Circular No. 38/2015/TT-BTC dated March 25, 2015 of the Ministry of Finance providing regulations on customs procedures; customs inspection and supervision, import and export duties, and tax administration applicable to exported goods and imported goods

CIRCULAR

Providing regulations on customs procedures; customs inspection and supervision, import and export duties, and tax administration applicable to exported goods and imported goods

Pursuant to the Customs Law No. 54/2014/QH13 dated June 23, 2014;

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

Pursuant to the Law on Tax Administration No. 78/2006/QH11 dated November 29, 2006; the Law Amending and Supplementing a Number of Articles of the Law on Tax Administration No. 21/2012/QH13 dated November 20, 2012; the Law Amending and Supplementing a Number of Articles of the Laws on Taxes No. 71/2014/QH13 dated November 26, 2014s;

Pursuant to the Commercial Law No. 36/2005/QH11 dated June 14, 2005;

Pursuant to the Law on E-Transactions No. 51/2005/QH11 dated November 29, 2005;

Pursuant to the Law on Value-added tax No. 13/2008/QH12 dated June 03, 2008; Law No. 31/2013/QH13 Amending and Supplementing a Number of Articles of the Law on Value-added tax No. 13/2008/QH12 dated June 19, 2013;

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

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

Pursuant to the Government's Decree No. 08/2015/ND-CP dated January 21, 2015, detailing, and providing measures to implement the Customs Law regarding customs procedures and customs inspection, supervision and control;

Pursuant to the Government's Decree No. 12/2015/ND-CP dated February 12, 2015, detailing the implementation of the Law Amending and Supplementing a Number of Articles of the Tax Laws and amending and supplementing a number of articles of Decrees on taxes;

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

Pursuant to the Government's Decree No. 83/2013/ND-CP dated 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. 187/2013/ND-CP dated November 20, 2013, regarding international goods sale and purchase and goods sale, purchase, processing and transit agency activities with foreign countries;

Pursuant to the Government's Decree No. 209/2013/ND-CP dated December 18, 2013, detailing and guiding a number of articles of the Law on Value-added tax;

Pursuant to the Government's Decree No. 26/2009/ND-CP dated March 16, 2009, detailing a number of articles of the Law on Excise Tax and the Government's Decree No. 113/2011/ND-CP dated December 08, 2011, amending and supplementing a number of articles of the Government’s Decree No. 26/2009/ND-CP of March 16, 2009, detailing a number of articles of the Law on Excise Tax;

Pursuant to the Government's Decree No. 67/2011/ND-CP dated August 08, 2011, detailing and guiding the implementation of a number of articles of Law on Environmental Protection Tax and the Government's Decree No. 69/2012/ND-CP dated September 14, 2012, amending and supplementing Clause 3, Article 2 of Decree No. 67/2011/ND-CP of August 8, 2011, detailing and guiding a number of articles of the Law on Environmental Protection Tax;

Pursuant to the Government's Decree No. 23/2007/ND-CP dated February 12, 2007, detailing the commercial law regarding goods purchase and sale activities or goods purchase and sale related activities of foreign-invested enterprises in Vietnam;

Pursuant to the Government's Decree No. 29/2008/ND-CP dated March 14, 2008, providing for industrial parks, export processing zones, and economic zones;

Pursuant to the Government's Decree No. 164/2013/ND-CP dated November 13, 2013 on amendments to Decree No. 29/2008/ND-CP dated March 14, 2008 on industrial parks, export-processing zones, and economic zones;

Pursuant to the Government's Decree No. 215/2013/ND-CP dated December 23, 2013, defining the functions, tasks, powers and organizational structure of the Ministry of Finance;

At the proposal of the Director General of Customs,

The Minister of Finance hereby promulgates Circular providing regulations on customs procedures; customs inspection and supervision, import and export duties, and tax administration applicable to exported goods and imported goods.

Chapter I

GENERAL PROVISIONS

Article 1. Scope of regulation

1. This Circular stipulates customs procedures, customs inspection and supervision, import and export duties, and tax administration applicable to exported goods and imported goods.

2. Customs procedures, customs inspection and supervision applicable to the following types of exported goods and imported goods shall comply with the Ministry of Transport’s separate guidance:

a) Exported goods and imported goods that are sold at duty-free shops;

b) Postal packages that are exported or imported via postal network; exported goods or imported goods that are sent by express mail;

c) Petrol, oil; materials of petrol, oil that are exported, imported, or temporarily imported for re-export;

d) Gases and liquefied oil and gas gas that are exported, imported, temporarily imported for re-export, or transited; materials that are imported for production and preparation of gases and liquefied oil and gas gas; materials that are imported for processing gases and liquefied oil and gas gas for export.

3. Exported goods or imported goods of enterprises that are eligible for state management priority in terms of customs shall be prioritized when carrying out customs procedures; customs supervision and inspection, tax management in accordance with this Circular.

Article 2. Rights and obligations of declarants, taxpayers; responsibilities and powers of customs offices and customs officers

1. In addition to the rights and obligations specified in Article 18 of the Customs Law; Articles 6, 7, and 30 of the Law on Tax Administration No. 78/2006/QH11, which was amended and supplemented under Clauses 3 and 4 Article 1 of the Law Amending and Supplementing a Number of Articles of the Law on Tax Administration No. 21/2012/QH13; Article 5 of Decree No. 83/2013/ND-CP, customs declarants and taxpayers shall be responsible for making customs declarations, additional declarations, and using goods according to the declaration purpose as follows:

a) Honestly declaring sufficient and accurate criteria on the customs declaration and documents to be submitted or presented in accordance with law provisions, grounds used as a basis relating to tax calculation or exemption, consideration for tax exemption, reduction, refund, cancellation of import and export duties, excise tax, value-added tax, environmental protection tax (except for declaration of tax rates and payable taxes of on goods not liable to duty);

b) Self-declaring and taking responsibility before the law for declaration of payable tax amount; exempted tax amount, tax amount considered for exemption, reduction, refund or not subject to collection of import and export duties, excise tax, value-added tax, environmental protection tax in accordance with the law; declaring tax payable on the payment slip in accordance with the Ministry of Finance’s regulations on collection, payment of taxes and other revenues of exported goods or imported goods;

c) Regarding exported goods or imported goods not subject to import and export duties, excise tax, value-added tax, environmental protection tax, or eligible for consideration of exemption from import and export duties, or eligible for preferential tariff, tax rates within tariff-rate quota, which have been settled according to their declarations, but then there are changes to the subjects not liable to duty or the purposes to be exempted from tax, considered for tax exemption, imposition of preferential tariff, special preferential duty rates or tax rates within tariff-rate quota; and goods that are raw materials, supplies imported in service of manufacture of goods to be exported, goods temporarily imported for re-export that are transferred for domestic consumption, the taxpayers must make customs declarations for the goods with use purposes changed, or transferred for domestic consumption as specified in Article 21 of this Circular;

d) Appointing representatives to carry out customs procedures and other administrative procedures with the customs offices.

2. The inheritance of rights and fulfillment of tax liabilities of enterprises formed after reorganization in accordance with Article 55 of the Law on Tax Administration. To be specific:

a) The converting enterprises shall be responsible for inheriting tax obligations and benefits; incentives on customs procedures and tax payment procedures for imported goods of old enterprises;

b) Enterprises that are consolidated, merged, divided, or separated shall ve entitled to apply the 275-day tax payment deadline for goods that are raw materials and supplies imported to produce exported goods according to the provisions of Article 38 of Decree No. 83/2013/ND-CP and Clause 1, Article 42 of this Circular in the following cases:

b.1) Both the consolidating companies/acquired companies and the consolidated companies/acquirers satisfy conditions;

b.2) The new enterprise is formed from a divided enterprise, or the separated enterprise that fully satisfies conditions.

c) Enterprises that are consolidated, merged, divided, or separated in other cases: Director of the Provincial-level Customs Department, inter-province, or centrally-run city (hereinafter referred to as the Customs Department) where the enterprise is headquartered shall, based on the reality, consider deciding on the application of the 275-day tax payment deadline as prescribed in Article 38 of Decree No. 83/2013/ND-CP and Clause 1, Article 42 of this Circular.

3. Customs offices and customs officers shall perform the duties and powers specified in Article 19 of the Customs Law, Articles 8 and 9 of the Law on Tax Administration, which was amended under Clauses 5 and 6 Article 1 of the Law Amending and Supplementing a Number of Article of the Law on Tax Administration No. 21/2012/QH13.

Article 3. Regulations on submission, certification, and use of documents in the customs dossiers, tax dossiers

1. The customs declarants, taxpayers are not required to submit the customs declarations of exported goods or imported goods (hereinafter referred to as customs declarations) when requesting the customs offices to carry out the procedures for consideration for tax exemption, tax reduction, tax refund, non-collection of tax, handling of overpaid tax, late-payment interest or fine, tax payment extension, tax payment in instalments, certification of fulfillment of tax liabilities, elimination of tax debt, late-payment interest, and fines, except in cases of customs declaration on paper customs declarations.

2. Documents in the customs dossiers, additional declaration dossiers, dossiers of registration for list of duty-free goods, reports on use of duty-free goods, dossiers for consideration for tax exemption, tax reduction, tax refund, non-collection of tax, dossier requesting handling of overpaid tax, late-payment interest, fines, dossier requesting extension of tax payment, dossier for gradual payment of tax debt, dossier confirming completion of tax payment obligation, dossier requesting elimination of tax debt, late-payment interest, and fines paid to customs offices through the Electronic Customs Data Processing System or submit paper copies according to regulations of the Director General of Customs. In cases where the original must be submitted according to regulations, the customs declarant must submit it directly or by post to the customs office.

When examining the dossiers, the customs office shall use documents in the electronic customs dossiers and information on the System for examination, comparison and storage.

3. In case of making paper customs declaration or the customs dossier is a copy, the customs declarant or taxpayer may submit the original or copy. In case of copies or documents issued by foreigners in electronic form, fax, telex or documents issued by customs declarants or taxpayers, the customs declarant or taxpayer must confirm, sign, stamp and be responsible before the law for the accuracy, truthfulness and legality of those documents. In case the photocopy has many pages, the customs declarant or taxpayer shall confirm, sign, stamp the first page and stamp the entire document.

4. If the language of the dossiers specified in Clause 1, Clause 2, and Clause 3 of this Article is not Vietnamese or English, the customs declarant or taxpayer must translate them into Vietnamese and take responsibility for such translations.

5. The customs declarant shall retain dossiers specified in Clause 2 of this Article and books, accounting documents for a period of time as prescribed by the law on accounting. Besides, the customs declarant must retain other documents relating to exported goods or imported goods for 05 years, including transport documents of exported goods, packing lists, technical documents, receipts and documents relating to actual norms for processing and manufacturing export products.

The customs declarant must keep originals of the above-mentioned documents (unless they have been submitted to the customs office). Electronic documents shall be kept in the electronic form or converted into paper documents as prescribed by the law on e-transactions.

Article 4. Regulations on carrying out customs procedures overtime, on days off and public holidays

1. The customs office shall carry out customs procedure on days off, public holidays, and overtime to ensure timely loading or unloading of exported goods or imported goods, timely handling the entry and exit of people and vehicles, or according to declarants’ prior notices made via the System or in writing (fax permitted) as specified in Clause 4 Article 23 of the Customs Law. Such notice must be sent to the customs office during working hours as prescribed. After receiving the notice, the customs office shall immediately send feedback to the customs declarant via the System or in writing of the carrying out of customs procedure overtime, on days off, or public holidays.

2. If working hours are over while the customs office is checking dossiers or carrying out physical inspection of goods, the inspection shall continue to be carried out until completion without requesting the customs declarant to make a written request. Time limit for inspection shall comply with Clause 2 Article 23 of the Customs Law.

3. At land border border-gates, customs procedures shall be carried out overtime in a suitable manner with the opening and closing time of the border gates in accordance with law provisions and treaties between Vietnam and bordering countries.

Article 5. Use of digital signatures when carrying out electronic customs procedures

1. Digital signatures used for carrying out electronic customs procedures must satisfy the following conditions:

a) The digital signature is corresponding with the digital certificate provided by a recognized public or foreign digital signature authentication provider as prescribed in Decree 170/2013/ND-CP;

b) The digital signature authentication provider specified at Point a Clause 1 of this Article must be named on the list of organizations providing digital signature authentication services that are certified by customs offices to compatible with the System and posted customs portal (www.customs.gov.vn).

2. Before a digital signature is used for carrying out electronic customs procedures, the customs declarant must register it with the customs office.

In case the customs declarant carries out electronic customs procedures via a customs brokerage agent or entrusts the export, import, the customs brokerage agent or the trustee must use the account and digital signature of the customs brokerage agent or the trustee.

3. The customs declarant must register the modification and supplementation of information about the digital signature with the customs office in the following cases: the registered information is changed, the digital certificate is renewed, the key is changed, or the digital certificate is suspended.

4. The registration, modification, supplementation or cancellation of information about the digital signature registered with the customs office shall comply with guidance provided in Appendix I to this Circular.

5. The registered digital signature of the customs declarant shall be used when following electronic customs procedures nationwide.

Article 6. Electronic Customs Data Processing System

1. Customs offices shall be responsible for development, management, operation, and use of the Electronic Customs Data Processing System (hereinafter referred to as the System).

2. Other agencies, organizations and individuals shall, within the ambit of competence, be responsible for providing, exchanging information about export and import of goods with customs offices via the System in accordance with the applicable laws.

3. Subjects permitted to access and exchange information with the System:

a) Customs officers;

b) Customs declarants;

c) Organizations providing value-added services that have been recognized by customs offices;

d) State management agencies related to licensing, specialized management of exported goods or imported goods; issuance of Certificates of origin (CO);

dd) The agencies monitoring tax management and price management of exported goods or imported goods;

e) Credit institutions that have signed agreements on collection and payment of taxes, charges, and other state budget revenues related to the export and import with the General Department of Customs; credit institutions or other organizations operating in accordance with the Law on credit institutions that provide guarantee for customs declarants’ tax payment;

g) The port and warehouse operation enterprises;

h) Other organizations and individuals as prescribed by the General Department of Customs.

4. Grant of accounts to assess the System:

a) Subjects specified in Clause 3 of this Article shall be provided with accounts to access the System as prescribed by customs offices;

b) The access to the System must ensure State secrets and confidentiality of information of the persons who carry out customs procedures in accordance with law provisions.

5. Organizations and individuals making customs declarations via the System must satisfy the following conditions:

a) Registering for connection with the System for grant of an account and information for connection. When there is any change or cancellation of the validity of registration information, organizations or individuals must promptly notify to the customs office. The registration, change or cancellation of registration information shall comply with guidelines provided in Appendix I to this Circular.

b) Being fully equipped with technical infrastructure in electronic transaction, ensuring the transmission, receipt, storage of information when accessing and exchanging information with the System; using electronic customs declaration software provided by the customs office (if any) or electronic customs declaration software inspected and certified as conformity with professional requirements of customs office and compatible with the System by the General Department of Customs. The General Department of Customs shall issue Decisions recognizing electronic customs declaration software and post it on e-portals of customs sectors.

Article 7. Dossier for pre-determination of HS codes, origin and customs value

1. A dossier for pre-determination of HS codes must comprise:

a) The written request for pre-determination, made according to Form No. 01/XDTMS/TXNK provided in Appendix VI to this Circular: 01 original;

b) Samples of goods expected to be exported or imported.

In case there are no samples, the organization or individual must provide technical documents (such as composition analysis, catalogue, goods pictures), detailed description of the composition, characteristics, structure, functions, and operation methods of goods: 01 original.

2. A dossier for pre-determination of origin must comprise:

a) A written request for pre-determination, made according to Form No. 01/XDTXX/GSQL provided in Appendix V to this Circular: 01 original;

b) A list of raw materials used for manufacture of goods, including the following information: names, codes of goods, origins of raw materials, CIF prices or equivalent prices of raw materials provided by the manufacturer or exporter: 01 original;

c) A description of the entire manufacturing process or Certificate of analysis provided by the manufacturer: 01 photocopy;

d) The catalogue or pictures of goods: 01 photocopy.

3. A dossier for pre-determination of customs value must comprise:

a) A written request, made according to form No. 02/XDTTG/TXNK provided in Appendix VI to this Circular: 01 original;

b) A goods purchase contract directly performed by the organization or individual (if any): 01 photocopy;

c) Technical documents, pictures, or catalogue of goods: 01 photocopy;

d) Vouchers and documents relating to the transaction proposed for pre-determination (if any): 01 photocopy;

dd) Relevant documents in case the invoice value must be converted to actual selling prices at the border-gate of exportation: 01 photocopy.

If there are no actual transactions yet, the organization or individual that does not have the documents specified at Points b, d, dd of this Clause shall request the customs office to provide guidance on principles and conditions for applying the method of determining the customs value.

4. A dossier for pre-determination of prices must comprise:

a) A written request made according to Form No. 02/XDTTG/TXNK provided in Appendix VI to this Circular: 01 original;

b) A purchase contract or documents of equivalent value to contracts directly performed by an organization or individual: 01 photocopy;

c) Payment document via bank: 01 photocopy;

d) The bill of lading or transport documents of equivalent value in accordance with law provisions (except for goods imported through a land border-gate, goods traded between a non-tariff zone and the domestic market): 01 photocopy;

dd) Technical documents, pictures, or catalogue of goods: 01 photocopy;

e) Documents and vouchers related to the transaction requested for price determination (if any): 01 photocopy.

If the customs declarant fails to have the documents specified at Points b, c, d of this Clause, he/she shall request the customs office to provide guidance on principles and conditions for applying the method of determining customs value.

Chapter II

CUSTOMS PROCEDURES; CUSTOMS INSPECTION AND SUPERVISION; IMPORT AND EXPORT DUTIES, AND TAX ADMINISTRATION OF EXPORTED GOODS AND IMPORTED GOODS

Section 1. RISK MANAGEMENT IN CUSTOMS INSPECTION AND SUPERVISION

Article 8. Assessment of law compliance by exporting and importing enterprises

1. Customs offices shall assess and classify the customs and tax law compliance by importing and exporting enterprises, including:

a) Priority enterprises;

b) Compliance enterprises;

c) Noncompliance enterprises;

2. Criteria for assessment of law compliance by enterprises shall be based on the Information criteria system specified in Clause 1 Article 14 of the Government's Decree No. 08/2015/ND-CP dated January 21, 2015.

3. Customs offices shall provide information relating to the assessment of law compliance specified in Clause 2 of this Article; assist enterprises to improve their capacity of law compliance.

Article 9. Applying measures of goods inspection during the process of goods loading and unloading, storing at warehouses, depots, ports, or border-gate areas

1. The physical inspection of exported goods or imported goods during the process of goods loading and unloading, storing at warehouses, depots, ports, or border-gate areas shall be decided based on the application of risk management under the following criteria:

a) The goods owner, deliverer, consignee, and relevant subjects;

b) Characteristics and nature of goods; transport route, vehicles used for transport, and relevant factors of exported goods or imported goods;

c) Randomly select up to 01% of the total of exported goods or imported goods that are gathered, loaded, unloaded at the border-gate area.

2. Based on the criteria specified in Clause 1 of this Article, the Director General of Customs shall decide the inspection of goods using container scanners or other devices via the System. Directors of Customs Branches managing the warehouses, depots, ports, or border-gates shall carry out the inspections.

Article 10. Applying the measure of customs inspection during the process of carrying out customs procedures for exported goods or imported goods

1. General principles:

a) The determination of goods subject to physical inspection shall depend on risk management via classification of the System: the Director of Customs Branch shall decide the inspection according to the classification notification of the System and carry out random inspections to assess the declarants’ compliance according to regulations and guidance of the Director General of Customs, thereby carry out physical inspection of goods under Article 29 of this Circular.

b) Inspection of goods subject to specialized management shall comply with specialized laws; in case of showing the sign of violations of the customs law, the whole shipment shall be subject to physical inspection.

2. The customs inspection of exported, imported, transited goods of priority enterprises shall follow separate The Ministry of Finance’s Circular.

3. Customs inspection of exported, imported, and transited goods of compliance enterprises shall be carried out as follows:

a) Direct examination of dossiers in the following cases:

a.1) Showing signs of violations against regulations of Customs Law;

a.2) Selecting no more than 5% of goods on the total customs declarations of imported or exported goods on the basis of risk analysis and assessment;

a.3) Direct inspection of dossiers must be carried out as prescribed by specialized laws.

b) Physical inspection of goods in the following cases:

b.1) Showing signs of violations of customs laws;

b.2) Selecting not more than 1% of goods on the total of customs declarations of imported or exported goods on the basis of risk analysis and assessment;

b.3) Physical inspection of goods must be carried out as prescribed by specialized laws.

c) Customs office shall assess the enterprises’ compliance as specified in Clause 2 Article 11 of this Circular.

4. Customs inspection of exported, imported, and transited goods of noncompliance enterprises shall be carried out as follows:

a) Direct inspection of dossiers in the following cases:

a.1) Showing signs of violations against regulations of Customs Law;

a.2) Goods subject to direct inspection as prescribed by specialized laws;

a.3) Selecting to directly inspect not more than 50% dossiers on the total customs declarations of exported or imported goods on the basis of risk analysis and assessment.

b) Physical inspection of goods in the following cases:

b.1) The cases specified at Points b.1 and b.3 Clause 3 of this Article;

b.2) Selecting to physically inspect not more than 20% of total amount of goods on the total customs declaration of exported or imported goods on the basis of risk analysis and assessment.

Article 11. Applying risk management in post-customs clearance inspection

1. Post-customs clearance inspection based on risk management specified in Clauses 1 and 2 Article 78 of the Customs Law is carried out according to the following criteria:

a) The customs declarant shows signs of violating regulations on customs or tax in export and import activities;

b) The customs declarant shows signs of risk in complying with customs laws and tax laws in export and import activities;

c) The customs declarant exported goods or imported goods on the list of risk goods without inspection while carrying out customs procedures.

2. Not more than 5% of the total compliance enterprises shall be subject to inspection of law compliance as specified in Clause 3 Article 78 of the Customs Law, based on the following criteria:

a) Level of compliance, scale, business lines, type of business, and operating duration of the exporting or importing enterprise;

b) Frequency and time of inspections while carrying out the customs procedures, post-customs clearance inspection, customs inspection of exporting and importing enterprises;

c) Policies on goods management and tax applicable to exported goods or imported goods;

d) Characteristics, origins of exported goods or imported goods;

d) Other factors related to export and import activities.

Article 12. Applying risk management in customs supervision of exported, imported, and transited goods

1. Customs supervision method applicable to imported, exported or transited goods shall be selected according to the following criteria:

a) Goods management and tax policies applicable to exported, imported, and transited goods;

b) Business lines, type of business, operating duration, routes, locality, vehicles and storage of exported, imported, and transited goods;

c) Characteristics, origins, frequency, and level of violations related to exported, imported, and transit goods;

d) Other regulations relating to the management of exported, imported, and transit goods.

2. The selection of key subjects for customs supervision is based on the criteria in Clause 1 of this Article and the level of compliance of goods owners, carriers and other relevant subjects.

Article 13. Applying risk management to luggage of persons on entry, exit, and transit

Key subjects of inspection shall be selected according to the following criteria:

1. Frequency and seriousness of violations committed by the persons on entry, exit, and transit.

2. The background, history of entry, exit, transit, locations, time, routes, vehicles, tickets, personal papers, and other factors relating to the entry, export, or transit.

3. Gestures, actions, words, attitude, and psychological manifestation during the process of entry, exit, or transit.

4. Characteristics of packaging, weight, value, location, time, route, vehicles, and other factors related to the transport of the luggage of persons on entry, exit, or transit.

Article 14. Risk management applicable to enterprises that are dissolved, bankrupt, shut down, suspended, missing, or enterprises having enterprise registration certificates revoked

1. The customs office shall not accept the registration of customs declarations of exported, imported, and transit goods of enterprises that have been dissolved, bankrupt, shut down, suspended, missing, or enterprises having enterprise registration certificates revoked as certified by the tax office, unless otherwise prescribed by law.

If an enterprise has been suspended or missing as certified by the tax office, it is required to have the tax office’s certification that the enterprise has registered for resumption of operation and fully complied with regulations of the tax and accounting laws in order to have the registration of customs declarations accepted.

2. The General Department of Customs shall cooperate with General Department of Taxation in collecting information, making and managing lists of enterprises that are dissolved, bankrupt, shut down, suspended, missing, or having enterprise registration certificates revoked to serve risk management prescribed in this Article.

Article 15. Responsibilities of the Director General of Customs in implementation of application of risk management

The Director General of Customs shall be responsible for promulgating and organizing the uniform implementation of:

1. Indexes under the criteria specified in Clause 2 Article 8, Article 9, Article 10, Article 11, Clause 1 Article 12, Article 13, and Article 14 of this Circular, and other regulations and decentralized the Ministry of Finance’s guidance in order to satisfy requirements of customs management and tax administration.

2. Risk management measures and techniques in customs operation.

3. Process, regulations and guidelines for application of risk management in customs operation.

Section 2. CUSTOMS DECLARATION

Article 16. Customs dossiers

1. A customs dossier of exported goods must comprise:

a) A declaration of exported goods with information specified in Appendix II to this Circular.

In case of making paper declaration in accordance with Clause 2 Article 25 of Decree No. 08/2015/ND-CP, the customs declarant shall make and submit 02 originals of the declaration of exported goods according to form HQ/2015/XK provided in Appendix IV to this Circular;

b) Export license for goods requiring export licenses: 01 original in case of single shipment, or 01 photocopy attached to a reconciliation monitoring sheet in case of partial shipments;

c) An inspection exemption notice or inspection result issued by a specialized agency in accordance with law provisions: 01 original.

In case of applying the single-window mechanism to the documents specified at Points b and c of this Clause, the specialized state management agency shall send the export license, the inspection result notice or inspection exemption notice in electronic form to the Vietnam National Single Window. The customs declarant is not required to submit such documents when carrying out customs procedures.

2. A customs dossier of imported goods must comprise:

a) A declaration of imported goods containing the information specified in Appendix II to this Circular.

In case of making paper declarations in accordance with Clause 2 Article 25 of Decree No. 08/2015/ND-CP, the customs declarant shall make and submit 02 originals of the declaration of imported goods according to HQ/2015/NK in Appendix IV to this Circular;

b) Commercial invoices in case the buyer has to pay the seller: 01 photocopy.

If the goods owner buys goods from a seller in Vietnam and is instructed by the seller to receive goods from other countries, the customs office shall accept the invoice issued by the seller in Vietnam to the goods owner.

The customs declarant is not required to submit the commercial invoice in the following cases:

b.1) The customs declarant is a priority enterprise;

b.2) In case goods are imported to execute a processing contract with a foreign trader, the customs declarant shall declare the provisional price in box “customs value” on the customs declaration;

b.3) In case goods are imported without invoices and the buyer is not required to pay the seller, the customs declarant shall declare the customs value in accordance with the Ministry of Finance’s guidance on determination of customs value.

c) The bill of lading or transport documents of equivalent value if goods are transported by sea, air, railroad, or multi-modal transport in accordance with law provisions (unless goods are imported through a land border-gate, goods traded between a non-tariff zone and the domestic market, imported goods carried in the luggage of the person on entry): 01 photocopy;

Regarding imported goods in service of oil and gas exploration and extraction transported on service ships (other than commercial ships), the cargo manifest shall be submitted instead of the bill of lading;

d) Import license in case of requiring import licenses; import license under tariff-rate quota: 01 original in case of single shipment, or 01 photocopy attached to the reconciliation monitoring sheet in case of partial shipments;

dd) An inspection exemption notice or inspection result issued by a specialized inspection agency in accordance with law provisions: 01 original.

For documents specified at Points d and dd of this Clause, in case where the single window mechanism is applied, the specialized state management agency shall send the import license, the inspection result notice or specialized inspection exemption notice in electronic form to the Vietnam National Single Window. The customs declarant is not required to submit such documents when carrying out customs procedures.

e) Value declaration: the customs declarant shall make the value declaration according to the prescribed form and send the electronic form to the System or submit 02 originals to the customs office (in case of paper declaration). The cases in which the value declaration is required and the value declaration form are provided in the Ministry of Finance’s Circular on customs valuation of exported goods and imported goods;

g) Documents certifying origins of goods (Certificate of origin or self-certification of origin): 01 original or electronic copy in the following cases:

g.1) Goods originating in a country or group of countries that enter agreements in application of preferential tariff with Vietnam under Vietnamese law and treaties to which Vietnam is the contracting party, if the importer wishes to enjoy such preferential treatment;

g.2) Goods that are notified by Vietnam or international organizations are at a time when there is a risk of harming social safety, community health or environmental sanitation that needs to be controlled;

g.3) Goods imported from countries subject to Vietnam's notification that they are in the period of application of anti-dumping tax, anti-subsidy tax, anti-discrimination tax, self-defense tax, tax rates applied under tariff-rate quota;

g.4) Imported goods must comply with regulations on import management of Vietnamese law or the treaties to which Vietnam is the contracting party.

In case an agreement on application of preferential tariff with Vietnam or a treaty to which Vietnam is a contracting party requires the submission of the electronic C/Os or self-certificates of origin of the manufacturer/exporter/importer, the customs office shall accept such documents.

3. Customs dossiers of exported goods or imported goods that are exempted from export or import duty:

a) If goods are exempted from export duty, in addition to the documents specified in Clause 1 of this Article, the customs declarant shall submit 01 photocopy and present the original of the list of duty-free goods together with the reconciliation monitoring sheet registered with the customs office (if registration is required as specified in Clause 1 Article 104 of this Circular).

If the list of duty-free goods is registered on the System, the customs declarant is not required to submit the list and the reconciliation monitoring sheet. However, the information specified in Appendix II to this Circular must be fully declared;

b) If goods are exempted from import duty as specified in Article 103 of this Circular, the customs declarant shall submit or present the following documents in addition to the documents specified in Clause 2 of this Article:

b.1) The list of duty-free goods attached to the reconciliation monitoring sheet registered with the customs office (if registration is required as specified in Clause 1 Article 104 of this Circular): submit 01 photocopy and present the original for comparison.

If the list of duty-free imported goods is registered on the System, the customs declarant is not required to submit the list and the reconciliation monitoring sheet. However, the information specified in Appendix II to this Circular must be fully declared;

b.2) Documents about transfer of goods eligible for tax exemption in case the goods of the subject eligible for tax exemption are transferred to another entity who is also eligible for tax exemption: submit 01 photocopy.

4. Customs dossiers of exported goods and imported goods not liable to duty:

If exported goods and imported goods are not liable to duty, the customs declarant shall submit or present the following documents in addition to the documents specified in Clause 1 and Clause 2 of this Article:

a) A declaration of non-refundable aid of a finance agency as prescribed by the Ministry of Finance (if non-refundable aid is goods that are not subject to import duty, excise tax, and value-added tax): submit 01 original.

If the investor or main contractor of a non-refundable ODA project with a exports or imports goods that are not subject to import and export duties, value-added tax, excise tax as prescribed by regulations of tax law, it is required to have the goods supply contract which specifies the successful bids or prices for goods supply exclusive of import duty, value-added tax, and excise tax (if the successful bidder is an individual or institutional importer); or the import entrustment contract which specifies the prices for goods supply exclusive of import duty, value-added tax, excise tax (in case of import entrustment): submit 01 photocopy;

b) The sale contract or goods supply contract which specifies the successful bids or prices for goods supply exclusive of import duty, excise tax, value-added tax on goods that are not subject to import duty, excise tax, and value-added tax (if any): submit 01 photocopy and present the original upon the first import at the Customs Branch where import procedures are carried out for comparison;

c) The contract to sell goods to export-processing enterprises (EPEs) according to the bidding result or the goods supply contract which specifies the successful bids or prices for goods supply exclusive of import duty, excise tax, value-added tax on goods that are not subject to import duty, excise tax, and value-added tax (if any) imported by contractors to serve the construction of workshops and office buildings of the EPEs;

d) Regarding goods not subject to value-added tax that are machinery, equipment, supplies that cannot be domestically manufactured and need to be imported to serve scientific research, technological development; machinery, equipment, spare parts, specialized vehicles, and supplies that cannot be manufactured in Vietnam and need to be imported to serve oil and gas exploration and development; airplanes, oil rigs, vessels that cannot be domestically manufactured and need to be imported as fixed assets of enterprises or leased from foreign parties to use for manufacturing, trading, or for lease, the following documents must be provided:

d.1) The contract to sell goods to enterprises according to the bidding result or the goods supply contract or service contract (specifying that the amount payable are exclusive of value-added tax) if goods not subject to value-added tax are imported by the successful bidder, selected contractor (through direct contracting) or service provider: submit 01 photocopy, present the original upon the first import at the Customs Branch where import procedures are carried out for comparison;

d.2) The import entrustment contract which specifies that the prices under the entrustment contract are exclusive of value-added tax (in case of import entrustment): submit 01 photocopy;

d.3) Documents issued by competent agencies to assign various organizations to execute research and development programs, projects or contracts: submit 01 original.

d.4) Contracts with foreign parties for lease of airplanes, oil rigs, vessels that cannot be domestically manufactured and are used for manufacturing, trading, or for lease: submit 01 photocopy.

dd) The certification that goods are imported to directly serve national defense by the Ministry of National Defence or security purposes by the Ministry of Public Security (for goods being weapons and equipment directly serving national defense and security and not subject to value-added tax): submit 01 original.

5. In order to apply 5% tax to equipment and instruments serving teaching, research, and scientific experiments, the customs declarant must submit the contract to sell goods to schools, research institutes, or the goods supply contract or service contract: submit 01 photocopy, present the original upon the first import at the Customs Branch where import procedures are carried out for comparison.

Article 17. Checking, sampling goods before making customs declaration

Goods shall be checked before making customs declaration in accordance with Point c Clause 1 Article 18 of the Customs Law; goods shall be sampled in service of customs declaration as follows:

1. After the goods deliverer or keeper (shipping company, airline, railroad company, express mail company, provider of postal services, bonded warehouse owner, etc.) accepts, the goods owner shall notify the Customs Branch where goods are kept and the port and warehouse operation enterprise to work in cooperation.

2. Before checking goods, the Customs Branch shall prepare a certification record confirmed by the goods owner. The certification record shall be made into 02 copies, each of which is kept by a party.

3. Where the customs declarant wishes to take samples to serve customs declaration, Article 31 of this Circular shall prevail.

4. After checking goods and taking samples, the customs officer shall seal the shipment. If goods cannot be sealed, the certification record specified in Clause 2 of this Article must reflects the condition of goods and specify the goods keeper shall be responsible for preserving the status quo of goods. When making customs declaration, the goods owner must write the result of checking and sampling on the customs declaration.

Article 18. Customs declaration

1. Customs declaration principles

a) The customs declarant must provide sufficient information on the customs declaration in accordance with Appendix II to this Circular. In case of paper declaration, guidance in Appendix IV to this Circular shall be complied with;

b) Goods that are exported, imported in different manner shall be enumerated on separate declarations according to their corresponding methods;

c) A customs declaration shall be used for a shipment with one invoice. In case of declaring a shipment with multiple invoices on the same customs declaration as specified in Clause 7 Article 25 of Decree No. 08/2015/ND-CP, the customs declarant must make a list of commercial invoices for exported goods or imported goods according to form No. 02/BKHD/GSQL provided in Appendix V to this Circular and send it together with the customs declaration to the System.

In case of paper declaration, the customs declarant must specify the numbers, dates of invoices, and total quantity of goods on the customs declaration. If all invoices cannot be declared on the customs declaration, a detailed list shall be compiled and attached to the customs declaration.

d) When declaring exported goods or imported goods that are eligible for tax exemption or not liable to duty, information about the tax exemption must be declared in accordance with Appendix II to this Circular.

dd) If exported goods or imported goods are eligible for tax reduction, the tax rate before reduction, and the rate of reduction, and the document regulating this reduction must be specified on the paper customs declaration;

e) If exported goods or imported goods are sea, river, air, railroad vehicles, the declaration and export procedures must be completed before initiate exit procedures unless goods are sold after the vehicle has exited; declaration and import procedures must be completed before initiate entry procedures. If the imported goods are road vehicles or other kinds of vehicles are transported by another vehicle through the border-gate, it is only required to make declaration and carry out export or import procedures, not entry or exit procedures;

g) The customs declarant may use the assessment or analysis results of functional organizations as prescribed by law to declare information related to the names, codes, quality, categories, quantity of goods, and other information about the shipment.

The customs declarant may use the result of analysis and classification of the previously cleared shipment to declare the names, codes of next shipments that have the same names of goods, composition, physical and chemical properties, functions, and are imported from the same manufacturers within 03 years from the date the result of analysis and classification is given, unless the the law used as basis for giving the analysis; classification of exported goods or imported goods are amended, supplemented or replaced.

h) In case of paper declaration of temporary import or export of goods, re-exported or re-imported goods must also be declared on a paper declaration.

2. A customs declaration must comprise up to 50 lines of goods. If he/she declares more than 50 lines, multiple customs declarations shall be used. If a shipment must comprise multiple types of goods serving manufacturing, inward processing, or manufacturing of domestic exported goods, the customs declarant may group the goods with the same codes (Appendix II of this Circular), origins, or tax rates.

When grouping HS codes on the customs declaration, the invoice value, dutiable values, quantity of lines of grouped HS codes is the total invoice value, dutiable values, and quantity of group lines; invoices of lines of grouped HS codes shall not be declared.

3. If the amount of tax on a type of goods exceeds the number of digits on the declaration, the customs declarant may divide the goods into more lines on the customs declaration. In case of unable to divide into many lines, the paper customs declaration shall be used.

If the total amount of tax on a type of goods exceeds the number of digits of on the declaration, the customs declarant may use more than one customs declaration.

4. If a shipment must be declared on multiple declarations or imported goods serve multiple purposes, have the same bill of lading and invoice, declared on multiple invoices by purpose at the same Customs Branch, the customs declarant shall only submit 01 customs dossier (if paper documents are submitted) and write “in the same set with declaration No. …. Dated …..” on the next declarations.

In the cases specified in Clauses 2, 3, and 4 of this Article, the customs declarant shall submit, present, keep one customs dossier that contains customs declarations of the same shipment.

5. The customs declarant shall round up the number if the quantity of goods has more than two digits after the decimal points, the invoice value has more than 04 digits after the decimal points, or invoice unit price has more than 06 digits after the decimal points. The practical quantity, value of invoices and cost prices of invoices shall be declared at item “Goods description”.

6. Provision of advance information about exported goods and imported goods:

a) The customs declarant must provide advance information about exported goods or imported goods according to Point 2 of Appendix II to this Circular;

b) Advance information is effective and kept on the System for up to 07 days from the time of registration or last adjustment;

c) If advance information is accepted, the System will provide the customs declaration number. If not, the System will provide explanation and necessary adjustment or addition;

d) The customs declarant may adjust, supplement information declared on the System.

7. After declaring advance information about exported goods or imported goods, the customs declarant shall use the information given by the System to make the official customs declaration.

If the System notifies that the customs declarant is ineligible to register the customs declaration, the customs declarant shall contact the Customs Branch where the declaration is registered and send documents proving the normal operation of the customs declarant’s enterprise, which are issued by a competent agency.

The customs declarant shall check information given by the System and take legal responsibility for the use of such information to carry out customs procedures.

8. Deadlines for submitting the customs declaration

a) The customs declaration of exported goods or imported goods shall be submitted after goods are gathered at the location informed by the customs declarant and at least 04 hours before the departure of the vehicles. Regarding exported goods sent by express mail, the declaration must be submitted at least 02 hours before the departure of the vehicles;

b) Regarding imported goods, the customs declaration must be submitted before goods arrive at the border-gate or within 30 days from the date the goods arrive at the border-gate.

If the vehicles make electronic customs declarations, the date of arrival of goods at the border-gate is the date of arrival of the vehicles at the border-gate as notified by the shipping company on the System.

In case the vehicles carry out manual customs procedures for entry, the date of arrival of goods at the border-gate is the date the customs office appends the seal on the declaration of imported goods at the port of discharge which is attached to documents about the vehicles (by sea, by air, or by rail) or the date written on the declaration of vehicles crossing the border-gate or the logbook of vehicles (by river or by road)

Article 19. Registration of customs declarations

1. Location of customs declaration registration

a) The customs declaration of exported goods shall be registered at the Customs Branch of the place where the headquarter or manufacturing facility of the enterprise is located, or the Customs Branch of the place where exported goods are gathered, or the Customs Branch of the border-gate of exportation;

b) The declaration of imported goods shall be registered at the Customs Branch at the border-gate in charge of the goods storage place or port of destination written on the bill of lading, transport contract, or the Customs Branch outside the border-gate area of the place where the enterprise’s headquarter is located or the place to which goods is delivered;

c) Declarations of exported goods or imported goods for certain purposes shall be registered at corresponding locations specified in Decree No. 08/2015/ND-CP and this Circular.

2. Checking conditions for customs declaration registration.

Information on the customs declaration shall be automatically checked by the System to make sure conditions for customs declaration registration are satisfied. Conditions include:

a) Conditions for implementation of coercive measures and deadlines for tax payment, except for the following cases:

a.1) Exported goods are eligible for tax exemption or not liable to duty or eligible for the tax rate of 0%;

a.2) Goods are certified serving national defense and security by the Ministry of Public Security and the Ministry of National Defence, eligible for conditional exemption of import duty and not subject to value-added tax;

a.3) Goods certified in service of disaster control, prevention of epidemics, emergency assistance by relevant Ministries and competent agencies; humanitarian aid, non-refundable aid.

b) The cases specified in Clause 1 Article 14 of this Circular;

c) Adequacy and conformity of information on the customs declaration;

d) Information about policies on goods management and tax applicable to exported goods or imported goods on the customs declaration.

In case of paper declaration, the customs officer shall check the conditions for registration of customs declaration as prescribed in this Clause and documents attached to the customs dossier.

3. Pursuant to the decision on customs inspection automatically notified by the System, the customs officer shall:

a) Accept information on the customs declaration and customs clearance decision; carry out customs clearance procedures specified in Article 34 of this Circular;

b) Examine relevant documents attached to the customs dossier submitted or presented by the customs declarant, or relevant documents on the Vietnam National Single Window to decide whether to grant customs clearance of goods; or carry out physical inspection of goods to decide whether to grant customs clearance.

The Director General of Customs shall provide specific guidance on classifying customs declarations and use of classification result in the course of customs inspection.

4. In case of paper declaration, the customs declarant shall submit or present the customs dossier when registering the customs declaration.

Article 20. Additional declaration of customs dossiers

1. Cases of additional declaration:

a) The customs declarant may make additional declaration of the customs dossier after the System classifies the declaration, provided that it is complete before the customs office directly examines the customs dossier;

b) If the customs declarant or taxpayer finds errors in customs declaration before the customs office shall decide to carry out a post-customs clearance inspection, the customs dossier may be additionally declared within 60 days from the customs clearance date;

c) If the customs declarant or taxpayer finds errors in customs declaration after the customs office examines the customs dossier or carries out physical inspection of goods and prior to the time of customs clearance, such declarant or taxpayer shall make additional declaration and shall be handled in accordance with regulations of tax law and the law on handling of administrative violations;

d) If the customs declarant of taxpayer finds errors in customs declaration after 60 days from the customs clearance date or after the customs office carries out a post-customs clearance inspection, such declarant or tax payer shall make additional declaration and shall be handled in accordance with regulations of tax law and the law on handling of administrative violations;

dd) The customs declarant shall make additional declaration at the request of the customs office during examination of the customs dossier or physical inspection of goods, and shall be handled in accordance with regulations of tax law and the law on handling of administrative violations.

Additional declaration specified at Points b and d of this Clause shall only be made if exported goods and imported goods are not on the List of exported goods and imported goods under the management of a specialized management agency, List of exported goods and imported goods under licenses, List of goods banned from export and/or import, List of goods banned from export and/or import.

2. Contents of additional declaration:

a) Additional declaration of information on electronic customs declarations, except for the information that must not be adjusted in accordance with Point 3 of Appendix II to this Circular. Regarding the information of which additional declaration is not supported by the System, additional declaration shall be made in accordance with Point 4 Appendix II to this Circular;

b) In case of paper declaration, the customs declarant may make additional declaration of information on the customs declaration, except for the information that must not be adjusted in accordance with Point 3 of Appendix II to this Circular.

3. Procedures for making additional declaration of the customs dossier

a) Responsibilities of the customs declarant:

a.1) In case of additional declaration of the customs declaration specified at Points a and dd Clause 1 of this Article, the customs declarant shall declare additional information on the System and submit relevant documents via the System or directly in paper (01 photocopy).

Regarding information of which additional declaration is not supported by the System as specified at Point 4 of Appendix II to this Circular, the customs declarant shall submit 02 originals of the request for additional declaration (according to form No. 03/KBS/GSQL in Appendix V to this Circular) and 01 photocopy of documents about the additional declaration.

In the course of inspection of documents or physical inspection of goods, if the customs office finds that contents of the customs declaration and customs dossier are inconsistent, the customs declarant must make an additional declaration within 05 days from the date the customs office’s request is received and incur administrative penalties in accordance with law provisions;

a.2) In the cases of additional declaration of the customs dossier specified at Point b. Point c, and Point d Clause 1 of this Article:

a.2.1) Regarding information of which additional declaration after customs clearance is supported by the System as specified at Point 5 of Appendix II to this Circular, the customs declarant shall make additional declaration on the System and submit relevant documents via the System or directly in paper (01 photocopy);

a.2.2) Regarding other information, the customs declarant shall submit the request for additional declaration (according to form No. 03/KBS/GSQL in Appendix V to this Circular) and 01 photocopy of documents about the additional declaration.

a.3) If goods are not granted customs clearance because of change of the port of loading, border-gate of exportation, or vehicles, the customs declarant shall make additional declaration as instructed in this Article. If the change of the port or loading, border-gate of exportation, or vehicles leads to changes of the transport modal, the customs declaration must be cancelled as specified in Article 22 of this Circular;

a.4) Regarding exported goods that are granted customs clearance and brought into the customs-controlled area at the border-gate, if the port of loading, border-gate of exportation, or vehicles is changed, the customs declarant shall submit a written notice of such change (by fax, email, etc.) to the customs office at the border-gate where goods are gathered to serve supervision of goods loaded onto the vehicles. If goods are exported through other locations permitted by a competent agency in accordance with law provisions, a written notice of the change of the border-gate of exportation shall be submitted to the customs office. Within 03 days after goods are brought into the customs-controlled area, the customs declarant shall make and send a written request for adjustment (according to form No 03/KBS/GSQL in Appendix V to this Circular) to the Customs Branch where the declaration is registered in order to update the change on the System.

Regarding exported goods that are granted customs clearance but are yet to be brought into the customs-controlled area at the border-gate, if the port of loading or border-gate of exportation is changed within the same province, the customs declarant shall submit a written notice of such change to the customs office at the border-gate of exportation serve supervision of goods. Within 03 days from the date the goods are brought into the customs-controlled area, the customs declarant shall make and send a written request for adjustment to the Customs Branch where the declaration is registered in order to update the change on the System.

Regarding exported goods that are granted customs clearance but are yet to be brought into the customs-controlled area at the border-gate, if the change of the port of loading or border-gate of exportation leads to the change of the Customs Department in charge of the port of loading or border-gate of exportation, the customs declarant shall submit a written notice of the change of the port of loading or border-gate of exportation to the customs office where the declaration is registered in order to change the customs-controlled area and update the change on the System;

a.5) If container numbers are not available or container numbers are changed when carrying out customs procedures for exporting goods, the customs declarant shall submit a list of container numbers (according to form No. 31/BKCT/GSQL provided in Appendix V to this Circular) to the customs officer in charge at the border-gate of exportation. The customs officer shall check and update the container numbers on the System in order to print the list of containers.

Regarding imported goods passing through customs-controlled area, if the container numbers are inconsistent with the numbers on the customs declaration, the customs declarant shall present the delivery note the customs office at the border-gate of importation. The customs officer shall check and update the container numbers on the System in order to print the list of containers.

The customs declarant shall make additional declaration within 03 days from the date the goods are brought into the customs-controlled area;

a.6) In case of paper declaration, the customs declarant shall make a written request for additional declaration (according to form No. 03/KBS/GSQL in Appendix V): submit 02 originals and documents proving the additional declaration.

b) Responsibilities of the customs office:

b.1) Receive additional declarations;

b.2) Inspect the adequacy and accuracy of the additional declaration, notify the customs declarant of the inspection result;

b.3) Retain documents submitted by the customs declarant;

b.4) Issue decisions on imposition of tax and sanctions for administrative violations (if any) in accordance with law provisions;

b.5) Notify result of inspection of additional declaration by the following deadline:

b.5.1) 02 working hours after receiving sufficient information or documents (if any) in the case specified at Points a and b Clause 1 of this Article;

b.5.2) 08 working hours after receiving sufficient information or documents (if any) in the case specified at Point cs and d Clause 1 of this Article.

b.6) Update additionally declared information on the System if the customs office accepts the additional declaration of the information of which additional declaration is not supported by the System;

b.7) If the customs declarant fails to comply with the customs office’s request for additional declaration given in the course of inspection of documents or physical inspection of goods within 05 days after receiving such request, the customs office shall:

b.7.1) Issue a decision on imposition of tax and sanctions for administrative violations relating to customs if the additional declaration affects the amount of tax payable and there is sufficient ground to determine that the declaration made by the customs declarant is not conformable (except for the case specified at Point b.7.2 of this Clause);

b.7.2) Grant customs clearance as declared and carry out an inspection afterwards as prescribed if there are there is sufficient ground for rejecting the declared value specified at Point a Clause 2 Article 25 of this Circular;

b.7.3) Return documents to the customs declarant and provide explanation is writing if the amount of tax payable is not affected.

b.8) In case of paper declaration, in addition to the tasks specified at Point b of this Clause, the customs officer must specify the time and date of receiving the additional declaration; check the adequacy and accuracy of the additional declaration, specify the inspection result on the additional declaration, and give 01 copy of the additional declaration to the customs declarant.

Article 21. Declaration of repurposed goods or goods sold domestically instead of being re-exported

1. Principles:

a) Exported goods or imported goods that are sold domestically instead of being re-exported or repurposed must comply with Clause 5 Article 25 of Decree No. 08/2015/ND-CP;

b) Goods that have undergone export or import procedures may only be repurposed or sold domestically instead of being re-exported after the customs declarant completes customs procedures of the customs declaration;

c) If license for export or import is required during export or import procedures, the domestic sale or repurposing of goods must be approved in writing by the licensing agency;

d) The taxpayer must fully declare, pay taxes and fines (if any) when goods are sold domestically or repurposed.

2. Responsibilities of the customs declarant:

a) Submit a customs dossier that must comprise:

a.1) The customs declaration specified in Article 16 of this Circular;

a.2) A license to repurpose or export or import goods issued by a Ministry or specialized state management agency (if such license is required): 01 original;

a.3) A written agreement with the foreign party to repurpose goods or commercial invoices in case of transfer of ownership of processed goods, leased goods, lent goods of a foreign entity, or contract to sell duty-free goods, goods not liable to duty, goods temporarily imported or temporarily exported: 01 photocopy.

b) Fully declare and pay tax according to the new customs declaration, write the old customs declaration number, the new purpose or domestic sale of goods instead of re-export in “Notes” section of the electronic customs declaration or paper customs declaration.

If goods are re-exported or transferred to the subject that is exempted from tax or not liable to duty, the taxpayer must declare as prescribed and shall not pay tax.

If the customs office or another competent agency finds that goods are repurposed or sold domestically repurposed but the taxpayer fails to voluntarily declare and pay tax, the taxpayer shall incur tax according to the initial customs declaration of imported goods and incur penalties according to applicable regulations. The taxpayer shall be responsible for fully paying tax arrears, late payment interest, and fines (if any) according to the customs office’s decision.

3. Responsibilities of the customs office:

Carry out appropriate customs procedures and adjust tax on the old customs declaration to the quantity of goods being repurposed or sold domestically instead of being re-exported according to the new customs declaration as follows:

a) If taxpayer has not paid tax on the old customs declaration: after tax on the new declaration is paid, the customs office shall issue a Decision to reduce tax on the old declaration;

b) If taxpayer has paid tax on the old customs declaration: the customs office shall issue a Decision to reduce tax on the old declaration, refund and offset tax on the old customs declaration and that on the new declaration is paid (as if overpaid tax). If tax on the old customs declaration is lower than that on the new customs declaration, the taxpayer shall pay the arrears before completing the procedures for selling goods domestically instead of being re-exported. If tax on the old declaration is higher than that on the new declaration, the overpaid amount shall be refunded by the customs office as prescribed. The procedures for offsetting or refund shall comply with Article 132 of this Circular.

The Decision to adjust tax shall be made according to form No. 03/QDDC/TXNK provided in Appendix VI to this Circular.

The time limits for refunding and offsetting tax between the old customs declaration and the new customs declaration shall comply with Clause 3 Article 49 of this Circular. While the customs office is processing tax refund and offsetting, late payment interest shall not be charged.

Article 22. Cancellation of customs declaration

1. Cases in which the customs declaration is cancelled:

a) Exported goods are not brought into the customs-controlled area at the border-gate of exportation or imported goods do not arrive at the border-gate of importation within 15 days from the date the declaration is registered and goods are exempted from physical inspection;

b) The customs declarant fails to present the customs dossier within 15 days from the date the declaration is registered (if the customs dossier is required);

c) The customs declarant fails to present the exported goods or imported goods to be undergo physical inspection to the customs office within 15 days from the date the declaration is registered (if the customs dossier is required);

d) Cases in which the customs declaration is cancelled at the request of the customs declarant:

d.1) The customs declaration has been registered but customs clearance is not granted because of an error of the System;

d.2) There are multiple declarations for the same shipment of exported goods or imported goods (duplicated information);

d.3) Goods on the declaration of exported goods have been brought into the customs-controlled area but are not actually exported;

d.4) The declaration of imported goods has been registered but in fact, goods are not imported or goods have not passed through the customs-controlled area;

d.5) Information that is not permitted to be changed is incorrectly provided as specified at Point 3 of Appendix II to this Circular.

2. Procedures for canceling a declaration

a) Responsibilities of the customs declarant:

The customs declarant that wishes to cancel the declaration shall make and send a written request for cancellation (according to form No.04/HTK/GSQL provided in Appendix V to this Circular) to the Customs Branch where the declaration is registered and submit documents proving that goods are actually not exported or imported in the cases specified at Points d.3 and d.4 Clause 1 of this Article.

Regarding exported goods that have been brought into the customs-controlled area but in fact are not exported, if the taxpayer wishes to cancel the declaration and bring the goods back into the domestic market, the customs declarant must make a commitment that tax on the declared shipment is not refunded or cancelled at any domestic tax office or customs office, and take responsibility for the declared information. If the customs office or tax office finds tax has been refunded, the customs declarant shall be handled in accordance with law provisions;

b) Responsibilities of the customs office:

b.1) For electronic customs declaration:

b.1.1) Within 08 working hours after receiving the request for cancellation from the customs declarant, the customs officer shall verify the reasons, conditions, and information on the request on the System, request the Director of the Customs Branch to consider approving the cancellation, and cancel the declaration on the System, settle tax payable on the canceled declaration, and make an update on the risk management system to evaluate the enterprise’s conformity with law;

b.1.2) Within 10 days from the expiration date of the customs declaration specified at Point a Clause 1 of this Article, if the customs declarant fails to submit a written request for cancellation of the declaration, the customs office shall carry out an inspection. If imported goods do not arrive at the border-gate of importation or exported goods are not brought into the customs-controlled area at the border-gate of exportation, the declaration will be cancelled on the System.

b.1.3) In case of cancellation of the declaration specified at Point b or Point c Clause 1 of this Article, the customs office shall check and cancel the declaration on the System;

b.1.4) If the cancellation of the customs declaration of temporarily imported/export goods affect information for management of quantity of goods temporarily imported/export on the System, the customs office must update information about goods quantity on the System after the customs declaration is cancelled;

b.1.5) The cancellation shall be notified to the Provincial-level Tax Department if the exported goods are domestic goods, or the Customs Branch if exported goods were imported previously (if the Customs Branch where the declaration of exported goods is registered is different from the Customs Branch where the declaration of imported goods is registered) to ensure that tax on the cancelled declaration is not refunded or cancelled.

b.2) In case of paper declaration:

b.2.1) The cancelled declaration shall be crossed out with a pen and bear the official’s signature and seal;

b.2.2) Cancelled customs declarations shall be retained and sorted by registration number.

3. The Directors of Customs Branches where the declarations are registered shall consider the cancellation of customs declarations registered by customs offices

Section 3. DETAILED INSPECTION OF CUSTOMS DOSSIERS, PHYSICAL INSPECTION OF GOODS; TRANSPORT OF GOODS TO STORAGE, RELEASE OF GOODS, CUSTOMS CLEARANCE OF GOODS

Article 23. Inspection principles

1. According to the result of classification of customs declarations on the System, the decision of the Director of the Customs Branch where the declaration is registered or the Customs Branch where physical inspection of goods is carried out, information on the customs declaration, risk management information on the System, the customs officer shall notify the customs declarant via the System of the submission or presentation of one or all documents attached to the customs dossier, and carry out detailed inspection of the customs dossier and physical inspection of goods. In case of physical inspection of goods, the customs officer must write the inspection result on the result note, update on the System in accordance with this Circular and the General Department of Customs’ guidance, decide customs clearance, release, or storage of goods.

2. While the inspection, of customs offenses or tax offenses are suspected, the customs officer shall request the Director of Customs Branch to change the form or level of inspection.

3. In the course of inspection, if analysis by a professional agency is necessary for the inspection, the analysis cost shall be incurred by the customs office.

Article 24. Checking goods names, codes, and tax rates

1. Checking goods names, codes, and tax rates upon inspection of the customs dossier.

a) Inspection contents:

Compare the declared information and accuracy of goods names, codes, and tax rates on the customs declaration with information on documents in the customs dossier;

b) Further actions after inspection result is given:

b.1) If the goods names, codes, and tax rates are clearly and fully declared by the customs declarant, the goods names are consistent with other information on documents in the customs dossier, the customs office shall accept the goods names, codes, and tax rates declared by the customs declarant;

b.2) If there are ample evidence that goods names, codes, and tax rates are not correctly declared, the customs declarant shall be instructed and requested to make additional declaration as specified in Article 20 of this Circular and incur penalties in accordance with law provisions. If the customs declarant fails to make additional declaration, the customs office shall re-determine the codes of goods, tax rates, impose tax and penalties, update the inspection results on the database, and grant customs clearance after the customs declarant has fully paid tax and fines (if any) as prescribed;

b.3) If declared information about goods names, goods descriptions are inconsistent with that on documents attached to the customs dossier and information on the customs declaration but the basis for determining the goods names, codes, and tax rates is insufficient, the customs declarant shall be requested to submit additional technical documents of sale contract or composition analysis sheet.

By examining additional documents, if the customs office has sufficient ground for determining that the goods names, codes, tax rates are incorrectly declared, the customs declarant shall be instructed to make additional declaration as specified at Point b.2 of this Clause. If the customs declarant fails to submit additional documents at the request of the customs office or the customs office does not have sufficient ground for determining the goods names, codes, tax rates by examining the documents, samples shall be taken and analyzed in accordance with the Minister of Finance’s regulations on classification of goods, analysis serving classification of goods, quality inspection, food safety inspection of exported goods or imported goods, or request the Director of the Customs Branch to decide physical inspection of goods according to Clause 2 of this Article.

2. Checking goods names, codes, and tax rates upon physical inspection of goods

a) Inspection contents:

Compare the declared information and accuracy of goods names, codes, and tax rates on the customs declaration with actual goods.

In the course of physical inspection of goods, the customs officer must determine names and codes of goods according to the List of Vietnam’s imported and exported goods and corresponding tax schedules;

b) Handling inspection result:

b.1) If the names and codes of goods on the customs declaration are consistent with actual goods, the tax rates are conformable with applicable tax schedules at the time of inspection, the customs office shall accept the goods names, codes, and tax rates declared by the customs declarant;

b.2) If there are ample evidence that goods names, codes, and tax rates are not correctly declared, the customs declarant shall be instructed and requested to make additional declaration as specified in Article 20 of this Circular and incur penalties in accordance with law provisions. If the customs declarant fails to make additional declaration, the customs office shall re-determine the codes of goods, tax rates, impose tax and fines, update the inspection results on the database, and grant customs clearance after the customs declarant has fully paid tax and fines (if any) as prescribed;

b.3) If names and codes of goods cannot be accurately determined according to the List of Vietnam’s imported and exported goods and corresponding tax schedules, the Customs Branch and the customs declarant shall take samples for analysis in accordance with the Minister of Finance’s regulations on classification of goods, analysis serving classification of goods, quality inspection, food safety inspection of exported goods or imported goods.

3. If the shipment has been granted customs clearance on the basis of the analysis result, the customs office may use such analysis result to carry out customs procedures for next shipments of the same declarant that have goods with the same names, origins, codes, and imported from the same manufacturer (for imported goods).

Article 25. Inspection of customs value

1. The customs office shall inspect the customs value declared by the customs declarant on the customs declaration (hereinafter referred to as “declared value”) to identify the cases in which the declared value is rejected or suspicious:

a) The declared value of exported goods or imported goods shall be rejected in one of the following cases:

a.1) The customs declarant fails to make declaration or declares incorrectly, insufficiently information related to customs value on the declaration of exported goods, imported goods, or the declaration of value (if any);

a.2) Information such as value, delivery terms on the commercial invoice is inconsistent with that on the bill of lading (if any) or transport documents of equivalent value in accordance with law provisions.

b) The declared value of exported goods or imported goods is suspicious but there is insufficient ground for rejecting it, which means the declared value is smaller than that according to pricing database of the General Department of Customs.

2. Handling inspection result:

a) If there is sufficient ground for rejecting the declared value, the customs office shall notify the customs declarant of the basis for rejection and:

a.1) request the customs declarant to make additional declaration within 05 days from the notification date, impose administrative sanctions, and grant customs clearance of goods as prescribed if the customs declarant agrees with the basis for rejecting the declared value.

Additional declaration shall be made in accordance with Clause 3 Article 20 of this Circular;

a.2) grant customs clearance according to the declared value and use the basis for rejecting the declared value for post-customs clearance inspection if the customs declarant does not agree with the basis for rejection or fails to make additional declaration within 05 days from the notification date.

b) If the declared value is suspicious but there is no sufficient ground for rejecting if, the customs office shall notify declarant of the suspicious case via the System or use the form No. 02A/TBNVTG/TXNK provided in Appendix VI hereof (In case of paper declaration), request the customs declarant to provide additional documents related to the method for determination of the declared value as prescribed in the Minister of Finance’s Circular on customs values of exported goods or imported goods (01 photocopy):

b.1) Within 05 days from the notification date, the customs declarant shall submit additional documents and request consultation (with specific time), the customs office shall release goods as specified in Article 33 of this Circular and hold the consultation as specified in Clause 3 of this Article;

b.5) If the customs declarant fails to submit additional documents or does not request a consultation within 05 days from the notification date, the customs office shall grant customs clearance according to the declared value and use the suspicions for post-customs clearance inspection as prescribed.

3. Consultation

a) The power to hold the consultation:

a.1) The Director of the provincial-level Department of Customs shall hold the consultation and take responsibility for the effectiveness of the consultation;

a.2) The Director of the provincial-level Department of Customs may delegate the Director of a Customs Branch to carry out the consultation if appropriate.

b) One-time consultation:

b.1) The customs declarant may request one consultation if the following conditions are satisfied:

b.1.1) The goods are exported under the same sale contract and divided into multiple shipments;

b.1.2) Information serving inspection and determination of customs value remains unchanged;

b.1.3) The customs declarant makes a written request for one-time consultation, committing to use the consultation result for the next export or import.

b.2) The consultation result may be used for the next export or import if the customs value is still consistent with the information serving inspection and determination of customs value after the consultation.

c) Responsibilities:

c.1) The customs office shall:

c.1.1) Hold the consultation at the request of the customs declarant, check the documents submitted by the customs declarant to clarify the suspicions;

c.1.2) Make a consultation record which specifies the full discussion during the consultation; additional documents submitted by the customs declarant; whether or not the customs declarant agrees with the basis for rejection in case the customs office has sufficient ground for rejecting the declared value; and the verdict of the consultation: “Basis for rejecting declared value insufficient” “Basis for rejecting declared value sufficient” (specifying the basis) or “Basis for rejecting declared value sufficient but denied by declarant”.

c.2) The customs declarant shall submit relevant documents related to the method for determination of the declared value according to the Ministry of Finance’s regulations on customs values of exported goods or imported goods; appoint a representative to decide the issues related to determination of taxable values or participate in the entire consultation at appropriate time.

c.3) The consultation record must be signed by all parties.

d) Method of consultation: direct consultation;

dd) Maximum duration of the consultation: 30 days from the registration date of the declaration;

e) Time limit for carrying out the consultation: 05 working days;

b) Processing consultation result:

According to the consultation record and additional documents submitted by the customs declarant, the customs office shall:

g.1) Request the customs declarant to make additional declaration as specified in Article 20 of this Circular within 05 days from the end of the consultation if the customs declarant agrees with the basis for rejecting the declared value in one of the following cases (Nevertheless, additional declaration must be made within 03 days from the date the declaration is registered):

g.1.1) One of the cases specified at Point a Clause 1 of this Article;

g.1.2) The customs declarant incorrectly applies the procedures, conditions, and methods for customs valuation.

g.2) Grant customs clearance according to the declared value and use the basis for rejecting the declared value for post-customs clearance inspection in the following cases:

g.2.1) The customs declarant fails to make additional declaration as specified at Point g.1 of this Clause within 03 days from the end of the consultation or within 30 days from the date the declaration is registered;

g.2.2) The customs declarant does not agree with the basis for rejecting the declared value.

g.3) Grant customs clearance according to the declared value if the basis for rejecting the declared value is insufficient.

Article 26. Inspection, determination of origins of exported goods or imported goods

1. Regarding goods

Origins of exported goods shall be determined according to the declaration made by the customs declarant, documents attached to the customs dossier, and actual goods.

If there is a suspicion that the origins of exported goods are fraudulent or there is a warning of illegal transport, the Customs Branch where the declaration is registered shall request the customs declarant to provide documents proving the origins of exported goods; if the customs declarant fails to do so, an inspection at the facility where goods are manufactured for export shall be carried out (hereinafter referred to as “on-site inspection”). Exported goods shall be granted customs clearance pending the inspection result.

2. Regarding imported goods

a) The customs declarant shall submit documents certifying origins of imported goods to the customs office as specified at Point g Clause 2 Article 16 of this Circular when submitting the customs dossier or by the deadlines prescribed in treaties to which Vietnam is the contracting party.

If such documents are not submitted upon customs declaration, the customs declarant shall declare the preferential rates of import duty applicable to Most Favored Nation (hereinafter referred to as “MFN rates”) or ordinary rates. If additional documents proving goods origins are submitted by the deadline, the customs declarant shall make additional declaration at corresponding preferential rates, and have the overpaid tax refunded; if the shipment is eligible for exemption of document inspection upon customs declaration, the customs declarant shall submit the customs dossier as specified in Clause 2 Article 16 when submitting additional documents proving goods origin.

b) The customs office check goods origins according to documents proving goods origins, the customs dossier, the actual gods, information related the goods, Article 15 of the Government's Decree No. 19/2006/ND-CP dated February 20, 2006, the Ministry of Industry and Trade’s Circular on guidelines for preferential and non-preferential rules of origins, and their guiding documents;

c) The customs office shall accept the documents certifying goods origins if there are minor differences that do not affect their legitimacy and the origins of imported goods, including:

c.1) Grammatical errors or typos;

c.2) Difference in the symbols on the C/O: printed or hand-written, “x” and “√”, mistaken symbols;

c.3) Minor difference between the signature on the C/O and the model signature;

c.4) Difference in measurement units on the C/O and other documents (invoice, bill of lading, etc.);

c.5) Difference in paper size of the C/O submitted and the model C/O;

c.6) Difference in ink color (black or blue) of information on the C/O;

c.7) Minor difference goods description on documents certifying goods origins and other documents;

c.8) Difference between the codes on the C/O and those on the declaration of imported goods which does not change the goods origin.

If the customs declarant submits documents certifying goods origins of the whole shipment but only part of the shipment is imported, the customs office shall accept such documents for the practical amount of imported goods;

d) If the quantity or weight of imported goods exceeds that written on the documents certifying goods origins, the excessive amount shall not be given incentives under the treaties to which Vietnam is the contracting party;

e) The customs declarant must not change the C/O contents without permission, unless the changes are made by the C/O-issuing agency in accordance with law provisions;

g) If information on documents certifying goods origins is not conformable with the customs dossier and regulations on inspection of origins of imported goods, or the signatures, seals on documents certifying goods origins are inconsistent with the specimen signature or seal at the customs office, the customs office shall request the customs declarant to provide explanation and additional documents to prove the goods origins, except for the cases specified at Point c of this Clause. If the explanation and documents are appropriate, the documents certifying goods origins shall be accepted.

In case where there is sufficient ground for the customs office to determine that the documents certifying goods origins are not conformable, MFN rates or ordinary rates shall apply instead of preferential rates.

While customs procedures are being followed, if the legitimacy of documents certifying goods origins is suspicious but the basis for rejection is insufficient, the customs office shall calculate tax at MFN rates or ordinary rates and carry out verification as specified in Clause 3 of this Article.

During post-customs clearance inspection, if the legitimacy of documents certifying goods origins is suspicious but the basis for rejection is insufficient, the customs office shall carry out verification and decide whether to apply preferential rates according to the verification result.

3. Verification of origins of imported goods

a) The General Department of Customs shall verify origins of imported goods with the competent C/O-issuing agency, the entities that certifies good origins themselves, or at the manufacturing facility of goods for export;

b) Time limit for verification

Verification must be done as soon as possible and within 150 days from submission of the customs dossier or from the beginning of the verification, unless otherwise prescribed by the treaties to which Vietnam is the contracting party.

If the competent C/O-issuing agency of the exporting country responses regarding the verification result after the said deadline, the customs office shall make a decision according to the verification result as specified at Point d of this Clause;

c) Verification procedures

The verification shall be carried out in accordance with regulations of the Minister of Industry and Trade on implementation of rules of origins in treaties to which Vietnam is the contracting party:

c.1) The customs office shall send a document (diplomatic note, email, fax, etc.) to the competent C/O-issuing agency or the entity that certifies goods origins themselves;

c.2) If necessary, the customs office shall carry out a verification of goods origins in the exporting country.

d) Processing verification result:

d.1) If the verification result is satisfactory and confirms the legitimacy of documents certifying goods origins:

d.1.1) Within 15 working days from the date the verification result is received, the customs office shall request the customs declarant to make additional declaration at preferential rates of import duty. The additional declaration shall be made in accordance Article 20 of this Circular. No administrative sanctions shall be imposed;

d.1.2) The customs office shall refund the difference between the amount of tax that was temporarily paid at MFN rates or ordinary rates and tax paid at preferential rates to the importer.

d.2) If the verification result is not satisfactory or proves that the documents certifying goods origins are not legitimate, the customs office shall apply MFN rates or ordinary rates and notify the customs declarant.

Article 27. Inspection of implementation of tax policies, inspection of application of notification of pre-determination result

1. Inspect the conditions for implementation of coercive measures or tax payment deadline as prescribed.

2. Inspect the basis for determining goods not liable to duty if the customs declarant declares that goods are not subject to import and export duties, value-added tax, excise tax, or environmental protection tax.

3. Inspect the basis for determining goods eligible for conditional tax exemption or tax reduction if so declared.

4. Inspect the basis for determination of tax payable if exported goods or imported goods are dutiable according to the inspection results as prescribed in Section 3 Chapter II of this Circular.

5. Compare information on the notification of pre-determination result with documents and practical shipment of exported goods or imported goods if goods must undergo document inspection, physical inspection. If the exported goods or imported goods are inconsistent with the notification of pre-determination result, their codes, origins, and customs values shall be verified and the General Department of Customs shall be requested to annul the notification of pre-determination result as specified in Clause 6 Article 24 of Decree No. 08/2015/ND-CP.

Article 28. Inspection of export license, import license, result of inspection by a specialized agency

1. The customs office shall compare information about the export license, import license; inspection result or inspection exemption notice sent by a specialized agency or directly submitted to the customs office by the customs declarant with information on the customs declaration and:

a) Accept the declared information if it is conformable;

b) Request the customs declarant to present the dossier for the customs office to inspect if the declared information is not conformable.

If the inspection result or inspection exemption notice by a specialized agency is not available when the customs declaration is registered, the customs office shall check and add information about the inspection results to the System or write the number of the notice on the paper customs declaration within 02 working hours after receiving the inspection result, which is submitted by the customs declarant or the inspecting authority.

2. If a license is used for multiple times of export or import of goods, the Customs Branch where the first declaration is registered shall make a monitoring sheet (according to form No. 05/TDTL/GSQL provided in Appendix V to this Circular), monitor and deduct the licensed quantity of goods after each export or import, and give it to the customs declarant to complete customs procedures for the next export or import. The Customs Branch where the customs declaration is registered shall monitor the quantity of goods on the reconciliation monitoring sheet and make a certification when the quantity of goods on the license is completed exported or imported.

Article 29. Physical inspection of goods

1. Imported goods shall be inspected while they are being unloaded from the vehicles to the warehouse, depot, port, or within the area of the border-gate; exported goods shall be inspected after they are granted customs clearance and gathered within the area of the border-gate of exportation:

a) Inspection of goods shall be carried out with scanners or other devices. If an inspection prescribed at Point c Clause 2 Article 34 of the Customs Law must be carried out, the Customs Branch at the border-gate shall conduct the physical inspection with the presence of representatives of the specialized state management agency of the seaport, international airport, or the Border Guard;

b) Responsibilities of the Customs Branch at the border-gate:

b.1) Notify the deliverer and the port and warehouse operation enterprise of the list of shipments to be inspected;

b.2) Carry out inspections as specified at Point a of this Clause;

b.3) Pay the costs related to the inspection of goods.

c) Responsibilities of the deliverer, port and warehouse operation enterprise:

c.1) Complete necessary procedures in order to bring goods to the inspection location of the customs office;

c.2) Facilitate the transport of goods to the inspection location as requested by the customs office;

c.3) The port and warehouse operation enterprise shall provide separate depot area or employ electronic port management system to determine the locations of goods that need to undergo physical inspection during customs procedures.

d) Handling of results of inspection of imported goods while they are being unloaded from the vehicles to the warehouse, depot, port, or border-gate of importation:

d.1) If there is no violation in the course of inspection, the unit assigned to inspect goods using scanners shall update the inspection result on the System.

The Customs Branch where the customs declaration of imported goods is registered shall use the inspection result to complete customs procedures as prescribed;

d.2) If there are violations in the course of inspection, the unit assigned to inspect goods using scanners shall update the inspection result on the System; cooperate with the port and warehouse operation enterprise in arranging a separate storage for the shipment; cooperate with the Customs Branch where the customs declaration is registered in carrying out physical inspection of goods while the customs declarant is carrying out customs procedures.

dd) Handling results of inspection of exported goods that are granted customs clearance and gathered within the border-gate of exportation

dd.1) If there is no violation in the course of inspection, the Customs Branch at the border-gate shall update the inspection result on the System and monitor exported goods as prescribed;

dd.2) If there are violations, the Customs Branch at the border-gate shall cooperate with the port and warehouse operation enterprise in arranging a separate storage for the shipment; update the inspection result on the System, request the customs declarant to open the shipment for physical inspection and take appropriate actions as prescribed.

Pursuant to regulations of Customs Law, in consideration of requirements for management of each warehouse, depot, port, and border-gate, availability of scanners and other devices, the Director General of Customs shall organize the inspection of imported goods while they are being unloaded from the vehicles to the warehouse, depot, port, and border-gate of importation, inspection of exported goods that are granted customs clearance and gathered within the border-gate of exportation.

2. Physical inspection of exported goods or imported goods while carrying out customs procedures at the Customs Branch at the border-gate:

a) Regarding shipments of imported goods required to undergo physical inspection and have undergone inspection as specified in Clause 1 of this Article, the customs officer may use the scanning result to complete customs procedures.

If there are violations when scanning, the shipment shall be opened for physical inspection;

b) Regarding shipments of imported goods required to undergo physical inspection but have not undergone inspection as specified in Clause 1 of this Article:

b.1) If the Customs Branch has a container scanner, it shall be used for physical inspection, unless the container scanner is not working, goods are not suitable for scanning, goods must be directly inspected by customs officers as instructed by the General Department of Customs, or the quantity of goods to be scanned exceeds the capacity of the scanner or the handling capacity of the port/warehouse/depot where the scanner is located.

The customs officer shall check the image, information on the customs declaration, and other information obtained at the time of inspection to analyze, assess the image, and give a conclusion. All of the images shall be stored in the scanner system as prescribed; scanned images shall be printed from the System and attached to the customs dossier if the paper customs dossier is submitted.

If the scanning result indicates that goods are inconsistent with the customs declaration, a physical inspection shall be carried out by the customs officer. The customs officer that operates the scanner shall make a request for physical inspection.

b.2) If the Customs Branch does not have a container scanner, physical inspection of goods shall be carried out by customs officers.

3. The Customs Branch at the border-gate shall carry out physical inspection of goods of the shipments of exported goods and imported goods at the request of other Customs Branches in accordance with Clause 11 of this Article.

4. Physical inspection of goods at the Customs Branch to which imported goods are transported (hereinafter referred to as “receiving customs office”):

a) If there is no violation after the shipment is scanned as specified in Clause 1 of this Article, the result may be used for deciding customs clearance of goods as prescribed;

1) If there are violations after scanning as specified in Clause 1 of this Article, the Customs Branch at the border-gate shall seal the goods and request the customs declarant to transport them to the Customs Branch where the customs declaration is registered for inspection;

c) If goods have not been scanned as specified in Clause 1 of this Article, the inspection shall be carried out in accordance with Point b Clause 2 of this Article.

5. Inspection of goods quantity

According to the customs declaration, result of physical inspection of goods or analysis result provided by the customs declarant (if any), the customs office shall determine the weight of exported goods or imported goods.

If the customs officer who carries out the physical inspection of goods is unable to verify the accuracy of the declared weight of goods, a provider of analysis services shall be requested to run analysis. The customs office shall decide the customs clearance according to the conclusion of the provider of analysis services.

6. Inspection of goods quality

In the course of physical inspection of goods, the customs officer must determine the quality of exported goods or imported goods, which is the basis for application of tax policies and policies on management of exported goods or imported goods, except for quality inspection prescribed by specialized laws.

If the customs officer who carries out the physical inspection of goods is unable to determine the quality of goods, the goods shall be analyzed by a provider of analysis services in accordance with law provisions. The customs office shall decide the customs clearance according to the conclusion of the provider of analysis services.

7. Physical inspection to determine goods names, codes, customs value, origins shall comply with Articles 24, 25, and 26 of this Circular.

8. Regarding goods with special storage requirements that cannot undergo on-site physical inspection, the Director of Customs Branch shall decide to move such goods to another location that satisfy their special storage requirements to conduct the physical inspection, or decide the customs clearance according to the analysis result.

9. Regarding a vehicle that has completed exit procedures, if its owner signs a sale contract with a foreign party (which states that the port of destination is overseas), the declaration of exported goods shall be registered at the Customs Branch where exit procedures are completed. Documents proving that the vehicle has completed exit procedures shall be sent to the Customs Branch. In this case, physical inspection of goods is exempt.

10. Regarding temporarily imported goods that cannot be sealed by the customs, goods temporarily imported or temporarily exported with other time limits or not subject to customs sealing, the customs officer shall describe the goods names, quantity, categories, symbols, origins (if any), or take pictures of goods and enclosed them with the customs dossier when conducting inspection. While carrying out procedures for re-export or re-import, if goods must undergo document inspection or physical inspection, the customs officer shall compare the goods with description in the customs dossier kept by the customs office in order to determine whether the re-exported or re-imported goods are the same as those temporarily imported or temporarily exported.

11. Physical inspection of goods at request of the Customs Branch where the customs declaration is registered:

a) After receiving the request from the Customs Branch where the customs declaration is registered through the System, the Customs Branch where goods are stored shall conduct the physical inspection. If the two Customs Branches are not connected to the System, the Customs Branch where the customs declaration is registered shall:

a.1) Make 02 copies of the inspection result sheet (according to form No. 06/PGKQKT/GSQL provided in Appendix V); 02 copies of the Request for physical inspection of goods (according to form No. 07/PDNKT/GSQL provided in Appendix V) and enclose 01 customs declaration (original), in case of paper declaration;

a.2) Seal the documents specified at Point a.1 of this Clause and request the customs declarant to submit them to the Customs Branch where goods are stored.

b) The customs declarant shall register the time, location of inspection with the Customs Branch where physical inspection of goods is carried out;

c) If exported goods or imported goods are eligible for tax exemption, not liable to duty, or incurring zero tax, or tax payment is deferred for 275 days (for goods imported for manufacturing of domestic exported goods), the customs declarant may take goods through the customs-controlled area before the Customs Branch where the customs declaration is registered updates the inspection result on the System to decide the customs clearance or release of goods or putting goods to storage.

Article 30. Handling customs inspection result

1. If the result of document inspection or physical inspection of goods is appropriate for the customs declaration contents:

a) In case the goods must be put into storage: Apply Article 32 of this Circular;

b) In case the goods must be released: Apply Article 33 of this Circular;

c) In case the goods must be granted clearance: Apply Article 34 of this Circular.

2. If the customs declaration contents are not appropriate, the customs office shall request the customs declarant to make additional declaration as specified in Clause 3 Article 20 of this Circular.

In case of violations against the law on management of exported goods or imported goods, the customs declarant is not permitted to make additional declaration and shall be handled by the customs office in accordance with law provisions.

Article 31. Taking, storing samples of exported goods or imported goods

1. Exported goods or imported goods shall be sampled in the following cases:

a) Samples are taken to serve customs declaration at the request of the customs declarant or specialized agency;

b) Samples are taken for analysis at the request of the customs office.

2. The sampling shall be decided by the head of the customs office.

3. Procedures for sampling exported goods or imported goods

a) If samples are taken for analysis by a professional analysis organization at the request of the customs declarant or customs office, the representatives of the goods owner and the customs office must be presence when samples are taken and a sampling record must be made (according to form No. 08/BBLM/GSQL provided in Appendix V to this Circular).

If samples are taken for analysis by a professional analysis organization at the request of the customs office, the samples must be seal and bear the signatures of the representatives of the goods owner and the customs office. A delivery note which bears signatures of all parties must be made when the samples are delivered to the analysis organization;

b) If samples are taken for analysis and classification, the Minister of Finance’s regulations on classification of goods, analysis serving classification of goods; analysis serving inspection of quality, food safety of exported goods or imported goods shall apply;

c) If samples are taken at the request of a specialized agency, sampling procedures shall comply with specialized laws.

d) When samples are taken by the customs office or specialized agency, the customs declarant shall present the goods and cooperate with them during the sampling process.

4. If samples are taken for analysis, sampling techniques shall comply with the General Department of Customs’ guidance.

If samples are taken to serve inspection by a specialized agency, sampling techniques shall comply with specialized laws.

5. The customs office shall retain the samples taken for analysis for 120 days from the date the customs declaration is registered.

6. Samples shall be returned and destroyed in accordance with the Minister of Finance’s regulations on classification of goods, analysis serving classification of goods; analysis serving inspection of quality, food safety of exported goods or imported goods.

Article 32. Taking goods to warehouses

1. Goods of priority enterprises shall be put in storage as specified in Clause 3 Article 9 of Decree No. 08/2015/ND-CP and the Ministry of Finance’s Circular on priority enterprises.

2. Goods subject to quarantine

Quarantine shall be carried out at the border-gate. In case the quarantine authority permits goods to be moved to inland quarantine locations in accordance with law provisions:

a) The customs office shall consider permitting the goods owner to move goods to the quarantine location according to the confirmation of the quarantine authority on the Certificate of Quarantine Registration or the Note of Provisional Plant Quarantine Result (for plant-derived goods) or Goods Transport Note (for aquaculture products) or other documents issued by the quarantine authority;

b) The customs declarant is legally responsible for the transport and preservation of goods at the quarantine location and only use or sell goods after there is a conclusion that the goods satisfy import requirements;

c) The quarantine authority shall monitor transport, quarantine, and preservation of goods pending quarantine result as prescribed by the Ministry of Health and the Ministry of Agriculture and Rural Development.

3. Goods subject to quality inspection and food safety inspection

Inspections shall be carried out at the border-gate; if goods are moved to another location for inspection as requested by the specialized agency or the customs declarant wishes to put their goods into storage, the customs declarant shall make a written request (according to form 09/BQHH/GSQL provided in Appendix V to this Circular). Director of Customs Branch where the customs declaration is registered shall consider permitting goods to be put into storage at an inland clearance depot (ICD), bonded warehouse, tax-suspension warehouse, concentrated inspection places for exported goods or imported goods under the supervision of customs offices; specialized inspection places, or the customs declarant's warehouse/depot.

The customs declarant is legally responsible for the transport and preservation of status quo of goods until the customs office concludes that goods satisfy import requirements and grants customs clearance.

4. Regarding imported goods subject to both quarantine and food safety inspection, both quarantine and quality inspection, procedures for putting goods into storage are similar as those for imported goods subject to quarantine specified in Clause 2 of this Article.

5. Handling result of inspection by a specialized agency:

a) If the inspection result indicates that goods satisfy import requirements, the Customs Branch shall decide customs clearance of goods as specified in Article 34 of this Circular;

b) If goods do not satisfy import requirements:

According to the conclusion given by the specialized agency, which permits the customs declarant whether to recycle, destroy, or re-export goods, the Customs Branch where the customs declaration is registered shall take appropriate actions.

6. Actions against delayed submission of inspection results and violations against regulations on storage of goods:

a) If the specialized agency has not connected with Vietnam National Single Window, the customs declarant shall submit the inspection result to the Customs Branch where the customs declaration is registered within 30 days from the day on which goods are put into storage, except for prolonged inspection confirmed by the specialized agency;

b) If the customs office does not receive the inspection result by the deadline specified at Point a of this Clause, or the customs office is informed that the shipment of imported goods is not preserved properly in accordance with law provisions, the Customs Branch where the customs declaration is registered shall carry out an inspection or cooperate with the customs office in charge of the place of storage in inspecting the preservation of the customs declarant’s goods and take appropriate actions.

Procedures for inspection of goods preservation shall comply with Clause 7 of this Article;

c) If violations against regulations on storage of goods are committed, in addition to administrative penalties, the customs declarant shall not be permitted to put their goods into storage:

c.1) For 01 years from the penalty imposition date if the customs declarant breaks the seal without permission; swap goods; sell or use goods without permission; preserve goods at a location other than that registered with the customs office;

c.2) For 06 months from the penalty imposition date if the customs declarant fails to submit inspection result punctually as specified at Point a of this Clause.

Points c.1 and c.2 submit a dossier the violations from the date on which this Circular comes into force.

d) Each Customs Branch where the customs declaration is registered shall compile a list of enterprises that are not permitted to put goods into storage and send it to Customs Department for applying nationwide.

7. Procedures for inspection of goods preservation:

a) The Customs Branch where the customs declaration is registered shall inspect goods preservation or request Customs Department to carry out the inspection.

If the goods preservation location is not under the management of the Customs Department which permits the goods to be put into storage, the Customs Department in charge of the goods preservation location shall carry out the inspection at the request of the former;

b) The customs declarant shall present goods being preserved for the customs office to inspect;

c) The customs declarant that fails to protect the status quo of goods shall be handled in accordance with law provisions.

Article 33. Release of goods

Goods shall be released in accordance with Article 36 of the Customs Law, Clause 1 Article 32 of Decree No. 08/2015/ND-CP, and the following guidance:

1. Release of goods pending customs valuation:

a) If exported goods or imported goods do not have official prices when the declaration is registered and the customs declarant requests a consultation:

a.1) Responsibilities of the customs declarant:

a.1.1) Request release of goods on the customs declaration in accordance with Appendix II to this Circular. In case of paper declaration, the text “Goods release requested” shall be written in box “Notes” on the declaration;

a.1.2) Pay tax or get guarantee for the tax calculated by the customs declarant;

a.1.3) Carry out procedures for customs valuation of exported goods or imported goods that do not have official prices when the declaration is registered in accordance with the Ministry of Finance’s Circular on customs valuation of exported goods and imported goods or regulations on consultation in Article 25 of this Circular;

a.1.4) Declare customs values on the customs declaration (or the post-clearance declaration according to form No. 03/KBS/GSQL provided in Appendix V to this Circular in case of paper declaration) within 30 days from the date of goods release; determine the official tax payable and pay tax fully in order to obtain customs clearance of goods as prescribed.

a.2) Responsibilities of the customs office:

a.2.1) The Director of the Customs Branch shall decide the release of goods as specified in Article 32 of Decree No. 08/2015/ND-CP;

a.2.2) Carry out procedures for customs valuation of exported goods or imported goods that do not have official prices when the declaration is registered in accordance with the Ministry of Finance’s Circular on customs valuation of exported goods and imported goods or hold a consultation as specified in Clause 3 Article 25 of this Circular.

b) In case the customs declarant has not had sufficient information and documents to determine customs values of exported goods or imported goods when the customs declaration is registered:

b.1) Responsibilities of the customs declarant:

b.1.1) Request release of goods on the customs declaration in accordance with Appendix II to this Circular (specify the case of goods release);

b.1.2) Declare and calculate tax according to the customs values determined by the customs office:

b.1.2.1) Write the text “Goods release requested” in box “Notes” on the declaration if the values determined by the customs office are not concurred with (in case of paper declaration); pay tax or get guarantee for according to the values determined by the customs office in order to obtain goods release. Declare the customs values on the customs declaration (or the post-clearance declaration according to form No. 03/KBS/GSQL provided in Appendix V to this Circular in case of manual customs procedures) within 30 days from the date of goods release; determine the official tax payable and pay tax fully in order to obtain customs clearance of goods as prescribed;

b.1.2.2) Declare the customs values determined by the customs office on the customs declaration, pay tax or get guarantee for tax if such customs values are concurred with in order for the customs office to decide customs clearance as prescribed.

b.2) Responsibilities of the customs office:

b.2.1) The Director of the Customs Branch shall determine customs values according to the value database, rules and methods for determination of customs value in the Ministry of Finance’s Circular on customs valuation of exported goods and imported goods, notify the customs declarant (via the System or using the form No. 02B/TBXDTG/TXNK provided in Appendix VI to this Circular in case of paper declaration) as the basis for tax calculation; decide release or customs clearance of goods as specified in Article 32 of Decree No. 08/2015/ND-CP;

b.2.2) If the customs declarant fails to declare the customs values within 30 days from the date of goods release, the customs office shall grant customs clearance of goods as specified in Article 34 of this Circular if the customs declarant has fully paid tax at the customs values determined by the customs office according to Point b.2.1 of this Clause.

2. Release of goods pending result of analysis and classification:

a) Responsibilities of the customs declarant:

a.1) Request release of goods on the customs declaration in accordance with Appendix II to this Circular. In case of paper declaration, the text “Goods release requested” shall be written in box “Notes” on the declaration;

a.2) Pay tax or get guarantee for the tax calculated by the customs declarant;

a.3) Make additional declaration as specified in Article 20 of this Circular.

b) Responsibilities of the customs office:

b.1) The customs office shall inspect fulfillment of conditions for goods release and answer the customs declarant;

b.2) According to the result of analysis and classification, the Customs Branch where the customs declaration is registered shall request the customs declarant to make additional declaration (if required);

b.3) If the customs declarant fails to make additional declaration as requested, the customs office shall follow guidance specified at Point b.7 Clause 3 Article 20 of this Circular;

b.4) The Director of the customs office shall decide goods release according to the customs declarant’s request and customs dossier.

Article 34. Customs clearance of goods

Customs clearance of goods shall be granted in accordance with Article 37 of the Customs Law, Clause 2 Article 32 of Decree No. 08/2015/ND-CP, and the following guidance:

1. Goods shall be granted customs clearance in the following cases:

a) Customs procedures are completed:

b) Exported goods or imported goods are in the following cases:

b.1) Goods are eligible for applying the time limit for paying tax specified in Clause 11 Article 1 of the Law Amending and Supplementing a Number of Articles of the Law on Tax Administration and Article 42 of this Circular;

b.2) Tax must be paid before customs clearance; however, tax is not paid or not fully paid but guaranteed by a credit institution.

c) One of the documents of the customs dossier is missing but the Director of Customs Branch extends the deadline for submission of the original as specified in Clause 3 Article 27 of Decree No. 08/2015/ND-CP;

d) Goods subject to inspection by a specialized agency shall be granted customs clearance when tax liabilities are fulfilled and one of the following documents is available:

d.1) A inspection exemption notice;

d.2) Inspection result which indicates fulfillment of requirements applicable to imported goods;

d.3) A conclusion of the specialized agency or a decision issued by a competent agency regarding the permitted shipment of imported goods.

dd) Tax on exported goods or imported goods is yet to be paid while pending procedures for tax exemption or tax cancellation shall be granted customs clearance in the following cases:

dd.1) Goods directly serving national defense and security on which excise tax, environmental protection tax, and other taxes (if any) have been fully paid;

dd.2) Goods serving disaster control, prevention of epidemics, emergency assistance; humanitarian aid, non-refundable aid on which relevant taxes (if any) have been fully paid;

dd.3) Tax on goods that are paid by state budget is yet to be paid by state budget as confirmed by a competent agency.

2. Customs clearance decision of goods

a) If the inspection result is satisfactory, the System shall automatically check the fulfillment of tax liabilities and decide whether to grant customs clearance;

b) If the System fails to perform such check, the customs declarant shall submit documents proving fulfillment of tax liabilities (receipt for payment to state budget, guarantee documents, etc.) for the customs officer to check and confirm fulfillment of tax liabilities: submit photocopies and present original for comparison;

c) In case of paper declaration:

c.1) The customs officer who grants registration to the customs declaration shall decide customs clearance of goods exempt from physical inspection;

c.2) In case the shipment on the customs declaration must undergo physical inspection:

c.2.1) The customs officer who carries out physical inspection shall decide customs clearance of goods that must undergo physical inspection;

c.2.2) If the shipment is inspected by another Customs Branch at the Customs Branch where the customs declaration is registered, the latter shall decide customs clearance of goods according to the inspection result sent by the former.

Section 4. TIME, EXCHANGE RATE, BASIS, METHODS FOR CALCULATION OF IMPORT AND EXPORT DUTIES, SAFEGUARD DUTY, ANTI-DUMPING DUTY, AND COUNTERVAILING DUTY

Article 35. Time, exchange rate for calculating taxes on exported goods or imported goods

1. The time for calculating import and export duties, safeguard duty, anti-dumping duty, and countervailing duty (within the effective period of the Minister of Industry and Trade’s Decision) is the registration date of the customs declaration. Import and export duties shall be calculated according to the tax rates, dutiable values, and exchange rates at that time.

If the taxpayer declares, calculates tax on the paper customs declaration before the registration date with different exchange rate from the exchange rate applicable on the registration date, the customs office shall recalculate the tax payable according to the exchange rate applicable on the registration date.

2. Exchange rates for tax calculation shall comply with Decree No. 08/2015/ND-CP.

a) The General Department of Customs shall cooperate with Vietcombank to update buying rates in the form of wire transfer announced by the headquarter at the end of Thursdays (or the day before if Thursday is a public holiday), announce the rate on the website of the General Department of Customs, and update it on the System in order to apply to customs declarations registered in the succeeding weeks;

b) Regarding the foreign currencies that are not announced by the headquarter of Vietcombank, the General Department of Customs shall update the exchange rates announced by the State bank of Vietnam posted on its website, announce it on the website of the General Department of Customs, and update it on the System in order to determine exchange rates for calculating taxes on exported goods or imported goods.

Article 36. Time for calculating taxes on exported goods and imported goods on all-inclusive customs declaration

1. In case an all-inclusive customs declaration is used for partial shipments of exported goods and imported goods, taxes shall be calculated by whenever an export or import is made at the time of carrying out customs procedures. Export duty or import duty shall be calculated according to the exchange rates, dutiable values, and exchange rates applicable on that day according to the practical exported or imported quantity of each article.

2. If the all-inclusive declaration is registered after delivery, Article 93 of this Circular shall apply.

Article 37. Basis and method for tax calculation at certain rates

1. Basis for tax calculation:

a) Quantity of each article of export or imported goods written on the customs declaration;

b) Customs values as prescribed in the Customs Law, the Law on Tax Administration, the Law on Export and Import Duty, Decree No. 08/2015/ND-CP, the Ministry of Finance’s Circular on customs valuation of exported goods and imported goods;

c) Tax rates

c.1) Rates of export duty on exported goods are specified in the export duty schedule issued by the Minister of Finance;

c.2) Rates of import duty on imported goods vary from article to article, including preferential tax rates, ordinary tax rates, and special preferential tax rates:

c.2.1) Preferential tax rates applied on goods imported from countries, groups of countries or territories granted “most-favored nation” status by Vietnam. The list of countries, groups of countries or territories granted “most-favored nation” status by Vietnam shall be announced by the Ministry of Industry and Trade.

Preferential rates of tax on particular articles are specified on the preferential import tariff schedule issued by the Minister of Finance.

The taxpayer shall declare and take legal responsibility for goods origin, which is the basis for determination of preferential rates of import duty;

c.2.2) Ordinary tax rates shall comply with the Law on Export and import duty and regulations of the Government on implementation of the Law on Export and import duty;

c.2.3) Special preferential import duty rates are applicable to particular articles that satisfy requirements for application of special preferential import duty rates prescribed in the Minister of Finance’s Circulars on preferential import tariff schedules for implementation of Free Trade Agreements.

If goods are imported from a non-tariff zone (including processed goods) into the domestic market, the following conditions must be satisfied to apply special preferential tax rates imposed by the Minister of Finance:

c.2.3.1) The goods are on the list of special preferential import tariff schedule issued by the Ministry of Finance;

c.2.3.2) Goods have documents certifying goods origins as prescribed by the Ministry of Industry and Trade.

c.2.4) If MFN rate on an article on preferential import tariff schedule is lower than the special preferential tax rate in the special preferential import tariff schedule, the MFN rate shall apply.

d) In addition to the taxes specified at Point c.2.1, c.2.2, or c.2.3 of this Clause, if goods are imported into Vietnam beyond the limits, there are subsidies, dumping, or discrimination against goods exported by Vietnam, countervailing duty, anti-dumping tax, anti-discrimination tax, and safeguard duty shall be imposed.

2. Tax calculation methods:

a) According practical quantity of each article on the customs declaration, their dutiable values, and tax rates, the amount of import and export duties payable shall be calculated as follows:

Import duty on crude oil or natural gases shall be calculated in accordance with the Ministry of Finance’s guidance on taxes incurred by entities engaged in oil and gas exploration and extraction as prescribed by the Law on Oil and Gas;

b) If the practical quantity of exported goods or imported goods is different from the commercial invoice because of their nature and such difference is conformable with the delivery terms and payment terms of the sale contract, the import and export duties payable shall be calculated according to the practical payment for the goods and tax rate on each article.

Example: An enterprise imported goods 1,000 tones of threaded tobacco under a contract at USD 100 per ton ± 2% water. The payment on the commercial invoice is 1,000 tones x USD 100 = USD 100,000. Upon importation, if the weight determined by the customs office is 1020 tones or 980 tones, the taxable value is still USD 100,000.

Article 38. Ground and method for calculating fixed tax and mixed tax

1. Basis for tax calculation:

a) Basis for calculating fixed tax:

a.1) Practical quantity of each article written on the customs declaration that applies fixed tax;

a.2) The fixed amount of tax on a unit of goods;

a.3) Exchange rates:

b) Ground for calculating mixed tax:

b.1) Practical quantity of each article written on the customs declaration that applies mixed tax;

b.2) Tax rate and dutiable values of goods that apply mixed tax according to Points b and c Clause 1 Article 37 of this Circular;

b.3) Fixed tax on goods that apply mixed tax specified at Point a Clause 1 of this Article;

b.4) Exchange rates for tax calculation:

2. Method for tax calculation:

a) Determination of import and export duties payable at absolute rate:

b) Determination of import and export duties payable that apply mixed tax:

Article 39. Safeguard duty, anti-dumping duty, countervailing duty

1. Importers of goods subject to safeguard duty, anti-dumping duty, or countervailing duty according to the Minister of Industry and Trade’s Decisions are the taxpayers.

2. Basis for tax calculation:

a) Practical quantity of each article written on the customs declaration that applies safeguard duty, anti-dumping duty, or countervailing duty;

b) Dutiable values of each article that applies safeguard duty, anti-dumping duty, countervailing duty;

c) Rate of tax on each article as specified at Point d Clause 1 Article 37 of this Circular.

3. Method for tax calculation:

4. Time for tax calculation, deadline for paying tax

a) The time for tax calculation shall comply with Article 35 of this Circular;

b) The deadline for tax payment shall comply with Clause 6 Article 42 of this Circular.

5. Tax collection and tax refund:

a) Tax collection:

a.1) Safeguard duty, anti-dumping duty, and countervailing duty shall be paid to the same account of state budget to which import duty is paid;

a.2) In case of materials and supplies imported for manufacturing of domestic exported goods; temporarily imported goods on which import duty is paid to a deposit account of the customs office, safeguard duty, anti-dumping duty, and countervailing duty shall be paid to the same deposit account of the customs office as if import duty.

b) Tax refund:

The amount of safeguard duty, anti-dumping duty, or countervailing duty paid under a provisional decision on imposition of safeguard duty, anti-dumping duty, or countervailing duty issued by the Ministry of Industry and Trade that is more than the amount payable under the official decision shall be refunded to the taxpayer.

The procedures for refunding overpaid tax are specified in Articles 49 and 132 of this Circular.

6. Separate the Ministry of Finance’s guidance submit a dossier collection, refund, and other tax policies.

Article 40. Applying basis for tax calculation in some special cases

1. Regarding goods that have been repurposed and thus no longer eligible for conditional tax exemption, preferential tax rates, or tax rates within tariff-rate quota, the basis for tax calculation is the dutiable values, tax rates, and exchange rates at the time or registering the new declaration. Where:

a) Customs values of imported goods shall comply with the Customs Law, Decree No. 08/2015/ND-CP, and the Ministry of Finance’s Circular on customs values of exported goods and imported goods;

b) The rate of import duty shall be the rate at the time of registering the new declaration. Separate regulations of the Ministry of Finance submit a dossier automobiles and motorbikes being belongings of Vietnamese citizens residing overseas that have been granted registration of permanent residences in Vietnam, automobiles and motorbikes of entities provided with diplomatic immunity and privileges in Vietnam that are repurposed.

If the customs office or another competent agency finds that goods are repurposed or sold domestically instead of being re-exported but the taxpayer fails to voluntarily declare and pay tax, the taxpayer shall pay an amount of tax imposed by the customs office and incur penalties as specified in Article 21 of this Circular.

2. If goods are manufactured, processed, recycled, assembled in a non-tariff zone where materials and components are imported from abroad as specified in Clause 16 Article 103 of this Circular, tax shall be calculated according to the Prime Minister’s regulations on financial policies applicable to economic zones at border-gates and guiding documents of the Ministry of Finance.

3. Regarding imported goods that also incur safeguard duty/anti-dumping duty/countervailing duty/anti-discrimination tax, the amount of safeguard duty/anti-dumping duty/countervailing duty/anti-discrimination tax shall be added to the price for calculating excise tax, value-added tax.

Section 5. PAYMENT OF TAXES AND FEES

Article 41. Tax payment currencies

1. Taxes on exported goods or imported goods shall be paid in VND. If taxes are paid in foreign currencies, only convertible foreign currencies are permitted. Exchange rates between foreign currencies and VND shall comply with Clause 2 Article 35 of this Circular.

2. If taxes must be paid in foreign currencies but official prices are not available when the declaration is registered:

a) The taxpayer may pay a provisional amount of tax in a foreign currency before customs clearance or release of goods. After official prices are available and the taxpayer is paid in foreign currency by the foreign client, the difference (if any) shall be paid in foreign currency; or

b) The taxpayer may pay a provisional amount of tax in VND before customs clearance or release of goods. After official prices are available and the taxpayer is paid in foreign currency by the foreign client, the difference (if any) shall be paid in foreign currency; or exchange rates between foreign currencies and VND shall comply with Clause 2 Article 35 of this Circular.

Article 42. Deadline for paying tax

Deadlines for paying taxes on exported goods or imported goods are specified in Clause 3 Article 42 of the Law on Tax Administration, which is amended in Clauses 5 and 6 Article 1 of the Law No. 21/2012/QH13. Specific guidance is provided below:

1. Regarding materials and supplies imported for manufacturing of domestic exported goods:

a) In order to apply the 275-day time limit, the taxpayer must satisfy the conditions belows:

a.1) The taxpayer has an establishment in Vietnam’s territory for manufacturing of domestic exported goods, has the lawful right to use the premises, facilities (including those associated with land); has the right to own or right to use machinery and equipment at the manufacturing establishment that Article suitable for materials and supplies imported for in Vietnam’s territory;

a.2) The taxpayer has engaged in export or import for at least 02 years prior to the registration date of the customs declaration of the shipment of materials and supplies imported for in Vietnam’s territory, and the customs office determines that throughout that 2-year period:

a.2.1) The taxpayer is not penalized for smuggling or illegal transport of goods across the border;

a.2.2) The taxpayer is not penalized for tax evasion or trade fraud;

a.3) The taxpayer does not owe overdue taxes, late payment interest, fines on exported goods or imported goods when the declaration is registered;

a.4) The taxpayer does not incur any penalty for accounting offenses for 02 consecutive years from the registration date of the customs declaration;

a.5) The taxpayer makes payment for goods imported for manufacturing of domestic exported goods via a bank. The cases in which payments are considered made via a bank are specified in Clause 4 of Appendix VII to this Circular.

The taxpayer shall make declaration and take responsibility for the declaration of fulfillment of conditions for applying 275-day time limit according to form No. 04/DKNT-SXXK/TXNK provided in Appendix VI to this Circular.

b) In case of import entrustment, the entrusting party must satisfy all conditions specified at Point a and have the import entrustment contract; the trustee must satisfy all conditions specified at Points a.2, a.3, a.4, a.5 of this Clause;

c) In case a parent company imported goods to supply its associate companies, an associate company imported goods to supply other associate companies; an associate company imported goods to supply its affiliated units:

c.1) In case goods are imported by a parent company to supply associate companies, then the associate companies must satisfy all conditions specified at Points a.1, a.2, a.3, a.4 and the parent company must satisfy all conditions specified at Points a.2, a.3, a.4, a.5 of this Clause;

c.2) In case goods are imported by an associate company to supply other associate companies, then the other associate companies must satisfy all conditions specified at Points a.1, a.2, a.3, a.4 and the importing company must satisfy all conditions specified at Points a.2, a.3, a.4, a.5 of this Clause;

c.3) In case goods are imported by an associate company to supply its affiliated unit:

c.3.1) If goods are manufactured and exported by the affiliated unit, but the associate company has the right to own the manufacturing facilities, the associate company has the right to own or use the machinery and equipment, then the affiliated unit must satisfy all conditions specified at Points a.2, a.3, a.4 and the associate company must satisfy all conditions specified at Point a of this Clause;

c.3.2) If goods are manufactured and exported by the affiliated unit, the manufacturing facilities are under the ownership of the affiliated unit, the machinery and equipment are under the ownership or enjoyment of the affiliated unit, then the affiliated unit must satisfy all conditions specified at Points a.1, a.2, a.3, a.4; and the associate company must satisfy all conditions specified at Points a.2, a.3, a.4, a.5 of this Clause.

When carrying out procedures for importing materials and supplies, the parent company or the associate company which imported goods materials and supplies must provide the customs office with the list of associate companies or affiliated units as declared with the tax office in order to obtain the taxpayer ID number (TIN) as prescribed in the Ministry of Finance’s Circular No. 80/2012/TT-BTC dated May 22, 2012.

d) If any of the conditions specified at Point a of this Clause is not satisfied but the tax is guaranteed by a credit institution, the guarantee shall comply with Article 43 of this Circular. Time limit for paying tax is the same as the guarantee duration. Nevertheless, the time limit must not exceed 275 days from the customs declaration registration date. Late payment interest shall not be charged during the guarantee period.

dd) In case materials and supplies imported for manufacturing of products for export that are eligible for 275-day time limit are in fact not used for manufacturing of domestic exported goods or any of the conditions specified at Point a of this Clause is not satisfied, or products are exported after the deadline for paying tax:

dd.1) If goods are sold domestically instead of being re-exported: The taxpayer must pay all taxes payable in accordance with law provisions before completing procedures for domestic sale of goods instead of re-export; procedures for declaring domestic sale of goods instead of re-export, registration of the new declaration and tax calculation shall comply with Articles 21 and 40 of this Circular;

dd.2) If products are exported after the 275-day time limit for paying tax though the taxpayer satisfies all conditions because the manufacture or reserve cycle is longer than 275 days, the client terminates the contract, the time of delivery is delayed, tax payment shall be extended as specified in Article 135 of this Circular;

dd.3) If any of the conditions specified at Point a of this Clause is not satisfied (and no guarantee is provided): the taxpayer must pay all taxes and late payment interest incurred over the period from the registration date of the declaration of imported goods to the tax payment date, and also incurs penalties as prescribed.

2. Regarding temporarily imported goods

a) The taxpayer must pay import duty and other taxes prescribed by law (if any) before completing procedures for temporary import of goods. If taxes have not been paid and are guaranteed by a credit institution, the guarantee shall comply with Article 43 of this Circular. Time limit for paying tax is the same as the guarantee duration. Nevertheless, the time limit must not exceed 15 days from the expiration of the temporary import period (unless this period is extended). Late payment interest shall not be charged during the guarantee period;

b) If goods are re-exported after the expiration of the guarantee period, late payment interest shall be charged for the period from the expiration of the guarantee period to the practical re-export date or tax payment date (whichever comes first);

c) If permission for paying tax by the end of the guarantee period is granted but goods are sold domestically instead of being re-exported, all taxes must be paid before completing procedures for domestic sale of goods. Procedures for declaration of domestic sale of goods instead of re-exported, registration of the new declaration, and tax calculation shall comply with Articles 21 and 40 of this Circular.

3. Regarding exported goods or imported goods specified at Point c Clause 3 Article 42 of the Law on Tax Administration, which is amended in Clause 11 Article 1 of the Law No. 21/2012/QH13, the taxpayer must pay tax before goods are released or granted customs clearance.

If taxes are guaranteed by a credit institution, the guarantee shall comply with Article 43 of this Circular. The time limit for paying tax is the same as the guarantee duration and must not exceed 30 days from customs declaration registration date. However, late payment interest will still be charged for the period from the date of customs clearance or release of goods to the practical tax payment date. Late payment interest is specified in Article 106 of the Law No. 21/2012/QH13 Amending and Supplementing a Number of Articles of the Law on Tax Administration, amended in the law No. 71/2014/QH13, and instructed in Article 133 of this Circular.

4. Time limits for paying taxes in special cases (except for the case in which outstanding tax may be paid in instalments specified in Clause 25 Article 1 of the Law No. 21/2012/QH13 Amending and Supplementing a Number of Articles of the Law on Tax Administration):

a) Regarding partial shipments of exported goods and imported goods on an all-inclusive customs declaration specified in Articles 36 and 93 of this Circular, the time limit for paying tax varies from case to case as prescribed in this Article, and are applicable to each shipment;

b) Regarding exported goods or imported goods that are still under the supervision of the customs office but impound by a competent agency for investigation, the time limit for paying tax shall begin on the day such goods are released;

c) Regarding goods that are imported to directly serve national defense and security, granted customs clearance or released, and awaiting decision on conditional tax exemption, if it is determined that such goods are ineligible for conditional tax exemption, taxes shall be fully paid, the time limit for paying tax and late payment interest shall be recalculated according to the period from the date of customs clearance or release of goods to the practical tax payment date, and sanctions shall be imposed (if any);

d) Regarding goods that are imported to directly serve scientific research, education, training, and eligible for conditional tax exemption, the taxpayer must implement the latest decision on tax payable issued by the customs office pending a decision on conditional tax exemption. If it is determined that such goods are ineligible for conditional tax exemption, taxes shall be fully paid, the time limit for paying tax and late payment interest shall be recalculated according to the period from the date of customs clearance or release of goods to the practical tax payment date, and sanctions shall be imposed (if any);

dd) If payment for goods covered by state budget yet to be made, taxes shall be paid within 05 working days after receiving money paid by the state budget.

Late payment interest shall be charged as specified in Article 133 of this Circular if the taxpayer fails to pay taxes by the said deadline.

The taxpayer must present documents issued by State Treasury about the amount paid by state budget in order to pay tax to the customs office where the customs declaration is registered: 01 photocopy;

e) In case of additional declaration to pay tax arrears, the time limit for paying tax arrears shall be the same as the time limit for paying tax on the declaration.

5. Time limit for paying imposed tax

a) Regarding customs declarations registered from July 01, 2013, the time limit for paying tax imposed by the customs office is the same as the time limit written on such declarations;

b) Regarding declarations registered before July 01, 2013, if the customs office imposes tax from the date on which this Circular comes into force, the deadline for paying tax is the issuance date of the decision on tax imposition.

6. Time limit for paying tax on exported crude oil, goods subject to safeguard duty, anti-dumping duty, countervailing duty (except for materials and supplies imported for manufacturing of domestic exported goods, temporarily imported goods, which apply the time limits for paying tax specified at Points a, dd Clause 1, Point a Clause 2 of this Article) shall comply with Point c Clause 3 Article 42 of the Law on Tax Administration, which is amended under Clause 11 of the Law No. 21/2012/QH13. Accordingly, the time limit for paying tax shall comply with Clause 3 of this Article.

7. If official prices are not available when goods are released or granted customs clearance and the taxpayer must pay tax according to the declared prices, the time limit for paying tax shall comply with Clause 3 of this Article.

If the tax temporarily paid or guaranteed before goods are released or granted customs clearance is lower than tax payable when official prices are available, the taxpayer must pay the difference. Late payment interest shall not be charged on such difference. The time of fixing official prices shall be determined in accordance with law provisions.

If the tax temporarily paid or guaranteed before goods are released or granted customs clearance is higher than tax payable when official prices are available, the excess shall be settled in accordance with Articles 49 and 132 of this Circular.

8. The deadline for paying taxes on copyright pay, license pay, and the amount paid by the importer from the amount collected after selling, disposing of, using imported goods that were not determined when the declaration is registered (because it depends on the revenue from sale of imported goods or because of other reasons specified in the sale contract or agreement on payment of copyright pay, license pay) is the registration date of the post-clearance additional declaration.

9. Time limits for paying value-added tax on machinery, equipment, vehicles that are part of a technological line, building materials that cannot be domestically manufactured and need importing to form fixed assets; materials for manufacture of animal feeds and imported pesticides shall comply with Point c Clause 3 Article 42 of the Law on Tax Administration, which is amended in Clause 1 Article 1 of the Law No. 21/2012/QH13, Clause 1 Article 3 of the Law No. 71/2014/QH13, which adds Clause 3a to Article 5 of the Law on Value-added Tax, guidance in Article 43 of this Circular, and other guiding Circulars promulgated by the Minister of Finance.

Article 43. Tax guarantee

1. Tax guarantee shall be provided in the form of separate guarantee or joint guarantee.

a) Separate guarantee means guarantee provided by a credit institution operating under the Law on credit institutions (hereinafter referred to as “lawful credit institution”) for fulfillment of tax liability of a particular customs declaration. If the taxpayer fails to pay tax and late payment interest (if any) by expiration of the guarantee period, the organization that provides guarantee (hereinafter referred to as “guarantor”) shall pay tax and late payment interest fully on behalf of the taxpayer as specified in Clause 11 Article 1 of the Law No. 21/2012/QH13 Amending and Supplementing a Numbers of Articles of the Law on Tax Administration; Clause 2 Article 114 of the Law on Tax Administration;

b) Joint guarantee means guarantee provided by a lawful credit institution for fulfillment of tax liability of more than one customs declaration at one or some Customs Branches. Joint guarantee shall be gradually deducted and restored in proportion with the amount of tax payable.

If the taxpayer fails to pay tax and late payment interest (if any) by expiration of the guarantee period, the guarantor shall pay tax and late payment interest fully on behalf of the taxpayer as specified 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; Clause 2 Article 114 of the Law on Tax Administration.

2. The customs office shall accept tax guarantee if the following conditions are satisfied:

a) Conditions for taxpayer to get guarantee:

a.1) The taxpayer has engaged in export or import for at least 365 days prior to the registration date of the customs declaration, and throughout that 365-day period:

a.1.1) The taxpayer is not on any customs office’s list of entities that incur penalties for smuggling or illegal transport of goods across the border;

a.1.2) The taxpayer is not on any customs office’s list of entities that incur penalties for tax evasion, tax fraud;

a.1.3) The taxpayer has incurred not more than two penalties for other customs offences (including understatement of tax payable or overstatement of exempted, reduced, refunded, or cancelled tax), the fine for which exceeds the competence of the Director of the Customs Branch as prescribed by the Law on Handling of Administrative Violations.

a.2) The taxpayer is not on the list of entities that owe overdue taxes, late payment interest, fines when the declaration is registered.

b) There is a letter of guarantee provided by a lawful credit institution which specifies the guaranteed tax, guarantee period, and commitment of ability and responsibility to fully pay tax and late payment interest on behalf of the taxpayer if the taxpayer fails to pay tax by expiration of the guarantee period.

3. Procedures for provision of separate guarantee

a) If tax guarantee is provided, the taxpayer shall submit the letter of guarantee written by the guarantor to the customs office while following procedures for export or import of a shipment;

b) The contents of the letter of separate guarantee must comply with the form No. 05/TBLR/TXNK provided in Appendix VI to this Circular;

c) The customs office shall inspect the fulfillment of conditions for guarantee specified in Clause 2 of this Article, the contents of the letter of guarantee, and:

c.1) Determine a deadline for paying tax according to the guarantee period, which is not later than the deadline specified in Clause 3 Article 42 of the Law on Tax Administration, which is amended 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;

c.2) If the guaranteed tax is smaller than the amount of tax payable, the Director of Customs Branch shall grant customs clearance to the quantity of goods corresponding to the guaranteed tax and take legal responsibility for this action. If the taxpayer wishes to obtain customs clearance for the whole shipment, the taxpayer must pay the unguaranteed tax before receiving goods.

If the imported goods are bulk cargo or liquefied gases, and the guarantee amount is smaller than the amount of tax payable, the Director of Customs Branch shall grant customs clearance to a quantity of goods which does not exceed the corresponding amount of tax guaranteed;

c.3) If any of the guarantee conditions is not satisfied, the customs office shall notify the taxpayer of the refusal of tax guarantee. The guarantor shall be requested to certify if the truthfulness of the letter of guarantee is suspicious.

d) Monitoring and settlement of guarantee:

d.1) If the taxpayer fails to pay up the guaranteed tax by expiration of the guarantee period, the guarantor shall fully pay tax and late payment interest on behalf of the taxpayer;

d.2) The customs office shall monitor, urge the taxpayer and the guarantor to fully pay tax and late payment interest to state budget as prescribed.

Any customs office that finds that the guarantor fails to adhere to the commitment shall make a notification in writing or on the electronic data system (if any) for other customs units nationwide to reject letters of guarantee written by such guarantor;

d.3) If the taxpayer and the guarantor pay tax and late payment interest (if any) at the same time, the overpaid amount shall be refunded to the guarantor.

4. Procedures for provision of joint guarantee

a) Before initiating procedures for export or import, the taxpayer shall send a written request for permission for joint guarantee of imported goods (according to form No. 06A/DDNBLC/TXNK provided in Appendix VI to this Circular) to the Customs Branch where the customs declaration is registered;

b) The contents of the letter of joint guarantee must comply with the form No. 06/TBLC/TXNK in Appendix VI to this Circular;

c) The customs office where the customs declaration is registered shall check the fulfillment of guarantee conditions specified in Clause 2 of this Article. If all conditions are satisfied, the customs office shall accept the joint guarantee for multiple declarations of imported/exported goods which are registered during the guarantee period written on the letter of guarantee, and determine the deadline for paying tax on each shipment according to the guarantee period.

If any of the guarantee conditions is not satisfied, the customs office shall notify the taxpayer of the refusal of tax guarantee.

The customs office shall send an enquiry about the truthfulness of the letter of guarantee to the guarantor if it is suspicious;

d) Point c.2 Clause 3 of this Article shall apply if the remaining guarantee amount is lower than the amount of tax payable.

dd) Guarantee shall be monitored and settled as specified at Point d Clause 3 of this Article to ensure that the guaranteed amount each time is never higher than the total guarantee value; the guarantee quota shall be restored according to the amount of tax paid. The remaining quota of the letter of guarantee equals (=) the initial quota minus (-) guaranteed tax plus (+) paid tax on the declarations under joint guarantee;

e) If the guarantor makes a written request for revocation of joint guarantee, the customs office shall immediately terminate the application of joint guarantee on the System, and notify the guarantor of such termination as soon as the guarantor’s request is received, provided taxes, late payment interest, fines (if any) of the declarations under joint guarantee have been fully paid.

5. In case of electronic guarantees provided via commercial banks that have entered into agreements on tax collection with the General Department of Customs: Upon receipt of information about the guarantee amount at a commercial bank via the Electronic Payment System on the Electronic Payment Portal of the General Department of Customs, the customs office shall update it on the database of the General Department of Customs and grant customs clearance of goods. Guarantees shall be monitored and settled in accordance with Point d Clause 3 and Point dd Clause 4 of this Article.

Article 44. Locations and methods of tax payment

Locations and methods of tax payment shall comply with the Ministry of Finance’s Circular No. 126/2014/TT-BTC dated August 28, 2014, on some procedures for declaration, payment, collection of taxes, late payment interest, fines, and other receivables on exported goods or imported goods.

Article 45. Payment and collection of customs fees

1. Payers, rates, collection methods, management and use of customs fees shall comply with Circular No. 172/2010/TT-BTC dated November 02, 2010.

If a declaration that has more than 50 lines must be divided, or an article on which tax exceeds the number of digits on the declaration, or the total tax on a declaration exceeds the number of digits on the declaration, only customs fee for the first declaration is collected.

2. Payment method:

The customs declarant shall pay customs fees by monthly wire transfer or in cash. The Director General of Customs shall organize the collection of electronic customs fees via commercial banks or organizations authorized to collect by customs offices (hereinafter referred to as “authorized collectors”).

3. Payment locations:

Payers of customs fees shall transfer or pay money at State Treasuries, credit institutions, authorized collectors, or customs offices.

4. Procedures for payment:

a) If customs fees are paid monthly:

a.1) Within the first 10 days of the next month, the customs declarant shall fully pay the customs fees of the previous month to the account of the customs office where the customs declaration is registered. The accounting system of the customs office shall automatically deduct the paid amount from the outstanding amount in chronological order;

a.2) The customs office where the customs declaration is registered shall compare the list of customs declarations that incur customs fees, record the receivable, paid, and outstanding customs fees according to applicable regulations;

a.3) If a declarant pays customs fees via an authorized collector, the customs office shall provide the lists of declarations that incur customs fees of such declarant for the authorized collector via the customs electronic payment portal on the 5^th of every month;

a.4) According to the list sent by the customs office, the authorized collector shall collect customs fees and transfer it to the deposit account of the customs office at a State Treasury;

a.5) On the 10^th of every month, the authorized collector shall make and submit a statement of the amounts of receivable, paid, and outstanding customs fees of every declarant to the customs office.

b) Any declarant that does not pay customs fees monthly or does not regularly carry out customs procedures at a Customs Branch shall pay customs fee every time it is incurred according to the notice of customs fees on the System;

c) If a declarant pays customs fees in cash, the collecting customs officer shall write a receipt and record the collected amount as prescribed.

5. The customs office shall not enforce payment if declarant has outstanding customs fees. The customs declarant has the responsibility to fully pay customs fees by the deadline prescribed in this Article.

6. Management, monitoring of customs fees (if any) on the Concentrated Accounting System:

a) When receiving the statement from the authorized collector, the Customs Branch where customs procedures are followed must carefully check the amounts of customs fees collected and transferred to its deposit account at a State Treasury, compare them with the practical payment confirmed by the State Treasury. In case of any difference between the statement sent by the authorized collector and the amount confirmed by the State Treasury, a record must be made to determine the reasons and accountability;

b) According to the amount of customs fees collected and transferred to the customs office by the authorized collector, receipts of payment to state budget, and confirmation of payment made by the State Treasury, the customs office shall record the amount of customs fees collected and receivable to take appropriate actions.

7. Procedures, responsibilities, and funding for authorizing customs fee collection:

a) The authorization of customs fee collection shall be made into a contract (according to form No. 07/UNTH/TXNK provided in Appendix VI to this Circular) between the Director General of Customs and the head of the organization authorized to collect customs fees.

b) Responsibilities of the authorized collector:

b.1) Develop an information technology system connected with the customs electronic payment portal to execute the concluded collection authorization contract.

The authorized collector must not authorize any third party to execute the collection authorization contract with the customs office;

b.2) Receive information about collection of customs fees from customs offices; fully, promptly collect and transfer customs fees to the deposit account of the customs office at a State Treasury. The amount of customs fees transferred to the customs office’s deposit account is the total collected amount on the receipts for customs fee collection:

b.3) Issue receipts for customs fee collection to the fee payer upon collection.

Make a list of receipts by payer and an order of payment to State Treasury;

b.4) Not later than the 10^th of the next month, the authorized collector must make and send a report on the amount collected and transferred in the previous month (according to form No 08/BCT/TXNK provided in Appendix VI to this Circular) to the customs office. The report must reflect the amount receivable, collected, outstanding amount, reasons, and proposed solutions;

b.5) Make and submit statements of collected customs fees to the customs office.

c) Responsibilities of the authorizing customs office:

c.1) Announce the authorized collector;

c.2) Issue notices of customs fees payable in the month requesting the authorized collector to collect the fees by the 5^th of the next month via customs electronic payment portal;

c.3) Instruct the authorized collector to collect customs fees as prescribed;

c.4) Provide funding for collection of customs fees for the authorized collector under the concluded contract;

c.5) Inspect the collection and transfer of customs fees by the authorized collector.

d) Responsibilities of the State Treasury:

Send receipts for the amount collected and transferred by the authorized collector to the customs office for monitoring;

dd) Funding for collection authorization

The funding is extracted from the amount of customs fees collected by the customs office. The amount paid to the authorized collector must comply with the agreement between the General Department of Customs and the authorized collector and suit the practical situation.

Funding for collection authorization must be provided for the right consignees by wire transfer to the authorized collector’s account at a credit institution or State Treasury. The funding must not be provided in cash. The customs office shall provide funding in full for the authorized collector based on the customs fees transferred to the customs office’s deposit account at a State Treasury.

8. Sanctions for violations against regulations on customs fees:

Every act of the authorized collector that delays the transfer of collected customs fees to the customs office’s deposit account at a State Treasury shall be considered appropriation of customs fees, and the authorized collector shall be handled according to applicable the law.

Article 46. Payment of taxes of goods subject to analysis

The taxpayer must comply with Clause 2 Article 33 and Article 42 of this Circular to accurately determine tax on goods subject to analysis.

If the analysis result contravenes the taxpayer’s declaration and thus changes the amount of tax payable, then the taxpayer must make additional declaration on the System and pay taxes as soon as the customs office’s notification of the analysis result is available. Late payment interest shall not be charged for the period pending analysis result, or paid tax (if any) shall be refunded.

If the taxpayer fails to make additional declaration, the customs office shall impose tax. The taxpayer shall pay tax arrears, late payment interest, and fines (if any) as prescribed.

Article 47. Procedures for paying taxes, late payment interest, and fines

1. Outstanding taxes are unpaid taxes on goods that have been released or granted customs clearance.

2. Due taxes, late payment interest, and fines shall be paid in the order specified in Article 45 of the Law on Tax Administration, which is amended in Clause 12 Article 1 of the Law No. 21/2012/QH13 Amending and Supplementing a Number of Articles of the Law on Tax Administration, where:

a) Outstanding taxes and late payment interest that are more than 90 days overdue shall be enforced;

b) Outstanding taxes and late payment interest that are less than 90 days overdue shall not be enforced;

3. State Treasuries and customs office shall exchange information about collection of taxes, late payment interest, and fines to determine the order and collect them properly. To be specific:

a) The customs office shall monitor tax debts of taxpayers, instruct taxpayers to pay tax in the correct order, development a database system for taxpayers to check and pay taxes as prescribed;

b) According to the receipts for payment of taxes, late payment interest, and fines of taxpayers, State Treasuries shall record payments to state budget, send documents and information about the payments to customs offices;

c) In case a taxpayer fails to pay taxes, late payment interest, fines in the correct order, the customs office shall send a request for adjustment of the amount of tax collected to the State Treasury, notify the taxpayer of such adjustment, or request the taxpayer to pay other outstanding amounts in the correct order. Exported goods or imported goods on a new customs declaration shall only be granted customs clearance when the taxpayer does not owe overdue taxes, late payment interest, or fines.

d) If the taxpayer does not specify the amount of each type of tax, late payment interest, and fine on the tax payment document, the customs office shall record the collected amount of tax, late payment interest, and fine and the correct order, notify the State Treasury and the taxpayer.

Article 48. Tax imposition

1. Tax imposition prescribed in this Circular means the customs office’s exercising its right to determine the factors, basis for tax calculation, calculate tax, and request the taxpayer to pay the tax determined by the customs office in the cases specified in Clause 2 of this Article.

2. The customs office shall impose tax in the cases specified in Clause 3 Article 33 of Decree No. 83/2013/ND-CP.

3. Tax imposition must comply with principles in Article 36 of the Law on Tax Administration.

4. The basis for tax imposition is the quantities, dutiable values, origins of goods, rates of import and export duties, excise tax, value-added tax, environmental protection tax, safeguard duty, anti-dumping duty, countervailing duty on practical exported goods or imported goods; exchange rates, tax calculation method, other information and database specified in Clause 2 Article 30 of the Law on Tax Administration, Article 35 of Decree No. 83/2013/ND-CP, and Section 5 Chapter II of this Circular.

5. The power to impose tax is specified in Article 33 of Decree No. 08/2015/ND-CP.

6. Procedures for tax imposition

a) Taxes on exported goods or imported goods shall be imposed while customs procedures are being followed or after goods are released or granted customs clearance;

b) When imposing tax, the customs office must determine the amount of tax payable or relevant factors (goods quantity, dutiable values, codes, tax rates, origins, exchange rates, quotas, etc.) which are the basis for determination of the total amount of tax payable, exempted, reduced, refunded (cancelled) of each article and customs declaration as specified in Article 34 of Decree No. 83/2013/ND-CP.

When imposing relevant factors, the customs office shall calculate the corresponding amount of tax payable and notify the taxpayer of both the factors and amount of tax payable;

c) Specific procedures:

c.1) Determine goods dutiable imposition as specified in Clause 2 of this Article;

c.2) Determine the method of tax imposition as specified in Article 34 of Decree No. 83/2013/ND-CP and:

c.2.1) In case of imposition of tax payable:

c.2.1.1) Check, determine the basis for tax calculation (quantities, values, exchange rates, origins, codes, tax rates of goods) in accordance with regulations of tax law and relevant laws;

c.2.1.2) Calculate the total amount of tax payable, the difference between the tax payable and the amount declared, paid by the taxpayer (if any);

c.2.1.3) Issue a decision on tax imposition and a decision on penalties for administrative violations (if any).

c.2.2) In case of imposition of relevant factors:

c.2.2.1) Check, determine the relevant factors in an accurate and legitimate manner;

c.2.2.2) Determine the time of tax calculation and/or basis for tax calculation (quantities, values, tax rates, etc.) according to the relevant factors imposed, regulations of tax law, and relevant laws. If the time of tax calculation and/or basis for tax calculation cannot be determined and/or the basis for calculation of taxes on the same type of goods on various customs declarations that are repurposed, the imposed tax shall be the average tax according to applicable the law on the registration date of the customs declaration;

c.2.2.3) Calculate the total amount of tax payable, the difference between the tax payable and the amount declared, paid by the taxpayer (if any); determine late payment interest as specified in Article 133 of this Circular;

c.2.2.4) Issue a decision on tax imposition and a decision on penalties for administrative violations (if any).

7. Responsibilities of the customs office

a) The customs office shall issue the decision on tax imposition (according to form No. 09/QDADT/TXNK provided in Appendix VI to this Circular) when imposing tax and send it to the taxpayer within 08 working hours since the decision in signed;

b) If the tax imposed by the customs office is higher than the amount payable, the excess must be refunded by the customs office;

c) If the customs office has good reasons to determine that the decision on tax imposition is incorrect, a decision on cancellation of tax imposition shall be issued (according to form No. 10/HQDADT/TXNK provided in Appendix VI to this Circular).

8. Responsibilities of the taxpayer

a) The taxpayer must fully pay tax arrears to the customs office as imposed in accordance with Articles 107, 108, and 110 of the Law on Tax Administration, which is amended in Clauses 33, 34, and 35 Article 1 of the Law No. 21/2012/QH13 Amending and Supplementing a Number of Articles of the Law on Tax Administration.

The taxpayer shall incur penalties if committing violations against tax laws. The time limit for sanctioning violations against tax laws is specified in Article 110 of the Law on Tax Administration, which is amended in Clause 35 Article 1 of the Law No. 21/2012/QH13 Amending and Supplementing a Number of Articles of the Law on Tax Administration and the Government’s regulations on handling of administrative violations and enforcement of administrative decisions in the customs sector;

b) If the decision on tax imposition issued by the customs office is not concurred with, the taxpayer must pay such tax and shall request the customs office to provide explanation, file a complaint or lawsuit against the tax imposition in accordance with the law on complaints and lawsuits.

Article 49. Settlement of overpaid tax, late payment interest, and fines

1. Tax, late payment interest, and fines are considered overpaid in the following cases:

a) If the amount of tax, late payment interest, fines paid by the taxpayer is higher than the amount payable (including value-added tax on imported goods that have been re-exported to the foreign goods owner, re-exported to a third country or to a non-tariff zone; goods that have been exported but then imported back into Vietnam; goods imported for manufacturing of domestic exported goods on which value-added tax has been paid and then exported) within 10 years from the day on which such amount is paid to state budget, the overpaid amount shall be offset against the outstanding amount (taxes may be offset against each other) or offset against the amount payable next time; the overpaid amount shall be refunded if the taxpayer no longer owes tax, late payment interest, or fine, unless the taxpayer is not exempt from penalties because the decision on penalties for tax offenses issued by a tax office or a competent agency specified in Clause 2 Article 111 of the Law on Tax Administration has been implemented;

b) The taxpayer has a refundable tax according to the law on import and export duties, excise tax, value-added tax, environmental protection tax, safeguard duty, anti-dumping duty, and countervailing duty.

2. Documents and procedures for settlement of refundable tax specified at Point b Clause 1 of this Article shall comply with guidance in Section 4 Chapter VI of this Circular.

3. Overpaid tax, late payment interest, and fines specified at Point a Clause 1 of this Article shall be settled as follows:

a) Documents include:

a.1) 01 original of the written request for settlement of overpaid tax, late payment interest, and fines, specifying: numbers of tax payment receipts, amount of late payment interest, amount of tax, late payment interest, and fines that have been paid, the amount of tax, late payment interest, and fines payable, the overpaid amount; reasons for overpayment, and suggested solution;

a.2) 01 photocopy of any document proving the overpayment of tax, late payment interest, or fine (unless such document is attached to the customs dossier, which is already submitted when registering the customs declaration);

a.3) 01 photocopy of the fine payment receipt.

b) The customs office that collects the overpaid amount shall receive, examine documents submitted by the taxpayer, compare them to the original customs dossier, inspect the accuracy and legitimacy of the documents, and take appropriate actions as follows:

b.1) If it is determined that the amount of paid tax, late payment interest, or fine is actually higher than the amount payable, and the taxpayer’s declaration is accurate, the customs office shall issue a decision to refund the overpaid tax, late payment interest, or fine (according to form No. 11/QDHT/TXNK provided in Appendix VI to this Circular);

b.2) If it is determined that the amount of paid tax, late payment interest, or fine is actually higher than the amount payable, but the taxpayer’s declaration is not accurate, the customs office shall send a written notification to the taxpayer and refund the correct overpaid amount as prescribed;

b.3) If it is determined that the amount of paid tax, late payment interest, or fine is not higher than the amount payable, the customs office shall send a written notification, which provides specific explanation, to the taxpayer.

c) The customs office shall process documents specified at Point b of this Clause within 05 working days from the day on which sufficient docs are received;

d) According to the decision on refund, the customs office that collects the overpaid amount shall settle it and update information about the overpaid amount on the System.

4. The customs office that collects overpaid tax, late payment interest, fine has the power to decide refund of overpaid tax, late payment interest, fine to the taxpayer.

5. Overpaid value-added tax shall be settled together with refund of import duty (if any) in accordance with guidance in Article 132 of this Circular.

Section 6. CUSTOMS PROCEDURES; CUSTOMS INSPECTION AND SUPERVISION OF GOODS UNDER CUSTOMS SUPERVISION AND OTHER EXPORTED GOODS OR IMPORTED GOODS

Article 50. Transport of goods under customs supervision

1. Goods are under customs supervision in the following cases:

a) Goods are transited through the territorial mainland of Vietnam;

b) Goods are moved to another custom post outside the border-gate area or vice versa, including:

b.1) Goods on a customs declaration registered at a Customs Branch outside the border-gate area that are transported from the customs place outside the border-gate area to the border-gate of exportation, a bonded warehouse, CFS, ICD;

b.2) Goods on a customs declaration registered at a Customs Branch outside the border-gate area that are transported from the border-gate of importation to a customs place outside the border-gate area or a non-tariff zone;

b.3) Exported goods that are transported from an ICD, a bonded warehouse, container freight station (CFS), or off-airport cargo terminals to the border-gate of exportation;

b.4) Imported goods that are transported from the border-gate of importation to the port of destination written on the bill of lading, off-airport cargo terminal, CFS, or another border-gate;

b.5) Imported goods that are transported from the border-gate of importation to a bonded warehouse;

b.6) Goods that are transported from a non-tariff zone to a border-gate of exportation or bonded warehouse, CFS, ICD; a customs place outside border-gate area, or another non-tariff zone;

b.7) Exported goods or imported goods that are transport from one customs place to another.

2. The customs declarant shall be responsible for protecting the status quo of goods and the customs seal, unless goods cannot be sealed by nature while goods are being transported to the destination; sticking to the transport route and time registered with the customs office.

If the status quo of goods or the customs seal cannot be protected, or it is not possible to stick to the registered route or time because of a force majeure event, the customs declarant, after taking necessary measures for minimizing and preventing damage, must promptly notify the nearest customs office and the customs office to which goods is transported until goods arrive at the registered destination. If it is not possible to promptly notify the customs office, the taxpayer may inform the local police authority, the border guard, or the coastguard for confirmation.

Article 51. Customs procedures applicable to goods under customs supervision

1. Customs procedures applicable to goods transported independently:

a) Procedures customs for independent transport shall be applicable to goods transited through Vietnam’s territorial mainland and the goods specified at Point b.3 and Point b.4 Clause 1 Article 50 of this Circular, and shall be carried out at the Customs Branch from which goods are transported;

b) Customs dossier:

b.1) A declaration of independent transport which contains the information specified in Section 6 of Appendix II to this Circular;

b.2) 01 photocopy of the bill of lading, unless goods are transported by road across the border without a bill of lading;

b.3) A photocopy of the license for transit if such license is required.

Regarding the documents specified at Point b.3 of this Clause, if the single window mechanism is applied, the specialized state management agency shall send the electronic license for transit through the integrated communication system. In this case, the customs declarant is not required to submit the original license when carrying out customs procedures.

In case goods are transported from a bonded warehouse, CFS, or ICD to a border-gate of exportation, the documents specified at Point b.2 and Point b.3 of this Clause are not required.

c) Procedures:

c.1) Responsibilities of the customs declarant:

Complete the declaration of goods transport in accordance with Section 6 in Appendix II to this Circular; receive information from the System and follow the guidance below:

c.1.1) If the declaration is sorted into channel 1 and approved by the System, the customs declarant shall print the notice of approval and present it to the customs office from which goods are transported (hereinafter referred to as “dispatching customs office”) in order to seal and certify the goods being transported;

c.1.2) If the declaration is sorted into channel 2, the customs declarant shall present the documents specified at Point b of this Clause to the dispatching customs office for inspection, provide additional information about the customs seal number notified by the customs office, and present goods for the customs office to seal and certify;

c.1.3) If the shipment is suspected of violations of law, the customs declarant shall present the goods to the dispatching customs office for physical inspection;

c.1.4) Additional declaration of transport shall be made at the request of the customs office.

c.2) Responsibility of the port and warehouse operation enterprise

If the port and warehouse operation enterprise is connected to the customs office for exchange of electronic customs data, the port and warehouse operation enterprise shall update information about departure of exported goods or confirm arrival of imported goods on the System;

c.3) Responsibilities of the dispatching customs office:

c.3.1) Examine the documents if required by the System and instruct the customs declarant to provide additional information about the customs seal number and other information on the declaration of goods transport (if any).

Physical inspection shall be carried out as specified in Article 29 of this Circular if violations of law is suspected. The result of physical inspection shall be written on the inspection result sheet (according to form No. 06/PGKQKT/GSQL provided in Appendix V to this Circular) and sent to the Customs Branch to which goods are transported (hereinafter referred to as “receiving customs office”) where procedures are carried on.

c.3.2) Approve the declaration of goods transport on the System;

c.1.2) Seal the goods according to additional information provided by the customs declarant about the customs seal number;

c.3.4) Update information about the dispatched goods on the System if the port and warehouse operation enterprise is connected to the customs office for exchange of electronic customs data;

c.3.5) Monitor the transport of goods under customs supervision;

c.3.6) Carry out search for the shipment if no feedbacks from the receiving customs office are received after the expected transport period.

c.4) Responsibilities of the receiving customs office:

c.4.1) Check and compare the customs seal (if any);

c.4.2) Update information about the arrival of goods on the System if the port and warehouse operation enterprise is connected to the customs office for exchange of electronic customs data;

c.4.3) Physical inspection shall be carried out as specified in Article 29 of this Circular if violations of law are suspected. The result of physical inspection shall be written on the inspection result sheet (according to form No. 06/PGKQKT/GSQL provided in Appendix V to this Circular).

d) Additional declaration, cancellation of declaration of independent transport:

d.1) Additional declaration or cancellation of the declaration of goods transport shall be made before information about arrival of goods at the destination is update on the System;

d.2) The customs declarant may make additional declaration and cancel information about the transport found by the customs declarant or according to guidance sent by the customs office via the System;

d.3) The Director of the receiving customs office shall decide additional declaration or cancellation of the transport declaration.

2. Customs procedures applicable to multi-modal transport:

a) Procedures customs for multi-modal transport shall be applicable to goods specified at Points b.1, b.2, b.5, b.6 Clause 1 Article 50 of this Circular;

b) Documents and customs procedures for multi-modal transport shall be followed concurrently with customs procedures for exported goods or imported goods in a corresponding manner; information about multi-modal transport shall be provided in accordance with Appendix II to this Circular. If the System does not support declaration of information about multi-modal transport, the customs declarant shall request a transport of goods under customs supervision on the declaration (with specific time, route, source, and destination). The customs declarant shall present goods for the customs office to seal them in the cases specified in Clause 3 Article 52 of this Circular in order for the receiving customs office to carry on the procedures;

c) Regarding exported goods

c.1) Regarding exported goods that have undergone physical inspection at the Customs Branch where the customs declaration is registered and must be sealed by the customs

c.1.1) Responsibilities of the dispatching customs office:

c.1.1.1) Seal the goods, update information about transfer of goods under supervision on the System.

If goods are bulk cargo, oversized/overweight goods that cannot be sealed, the customs officer shall specify the names, quantities, categories, codes, origins (if any) of goods, or take pictures of goods, and update them on the System or enclosed them with the transfer note;

c.1.1.2) Give goods to the customs declarant for transport to the border-gate of exportation;

c.1.1.3) Monitor the transport of goods under customs supervision;

c.1.1.4) Carry out search for the shipment if goods do not arrive at the border-gate of exportation after the expected transport period.

c.1.2) Responsibilities of the receiving customs office:

c.1.2.1) Receive goods presented by the customs declarant;

c.1.2.2) Check the customs seal and compare with information about the dispatch of goods on the System;

c.1.2.3) Update information about the arrival of goods on the System;

c.1.2.4) Cooperate with the dispatching customs office in tracking down the goods if they do not arrive at the destination after the expected transport period.

c.2) Regarding exported goods exempt from customs sealing:

The customs declarant shall be responsible for transporting goods to the border-gate of exportation.

d) Regarding imported goods:

d.1) Regarding imported goods being inspected outside the border-gate area and goods that must be sealed by the customs:

d.1.1) Responsibilities of the Customs Branch where the customs declaration is registered:

d.1.1.1) Update information on the System for the Customs Branch where goods are stored to seal and transfer goods to the customs declarant for transport to the inspection place;

d.1.1.2) Receive goods transported by the customs declarant, check the customs seal and compare with information about dispatch of goods on the System;

d.1.1.3) Update information about the arrival of goods on the System;

d.1.1.4) Monitor information about transported goods; cooperate with the Customs Branch where goods are stored in tracking down the goods if they do not arrive at the inspection place after the expected transport period.

d.1.2) Responsibilities of the Customs Branch where goods are stored:

d.1.2.1) Seal the goods, update information about dispatch of goods on the System, and give goods to the customs declarant for transporting to the inspection place;

d.1.2.2) Monitor information about transported goods; take charge of tracking down the goods if they do not arrive at the inspection place after the expected transport period.

d.2) Regarding imported goods exempt from customs sealing:

The customs declarant shall carry out customs procedures as prescribed and take goods through the customs-controlled area at the border-gate after permission is granted by the customs office.

e) Additional declaration, cancellation of the declaration of multi-modal transport is similar as those of declaration of exported goods and declaration of imported goods prescribed in this Circular.

3. Regarding goods specified in Clause 1, Points c.1 and d.2 Clause 2 of this Article, if the dispatching customs office and the receiving customs office has not exchanged information about the transport of goods via the System or the System is not working as specified in Clause 2 Article 25 of Decree No. 08/2015/ND-CP and thus declaration of transport of goods under customs supervision cannot be made via the System, the dispatching customs office shall use the form No. 10/BBBG/GSQL provided in Appendix V to this Circular) to transfer goods to the receiving customs office for carrying on the procedures. After receiving the transfer note and goods, the receiving customs office shall confirm and notify the dispatching customs office.

4. The General Department of Customs shall provide guidance on declaration of transport of goods under customs supervision in the cases specified at Point b.7 Clause 1 Article 50 of this Circular.

Article 52. Customs supervision of exported goods or imported goods

1. Regarding exported goods:

a) Responsibilities of the customs declarant or deliverer:

a.1) Regarding exported goods that are exempted from physical inspection and released or granted customs clearance, goods approved for independent transport, after goods are gathered inside the customs-controlled area, the customs declarant or deliverer shall provide information about the container list and declaration number according to form No. 29/DSCT/GSQL provided in Appendix V (if goods are transported in containers) or list of goods according to form No. 30/DSHH/GSQL provided in Appendix V (for other goods) or the notice of approved transport declaration for the port and warehouse operation enterprise (in the seaport, airport, off-airport cargo terminal) or for the customs office of the border-gate by road, river, inland waterways, or international railway station;

The customs declarant shall print the list of containers, list of goods from www.customs.gov.vn or on the declaration system of the customs declarant. If the list of containers or list of goods is changed after goods have entered the customs-controlled area, the customs declarant shall print or request a customs officer at the Customs Branch at the border-gate to print the list of containers, list of goods from the System.

In case of paper declaration, the customs declarant shall present the declaration, on which customs clearance or release of goods is certified by the Customs Branch where the customs declaration is registered.

a.2) Regarding exported goods subject to physical inspection that have been released or granted customs clearance at the Customs Branch outside the border-gate area, the customs declarant shall be responsible for protecting the status quo of goods and the customs seal throughout the transportation. After the customs office checks and certifies, the customs declarant shall perform the tasks specified at Point a.1 of this Clause;

a.3) Regarding exported goods of which physical inspection is carried out by the Customs Branch at the border-gate, the customs declarant shall follow Point a.1 of this Clause as soon as goods are released or granted customs clearance;

a.4) If the port and warehouse operation enterprise does not have an IT system that meet standards for management, supervision of exported goods or imported goods moved in or out of the port or depot area, the customs declarant or deliverer shall provide information about the number of declarations, list of containers, and list of goods for the customs office;

a.5) If the declaration of exported goods has been released or granted customs clearance, goods have been moved into customs-controlled area at the border-gate of exportation, but the deliverer is only able to load part of the shipment onto the vehicles, and the remaining amount is loaded onto another vehicles, then the deliverer shall send a written request to the Customs Branch where goods are stored for continued monitoring the remaining goods until all of them are exported.

b) Responsibilities of the port and warehouse operation enterprise at seaports, international airports, off-airport cargo terminals:

b.1) According to the list of numbers of declarations, list of containers and list of goods provided by the customs declarant or the deliverer, the port and warehouse operation enterprise shall check the list of containers, list of goods, and compare information about the customs declaration on the System to decide the loading of goods granted customs clearance onto the vehicles;

b.2) After goods are moved into the port or depot area for loading onto the vehicles, the port and warehouse operation enterprise shall confirm goods passing through the customs-controlled area or update information about arrival of goods on the System of the customs office;

b.3) If the System is not working, the customs office must be promptly informed to take appropriate actions to avoid congestion of exported goods and departing vehicles.

c) Responsibilities of the customs office:

c.1) Comply with the regulations in Clause 3 Article 34 of Decree No. 08/2015/ND-CP;

c.2) Regarding goods exported through a border-gate by road, river, inland waterway, international railway, and the case specified at Point a.4 of this Clause, the Customs Branch at the border-gate of exportation shall compare information provided by the customs declarant or deliverer as specified at Point a.1 of this Clause with information on the System to supervise exported goods; confirm goods passing through the customs-controlled area, or update information about goods on the System.

Regarding goods exported through a border-gate by road, river, inland waterway, international railway, the confirmation of goods passing through the customs-controlled area or update of information about goods on the System shall be made after goods have been transported through the border-gate of exportation to the importing country;

Regarding the case specified at Point a.4 of this Clause in which goods are exported through a border-gate by sea, by air, or by off-airport cargo terminal, after confirming goods passing through the customs-controlled area on the System, the customs officer shall make a confirmation on the list of container or list of goods and give it to the customs declarant. The customs declarant shall give it to the port and warehouse operation enterprise to load exported goods on to the vehicles. In case of declaration of independent transport, according to the notice of approved transport declaration provided by the customs declarant, the customs officer shall confirm goods passing through the customs-controlled area on the System, append his/her signature and seal on the first page of the notice, give it to the customs declarant. The customs declarant shall give it to the port and warehouse operation enterprise in order to load exported goods onto the vehicles;

c.3) Regarding the case specified at Point a.5 of this Clause and goods are exported through a border-gate other than the border-gate where goods are stored, relevant Customs Branches shall cooperate in monitoring goods until they are actually exported as prescribed; additional declaration is not required;

c.4) Regarding goods being crude oil exported at offshore extraction sites or in overlapping areas and the goods specified in Clause 1 Article 93 of this Circular, the Customs Branch where the customs declaration is registered shall confirm goods passing through customs-controlled area after the customs declaration of exported goods are granted customs clearance (direct supervision is not carried out).

Regarding aviation fuel for outbound airplanes, the Customs Branch where the airplane departs shall monitor every time goods are delivered.

2. Regarding imported goods:

a) Responsibilities of the customs declarant:

a.1) Regarding imported goods that have been released or granted customs clearance or moved to storage or an inspection place, goods approved for independent transport, imported goods eligible for tax exemption or not liable to duty, incurring zero tax, or eligible for 275-day time limit that undergo physical inspection by the Customs Branch at the border-gate at the request of the Customs Branch where the customs declaration is registered: Information about number of customs declaration, list of containers according to form No. 29/DSCT/GSQL provided in Appendix V (for goods transported in containers) or list of goods according to form No. 30/DSHH/GSQL provided in Appendix V (for other goods) or notice of approved transport declaration shall be provided for the port and warehouse operation enterprise at the border-gate, seaport, international airport, off-airport cargo terminal, or the customs office at the border-gate (by road, river, inland waterways, or international railway).

The customs declarant shall print the list of containers, list of goods from www.customs.gov.vn or on the declaration system of the customs declarant. If the list of containers or list of goods is changed when the customs declarant receives goods at the border-gate of importation, the customs declarant shall print or request a customs officer at the Customs Branch at the border-gate to print the list of containers or list of goods from the System;

a.2) Regarding imported goods moved outside the port or border-gate area and must be sealed by the customs as specified in Clause 3 of this Article:

a.2.1) Present the goods for the customs office to seal;

a.2.2) Transfer the goods to the Customs Branch to which goods are transported to carry on customs procedures as prescribed;

a.2.3) Preserve the status quo of the goods and the customs seal according to applicable regulations.

a.3) If the port and warehouse operation enterprise does not have an IT system that meet standards for management, supervision of exported goods or imported goods moved in or out of the port or depot area, the customs declarant shall provide information about the number of declarations, list of containers, list of goods for the customs office.

b) Responsibilities of the port and warehouse operation enterprise:

b.1) Check information about the customs declaration on the System according to information provided by the customs declarant specified at Point a.1 of this Clause. Only allow goods to be moved from the customs-controlled area when:

b.1.1) The customs office has granted customs clearance or release of goods, or permitted goods to be taken to inspection place or through the customs-controlled area regarding imported goods eligible for tax exemption or not liable to duty, incurring zero tax, or eligible for 275-day time limit that undergo physical inspection by the Customs Branch at the border-gate at the request of the Customs Branch where the customs declaration is registered.

b.1.2) The quantity of containers, container numbers or amount of bulk cargo, liquid cargo removed from the customs-controlled area that matches information on the customs declaration.

b.2) Notify the Customs Branch at the port or depot or the Customs Branch where the customs declaration is registered if goods are not those specified at Point b.1 of this Clause;

b.3) Certify goods passing through customs-controlled area on the System;

b.4) Cooperate with a customs office in inspecting, supervising goods at the gate of the port and where goods are located outside the customs-controlled area.

c) Responsibilities of the customs office:

c.1) Comply with the regulations in Clause 3 Article 34 of Decree No. 08/2015/ND-CP;

c.2) Regarding imported goods being removed from the customs-controlled area at a border-gate by road, river, inland waterway, international railway, and the case specified at Point a.3 of this Clause, the Customs Branch at the border-gate of exportation shall compare information provided by the customs declarant or deliverer as specified at Point a.1 of this Clause with information on the System to supervise imported goods being removed from the customs-controlled area; confirm goods passing through the customs-controlled area on the System.

In the case specified at Point a.3 of this Clause in which goods are imported through a border-gate by sea, by air, or by off-airport cargo terminal, after confirming goods passing through the customs-controlled area on the System, the customs officer shall make a confirmation on the list of containers or list of goods and give it to the customs declarant. The customs declarant shall give it to the port and warehouse operation enterprise to allow goods to pass through the customs-controlled area. In case of declaration of independent transport, according to the notice of approved transport declaration provided by the customs declarant, the customs officer shall confirm goods passing through the customs-controlled area on the System, append his/her signature and seal on the first page of the notice, give it to the customs declarant. The customs declarant shall give it to the port and warehouse operation enterprise in order to allow goods to pass through the customs-controlled area;

c.3) In case of customs sealing specified in Clause 3 of this Article:

c.3.1) Check the outer condition of goods, compare numbers of containers and seals of the deliverer with information about the customs declaration on the System;

c.3.2) Make and send a transfer note the Customs Branch to which goods are transported for carrying on customs procedures as prescribed;

c.3.3) If goods are bulk cargo, oversized/overweight goods that cannot be sealed, the customs officer shall specify the names, quantities, categories, codes, origins (if any) of goods on the transfer note or take pictures of actual goods and send them together with the transfer note.

d) In case goods are moved out of the customs-controlled area without registering the customs declaration:

d.1) If a competent agency (police authority, court, etc.) issues a decision to use goods serving urgent needs, goods serving national defense and security, the Customs Branch at the border-gate shall supervise goods being moved out of the customs-controlled area according to relevant documents issued by the competent agency;

d.2) Transshipped goods: the customs officer shall issue a Notice of transshipped goods (according to form No. 21/BKTrC/GSQL provided in Appendix V to this Circular) to supervise goods being moved out of the customs-controlled area;

d.3) Imported goods that have been moved into the customs-controlled area and must be re-exported such as wrong goods, lost goods, imported refused goods by the goods owner:

d.3.1) The deliverer of goods owners shall send a written request for re-export to the Customs Branch at the border-gate where goods are stored specifying the reasons. The request must contain the number of the bill of lading, intended export time, border-gate of exportation, vehicles, etc.

d.3.2) according to the written request made by the deliverer or goods owners, the Customs Branch where goods are stored shall:

d.3.2.1) Receive the shipment documents;

d.3.2.2) Conduct a physical inspection of customs offenses are suspected.

If the inspection result shows that goods are consistent with the bill of lading, the customs office shall consider permitting the re-export of the shipment. If the inspection result reveals that goods are inconsistent with the bill of lading or there is information about violations, appropriate actions shall be taken.

3. Customs sealing:

a) Cases of customs sealing:

a.1) Goods are transited through Vietnam’s territory, except for the case specified at Point b.1 of this Clause;

a.2) Exported goods subject to physical inspection are transported from a customs place outside the border-gate area, an inland goods inspection place, or off-airport cargo terminal to the border-gate of exportation, bonded warehouse, CFS, ICD;

a.3) Imported goods are transported from the border-gate of importation to a customs place outside the border-gate area or an inland goods inspection place for physical inspection;

a.4) Imported goods that arrive at the border-gate of importation are transported by the deliverer to the port of destination written on the bill of lading or off-airport cargo terminal, except for the case specified at Point b.2 of this Clause;

a.5) Goods from abroad are transported from the border-gate of importation to a bonded warehouse, non-tariff zone in a border-gate economic zone, CFA warehouse, duty-free shop, and vice versa;

a.6) Point d Clause 1 Article 83 of this Circular submit a dossier temporary import of goods for re-export.

If customs sealing is mandatory, the customs declarant shall present goods to the customs office in charge of the storage so that goods are sealed before passing through customs-controlled area.

b) Cases in which customs sealing is not required:

b.1) Goods are transited through Vietnam’s territory without changing the vehicles by sea, by air, by river from the first border-gate of importation to the border-gate of exportation;

b.2) Imported goods that arrive at the border-gate of importation at a seaport, river port, airport are transported by the deliverer to the port of destination written on the bill of lading using another vehicles of the same modal or without changing the vehicles from the border-gate of importation to the port of destination;

b.3) Various exported goods or imported goods are transported by means of multimodal transport and exempt from physical inspection when carrying out customs procedures;

b.4) Goods are bulk cargo, oversize/overweight load that cannot be sealed.

4. Suspension of goods passing through customs-controlled area

a) During the process of customs supervision and patrol, if customs offenses are suspected, the Director of Customs Branch where the customs declaration is registered or where goods are stored shall issue a decision to suspend goods from passing through the customs-controlled area (according to form No. 11/QDTDGS/GSQL provided in Appendix V to this Circular), assign personnel to inspect, supervise, and control goods locally, and inform relevant units for cooperation;

b) Inspection shall be carried out according to the information on the decision to suspend goods from passing through customs-controlled area in the presence of relevant units;

c) A record shall be made when the inspection is done; any customs offenses found shall be handled in accordance with law provisions. The result must be notified to relevant units.

5. Customs supervision of exported goods of which the port of loading, border-gate of exportation, or vehicles is changed:

a) If goods have entered the customs-controlled area:

According to the customs declarant’s notification, the Customs Branch where goods are stored shall make and send a transfer note to the Customs Branch of the border-gate of exportation to supervise exported goods;

b) If goods have not entered the customs-controlled area:

The Customs Branch of the border-gate of exportation shall follow Clause 1 of this Article;

c) Additional declaration of exported goods of which the port of loading, border-gate of exportation, or vehicles is changed shall comply with Clause 3 Article 20 of this Circular.

6. In case goods have been moved into the customs-controlled area but the customs declarant requests cancellation of the declaration as specified in Article 22 of this Circular and bring them back to inland:

According to the customs declarant’s request for removing goods from the customs-controlled area and information about cancellation of the declaration of exported goods on the System (or a written confirmation of the cancellation made by the Customs Branch where the customs declaration is registered in case of paper declaration), the Customs Branch where goods are stored pending export shall supervise goods being moved from the storage.

7. In case goods have been moved into the customs-controlled area but the customs declarant wishes to bring them back to inland for repair, recycle, or suspend the export and does not cancel the customs declaration:

a) The customs declarant shall:

a.1) Send a document to the Customs Branch where the customs declaration is registered specifying the (specifying the declaration number, container numbers, goods storage location, whether procedures for tax refund or tax cancellation are completed, and the reasons for bringing goods back to inland, and intended time of export);

a.2) Return the tax refund to the customs office or the inland tax office if tax on exported goods that were imported previously or exported goods domestically manufactured has been refunded.

b) The Customs Branch where the customs declaration is registered shall:

b.1) Notify the Customs Branch where goods are store of the goods being brought back to domestic market for recycling, report or suspended from export. If goods are brought back to inland for repair or recycling, the time limit for repair or recycling shall not exceed 30 days from the day on which goods are removed from the customs-controlled area;

b.2) Receive goods, break the seal for the customs declarant to carry out repair or recycling, and update information on the System.

When the repair or recycling is completed as notified by the customs declarant, the Customs Branch where the customs declaration is registered shall carry out a physical inspection, seal the goods, update information about the dispatch of godson the System, and transfer goods to the customs declarant for transport to the border-gate of exportation;

b.3) In case of suspension from export: The declaration shall be cancelled in accordance with Article 22 of this Circular;

b.4) The Customs Branch where goods are stored shall be requested to move goods from the customs-controlled area.

c) The Customs Branch where goods are stored shall supervise goods being removed from the customs-controlled area, seal and transfer goods to the Customs Branch where the customs declaration is registered;

d) If the Customs Branch where the customs declaration is registered and the Customs Branch where goods are stored have not exchanged information about goods via the System, the transfer note form No. 10/BBBG/GSQL provided in Appendix V to this Circular shall be used to transfer goods. After receiving the transfer note and the goods, the Customs Branch shall confirm, respond, and enclose it with the customs dossier.

8. When goods are removed from the customs-controlled area, if the customs office finds that the container numbers do not match the declaration, the customs office shall request the customs declarant to present delivery documents provided by the deliverer in order to compare information about the consignee’s name, number of the bill of lading, name of the vehicles, container numbers, quantity of packages on the delivery documents with the customs declaration on the System. If information is consistent, the customs officer shall update the container numbers on the System and allow goods to be removed from the customs-controlled area. If information is inconsistent or violations of law are suspected, the customs officer shall request the Director of the Customs Branch where goods are stored to cooperate with the Customs Branch where the customs declaration is registered to carry out an inspection and take appropriate actions.

Article 53. Basis for determining exported goods

1. If goods are exported by sea, air, railway, inland waterways, transshipment port, transshipment area; goods supplied for outbound ships or airplanes; exported goods transported together with the deliverer through air border-gate; exported goods sent to bonded warehouses; exported goods sent to CFS warehouse, the basis for determination of exported goods is the declaration of exported goods granted customs clearance certified that goods have passed through the customs-controlled area on the System.

2. Regarding goods exported through a border-gate by road or by river, the basis is the declaration of exported goods that have been granted customs clearance and certified by a customs officer that goods have passed through the customs-controlled area on the System when goods are transported across the border to the importing country.

3. Regarding indirect export (indirect export means a situation in which goods are manufactured by a local manufacturer in Vietnam under a contract with a foreign partner and then delivered to a local importer in Vietnam for further processing at the request of the foreign party), goods sold from the domestic market into a non-tariff zone, a border economic zone, an export-processing zone, or an EPE, the basis is the export or import declaration that has been granted customs clearance.

4. In case of paper declaration:

a) Regarding goods specified in Clauses 1 and 2 of this Article, the basis is the declaration of exported goods that have been granted customs clearance and certified by a customs officer of the border-gate of exportation that goods have passed through the customs-controlled area on. The declaration must contain the date, the official’s signature, and seal). Regarding goods exported through a border-gate by road or by river, the basis is the declaration of exported goods that have been granted customs clearance and certified that goods have been exported in reality;

b) Regarding goods specified in Clause 3 of this Article, the basis is the declaration of exported goods that have been granted customs clearance.

Chapter III

CUSTOMS PROCEDURES, CUSTOMS INSPECTION AND SUPERVISION OF GOODS PROCESSED UNDER CONTRACTS WITH FOREIGN TRADERS, MATERIALS AND SUPPLIES IMPORTED FOR MANUFACTURING OF DOMESTIC EXPORTED GOODS; EXPORTED GOODS AND IMPORTED GOODS OF EXPORT PROCESSING ENTERPRISES

Section 1. GENERAL PROVISIONS

Article 54. Imported raw materials or supplies

Raw materials or supplies imported for inward processing or manufacturing of domestic exported goods include:

1. Materials, semi-finished products, components, knock-down kits directly used for inward processing operations or manufacturing operations and are converted into the exported goods.

2. Raw materials or supplies that are directly used for inward processing or manufacturing operations but are not converted into the products of part of the products.

3. Imported finished products attached to exported products, packed together with exported products that are made of imported raw materials or supplies, or packed together with products that are made of raw materials or supplies bought inland or self-supplied by the exporter to create full packs to be exported.

4. Packages or supplies used as packages of exported products.

5. Raw materials or supplies imported for repair, recycling of exported products.

6. Samples imported for inward processing or manufacturing of domestic exported goods.

Article 55. Consumption rates for inward processing, manufacturing of domestic exported goods

1. Consumption rates for inward processing, manufacturing of domestic exported goods include:

a) Material consumption rate means the practical number of materials necessary for manufacturing a unit of product;

b) Supplies consumption rate means the practical number of supplies necessary for manufacturing a unit of product;

c) Rate of loss means ratio of loss of materials or supplies, including natural loss, loss due to formation of waste, rejects to the manufacturing norm or material/supply consumption norm. If the amount of waste or rejects is already included in the material or supplies consumption norm, it shall not be included in the rate of loss.

The material/supplies consumption rate and rate of loss shall be kept by the enterprise and presented when customs office carries out an inspection or request explanation for the calculation of the materials consumption norm, supplies consumption norm, and rate of loss.

2. Rate of derivation of materials from preliminary material means the amount of a material used for manufacturing of domestic exported goods that is derived from a preliminary material.

3. Before manufacturing, the taxpayer must estimate the consumption rate and rate of loss of every product code. If changes are made during the manufacturing process, such norms and rates must be adjusted and documents about such changes must be retained.

4. The legal representative of the taxpayer shall be responsible for the accuracy of the consumption rates and rates of loss applied and apply such norms and rates for purposes of inward processing or manufacturing of domestic exported goods only. Every violation shall be handled in accordance with law.

5. The taxpayer shall determine the amount of refundable tax or cancelled tax pursuant to regulations of this Circular and according to the practical rate of consumption of imported materials and supplies serving manufacturing of domestic exported goods.

1. Responsibilities of the trader:

a) Inform the Customs Branch where import procedures are to be carried out of the facility where exported goods are processed/manufactured (hereinafter referred to as “processing/manufacturing facility”) as specified in Article 58 of this Circular (hereinafter referred to as “supervisory Customs Branch”) via the System according to form No. 12/TB-CSSX/GSQL provided in Appendix V to this Circular. EPEs are not required to make such notification.

If there is a request for tax refund as specified at Point c.2 and Point c.5 Clause 5 Article 114 of this Circular, the manufacturer of goods to be exported must notify the manufacturing facility before submitting the dossier of request for tax refund and the statement as prescribed in this Circular;

b) If raw materials or supplies, exported goods must be stored outside the said manufacturing facility, the storage location must be notified to the supervisory Customs Branch (according to form No. 12/TB-CSSX/GSQL in Appendix V to this Circular;

c) Take legal responsibility for info provided in the notification of the processing/manufacturing facility, or the location where raw materials or supplies, machinery, equipment, or exported products are stored (hereinafter referred to as “storage location”);

d) Adjust information on the System according to responses of the customs office.

2. Responsibilities of the customs office:

a) Receive notification of the processing/manufacturing facility and the storage location;

b) Check the information within 02 working hours after receiving the notification; post the necessary adjustments on the System if the information provided is insufficient.

c) Carry out an inspection at the processing/manufacturing facility if required as specified in Article 39 of Decree No. 08/2015/ND-CP and Article 57 of this Circular;

d) Carry out an inspection at the storage location outside the manufacturing facility if it is suspected that the raw materials or supplies and exported products are not stored at the location notified to the customs office.

Article 57 Inspection at the processing/manufacturing facility, inspection of processing/manufacturing capacity

1. Cases of inspection at the processing/manufacturing facility, inspection of processing/manufacturing capacity:

a) The entity executes the first processing contract;

b) The entity is permitted to apply the 275-day period for the first time to goods imported for manufacturing of domestic exported goods;

c) The cases specified at Point b Clause 1 Article 39 of Decree No. 08/2015/ND-CP.

2. Inspection procedures

a) The inspection decision form No. 13/KTCSSX/GSQL provided in Appendix V to this Circular shall be sent directly, by registered mail, or fax to the customs declarant within 03 working days from the day on which it is signed and at least 05 working days before the inspection date;

b) The inspection shall be carried out after 05 working days from the issuance date of the inspection decision. The inspection duration shall not exceed 05 working days.

3. Inspection contents

a) Check the address of the processing/manufacturing facility on written on the notification or on the Enterprise Registration Certificate;

b) Inspect the workshops, machinery and equipment:

b.1) Examine documents proving the legal right to use the workshops, premises, storage of raw materials or supplies, machinery and equipment;

b.2) Inspect the right to ownership of or right to use machinery and equipment, the quantity of machinery and equipment, manufacturing lines at the processing/manufacturing facility; inspect the condition, capacity of machinery and equipment.

In the course of inspection, the customs office shall examine declaration of imported goods (in case of import) invoices, receipts for purchase of machinery and equipment, or compare with the accounting records (in case of domestic purchase); finance lease contract (in case of finance lease); asset, workshop lease contracts (in case of lease). The effective period of the finance lease contract, asset/workshop lease contract must not be equal to or longer than the export contract;

c) Inspect the personnel participating in the manufacturing line according to the employment contracts or the payroll;

d) Inspect the accounting records or software program for management of inventory of goods, raw materials or supplies, machinery, and equipment.

4. Inspection record:

At the end of the inspection, the customs officer shall inspect record (according to form No. 14/BBKT-CSSX/GSQL provided in Appendix V to this Circular). The record shall contain the inspection result which truthfully reflects the reality and specify that:

a) Whether the inspected entity has the lawful right to use the premises;

b) Whether the inspected entity has the lawful right to own or use machinery, equipment and manufacturing lines at the facility, whether they are suitable for the raw materials or supplies imported for inward processing or manufacturing of domestic exported goods (if such machinery, equipment, manufacturing lines are invested by the entity);

c) The quantity of machinery, equipment, and workers.

The inspection record must bear signatures of the inspecting official and the legal representative of the inspected entity.

5. The inspection result shall be handled in accordance with Clause 3 Article 39 of Decree No. 08/2015/ND-CP and updated on the System.

Article 58. Customs places

1. Customs places for import:

a) Regarding raw materials or supplies, machinery, and equipment imported for inward processing; materials and supplies imported for manufacturing of domestic exported goods, the importer may choose to follow import procedures at one of the following Customs Branches:

a.1) The Customs Branch in the same district with the importer’s headquarter, branch, or manufacturing facility;

a.2) The Customs Branch at the border-gate or the Customs Branch at the ICD;

a.3) The Customs Branch in charge of goods processed and manufactured for export affiliated to the Customs Departments in the same province with the manufacturing facility or the border-gate of importation.

b) Regarding EPEs:

b.1) Imported goods of EPEs; machinery and equipment temporarily imported to serve manufacturing, construction of workshops (even if they are directly imported by the contractor); goods under warranty or repair shall carry out customs procedures at the supervisory Customs Branches of the EPEs;

b.2) In case an EPE exercises its rights to import goods as prescribed in Decree No. 23/2007/ND-CP and the Ministry of Industry and Trade’s other regulations, the customs declaration shall be registered at the location specified in Article 22 of the Customs Law, Article 4 of Decree No. 08/2015/ND-CP, and Clause 1 Article 19 of this Circular.

2. Customs places for export:

a) Regarding processed/manufactured goods for export, the exporter may choose to follow import procedures at the most convenient Customs Branches;

b) Regarding EPEs:

b.1) Exported goods of EPEs; machinery and equipment re-exported after being temporarily imported to serve manufacturing, construction of workshops (even if they are directly imported by the contractor) shall carry out customs procedures at the moist convenient Customs Branch of the EPEs;

b.2) In case an EPE exercises its rights to export goods as prescribed in Decree No. 23/2007/ND-CP and the Ministry of Industry and Trade’s other regulations, the customs declaration shall be registered at the location specified in Article 22 of the Customs Law, Article 4 of Decree No. 08/2015/ND-CP, and Clause 1 Article 19 of this Circular.

Article 59. Inspection of the use and inventory of raw materials or supplies, machinery, equipment, and exported goods

1. Cases of inspection

a) A high-risk entity has imported materials, machinery and equipment that has not had exported products after the manufacturing cycle;

b) There is an unusual increase or decrease in import of raw materials or supplies, machinery, equipment or export of products by the subject compared to such entity’s manufacturing capacity;

c) The subject is suspected of selling raw materials or supplies, machinery, equipment or products to the domestic market without making customs declaration;

d) The subject is found declaring exported products inaccurately and against the regulations.

2. Inspection contents

a) Inspect the customs dossier, dossier of request for tax refund or tax cancellation, statement, accounting records, accounting books, logbooks of raw materials or supplies, machinery, and equipment, and other documents that must be retained by the customs declarant as specified in Clause 5 Article 3 of this Circular;

b) Inspect the norm of exported products and documents related to the establishment of such norms

c) Inspect the correspondence of exported products and imported raw materials or supplies;

d) If the customs office is unable to give a conclusion after performing the inspection tasks specified at Points a, b, and c of this Clause, the customs office shall:

d.1) Inspect raw materials or supplies, machinery, and equipment on the manufacturing line;

d.2) Inspect the inventory;

d.3) Inspect the quantity of finished products that are yet to be exported.

3. Competence to inspection

The Director of the Customs Department shall issue the decision on inspection. The Director of Customs Branch shall organize the inspection.

4. Inspection time

The site inspection shall not last longer than 05 working days. In complicated cases, the duration may be extended for up to 05 more working days.

5. Inspection procedures

a) Inspection of the use of raw materials or supplies, or inventory at the customs declarant’s premises shall be carried out in accordance with the decision of Director of Customs Department; the supervisory Customs Branch shall notify the customs declarant within 03 working days from the date the decision is signed and carry out the inspection within 05 days from the date the decision is sent;

b) If the customs declarant has multiple manufacturing facilities or subcontracts processing to one or some manufacturers (subcontractors), the site-inspection shall be carried out at each and every of them to determine the quantity of goods in the inventory;

c) The inspection must be carried out properly and on schedule without affecting the customs declarant’s business operation;

d) The inspection shall be recorded in writing by the representatives of the customs declarant and the inspectorate.

6. Time limits for giving inspection result

a) Within 05 working days from the end of the site inspection, the Customs Branch shall send a draft conclusion to the customs declarant (by fax or registered mail);

b) Within 05 working days after receiving the draft conclusion, the customs declarant must provide explanation in writing;

c) If the customs declarant fails to provide explanation within 05 working days from the deadline or the customs office accepts the explanation, the Director of the Customs Department shall issue the official conclusion;

d) If the basis for giving conclusion is insufficient, the Director of Customs Department may consult with a competent agency. Within 15 days after receiving opinions from the competent agency, the Director of Customs Department shall issue the official conclusion.

7. Handling inspection result

a) If the inspection result shows that the use of imported raw materials or supplies, machinery, and equipment corresponds with domestic exported goods, matches the notification of manufacturing facility and capacity; information, documents, and quantity of goods in inventory (in storage, on the manufacturing lines, semi-finished products, incomplete products, etc.) are consistent with accounting records, documents about exported goods or imported goods, the figures provided shall be accept, a conclusion shall be given, and the inspection result shall be updated on the System;

b) If the inspection result reveals that the use of imported raw materials or supplies, machinery, and equipment does not correspond with domestic exported goods, matches the notification of manufacturing facility and capacity; information, documents, and quantity of goods in inventory (in storage, on the manufacturing lines, semi-finished products, incomplete products, etc.) are inconsistent with accounting records, documents about exported goods or imported goods, the declaration shall be requested to provide explanation.

b.1) If the customs office accepts the explanation, Point a of this Clause shall be followed;

b.2) If the customs office does not accept the explanation or the customs declarant does not provide explanation, the customs office shall make decisions on tax settlement, impose administrative penalties in accordance with regulations of tax law, customs, and existing documents, or request a competent person to take actions in accordance with law provisions.

8. Updating inspection information

The decision on inspection, conclusion about the inspection of use, inventory of raw materials or supplies, machinery, equipment, and exported goods shall be update on the System within 01 day from the date the decision on inspection or the conclusion is signed.

Article 60. Finalization Statement

1. Deadline for submitting the statement

Every year, the customs declarant shall submit the statement of the use of raw materials or supplies, machinery, equipment, and exported goods to the customs office within 90 days from the end of the fiscal year.

2. The statement shall be submitted at the Customs Branch where import procedures are carried out as specified in Article 58 of this Circular or the supervisory Customs Branch of the EPE.

3. Responsibilities of the customs declarant:

a) Submitting the statement

a.1) Regarding entities that import materials for manufacturing of domestic exported goods:

The statement shall contain the total value of purchase, sold, and inventory of raw materials or supplies, semi-finished products, and finished products (according to form No. 15/BCQT-NVL/GSQL provided in Appendix V to this Circular) and be submitted to the customs office via the System. The statement must match the customs declarant’s accounting records.

In case the subject imported goods raw materials or supplies for manufacturing and sells the products to another entity for inward processing or manufacturing of domestic exported goods, both of them must submit the statements as prescribed in this Article;

a.2) Regarding inward processors:

The entity that monitor imported raw materials or supplies provided by the hiring party, hired machinery and equipment for performing the processing contract, semi-finished products, and finished products at off-balance accounts or on its internal control system, the statement of raw materials or supplies shall be made according to form No. 15/BCQT-NVL/GSQL in Appendix V to this Circular, and the statement of machinery and equipment shall be made according to form No. 16/BCQT-MMTB/GSQL in Appendix V to this Circular. If the internal control system does not monitor quantity of goods by value, the result given by such system may be used for making the statement of the quantity of goods that are not monitored by value;

a.3) EPEs shall make statements in accordance with Points a.1 and a.2 depending on whether materials are imported for inward processing or manufacturing of domestic exported goods.

b) Making and retaining records of imported raw materials or supplies according to the Ministry of Finance’s regulations on accounting, audit, which specify the numbers of declarations of imported raw materials or supplies;

c) Making and retaining records of exported products according to the Ministry of Finance’s regulations on accounting, audit, which specify the contract and order numbers;

d) Making and retaining documents about the treatment of waste and rejects;

dd) Presenting all accounting documents about the imported raw materials or supplies, machinery, and equipment and exported products when the customs office carries out in inspection at the enterprise’s premises.

5. Responsibilities of the customs office:

a) Receive statements of use of imported raw materials or supplies, machinery, and equipment submitted by the customs declarant;

b) Examine the statements:

b.1) Cases in which the statement is examine:

b.1.1) The entity submits the first statement;

b.1.2) The figures on the statement are abnormally different from the System;

b.1.3) An inspection is carried out at the taxpayer’s premises after the decision on tax refund or tax cancellation;

b.1.4) The statement is examined based on risk management, assessment of law compliance of the taxpayer.

Statements of priority enterprises shall be examined in accordance with the Ministry of Finance’s regulations on application of preferential policies to export and import procedures.

b.2) If an inspection is carried out at the taxpayer’ premises before a decision on tax refund or tax cancellation is issued, the Director of Customs Department shall examine both the statement and the eligibility for tax refund or tax cancellation;

b.3) The inspection results shall be handled following the procedures for inspecting the use of raw materials or supplies, machinery, and equipment at the customs declarant’s premises in Clauses 2, 3, 4, 5, 6, 7, 8 Article 59 of this Circular.

If the statement examination is combined with examination of the dossier of request for tax refund or tax cancellation for raw materials or supplies imported for manufacturing of domestic exported goods at the customs declarant’s premises, in addition to the procedures specified in Article 59 of this Circular, the customs office must examine the accuracy and truthfulness of the dossier of request for tax refund or tax cancellation and the customs declarant’s fulfillment of the conditions for tax refund or tax cancellation.

Section 2. CUSTOMS PROCEDURES APPLICABLE TO GOODS PROCESSED IN VIETNAM UNDER CONTRACTS WITH FOREIGN TRADERS

Article 61. Procedures for importing raw materials or supplies, machinery, equipment, and exporting products

1. Procedures for importing raw materials or supplies

a) The customs dossier, customs procedures applicable to imported raw materials or supplies (including finished products provided by the hiring party that are attached on or packed with the processed products as full packs; raw materials or supplies imported by the processor) are similar as customs procedures for importing goods prescribed in Chapter II of this Circular;

b) Customs procedures applicable to raw materials or supplies provided by the Vietnamese entity as requested by the foreign party in the form of indirect export shall comply with Article 86 of this Circular;

c) The customs declarant is not required to carry out customs procedures for raw materials or supplies manufactured or purchased by the processor in Vietnam (unless they are bought from an EPE or an enterprise in a non-tariff zone). If raw materials or supplies are subject to export duty, the processor shall declare, calculate export duty and other taxes on the declaration of export of processed products according to the tax rates, values of the raw materials or supplies that are converted into the products;

d) If raw materials or supplies are imported for inward processing before the processing contract is signed:

The processor may use raw materials or supplies imported in such manner to perform the processing contract. Tax policies, procedures for tax refund are similar as import of materials for manufacturing of domestic exported goods specified in Article 114 of this Circular if the period from the registration date of the import declaration to the registration date of the declaration of exported goods made of such raw materials or supplies does not exceed 02 years.

If the manufacturing cycle of domestic exported goods is longer than 02 years, the customs declarant must provide documents proving the manufacturing cycle for the Customs Branch where the processing contract is finalized and obtain permission.

2. Procedures for importing hired/borrowed machinery and equipment for performing processing contracts

Customs procedures for import of hired/borrowed machinery and equipment serving performance of the processing contract are the same as procedures for temporary import and re-export specified in Article 50 of Decree No. 08/2015/ND-CP.

3. Procedures for exporting processed products

Customs dossiers and customs procedures are the same as those of exported goods prescribed in Chapter II of this Circular.

Article 62. Customs procedures for subcontracting processing

1. If the Vietnamese subject that signs a processing contract with a foreign trader hires another entity to process goods (the latter is referred to as “subcontractor”) according to Point b Clause 2 Article 32 of Decree No. 187/2013/ND-CP, the entity that signs the contract with the foreign trader shall carry out customs procedures, finalize the processing contract with the customs office, and take responsibility for the performance of such contract. The entity that signs the processing contract with the foreign trader shall submit a written notification of the name, address of the headquarter and address of the manufacturing facility of itself and the subcontractor, the time for delivering raw materials or supplies to the subcontractor to the customs office. The notification shall be submitted before the raw materials or supplies are delivered.

2. Goods delivered between Vietnamese subjects are exempted from customs procedures.

3. If an EPE is hired or subcontracts processing to another subject (subcontractor), regulations in Article 76 of this Circular shall be complied with.

Article 63. Procedures for delivering and receiving goods forwarded for further processing

1. Goods forwarded for further processing specified in Article 33 of Decree No. 187/2013/ND-CP must carry out customs procedures for indirect export specified in Article 86 of this Circular.

2. The legal representatives of the deliverer and the consignee shall make sure the products are made of the raw materials or supplies under the processing contract and are used for processing purpose only.

3. If the processing contract to forward products for further processing and the contract to process forwarded products are executed by the same processor, such processor shall perform the tasks of both the deliverer and the consignee.

Article 64. Procedures for disposal of excess raw materials or supplies, waste, rejects, hired/borrowed machinery and equipment

1. Deadline for disposal of raw materials or supplies, machinery, and equipment when the processing contract is completed or expired

a) Within 15 days from the completion date or expiration date of the processing contract, the customs declarant shall send a written notification to the Customs Branch where the contract is finalized of the solution for disposal of excess raw materials or supplies, hired/borrowed machinery and equipment, waste and rejects (according to form 17/XL-HDGC/GSQL provided in Appendix V to this Circular);

b) Within 15 days from the notification date, the customs declarant must complete the customs procedures for disposal of such excess raw materials or supplies, hired/borrowed machinery and equipment, waste and rejects (if any).

2. Disposal solutions

Pursuant to Vietnamese law and terms of the processing contract, excess raw materials or supplies, hired/borrowed machinery and equipment, waste and rejects shall be:

a) Sold in Vietnam;

b) Re-exported to abroad;

c) Used for another processing contract in Vietnam;

d) Donated or given away in Vietnam; or

dd) Destroyed in Vietnam.

3. Customs procedures

a) Customs procedures for selling giving excess raw materials or supplies, waste, rejects, hired/borrowed machinery and equipment above the norm in Vietnam:

a.1) If the buyer or the recipient is the processor, the procedures for repurposing in Article 21 of this Circular shall be followed;

a.2) If the buyer or the recipient is another entity in Vietnam, the procedures for indirect export specified in Article 86 of this Circular shall be followed.

b) Procedures for re-exporting raw materials or supplies, machinery, and equipment that are temporarily imported to abroad while performing the processing contract or after the processing contract is completed or expires are the same as procedures for re-exporting goods to abroad specified in Clause 2 and Clause 3 Article 50 of Decree No. 08/2015/ND-CP;

c) Procedures for using raw materials or supplies, machinery, and equipment for another processing contract with the same or another hiring entity while performing the processing contract or when the processing contract is completed or expires are the same as procedures for indirect export specified in Article 86 of this Circular;

d) Destruction of raw materials or supplies, waste and rejects in Vietnam:

d.1) The customs declarant shall send a notification of the solution for destruction of raw materials or supplies, waste, and rejects specifying the method and location of destruction to the Customs Branch where imported raw materials or supplies are declared. The customs declarant shall be responsible for the destruction as prescribed by the law on environmental protection;

d.2) The customs office shall supervise the destruction of raw materials or supplies, waste, and rejects under risk management rules based on assessment of the customs declarant’s conformity with law.

The customs declarant that is a prioritized enterprise shall assume the sole responsibility for the destruction without supervision by the customs office.

dd) Regarding excess raw materials or supplies imported by a trader for inward processing purpose, when the processing contract is completed or expired:

dd.1) if the hiring entity has paid for the raw materials or supplies, regulations of Clause 1 and Clause 2 of this Article shall be complied with;

dd.2) if the hiring entity has not paid for the raw materials or supplies, a new declaration shall be registered and the procedures in Chapter II of this Circular shall be followed.

4. Regarding processing contracts with the same hiring entity and processors, materials of the same type, specifications, and quality may be offset against each other.

5. If the amount of excess raw materials or supplies imported for inward processing does not exceed 3% of the total amount of raw materials or supplies imported, customs procedures for repurposing are exempted when such excess raw materials or supplies are sold onto the domestic market. However, taxes must be declared and paid to inland tax offices in accordance with regulations of tax law.

Article 65. Actions against late submission of the statement of use of raw materials or supplies, machinery, and equipment, late initiation of customs procedures for excess raw materials or supplies, hired/borrowed machinery and equipment upon completion or expiration of the processing contract

1. Actions against late submission of statements of use of imported raw materials or supplies, machinery, and equipment:

a) Within 30 days from the deadline for submitting the statement, the Customs Branch to which the statement is supposed to be submitted shall:

a.1) Send an invitation to the customs office to the customs declarant for making an offence notice;

a.2) If the customs declarant does not go to the customs office within 15 days from the date the invitation is sent, the customs office shall carry out an investigation at the business premises;

a.3) Inspect the documents and goods of the next export or import shipment of the customs declarant;

a.4) Cooperate with a competent agency in investigating, verifying, and tracking down the entity that is suspected of making a getaway.

b) Measures to be taken after urging, investigation, verification, and tracking down:

b.1) If the customs declarant fails to report the use of raw materials or supplies, machinery, and equipment but still operates and the customs office has taken the measures specified at Points a.1, a.2, a.3 Clause 1 of this Article without result, a site inspection of the use of raw materials or supplies, machinery, and equipment shall be carried out;

b.2) If the customs declarant is missing or has made a getaway, the customs dossier shall be completed and transferred to a competent agency for investigation into smuggling and tax evasion as prescribed by Criminal Code;

2. If customs procedures for excess raw materials or supplies, hired/borrowed machinery and equipment are not initiated on schedule, the Customs Branch to which the statement is submitted shall:

a) Make an offence notice;

b) Request the Director of the Customs Department to conduct a site inspection of the use of imported raw materials or supplies, machinery, and equipment.

Article 66. Actions against the hiring party that abandons excess raw materials or supplies, hired/borrowed machinery and equipment, or processed products

1. The processor shall pay taxes in order to sell such excess raw materials or supplies, hired/borrowed machinery and equipment, or processed products which are abandoned by the hiring entity on the domestic market, except for the case in Clause 5 Article 64 of this Circular. Customs procedures and tax policies shall be determine at the time of repurposing specified in Article 25 of Decree No. 08/2015/ND-CP and Article 21 of this Circular.

2. In case of destruction, Point d Clause 3 Article 64 of this Circular shall be complied with.

Section 3. Customs procedures applicable to outward processing

Article 67. Procedures for export of raw materials or supplies for processing and import of processed products

1. Procedures for exporting raw materials or supplies:

a) Customs procedures shall be followed at the most convenient Customs Branch;

b) The customs dossier is similar as that of exported goods prescribed in Chapter II of this Circular. If the exported raw materials or supplies are on the list of exported goods subject to licensing by the Ministry of Industry and Trade or a specialized state management agency, the license must also be presented;

b) Customs procedures are the same as export procedures prescribed in Chapter II of this Circular;

c) In case if indirect outward processing, the hiring entity in Vietnam is not required to carry out procedures for indirect outward processing at the customs office.

2. Procedures for importing processed products

a) Customs procedures shall be followed at the Customs Branch where export procedures were carried out;

b) The customs dossier and customs procedures shall comply with Chapter II this Circular;

c) Tax policies on processed imported goods shall comply with Clause 4 Article103 of this Circular.

The quantity of raw materials or supplies exported from Vietnam that are converted into the processed imported goods shall be determined by the customs declarant according to the material consumption rate.

Article 68. Procedures for temporarily exporting processed products for recycling, then re-importing them into Vietnam.

1. Customs procedures shall be followed at the most convenient Customs Branch;

2. Procedures for temporary export of processed products for recycling:

a) The customs dossier must comprise the documents specified in Clause 1 Article 16 of this Circular and documents for receipt of goods for recycling made by the foreign party: 01 original;

b) Customs procedures are the same as export procedures prescribed in Chapter II of this Circular;

c) The time limit for recycling shall be registered with the customs office, which must not exceed 275 days from the date of temporary export.

3. Procedures for re-import of recycled processed products shall comply with Chapter II of this Circular (except for import license, tax declaration, tax verification).

In case recycled processed products are sold overseas, the customs declarant shall register a declaration of exported goods and carry out customs procedures in Chapter II of this Circular (except for physical inspection of goods).

Article 69. Customs procedures for disposal of excess raw materials or supplies, rejects, wastes; machinery and equipment temporarily exported to serve outward processing

1. Disposal methods:

Based on the processing contract and pursuant to Vietnamese law, excess raw materials or supplies, hired/borrowed machinery and equipment, waste and rejects shall be:

a) Sold, donated/given out, or destructed overseas;

b) Imported into Vietnam;

c) Used for another processing contract overseas.

2. Customs procedures:

a) The overseas sale, donation, destruction of excess raw materials or supplies, machinery and equipment, waste and rejects serving the performance of the processing contract shall comply with regulations of the country in which goods are processed. For excess raw materials or supplies, machinery, equipment, the customs declarant shall register a new customs declaration and carry out customs procedures prescribed in Chapter II of this Circular;

b) Customs procedures for import into Vietnam:

b.1) If excess raw materials or supplies, machinery, equipment are exported from Vietnam; waste and rejects are derived from raw materials or supplies exported from Vietnam, procedures for re-import shall be followed.

b.2) If excess raw materials or supplies, machinery, equipment are purchased overseas; waste and rejects are derived from raw materials or supplies purchased overseas, customs procedures are the same as those for commercial import of goods;

b.3) Regarding shipments of machinery and equipment subject to physical inspection, the customs officer shall compare the categories, numbers, symbols of machinery and equipment on the declaration of temporary export with the re-imported machinery and equipment

c) Procedures for using excess raw materials or supplies, hired/borrowed machinery and equipment for another processing contract:

The customs declarant shall send a written notification to the Customs Branch where the statement is submitted of the names, specifications, quality of raw materials or supplies; amount of excess raw materials or supplies, hired/borrowed machinery and equipment under the process contract No. (or its appendices) which are used for the processing contract No. … with …. (specify the overseas processor).

Section 4. customs procedures, customs inspection and supervision of materials and supplies imported for manufacturing of domestic exported goods

Article 70. Procedures for importing raw materials or supplies and exporting products

1. Procedures for importing raw materials or supplies

a) The customs dossier and customs procedures shall comply with Chapter II this Circular;

b) Determination of manufacturing facility under the ownership of the taxpayer for application of 275-day time limit:

b.1) The taxpayer must have the lawful right to use the premises and workshops (including workshops associated with land). If the workshop or manufacturing facility is leased from another entity, the lessee might be eligible for 275-day time limit if the land lease contract is legitimate and has a longer effective period than the manufacturing contract;

b.2) The taxpayer must have the lawful right to own or use machinery and equipment at the manufacturing facility that is suitable for the imported raw materials or supplies according to the commitment.

2. Procedures for exporting products

a) Domestic exported goods include:

a.1) Products entirely made of raw materials or supplies for manufacturing of domestic exported goods;

a.2) Products that are combination of:

a.2.1) Raw materials or supplies imported for manufacture of domestic exported goods;

a.2.2) Raw materials or supplies imported for sale;

a.2.3) Raw materials or supplies that are obtained domestically.

a.3) Products entirely made of raw materials or supplies imported for sale on condition that the period from the registration date of the declaration of imported raw materials or supplies to the registration date of the declaration of exported products made of such raw materials or supplies does not exceed 02 years;

a.4) Products made of imported raw materials or supplies that are directly exported by the importer of such raw materials or supplies or that are sold to another exporter.

b) The customs dossier and customs procedures shall comply with Chapter II this Circular;

c) Tax policies shall comply with section 4 Chapter VII of this Circular.

Article 71. Procedures for handling waste and rejects sold domestically

1. When rejects and waste within the norm for manufacture of goods for export (such as peanut shells) are sold domestically, customs procedures are exempt. However, taxes must be declared and paid to inland tax offices in accordance with regulations of tax law.

2. Article 21 of this Circular shall be followed when waste and rejects above norm for manufacture of goods for export are sold domestically.

Article 72. Procedures for destruction of raw materials or supplies, waste, rejects

1. Procedures for destruction are the same as procedures for destruction of excess raw materials or supplies, waste, rejects of from processing operations specified at Point d Clause 3 Article 64 of this Circular.

2. The customs declarant shall be responsible for the destruction in accordance with law provisions.

Article 73. Customs procedures for selling products to another exporter

1. The entity that imported goods raw materials or supplies for manufacturing of domestic exported goods shall follow import procedures, establish norms, and report the use of imported raw materials or supplies as prescribed by this Circular.

2. The entity that directly exported goods products shall follow export procedures prescribed by this Circular. The declaration of exported goods must specify that goods are made of materials imported for manufacturing of domestic exported goods and the seller’s name.

Section 5. Customs procedures, customs supervision of exported goods and imported goods of EPEs

Article 74. General principles

1. Goods imported for manufacturing of domestic exported goods of an export processing enterprise (EPE) must carry out customs procedures and be used for manufacturing only, except for the following cases in which the EPE may choose whether to carry out customs procedures:

a) Goods are traded among EPEs;

b) Goods are building materials, stationery, food, consumables bought from the domestic market to build, serve the operation of the EPE and life of the EPE’s employees;

c) Goods circulated within an EPE or among EPEs in the same export-processing zone;

d) Goods of EPEs of the same corporation or group of companies in Vietnam;

dd) Goods received and dispatched by the EPE for repair, classification, packaging, or repackaging.

If customs procedures are not followed, the EPE shall keep a log of goods received and dispatched in accordance with the Ministry of Finance’s regulations on goods trading, accounting, audit; Purposes and sources of supply of goods must also be specified.

2. Goods purchased by the EPE from the domestic market or imported goods from above on which taxes have been fully paid and regulations on management of exported goods or imported goods are adhered to when goods are sold on the domestic markets are exempted from customs procedures.

3. The supervisory customs office of the export-processing zone and EPEs only supervises at the gate of the export-processing zone, and only supervises an EPE if requested by the Director of the Customs Department.

Article 75. Customs procedures applicable to exported goods and imported goods of EPEs

1. Regarding raw materials or supplies imported to form fixed assets; imported consumables

Customs procedures shall comply with Chapter II this Circular. The customs declarant must provide sufficient information on the customs declaration on the System, except for the tax rate and tax amount.

2. Regarding goods imported from abroad to serve manufacture of workshop, office building, and installation of equipment of EPEs:

Customs procedures shall comply with Chapter II this Circular.

If the importer imported goods to serve manufacture of workshops, office buildings, installation of equipment for an EPE, the quantity of imported goods must be reported to the supervisory customs office of the EPE (according to form No. 18/NTXD-DNCX/GSQL in Appendix V to this Circular) after the work is transferred to the EPE.

3. Regarding goods traded between an EPE and a domestic enterprise:

The EPE and the domestic enterprise shall follow the corresponding customs procedures for indirect export as specified in Article 86 of this Circular.

4. If customs procedures for trading goods between two EPEs are followed, they shall carry out procedures for indirect export specified in Article 86 of this Circular.

5. Regarding waste and rejects that may be sold domestically

Customs procedures shall comply with Chapter II of this Circular, according to which the EPE shall follow export procedures and the domestic enterprise shall opens a corresponding declaration of imported goods.

6. Goods that were exported by an EPE and must be re-imported for repair and then re-exported shall carry out customs procedures for exported goods that are returned specified in Article 47 of Decree No. 08/2015/ND-CP.

Article 76. Customs procedures for an EPE hiring a domestic processor, a domestic enterprise hiring an EPE as a processor, an EPE hiring another EPE as a processor

1. Goods processed by a domestic enterprise hired by an EPE:

a) The domestic enterprise shall carry out customs procedures in accordance with regulations on inward processing prescribed in Section 2 of this Chapter;

b) The EPE is not required to carry out customs procedures when dispatching raw materials or supplies to inland for processing and when receiving processed products from inland.

In case goods are dispatched by the EPE to the domestic enterprise for inward processing or repair but are not received back, a new declaration shall be register for repurposing as prescribed in Chapter II of this Circular.

2. Goods processed by an EPE hired by an inland enterprise:

a) The domestic enterprise shall carry out customs procedures for hiring overseas processors;

b) The EPE is not required to carry out customs procedures when receiving raw materials or supplies from the domestic enterprise for processing and when dispatching processed products to the domestic enterprise.

3. Regarding goods processed by an EPE hired by another EPE:

Both the hiring EPE and the hired EPE are not required to carry out customs procedures when dispatching, receiving materials and supplies to perform the processing contract.

Article 77. Customs procedures for exported goods or imported goods by the right to export, right to import, and right to distribute of EPEs

1. EPEs that are permitted to engage in goods trading and activities directly related to goods trading in Vietnam as prescribed in the Government's Decree No. 23/2007/ND-CP dated February 12, 2007 must record them separately from manufacturing; a separate area must be provided for storing exported goods or imported goods by the right to import, right to export, and right to distribute.

2. The EPE shall fulfill its tax liability and other financial obligations to goods trading and relevant activities in accordance with law provisions. Investment incentives, tax incentives, and other financial incentives applicable to manufacturing of domestic exported goods shall not apply to goods trading and relevant activities of the EPE.

3. Customs procedures shall comply with Chapter II this Circular. The Ministry of Finance provides additional guidance on exercising the EPE’s right to export and right to import as follows:

a) The EPE must write on the electronic customs declaration the number of the written permission for goods trading and relevant activities issued by a competent agency to a foreign-invested company which has registered the right to export, right to import;

b) Goods have been imported by the right to import of the EPE:

b.1) Customs procedures are exempted when goods are sold to domestic enterprises;

b.2) When goods are sold to another EPE or an enterprise in a non-tariff zone, customs procedures for indirect export specified in Article 86 of this Circular shall be applied.

c) Customs procedures for goods of the EPE exercising its right to export:

c.1) Customs procedures are exempted when purchasing goods from a domestic enterprise. However, customs procedures for exporting goods for sale shall be followed when such goods are exported;

c.2) Procedures applicable to domestic enterprises buying goods from an EPE shall be followed when goods are purchased from another EPE for export; Procedures for goods export shall be followed when such goods are exported; tax shall be declared (if any).

Article 78. Handling imported assets, goods when an EPE is converted to a non-EPE and vice versa

1. When an EPE is converted into another type of business and vice versa:

a) The EPE shall determine the imported assets and goods in inventory and propose a solution to the customs office;

b) The customs office and the EPE shall follow corresponding customs procedures;

c) Imported assets and goods shall be identified and liquidated before the conversion is permitted by a competent agency.

2. When converting a non-EPE into an EPE:

a) The enterprise shall report the quantity of raw materials or supplies in inventory; the customs office shall carry out an inspection and deal with tax issues;

b) Before converting, all outstanding taxes and fines must be paid to the customs office. The customs office shall only apply preferential tax and customs policies on EPEs to the enterprise after all tax and customs liabilities are fulfilled.

Article 79. Liquidation of machinery, equipment, and vehicles that form fixed assets

1. The methods of liquidation, goods subject to liquidation, conditions for liquidation, and documents about liquidation of imported goods of EPEs are specified in Circular No. 04/2007/TT-BTM dated April 04, 007 of the Ministry of Trade (now the Ministry of Industry and Trade).

2. Liquidation procedures shall be followed at the supervisory Customs Branch of the EPE.

3. Liquidation procedures:

a) The EPE shall send its supervisory Customs Branch a written notification of the reasons for liquidation, method of liquidation, names and quantity of goods to be liquidated, numbers and dates of customs declarations;

b) If goods are liquidated in the form of export, the enterprise shall open a declaration of exported goods;

c) If goods are liquidated by selling, giving, or donating within Vietnam, the EPE shall follow the procedures for liquidation and repurposing as follows:

c.1) The EPE shall registers a new customs declaration, tax policies, imported goods management policies applicable at the time of registration of the declaration of repurposing (unless all import management policies were fulfilled at the time of import); the basis for tax calculation is the dutiable values, tax rates, and exchange rates at the time of registering the declaration of repurposing;

c.2) After repurposing, customs procedures are not required when goods are sold, given, or donated within Vietnam.

d) In case of destruction, Point d Clause 3 Article 64 of this Circular shall be complied with.

Article 80. Procedures for hiring a warehouse outside an EPE (hereinafter referred to as “external warehouse”) to store materials and products of the EPE; customs management of external warehouse inventory

The EPE may lease an external warehouse in a industrial park, export-processing zone, hi-tech zone, economic zone within the scope of its supervisory Customs Branch to store raw materials or supplies and finished products serving its primary manufacturing operation. Manufacturing process must not take place at the leased warehouse.

1. Procedures for warehouse leasing:

a) The warehouse must:

a.1) Have sturdy surround walls that separate the warehouse from the outside;

a.2) Have surveillance cameras that work constantly at the gates which can be accessed by the customs office where necessary.

b) Responsibilities of the EPE:

The EPE shall send a written notification of the location, area, infrastructure, mechanism for warehouse inventory management, and lease duration to its supervisory Customs Branch;

c) Responsibilities of the supervisory Customs Branch:

At the request of the EPE, the supervisory Customs Branch of the EPE shall inspect the condition of the warehouse, compare with the conditions specified at Point a of this Clause in order to consider permitting the EPE to lease an external warehouse.

2. Entitlement to permit lease of external warehouse lease:

a) The supervisory Customs Branch of the EPE is entitled decide the lease of external warehouse if the leased warehouse under the management of the Customs Branch;

b) The Customs Department is entitled to the lease of external warehouse if the leased warehouse is under the management of the Customs Department;

c) The General Department of Customs is entitled to the lease of external warehouse if the leased warehouse is under the management of two Customs Departments or more;

3. Management of goods sent to the external warehouse:

a) The EPE shall manage and monitor goods received and dispatched from the warehouse on the accounting record system and submit a report on the 15^th of the first month of the next quarter via the inventory system to its supervisory Customs Branch. If this function is not supported by the System, form No. 19/NXTK-DNCX/GSQL in Appendix V to this Circular shall be used;

b) The supervisory Customs Branch of the EPE shall carry out extraordinary inspections of goods in the warehouse if it is suspected that goods are sent to the warehouse improperly or goods in the warehouse are sold domestically.

Chapter IV

CUSTOMS PROCEDURES, CUSTOMS INSPECTION AND SUPERVISION OF SOME TYPES OF EXPORT AND IMPORT

Section 1. Customs procedures, customs supervision of temporarily imported goods and temporarily exported goods

Article 81. Certification of export, import or temporary import of goods

1. Any trader that wishes to obtain a temporary import number as specified in Article 13 of Circular No. 05/2014/TT-BCT shall submit a dossier for certification of export, import, or temporary import of goods to the General Department of Customs, whether directly or by post. The application must comprise:

a) A written request for certification of export, import or temporary import of goods: 01 original;

b) An Enterprise Registration Certificate or Enterprise Registration Certificate: 01 photocopy.

2. Within 05 working days after receiving the application, the General Department of Customs shall check information on the System and issue a certification or respond the enterprise if conditions for certification are not fulfilled.

Article 82. Customs procedures for temporary import of goods

Customs procedures for temporary import of goods are the same as those for export, import of goods prescribed in Chapter III of Decree No. 08/2015/ND-CP. Additional guidance:

1. Customs procedures for temporary import

a) Customs procedures for temporary import of goods shall be followed at the Customs Branch at the border-gate where temporarily imported goods are stored;

b) In addition to the documents specified in Clause 2 Article 16 of this Circular, The customs dossier of temporarily imported goods must also contain:

b.1) A contract for sale of imported goods: 01 photocopy;

b.2) Regarding temporarily imported goods subject to conditions prescribed by the Government:

b.2.1) A certificate of temporary import number issued by the Ministry of Industry and Trade: 01 photocopy;

b.2.2) A license for temporary import of goods issued by the Ministry of Industry and Trade (if the temporary import of goods is subject to licensing by the Ministry of Industry and Trade): 01 original.

2. Customs procedures for re-export

a) Procedures for re-export shall be followed at the Customs Branch at the border-gate of at which goods are temporarily imported (hereinafter referred to as “ border-gate of temporary import”) or the Customs Branch at the border-gate where goods are re-exported (hereinafter referred to as “ border-gate of re-export”). Regarding temporarily imported goods subject to conditions prescribed by the Government, customs procedures for re-export shall be carried out at the Customs Branch at the border-gate temporary import;

b) Customs dossier or re-exported goods shall comply with Clause 1 Article 16 of this Circular.

If customs declaration form No. HQ/2015/NK in Appendix V hereof is used when carrying out customs procedures for temporary import of goods, the same form shall also be used when carrying out customs procedures for re-export;

c) While following procedures for re-export, the trader must provide information about the number of the declaration of temporarily imported goods, ordinal number of corresponding lines on the declaration of temporarily imported goods and the declaration of re-exported goods on the System; the System shall deduct a corresponding quantity of goods from the declaration of temporarily imported goods.

A declaration of temporarily imported goods may be used for partial shipments of re-export. A declaration of re-exported goods is made according to only one corresponding declaration of temporarily imported goods. The Customs Branch where the declaration of re-exported goods is registered shall check information about the declaration of temporarily imported goods on the System to carry out procedures for re-export.

In case of paper declaration, the customs declarant shall specify the number of the declaration of re-exported goods on the export declaration (according to form No. HQ/2015/XK in Appendix IV to this Circular).

3. border-gate of temporary import and border-gate of re-export

a) Goods temporarily imported for re-export must be temporarily imported and re-exported through the border-gates and customs clearance points specified in Clause 8 Article 11 of the Government's Decree No. 187/2013/ND-CP dated November 20, 2013 and guidance of the Ministry of Industry and Trade;

b) If the border-gate of re-export on the declaration of exported goods is changed but the transport modal remains unchanged, the customs declarant shall send a written request to the Customs Branch where the customs declaration is registered. If approved, the customs officer shall change the supervision point on the System. The Customs Branch at the border-gate where goods are stored shall make a transfer note, seal the goods, and send them to the Customs Branch at the border-gate of exportation.

If the border-gate or re-export on the declaration of exported goods is changed and customs clearance is yet to be granted, the customs declarant shall make additional declaration as specified in Article 20 of this Circular. If the change of the border-gate of re-export results in the change of the transport modal, the customs declarant shall change the border-gate of exportation and destination on the declaration of exported goods;

c) If temporarily imported goods are re-exported to a non-tariff zone, bonded warehouse, or export-processing zone, the border-gate of exportation shall be such non-tariff zone, bonded warehouse, or export-processing zone.

4. Retention period

a) The period of retention of goods temporarily imported for re-export in Vietnam shall comply with Clause 4 Article 11 of Decree No. 187/2013/ND-CP;

b) The trader that wishes to extend the retention period in Vietnam shall send a written request to the Customs Branch at the border-gate where procedures for temporary import were followed. The Director of the Customs Branch shall consider granting the request and return it to the trader for following procedures for re-export of goods; 01 photocopy shall be kept together with the customs dossier. A shipment shall be granted not more than 02 extensions, each of which shall not exceed 30 days;

c) Temporarily imported goods subject to conditions of the Government or goods restricted from import prescribed by the Ministry of Industry and Trade must be re-exported through the border-gate of temporary import within 15 days from the expiration of the retention period (goods must not be re-exported to border-gates other than the border-gate of temporary import). Goods that are not re-exported shall be confiscated and handled as prescribed. If goods must be destroyed, the trader shall incur the destruction cost. The Customs Branch at the border-gate of temporary import shall take charge and cooperate with the Customs Branch at the border-gate of re-export in transferring, managing, supervising, and handling goods that are retained in Vietnam after the deadline for retention expires.

5. Retention location

Goods temporarily imported for re-export (including those that have completed procedures for temporary import or re-export pending export) shall be kept at one of the following location:

a) An area under customs supervision at the border-gate;

b) An ICD or bonded warehouse at the border-gate of importation or border-gate of exportation;

c) Warehouse/depot of the traders within a customs area issued with temporary import number by the Ministry of Industry and Trade.

6. Supervision of goods transported from the border-gate of temporary import to the border-gate of re-export

When temporarily imported goods are transported from the border-gate of temporary import to the border-gate of re-export, the customs declarant/deliverer must declare the transport on the System in the following cases:

a) Goods are temporarily imported at a border-gate and re-exported at another;

b) Goods are temporarily imported at a border-gate and transported to a storage location, then re-exported at another border-gate.

Customs procedures for transporting goods shall comply with regulations on transport of goods under customs supervision in Article 51 of this Circular.

7. Customs procedures for selling goods domestically instead of being re-exported shall comply with Clause 5 Article 21 of this Circular.

Article 83. Management of goods temporarily imported for re-export

1. Management of goods temporarily imported for re-export

a) Container must not be divided throughout the transport of goods from the border-gate of temporary import to the customs-controlled area, the re-export location at the border-gate, or the customs clearance post.

If the container must be changed or divided, the trader shall submit a written request specifying the reasons, time of beginning and finishing changing or dividing the container for re-export; the Director of Customs Branch in charge of the storage place shall grant permission if the following conditions are satisfied:

a.1) Goods are being kept at one of the locations specified in Clause 5 Article 82 of this Circular or customs clearance posts; goods gathering and inspection places at the border-gate;

a.2) The container or the vehicles is qualified for customs sealing. Otherwise, appropriate customs supervision measures shall be taken by Customs Branch at the border-gate of re-export to ensure tightness and conformity with law.

b) Goods being moved to another vehicles or container shall be put under supervision;

c) Temporarily imported goods that have been grated customs procedures must be gathered at goods inspection places, bonded warehouse at the border-gate of temporary import or border-gate of re-export, and be exported through the border-gate within 08 working hours since goods arrives at the border-gate of exportation. If goods cannot be exported or not completely exported, the Director of Customs Branch at the border-gate of exportation shall consider extending the deadline if the trader submits a written request, provided they are completely exported within the time limit for retention in Vietnam. While awaiting the next re-export, goods must be kept at the places specified in Clause 5 Article 82 of this Circular;

d) If the border-gate of re-export is different from the border-gate of temporary import, the Customs Branch at the border-gate of temporary import shall seal the goods and request the customs declarant to move them to the border-gate of re-export.

2. Customs management of temporarily imported goods sent to bonded warehouses and ICDs

a) If procedures for temporary import have been completed and procedures for re-export have not, goods may only be sent to a bonded warehouse or ICD under the management of the Customs Branch at the border-gate of importation. Physical inspection shall be carried out at the bonded warehouse or ICD under the management of the Customs Branch at the border-gate; If procedures for re-export have been completed, goods must be sent to a bonded warehouse or ICD at the border-gate of exportation;

b) Customs management of temporarily imported goods sent to bonded warehouses and ICDs.

b.1) Responsibilities of the trader:

b.1.1) After customs procedures for temporary import or re-export have been completed, if the time limit for goods retention in Vietnam has not expired, the trader send the Customs Branch where temporary import procedures were followed a written request for permission to send goods to a bonded warehouse or ICD pending re-export, specifying the number of the declaration of temporary import or declaration of re-export;

b.1.2) Preserve the status quo of goods while goods are stored at the bonded warehouse or ICD;

b.1.3) Submit 01 photocopy and present the original or the declaration of temporary import or re-export for which customs procedures have been completed to the supervisory Customs Branch of the bonded warehouse or ICD in case of paper declaration;

b.1.4) If goods have been sent to a bonded warehouse or ICD pending re-export, the trader must complete procedures for re-export before goods are moved from the bonded warehouse or ICD to the border-gate of exportation.

b.2) The Directors of the Customs Branches where procedures for temporary import and re-export were followed shall make a certification on the written request and give it to the enterprise for sending goods to the bonded warehouse or ICD. It shall also be photocopied and attached to the customs dossier;

b.3) The supervisory Customs Branch of the bonded warehouse shall carry customs procedures for goods for which procedures for temporary import have been completed similarly to goods sent to the bonded warehouse from the domestic market as instructed in Article 91 of this Circular;

b.4) Supervision of goods for which procedures for temporary import have been completed that are moved from the border-gate of importation to the bonded warehouse or ICD pending re-export and vice versa is similar as imported goods under customs supervision prescribed in this Circular;

b.5) Refund and cancellation of taxes on goods temporarily imported for re-export shall be only be made after goods have been re-exported in reality.

Article 84. Management, monitoring of declarations of temporarily imported goods and temporarily exported goods

1. Temporarily imported goods

a) The Customs Branch where procedures for temporary import are followed shall monitor the quantity of temporarily imported goods on the System.

In case of paper declaration, the quantity of temporarily imported goods shall be monitored on the paper declaration.

b) After re-export, the trader shall carry out procedures for refund or cancellation of import duty on the declaration of temporarily imported goods as prescribed in section 4 Chapter VII of this Circular at the Customs Branch where procedures for temporary import are followed.

2. Temporarily imported goods, temporarily exported goods specified in Article 49, Article 50, Article 51, Article 52, Article 53, Article 54, Article 55 of Decree No. 08/2015/ND-CP:

a) The Customs Branch where procedures for temporary import or temporary export are followed shall monitor the quantity of temporarily imported goods and temporarily exported goods on the System. If procedures for re-export or re-import are not followed by expiration of the period of temporary import or temporary export that was registered with the customs office, or such period is not extended, the customs office shall take appropriate actions in accordance with law provisions and impose tax (if any).

In case of paper declaration (including declaration on the Statement of temporarily imported or temporarily exported empty containers/flex tanks of the circulating vehicles specified at Point a and Point b Clause 1 Article 49 of Decree No. 08/2015/ND-CP) the procedures for re-export, re-import and monitoring of quantity of temporarily imported/exported goods shall be carried out using the paper declaration;

b) Regarding temporarily imported goods, temporarily exported goods subject to import duty, export duty, the customs declarant shall carry out procedures for tax refund or tax cancellation as prescribed in section 4 Chapter VII of this Circular after goods are re-exported or re-imported;

c) If temporarily imported goods, temporarily exported goods are repurposed or sold domestically instead of being re-exported, the procedures specified in Article 21 of this Circular shall be followed.

3. In case of paper declaration, after goods are re-exported or re-imported:

a) If goods are eligible for tax exemption or not subject to import duty, export duty, or subject to 0% import duty, export duty:

a.1) The customs declarant shall submit a set of documents to the Customs Branch where procedures for temporary import or export were followed, which must comprise:

a.1.1) A written request for finalization of the declaration of temporarily imported/exported goods, numbers of the declaration of temporarily imported/export goods and the declaration of re-import/re-export: 01 original;

a.1.2) The declaration of re-export/re-import: 01 photocopy;

a.1.3) Payment documents for goods temporarily imported for re-export: 01 photocopy.

a.2) Responsibilities of the customs office:

Within 02 working days after receiving sufficient documents, the customs officer shall examine and compare the documents submitted by the customs declarant and the documents at the customs office in order to finalize and make certification on the declaration of temporarily imported/exported goods at the customs office.

b) Regarding temporarily imported goods, temporarily exported goods subject to import duty, export duty, the customs declarant shall carry out procedures for tax refund or tax cancellation as prescribed in section 4 Chapter VII of this Circular at the Customs Branch where procedures for temporary import or export were followed after goods are re-exported or re-imported.

Section 2. Customs procedures, customs inspection and supervision of goods exported, imported for other purposes

Article 85. Customs procedures for import of duty-free goods serving project execution

1. Imported duty-free goods serving project execution include goods imported as fixed assets; raw materials or supplies, components, semi-finished products serving manufacturing of the preferential projects.

2. Customs procedures

a) Customs places:

Customs procedures for import shall be carried out at the most Customs Branch affiliated to the Customs Departments where the list of duty-free goods or supervisory Customs Branch of the border-gate where goods are stored, the port of destination written on the bill of lading, transport contract, or the Customs Branch in charge of project goods affiliated to the Customs Department where goods are imported.

Regarding imported goods serving oil and gas activities that are eligible for tax exemption as specified in Clause 11 Article 103 of this Circular, the customs declarant shall select the most Customs Branch to carry out customs procedures;

b) Customs procedures for import of duty-free goods serving project execution are similar as those applicable to imported goods. Besides, the customs declarant must provide information about the List of duty-free goods on the on the declaration of imported goods.

The System will automatically deduct the quantity of imported goods corresponding to the quantity of goods on the List of duty-free goods. In case of paper list of duty-free goods, the customs office shall make a monitoring sheet and deduct goods quantity as specified in Clause 4 Article 104 of this Circular.

3. Liquidation, repurposing of duty-free imported goods

a) The methods of liquidating, purposing goods, conditions, documents for liquidating duty-free imported goods of foreign-invested projects shall comply with guidance in Circular No. 04/2007/TT-BTM dated April 04, 2007 of the Ministry of Commerce (now the Ministry of Industry and Trade) on export, import, processing, liquidation of imported goods, and sale of goods of foreign-invested companies.

If duty-free goods are imported to serve execution of a domestic project, a new declaration shall be used for declaring tax as specified in Article 21 of this Circular when goods are repurposed;

b) Procedures for liquidating, repurposing goods shall be followed at the customs office where the list of duty-free imported goods or the declaration of imported goods is registered (if registration of the list of duty-free imported goods is not required);

c) Procedures for liquidation and repurposing:

c.1) The enterprise or Liquidation Board shall send the customs office where the declaration of duty-free imported goods was registered the reasons for liquidation or repurposing, names, codes, symbols, quantity, and exempt tax of goods, the number and date of the corresponding declaration;

c.2) In case of export, the enterprise shall open a declaration of exported goods that suits the purpose;

c.3) If goods sold in Vietnam, given, donated, or destructed, tax shall be calculated on a new customs declaration as specified in Article 21 of this Circular. The enterprise shall follow import procedures according to the import purpose, tax policies, policies on management of imported goods applicable at the time of registration of the import declaration, unless all import management policies were fulfilled while following import procedures.

If goods are sold to an enterprise eligible for exemption of import duty, the quantity of duty-free goods must be deducted from the reconciliation monitoring sheet of duty-free goods issued to the transferee enterprise;

c.4) In case of destruction, the enterprise shall take responsibility as prescribed by the environment authority.

Article 86. Customs procedures applicable to indirect export

1. Indirect exported goods include:

a) Processed products: hired/borrowed machinery and equipment; excess materials; waste, rejects under processing contracts specified in Clause 3 Article 32 of Decree No. 187/2013/ND-CP;

b) Goods traded between an inland enterprise and an EPE or an enterprise in a non-tariff zone;

c) Goods traded between a Vietnamese company and a foreign entity without a representative in Vietnam and are requested to be delivered to another enterprise in Vietnam by the foreign entity.

2. Customs procedures for indirect export shall be followed at the most convenient Customs Branch selected by the customs declarant that suit the purpose.

3. Customs dossier

The customs dossier of indirect exported goods shall comply with Article 16 of this Circular.

If goods are traded between an inland enterprise and an EPE or an enterprise in a non-tariff zone, the customs declarant may use VALUE-ADDED TAX invoices or sale invoices as prescribed by the Ministry of Finance instead of commercial invoices.

4. Time limit for completing customs procedures

Within 15 working days from the day on which exported goods are granted customs clearance and delivered, the local importer shall complete customs procedures.

5. Customs procedures

a) The exporter shall:

a.1) Complete the declaration of exported goods and multimodal transport, specifying the destination code of the Customs Branch where import procedures are carried out and the enterprise identification number in accordance with Appendix II to this Circular;

a.2) Carry out procedures for exporting goods as prescribed;

a.3) Deliver goods to the imported after they are granted customs clearance.

b) The importer shall:

b.1) Complete the declaration of imported goods by the deadline, specifying the number of the declaration of indirect export in accordance with Appendix II hereof;

b.2) Carry out procedures for importing goods as prescribed;

b.3) Only sell or use imported goods for manufacturing after they are granted customs clearance.

c) The customs office where export procedures are followed shall carry out export procedures as prescribed in Chapter II of this Circular;

d) The customs office where import procedures are carried out shall:

d.1) Monitor declarations of indirect exported goods for which customs procedures have been completed in order to initiate import procedures;-CP.

d.2) Carry out inspection according to the classification result given by the System. If physical inspection of goods is required and goods have undergone physical inspection at the Customs Branch of export, the Customs Branch of import shall not carry out physical inspection;

d.3) Compile monthly lists of indirect exported goods that have been granted customs clearance (according to form No. 20/TKXNTC/GSQL in Appendix V to this Circular) and send them to the supervisory tax office.

6. In case a prioritized enterprise and its partners, or a conformable enterprise and its partners that are also compliance enterprises who have indirect exported goods that are delivered many times over a certain period of time under a contract/order with the same buyer or seller, goods may be delivered before customs declaration. Customs declaration shall be made within 30 days from the delivery date. The customs declarant may register the declaration of indirect exported goods at the most convenient Customs Branch; tax policies and policies on management of exported goods or imported goods shall be implemented when the customs declaration is registered. The customs office only examines documents related to the delivery of goods instead of carrying out a physical inspection. The exporter and the importer must keep documents proving each delivery (such as commercial invoice, VALUE-ADDED TAX invoice, sale invoice, goods dispatch invoice, etc.) and present them to the customs office on request.

Article 87. Customs procedures applicable to exported goods or imported goods of foreign traders who exercise the right to export or import, foreign-invested companies (except for EPEs exercising the right to export or import specified in Article 77 of this Circular)

1. Customs dossier:

In addition to the documents specified in Article 16 of this Circular, the customs declarant must submit the following documents:

a) Regarding exported goods or imported goods of foreign traders who exercise the right to export or import without representative entities in Vietnam:

a.1) Certificate or registration or right to export or import issued to the foreign trader by the Ministry of Industry and Trade: 01 photocopy;

a.2) A contract with a customs brokerage agent: 01 photocopy.

b) The Certificate of investment in goods trading and relevant activities of the foreign-invested trader who registers the right to export or import goods of a foreign-invested company: 01 photocopy;

c) If customs procedures are followed at the same Customs Branch, the customs declarant shall only submit the documents specified at Point a and Point b when carrying out customs procedures for the first time.

2. Customs procedures:

Customs procedures applicable to exported goods or imported goods of foreign traders who exercise the right to export or import and foreign-invested companies without representative entities in Vietnam shall comply with Chapter II of this Circular; the customs declarant shall specify the documents specified at Point. A.1 and Point b Clause 1 of this Article on the electronic customs declaration (box “License number”).

Article 88. Customs procedures for goods received and dispatched from transshipment ports

1. The enterprise operating the transshipment port shall make 02 originals of the notice of goods transshipment (according to form No. 21/BKTrC/GSQL in Appendix V to this Circular)

2. Goods received and dispatched from the transshipment port is exempted from inspection. If violations of law are suspected, the customs office shall check the quantity of containers, compare the numbers and symbols of containers with the statement, and carry out physical inspection of goods as prescribed.

3. Quarterly within 15 days after the end of the reporting period, the transshipment enterprise must send a report to eh supervisory customs office of the transshipment port on the quantity of goods received, dispatched from, and remain in the transshipment port.

4. Goods that remain in the transshipment port shall be handled in accordance with Article 58 of the Customs Law and the corresponding The Ministry of Finance’s Circular.

Article 89. Customs procedures applicable to transited goods

1. Transited goods that are transported directly from the exporting country to the importing country without passing through any Vietnam’s border-gate are exempted from customs procedures.

2. Customs procedures applicable to transited goods that are that are taken to a depot of a Vietnam's seaport (not bonded warehouse or transshipment area) while being transported from the exporting country to the importing country:

a) The trader shall:

Submit a set of documents to the Customs Branch where goods are imported which must comprise:

a.1) A written request for permission for goods transit (according to form No. 22/CKHH/GSQL in Appendix V to this Circular);

a.2) A bill of lading of the imported goods: 01 photocopy.

b) The Customs Branch at the border-gate shall:

b.1) Receive and examine the documents;

b.2) Certify the import, append the official’s seal and signature on the enterprise’s request;

b.3) Monitor the transited shipment until it is exported from Vietnam;

b.4) Certify that goods have passed through the customs-controlled area on the written request for permission for goods transit after goods are loaded onto the vehicles;

b.5) In case transited goods are exported through a border-gate other than the border-gate of importation but still in the same seaport system under the supervision of Customs Department, the customs officer shall certify that goods have passed through the customs-controlled area on the request after goods are taken to the customs-controlled area at the border-gate of exportation; Goods received and dispatched from customs-controlled areas at border-gates shall be supervised in accordance with Article 52 of this Circular;

b.6) If the transited shipment is suspected of violations, the Director of the Customs Branch at the border-gate shall decide a physical inspection and take appropriate actions as prescribed.

c) Transited goods must be exported from Vietnam within 30 days from the date they are received and inspected by the Customs Branch at the border-gate.

3. Goods that pass through a Vietnam’s border-gate and taken to a bonded warehouse or transshipment area at a Vietnam’s port while being transported from the exporting country to the importing country shall undergo customs procedures applicable to goods received and dispatched from bonded warehouses and transshipment areas of Vietnam’s ports.

4. Transited goods shall be removed from Vietnam through the border-gate of importation.

5. Transited goods are exempted from inspection. Physical inspection shall be carried out as specified in Article 29 of this Circular if violations of law are suspected.

Article 90. Customs procedures for goods received and dispatched from non-tariff zones within border economic zones

1. Principles:

Goods received and dispatched from non-tariff zones within border economic zones must undergo customs procedures, except for the following cases:

a) Cases in which customs procedures are exempt:

a.1) Goods on the list of goods exempt from customs procedures are exported from other sectors of a border economic zone or from inland to a non-tariff zone which is not separated from the outside by hard fences as prescribed in Section I of Appendix I of Circular No. 109/2014/TT-BTC dated August 15, 2014 of the Ministry of Finance;

a.2) Goods that were previously imported on the List of goods dutiable according to section II of Appendix II attached to Circular No. 109/2014/TT-BTC of the Ministry of Finance are taken from a non-tariff zone within a border economic zone to inland;

a.3) Goods derived from inland products specified at Point a.1 of this Clause are taken from a non-tariff zone within a border economic zone to inland.

b) Cases in which customs procedures are optional:

Goods are stationery, food, consumables used by bought by enterprises in a non-tariff zone from inland to serve their operation and life of their employees, except for the case specified at Point a.1 of this Clause.

2. Customs places

a) The entities in the non-tariff zone within a border economic zone must carry out customs procedures at the supervisory Customs Branch of the non-tariff zone when exporting and importing goods;

b) Inland entities that enter into export, import contracts with entities in the non-tariff zone within a border economic zone may carry out customs procedures at the most convenient Customs Branch.

3. Goods taken to a non-tariff zone within a border economic zone from abroad must undergo customs procedures and apply tax and finance polices that are applicable to such border economic zone.

Where the subject imported goods as fixed assets of a project of investment in a non-tariff zone within a border economic zone, such goods must be suitable for the field of investment, scale, and purposes of the project, and must be used for such purposes only.

In case the subject imported goods raw materials or supplies to serve manufacturing, processing, recycling, assembly in a non-tariff zone within a border economic zone, the raw materials or supplies shall be managed and accounted for in accordance with regulations applicable to EPEs specified in Article 60 of this Circular.

4. When taking goods specified in Clause 1 of this Article to a non-tariff zone within a border economic zone from other sectors or from in land and goods traded among non-tariff zones, customs procedures are similar as indirect exported goods specified in Article 86 of this Circular.

5. Goods exported to abroad from a non-tariff zone

a) Goods exported from a non-tariff zone to abroad shall follow corresponding customs procedures that suit the export purpose;

b) Where goods are imported from abroad or inland and then exported at is to abroad, the number and date of the declaration of imported goods or VALUE-ADDED TAX invoice or sale invoice must be written on the declaration of exported goods.

6. Goods exported to inland from a non-tariff zone within a border economic zone:

a) Goods exported to inland from a non-tariff zone must carry out customs procedures, except for goods on the list of goods dutiable upon import from abroad to non-tariff zones within border economic zones as prescribed by the Ministry of Finance;

b) Customs procedures shall comply with Chapter II this Circular. In order for the inland entity to calculate tax payable when following import procedure, the entity in the non-tariff zone shall follow the guidance below:

b.1) In case of goods manufactured, processed, recycled, or assembled in a non-tariff zone without using raw materials or supplies imported from abroad, the declaration of exported goods must specify that goods are manufactured from domestic raw materials or supplies;

b.2) In case of goods manufactured, processed, recycled, or assembled in a non-tariff zone using raw materials or supplies imported from abroad, the entity in the non-tariff zone must calculate and amount of imported materials that are converted into the products being exported to inland (according to form 23/NLNK-PTQ/GSQL in Appendix V to this Circular) and specify that goods are made of imported raw materials or supplies on the declaration of exported goods;

b.3) If customs procedures for taking goods to the non-tariff zone have been completed and then goods are exported at ease to inland, customs procedures are similar as those for indirect exported goods specified in Article 86 of this Circular. The declaration of exported goods must specify that goods are exported at is, the number and date of the corresponding customs declaration;

b.4) The entity in the non-tariff zone must provide the inland enterprise with sufficient documents and data for the inland enterprise to calculate tax payable.

7. Goods processing between entities in non-tariff zones and inland entities

Customs procedures are similar as those applicable to goods processing between EPEs and inland entities specified in Article 76 of this Circular. The inland entities shall carry out customs procedures at the supervisory Customs Branch of non-tariff zones.

8. Customs supervision of goods received and dispatched from non-tariff zones

a) The non-tariff zone must be separated from the outside (except for Lao Bao Special Economic Zone in Quang Tri province and Cau Treo Border Economic Zone in Ha Tinh province to which regulations of the Prime Minister apply) and have customs control gates in order to monitor goods received and dispatched from non-tariff zones;

b) Goods received and dispatched from non-tariff zones, goods transported imported to inland or exported to abroad through non-tariff zones must go through customs control gates and supervised by the customs;

c) When going through a non-tariff zone, goods imported from abroad to inland or goods exported from inland to abroad must stick to the route provided by the supervisory customs office and management board of the non-tariff zone when passing.

9. Separate the Ministry of Finance’s guidance submit a dossier the sale of duty-free goods to tourists that visit non-tariff zones within border economic zones.

Article 91. Customs management of goods entering and dispatched from bonded warehouses

1. Customs procedures for sending goods to a bonded warehouse from abroad

a) The customs declarant shall:

a.1) Complete the declaration of imported goods according to Appendix II and the declaration of multimodal transport as specified at Point a Clause 2 Article 51 of this Circular.

In case of paper declaration as specified in Clause 2 Article 25 of Decree No. 08/2015/ND-CP, the customs declarant shall complete and submit 02 originals of the declaration of imported goods (according to form HQ/2015/NK in Appendix IV to this Circular);

a.2) Submit 01 photocopy of the bill of lading or an equivalent transport document in accordance with law provisions (except for goods imported through a land border-gate)

a.3) Submit 01 photocopy of the certificate of temporary import number issued by the Ministry of Industry and Trade for goods temporarily imported for re-export subject to conditions prescribed by the Ministry of Industry and Trade when they are sent to the bonded warehouse from abroad before exporting to another country;

a.4) Submit 01 original of the inspection exemption notice or the notice of inspection result issued by an specialized agency in accordance with law provisions.

Where single window mechanism is applied, the inspection result notice or inspection exemption notice by a specialized agency shall be sent electronically via the Vietnam National Single Window. The customs declarant is not required to submit it while carrying out customs procedures;

a.5) Update information about goods sent to the bonded warehouse on the goods inventory software on the bonded warehouse owner and send it to the supervisory Customs Branch of the bonded warehouse.

b) The supervisory Customs Branch of the bonded warehouse shall carry out customs procedures prescribed in section 3 Chapter II of this Circular and perform the tasks specified at Point d.1.1 Clause 2 Article 51 of this Circular;

c) The day on which goods are delivered to the bonded warehouse is the date the information about arrival of imported goods is updated by the customs office on the System;

d) Goods that are sent to the bonded warehouse before being exported to another country where the certificate of temporary import number issued by the Ministry of Industry and Trade is required may only be sent to the bonded warehouse in the province where the border-gate of importation or border-gate of exportation is located;

dd) Goods sent to the bonded warehouse from abroad may only be imported through the border-gates prescribed by the Prime Minister and the Ministry of Industry and Trade.

2. Customs procedures for sending goods to a bonded warehouse from a non-tariff zone or inland

a) The customs declarant shall:

a.1) Perform the tasks specified at Point a Clause 1 Article 52 of this Circular when registering the declaration of goods exported from inland or a non-tariff zone;

a.2) Update information about goods sent to the bonded warehouse on the goods inventory software on the bonded warehouse owner and send it to the supervisory Customs Branch of the bonded warehouse.

b) The supervisory Customs Branch shall:

b.1) Access and print information about the declaration of exported goods granted customs clearance on the System in order to monitor goods delivered to the bonded warehouse and kept therein;

b.2) Perform the tasks specified at Point c.1.2 Clause 2 Article 51 of this Circular.

c) The day on which goods are sent to the bonded warehouse is the date the customs office confirms on the System that goods have passed through the customs-controlled area.

3. Customs procedures for exporting goods from a bonded warehouse:

a) The customs declarant shall:

a.1) Submit 01 photocopy of the goods dispatch note as prescribed by the law on accounting specifying the numbers of corresponding declarations of received goods;

a.2) Update information about goods removed from the bonded warehouse on the goods inventory software on the bonded warehouse owner and send it to the supervisory Customs Branch of the bonded warehouse.

a.3) Make a declaration of independent transport of goods under customs supervision as specified in Clause 1 Article 51 of this Circular.

b) The supervisory Customs Branch shall:

b.1) Compare information about goods dispatched from the bonded warehouse on the dispatch note and information in the inventory software;

b.2) Perform the tasks specified at Point c.3 Clause 1 Article 51 of this Circular and receive replies from the Customs Branch at the border-gate of exportation.

c) Goods exported to abroad from the bonded warehouse may only be exported through the border-gates prescribed by the Prime Minister and the Ministry of Industry and Trade;

d) After goods are taken in the customs-controlled area at the border-gate of exportation from a bonded warehouse, the Customs Branch at the border-gate of exportation shall monitor goods until they are exported from Vietnam’s territory. If goods are not exported by 15 days from the day on which goods arrive at the border-gate of exportation or the border-gate of exportation is changed, the Customs Branch at the border-gate of exportation must notify the supervisory Customs Branch of the bonded warehouse for monitoring in cooperation. Goods exported through border-gate by road or by river shall be confirmed that they have passed through the customs-controlled area at the border-gate of exportation.

4. Customs procedures for importing goods to inland or a non-tariff zone from the bonded warehouse:

a) The customs declarant shall:

a.1) Update information about goods dispatched from the bonded warehouse on the goods inventory software on the bonded warehouse owner and send it to the supervisory Customs Branch of the bonded warehouse;

a.2) Perform the tasks specified at Point a Clause 2 Article 52 of this Circular at the supervisory Customs Branch of the bonded warehouse.

b) The supervisory Customs Branch shall:

b.1) Compare information about goods dispatched from the bonded warehouse on the declaration of goods imported to inland or non-tariff zone on the System with information in the inventory software; print and keep documents together with documents about goods delivered to the bonded warehouse;

b.2) Perform the tasks specified at Point d.1.2 Clause 2 Article 51 of this Circular.

c) The following goods must not be imported to inland from a bonded warehouse:

c.1) Goods that are required to follow import procedures at a border-gate;

c.2) Goods on the list of imported goods that must not be moved to another custom post outside the border-gate area or vice versa prescribed by the Prime Minister, except for raw materials or supplies, machinery, and equipment imported to serve manufacturing, processing of goods, and goods manufactured or processed in Vietnam.

5. Customs procedures for sending goods from a bonded warehouse to another:

a) Goods that are removed from the old bonded warehouse shall carry out customs procedures specified in Clause 4 of this Article;

b) Goods that are delivered to the new bonded warehouse shall carry out customs procedures specified in Clause 1 of this Article;

c) The period of goods retention in the bonded warehouse begins from the day on which goods are delivered to the old bonded warehouse.

6. Regarding goods transported from a border-gate, from a bonded warehouse to another, from another location to a bonded warehouse and vice versa that are under the management of the same Customs Branch, the monitoring of goods being delivered between such locations shall be decided by the provincial-levle Customs Department.

7. If violations of law are suspected, the Director of the supervisory Customs Branch of the bonded warehouse shall decide whether to carry out a physical inspection before goods are delivered to or dispatched from the bonded warehouse. The inspection result shall be written on the notice of inspection result (according to form No. 06/PGKQKT/GSQL in Appendix V to this Circular.

8. The transfer of ownership of goods in bonded warehouse shall be carried out by goods owner upon sale of goods as specified in Clause 8 Article 3 of the Commercial Law. The owner of the bonded warehouse shall send the supervisory Customs Branch a notification of the transfer of ownership of goods in the bonded warehouse. Procedures for delivering, dispatching goods are not required. The period of goods retention in the bonded warehouse begins from the day on which goods are delivered to the bonded warehouse according to the bonded warehouse lease contract between the owner of the bonded warehouse and the former goods owner.

9. Reporting bonded warehouse inventory:

a) The bonded warehouse owner shall monitor and finalize bonded warehouse lease contracts with goods owners. Every 15^th of the first month of the next quarter, the bonded warehouse owner shall send the supervisory Customs Branch a written notification of goods condition and operation of the bonded warehouse (according to form 24/BC-KNQ/GSQL in Appendix V to this Circular); the Customs Branch shall send a summary report to Customs Department on the 25^th of the first month of the quarter;

b) The supervisory Customs Branch of the bonded warehouse shall be responsible for monitoring the warehouse inventory based on customs declarations of goods sent to the bonded warehouse and the inventory software of the bonded warehouse owner; time limit for retention of goods in the bonded warehouse, compare with the notification of goods condition and operation of the bonded warehouse. If the quantity of goods in inventory is suspected, the Director of the Customs Branch shall decide a site inspection, compare with information on the inventory software of the bonded warehouse owner.

10. Every year, the Provincial-level Customs Department shall inspect the operation of bonded warehouses and the adherence to law of bonded warehouse owners, then submit the inspection result to the General Department of Customs. Customs Departments shall carry out surprise inspections if violations of law are suspected.

Article 92. Customs supervisions applicable to goods delivered to, dispatched from CFS, and services therein

1. Exported goods sent to a CFS

According to information about the export shipment sent by the Customs Branch where the customs declaration is registered, the supervisory Customs Branch of the CFS shall receive the shipment, compare with information on the System to send goods to the CFS.

At the request of the Customs Branch where the customs declaration is registered, the customs officer in charge of the CFS shall carry out physical inspection of goods as specified in Clause 11 Article 29 of this Circular.

2. Imported goods sent to a CFS

According to information on the declaration of transport of goods under customs supervision approved by the Customs Branch at the border-gate and the bill of lading presented by the CFS operator, the customs officer shall monitor goods being delivered to the CFS and perform the tasks specified at Point c.4 Clause 1 Article 51 of this Circular.

3. Supervision of services provided in the CFS

Services provided in the CFS must be supervised by the customs. When consolidating export shipments into one container, the provider of LCL consolidation services must compile of list of consolidated cargo (according to form No. 25/DMXK-CFS/GSQL in Appendix V to this Circular). When the consolidation is completed, the customs officer shall make a confirmation on the list, return 01 copy of it to the provider of LCL consolidation services, and keep 01 copy at the customs office.

4. Management of goods sent to the CFS

a) After the quantity goods on the Master Bill are completed imported to inland or completely exported to another country, the provider of LCL consolidation services shall monitor goods according to each Master Bill;

b) Regarding exported goods sent to the CFS, according to the list of consolidated cargo, the provider of LCL consolidation services shall monitor the list of overdue goods in the CFS as specified in Clause 3 Article 61 of the Customs Law.

5. Reporting CFS inventory:

On the 5^th of the first month of the next quarter, the provider of LCL consolidation services shall send the supervisory Customs Branch of the CFS a written notification of goods condition and operation of the CFS (according to form No. 26/NXT-CFS/GSQL in Appendix V to this Circular). If the provider of LCL consolidation services uses inventory software which relates to the customs, the supervisory Customs Branch of the CFS shall access the inventory report on the software.

Article 93. Customs procedures applicable to exported goods and imported goods on an all-inclusive declaration

1. Customs procedures for exported goods and imported goods that are delivered before the customs declaration is registered:

a) Cases of application:

a.1) Exported, importer electricity;

a.2) Goods sold in international area at international airports (except duty-free goods);

a.3) Goods provided for passengers on international flights;

a.4) Aviation fuel for outbound aircraft;

a.5) Indirect exported goods that are delivered many times in a day, or a month as specified in Clause 6 Article 86 of this Circular.

b) The customs declarant shall:

b.1) Complete the customs declaration according to Appendix II to this Circular;

b.2) Submit a customs dossier as specified in Article 16 of this Circular which contains documents certifying every delivery of goods (sale invoice, commercial invoice, goods dispatch invoice, etc.); compile a list of documents certifying deliveries of goods (according to form No. 27/THCT-KML/GSQL in Appendix V to this Circular) and submit them to the customs office while carrying out customs procedures. Regarding exported or imported electricity, the customs declarant shall submit documents proving electricity consumption in the month on the first day of the next month; customs procedures for provision of aviation fuel for outbound aircraft shall be completed within 30 days.

c) After the customs declarant submits the customs dossier by the deadline advertisement specified at Point b of this Clause, the customs office shall carry out customs procedures according to section 3 Chapter II of this Circular and shall not carry out physical inspection of goods.

2. Customs procedures for exported goods and imported goods that are delivered after the customs declaration is registered:

a) Goods that are delivered after the customs declaration is registered must satisfy the conditions in Clause 8 Article 25 of Decree No. 08/2015/ND-CP.

b) The customs declarant shall:

b.1) Make the customs declaration and submit the customs dossier specified in Article 16 of this Circular; submit 01 photocopy of the contract, export or import license issued by a competent agency (if such licensed is required by law) and present the original for comparison and issuance of the reconciliation monitoring sheet;

b.2) The previous customs declaration that was grated customs clearance may be used to obtain customs clearance for each shipment;

b.3) Make additional declaration if accurate information about the shipment is received after the shipment is completely delivered.

c) The customs office shall:

c.1) Receive, register the customs dossier;

c.2) Make a logbook of exported/import goods (according to form No. 28/STD/GSQL in Appendix V to this Circular);

c.3) Carry out customs procedures for each shipment of export or import of goods and write the quantity of each shipment in the logbook;

c.4) Compare the logbook with additional declaration after the shipment is completely exported or imported to confirm the total quantity of exported goods and imported goods.

3. Customs procedures for exported/import goods on an all-inclusive declaration shall be followed at one Customs Branch.

Article 94. Customs procedures for trading, exchange of goods of border residents

1. Any citizen who has a permanent residence in the bordering area of Vietnam and China, Laos, or Cambodia may trade in and/or exchange goods on the list of goods manufactured in bordering countries that are imported/exported in the form of trading or exchanging by border residents issued by the Ministry of Industry and Trade.

If the goods traded/exchanged are not on the list of the quantity of goods or exceeds the allowance prescribed by relevant laws, the owners of goods must carry out customs procedures for import of goods as prescribed in this Circular.

2. The Prime Minister’s Decision on management of border trading with bordering countries and its guiding documents submit a dossier the trading, exchange of goods of border residents, and policies thereon. The Ministry of Finance shall specify customs procedures for these activities.

Chapter V

HANDLING REFUSAL OF GOODS

Article 95. Refusal of goods

1. The consignee written on the bill of lading may refuse to receive goods in the following cases:

a) Goods are not conformable with the sale contract as specified in Article 39 of the Commercial Law;

b) Goods are not conformable with the bonded warehouse lease contract, or the consignor does not adhere to the terms of the bonded warehouse lease contract.

2. The customs office shall not impose penalties if the consignee refuses to receive goods before the customs declaration classification result is given. The consignee that refuses to receive goods after the result is given shall incur penalties in accordance with law provisions.

Article 96. Handling refused goods

1. If the consignee refuses to receive goods because the consignor fails to adhere to the sale contract or bonded warehouse lease contract, the consignee shall submit a set of documents to customs office which must comprise:

a) A written notification of refusal of goods, specifying the reasons and solutions (re-export, destruction, confiscation, or selling at auction);

b) Documents proving that the consignor fails to adhere to the sale contract or bonded warehouse lease contract;

c) The notification and request for settlement of the consignor (if any).

If goods are sent to a wrong address, the consignee shall send the customs office a written notification of refusal of goods.

2. Places for notifying refusal of goods:

a) If goods are under customs supervision at a border-gate, the consignee shall notify the Customs Branch at the border-gate;

b) If goods are already transported to a bonded warehouse, CFS, or a customs place outside the border-gate area, the consignee shall notify the Customs Branch where the customs declaration is registered.

3. Based on documents the submitted by the consignee, the Customs Branch where goods are supervised shall cooperate with the customs control team in carrying out a physical inspection of the entire shipment to classify and handle it as specified in Clause 4 of this Article.

4. Classification and handling

Goods refused by the consignee written on the bill of lading shall be classified and handled in accordance with the Minister of Finance’s Circular on handling of unclaimed goods in customs-controlled areas. Additional guidance:

a) In case refused goods are re-exported: Based on the documents submitted by the consignee, the Customs Branch where goods are supervised shall supervise re-export of goods from Vietnam’s territory right at the border-gate of importation;

b) In case refused goods are destroyed: The destruction shall be carried out by the Provincial-level Customs Department. The destruction cost shall be deducted from deposit paid by the consignee’s or the incurred by the bonded warehouse owner;

c) If refused goods are confiscated and liquidated: The Provincial-level Customs Department shall issue the decision on confiscation and liquidation. The revenues for liquidation after deducting costs shall be paid to state budget.

Chapter VI

PROCEDURES FOR ESTABLISHMENT, RELOCATION, EXPANSION, CONTRACTION, SHUTDOWN OF CUSTOMS PLACES, INLAND GOODS INSPECTION PLACES; OFF-AIRPORT CARGO TERMINAL

Article 97. Customs place at an ICD

1. Conditions for establishment:

a) The customs place is on the master plan for ICD system announced by the Prime Minister;

b) The area is 10 hectares or more;

c) The working conditions of the customs are satisfactory, such as the office building, goods inspection site, equipment serving customs inspection and supervision, exhibit storage;

d) The depot area must be separated from surrounding areas by sturdy fences, have a camera system, electronic scales, and other equipment serving customs clearance of goods. Goods entering, leaving the depot area must be monitored by a computer system connected with the customs.

2. Dossier of request for establishment:

a) A written request made according to form No. 03 in Appendix IX to this Circular: 01 original;

b) A written approval for establishment of the ICD granted by the Ministry of Transport (unless the ICD has been included in the master plan by the Ministry of Transport): 01 original;

c) An Enterprise Registration Certificate that covers storage services: 01 photocopy.

3. Establishment procedures:

a) The application shall be sent to the Provincial-level Customs Department in which the customs place is located;

b) Within 01 working days from the day on which valid and sufficient documents are received, the Customs Department shall:

b.1) Examine the documents:

b.2) Conduct a site inspection of the depot area;

b.3) Assess fulfillment of the conditions specified in Clause 1 of this Article; send a proposal and report together with the application to the General Department of Customs.

c) Within 10 working days from the date the report and application are received, the General Department of Customs must complete appraising, reporting, and requesting the Minister of Finance to issue a decision on establishment of the customs place. If any of the condition is not fulfilled, the General Department of Customs shall notify the Customs Department and the applicant in writing.

4. Shutdown of a customs place at an ICD.

a) Cases of shutdown:

a.1) The shutdown is requested by the Provincial-level Customs Department because the conditions for customs inspection and supervision and other conditions for establishment in Clause 1 of this Article are not satisfied;

a.2) The shutdown is requested in writing by the enterprise;

a.3) The customs place is not put into operation within 06 months from the issuance of the decision on establishment without satisfactory explanation;

a.4) The enterprise commits 03 customs offenses related to management, supervision of goods at the customs place within 01 year which result in fines that are beyond the competence to impose of the Director of the Customs Branch.

b) The customs declaration shall request the Ministry of Finance to issue a decision to shut down the customs place based on the report and proposal of the Customs Department or the written request of the enterprise.

5. Any enterprise that wishes to contract, expand, or relocate the customs place at the ICD submit a dossier the Provincial-level Customs Department if the conditions specified in Clause 1 of this Article are satisfied. The application must comprise:

a) A written request for approval for relocation, expansion, or contraction: 01 original;

b) The diagram of the depot area after relocation, expansion, or contraction: 01 photocopy;

c) Documents proving the right to use the expanded depot area or the new depot area (in case of relocation).

Procedures for relocation, expansion, contraction are similar as procedures for establishment of a customs place at the ICD specified in Clause 3 of this Article. The expansion, contract of area of the customs place shall be decided by the General Department of Customs.

6. If the name of the owner of the customs place is changed according to the Enterprise Registration Certificate, the enterprise shall send a written notification to the supervisory Customs Branch of the customs place.

7. If the ownership of the customs place is transfer, the old customs place shall be shut down and the new customs place shall be established in accordance with this Article.

Article 98. Customs place outside border-gate area

1. Conditions for establishment:

a) The customs place is in the master plan of the Ministry of Finance for the network of customs places outside border-gate area;

b) The area is 01 hectare or more;

c) The working conditions of the customs such as the office building, goods inspection site, equipment (electronic scales, scanners, etc.), exhibit storage are satisfactory;

d) The depot area must be separated from surrounding areas by sturdy fences, have a camera system, electronic scales, and other equipment serving quick customs clearance of goods. Goods entering, leaving the depot area must be monitored by a computer system connected with the customs.

2. Dossier of request for establishment:

a) A written request made according to form No. 03 in Appendix IX to this Circular: 01 original;

a) A written approval issued by the People’s Committee of the province in which the customs place is located: 01 original;

c) An Enterprise Registration Certificate that covers storage services: 01 photocopy.

3. The establishment, shutdown, relocation, expansion, contraction, transfer, or change of name of owner of a customs place outside border-gate area are similar as those of the customs place at an ICD specified in Clauses 3, 4, 5, 6, 7, Article 97 of this Circular.

Article 99. Off-airport cargo terminal

1. Conditions for establishment:

a) Off-airport cargo terminals shall be established in:

a.1) Areas adjacent to civil international airports;

a.2) Industrial parks, hi-tech zones, export-processing zones.

The distance from the said areas to a civil international airport shall not exceed 50 km.

b) The minimum area is 2,000 m² (including depot area and auxiliary works);

c) The off-airport cargo terminal owner is an enterprise established under the law which has a system of storage for exported goods or imported goods in a civil international airport that is not longer than 50 km from the off-airport cargo terminal;

d) The working conditions of the customs such as the office building, goods inspection site, equipment (electronic scales, scanners, etc.), exhibit storage are satisfactory;

dd) The depot area is separated from surrounding areas by study fences; exported goods and imported goods are stored in separate places;

e) The owner has a system of accounting records and IT applications to manage the inventory. The warehouse must have a surveillance camera system that meet standards for supervision of goods inventory of the customs.

2. Dossier of request for establishment:

a) A written request made according to form No. 03 in Appendix IX to this Circular: 01 original;

b) A written approval for establishment of the off-airport cargo terminal granted by the Ministry of Transport: 01 original;

c) A written approval for location where the off-airport cargo terminal is built granted by the People’s Committee of the province: 01 original;

d) An Enterprise Registration Certificate that covers storage services: 01 photocopy;

dd) Documents proving the legal land use right: 01 photocopy.

3. The establishment, shutdown, relocation, expansion, contraction, transfer, or change of name of owner of an off-airport cargo terminal are similar as those of the customs place at an ICD specified in Clauses 3, 4, 5, 6, 7, Article 97 of this Circular.

Article 100. Concentrated goods inspection sites

1. Conditions for establishment:

Every concentrated goods inspection site invested by a customs office or depot operator must satisfy the conditions below:

a) The inspection site that belongs to a particular Customs Branch must be adjacent to the Customs Branch (hereinafter referred to as “separate inspection site”); The good inspection site shared by multiple Customs Branches must not be longer than 20 km away from any Customs Branch;

b) The minimum area of a separate inspection site is 5,000 m², shared inspection site 10,000 m²;

c) Facilities and equipment:

c.1) The working conditions of the customs such as the office building, goods inspection site, equipment (electronic scales, scanners, etc.), exhibit storage are satisfactory;

c.2) The depot area must be separated from surrounding areas by sturdy fences and have surveillance cameras;

c.3) Goods entering, leaving the depot area must be monitored by a computer system connected with the customs.

2. Dossier of request for establishment:

a) If the concentrated inspection site is invested by the customs office:

a.1) A written request made according to form No. 03 in Appendix IX to this Circular: 01 original;

a.2) A certificate of land use right (LUR): 01 photocopy.

b) If the concentrated inspection site is invested by an enterprise:

b.1) A written request made according to form No. 03 in Appendix IX to this Circular: 01 original;

b.2) Documents proving the LUR: 01 photocopy;

b.3) An Enterprise Registration Certificate that covers storage services: 01 photocopy;

3. Establishment procedures:

a) The application shall be sent to the Provincial-level Customs Department in which the concentrated inspection site is located;

b) Within 01 working days from the day on which valid and sufficient documents are received, the Customs Department shall:

b.1) Examine the documents:

b.2) Conduct a site inspection of the depot area;

b.3) Assess fulfillment of the conditions specified in Clause 1 of this Article; send a proposal and report together with the application to the General Department of Customs.

c) Within 05 working days from the date the report and application are received, the General Department of Customs shall consider issuing a decision on establishment of the concentrated inspection site. If any of the condition is not fulfilled, the General Department of Customs shall notify the Customs Department and the applicant in writing.

4. Shutdown of a concentrated inspection site

a) Cases of shutdown:

a.1) The shutdown is requested by the Provincial-level Customs Department because the conditions for customs inspection and supervision and other conditions for establishment in Clause 1 of this Article are not satisfied;

a.2) The shutdown is requested in writing by the enterprise;

a.3) The inspection site is not put into operation within 06 months from the issuance of the decision on establishment without satisfactory explanation;

a.4) The enterprise commits 03 customs offenses related to management, supervision of goods at the concentrated inspection site within 01 year which result in fines that are beyond the competence to impose of the Director of the Customs Branch.

b) The General Department of Customs shall decide shutdown of the concentrated inspection site based on the report and proposal of the Customs Department or the written request of the enterprise.

5. Any enterprise that wishes to contract, expand, relocate, or transfer the ownership of the concentrated inspection site, submit a dossier the Provincial-level Customs Department if the conditions specified in Clause 1 of this Article are satisfied. The application must comprise:

a) A written request for approval for relocation, expansion, or contraction: 01 original;

b) The diagram of the depot area after relocation, expansion, or contraction: 01 photocopy;

c) Documents proving the right to use the expanded depot area or the new depot area (in case of relocation).

Procedures for relocation, expansion, contraction are similar as procedures for establishment of a concentrated inspection site specified in Clause 3 of this Article. The expansion, contract of area of the inspection site shall be decided by the Provincial-level Customs Department.

6. If the name of the owner of the concentrated inspection site which was permitted to be established by the General Department of Customs is changed according to the Enterprise Registration Certificate, the enterprise shall send a written notification to the supervisory Customs Branch of the inspection site.

7. In case a concentrated inspection site is relocated, the old site shall be shut down and the new site shall be established as prescribed in this Article.

Article 101. Places for gathering, inspecting exported goods, or imported goods at the border (hereinafter referred to as “border gathering site”)

1. Conditions for establishment:

a) The place is located within a border economic zones or border-gate area under the management of the customs;

b) The minimum area is 5.000 m²;

c) The working conditions of the customs such as the office building, goods inspection site, equipment (electronic scales, scanners, etc.), exhibit storage are satisfactory;

d) The depot area must be separated from surrounding areas by sturdy fences and have surveillance cameras;

dd) Goods entering, leaving the depot area must be monitored by a computer system connected with the customs.

2. Dossier of request for establishment:

a) A written request made according to form No. 03 in Appendix IX to this Circular: 01 original;

b) Documents proving the LUR: 01 photocopy;

c) An Enterprise Registration Certificate that covers storage services: 01 photocopy.

3. The establishment, shutdown, relocation, expansion, contraction, transfer or change of name of owner of a gathering site are similar as those of the inspection sites specified in Clauses 3, 4, 5, 6, 7, Article 100 of this Circular.

Article 102. On-site goods inspection area

1. The on-site inspection shall be carried out where machinery, equipment, materials, components, supplies imported for construction of the factory, building, for execution of a project, serving manufacturing of goods or exported goods are gathered.

2. Establishment procedures:

a) The enterprise shall send the Provincial-level Customs Department in which the construction or factory is located a dossier of request for recognition of an on-site inspection area which is attached to the diagram of area;

b) Within 05 working days from the day on which sufficient documents are received, the Customs Department shall examine the documents, conduct a site inspection, and issue a decision on recognition which is effective for 02 years from its issuance date. If the enterprise wishes to extend this period upon expiration, Customs Department shall consider extending it for not more than 02 years.

If the proposed location does not satisfy customs inspection requirements, the enterprise must be notified in writing.

3. The enterprise shall prepare the site and inspection equipment at the construction site/factory, and only use goods for manufacturing or construction after they are granted customs clearance by the customs.

4. After the construction, installation is completed or the factory no longer needs the customs office to carry out physical inspection of goods at such area, the enterprise must send the Provincial-level Customs Department a written request for shutdown of the inspection area.

Chapter VII

TAX EXEMPTION, CONSIDERATION OF TAX EXEMPTION, TAX REFUND, AND OTHER REGULATIONS ON TAXES ON EXPORTED GOODS OR IMPORTED GOODS

Section 1. CASES OF TAX EXEMPTION, PROCEDURES FOR TAX EXEMPTION

Article 103. Cases of tax exemption

1. Goods temporarily imported or temporarily exported to participate in fairs, exhibitions, product introduction; machinery, equipment, professional instruments temporarily imported or temporarily exported serving conventions, seminars, feasibility study, sports competition, art performances, medical examination and treatment; components and spare parts for replacement, repair of sea-going vessels, foreign aircraft; machinery and equipment temporarily imported to serve research and development of products; temporarily imported machinery, equipment, professional instruments that are eligible for tax exemption according to Clause 17 of this Article or might be eligible for tax refund according to Clause 9 Article 114 of this Circular shall be exempted from import duty upon temporary import and exempt from export duty upon re-export, or exempt from export duty upon temporary export and exempt from import duty upon re-import.

Tax shall be charged if goods are not re-exported or re-imported by the deadline prescribed in Decree No. 08/2015/ND-CP.

2. Belongings of Vietnamese entities or foreign entities brought into Vietnam or to abroad within the duty-free allowance upon their entry/exit, including:

a) Belongings carried along by foreign entities when they are permitted to reside or work in Vietnam at the invitation of competent agencies or when they leave Vietnam at the end of the period of residence/work in Vietnam;

b) Belongings of Vietnamese entities that are permitted to take them abroad for business and work, and are imported back in Vietnam at the end of the period;

c) Belongings carried along by Vietnamese families/individuals who are residing overseas and permitted to reside in Vietnam or Vietnamese families/individuals permitted to reside overseas; belongings carried along by foreigners when they are permitted to reside in Vietnam or when they are permitted to reside overseas.

Among the cars, motorbikes carried along by families/individuals when they are permitted to reside in Vietnam, tax exemption is only granted to one piece of a type.

Belongings shall be identified in accordance with Clause 5 Article 5 of the Law on Export and import duty and its guiding documents.

3. Exported goods or imported goods of foreign entities provided with diplomatic immunity and privileges in Vietnam shall comply with the Ordinance on diplomatic immunity and privileges of diplomatic missions, consular offices, representative agencies of international organizations, and its guiding documents.

4. Goods exported or imported for processing under contracts are exempted from import and export duties as specified in Clause 4 Article 12 of Decree No. 87/2010/ND-CP, including:

a) Goods exempt from tax under processing contracts include:

a.1) Raw materials or supplies imported, exported for processing;

a.2) Imported, exported supplies that are used during the manufacturing or processing (paper, chalk, pen, marker, pins, printing ink, glue brush, printing frame, polishing oil, etc.);

a.3) Goods imported, exported as samples serving processing operations;

a.4) Machinery and equipment imported, exported serving processing operations as agreed in the processing contract. They must be re-exported or re-imported upon the expiration of the processing contract. Otherwise, tax must be declared and tax as prescribed. If they are retained as gifts, export duty or import duty shall be exempted as instructed in Clause 4 Article 107 of this Circular;

a.5) Processed products that are re-exported (if export duty is incurred);

a.6) Finished products imported to be attached on processed products or packed with processed products as full packs to be exported; components, parts imported serving repair of processed exported goods are eligible for tax exemption as if raw materials or supplies imported for inward processing if the conditions below are fully satisfied:

a.6.1) They are specified in the processing contract or its Appendices;

a.6.2) They are managed as if raw materials or supplies imported for inward processing.

a.7) Goods imported for inward processing and permitted to be destroyed in Vietnam in accordance with law provisions, provided procedures prescribed in this Circular are completed.

b) Regarding raw materials or supplies that are manufactured or purchased in Vietnam by the processor and subject to export duty, the customs declarant shall declare, calculate export duty on such raw materials or supplies on the declaration of processed goods to be exported (including exported products in the form of indirect export).

c) Goods exported to abroad for outward processing shall be exempted from export duty. When they are re-imported to Vietnam, import duty on processed imported goods must be paid (tax shall not be imposed on the value of raw materials or supplies exported under the processing contract). Import duty is imposed according to the quantity of processed products that are imported, their origins which are determined according to the Ministry of Industry and Trade’s regulations on origins;

d) Import duty on raw materials or supplies, machinery, and equipment and processed products used as payment for processing by the foreign party shall be charged upon their import.

dd) Import duty on waste and rejects within the consumption rate and rate of loss that satisfy requirements in Article 30 of Decree No. 187/2013/ND-CP and are agreed in the processing contract is similar as waste, rejects imported as raw materials or supplies for manufacturing of domestic exported goods specified in Article 71 of this Circular.

5. Exported goods or imported goods within the duty-free allowance of individuals entering, exiting Vietnam; goods within duty-free allowance sent by expressed mail as prescribed by the Government and the Prime Minister.

a) Exported goods or imported goods within the duty-free allowance for luggage of individuals entering, exiting Vietnam:

a.1) For exiting individuals: Except for the goods on the list of goods banned from export of goods subject to conditions for export, duty-free allowance is not imposed upon other items in the luggage of an individual exiting Vietnam;

a.2) Individuals entering Vietnam:

a.2.1) Duty-free allowance shall comply with regulations of the Prime Minister on duty-free allowance imposed upon gifts and luggage of individuals entering, exiting Vietnam;

a.2.2) In case where goods imported in excess to the duty-free allowance shall incur import duty. If the total tax payable is smaller than VND 100,000, it will be exempt. The entering individual may select certain items in the luggage on which tax will be paid;

b) Goods sent by express mail:

Tax shall be exempted if the value of goods sent by express mail is within the duty-free allowance according to regulations of the Prime Minister on value of duty-free allowance for imported goods sent by express mail. If imported goods exceed the duty-free allowance, tax on the whole shipment shall be paid. If tax payable on the whole shipment is smaller than VND 50,000, it will be exempt.

6. Goods traded, exchanged by border residents are exempted from export duty and import duty if they do not exceed the duty-free allowance. Otherwise, the quantity of goods that exceeds the allowance shall incur tax.

The Prime Minister shall issue regulations on border residents and duty-free allowance for goods traded/exchanged by border residents.

7. Goods imported as fixed assets of projects of investment in the fields eligible for preferential import duty prescribed in Appendix I of the Government's Decree No. 87/2010/ND-CP or administrative divisions eligible for preferential import duty prescribed in Decree No. 218/2013/ND-CP, Decree No. 91/2014/ND-CP, and Decree No. 53/2010/ND-CP; projects of investment funded by ODA exempt from import duty include:

a) Machinery and equipment that:

a.1) suit the field, target, and scale of the project; and

a.2) comply with regulations on fixed assets in the Ministry of Finance’s Circular No. 45/2013/TT-BTC dated April 25, 2013;

b) Vehicles in a technological line that cannot be domestically manufactured; worker shuttle vehicles including passenger vehicles with 24 seats or more and watercraft:

b.1) The list of dedicated vehicles specified in this Point shall be compiled by the Ministry of Planning and Investment;

b.2) The list or criteria for identification of vehicles in technological lines specified in this Point shall be compiled by the Ministry of Science and Technology.

c) Components, parts, detachable parts, fittings, molds, accessories that are used for assembly of complete machinery, equipment, and vehicles eligible for tax exemption specified at Point a Decree Point b of this Clause shall be eligible for tax exemption in case:

c.1) They are components, parts of machinery, equipment, and vehicles imported as complete knockdown kits;

c.2) They are components, parts, detachable parts, fittings, molds, accessories used for assembling, connecting machinery and equipment together to ensure the normal operation of the System of machinery and equipment.

d) Raw materials or supplies that cannot be domestically manufactured used for manufacturing of machinery and equipment in technological lines or components, parts, detachable parts, fittings, molds, accessories specified at Point c of this Clause that are used for assembly of complete machinery and equipment specified at Point a of this Clause.

The list of raw materials or supplies that can be domestically manufactured which is the basis for granting tax exemption shall be compiled in accordance with the Ministry of Planning and Investment’s regulations;

e) Building materials that cannot be domestically manufactured.

The list of building materials that can be domestically manufactured which is the basis for granting tax exemption shall be compiled in accordance with the Ministry of Planning and Investment’s regulations.

8. Permissible imported plant varieties, animal breeds serving execution of projects of investment in agriculture, forestry, aquaculture.

The list of permissible imported plant varieties and animal breeds which is the basis for granting tax exemption shall be compiled in accordance with regulations of the Ministry of Agriculture and Rural Development.

9. Tax exemption for imported goods specified in Clause 7 and Clause 8 of this Article also applies to project expansion, change or innovation of technology.

10. The first import of goods specified in Appendix II attached to Decree No. 87/2010/ND-CP shall be exempted from tax if they are imported as fixed assets of projects eligible for preferential import duty, ODA-funded projects in construction of hotels, office buildings, apartments for lease, housing, shopping malls, technical services, supermarkets, golf courses, tourist resorts, sports centers, entertainments centers, medical facilities, training institutions, cultural centers, finance, banking, insurance audit, consultancy establishments.

The projects of which imported goods are exempted from tax exemption for the first time as prescribed in this Clause shall not be granted the tax exemption specified in other Clauses of this Article.

11. Imported goods serving oil and gas activities, including:

a) Machinery and equipment that satisfy the conditions specified at Point a Clause 7 of this Article; dedicated vehicles serving oil and gas activities; worker shuttles including passenger automobiles with 24 seats or more and watercraft; components, parts, detachable parts, fittings, molds, accessories that are installed to or used together with the aforesaid machinery, equipment, and dedicated vehicles that satisfy conditions specified at Point c Clause 7 of this Article.

The list or criteria for identification of dedicated vehicles serving oil and gas activities specified in this Point shall be compiled by the Ministry of Science and Technology;

b) Supplies serving oil and gas activities that cannot be domestically manufactured.

The list of supplies serving oil and gas activities that can be domestically manufactured which is the basis for granting tax exemption shall be compiled in accordance with the Ministry of Planning and Investment’s regulations;

c) Medical equipment and emergency medicines on oil rigs and floating works confirmed by the Ministry of Health;

d) Office equipment serving oil and gas activities;

dd) Other temporarily imported goods serving oil and gas activities.

In case the goods specified in this Clause are imported by a sub-contractor or another entity, including those imported directly, via entrustment, bidding, via lease and sublease to supply for entities engaged in oil and gas exploration and extraction under an oil and gas service contract or goods supply contract, they are also exempt from import duty.

12. With regards to goods of shipyards, exported sea-going vessels shall be exempted from export duty. Import duty on the following articles is exempt:

a) Machinery and equipment imported as fixed assets that satisfy the conditions specified at Point a Clause 7 of this Article;

b) Vehicles in the technological lines as fixed assets.

The list or criteria for identification of vehicles in technological lines specified in this Point, which is the basis for granting tax exemption, shall be compiled by the Ministry of Science and Technology;

c) Raw materials or supplies, semi-finished products serving ship building that cannot be domestically manufactured.

The list of raw materials or supplies and semi-finished products serving ship building that can be domestically manufactured, which is the basis for granting tax exemption, shall be compiled in accordance with the Ministry of Planning and Investment’s regulations.

13. Import duty on raw materials or supplies that cannot be domestically manufactured and are imported to directly serve production of software programs.

The list of raw materials or supplies directly serving production of software programs that can be domestically manufactured, which is the basis for granting tax exemption, shall be compiled in accordance with the Ministry of Planning and Investment’s regulations.

14. The following goods imported for R&D shall be exempted from import duty: machinery, equipment, spare parts, supplies, vehicles that cannot be domestically manufactured, technologies unavailable in Vietnam; documents, books, newspapers, academic journals, and digital sources of information about science and technology.

The list of machinery, equipment, spare parts, supplies, vehicles directly serving R&D that can be domestically manufactured, which is the basis for granting tax exemption, shall be compiled in accordance with the Ministry of Planning and Investment’s regulations.

15. Import duty on raw materials or supplies and components that cannot be domestically manufactured and are imported to serve the manufacturing of projects of investment in the following fields and areas shall be exempted for 05 years from commencement date of manufacturing:

a) The fields in which investment is encouraged prescribed in Appendix I attached to Decree No. 87/2010/ND-CP (except for projects of manufacturing/assembly of cars, motorbikes, air conditioners, heaters, refrigerators, washing machines, electric fans, dish washing machines, disc players, sound systems, electric irons, water heaters, hair dryers, hand dryers, alcohols, beer, tobacco, and other articles on which import duty is not exempt according to the Prime Minister’s decisions);

b) Extremely disadvantaged areas on the List of areas eligible for preferential corporate income tax attached to Decree No. 218/2013/ND-CP, Decree No. 91/2014/ND-CP , and Decree No. 53/2010/ND-CP (except for projects of manufacturing/assembly or cars, motorbikes, air conditioners, heaters, refrigerators, washing machines, electric fans, dish washing machines, disc players, sound systems, electric irons, water heaters, hair dryers, hand dryers, alcohols, beer, tobacco, and other articles on which import duty is not exempt according to the Prime Minister’s decisions).

The 5-year tax exemption period begins on the date the manufacturing is commenced, which is confirmed by the management board of the industrial park, export-processing zone, hi-tech zone, economic zone, etc. where the enterprise is operating, or confirmed by the Department of Industry and Trade of the province in which project is located (if the project is not located within the aforementioned zones).

The list of raw materials or supplies and components that can be domestically manufactured, which is the basis for granting tax exemption, shall be compiled in accordance with the Ministry of Planning and Investment’s regulations.

The taxpayer must pay tax on the quantity of imported raw materials or supplies and components that exceed the manufacturing demand after the 5-year tax exemption period expires.

16. Goods manufactured, processed, recycled, assembled within a non-tariff zone without using imported materials or components shall be exempted from import duty when they are imported to inland. If imported materials or components are used, import duty shall be paid when such goods are imported to inland. The basis and calculation method of import duty are instructed in Clause 2 Article 40 of this Circular.

17. Machinery, equipment, vehicles temporarily imported to Vietnam by a foreign contractor to serve an ODA project in Vietnam shall be exempted from import duty upon temporary import and exempt from export duty upon re-export. At the expiration of the time limit for project execution, the foreign contractor must re-export the goods. Liquidation or transfer of goods in Vietnam instead of re-export is subject to permission by competent agencies. In this case import duty shall be paid as prescribed.

Passenger automobiles with fewer than 24 seats and automobiles designed for transporting both passengers and cargo that are equivalent to passenger automobiles with fewer than 24 seats must not be temporarily imported for re-export. Any foreign contractor that wishes to import them to Vietnam must pay import duty. When the construction is completed, the foreign contractor must re-export the vehicles that were imported and receive a refund of the import duty that was paid. The refund level is specified in Clause 9 Article 114 of this Circular.

18. Raw materials or supplies and components that cannot be domestically manufactured and imported to serve the manufacturing of projects in border economic zones shall be exempted from tax as prescribed by the Prime Minister on financial policies on border economic zones.

19. Goods imported for sale in duty-free shops under the Prime Minister’s decisions shall comply with the Ministry of Finance’s guidance.

If complimentary goods, sample goods are provided free of charge by the foreign party for a duty-free shop to sell together with goods therein, such complimentary goods and sample goods are exempted from import duty. Both complimentary goods and sample goods must be supervised by the customs office as if goods imported for sale in duty-free shops.

20. Tax exemption is special cases specified in Clause 20 Article 12 of Decree No. 87/2010/ND-CP.

21. Goods exempt from import duty under international agreements

22. Additional guidance:

a) In case the subject eligible for exemption of tax on goods imported as fixed assets as prescribed in this Article does not import goods but instead receives goods exempt from import duty from another entity in Vietnam, then the transferee is still eligible for exemption of import duty and the transferor is not required to pay tax arrears as long as the transfer price is exclusive of import duty;

b) The entrusted importer or successful bidder for goods import (the price for goods supply under the entrustment contract or the successful bid is exclusive of import duty) that supplies imported goods for entities eligible for exemption of import duty specified in Clauses 7 thru 18 of this Article is also eligible for exemption of import duty on the goods imported;

c) Goods, equipment imported as fixed assets of a preferential project and transferred to another entity (change of project investor) are still eligible for exemption of impart tax if the conditions below are fully satisfied:

c.1) At the time of transfer, the project is still eligible for investment incentives according to the Law on Export and import duty and its guiding documents;

c.2) Transfer prices for machinery and equipment as fixed assets are exclusive of import duty;

c.3) The transferee (new investor) is the investor in the transferred project according to the adjusted certificate of investment.

Within 10 days from the transfer date, the transferor and the transferee must declare the transfer at the customs office where the list of duty-free goods is registered.

d) Any finance lease company that imported goods machinery, equipment, and vehicles and leases them out to the subject eligible for exemption of import duty specified in Clause 7, Clause 9, Clause 11, Clause 12, and Clause 14 of this Article is also eligible for exemption of import duty as if goods are directly imported by the project investor if the conditions below are fully satisfied:

d.1) The rent under the finance lease contract is exclusive of import duty;

d.2) Imported goods that are exempted from tax are deducted from the list of duty-free goods and monitoring sheet for duty-free goods of preferential projects made by its investor.

When the finance lease contract expires, if leased goods that are exempted from tax are not used for the preferential project as intended, the finance lease contract shall pay tax as instructed in Article 21 of this Circular. Other imported goods must not be used for the preferential project instead of the leased goods on which import is exempt.

dd) Regarding promoted project issued with an investment license and certificate of investment incentives before Decree No. 87/2010/ND-CP comes into force, if the export or import duty incentives on such investment license and certificate of investment incentives are more beneficial than those prescribed in Decree No. 87/2010/ND-CP, the more beneficial incentives shall apply if the conditions below are fully satisfied:

dd.1) The Investment license and certificate of investment incentives are unexpired, and the investment incentive terms are unchanged.

The incentives on the investment license, certificate of investment incentives is conformable with law at the time of their issuance;

dd.2) The list of duty-free goods is registered as prescribed.

If the import or export duty incentives on the investment license or certificate of investment incentives are less beneficial than those prescribed in Decree No. 87/2010/ND-CP, the latter may be applied for the remaining incentive period of the project.

Article 104. Registration of list of imported goods exempt from tax (hereinafter referred to as “duty-free goods”)

1. Cases in which the List of duty-free goods must be registered:

The goods specified in Clause 1, Clause 4, and Clause 5 Article 12 of Decision No. 72/2013/QD-TTg, Clause 7, Clause 8, Clause 9, Clause 10, Clause 11, Clause 12, Clause 13, Clause 14, Clause 15, Clause 16, Clause 18, and Clause 21 Article 103 of this Circular.

2. The list of duty-free goods must suit the business lines, targets, scale, capacity of the project, and shall be compiled once for the entire project execution process or for each stage, each item of the project (if the certificate of investment, economic – technical argument, documents of the project show that the project is divided into various stages or items), or each compound, technological line if goods are compounds or technological lines.

If the list for the entire project execution process or each state, item, compound, line of the project is incorrect or must be changed, the customs declarant may adjust it as long as documents proving such adjustment is appropriate are submitted to the customs office before goods are imported.

3. Goods users (project investor, shipyard owner, etc.) shall register the list of duty-free goods (according to form No. 13/DKDMMT/TXNK in Appendix VI to this Circular if a paper list is registered). If the general contractor or sub-contractor or a finance lease company imported goods instead of the project investor, the contractor or finance lease company shall use the list of duty-free goods registered with the tax office by the investor.

4. Places to registering the list

The Provincial-level Customs Department where the project is executed (if identifiable) or the Provincial-level Customs Department in which the headquarter is located (if the Provincial-level Customs Department where the project is executed is not identifiable) or the Customs Department of the nearest province (if there is no customs office in the province) the Director of Customs Department shall appoint a capable unit to grant registration the list of duty-free goods.

If a Customs Department is in charge of multiple provinces, its Director may also appoint the Customs Branch in charge of the province to grant registration of the List of duty-free goods to the projects located therein.

5. Registration dossier

When registering the list of duty-free goods with the customs office, the taxpayer that registers the list shall submit a dossier to the customs office, which must comprise:

a) A registration made according to form No. 14/CVDKDMMT/TXNK in Appendix VI attached to specifying the quantity of goods, reasons for tax exemption: 01 original;

b) A list of duty-free goods if it is not registered on the System: 02 original attached to 01 monitoring sheet (according to form No. 15/PTDTL/TXNK in Appendix VI to this Circular).

6. The basis for the customs declarant to register the list of duty-free goods with the customs office:

a) The fields or administrative division eligible for import duty incentives as prescribed by relevant laws;

b) The list of goods issued by a competent agency in the following cases:

b.1) The list of machinery, equipment, spare parts, dedicated vehicles, raw materials or supplies, semi-finished products that can be domestically manufactured according to the Ministry of Planning and Investment’s regulations;

b.2) The list or criteria for identification of dedicated vehicles in technological lines compiled by the Ministry of Science and Technology;

b.3) The list of permissible imported plant varieties and animal breeds compiled by the Ministry of Agriculture and Rural Development;

b.4) The list of equipment, the first import of which is exempted from import duty according to Appendix II and Article 12 of Decree No. 87/2010/ND-CP;

b.5) The list or criteria for identification of dedicated vehicles serving oil and gas activities compiled by the Ministry of Science and Technology;

b.6) The list of medical equipment and emergency medicines on oil rigs and floating works confirmed by the Ministry of Health;

b.7) The list or criteria for identification of dedicated vehicles in technological lines that are fixed assets of shipyards issued by the Ministry of Science and Technology;

b.8) The list of machinery, equipment, spare parts, supplies, vehicles directly serving R&D that can be domestically manufactured issued by the Ministry of Planning and Investment.

7. The registration must be applied for before the first declaration of exported goods and imported goods of the project, item, or stage, or expanded project is registered.

8. The taxpayer shall:

a) Register, adjust the list of duty-free goods vie the System as follows (unless registration of the list via the System is not available):

a.1) Provide information about the list of duty-free goods according to standard format and criteria on the System;

a.2) Submit documents attached to the registration dossier or adjustment of the list of duty-free goods prescribed in this Article;

a.3) Receive feedbacks from the customs office via the System;

a.4) Retain documents that are the basis for identification of duty-free goods and present them to the customs office or a competent agency in the course of inspection.

b) Determine the need for duty-free goods and compile the list of duty-free goods (hereinafter referred to as “duty-free list”) as prescribed;

c) Take legal responsibility for the accuracy and truthfulness of the duty-free goods on the list and using them for appropriate purposes.

9. Responsibilities of the customs office:

a) The customs office shall receive and process the application within 10 working days from the day on which it is received as follows:

a.1) If goods are ineligible for tax exemption, the customs office shall notify the applicant in writing of the refusal to grant the registration.

If the field or location of the project is eligible for investment incentives but goods on the list of duty-free goods are not suitable for the target, scale of the project, the customs office shall instruct the applicant to adjust the list;

a.2) If the basis for identification of duty-free goods specified at Point a.1 is insufficient, the tax office shall accept the information provided by the applicant, record it to the logbook, append the seal on 02 copies of the list of duty-free goods and 01 copy of the reconciliation monitoring sheet in case of registration of a paper list; (01 copy of the list of duty-free goods and 01 copy of the reconciliation monitoring sheet shall be given to the taxpayer; 01 copy of the list of duty-free goods shall be retained by the customs office);

a.3) If the basis for identification of goods that satisfy the conditions specified at Point a and Point c Clause 7 of Article 103 is not ample at the time of registration of the list of duty-free goods, the customs office where the list is registered shall write a note on the list and the reconciliation monitoring sheet for comparison upon import or for post-customs clearance inspection;

a.4) Write a note of the document inspection result on the list of duty-free goods for the Customs Branch where export or import procedures are followed to carry out inspection and comparison upon import of goods or for post-customs clearance inspection.

b) If the list of duty-free goods is registered via the System, the customs office shall:

b.1) Receive and process the application in accordance with regulations of this Article;

b.2) Issue an identification number, enter information about the result on the System;

b.3) Give feedbacks to the customs declarant via the System;

c) Reporting:

Every 03 months, not later than the 10^th of the first month of the next quarter, the Customs Department where the list of duty-free goods is registered shall make a list of duty-free goods registered therein and send a report to the General Department of Customs (according to form No. 16/BCTHDMMT/TXNK in Appendix VI to this Circular);

d) The Director of the Customs Department shall cooperate with competent agencies to collect information serving the inspection of applications for lists of duty-free goods as specified at Point a of this Clause, carry out post-customs clearance inspection to determine whether the duty-free goods are used for appropriate purposes, and impose penalties for violations.

The customs office shall inspect all the cases of goods imported under international agreements within 03 years from the time of registration of the list of duty-free goods or the time of import of duty-free goods.

10. After the customs office confirms the registration of the list of duty-free goods and the reconciliation monitoring sheet, if the list is found incorrect (such as the quantity of goods exceeds the scale of the project; categories of goods are not appropriate for the target and purposes, etc.), the customs office where the list is registered shall:

a) Request the applicant to adjust the list;

b) Inspect the adjustment and update the result;

c) Collect tax on the excess quantity of goods compared to the adjusted goods.

11. In case the certificate of investment of a project is revoked:

a) The customs office where the list of duty-free goods (hereinafter referred to as “duty-free list”) is registered shall:

a.1) Remove the list of duty-free goods from the System after checking and making a backup outside the System as instructed by the General Department of Customs.

If a physical duty-free list has been registered, it shall be revoked;

a.2) Notify and request customs offices nationwide to stop granting tax exemption to goods on the duty-free list.

b) The customs offices that granted tax exemption to the project shall collect tax as prescribed.

12. In case of registration of a paper list, if the list and the reconciliation monitoring sheet is lost, according to the confirmation of Customs Departments of other provinces of the loss of the list and the reconciliation monitoring sheet, the customs office where the list is registered shall check and reissue the list of duty-free goods and monitoring sheet for the goods pending export or import of the project.

The list of duty-free goods and monitoring sheet shall be reissued as follows:

a) A dossier of request for reissuance must comprise:

a.1) A written request for reissuance of the list of duty-free goods and monitoring sheet specifying the reasons for losing the list and the reconciliation monitoring sheet;

a.2) The list of duty-free goods and the reconciliation monitoring sheet issued by the customs office where the last shipment was processed before the loss (01 photocopy certified by the customs office where goods are imported).

b.2) In case the reconciliation monitoring sheet is lost:

b.2.1) According to the notification and the request for reissuance of the reconciliation monitoring sheet, the customs office shall:

b.2.1.1) Notify the Customs Departments of other provinces of the cancellation of the lost monitoring sheet, request them to confirm the quantity of duty-free goods exported or imported (the numbers and dates of the list and monitoring sheet must be specified);

b.2.1.2) Within 10 days after receiving the notification, the Customs Departments of other provinces shall check customs dossier; export and import data system, determine the quantity of duty-free goods exported, imported according to the list of duty-free goods and monitoring sheet, send a written confirmation to the notifying customs office; suspend processing tax on the next shipment of goods on the list of duty-free goods and monitoring sheet that are lost until new ones are reissued.

b.2.2) After receiving the confirmations of quantity of exported goods and imported goods from other Customs Departments, the customs office shall:

b.2.2.1) Calculate the total quantity of exported goods and imported goods according to the list of duty-free goods and the reconciliation monitoring sheet that were issued;

b.2.2.2) Verify the quantity of duty-free goods of the project and the use of them before reissuing the reconciliation monitoring sheet;

b.2.2.3) Reissue the reconciliation monitoring sheet for the remaining quantity of goods pending export or import;

b.2.2.4) Write “1^st reissuance” on the reissued monitoring sheet;

b.2.2.5) Impose penalties for violations against according to retention of documents.

The time limit is 05 working days from the day on which confirmations are received from other Customs Departments.

Within 01 years from the reissuance of the list and monitoring sheet, the customs office shall carry out a post-customs clearance inspection of the project.

Article 105. Dossiers and procedures for tax exemption

1. The customs dossier specified in this Circular shall be tax exemption documents.

In case the taxpayer faces objective difficulties and other cases in which import and export duties is exempted prescribed by the Government, import duty is exempted, it is required to have written confirmation of the difficulties provided by a competent agencies.

2. Procedures for granting tax exemption:

a) If registration of a duty-free list is not required:

a.1) The taxpayer shall calculate and declare the amount of exempt tax on each article (except for goods imported for processing). The customs declaration is similar as the case in which tax must be paid. The customs office shall compare the tax exemption documents and the amount of tax to be exempted with applicable regulations to carry out procedures for granting exemption to each of the customs declaration as prescribed.

If the customs office determines that exported goods or imported goods are ineligible for tax exemption as declared, tax shall be collected, and penalties shall be imposed (if any);

a.2) In case the taxpayer faces objective difficulties and other cases in which import and export duties is exempted prescribed by the Government:

a.2.1) The taxpayer shall determine the amount of exempt tax and submit a written request (attached to relevant documents) to the General Department of Customs (the General Department of Customs shall send a report to the Ministry of Finance, and the Ministry of Finance shall request the Prime Minister to consider granting tax exemption);

a.2.2) The General Department of Customs shall check all documents. If documents are not satisfactory or the reasons for tax exemption must be clarified, the taxpayer shall be notified in writing. After the basis is ample, the General Department of Customs shall send a draft report to the Ministry of Finance, which is then submitted to the Prime Minister;

a.2.3) According to the directive of the Prime Minister, the Ministry of Finance shall send a notification to taxpayer and relevant customs office;

a.2.4) The customs office where procedures for export or import of goods are followed shall grant exemption of export duty or import duty on the corresponding quantity of goods or collect tax in full as directed by the Prime Minister.

b) If registration of a duty-free list is required:

b.1) The taxpayer and customs office shall follow the guidance specified at Point a.1 Clause 2 of this Article;

b.2) The System shall automatically deduct the corresponding quantity exported goods or imported goods according to the list of duty-free goods.

In case of registration of a paper list, in addition to the customs procedures specified at Point a.1 Clause 2 of this Article, the customs office shall update the quantity, deduct the quantity of duty-free goods that are exported/import on the original monitoring sheet, and append signatures. 01 photocopy of the duty-free list and monitoring sheet on which the names, quantity of duty-free goods that are exported or imported are specified shall be kept together with the customs dossier (even if the duty-free goods are transferred to another entity that is also eligible for tax exemption).

If tax exemption is granted to a compound or machinery line that must be divided into multiple shipments to be assembled into a complete compound or machinery line, thus goods quantity cannot be deducted importation, then the deduction shall be carried out after the compound or machinery line is completely imported. To be specific:

The taxpayer shall import the shipments at 01 Customs Branch and estimate the time of completion of the import.

At the time of import, the taxpayer must declare the specific quantity, names of goods to be imported, and specify which articles are on the registered list of duty-free goods.

Within 15 days from import the last shipment of each compound or machinery line, the taxpayer shall aggregate the import declarations in order for the customs office to monitor and deduct the quantity of goods on the reconciliation monitoring sheet.

The Director of Customs Department shall decide the cases in which goods quantity cannot be deducted at the time of importation and carry out post-customs clearance inspection in order to determine whether declared duty-free goods are appropriately used for the project according to applicable regulations, and impose penalties for any violation that is committed;

b.3) The customs office shall only grant tax exemption if the customs declaration is registered after the list of duty-free goods is registered. The Director of the Customs Department where export or import procedures are followed shall cooperate with the Customs Department where the list of duty-free goods is registered in considering the cases in which the customs declaration that is registered before the registration date of the list;

b.4) Within 30 days from the day on which exported/import goods are completed deducted by the System, the customs office where the list of duty-free goods is registered shall remove the list from the System after it is checked and backed up as instructed by the General Department of Customs.

In case of registration of a paper list, after the quantity of imported goods on the reconciliation monitoring sheet is completely deducted, the customs office that processes the last shipment shall make a confirmation on the reconciliation monitoring sheet, keep 01 photocopy, give 01 photocopy to the customs declarant, and send the original to the customs office which issued the reconciliation monitoring sheet.

If the customs office where the list is registered also processes the last shipment, after the quantity of imported goods on the reconciliation monitoring sheet is completely deducted, the customs office shall keep the original for inspection of the import, use of duty-free goods, and give 01 photocopy to the customs declarant.

3. Exemption of tax on exported goods or imported goods sent by express mail shall comply with the Ministry of Finance’s Circular on customs procedures applicable to exported goods and imported goods sent by express mail.

Article 106. Reporting, inspecting the use of imported duty-free goods

1. Reporting time:

Every year, within 90 days from the end of the fiscal year, the taxpayer that registered the list of duty-free goods shall submit a report on the use of imported duty-free goods during the fiscal year to the customs office where the list is registered.

2. The report shall specify:

a) The use of imported duty-free goods:

a.1) The quantity of imported goods used for duty-free purposes;

a.2) The quantity of imported goods used for other purposes;

a.3) The quantity of imported goods that are unused;

a.4) The imported duty-free goods recorded as fixed assets according to the Ministry of Finance’s Circular No. 45/2013/TT-BTC dated April 25, 2013.

b) The list of deduction of imported duty-free goods shall be monitored by the taxpayer.

The report contents must comply with form No. 17/BCKT-NKMT/TXNK in Appendix VI to this Circular.

3. Late submission of the report shall result in administrative penalties in accordance with law provisions. If the taxpayer fails to submit the report within 30 days from the deadline for submitting the report, the customs office shall update information about the taxpayer’s conformity with law on the risk management system and carry out a post-customs clearance inspection at the taxpayer’s premises.

4. The customs office where the list of duty-free goods is registered shall:

a) Receive, review, analyze, and retain reports on use of duty-free goods;

b) Carry out inspection at taxpayers’ premises according to decisions of the Director of the Customs Department. Inspections shall be carried out in accordance with Chapter VIII of this Circular;

c) Collect tax fully and impose penalties in the following cases:

c.1) Duty-free goods are used for inappropriate purposes;

c.2) Goods that are ineligible for tax exemption are declared as duty-free goods and granted customs clearance according to the taxpayer’s declaration

c.3) The total quantity of imported raw materials or supplies exceeds the demand for duty-free goods for 05 years according to Clause 15 and Clause 18 Article 103 of this Circular.

Section 2. CASES OF CONDITIONAL TAX EXEMPTION, PROCEDURES FOR GRANTING CONDITIONAL TAX EXEMPTION

Article 107. Cases of conditional tax exemption

Exported goods and imported goods in the following cases shall be eligible for conditional tax exemption:

1. Imported goods are particularly used for national defense and security under specific plans approved by the competent Ministry, which have been registered and concurred with by the Ministry of Finance (they must be classified into goods funded by central budget and goods funded by local budget).

Imported goods are particularly used for national defense and national security that are funded by local budget are only eligible for conditional tax exemption if they cannot be domestically manufactured. The basis for identifying goods that cannot be domestically manufactured is the list of goods that can be domestically manufactured compiled by the Ministry of Planning and Investment.

2. Imported goods are particularly used for scientific research (except for the case in Clause 13 Article 12 of Decree No. 87/2010/ND-CP) according to the list approved by the competent Ministry.

3. Imported goods are particularly used for education and training according to the list approved by the competent Ministry.

4. Goods permitted to be exported, imported as gifts, samples from a foreign entity to a Vietnamese entity and vice versa are eligible for conditional tax exemption according to regulations of the Prime Minister.

If the value of gifts or samples whose exceeds the duty-free allowance, tax on the excess value shall be imposed. The whole value of the shipment is eligible for conditional tax exemption in the following cases:

a) The recipient of gifts is a public administration unit, socio-political organization, socio-political-professional organization, socio-professional organization, economic organization, social organization. Conditional tax exemption shall be considered on a case-by-case basis;

b) Goods are humanitarian or charitable gifts.

5. In case the materials, machinery and equipment imported for inward processing or manufacturing of domestic exported goods under the contract are totally damaged and unusable because of a natural disaster, conflagration, accident, import duty shall be exempted and value-added tax shall be cancelled when goods are imported if conditions below are fully satisfied (unless the damage is caused by violations of law in the HD981 standoff event, to which other the Ministry of Finance’s guidance appliess):

a) Goods are granted customs clearance, a competent agency determines that the damage is caused by a natural disaster, conflagration, or accident, and all of the goods are damaged and unusable;

b) The customs have examined accounting records and relevant documents and concluded that the materials, machinery and equipment have been imported but lost because of the natural disaster, conflagration, or accident, and thus cannot be sold in Vietnam or exported abroad.

In case the lost materials, machinery and equipment are insured, and the insurer has provided indemnity against the damage, including VALUE-ADDED TAX, import duty and value-added tax shall not be exempted or cancelled.

Article 108. Dossier of request for conditional tax exemption

1. In the cases specified in Clause 1, Clause 2, Clause 3, Clause 4 Article 107, the dossier of request for conditional tax exemption must comprise:

a) A written request for tax exemption submitted by the user of exported goods or imported goods (except for Point c.1 of this Clause) which specifies the value, tax, reasons for conditional tax exemption, customs declaration number(s): 01 original

b) A sale contract (if any): 01 photocopy;

c) Other documents on a case-by-case basis as follows:

c.1) A written request for conditional tax exemption made by the Ministry of National Defence, the Ministry of Public Security or a unit authorized by the Ministry of National Defence or the Ministry of Public Security specifying that goods are imported to serve national defense and security and funded by central/local budget; quantity, categories, value of imported goods; tax amount, customs declaration number(s) (and a monitoring sheet in case of partial shipments);

c.2) The import entrustment contract (in case of entrustment) or notice of successful bidder attached to the goods supply contract (if goods are imported through bidding), which specifies that the prices are exclusive of import duty: 01 photocopy;

c.3) A decision to approve the research and list of necessary goods to be imported made by the competent Ministry if goods are imported to serve scientific research: 01 photocopy of the decision, 01 photocopy of the list of necessary goods attached to the originals for comparison (a monitoring sheet must be enclosed in case of partial shipments);

c.3) A decision to approve the project of investment in equipment and the list of equipment to be imported made by the competent Ministry if goods are imported to serve education and training: 01 photocopy of the decision (a monitoring sheet must be enclosed in case of partial shipments);

c.5) If goods are gifts or samples:

c.5.1) A notice or decision or agreement of giving goods; a notice or agreement on shipment of samples: 01 photocopy;

c.5.2) If temporarily imported goods are kept as gifts for Vietnamese entities instead of being re-exported, it is required to have a license issued by a competent agency and the quantity must not exceed the allowance prescribed by the Government;

c.5.3) A confirmation made by a superior agency of the permission to receive duty-free goods that are used as gifts whose value exceed the duty-free allowance for a public administration unit, socio-political organization, socio-political-professional organization, socio-professional organization, economic organization, social organization which is funded by state budget beyond the allowance for conditional tax exemption.

2. In case of damaged materials, machinery and equipment that are imported for inward processing or manufacturing of domestic exported goods specified in Clause 5 Article 107 of this Circular, the dossier of request for conditional tax exemption of import duty or cancellation of value-added tax when goods are imported must comprise:

a) A written request for exemption of import duty or cancellation of value-added tax on the imported materials, machinery and equipment that are totally damaged and unusable. The request must specifies the reason for damage, ratio of damage, customs declaration number, amount of tax to be exempt, and the commitment to take legal responsibility for the declaration: 01 original;

b) A written confirmation of the conflagration made by the local fire department; a written confirmation of the commune-level People’s Committee where the natural disaster or accident occurs: 01 original;

The aforementioned documents must be made right after the natural disaster, conflagration, or accident occurs.

c) A certification made by a professional analysis service provider of the quantity of imported materials, machinery and equipment that are damaged, the damage ratio of imported goods, or the fact that goods are no longer usable: 01 photocopy;

d) A insurance contracts, notice of indemnity payment made by the insurer (if any): 01 photocopy;

dd) The insurer’s confirmation that the insurance contract does not cover loss of tax: 01 photocopy.

If the damaged shipment is not insured, the taxpayer must have specify that goods are not insured on the written request specified at Point a of this Clause.

3. In case of paper declaration, the paper declaration must be submitted in addition to the documents specified in Clause 1 and Clause 2 of this Article.

Article 109. Procedures for considering tax exemption

1. Submission and receipt of the dossier of request for conditional tax exemption

a) The taxpayer submits the application to the customs office competent to consider tax exemption as specified in Article 110 of this Circular. If the case must be considered by the Ministry of Finance, the taxpayer shall submit the application to the General Department of Customs.

If imported goods are eligible for conditional tax exemption, the application must be submitted within 30 working days from the day on which goods are granted customs clearance or released.

In case materials, machinery and equipment that are imported for inward processing or manufacturing of domestic exported goods are damaged because of a natural disaster, conflagration, or accident, the application must be submitted within 30 working days from the date the damage is confirmed by a competent agency;

b) If the application is submitted directly at a customs office, the customs officer shall receive it and append a seal on the application, write the receipt time and documents in the application;

c) If the application is sent by post, the Customs Branch shall write the receipt date on the logbook of the customs office;

d) If the application is submitted electronically, it shall be received, checked, and accepted via the System.

2. The customs office shall be responsible for examining the application submitted by the taxpayer and performs the following tasks:

a) If the application is not satisfactory, the tax office shall notify the taxpayer within 03 working days from the day on which it is received;

b) The customs office shall check the consistency between the declaration on the System and the application.

If goods are imported to serve national defense and security, the customs office shall compare the application with the lists of goods serving national defense and security compiled by the Ministry of National Defence and the Ministry of Public Security;

c) Within 15 days from the date the satisfactory dossier is received, the customs office shall issue a decision on tax exemption, or notify the taxpayer of the reasons for rejection and the amount of tax payable if the application is rejected. If site inspection is necessary, the said time limit may be extended up to 40 days from the date the satisfactory dossier is received.

If the taxpayer has submitted a satisfactory application while carrying out customs procedures, the customs office shall examine the application, conditions for conditional tax exemption, and grant tax exemption within the time limit for completion of customs procedures specified in Article 23 of the Customs Law;

d) In case materials, machinery and equipment imported for inward processing or manufacturing of domestic exported goods are damaged, the customs office shall examine accounting records and inventory documents related to the damaged shipment; compare the transactions of the taxpayer to determine the level of damage and make sure damage is caused by a natural disaster, conflagration, or accident; all of the imported goods are totally damaged, unusable, cannot be sold on the domestic market or exported.

The inspection must be completed within 40 days from the date the satisfactory dossier is received.

If the inspection result shows that the imported materials, machinery and equipment are eligible for tax exemption or tax cancellation, the Customs Department where import procedures are carried out shall issue a decision on exemption of import duty or cancellation of VALUE-ADDED TAX on damaged goods, which is the basis for tax refund (if any).

3. On the basis of the decision on tax exemption, the customs office where the customs declaration is registered shall record the amount of exempt tax on the System.

Article 110. Competence to consider tax exemption

1. The Ministry of Finance shall consider exemption of tax on goods that are gifts whose value exceeds the duty-free allowance specified in Clause 4 Article 107 of this Circular.