Circular No. 21/2011/TT-BCT dated May 20, 2011 of the Ministry of Industry and Trade regulating the management of business activities of temporary import for re-export of frozen foods

CIRCULAR

REGULATING THE MANAGEMENT OF BUSINESS ACTIVITIES OF TEMPORARY IMPORT FOR RE-EXPORT OF FROZEN FOODS

Pursuant to the Government’s Decree No. 189/2007/ND-CP dated December 27, 2007 on function, tasks, power and organization structure of Ministry of Industry and Trade;

Pursuant to the Decree No. 12/2006/ND-CP dated January 23, 2006 of the Government detailing the implementation of the Law on Commerce on activities of buying and selling international commodities and agent activities including purchasing, selling, sourcing, outsourcing, border-gate transfer, and transiting of commodities with foreign countries;

To implement the Prime Minister’s directive opinion at the Official Dispatch No. 1152/TTg-KTTH dated July 07, 2010 on strengthening the management of exported frozen food and the Official Dispatch No.1217/VPCP-KTTH dated March 01, 2011 on management of temporary import activity for re-export of frozen food;

The Minister of Industry and Trade stipulates the management of temporary import business activity for re-export of frozen foods as follows:

Chapter I

GENERAL PROVISIONS

Article 1. Scope of governing

1. This Circular stipulates on the management of temporary import business activity for re-export of frozen foods with re-export through the front line provinces (hereinafter referred to as the business activity of temporary import for re-export).

2. Business activities of border transfer of frozen foods are not made through the land border gates.

3. Frozen foods prescribed in this Circular, include the frozen foods to be of chapter 02, chapter 03 and chapter 16 in the list of exports and imports of Vietnam, issued together with Decision No. 107/2007/QD-BTC dated December 25, 2007 of Ministry of Finance, excluding the viscera of cattle and poultry viscera shall comply with the provisions of Circular No. 33/2010/TT-BCT dated September 11, 2010 of Ministry of Industry and Trade stipulating the business of temporary import for re-export, transshipment of frozen and unfrozen cattle viscera, poultry viscera.

Article 2. Subjects of application

1. This Circular applies to Vietnamese traders (hereinafter referred to as traders) trading temporary import for re-export of frozen foods with re-export through the front line provinces; the agencies and organizations are responsible for management, certification, inspection and monitoring of business activities as mentioned above and the concerned agencies, organizations and individuals.

2. Traders with foreign investment capital shall comply with Vietnam s commitments on joining the World Trade Organization (WTO).

Chapter II

PROVISIONS ON TRADING TEMPORARY IMPORT FOR RE-EXPORT OF FROZEN FOODS

Article 3. Regulation of storing area for trading temporary import for re-export of frozen foods

Storing areas must have minimum containing power of 100 (one hundred) cold containers of 40 (forty) feet, minimum area of 1,500 m². Storing areas are separated from the outside by solid fence.

Storing areas must have sufficient power (including electricity supply and backup generators with equivalent capacity) and specialized equipment together with to operate the cold containers by capacity of warehouse specified in clause 1 of this Article.

Storing areas specified in clause 1, 2 of this Article must be owned by the traders or signed leasing contracts by traders, the minimum term is 03 years. Storing areas must be in the planning or in areas specified by the provincial People s Committee where the operations of re-export of frozen foods take place. Planning and regions specified above should be communicated, agreed by the Ministry of Industry and Trade.

For the provinces that have not had the re-export operation of frozen foods in the areas, when there is new arising and demand on storing area for traders to participate in trading temporary import for re-export, the provincial People s Committee must consult with the Ministry of Industry and Trade before the planning.

Article 4. Regulations on reserve deposit to ensure treatment of sanitation, environment and the overdue backlog

Traders trading temporary import for re-export of frozen foods must deposit for reserve to ensure treatment of sanitation, environment, and the non-re-exported overdue backlog (hereinafter referred to as reserve deposit) in the following provisions:

1. Traders must maintain a deposit amount as 02 billion dong at the State Treasury where traders locate their storages.

2. Traders are enjoyed interest from the deposit amounts as prescribed by the State Treasury.

3. Traders are responsible for paying all expenses for handling; cleaning up environment and destroying temporarily imported goods for re-export rested overdue time limit prescribed. In case traders fail to make payment of costs required by the competent authorities, reserve deposits of traders are used as follows:

a) To pay all costs for handling, cleaning up the environment if the trader s goods pollute the environment during storage, temporary import for re-export in Vietnam;
b) To pay all costs for destruction of temporarily imported goods for re-export of traders which are rested beyond the prescribed time limit.

4. After paying the expenses as prescribed in clause 3 of this Article (if any), traders will be refunded the full amount or part of their deposit amount in the following cases:

a) Not to be granted code number of temporary import for re-export;

b) Not to be continued the business activity of temporary import for re-export;

c) Be revoked code number of temporary import for re-export which has been issued

Article 5. Dossiers and procedures for granting code number of temporary import for re-export

When meeting sufficient conditions as specified in Article 3 and Article 4 of this Circular, traders trading temporary import for re-export of frozen foods shall be considered to grant code number of temporary import for re-export of frozen foods by the Ministry of Industry and Trade (hereinafter referred to as the code number of temporary import for re-export). Dossiers and procedures are implemented as follows:

1. Traders send 01 set of dossier registering code number of temporary import for re-export by post to the Department of Import and Export, the Ministry of Industry and Trade (No.54 Hai Ba Trung, Hoan Kiem, Hanoi), including:

- A written request for granting code number of temporary import for re-export of frozen foods (upon the form in Appendix No.01): 01 original;

- Certificate of business registration and certificate of tax identification number registration (or certificate of enterprise registration): 01 copy certified and sealed true copy of the trader;

- Written certification on deposit as specified in clause 1, Article 4 of this Circular granted by the provincial State Treasury where trader locates its warehouse: 01 original.

If traders do not re-export frozen foods through the northern front line provinces are not required to have code number of temporary import for re-export granted by the Ministry of Industry and Trade; the temporary import for re-export shall comply with the current regulations.

2. Within 07 (seven) working days since the date of receiving complete, valid dossiers of the traders in clause 1 of this Article, the Ministry of Industry and Trade will inspect or authorize the Department of Industry and Trade to inspect, confirm the conditions on warehouse of the traders.

3. Within 07 (seven) working days since the date that the Ministry of Industry and Commerce receives the inspection results, the Ministry of Industry and Trade will consider for granting code number of temporary import for re-export to traders. In case of refusal, the Ministry of Industry and Trade will respond in writing and stating clearly the reason.

4. Certificate of code number of temporary import for re-export of the trader (upon the form in Appendix 02) is valid for 03 (three) years from the date of grant.

5. Storing areas which traders declared to apply for granting code number of temporary import for re-export is not permitted to let other traders to hire full or part of it for use in the purposes of applying for granting code number of temporary import for re-export.

Article 6. Revocation, re-grant, adjustment of the code number of temporary import for re - export

1. Traders are revoked the code number of temporary import for re - export in the following cases:

a) Fraud in the declaration as prescribed in Article 3 and Article 4 of this Circular.

b) Within 30 days from the date that the competent agencies have required for payment of expenses prescribed in clause 3, Article 4 of this Circular that traders fail to implement the payment obligation for the above expenses.

c) Having not enough reserve deposit amount as specified in Article 4 of this Circular.

d) Violation in the lease in full or sublease part of warehouse as prescribed in clause 5 of Article 5 of this Circular.

đ) Violation of regulation mechanisms as prescribed in point b clause 4, Article 10 of this Circular.

Traders who are revoked the code number of temporary import for re-export are not allowed to apply for granting the code number of temporary import for re - export within 01 (one) year from the date of revocation. During this time, traders can only be used warehouses which have registered for granting the code number of temporary import for re-export in the purpose of trading warehouse, not to use for purposes of applying for granting the code number of temporary import for re-export.

2. Where the certificate of code number of temporary import for re-export is lost, mislaid or damaged, trader submits registration dossier for code number of temporary import for re-export as specified in Article 5 of this Circular and written explanation, requesting for re-granting the certificate of code number of temporary import for re-export to the Ministry of Industry and Trade.

3. Where the certificate of code number of temporary import for re-export is invalid, trader submits registration dossier for code number of temporary import for re-export as specified in Article 5 of this Circular, the original certificate of code number of temporary import for re-export which has been issued and written application for granting new code number of temporary import for re-export to the Ministry of Industry and Trade.

4. Where it is necessary to adjust the content of the certificate of code number of temporary import for re-export which has been issued, trader submits registration dossier for code number of temporary import for re-export specified in Article 5 of this Circular, the original certificate of code number of temporary import for re-export which has been issued and written explanation, a proposal for amending the certificate of code number of temporary import for re-export to the Ministry of Industry and Trade.

The cases referred to in the clauses 2, 3, 4 of this Article, certificate of code number of temporary import for re-export shall be re-issued after 07 (seven) working days since the date of receipt of complete and valid dossier of trader.

Article 7. Location, border gate of re-export

Traders that have code number of temporary import for re-export are allowed to conduct procedures of customs clearance, re-export of frozen foods across the international border gates, the main border gates and the border gates, the inland clearance depot in the border gate economic zone permitted to establish and have all the specialized control bodies as prescribed by Prime Minister.

Article 8. Sending foods in the bonded warehouses

Traders that have code number of temporary import for re-export are allowed to send frozen foods to the bonded warehouses in the front line provinces.

Article 9. Payment

Payment for goods of temporary import for re-export must comply with the regulations on foreign exchange management and guidance of the State Bank of Vietnam.

Chapter III

ORGANIZATION OF IMPLEMENTATION

Article 10. Regulation mechanisms

1. To avoid congestion at the ports, border gates and ensure requirements on food hygiene and safety, traders must make the requests of the Ministry of Industry and Trade and the competent agencies to reduce progress of goods temporary import or suspension to take goods to Vietnam to regulate volume of temporary imports to ports, border gates of Vietnam.

2. Traders must strictly implement the clearance of goods at ports, border gates to avoid congestion at the request of the competent agencies. Where the competent agencies request traders to suspend to take goods to Vietnam to regulate volume of temporary imports at the ports, border gates, but traders still continue to take goods to Vietnam, the customs authorities do not conduct temporary import procedures and require traders to re-export back to the exporting country.

3. After 45 (forty-order) days from the date of temporary import but not be re-exported, the customs authorities do not conduct temporary import procedures for the next goods lot of frozen foods of the trader and inform the Ministry of Industry and Trade to conduct the regulation as prescribed in clause 1 and 2 of this Article.

4. Handling of violations of regulation mechanisms

a) Traders that fail to implement the provisions on regulation mechanisms in clause 1, 2, 3 of this Article or fail to execute the clearance order of goods at ports, border gates at the request of the competent authorities will be suspended the business of temporary import for re-export of frozen foods within 06 (six) months.

b) After the expiration of suspension of business of temporary import for re-export of frozen foods that traders still continue to relapse, traders will be revoked code number of temporary import for re-export.

Article 11. Responsibilities of agencies and organizations

Apart from the provisions on responsibilities stated in the Articles of this Circular and the provisions on their functions, duties, the agencies, and organizations focus on directing the implementation of a number of following responsibilities:

1. The Ministry Industry and Trade is responsible for:

a) Granting code number of temporary import for re-export to traders under the provisions of this Circular.

b) Organizing the inspection and certification of the conditions on the warehouses or authorizing the Department of Industry and Trade to examine and certify in accordance with provisions in Article 3 of this Circular.

2. The provincial People s Committees as stipulated in clause 3, Article 3 of this Circular are responsible for:

a) Setting up the plan of storing areas of preserving frozen foods of temporary import for export to meet the requirements on warehouse as mentioned above, not affecting environment and contribute to combat commercial fraud.

Before planning the storing areas, the provincial People s Committee issues written consultation of the Ministry of Industry and Trade and Ministry of Defense on the need and evaluates the development ability of activity of temporary import for re-export in the area, avoid the spread of investment, causing waste. Where the storing areas which have been approved, stipulated before the effective date of this Circular, it shall comply with the approved plans and the areas have been defined.

b) Directing the provincial function authorities to monitor and inspect the temporary import for re-export of frozen foods of traders to combat commercial fraud, smuggling and protect the environment; promptly notify the Ministry of Industry Trade the happenings of frozen food delivery of temporary import for re-export and propose management measures to achieve goals and avoid congestion at the ports, boder gates.

c) Organizing the management and use of reserve deposits of traders in accordance with provisions in Article 4 of this Circular.

3. Traders trading temporary import for re-export of frozen foods are responsible for:

a) Seriously implementing the provisions referred to in this Circular and other regulations on temporary import for re-export, transshipment of goods.

b) Paying all expenses for handling, cleaning the environment, destruction of goods in stock beyond the prescribed time limit upon request of the competent agencies.

c) In case of congestion phenomena, strictly implement the clearance of goods at the importing ports to their storing areas upon request of the competent agencies, organizations.

d) At the request of customs agencies or competent agencies, traders must re-export goods to third countries or re-export for returning the exporting countries if the goods have expired the time limit to be kept in Vietnam.

đ) Collecting and treating waste, waste water to prevent epidemic diseases, ensure environmental sanitation in its storing areas.

e) Reporting periodically before the 25th day monthly (by post and e-mail) to the Ministry of Industry and Trade, the People s Committees and the Departments of Trade of provinces where the storages locate and re-export goods passing through on the situation of implementing temporary import for re-export of frozen foods (upon the form in Appendix 03)

Chapter IV

EFFECT

Article 12.This Circular takes effect from July 03, 2011.

Article 13.During the implementation of this Circular, if any problems arise, agencies, organizations, and traders carrying on business of temporary import for re export of frozen foods reflect in writing to the Ministry of Industry and Trade for timely settlement.