall issue decisions on exemption from export or import duty (if any). The sanctioning of acts of exporting or importing goods in contravention of regulations and forcible destruction of these goods comply with current law. Customs offices at which customs declarations of exports or imports are registered shall keep dossiers of destroyed goods and coordinate with functional agencies in supervising the destruction under current law.

14. For cases eligible for export or import duty refund under this Article in which to be-refunded tax amounts are less than VND 50,000 upon each time of completion of tax refund procedures for each tax refund dossier, customs offices will not refund these tax amounts.

Article 113.Tax refund dossiers for imports allowed for re-export for which import duty has been paid but which are still kept in warehouses or storing yards at border gates and currently under customs supervision

1. A written request for refund of the paid tax amount, clearly indicating type of goods, tax amount, tax payment receipt (number and date), reason for tax refund, and the customs declaration. In case there are multiple types of goods in different customs declarations, a list of customs declarations related to the tax refund request must be made: to submit 1 original.

2. The customs declaration of taxed imports: to submit 1 original.

3. The customs declaration of exports cleared from customs procedures with the customs office’s certification of actual exportation and certification that exports have been indicated in the import customs declaration and are still kept in warehouses or storing yards at a border gate and under customs supervision: to submit 1 original; papers proving the actual export under Article 30 of this Circular: to submit 1 copy.

4. A list of documents included in the tax refund dossier.

Article 114.Tax refund dossiers for exports or imports for which export or import duty has been paid but which are not exported or imported

1. The papers specified in Clauses 1 and 4, Article 113 of this Circular.

2. The customs declaration of exports with the customs office’s certification that goods are actually not exported, for cases of non-exportation: to submit 1 original.

3. The customs declaration of imports with the customs office’s certification that goods are actually not imported, for cases of non-importation: to submit 1 original.

Article 115.Tax refund dossiers for goods for which export duty or duty has been paid but which have been actually exported or imported in smaller quantities

1. The papers specified in Clauses 1 and 4, Article 113 of this Circular.

2. The customs declaration of exports cleared from customs procedures with goods customs inspection results clearly indicating actually exported quantities: to submit 1 original; other papers proving the actual exportation under Article 26 of this Circular: to submit 1 copy.

3. The customs declaration of imports cleared from customs procedures with goods customs inspection results clearly indicating actually imported quantities and enclosed with the customs office’s certification of actual importation: to submit 1 original.

4. The commercial invoice under the goods trading contract: to submit 1 copy.

5. Other papers proving that goods have been actually imported or exported in smaller quantities.

Article 116.Tax refund dossiers for goods imported for delivery or sale to foreign parties by their agents in Vietnam; goods imported for sale to vehicles of foreign firms operating on international routes through Vietnamese ports and to Vietnamese vehicles operating on international routes under the Government’s regulations

1. For general cases:

a/ The papers guided in Clauses 1 and 4, Article 113 of this Circular;

b/ The Ministry of Industry and Trade’s written permission for import (for commodities for which the Ministry of Industry and Trade’s import permits are required): to produce 1 original for comparison;

c/ The customs declaration of imports already cleared from customs procedures: to submit 1 original;

d/ The sale invoice: to submit 1 copy;

e/ The customs declaration of exports already cleared from customs procedures (applied to the case in which the export procedure clearance place is different from the import procedure clearance place): to submit 1 original; other papers proving that the goods have been actually exported under Article 30 of this Circular: to submit 1 copy each;

g/ The goods delivery or sale agency contract and goods supply contract or agreement: to submit 1 copy each;

h/ The payment document for exports: to submit 1 copy and produce the original for comparison. For goods lots for which installment payment is made, to additionally submit 1 original of the list of payment documents.

2. For imports being drinks catered on international flights:

a/ The papers guided at Points a, b and c, Clause 1 of this Article;

b/ The slip of drink delivery and receipt for an international flight, certified by the airport border-gate customs office: to submit 1 copy.

3. For goods imported by principal enterprises (e.g., petrol and oil) and allowed to be sold to seagoing ship chandlers for subsequent sale to foreign seagoing ships and for which import duty has been paid, import duty will be refunded after these goods are sold to foreign seagoing ships:

a/ The papers guided in Clause 1 of this Article;

b/ The contract and invoice on the sale of goods to a seagoing ship chandler: to submit 1 copy each;

c/ The seagoing ship chandler’s certification of the quantity and value of goods purchased from the principal importer and actually supplied for foreign seagoing ships, enclosed with a list of payment documents of foreign shipping firms: to submit 1 original. The chandler shall take responsibility before law for its certification.

Article 117.Tax refund dossiers for goods imported for production of goods for export abroad or into non-tariff zones, which have been actually used in these zones or exported abroad and for which import duty has been paid

1. In case enterprises import materials and supplies for export production or hire processing at home (including processing in non-tariff zones) or abroad; or enterprises associate with one another in producing exports and receiving products for export:

a/ A general dossier comprises:

a.1/ A written request for liquidation, import duty refund or exemption for materials and supplies imported for export production, indicating the quantity and value of imported materials and supplies already used for export production; paid import duty amount; tax payment receipt (number and date); quantity of exports; and import duty amount requested for refund or exemption. In case there are multiple types of goods in different customs declarations, a list of customs declarations related to the duty refund request must be made: to submit 1 original;

a.2/ The customs declaration of imported materials and supplies already cleared from customs procedures: to submit 1 original (e-customs declaration will not be applied);

a.3/ The customs declaration of exports already cleared from customs procedures: to submit 1 original; export contract: to submit 1 copy and produce the original for comparison (applied to the case in which the export procedure clearance place is different from the materials and supplies import procedure clearance place); and other papers proving that the goods have been actually exported under Article 30 of this Circular: to submit 1 copy;

a.4/ The import contract; or import or export entrustment contract in case of import or export entrustment (the copy filed at the customs office will be used; the taxpayer is not required to submit any): 1 copy;

a.5/ A payment receipt for materials and supplies for export production (for the case eligible for the tax payment time limit of 275 days), the  payment document for exports: to submit 1 copy and produce the original for comparison. For a goods lot for which installment payment is made, to additionally submit 1 original of a list of via-bank payment documents;

a.6/ The contract on associated export production, in case of associated export production: to submit 1 copy;

a.7/ The notice of norms: to submit 1 original;

a.8/ A list of declarations of exports to be liquidated (made according to form No. 56/HSTK-SXXX, Appendix III to this Circular): to submit 1 original;

a.9/ The finalization report on the use of imported materials and supplies (made according to form No. 57/HSHT-KTT/SXXX, Appendix III to this Circular): to submit 1 original;

a.10/ The report on taxation of imported materials and supplies (made according to form No. 58/HSHT-KTT/SXXX, Appendix III to this Circular): to submit 1 original;

a.11/ A list of documents included in the tax refund dossier.

b/ In addition to the papers specified at Point a of this Clause, a dossier for goods imported for export production which are not used directly in the production but exported into non-tariff zones or exported abroad for processing for subsequent receipt of processed products for further production and/or export must comprise:

b.1/ The customs declaration of exports to be used as materials and supplies for processing, already cleared from customs procedures: to submit 1 original; other papers proving that the goods have been actually exported under Article 30 of this Circular: to submit 1 copy each;

b.2/ The customs declaration of imports from a non-tariff zone or a foreign country, already cleared from customs procedures: to submit 1 original;

b.3/ The processing contract with a non-tariff zone enterprise or a foreign party: to submit 1 copy.

2. In case an enterprise imports materials and supplies for the production of goods for domestic sale but later finds an export outlet and puts these materials and supplies in export production, then actually exports its products abroad within 2 years from the date of registration of the customs declaration of imported materials and supplies:

A tax refund or exemption dossier is similar to that guided in Clause 1 of this Article.

3. For materials and supplies (except finished products) imported for the performance of processing contracts by processing enterprises themselves and not supplied by foreign processees, a dossier comprises:

a/ A written request for liquidation, import duty refund or exemption for materials and supplies imported for export processing, indicating items, quantities and values of imported materials and supplies; paid import duty amount; tax payment receipt (number, date); quantity of exported products; import duty amount requested for refund or exemption. In case there are multiple types of goods in different customs declarations, a list of customs declarations related to the duty refund request must be made: to submit 1 original;

b/ The customs declaration of processed exports already cleared from customs procedures: to submit 1 original; other papers proving that the goods have been actually exported under Article 26 of this Circular: to submit 1 copy each;

c/ The processing contract signed with the foreign processee, indicating the list and quantities of materials and supplies supplied by the processing enterprise: to submit 1 copy;

d/ The papers guided at Points a.2, a.4, a.5, a.7, a.8, a.9, a.10, and a.11, Clause 1 of this Article.

4. In case enterprises import materials and supplies to make products which are used for export processing under processing contracts with foreign parties:

A dossier is the same as that mentioned in Clause 1 of this Article, specifically:

a/ The export contract is replaced with the processing contract signed with the foreign processee. The contract on purchase of products used for processing and the processing contract with the foreign processee may be consolidated into one (1 copy);

b/ The table of norms of imported materials and supplies for the production of products to be used in processing and consumption norms of materials for export production under the signed processing contract: to submit 1 original;

c/ The declaration of actual quantities of products produced by the enterprise and used for processing: to submit 1 original.

5. In case enterprises import materials and supplies to make products to be sold to other enterprises for direct production or processing of exports which have been actually exported, a dossier comprises:

a/ A written request for liquidation, import duty refund or exemption, indicating quantities and values of imported materials and supplies used in the production of commodities to be sold to other enterprises for direct production or processing of exports; quantities of sold commodities; quantities of exported products; paid import duty amount; tax payment receipt (date, number); and import duty amount requested for refund or exemption. In case there are multiple types of goods in different customs declarations, a list of customs declarations related to the duty refund request must be made: to submit 1 original;

b/ The customs declaration of exports already cleared from customs procedures: to submit 1 original; export contract: to submit 1 copy and produce the original for comparison (applied to the case in which exports procedure clearance place is different from the materials and supplies import procedure clearance place); and other papers proving that the goods have been actually exported under Article 30 of this Circular: to submit 1 copy each;

In case exports stipulated in this Clause are made from different materials and supplies and import procedures are carried out at different customs offices, in the dossier request for tax refund or exemption, the enterprise may use a certified true copy of export declaration provided by exporters. The procedures for making certified copies of export declarations for tax refund or exemption will be carried out under guidance of the General Department of Customs.

c/ The sale invoice between two enterprises: to submit 1 copy; the list of sale invoices: to submit 1 original;

d/ The economic contract on goods trading between the importer and export producer or processor, indicating goods used for export production or processing; payment document for purchased goods: to submit 1 copy;

e/ The processing contract or export contract between the export producer or processor and the foreign processee: to submit 1 copy;

g/ The exporter’s declaration of the actual quantity and norms of products purchased for direct production of an export product unit;

h/ The import contract signed between the on-spot importer and the foreign trader;

i/ The papers guided at Points a.2, a.4, a.5, a.7, a.8, a.9, a.10, and a.11, Clause 1 of this Article.

6. In case enterprises import materials and supplies to make products to be sold to other enterprises for direct export and the purchasing enterprises have exported these products abroad, a dossier comprises:

a/ A written request for import duty refund or exemption, indicating quantities and values of imported materials and supplies; paid import duty amount; tax payment receipt (number, date), quantity of products sold to the exporter; quantity of exported products; and import duty amount requested for refund or exemption. In case there are multiple types of goods in different customs declarations, a list of customs declarations related to the duty refund request must be made: to submit 1 original;

b/ The trading contract; seller’s invoice for the sale of products to the exporter: to submit 1 copy;

c/ The papers guided at Points a.2, a.3, a.4, a.5, a.7, a.8, a.9, a.10, and a.11, Clause 1 of this Article.

7. In case enterprises import materials and supplies to make goods to be sold to foreign traders but these goods are delivered to other Vietnam-based enterprises as designated by foreign traders for use as materials for further production or processing of exports, a dossier comprises:

a/ A written request for liquidation, import duty refund or exemption, indicating quantities and values of imported materials and supplies used to make goods to be sold to foreign customers, which match types and quantities of export items indicated in customs declarations of a list of exports, and containing the following details: number of customs declarations of imports; items, quantities and values of imported materials and supplies; quantity of exported products; paid import duty amount; tax payment receipt (number, date) and import duty amount requested for refund or exemption. In case there are multiple types of goods in different customs declarations, a list of customs declarations related to the duty refund request must be made: to submit 1 original;

b/ The export invoice made by the exporter (the original to be handed to the customer): to submit 1 copy;

c/ The declaration of on-spot imports and exports already cleared from customs procedures: to submit 1 original;

This declaration is valid for liquidation, tax refund or exemption consideration only when the on-spot importer registers it in the form of export production or processing for further production or processing for export abroad.

d/ The goods trading contract designating the delivery of goods in Vietnam (for the exporter), or goods trading contract or processing contract designating the receipt of goods in Vietnam (for the importer): to submit 1 copy;

e/ The papers guided at Points a.2, a.4, a.5, a.7, a.8, a.9, a.10, and a.11, Clause 1 of this Article.

8. In case enterprises import materials and supplies to produce exports which have been exported abroad but are retained in these enterprises’ overseas warehouses or consigned to overseas bonded warehouses or transshipment ports, a dossier comprises:

a/ The papers specified in Clause 1 of this Article;

b/ The declaration of goods exported abroad and customs declaration of imports issued by the importing country’s customs office, showing the importer’s name being the overseas warehouse of the enterprise or the overseas bonded warehouse or transshipment entrepot port to which goods are consigned: 1 copy and the original for comparison;

c/ In addition to the above papers, a dossier must comprise:

c.1/ The contract on consignment of goods to an overseas bonded warehouse, for goods being consigned to overseas bonded warehouses: 1 copy and the original for comparison;

c.2/ The goods ex-warehousing bill or document showing the transport mode of transit: 1 copy and the original for comparison.

9. For goods being materials and supplies imported for the production of goods to be exported into non-tariff zones (except export-processing enterprises, export-processing zones and bonded warehouses, which shall submit a dossier guided in Clauses 1 thru 6 of this Article), in addition to the papers guided in Clauses 1 thru 6 of this Article, customs declarants or taxpayers shall submit the following papers:

a/ The declaration of products exported abroad by non-tariff zone enterprises which use products made of imported materials and supplies of enterprises requesting tax refund: 1 copy certified by the non-tariff zone enterprise;

b/ The table summing up product quantities actually used in non-tariff zones and quantities of goods actually further exported abroad by non-tariff zone enterprises as certified by the managing customs office, or results of the report on ex-warehoused, warehoused and in-stock goodsguided in Clause 10, Article 48, and Article 49 of this Circular: 1 copy;

c/ The production norms of products for export and use in non-tariff zones by non-tariff zone enterprises as certified by the customs office managing such enterprise.

Article 118.Duty refund dossiers for goods temporarily imported for re-export or goods temporarily exported for re-import and goods imported under entrustment by foreign parties and subsequently re-exported (except goods temporarily imported for re-export or temporarily exported for re-import for participation in fairs, exhibitions or for display; professional machinery, equipment and working tools temporarily imported for re-export or temporarily exported for re-import for conferences, seminars, scientific research, sport tournaments, cultural and art performances, medical examination and treatment, which are eligible for tax exemption)

1. A written request for tax refund or exemption, indicating the type of goods, tax amount, tax payment receipt (number, date), reason for liquidation, tax refund or tax exemption, and number of customs declarations. In case there are multiple types of goods in different customs declarations, a list of customs declarations related to the duty refund request must be made: to submit 1 original;

2. The goods trading contract signed with the seller and purchaser, or the entrusted import entrustment contract signed with the foreign party: to submit 1 copy;

3. The customs declaration of imports already cleared from customs procedures: to submit 1 original;

4. The customs declaration of exports already cleared from customs procedures: to submit 1 original (applied to the case in which the export procedure clearance place is different from the materials and supplies import procedure clearance place); other papers proving that the goods have been actually exported under Article 30 of this Circular: to submit 1 copy each;

5. For goods temporarily imported for re-export and goods imported under entrustment by foreign parties and subsequently re-exported into non-tariff zones (except export-processing enterprises, export-processing zones and bonded warehouses, which shall submit a dossier guided in Clauses 1 thru 4 of this Article), in addition to the above papers, the following are required:

a/ Results of the report on ex-warehoused, warehoused and in-stock goodsguided in Clause 10, Article 48, of this Circular: to submit 1 copy and produce the original for comparison;

b/ The declaration of products exported abroad by non-tariff zone enterprises: 1 certified true copy;

c/ The table summing up product quantities actually used in non-tariff zones and quantities of goods actually further exported abroad by non-tariff zone enterprises as certified by the managing customs office;

d/ The production norms of products for export and use in non-tariff zones by enterprises in these zones as certified by the customs office managing these enterprises (in case non-tariff zone enterprises further put products purchased from domestic enterprises into export production or use these products in non-tariff zones).

6. Other papers as guided at Point a.4, a.5 and a.11, Clause 1, Article 117 of this Circular.

Article 119.Tax refund dossiers for exported goods which must be imported back into Vietnam

1. A written request for tax refund and exemption consideration, indicating the tax amount, tax payment receipt (number, date), reason for the request, the customs declaration, and commitment that goods have not yet gone through overseas production, processing, repair or use. In case there are multiple types of goods in different customs declarations, customs declarations related to the duty refund request must be made: to submit 1 original;

2. A notice from or an agreement with the foreign customer on the receipt of goods, clearly stating the reason, quantity and type of returned goods, for goods returned by customers under Clause 4, Article 55 of this Circular: to submit 1 copy.

In case taxpayers discover that goods are faulty and import them back into Vietnam, they are not required to make this notice or agreement but shall clearly state the reason for such import.

3. The customs declaration of exports already cleared from customs procedures: to submit 1 copy; other papers proving that the goods have been actually exported under Article 30 of this Circular: to submit 1 copy; customs dossiers of exported goods: to produce the original for comparison;

4. The customs declaration of goods imported back into Vietnam, indicating the quantity of goods previously exported with the export dossier and results of customs inspection of goods, certifying that goods imported back into Vietnam are those previously exported by the enterprise (applied to the case in which the export procedure clearance place is different from the materials and supplies import procedure clearance place): to submit 1 original;

For previously exported goods which have been exempted from physical inspection, the customs office shall compare results of inspection of goods actually imported back into Vietnam with the dossier of the export lot for certifying that goods imported back into Vietnam are exactly those previously exported;

5. The papers guided at Points a.4, a.5 and a.11, Clause 1, Article 117 of this Circular (in case payment has not yet been made, payment documents for exports are not required);

6. The trading contract and other documents proving that imports are of export origin (applicable to cases in which the importer is not the exporter) and other papers proving the reason for tax refund or exemption.

Article 120.Tax refund dossiers for imported goods which must be re-exported back to their foreign goods owners or to a third country or into non-tariff zones

1. A written request for tax refund or exemption consideration, indicating the tax amount, tax payment receipt (number, date), reason, and customs declaration (specifying the quantity, type and value of to-be-re-exported goods). In case there are multiple types of goods in different customs declarations, a list of these declarations must be made: to submit 1 original.

2. A written agreement on the return of goods to the foreign party (for cases of return of goods to foreign parties) or export contract (for cases of export of goods to a third country or re-export of goods into non-tariff zones), indicating the reason, quantity, quality, type and origin of goods: to submit 1 copy.

3. The customs declaration of exports, indicating results of goods inspection, stating the quantity, quality and type of exports and the import dossier set under which these goods are exported: to submit 1 original; customs dossiers of the exports lot: to produce the original for comparison (applied to the case in which the export procedure clearance place is different from the materials and supplies import procedure clearance place), other papers proving that the goods have been actually exported under Article 30 of this Circular: to submit 1 copy;

For previously imported goods which have been exempted from physical inspection, the customs office shall compare results of inspection of actually exported goods with the dossier of the imports lot for certifying that re-exported goods are exactly those previously imported.

4. The customs declaration of imports and customs dossier of the imports lot: to submit 1 copy and produce the original for comparison.

5. The added-value invoice: to submit 1 copy.

6. The papers guided at Points a.4, a.5 and a.11, Clause 1, Article 117 of this Circular. If payment has not yet been made, payment documents for exports are not required.

7. For goods already imported into Vietnam which must be re-exported into non-tariff zones (except export-processing enterprises, export-processing zones and bonded warehouses, which shall submit a dossier guided in Clauses 1 thru 5 of this Article), in addition to the above papers, the following are required:

a/ Results of the report on ex-warehoused, warehoused and in-stock goodsguided in Clause 10, Article 48, of this Circular: to submit 1 copy and produce the original for comparison;

b/ The declaration of products exported abroad by non-tariff zone enterprises: 1 certified true copy;

c/ The table summing up product quantities actually used in non-tariff zones and quantities of goods actually further exported abroad by non-tariff zone enterprises  as certified by the managing customs office;

d/ The production norms of products for export and use in non-tariff zones by enterprises in these zones as certified by the customs office managing these enterprises (in case non-tariff zone enterprises further put products purchased from domestic enterprises into export production or use these products in non-tariff zones).

8. The trading contract and other documents evidencing that imports are of export origin (applicable to cases in which the importer is not the exporter) and other papers evidencing the reason for tax refund or exemption.

Article 121.Tax refund dossiers for organizations’ and individuals’ machinery, equipment, tools and vehicles permitted for temporary import for re-export for implementation of investment projects, construction and installation of works, or production

1. A written request for tax refund or exemption consideration, indicating the type of goods, tax amount, tax payment receipt (number, date), the duration of their use and storage in Vietnam and reason for tax refund, and the customs declaration. In case there are multiple types of goods in different customs declarations, a list of customs declarations related to the tax refund request must be made: to submit 1 original;

2. The contract (or written agreement) on the import or borrowing of machinery, equipment, tools and vehicles: to submit 1 copy;

3. The import permit, for imports for which such permit is required: to submit 1 copy;

4. The customs declaration of imports and exports with the results of the customs office’s physical inspection of the quantity and type of actually imported and re-exported goods: to submit 1 original; other papers evidencing that the goods have been actually exported under Article 30 of this Circular: to submit 1 copy each; customs dossiers of imports and exports: to produce the original for comparison;

5. The papers guided at Point a.4, a.11, Article 117 of this Circular;

6. In case import duty has been paid for organizations’ and individuals’ machinery, equipment, tools and vehicles permitted for temporary import for re-export for implementation of investment projects, construction and installation of works, or production, upon their re-export into non-tariff zones (except export-processing enterprises, export-processing zones and bonded warehouses, which shall submit a dossier guided in Clauses 1 thru 5 of this Article), in addition to the above papers, the following are required:

a/ Results of the report on ex-warehoused, warehoused and in-stock goodsguided in Clause 10, Article 48, of this Circular: to submit 1 copy and produce the original for comparison;

b/ The declaration of machinery, equipment, tools and vehicles exported abroad by non-tariff zone enterprises: 1 certified true copy by such enterprise;

c/ The table summing up quantities of machinery, equipment, tools and vehiclesactually used in non-tariff zones and quantities of goods actually further exported abroad by non-tariff zone enterprises as certified by the managing customs office.

Article 122. Tax refund dossiers for temporarily imported machinery, equipment, tools and vehicles which must be re-exported upon the expiration of the temporary import duration but have not yet been re-exported and are permitted by competent state agencies to be transferred to other entities in Vietnam for further management and use before actually exportation out of Vietnam

In addition to the papers guided in Article 121 of this Circular, the following are required:

1. A written permission of the Ministry of Industry and Trade (or a competent state agency) for transfer and receipt of temporarily imported machinery, equipment, tools and vehicles (in case such permission is required): to submit 1 original.

2. The purchase and sale contract or written record of handover of machinery, equipment, tools and vehicles between the two parties: to submit 1 copy.

3. The invoice cum ex-warehousing bill or sale invoice handed by the importer to the purchaser or transferee: to submit 1 copy.

Article 123.Tax refund dossiers for imports or exports sent by overseas organizations and individuals to Vietnam-based organizations and individuals via postal or international express delivery services and vice versa, for which service providers have paid tax but fail to deliver goods to recipients and have to re-export or re-import or have these goods confiscated and destroyed under law

1. A written request for consideration of refund of the paid tax amount, indicating the type of goods, tax amount, tax payment receipt (number, date), reason for tax refund, and the customs declaration. In case there are multiple types of goods in different customs declarations, a list of customs declarations related to the duty refund request must be made: to submit 1 original.

2. Dossier and documents related to imports or exports: to submit 1 copy each.

3. The customs declaration of imports or exports with the customs office’s certification of the quantity, type and value of confiscated and destroyed goods: to submit 1 original.

4. A list of documents included in the dossier of request for tax refund.

Article 124.Tax refund dossiers for imports or exports currently under customs supervision and management for which import duty or export duty and other taxes (if any) have been paid, and which have been confiscated and remitted into state funds for violations of customs regulations under decisions of competent state agencies

1. A written request for consideration of refund of the paid tax amount, indicating the type of goods, tax amount, tax payment receipt (number, date), reasons for tax refund request, and the customs declaration. In case there are multiple types of goods in different customs declarations, a list of customs declarations related to the tax refund request must be made: to submit 1 original.

2. The customs declaration of imports or exports: to submit 1 original.

3. The goods purchase and sale invoice: to submit 1 copy.

4. The written record of the violation: to submit 1 copy.

5. The competent state agency’s decision on confiscation of goods into the state fund: to submit 1 copy.

6. A list of documents included in the dossier of request for tax refund.

Article 125.Tax refund dossiers for imports or exports for which tax has been paid but which are later exempted from tax under decisions of competent state agencies

1. A competent state agency’s decision on tax exemption: to submit 1 copy.

2. The papers specified in Clauses 1, 2, 3 and 6, Article 124 of this Circular.

Article 126.Tax non-collection dossiers

1. For goods eligible for tax refund and for which the tax payment time limit has not expired and tax has not been paid, and which have been actually imported or exported, a tax non-collection dossier in this case is the same as a tax refund dossier.

2. For goods not liable to export duty, a dossier of request for tax non-collection consideration is similar to a dossier of request for import duty refund consideration.

For an export duty non-collection dossier for exports meeting all conditions for determining that they are wholly processed from imported materials, in addition to the papers specified in Article 117 of this Circular, a copy of the good purchase and sale contract is required (in case material and supply importers are other than goods exporters).

Article 127.Procedures for submission, receipt and processing of dossiers for tax refund or non-collection consideration

1. The submission and receipt of dossiers for tax refund or non-collection consideration comply with Article 59 of the Law on Tax Administration.

2. Time limit for submission of dossiers of request for tax refund or non-collection consideration (also applicable to cases eligible for the import duty or export duty rate of 0%):

a/ Time limit:

a.1/ Taxpayers that have fulfilled their tax payment obligations may determine the time for submission of tax refund dossiers;

a.2/ For taxpayers that have not yet fulfilled their tax payment obligations (also applicable to cases eligible for the import duty or export duty rate of 0%):

The time limit for submission of tax refund or non-collection dossiers is 60 days counting from the date of registration of the last export declaration, for goods requested for import duty refund or non-collection, or of the last import declaration, for goods requested for export duty refund or non-collection.

a.3/ The time limit for submission of tax refund or non-collection dossiers for materials and supplies imported for the production of exports which have been exported but not yet actually sold to foreign customers and are still stored in overseas warehouses of enterprises or in overseas bonded warehouses or kept at overseas transshipment ports specified in Clause 8, Article 117 of this Circular complies with Points a.1 and a.2 of this Clause. If, at the time of submission of tax refund or non-collection dossiers, enterprises fail to produce export contracts, they shall make a written commitment to producing them within 15 working days after entering into such contracts;

a.4/ If, at the time of submission of dossiers of request for tax refund or non-collection, enterprises have no payment documents, the time limit for submission of payment documents is 15 days from the date of expiration of the payment time limit indicated in the contracts or annexes thereto; and enterprises shall make a written commitment to producing payment documents under the above regulations, except the case specified at Point d.2, Clause 8 of this Article;

a.5/ Past the time limit specified at Point a.2 of this Clause, taxpayers that fail to submit tax non-collection dossiers shall be sanctioned for administrative violations in the customs sector.

b/ If unable to export goods within 275 days or more, for cases eligible for a tax payment time limit longer than 275 days from the date of registration of customs declarations for materials and supplies imported for the production of exports or from the date of expiration of the duration of temporary import for goods temporarily imported for re-export, taxpayers shall declare and pay taxes under regulations (also applicable to cases in which import duty is paid before customs clearance or goods release or completion of customs procedures for temporary import). For goods of which the use purpose has been changed to domestic sale within the tax payment time limit, tax declaration and payment comply with Clauses 8 and 9, Article 11 of this Circular.

c/ Materials and supplies imported for the production of exports and goods traded in the form of temporary import for re-export for which tax non-collection dossiers have been submitted will be eligible for the tax payment time limit and not be subject to measures of enforcing tax administrative decisions specified in Clause 3, Article 42 and Article 93 of the Law on Tax Administration which are amended and supplemented in Clauses 11 and 26, Article 1 of November 20, 2012 Law No. 21/2012/QH13, Amending and Supplementing a Number of Articles of the Law on Tax Administration, if the following conditions are fully satisfied:

c.1/ For materials and supplies imported for the production of exports:

c.1.1/ The whole quantities of imported materials and supplies have been put into the production of exports and products actually exported within 275 days or more (for cases eligible for extension of the tax payment time limit) and import duty for surplus materials and supplies (if any) has been fully paid within 275 days or more (for cases eligible for extension of the tax payment time limit).

c.1.2/ Taxpayers only owe tax amounts for the quantities of materials and supplies imported for the production of exports awaiting customs offices’ tax non-collection decisions.

c.2/ For goods traded in the form of temporarily import for re-export:

c.2.1/ The whole or part of goods has been re-exported and tax has been fully paid for the remainder within the tax payment time limit under regulations.

c.2.2/ Taxpayers only owe tax amounts for the re-exported goods awaiting customs offices’ tax non-collection decisions.

c.3/ Taxpayers have submitted sufficient dossiers to customs offices within the time limit specified at Point a, Clause 2 of this Article pending the issuance of tax non-collection decisions.

c.4/ Taxpayers make a written commitment to comply with final decisions of customs offices.

3. Customs branches carrying out tax non-collection procedures shall receive and process tax non-collection dossiers and sanction violations (if any) under law.

4. Dossiers for tax refund or tax non-collection consideration are classified into two types: dossiers subject to inspection before tax refund and dossiers eligible for tax refund before inspection.

5. Dossiers subject to inspection before tax refund are those submitted by taxpayers specified at Point b, Clause 1, Article 60 of the Law on Tax Administration which is amended and supplemented in Clause 18, Article 1 of November 20, 2012 Law No. 21/2012/QH13, Amending and Supplementing a Number of Articles of the Law on Tax Administration and Clause 2, Article 41 of Decree No. 83/2013/ND-CP, and fall into one of the following cases:

a/ Imports are subject to excise tax under the Law on Excise Tax;

b/ Import or export duty refund dossiers for exports which must be re-imported into Vietnam or imports which must be re-exported to their foreign owners or exported to a third country or re-exported into non-tariff zones, exports and imports for which customs procedures are carried out at places other than the initial places at which import or export procedures have been carried out;

c/ Import or export duty refund dossiers in case importers are other than exporters;

d/ Import duty refund dossiers for materials and supplies imported for the production of goods exported into non-tariff zones; tax refund dossiers for goods temporarily imported and re-exported into non-tariff zones;

dd/ Goods traded in the form of temporary import for re-export;

e/ Goods imported for delivery or sale to foreign parties by Vietnam-based agents; goods imported for sale to foreign companies’ vehicles or vessels on international routes through Vietnamese ports and Vietnamese vehicles or vessels on international routes under the Government’s regulations;

g/ Taxpayers submit certified true copies of customs declarations without producing the original declarations kept by customs declarants;

h/ Import or export duty refund dossiers are made by enterprises which are just established within 24 months prior to the date of submission of duty refund dossiers.

6. Dossiers eligible for tax refund before inspection are dossiers of taxpayers fully satisfying the following conditions:

a/ Taxpayers conduct import and export activities for at least 365 days by the date of registration of the customs declaration for the imports or exports and being certified by the customs office for this period as:

a.1/ Not being on the customs office’s list of taxpayers that have been handled for acts of smuggling or illegal cross-border transportation of goods;

a.2/ Not being on the customs office’s list of taxpayers that have been handled for acts of tax evasion or fraud;

a.3/ Having been handled twice at most for other customs-related violations (including acts of making false declarations leading to a decrease in payable tax amounts or an increase in exempted, reducible or refundable tax amounts) each subject to a fine level falling beyond the competence of heads of customs branches prescribed in the Law on Handling of Administrative Violations;

b/ At the time of customs declaration registration, taxpayers owe no overdue tax amounts, late payment interests and fines;

c/ Not being subject to inspection before tax refund specified in Clause 5 of this Article, or dossiers of taxpayers being priority enterprises.

7. For dossiers subject to inspection before tax refund or non-collection, customs offices shall follow the guidance of the General Department of Customs. If taxpayers are identified through inspection to be eligible for tax refund or non-collection and their declarations are accurate, customs offices shall issue tax refund or non-collection decisions based on taxpayers’ declarations within 40 days after receiving complete tax refund or non-collection dossiers.

8. For dossiers eligible for tax refund or non-collection before inspection, customs offices shall preliminarily examine dossiers and their consistency and legality, tax amounts requested for refund and tax amounts indicated in relevant declarations in the KT559 accounting system, and handle them as follows:

a/ If taxpayers are eligible for tax refund or non-collection and their declarations are accurate, customs offices shall issue tax refund or non-collection decisions based on the taxpayers’ declarations (made according to form No. 03/QDHT/2013 in Appendix II to this Circular) within 6 working days after receiving complete tax refund dossiers;

b/ If taxpayers are ineligible for tax refund or non-collection, customs offices shall, pursuant to relevant legal documents, notify these taxpayers of the reason(s) for their ineligibility within 6 working days after receiving tax refund dossiers;

c/ If having grounds to believe that taxpayers’ declarations are inaccurate or bases for tax refund are insufficient, within 6 working days after receiving tax refund dossiers customs offices shall notify taxpayers that their dossiers are now subject to inspection before tax refund or non-collection;

d/ Cases in which via-bank payment documents are required but taxpayers fail to produce these documents upon submitting tax refund dossiers must be handled as follows:

d.1/ If, at the time of submission of tax refund dossiers, enterprises have no via-bank payment documents because the payment time limit indicated in export contracts or annexes thereto is longer than 60 days from the date of registration of the last export declarations or longer than 60 days from the date of expiration of the tax payment time limit, the time limit for submission of tax refund or non-collection dossiers specified in Clause 2 of this Article must still be applied, and enterprises shall make a written commitment to produce payment documents within 15 working days from the date of expiration of the payment time limit indicated in export contracts or annexes thereto.

d.2/ If payment documents are not yet available because the payment is not due but enterprises request tax refund consideration before providing payment documents or if, after the payment deadline indicated in the contract, enterprises fail to produce via-bank payment documents, customs offices shall re-classify tax refund dossiers as those subject to inspection before tax refund according to this Article. If inspection results show that goods have been actually exported, customs offices shall refund or not collect tax under regulations; and enterprises are not required to produce payment documents after obtaining tax refund or exemption decisions.

e/ After issuing tax refund or non-collection decisions, customs offices shall handle overpaid tax amounts, late payment interests and fines under Article 130 of this Circular. When examining in detail tax refund or non-collection dossiers, if determining that the conditions for tax refund or non-collection are not fully satisfied, customs offices shall withdraw these decisions, assess tax and sanction violations under regulations.

If dossier inspection shows that temporarily imported goods are not re-exported or imported materials and supplies are not put into production, customs offices shall handle these cases under Clauses 8 and 9, Article 11 of this Circular.

9. Past the above time limit, if customs offices fail to issue tax refund or tax non-collection decisions at their fault, they shall, in addition to refunding paid tax amounts, pay interests on these amounts calculated from the date they are obliged to issue these decisions to the date they actually issue these decisions.

10. For goods eligible for tax refund specified in Article 112 of this Circular or goods used for processing contracts eligible for import duty exemption, at the time of carrying out procedures for tax refund (or tax non-collection), if taxpayers fail to produce the original customs declarations kept by customs declarants, they may send written requests to the customs offices where the customs procedures are carried out for permission to duplicate the original declarations kept at these customs offices and may use of the certified true copies of these original declarations as a basis for requesting tax refund or non-collection. The procedures for obtaining certified true copies are as follows:

a/ For goods for which the import and export procedures are carried at the same customs branch (except the cases eligible for tax refund specified in Clauses 5, 7 and 8 of Article 112, which must comply with Point b of this Clause):

a.1/ The enterprise shall make a statement on the loss of the declaration and request permission to duplicate the original kept at the customs office and use its certified true copy, enclosed with documents proving the loss of the declaration, for tax refund;

a.2/ Based on the enterprise’s written request, the customs branch where customs procedures are carried out shall:

a.2.1/ Within 5 working days after receiving the enterprise’s request:

- Check the dossier and documents proving the loss of the declaration;

- If having sufficient grounds for accepting the request, make a true copy of the original declaration kept at the customs office. For each original declaration, the customs office may make one certified true copy only once, and write a note on the original declaration in order to avoid multiple duplication, which reads “A trued copy is made of the declaration on the date …”;

- Send a written notice to Customs Departments nationwide of the enterprise’s statement on the loss of the declaration (the one kept by the customs declarant) and its request for duplication of the declaration for tax refund or non-collection. The original declaration kept by the customs declarant will no longer be valid for tax refund or non-collection nationwide; and Customs Departments nationwide will stop tax refund or non-collection for the lost original declaration (the one kept by the customs declarant).

a.2.2/ Based on the tax refund or non-collection dossier and the certified true copy of the original declaration kept at the customs office, the custom office which makes tax refund shall compare with data on the KT559 accounting system, the program on management of processed goods and other information sources (if any); conduct inspection before tax refund as guided in this Article, and refunds the tax to or does not collect the tax from the enterprise if inspection results show that goods have been actually exported and they belong to the declaration for which tax refund or non-collection has not yet been made;

a.2.3/ Handle the enterprise if it commits any acts of fraud or violation.

b/ For other cases:

b.1/ The enterprise shall make a statement on the loss of the declaration and request permission for duplication of the original declaration kept at the customs office and use its certified true copy, enclosed with documents proving the loss of the declaration, for tax refund;

b.2/ Based on the enterprise’s written request:

b.2.1/ The customs branch which receives the statement on the loss of the declaration shall send a written request to the Customs Departments to issue written certifications that no tax refund or non-collection has been made for the lost declaration, and not to make tax refund or non-collection for the lost original declaration.

Within 5 working days after receiving the taxpayer’s statement, the Customs Departments shall check and compare with the KT559 accounting system, programs on management of processed goods and goods produced for export…. If inspection results show that no tax refund or non-collection has been made to the taxpayer for the lost declaration, the Customs Departments shall issue written certifications/replies that no tax refund or non-collection has been made for the lost declaration to the customs office which receives the statement on the loss of the declaration, and take responsibility for their certifications; and concurrently shall not make tax refund or non-collection for the lost declaration;

b.2.2/ After fully receiving the Customs Departments’ certifications that no tax refund or non-collection has been made for the lost declaration, the customs office shall:

+ Check the dossier and documents proving the loss of the declaration;

+ If having sufficient grounds for accepting the request, make a true copy of the original declaration kept at the customs office. For each original declaration, the customs office may make one certified true copy only once, and write a note on the original declaration in order to avoid multiple duplication, which reads “A trued copy is made of the declaration on the date …”;

+ Send a written notice to Customs Departments nationwide of the enterprise’s statement on the loss of the declaration (the one kept by the customs declarant) and its request for duplication of the declaration for tax refund or non-collection nationwide.

b.2.3/ Based on the taxpayer’s request for use of the certified true copy of the declaration for tax refund or non-collection and on the tax refund or non-collection dossier and the certified true copy of the original declaration kept at the customs office, the custom office shall compare with data on the KT559 accounting system, programs on management of processing goods and goods produced for export and other information sources (if any); conduct inspection before tax refund as guided in this Article, and make tax refund or non-collection for the enterprise if inspection results show that goods have been actually exported and they belong to the declaration for which tax refund or non-collection has not yet been made;

b.2.4/ Handle the enterprise if it commits any acts of fraud or violation.

Article 128.Competence to decide on tax refund or non-collection

Heads of customs branches where customs declarations are registered may decide on tax refund, non-collection or deduction for taxpayers under Article 127 of this Circular.

Article 129.Writing of tax refund or non-collection in customs declarations

1. Based on tax refund decisions or tax non-collection decisions, customs offices at which taxpayers have refundable tax amounts shall liquidate refunded tax amounts and append a mark to customs declarations submitted by taxpayers, which reads “Tax refund (or non-collection) of  VND… under Decision No. ... dated... issued by ...” (the specimen mark is provided in form No. 14/MDHT/2013 provided in Appendix II to this Circular), and return original customs declarations to taxpayers.

2. In case a declaration is used for multiple tax refund or non-collection, the customs office shall:

a/ Make a list for monitoring tax refunds (or tax non-collection), and clearly write in the declaration that the list has been made. When making a tax refund (or tax non-collection), the customs office shall clearly write the sum of money refunded (or no collected) and append the tax refund (or tax non-collection) mark to the list;

c/ Append the tax refund (or tax non-collection) mark to the customs declaration kept at the enterprise when making the final tax refund (or tax non-collection);

d/ Make 1 copy of the customs declaration bearing the tax refund or non-collection mark for filing with the tax refund (or tax non-collection) dossier, and return the customs declaration to the taxpayer as in the case of single tax refund or tax non-collection.

Article 130.Handling of overpaid tax amounts, late payment interests and fines after the issuance of decisions on refund of overpaid tax amounts, late payment interests and fines because paid tax amounts are larger than payable tax amounts, late payment interests and fines

1. In case the source for refunding overpaid tax amounts, late payment interests and fines is the deposit account (previously temporary collection account), customs offices at which taxpayers have refundable tax amounts or overpaid tax amounts, late payment interests and fines shall check these amounts in the computer network for monitoring tax arrears, and handle them in the following order:

a/ If taxpayers owe no overdue tax amounts, late payment interests and fines, customs offices shall refund tax amounts, late payment interests and fines to taxpayers under regulations;

When clearing taxpayers’ overpaid tax amounts, late payment interests and fines against subsequent payable tax amounts, late payment interests and fines, customs offices shall append a mark to the original customs declarations (kept by customs declarants and at customs offices) eligible for tax clearing, which reads “Tax amounts in VND ... deducted under Decision No. ... dated ... issued by ..., on refund of overpaid tax amounts, late payment interests or fines, and Decision No. ... dated ... issued by ..., on deduction”; and concurrently append a mark indicating the deducted tax amounts, late payment interests and fines and numbers and dates of customs declarations involved in the clearing to the original tax refund decisions, customs declarations eligible for tax refund involving overpaid tax amounts, late payment interests and fines and tax payment receipts of customs declarations eligible for tax refund, for monitoring (the specimen mark is provided in form No. 14/MDHT/2013, Appendix II to this Circular);

b/ In case taxpayers still owe tax amounts, late payment interests and fines for goods shipments of the same type of import, customs offices shall clear refundable overpaid tax amounts, late payment interests and fines against those owed by taxpayers;

c/ In case taxpayers still owe overdue tax amounts, late payment interests and fines for goods shipments of different types of import to be remitted into the state budget, customs offices shall issue state budget or account remittance papers and pay these amounts on behalf of taxpayers;

d/ If, after the clearing mentioned above, there is a remainder of refundable overpaid tax amounts, late payment interests and fines, customs offices shall carry out procedures for refunding this remainder to taxpayers.

In case taxpayers make a written request for clearing of refundable tax amounts or remainder of overpaid tax amounts, late payment interests and fines after payment of all debts in the sequence of tax payments against tax amounts for subsequent imports and exports, customs offices at which taxpayers have refundable tax amounts or overpaid tax amounts, late payment interests and fines shall make the clearing under Point a of this Clause.

2. In case the source for refund of overpaid tax amounts, late payment interests and fines is the state budget:

a/ In case taxpayers no longer owe overdue tax amounts, late payment interests and fines and do not request the clearing of these amounts against subsequent payable tax amounts, customs offices shall send written tax refund requests enclosed with tax refund decisions to tax-refunding state treasury offices. In case customs offices have partially cleared amounts of the same tax or among different taxes in the same locality of budget revenue collection, these requests must indicate the remainder of tax amounts requested for refund under tax refund decisions. Based on customs offices’ tax refund decisions, state treasuries shall refund tax amounts to taxpayers.

Refunded tax amounts must be accounted as follows:

- For amounts not yet, state treasury offices shall cancel them according to the state budget index.

- For amounts already settled, state treasury offices  shall account them as budget expenditures and send 1 copy of the tax refund document (printed or electronic) to customs offices which have issued decisions on refund of tax amounts, late payment interests and fines, for monitoring and management.

b/ In case taxpayers still owe overdue tax amounts, late payment interests and fines for other goods shipments, if they request the clearing of refundable amounts against payable amounts, a state budget revenue refund-cum-clearing order must be made (according to form No. 05/DNHT attached to the Finance Ministry’s Circular No. 08/2013/TT-BTC of January 10, 2013, guiding the accounting applicable to the Treasury and Budget Management Information System (TABMIS), indicating amounts to be cleared, and send it to the tax-refunding customs office for handling. After checking and determining to-be-cleared amounts of the same tax or different taxes in the same locality of budget revenue collection, the customs office shall send a tax refund request enclosed with the decision on refund of tax amounts, late payment interests and fines and the budget revenue refund-cum-clearing order to the tax-refunding state treasure office or commercial bank for accounting them under regulations;

Upon clearing tax amounts, customs offices at which taxpayers have refundable tax amounts or overpaid tax amounts, late payment interests and fines shall check these amounts in the computer network for monitoring tax arrears, and handle them in the following order:

If taxpayers owe no overdue tax amounts, late payment interests and fines, customs offices shall refund tax amounts, late payment interests and fines to taxpayers under regulations;

When clearing taxpayers’ overpaid tax amounts, late payment interests and fines against subsequent payable tax amounts, late payment interests and fines, customs offices shall append a mark to the original customs declarations (kept by customs declarants and at customs offices) eligible for tax clearing, which reads “Tax amounts in VND ... deducted under Decision No. ... dated ... issued by ..., on refund of overpaid tax amounts, late payment interests or fines, and Decision No. ... dated ... issued by ..., on deduction”; and concurrently append a mark indicating the deducted tax amounts, late payment interests and fines and numbers and dates of customs declarations involved in the clearing to the original tax refund decisions, customs declarations eligible for tax refund or involving overpaid tax amounts, late payment interests and fines and tax payment receipts of customs declarations eligible for tax refund, for monitoring (the specimen mark complies with form No. 14/MDHT/2013, Appendix II to this Circular);

Refunded tax amounts must be accounted as follows:

b.1/ In case tax-refunding state treasury offices are concurrently tax-collecting ones, refunded amounts must be accounted under Point a of this Clause. Collected budget revenues must be accounted under customs offices’ collection orders and orders on payment of the remainder (if any) of overpaid tax amounts, late payment interests and fines to taxpayers;

b.2/ In case tax-refunding state treasury offices are other than tax-collecting ones, the former shall account refunded tax amounts under Clause 1 of this Article and transfer these amounts together with customs offices’ budget revenue collection orders to the latter for accounting state budget revenues strictly according to collection orders and orders on payment of the remainder (if any) of tax amounts, late payment interests and fines to taxpayers;

c/ After refunding tax, state treasury offices shall send one (1) copy of the tax refund document to customs offices which have issued decisions on refund of tax amounts, or overpaid tax amounts, late payment interests and fines, for monitoring and management.

3. If customs offices detect that taxpayers still owe other tax amounts but do not request clearing against payable amounts, the custom offices shall temporarily stop refunding, and request taxpayers to pay such amounts or to request the clearing of refundable tax amounts against payable tax amounts. Past the time limit notified by customs offices, if taxpayers fail to pay the payable tax amounts into the state budget (or fail to send to the customs offices a written request for the clearing of payable tax amounts, clearly indicating the tax amounts to be cleared), the customs offices shall make a budget revenue refund-cum-clearing order (according to form C1-05/NS attached to the Finance Ministry’s Circular No. 08/2013/TT-BTC) and send it to the tax-refunding state treasure office for clearing; and concurrently notify it to the taxpayers.

4. The handling of overpaid tax amounts, late payment interests and fines under this Article is not applicable to value-added tax amounts for imports wrongly paid or overpaid by taxpayers to customs offices (customs offices will not refund value-added tax).

In case taxpayers wrongly pay or overpay value-added tax amounts for imports to customs offices in a budgetary year as detected by taxpayers or customs offices, such amounts must be adjusted according to form No. C1-07 attached to the Finance Ministry’s Circular No. 08/2013/TT-BTC of January 10, 2013. At the same time, taxpayers shall submit the original receipts and customs offices shall certify, sign and stamp on the front page of these originals certifying the value-added tax amounts already adjusted to other taxes, for transfer to state treasury offices for adjustment. For other cases of wrong payment or overpayment of value-added tax amounts, customs offices shall certify these wrongly paid or overpaid amounts for tax offices to refund to taxpayers under regulations.

Section 7

LATE PAYMENT INTERESTS, INSTALLMENT PAYMENT OF TAX ARREARS, EXTENSION OF PAYMENT OF TAX AMOUNTS, LATE PAYMENT INTERESTS AND FINES; WRITE-OFF OF ARREARS OF TAX AMOUNTS, LATE PAYMENT INTERESTS AND FINES

Article 131.Late payment interests

1. Taxpayers shall pay late payment interests in the following cases:

a/ Paying tax amounts later than the prescribed or extended time limit, or the time limit stated in customs offices’ notices or decisions on sanctioning of violations of the tax law or competent agencies’ documents on tax-related handling;

b/ Not fully paying tax amounts due to false declaration of payable, exempted, reducible or refundable tax amounts;

c/ Being entitled to pay tax amounts in installments as prescribed in Article 132 of this Circular;

d/ When carrying out import and export procedures, declaring goods as non-taxable goods or goods eligible for duty exemption, preferential duty rates, special preferential duty rates or tariff-based duty rates, which are detected through inspection to be liable to tax or ineligible for tax exemption or tax incentives;

dd/ Use purposes of imports and exports are changed for domestic sale under Clauses 8 and 9, Article 11 of this Circular.

2. Agencies and organizations that collect late payment interests and transfer the collected amounts into the state budget shall pay late payment interests from the time of expiration of the time limit for such transfer to the date such amounts are transferred into the state budget.

3. Guarantors shall pay late payment interests if, upon the expiration of the guarantee time limit, taxpayers fail to fully pay tax amounts into the state budget.

4. Method of calculating rates of late payment interests:

a/ The per diem rate of late payment interest is 0.05% of the late-paid tax amount if the number of late payment days is 90 at most; or 0.07% of the late-paid tax amount if this number is over 90 in the cases specified in Clause 1 of this Article;

b/ If the number of late payment days is over 90 from the due date for tax payment but the payment date is prior to the effective date of the Law Amending and Supplementing a Number of Articles of the Law on Tax Administration, the per diem rate of late payment interest is 0.05% till June 30, 2013. From July 1, 2013 on, such rate is 0.07%;

c/ Taxpayers that are entitled to pay tax arrears in installments shall pay late payment interests at the per diem rate of 0.05% of the late-paid tax amounts during the period of installment payment;

The number of days of late payment of tax amounts is counted from the date following the last date of the tax payment time limit, the extended time limit for tax payment, the time limit stated in customs offices’ notices or sanctioning decisions or competent agencies’ documents on tax-related handling, to the date taxpayers, tax-collecting agencies or organizations or guarantors pay late payment interests into the state budget.

5. Taxpayers or tax-collecting agencies or organizations that can determine by themselves the late payment interests as prescribed in Clause 4 of this Article shall themselves declare and pay such interests into the state budget.

In case taxpayers, tax-collecting agencies or organizations or guarantors cannot determine or inaccurately determine the late payment interests by themselves, customs offices to which the taxpayers, tax-collecting agencies or organizations or guarantors pay tax amounts late shall determine the late payment interests and notify them to the taxpayers, tax-collecting agencies or organizations or guarantors for information.

6. After 30 days from the tax payment time limit expires, if taxpayers, tax-collecting agencies or organizations or guarantors fail to pay tax amounts and late payment interests, customs offices shall inform them of such tax amounts and late payment interests (according to Form No. 59/TB-TTN-TCN1/2013 and Form No. 60/TB-TTN-TCN2/2013 provided in Appendix III to this Circular).

7. Taxpayers are not required to pay the late payment interests calculated on the tax arrears during the period of tax payment extension.

Article 132.Installment payment of tax arrears

1. Taxpayers that fully satisfy the conditions specified in Clauses 1 and 2, Article 39 of the Government’s Decree No. 83/2013/ND-CP of July 22, 2013, may pay tax arrears in installments within 12 months, counting from the first date of the period of coercive tax payment. Taxpayers shall register and commit to pay tax arrears in installments as follows:

a/ For a tax arrear of between over VND 500 (five hundred) million and VND 1 (one) billion, the installment payment time limit is 3 months;

b/  For a tax arrear of between over VND 1 (one) billion and VND 2 (two) billion, the installment payment time limit is 6 months;

c/ For a tax arrear of over VND 2 (two) billion, the installment payment time limit is 12 months;

Taxpayers that fail to correctly pay tax amounts within the committed time limit (on a monthly basis) are not allowed to continue to pay tax arrears in installments. The guarantors shall, on behalf of the taxpayers, pay tax arrears according to Article 39 of Decree No. 83/2013/ND-CP.

2. Dossier:

a/ The taxpayer’s written request for installment payment of tax amounts sent to the competent customs office, clearly stating the reason for his/her/its incapability to fully pay the tax amounts in lump sum, enclosed with the written registration for installment payment of tax arrears: to submit 1 original;

b/ The customs declaration of the tax arrears requested for installment payment; and the customs office’s notice of the tax arrears (if any): to submit 1 copy;

c/ The credit institution’s letter of guarantee of the tax arrears to be paid in installments under Article 21 of this Circular: to submit 1 original;

3. Competence to settle installment payment of tax amounts:

a/ In case tax arrears requested for installment payment arise at a customs branch, the head of such customs branch shall settle taxpayers’ requests for installment payment of tax arrears;

b/ In case tax arrears requested for installment payment arise at different customs branches of the same Customs Department, the Director of such Customs Department shall settle taxpayers’ requests for installment payment of tax arrears;

c/ In case tax arrears requested for installment payment arise in different Customs Departments, the General Director of Customs shall settle taxpayers’ requests for installment payment of tax arrears.

4. Time limit for settlement:

a/ If dossiers are complete, within 5 working days, customs offices shall issue to taxpayers a written reply on the approval or disapproval of installment payment of tax arrears;

b/ If dossiers are incomplete, within 3 working days from the date of receiving the dossiers, customs offices shall notify such in writing to taxpayers for completing the dossiers.

Within 5 working days from the date of receiving the customs offices’ notices requesting dossier supplementation, if taxpayers fail to complete the dossiers, they will not be considered for installment payment of tax arrears under this Article.

Article 133.Extension of the payment of tax amounts, late payment interests and fines

1. Taxpayers may be considered for extension of the payment of tax amounts, late payment interests and fines for the cases specified in Clause 1, Article 31 of the Government’s Decree No. 83/2013/ND-CP of July 22, 2013.

2. A dossier for extension of the payment of tax amounts, late payment interests and fines complies with Clause 2, Article 51 of the Law on Tax Administration, comprising:

a/ A written request for extension of the payment of tax amounts, late payment interests and fines, clearly stating the reason for extension, tax arrears, late payment interests, fines and the time limit requested for extension; in case tax arrears, late payment interests and fines requested for payment extension are indicated in different customs declarations, these customs declarations must be listed with a commitment to make accurate declaration and supply a proper dossier of request for extension; a plan and commitment to pay tax amounts, late payment interests and fines requested for payment extension: to submit 1 original;

b/ The customs declaration of the tax amounts, late payment interests and fines requested for payment extension; the goods purchase and sale contract: to submit 1 copy (for cases falling within the competence of customs branch heads); the tax declaration dossier of the tax amounts, late payment interests and fines requested for payment extension: to submit 1 copy (for cases falling beyond the competence of customs branch heads); the report on the payable tax amounts, late payment interests and fines arising for different reasons: to submit 1 original;

c/ For the cases specified at Point a, Clause 1, Article 31 of Decree No. 83/2013/ND-CP, the following papers are additionally required:

c.1/ The competent state agency’s written record determining the level and value of damage; the commune-level People’s Committee’s written record certifying the case, made right after the occurrence of a natural disaster, fire or accident: to submit 1 original;

c.2/ The written record of the provincial-level Police Department or People’s Committee of the locality where arise reasons for payment extension, for cases of natural disasters, fires or accidents: to submit 1 original;

d/ For the cases specified at Point b, Clause 1, Article 31 of Decree No. 83/2013/ND-CP, the following papers are additionally required:

d.1/ The competent state agency’s decision on recovery of the production and business site, for enterprises’ old production sites not subject to relocation for/at their purposes/request: to submit 1 copy;

d.2/ The local administration’s written certification of an enterprise’s cessation of production and business activities due to relocation: to submit 1 original;

d.3/ The written certification by the local tax office directly managing the taxpayer, of the direct damage level caused by relocation; the damage value must be determined based on the relevant dossiers, documents and regulations, including: the residual value of dismantled houses, workshops, warehouses and equipment for which capital cannot be retrieved (the historical cost after subtracting deprecated expenses), expenses for dismantling equipment and workshops at the old production and business site, expenses for transportation and installation at the new production and business site (after subtracting recoverable expenses), and expenses for payment of wages to laborers due to job cessation (if any); professional agencies’ opinions are required for complicated cases related to other techno-economic disciplines: to submit 1 original;

dd/ For the cases specified at Point c, Clause 1, Article 31 of Decree No. 83/2013/ND-CP, the following papers are additionally required:

dd.1/ The competent agency’s written certification, for taxpayers engaged in the construction sector that have not received the investment capital amounts stated in the state budget estimates, on the tax amounts to be paid from the state budget but not yet paid: to submit 1 original;

dd.2/ The State Treasury’s written certification of the capital amounts already allocated from by the state budget: to submit 1 original;

e/ For the cases specified at Point d, Clause 1, Article 31 of Decree No. 83/2013/ND-CP:

e.1/ For materials and supplies imported for export production which satisfy the conditions specified in Clause 1, Article 20 of this Circular but have the production or material reserve cycle subject to tax payment extension for over 275 days: In the written request for tax payment extension, taxpayers shall clearly explain the reserve of materials and supplies, describe the production process and time suitable to the real reserve of materials and supplies: to submit 1 original; papers evidencing the necessity to extend the delivery time limit in the product export contract: to submit 1 copy;

e.2/ For other cases specified at Point d, Clause 1, Article 31 of Decree No. 83/2013/ND-CP, documents evidencing taxpayers’ incapability to pay tax amounts within the prescribed time limit for objective reasons are additionally required.

3. Tax amounts, late payment interests and fines eligible for payment extension comply with Clause 2, Article 31 of Decree No. 83/2013/ND-CP.

4. The time of extension of payment of tax amounts, late payment interests and fines complies with Clause 3, Article 31 of Decree No. 83/2013/ND-CP. Particularly for materials and supplies imported for export production with a production and materials and supplies reserve cycle longer than 275 days as prescribed at Point d, Clause 1, Article 31 of Decree No. 83/2013/ND-CP, the tax payment extension duration must not exceed the delivery time limit stated in the contracts on export of products by imported materials and supplies requested for tax payment extension, or must not exceed the production cycle, which does not exceed 1 year as prescribed at Point b, Clause 3, Article 31 of Decree No. 83/2013/ND-CP.

5. Procedures for extension:

a/ Taxpayers eligible for extension of the payment of tax amounts, late payment interests and fines under Points a, b, c and d (for materials and supplies imported for export production with a production or materials and supplies reserve cycle longer than 275 days), Clause 1, Article 31 of Decree No. 83/2013/ND-CP shall compile and send tax payment extension dossiers to the custom offices to which they owe the tax amounts, late payment interests and fines requested for payment extension;

b/ Taxpayers that meet with objective difficulties and have tax amounts, late payment interests and fines subject to payment extension under the Prime Minister’s decision at the proposal of the Minister of Finance shall compile and send tax payment extension dossiers to the General Department of Customs;

c/ Customs offices to which taxpayers owe tax arrears, late payment interests and fines shall receive, examine, verify and process tax payment extension dossiers under Article 52 of the Law on Tax Administration.

For materials and supplies imported for export production with a production and materials and supplies reserve cycle longer than 275 days, which are eligible for tax payment extension under Point d, Clause 1, Article 31, Decree No. 83/2013/ND-CP, the customs branches with which import customs declarations are registered shall receive, preliminarily examine and process dossiers as follows:

c.1/ If dossiers are incomplete and improper, the customs branches shall notify such in writing to taxpayers, clearly stating the reason. The time limit for handling this case is 3 working days from the date of receiving the dossiers;

c.2/ If dossiers are complete and proper, the customs branches shall report such to Customs Departments for consideration and approval of the extension of tax payment time limit to be longer than 275 days. The time limit for handling this case is 10 working days from the date of receiving the complete dossiers;

c.3/ When necessary to examine and determine the production and materials and supplies reserve cycle, Customs Departments shall conduct physical inspection. The inspection and tax payment extension must not exceed 30 working days from the date of receiving the complete dossiers. A record must be made for the inspection, clearly stating the cycle of production from materials and supplies requested for tax payment extension. The inspection results are handled as follows:

c.3.1/ In case of dissatisfaction of the conditions for extension of the tax payment time limit to be longer than 275 days, within 3 working days from the date of making a record on the inspection results, Customs Departments shall issue an official written reply to taxpayers;

c.3.2/ In case of satisfaction of such conditions, within 3 working days from the date of making a record on the inspection results, Customs Departments shall approve in writing the extension of the tax payment time limit to be longer than 275 days in conformity with the production and materials and supplies reserve cycle of taxpayers.

d/ The General Department of Customs shall receive dossiers of request for extension of the payment of tax amounts, late payment interests and fines in other cases of particular objective difficulties specified at Point d, Clause 1, Article 31 of Decree No. 83/2013/ND-CP, and report them to the Minister of Finance for submission to the Prime Minister for consideration and decision on a case-by-case basis.

6. Extension competence

a/ Heads of competent customs branches may extend the payment of tax amounts, late payment interests and fines in case taxpayers are unable to pay them within the prescribed time limit as specified at Points a, b and c, Clause 1, Article 31 of Decree No. 83/2007/ND-CP, provided that such tax amounts, late payment interests and fines arise at the same customs branch;

b/ Directors of Customs Departments may extend the payment of tax amounts, late payment interests and fines in case taxpayers are unable to pay them within the prescribed time limit as specified at Points a, b and c, Clause 1, Article 31 of Decree No. 83/2007/ND-CP, provided that such tax amounts, late payment interests and fines arise at different customs branches of the same Customs Department; and extend tax payment time limit for materials and supplies imported for export production with a production and materials and supplies reserve cycle longer than 275 days as prescribed at Point d, Clause 1, Article 31 of Decree No. 83/2013/ND-CP;

c/ The General Director of Customs may extend the payment of tax amounts, late payment interests and fines in case taxpayers are unable to pay them within the prescribed time limit as specified at Points a, b and c, Clause 1, Article 31 of Decree No. 83/2013/ND-CP, provided that such tax amounts, late payment interests and fines arise at different Customs Departments;

d/ The Prime Minister may decide in cases in which taxpayers have other particular objective difficulties specified at Point d, Clause 1, Article 31 of Decree No. 83/2013/ND-CP at the proposal of the Minister of Finance.

Article 134.Write-off of arrears of tax amounts, late payment interests and fines

1. Cases specified in Clauses 1, 2 and 3, Article 65 of the Law on Tax Administration, which was amended and supplemented under Clause 20, Article 1 of November 20, 2012 Law No. 21/2012/QH13 Amending and Supplementing a Number of Articles of the Law on Tax Administration, are eligible for write-off of arrears of tax amounts, late payment interests and fines.

2. Conditions for write-off of arrears of tax amounts, late payment interests and fines for the cases specified in Clause 3, Article 65 comply with Point c, Clause 1, Article 32 of Decree No. 83/2013/ND-CP.

3. A dossier of request for write-off of arrears of tax amounts, late payment interests and fines comprises:

a/ A written request for write-off of arrears of tax amounts, late payment interests and fines, made by the Customs Department to which the taxpayer owes tax amounts, late payment interests and fines eligible for write-off, clearly stating the reasons, and amounts requested for write-off: to submit 1 original;

b/ The customs dossier for the tax amounts, late payment interests and fines requested for write-off: to submit 1 copy;

c/ Depending on each case, the taxpayer shall additionally submit documents or papers related to the request for write-off of arrears of tax amounts, late payment interests and fines, specifically as follows:

c.1/ For the cases specified in Clause 1, Article 65 of the Law on Tax Administration:

The competent state agency’s decision on declaration of enterprise bankruptcy: to submit 1 original;

c.2/ For the cases specified in Clause 2, Article 65 of the Law on Tax Administration:

Death certificate, death notice or the court’s decision on missing declaration; the court’s judgment declaring an individual having lost the civil act capacity or competent state agencies’ documents proving an individual dead, missing or having lost the civil act capacity: to submit 1 original;

c.3/ For the cases specified in Clause 3, Article 65 of the Law on Tax Administration, which was amended and supplemented under Clause 20, Article 1 of Law No. 21/2012/QH13 Amending and Supplementing a Number of Articles of the Law on Tax Administration:

Documents and papers enclosed with the dossier on coercive payment of tax arrears which indicate that all coercive measures have been taken (even the hardest measure: revocation of business registration certificate, enterprise registration certificate or investment certificate. If such revocation fails, the competent agency’s written certification is requested): to submit 1 copy;

4. Competence to, order of, and time limit for write-off arrears:

a/ The competence to write-off arrears complies with Article 67 of the Law on Tax Administration, which was amended and supplemented under Clause 22, Article 1 of Law No. 21/2012/QH13 Amending and Supplementing a number of Articles of the Law on Tax Administration;

b/ Order of handling:

b.1/ Directors of Customs Departments to which taxpayers owe tax amounts, late payment interests and fines shall compile dossiers and examine and appraise the accuracy and completion of the dossiers and requests for write-off of arrears of tax amounts, late payment interests and fines for submission to competent authorities for write-off of arrears under regulations;

b.2/ The General Director of Customs shall consider and decide on write-off of arrears for the cases falling within his/her competence or receive, examine and appraise the accuracy and completion of dossiers and requests for write-off of arrears of tax amounts, late payment interests and fines for submission to the Minister of Finance for write-off of arrears for the cases falling within his/her competence, or report such to the Ministry of Finance for submission to the Prime Minister for write-off of arrears for the cases falling within the Prime Minister’s competence;

b.3/ Chairpersons of provincial-level People’s Committees shall consider and decide on write-off of arrears for the cases falling within their competence;

c/ Time limit for handling of dossiers for write-off of arrears complies with Article 68 of the Law on Tax Administration.

Section 8

FULFILLMENT OF THE TAX PAYMENT OBLIGATION

Article 135.Fulfillment of the tax payment obligation by persons on exit

1. Vietnamese who leave the country for overseas permanent residence and overseas Vietnamese and foreigners who have tax, late payment interest or fine arrears on imports or exports shall fulfill the tax payment obligation before their exit from Vietnam.

2. Taxpayers mentioned in Clause 1 of this Article shall obtain tax offices’ certification of fulfillment of the tax payment obligation before their exit from Vietnam. Customs offices shall notify in writing or electronically immigration agencies of the performance of the tax payment obligation by individuals with tax, late payment interest or fine arrears on imports or exports. Such a notice must specify full names, dates of birth, nationalities and numbers of identity cards or passports of persons who fail to fulfill the tax payment obligation and customs offices which manage arising tax arrears.

3. Immigration agencies shall stop the exit of individuals who fail to fulfill the tax payment obligation specified in Clause 1 of this Article in accordance with Article 53 of the Law on Tax Administration and Clause 3, Article 40 of Decree No. 83/2013/ND-CP.

Article 136.Fulfillment of the tax payment obligation in cases of dissolution, bankruptcy and operation termination

1. Fulfillment of the tax payment obligation in case of dissolution and bankruptcy complies with Article 54 of the Law on Tax Administration and the laws on enterprises, cooperatives and bankruptcy. Responsibilities to fulfill the tax payment obligation in case of dissolution and bankruptcy are as follows:

a/ Owners of private enterprises, owners of single-member limited liability companies; chairpersons of member councils, members of member councils, at-law representatives of limited liability companies with two or more members; boards of directors of joint-stock companies or enterprise liquidation organizations are responsible for fulfilling dissolved enterprises’ tax payment obligation;

b/ Councils for dissolution of cooperatives are responsible for fulfilling dissolved cooperatives’ tax payment obligation;

c/ Asset management and liquidation teams are responsible for fulfilling bankrupt enterprises’ tax payment obligation.

2. Responsibilities to fulfill the tax payment obligation in case taxpayers terminate operation without carrying out dissolution or bankruptcy procedures in accordance with law:

a/ If enterprises which terminate operation not according to dissolution or bankruptcy procedures fail to fulfill the tax payment obligation, tax arrears must be paid by owners of private enterprises, chairpersons of member councils or owners of limited liability companies, chairpersons of boards of directors of joint-stock companies or heads of management boards of cooperatives;

b/ If households or individuals that terminate business activities fail to fulfill the tax payment obligation, tax arrears must be paid by heads of those households or those individuals;

c/ If cooperative groups which terminate operation fail to fulfill the tax payment obligation, tax arrears must be paid by heads of cooperative groups.

Article 137.Fulfillment of the tax payment obligation by reorganized enterprises

1. Prior to its reorganization, an enterprise shall fulfill the tax payment obligation for its imports or exports.

2. When an enterprise fails to fulfill the tax payment obligation prior to its reorganization, it shall issue a document determining the tax payment obligation of each enterprise to be established from its reorganization, and newly established enterprises shall make written commitments with customs offices to fulfilling the tax payment obligation transferred from the reorganized enterprise.

3. Tax offices may not grant tax identification numbers to enterprises established from an enterprise’s reorganization if these enterprises fail to produce customs offices’ written certifications of their compliance with provisions of Clause 2 of this Article.

Article 138.Certification of fulfillment of the tax payment obligation

1. A taxpayer or a competent state management agency wishing to have his/her/its fulfillment of the tax payment obligation (including tax, late payment interest or fine arrears and/or tax amount paid into state budget) certified shall send a written request for certification to the General Department of Customs, clearly indicating the following details:

a/ His/her/its name and tax identification number;

b/ Contents of information to be certified and purposes of certification;

c/ Documents evidencing the information to be certified (copy version).

In case the taxpayer wishes to have his/her/its fulfillment of the tax payment obligation certified, his/her/its written request must be signed and appended a seal by his/her/its representative in accordance with law.

2. Customs offices shall examine and certify taxpayers’ fulfillment of the tax payment obligation when taxpayers make a written request in accordance with law.

In case of refusal to give certification, customs offices shall issue a written reply clearly stating the reason.

When examination or comparison of information on a taxpayer’s performance of the tax payment obligation is needed prior to certification, a customs office shall send the taxpayer a notice thereof.

The time limit for replying taxpayers is 5 working days after the receipt of taxpayers’ complete dossiers of request for certification.

3. Within 15 days (after the General Department of Customs issues a written confirmation of tax arrears), the provincial-level Customs Department shall base itself on documents and books for accounting import duty and export duty to inspect tax arrears of the enterprise. In case it determines that the enterprise owes tax arrears based on data on the tax accounting system (KT559) and tax arrears on imports and exports not recorded on this system, it shall promptly report these data to the General Department of Customs for re-confirmation of tax arrears of the enterprise. Past that time limit, if the provincial-level Customs Department fails to notify data to the General Department of Customs, it shall take responsibility for arrears of the enterprise.

4. After the General Department of Customs issues a written confirmation of tax arrears, the enterprise which requests to have its fulfillment of the tax payment obligation certified in order to dissolve, terminate operation or close down tax identification number and has already registered to carry out import or export procedures at the provincial-level Customs Department shall fully pay taxes and state budget remittances for its import and export activities before receiving goods.

5. A written confirmation of tax arrears of the General Department of Customs is valid 30 days after its signing. Enterprises shall guarantee that they have no tax and state budget remittance arrears for their import and export activities by the date of confirmation signing and take responsibility before law for their guarantee.

Part VI

POST-CUSTOMS CLEARANCE INSPECTION AND TAX INSPECTION

Chapter I

POST-CUSTOMS CLEARANCE INSPECTION

Article 139.Subjects of post-customs clearance inspection

Relevant customs dossiers, accounting books, financial statements, documents and data, customs-cleared imports and exports of goods owners, persons authorized by goods owners, importers or exporters, agents to carry out customs procedures and postal and express delivery service providers (below referred to as enterprises) are subject to post-customs clearance inspection.

Article 140.Principles, purposes and duration of post-customs clearance inspection

Post-customs clearance inspection aims to verify the accuracy and truthfulness of documents and dossiers declared, submitted and produced by enterprises to customs offices; enterprises’ observance of customs law, tax law and other laws related to the management of imports and exports.

Customs offices shall apply the risk management method to select inspected subjects, scope, contents and forms of post-customs clearance inspection.

Customs offices shall carry out post-customs clearance inspection of customs dossiers and goods that have been cleared from customs procedures within 5 years from the date of customs declaration registration. In case enterprises commit similar violations beyond the duration of inspection, they shall review by themselves and make additional declarations and fully pay taxes as prescribed.

Article 141.Scope of post-customs clearance inspection

Based on requirements of each post-customs clearance inspection and each case of inspection, customs offices shall identify scope of post-customs clearance inspection:

1. Inspection of the import or export of a goods item of one enterprise in a certain period.

2. Inspection of the import or export of many goods items of one enterprise in a certain period.

3. Inspection of one or many import or export items of an enterprise in terms of one or many aspects (for example, inspection of policy, value, heading and origin) of one or several import or export items of an enterprise in a certain period;

4. Inspection of one or many modes of importation or exportation of an enterprise in a certain period.

5. Inspection of all import and export activities of an enterprise in a certain period.

Article 142.Contents of post-customs clearance inspection

1. The completeness, legality and validity of customs dossiers filed at enterprises and customs offices where customs procedures are carried out for imports and exports;

2. The accuracy of tax bases and declarations of payable, exempt and refundable tax amounts and tax amounts not to be collected;

3. The observance of other tax regulations;

4. The observance of the customs law;

5. Physical inspection of imports and exports which have already been cleared from customs procedures at headquarters of enterprises, branches of enterprises, shops, production places or goods storages in case of necessity.

Article 143.Verification in post-customs clearance inspection

1. Verification means a customs office’s request for concerned or capable organizations and individuals to clarify questionable or unreasonable issues or signs of violation of law.

2. Verification requesters include directors of provincial-level Customs Departments; the director of the Department for Post-Customs Clearance Inspection; directors of Sub-Departments for Post-Customs Clearance Inspection; and heads of post-customs clearance inspection.

3. Subjects to verification are state management agencies and concerned organizations and individuals.

4. Verification may be requested and replied in writing; or verifiers may work directly with verified persons according to letters of reference of leaders of verification requesters. Verification results shall be recorded in a working minutes which serves as a basis for considering the case.

5. In case of direct verification, customs offices may do so on their own or request customs offices with favorable conditions to do so and then inform the results.

Article 144.Post-customs clearance inspection at customs offices

1. Post-customs clearance inspection at customs offices is a routine activity of customs offices with regard to customs dossiers, imports and exports that have been cleared from customs procedures within 60 working days from the date of customs clearance of goods to the date of inspection notification.

2. Post-customs clearance inspection at customs offices is conducted by the risk management method on the basis of information and dossier:

a/ Information and doubts from the customs database;

b/ Signs of violation and suspicions from customs branches carrying out procedures for customs clearance and professional units;

c/ Information collected by Sub-Departments for Post-Customs Clearance Inspection on signs of violation related to imports and exports which have been cleared from customs procedures.

3. Conduction of post-customs clearance inspection at customs offices:

When conducting post-customs clearance inspection at customs offices, directors of Customs Departments and directors of Sub-Departments for Post-Customs Clearance Inspection shall inform in writing enterprises of contents and duration of inspection; request enterprises to provide dossiers and documents related to customs dossiers, imports and exports subject to inspection; explain related contents; and conduct physical inspection of imports and exports which have been cleared from customs procedures if necessary. The time limit for inspection is 2 working days; contents of inspection must be recorded in writing.

Enterprises shall satisfy contents of inspection at the request of customs offices; and assign their at-law representatives or authorized representatives (below referred to as competent representatives) to work, explain and provide customs dossiers and documents related to imports and exports which have been cleared from customs procedures within 60 days and stored by enterprises, in order to clarify issues on which customs offices have suspicion.

4. Upon completion of post-customs clearance inspection at customs offices, customs officers conducting post-customs clearance inspection shall report on the scope, contents, process and results of inspection and propose draft inspection conclusions and handling measures to competent persons for consideration and decision, specifically as follows:

a/ If the enterprise gives explanation and additionally provides information and documents proving its proper importation or exportation and tax declaration or tax payment, its customs dossier will be accepted.

b/ If the enterprise fails to prove its declared tax amount and agrees with the customs office’s inspection results, it shall make additional declaration and sufficient tax payment in accordance with law within 10 days from the date of notification of inspection results. In case the enterprise fails to make additional declaration and sufficient tax payment in accordance with law, customs offices shall issue decision on inspection at offices of enterprises;

c/ In case the enterprise fails to prove its declared tax amount, but does not yet agree with inspection results of customs offices, customs offices shall issue decision on inspection at offices of enterprises;

d/ In case the enterprise fails to make explanation, provide dossiers and documents, refuse or delay the provision of dossiers and documents or explanations as requested by customs offices, customs offices shall make written records of violation and sanction administrative violations in accordance with law and update violations into the customs database in order to apply customs inspection measures to subsequent import and exports shipments of the enterprises; and consider to issue tax assessment decision in accordance with law, or decision on inspection at offices of enterprises in case of have insufficient grounds for tax assessment.

Heads of units conducting inspection shall sign and issue notices of inspection results to enterprises within 10 days after completing inspection for the cases specified at Points a and b, Clause 4 of this Article. In case of further inspection at offices of enterprise specified at Points b, c and d, Clause 4 of this Article, customs offices shall issue decisions on inspection at offices of enterprises within 30 days after completing inspection at customs offices.

5. Results of post-customs clearance inspection at customs offices are handled under the guidance in Chapter III of this Part.

Article 145.Post-customs clearance inspection at offices of enterprises

1. Cases of post-customs clearance inspection at offices of enterprises include:

a/ Post-customs clearance inspection applicable to cases subject to inspection at customs offices specified in Article 144 of this Circular;

b/ Post-customs clearance inspection when there are signs of violation;

c/ Planned post-customs clearance inspection to verify the observance of law by enterprises and is conducted according to a plan approved by the General Department of Customs on the basis of proposal of provincial-level Customs Departments;

d/ Thematic post-customs clearance inspection directed by heads of superior customs offices.

2. Duration of post-customs clearance inspection at offices of enterprises:

a/ Fifteen working days, for post-customs clearance inspection under Point c, Clause 1 of this Article;

b/ Five working days, for post-customs clearance inspection under Points a, b and d, Clause 1 of this Article;

c/ When necessary, issuers of inspection decision may extend the inspection duration which must not exceed the durations provided at Points a and b of this Clause. To-be-inspected enterprises must be notified of the reason for extension and extended inspection duration.

3. Post-customs clearance inspection at offices of enterprises:

a/ To make preparations before issuing decisions according to the procedures promulgated by the General Department of Customs. When necessary, customs offices shall conduct survey at enterprises before deciding inspection;

b/ To issue and inform decisions on post-customs clearance inspection at offices of enterprises:

b.1/ Decisions on post-customs clearance inspection at offices of enterprises must be issued by the General Director of Customs, directors of provincial-level Customs Departments, and directors of Sub-Departments for Post-Customs Clearance Inspection.

b.2/ Inspection decision must be sent directly or by registered mail or fax to enterprises within 3 working days from the date of signing and within 5 working days before inspection is conducted, for the cases subject to inspection specified at Points a, c and d, Clause 1 of this Article.

Post-customs clearance inspection when there are signs of violation specified at Point b of this Clause must be conducted right after announcing the decision without prior notification. In this case, inspection decision must be directly sent to the enterprise in the working hours.

c/ When enterprises fail to observe inspection decisions, customs offices shall make written records of violation and sanction administrative violations in accordance with law, update them into the risk management system for application of customs inspection measures applicable to subsequent import and export shipments of enterprises and issue tax assessment decisions in accordance with law.

d/ Inspection at offices of enterprises:

d.1/ The inspection team head shall announce the decision on post-customs clearance inspection;

d.2/ The enterprise shall assign competent representatives and related officers to provide dossiers and documents as requested and directly work on inspection contents with the inspection team;

d.3/ The inspection team shall conduct inspection within the scope, contents and duration specified in the decision;

d.4/ Inspection contents specified in the inspection records of competent representatives of the enterprise or related officers who have been working with the inspection team in the course of inspection;

d.5/ The inspection team shall report inspection results to heads of units conducting inspection and inspection deciders.

4. Conclusion on post-customs clearance inspection at offices of enterprises:

a/ Within 3 working days after completing the inspection at the office of the enterprise, the inspection team head shall make and send the draft inspection conclusions to the enterprise and the head of the unit conducting inspection;

b/ Within 3 working days after receiving the draft inspection conclusions, the enterprise shall finalize its explanations (written explanations enclosed with proving documents or documents of proposal to work directly with heads of units conducting inspection) in case of disagreeing with the draft inspection conclusions;

Past that time limit, if the enterprise fails to send a written explanation, it will be regarded as agreeing with the draft inspection conclusions of the inspection team head.

c/ Within 3 working days after the time limit for the enterprise’s explanation expires, the heads of units conducting inspection shall:

c.1/ Consider the written explanation of the enterprise or work with competent representative of the enterprise in case there are issues which need to be clarified. Working contents must be recorded in a working minutes which serves as a basis for considering and issuing inspection conclusions;

c.2/ Past that time limit, heads of units conducting inspection shall sign and issue written conclusions on post-customs clearance inspection at offices of enterprises.

d/ In complicated cases or cases requiring professional expertise and techniques, customs offices have insufficient grounds for conclusion, conclusions must be issued after opinions of professional agencies and units are obtained.

5. Results of post-customs clearance inspection at offices of enterprises must be handled under the guidance in Chapter III of this Part.

Article 146.Tasks and powers of heads of inspection teams

The head of an inspection team may perform a number of tasks of his/her inspection team, specifically:

1. To organize and direct the assignment of jobs to members of the inspection team in order to conduct inspection within the scope, contents and durations specified in the post-customs clearance decision.

2. To request inspected subjects to provide information, documents and make written report explaining about problems related to inspection contents; and conduct physical inspection of goods (when necessary).

3. To request state management agencies, and related organizations and individuals to provide information, vouchers, and documents related to the case, subjects and goods being inspected, within the duration of inspection decision implementation.

4. To sign directly or assign members of the inspection team to sign inspection minutes in the course of inspecting.

5. To report inspection results and draft inspection conclusions (after consulting opinions of members of the inspection team) and be responsible for the accuracy, truthfulness and objectiveness of the report; and propose handling inspection results so that the heads of the units sign the written inspection conclusions.

6. Other powers provided by law.

Article 147.Management and assignment of post-customs clearance inspection at offices of enterprises

1. Management of conducting post-customs clearance inspection

a/ The General Department of Customs shall manage, direct and inspect post-customs clearance inspection nationwide; approve the plans of post-customs clearance inspection for planned inspection and thematic inspection; assign units to conduct post-customs clearance at offices of enterprises outside localities under their management;

b/ Provincial-level Customs Departments shall manage, direct and inspect post-customs clearance inspection within localities under their management.

2. Assignment, decision, organization and conduction of post-customs clearance inspection at offices of enterprises:

a/ The General Directors of Customs shall decide, organize and conduct post-customs clearance inspection at offices of enterprises nationwide with regard to:

a.1/ Issues related to the implementation of major policies and modes of importation and exportation and imports and exports of high risk;

a.2/ Enterprises that have undergone post-customs clearance inspection but show signs of violation continued to post-customs clearance inspection;

a.3/ An issue being implemented inconsistently by localities;

a.4/ Big enterprises that have import and export activities at many localities;

a.5/ Cases subject to thematic inspection;

a.6/ Other cases approved by the director of the General Department of Customs.

b/ Directors of provincial-level Customs Departments shall decide, organize and conduct post-customs clearance inspection at offices of enterprises, for planned inspection or thematic inspection;

c/ Directors of Sub-Departments for Post-Customs Clearance Inspection shall decide and conduct post-customs clearance inspection at offices of enterprises within localities under their management.

In case of inspecting enterprises not based in the locality under its management, provincial-level Customs Departments shall report to the General Department of Customs for consideration and assignment of units conducting inspection.

Chapter II

TAX INSPECTION

Article 148.Principles of tax inspection

Tax inspection is carried out as prescribed in the Law on Tax Administration and the law on inspection

Article 149.Purposes of tax inspection

Tax inspection is to detect the weaknesses of management mechanisms, policies and laws on customs, laws on taxes regarding imports and exports for proposing competent state agencies for measures to overcome, prevent, detect and handle violations in tax and customs laws.

Article 150.Subjects of tax inspection

Subjects of tax inspection are agencies, organizations and individuals engaged in the observance of laws on customs, taxes and other collection items applicable to imports and exports.

Article 151.Contents of tax inspection

1. Contents of tax inspection comply with Article 13 of Decree No. 82/2012/ND-CP of October 9, 2012, on organization and operation of financial inspectorates.

2. When conducting inspection, an inspection team shall comply with requirements, contents and duration stated in the inspection decision. In case of necessity to change contents stated in the inspection decision, the law on inspection is complied with.

Article 152.Responsibilities and powers of heads and members of inspection teams

When conducting tax inspection, the head and members of an inspection team have tasks and powers provided in Articles 53 and 54 of Inspection Law No. 56/2010/QH12 of November 15, 2010, and the decrees guiding the implementation of the Inspection Law.

Article 153.Cases of tax inspection

Customs offices shall conduct tax inspection in the cases specified in Article 81 of the Law on Tax Administration. Cases of tax inspection are specified in Clause 2, Article 81 of the Law on Tax Administration, specifically when taxpayers show any signs of the following violations of the tax law:

1. Repeated violation of the tax law.

2. Violation committed in different localities.

3. Violation involving many organizations and individuals (customs offices have grounds to believe that taxpayers have been in collusion or cahoots with many organizations and individuals to commit tax fraud or evasion).

4. Showing signs of tax evasion.

5. Showing signs of dispersal of documents and exhibits in order to commit tax evasion or fraud during customs offices’ post-customs clearance inspection at offices of enterprises.

6. Showing signs of a new tax-related violation after customs offices complete post-customs clearance inspection at offices of enterprises.

7. In such complicated and serious cases as big appropriated tax amounts; use by taxpayers of unlawful or fake documents for tax declaration.

Article 154.Competence to decide on tax inspection

The General Director of Customs and directors of provincial-level Customs Departments may decide on tax inspection.

Article 155.Collection of information on inspected subjects

1. Information to serve as a basis for deciding on inspection must be specific and directly related to to-be-inspected persons or cases.

2. Information sources to be exploited and collected

a/ Official information sources of the customs service (the system of databases on taxpayers, import-export dossiers and imports and exports; results of re-examination of dossiers, results of post-customs clearance inspection and tax inspection; signs of violation reported by customs offices);

b/ Information outside the customs service (from other agencies and units related to import-export activities such as tax administration agencies, banks, transport, insurance and assessment organizations, associations of businesses, media reports and written complaints and denunciations of organizations and individuals);

c/ Other information collected by post-customs clearance inspection forces or anti-smuggling investigative agencies (from informants, information sellers, international cooperation activities and other information).

Article 156.Making of evaluation reports and inspection plans

1. To study and analyze selected information to make evaluation reports with the following principal contents:

a/ General situation and statistics of enterprises and their import or export activities (main export or import items, number of customs declarations, type of business, import or export turnover, tax amounts due, annual performance of the tax payment obligation and observance of law);

b/ Review and evaluation of major problems, signs of tax law violation and nature and level of revenues risks;

c/ Proposal of inspection contents and plans, clearly indicating focal and key issues; concerned organizations and individuals to be examined or verified.

2. To work out inspection plans with the following principal contents:

a/ Inspection purposes and requirements;

b/ Subjects of inspection;

c/ Scale and scope of inspection;

d/ Inspection contents;

dd/ Tentative time for inspection.

An inspection plan must specifically indicate each issue to be inspected, jobs to be done, implementation methods, places to go and time to start and complete these jobs, members of the inspection team and their tasks.

In the course of inspection, if finding it necessary to modify and supplement the inspection plan, the inspection team head shall make a written request therefor to the inspection decision issuer for consideration and decision. Such a request must clearly state the reason and contents to be modified and supplemented and other contents (if any). When the inspection decision issuer issues a written approval of such modification and supplementation, the inspection team head shall modify and supplement the inspection plan based on this approval.

3. Inspection plans of provincial-level Customs Departments must be sent to the General Department of Customs for coordination, for cases of overlapping inspection contents among units, and for professional direction and guidance.

Article 157.Inspection teams

An inspection team is composed of a head and members. When necessary, an inspection team may have a deputy head who shall assist the head in performing the assigned tasks and take responsibility to the head for the performance of his/her assigned tasks.

Article 158.Inspection duration

1. The duration of an inspection carried out by the General Department of Customs must not exceed 45 days, from the announcement of the inspection decision. In a complicated case, the inspection duration may be extended for no more than 70 days.

2. The duration of an inspection carried out by a provincial-level Customs Department must not exceed 30 days, from the announcement of the inspection decision. In a complicated case, the inspection duration may be extended for no more than 45 days.

Article 159.Inspection decisions

1. An inspection decision must have the following contents:

a/ Legal grounds for inspection;

b/ Subjects, contents, scope and tasks of inspection;

c/ Inspection duration;

d/ Head and other members of the inspection team.

2. Within 3 working days from the date of its signing, an inspection decision shall be sent directly or by registered mail to the to-be-inspected subject, except extraordinary inspection.

3. Within 15 days from the date of signing an inspection decision, the inspection team head shall announce such decision to the to-be-inspected subject.

For an enterprise which fails to observe an inspection decision, an inspector or inspection team head shall make a written record of administrative violation and issue a decision to sanction such administrative violation or refer the case to a competent person for handling under law.

Article 160.Inspection

When conducting an inspection, an inspection team shall perform the following jobs:

1. Announcing the inspection decision:

a/ The inspection team head shall introduce inspection team members, read the full text of the inspection decision; specifically explain inspection purposes, requirements and contents for the inspected subject to understand and comply with this decision; announce the working agenda for the inspection team and the inspected subject and other inspection-related jobs. When the scope of inspection also covers member units, branches and attached units of an inspected enterprise, the inspection team head shall specifically announce the list of to-be-inspected units, inspection time and contents, and rights and obligations of involved parties, for proactive compliance by the inspected subjects;

b/ To notify the inspection plan and request the inspected subject to provide dossiers and documents related to inspection contents;

c/ To request the inspected subject’s representative to report on the enterprise’s general situation, including its business line; organizational structures, functions, tasks and forms of accounting of its member units, branches and attached units; production or business organization modes; applied accounting standards and year; number of officials and employees and their salaries; partners in joint ventures or associations (if any);

d/ The announcement of the inspection decision shall be recorded in writing.

2. Receiving dossiers, documents, accounting documents and books and financial statements (below collectively referred to as documents) related to customs-cleared imports and exports provided by the enterprise. When these documents are stored in computers or other media, the enterprise shall also hand over these media to the inspection team. The inspection team shall check, count, preserve, exploit and use dossiers and documents properly and may not lose them. When necessary to preserve the status of dossiers, papers and documents, the inspection team head shall decide to seal up part or all of the documents. The sealing of documents, removal of seals for exploitation of documents or cancellation of the sealing comply with law.

3. Conducting detailed examination, compiling dossiers of proofs

To-be-inspected contents include:

a/ The completeness, lawfulness, validity, consistency, accuracy and truthfulness of customs dossiers filed at the enterprise as compared with customs dossiers filed at the customs office;

b/ Dossiers, documents, accounting documents and books, financial statements and other papers related to inspection contents;

c/ The enterprise’s observance of the laws on taxes and tax administration and other relevant regulations;

d/ Production lines, machinery, equipment, materials and supplies related the production and processing of imports or exports; and physical inspection of imports or goods produced by sub-contract mode, manufactured or processed from imports being stored by the enterprise, when necessary and conditions permit;

dd/ In the course of inspection, if detecting violations by the inspected subject, to make working minutes of those violations; if detecting signs of tax evasion or fraud, to apply the measures specified in Articles 89 thru 91 of the Law on Tax Administration.

4. Consolidating proofs and legal grounds, covering:

a/ Requesting explanation by the inspected subject:

For unclear matters with insufficient grounds for conclusion, an inspector or the inspection team head shall request explanation by the enterprise. If the enterprise’s written explanation is not clear enough, a question-and-answer session may be held;

Upon completion of the question-and-answer session, a written record must be made, fully and accurately recording contents discussed by the two parties. When necessary, audio or visual recording of such question-and-answer session may be made.

b/ Conducting examination and verification

b.1/ Unclear proofs and explanations provided by the enterprise shall be verified at concerned organizations and individuals or those having the capacity and conditions to clarify those issues. A report on examination and verification results shall be made, enclosed with supporting documents. The examination and verification report serves as a basis for carrying out subsequent steps.

b.2/ The tax inspection team head shall specifically notify verifying organizations of contents to be examined and verified and documents to be supplied and give them sufficient time to make full and accurate preparations.

c/ Soliciting assessment

For matters that require professional expertise and techniques beyond the inspection team’s capacity and conditions for making conclusions, the inspection team head shall decide to solicit assessment in accordance with law.

5. After clarifying matters of inspection, the inspection team shall finalize dossiers of proofs, supplement documents and statistics, sign together with the inspected subject working minutes or written certifications of documents and statistics, and compile inspection dossiers.

An inspection dossier, which is the original document for making the written inspection record, comprises:

a/ Written records on examination result, working minutes;

b/ Documents and reports made by the enterprise at the request of the inspection team;

c/ Lists of documents and statistics jointly made by the inspection team and enterprise;

d/ Copies of related documents;

dd/ Written explanations;

e/ Verification results.

6. Sanctioning administrative violations

In the course of inspection, when detecting violations subject to administrative sanctioning in accordance with law, inspectors or the inspection team head shall make written records of administrative violations, issue administrative sanctioning decisions or refer them to a competent person for handling according to the law on sanctioning of administrative violations.

7. Handing dossiers and documents

Upon completion of an inspection, each inspection team member shall:

a/ Hand over working minutes, written certifications of statistics and all collected proofs to the inspection team head; make lists of documents and number them; make a brief report on the case, propose conclusions and handling measures and provide grounds for such proposal;

b/ Return unnecessary dossiers and documents to the enterprise; keep dossiers and documents necessary for subsequent steps. Written records on return or keeping of dossiers and documents shall be made.

Article 161.Inspection written records

1. Completing an inspection, the inspection team head shall draft an inspection written record. Before this written record is officially signed by the inspected subject, the inspection team head shall hold a meeting with inspection team members to approve the inspection written record or give written opinions on the draft inspection written record.

An inspection written record shall be made and signed within 5 working days after an inspection is completed.

2. An inspection written record must specify results of each inspection content, violations and grounds for conclusion, consisting of the following parts:

a/ Introduction: To state legal grounds for making the inspection written record;

b/ Content: To specify inspected matters, results of comparison by the inspection team with statistics declared and reported by the taxpayer; to explain reasons and causes; and to give inspection proofs;

c/ Conclusion: To specify each inspected matter and determine the severity of violation by the taxpayer on the basis of specific regulations; and handling measures applied within the inspection team’s competence, and propose handling measures.

3. An inspection written record must be signed by the inspection team head and the taxpayer (or his/her/its lawful representative) on every page and appended with the taxpayer’s seal (if any). Matters agreed and disagreed between the inspection team and taxpayer must all be specified in the inspection written record.

4. An inspected subject may receive the tax inspection written record and request explanation thereon and have other rights provided in Clause 2, Article 86 of the Law on Tax Administration;

5. When necessary to extend the inspection duration, the inspection team head shall report on such extension to the inspection decision issuer for decision and may only extend inspection when such decision is issued.

Article 162.Inspection result reports and draft inspection conclusions

1. Within 15 working days after an inspection is completed, the inspection team head shall send a written report on inspection results and draft inspection conclusions to the inspection decision issuer, except for inspection result contents which must wait for professional conclusions of competent agencies and organizations. An inspection result report must have the following contents:

a/ Inspected matters;

b/ Clearly determined nature and severity of violations, reasons and responsibilities of violators (if any);

c/ Divergent opinions of inspection team members and the inspection team head on contents of the inspection result report (if any);

d/ Handling measures applied according to the team’s competence and proposed handling measures;

dd/ Regulations to serve as grounds for determining the nature and severity of violations and proposing handling measures;

2. An inspection team head may discuss with and seek opinions of concerned agencies and organizations on problems arising in the drafting of the inspection result report and conclusion to assure accurate and objective inspection conclusion.

3. An inspection result report (signed by the inspection team head) must fully cover inspected matters, matters which have not been inspected according to, or which have been inspected outside, the approved inspection decision and plan, and reasons therefor; disagreements of the enterprise; and propose management policies and regulations. Each conclusion content must specify the matter, grounds for right and wrong doings, causes, responsibilities and form of handling.

4. An inspection result report and draft inspection conclusion submitted to the inspection conclusion issuer must fully include written opinions of inspection team members. Team members’ opinions must confirm whether or not to agree with the report and draft conclusion made by the inspection team head on the jobs directly performed by themselves and by other members. In case of disagreement, the reason must be stated clearly. If inspection team members hold divergent opinions on the inspection result report and draft inspection conclusion, the inspection team head shall make his/her own decision and take responsibility for this decision.

Article 163.Inspection conclusion

1. Within 15 days after receiving an inspection result report, the inspection decision issuer shall issue an inspection conclusion. An inspection conclusion must have the following contents:

a/ Evaluation of the inspected subject’s observance of the tax law concerning inspected matters;

b/ Conclusions on inspected matters;

c/ Determination of the nature, severity and causes of violation and responsibilities of violators (if any);

d/ Handling of administrative violations according to competence or proposing to competent persons for handling under law.

2. Before issuing an inspection conclusion, the inspection decision issuer may request the head and members of the inspection team to report on and the inspected subject to explain issues necessary for making inspection conclusion. When necessary, the inspection decision issuer shall request the inspection team to conduct additional inspection to clarify matters. Additional inspection results must be recorded in a report serving as a basis for making the inspection conclusion.

3. The sending of inspection conclusions is as follows:

a/ For an inspection carried out by the General Department of Customs, the inspection conclusion shall be sent to the Ministry of Finance’s Inspectorate, the inspected subject, the head of the immediate superior management agency of the inspected subject (if any), and related agencies, organizations and individuals.

b/ For an inspection carried out by a provincial-level Customs Department, the inspection conclusion shall be sent to the General Department of Customs, the head of the immediate superior management agency of the inspected subject (if any), and related agencies, organizations and individuals.

4. When, through tax inspection, acts of tax evasion are detected to show criminal signs, within 10 working days after the detection, customs offices shall forward dossiers to competent agencies for investigation in accordance with the criminal procedure law. Customs offices shall coordinate with investigative agencies in investigating tax-related crimes in accordance with law.

Article 164.Rights and obligations of inspected subjects

Inspected subjects have the obligations and rights provided in Article 86 of the Law on Tax Administration.

Chapter III

IMPLEMENTATION OF POST-CUSTOMS CLEARANCE INSPECTION AND TAX INSPECTION CONCLUSIONS

Article 165.Jobs to be done after the issuance of post-customs clearance inspection or tax inspection conclusions

After the issuance of post-customs clearance inspection or tax inspection conclusions, the following jobs shall be done:

1. Issuance of a tax assessment decision (if any).

2. Issuance of a decision on handling of administrative violation (if any) and supervision, urging and enforcement of the execution of the decision in accordance with law.

3. When detecting acts of tax evasion showing criminal signs, compliance with Clause 2, Article 76 of the Law on Tax Administration and the criminal procedure law.

4. Update of information on tax examination and inspection results into the database system for subsequent management.

5. Proposal to competent authorities to amend, supplement or promulgate legal documents to stop and prevent violations.

6. Collection of taxes and urging of payment of taxes under tax assessment decisions and late tax payment fines by enterprises (if any) in accordance with law.

7. Monitoring and input of data into the accounting system and issuance of decisions and enforcement of tax payment by enterprises in accordance with law.

8. Reporting on tax collection results to tax assessment decision issuers.

Article 166.Assignment of implementation responsibilities

1. For post-customs clearance inspection activities:

a/ In case the General Department of Customs signs and decides on post-customs clearance inspection:

a.1/ The General Department of Customs shall comply with Clause 1, Article 165 of this Circular.

a.2/ The director of the Department for Post-Customs Clearance Inspection shall perform the jobs specified in Clauses 2 thru 8, Article 165 of this Circular.

b/ In case the director of  Customs Department signs decisions on post-customs clearance inspection, he/she shall directly conduct or assign the director of the Branch for Post-Customs Clearance Inspection to perform the jobs specified in Article 165 of this Circular.

c/ In case the director of the Branch for Post-Customs Clearance Inspection decides on and conducts post-customs clearance inspection, he/she shall perform all the jobs specified in Article 165 of this Circular.

2. For tax inspection activities:

a/ In case the General Department of Customs conducts tax inspection:

a.1/ The General Director of Customs shall comply with Clause 1, Article 165 of this Circular.

a.2/ The units performing tax inspection tasks of the General Department of Customs shall perform the following jobs:

a.2.1/ The jobs specified in Clauses 3 and 5, Article 165 of this Circular;

a.2.2/ Performing or assigning competent persons to perform the jobs specified in Clause 2, Article 165 of this Circular.

After the General Director of Customs issues tax assessment decisions, the units performing tax inspection tasks of the General Department of Customs shall:

a.2.3/ Send to every Customs Department which clears customs procedures for imports and exports 1 copy of the tax assessment decision enclosed with a detailed list of declarations subject to tax assessment and assessed tax amounts for this Customs Department to collect taxes under Clauses 6 and 7, Article 165 of this Circular;

a.2.4/ Oversee the tax collection by Customs Departments according to the General Director of Customs’ tax assessment decisions;

a.2.5/ Coordinate with Customs Departments which carry out procedures in handling and settling problems related to the implementation of tax assessment decisions;

a.3/ Customs Departments which clear customs procedures for exports and imports shall organize the performance of, and direct customs branch in performing, the jobs specified in Clauses 4, 6, 7 and 8, Article 165 of this Circular.

b/ In case Customs Departments decide on or conduct tax inspection, the Customs Departments shall perform the jobs specified in Article 165 of this Circular.

Part VII

ORGANIZATION OF IMPLEMENTATION

Article 167.Implementation responsibilities

1. The General Director of Customs shall, based on the guidance in this Circular, promulgate customs procedures and guide customs offices in uniformly carrying out these procedures to facilitate import-export activities while ensuring proper customs management.

2. Competent customs offices shall carry out customs procedures; conduct customs inspection and supervision; consider and give tax exemption, reduction, refund and non-collection, extend tax payment time limit, remit tax arrears, assess taxes, apply tax payment time limits and perform other tax administration jobs in strict accordance with current regulations and this Circular. In the course of implementation, customs offices, customs declarants and taxpayers shall specifically report arising problems to the Ministry of Finance (the General Department of Customs) for consideration and guidance for settlement on a case-by-case basis.

Article 168.Effect

1. This Circular takes effect on November 1, 2013.

If customs declarations registered before July 1, 2013, require procedures guided in this Circular, they must comply with the Ministry of Finance’s current guidance up to the effective date of this Circular.

Customs procedures for a number of types of imports and exports guided in Circular No. 196/2012/TT-BTC, and amended and supplemented in this Circular comply with contents amended and supplemented in this Circular.

To annul Circular No. 194/2010/TT-BTC of December 6, 2010, Circular No. 92/2010/TT-BTC of June 17, 2010, Circular No. 106/2005/TT-BTC of December 5, 2005, Circular No. 128/2010/TT-BTC of August 26, 2010, and Circular No. 01/2012/TT-BTC of January 3, 2012; Section II, Chapter II and Chapter III of Circular No. 49/2010/TT-BTC of April 12, 2010, Point c, Clause 3, Article 2 of Circular No. 193/2012/TT-BTC of November 15, 2012; provisions on tax payment duration in Clause 2 of Article 4, Clause 1 of Article 11, and Points 1.2.5.4 and 1.2.6, Clause 1, Article 14 of Circular No. 205/2010/TT-BTC of December 15, 2010; provisions on tax payment duration for exported crude oil in Clause 2, Article 10 of Circular No. 32/2009/TT-BTC of February 19, 2009; Article 12 of Circular No. 155/2011/TT-BTC of November 11, 2011; and other contents guiding customs procedures; customs inspection and supervision; import duty and export duty, and tax administration applicable to imports and exports promulgated by the Ministry of Finance before the effective date of this Circular and incompliant with the guidance of this Circular.

2. Contents of tax administration in the Law Amending and Supplementing a Number of Articles of the Law on Tax Administration would be implemented from the effective date of the Law (July 1, 2013).

Methods of determination of late tax payment fines for customs declarations registered before July 1, 2013, with taxpayers paying taxes late or tax payment after July 1, 2013, comply with Article 131 of this Circular.

3. In the course of implementation, if relevant documents mentioned in this Circular are amended, supplemented or replaced, the new documents apply.-

For the Minister of Finance
Deputy Minister
DO HOANG ANH TUAN

Note: All the set forms and appendices to this Circular are not translated.