Circular No. 63/2011/TT-BTC dated May 13, 2011 of the Ministry of Finance providing the pilot application of the priority regime in the state management of customs to eligible businesses

EXEMPTION FROM CHECKING IN AND AFTER CUSTOMS CLEARANCE FOR PRIORITIZED BUSINESSES

On May 13, 2011, the Ministry of Finance issued the Circular No. 63/2011/TT-BTC providing the pilot application of the priority regime in the state management of customs to eligible businesses.

Accordingly, prioritized businesses must have the lowest risk level and fully satisfy the 07 conditions: Having a record of the observance of the customs, tax, commercial, investment and enterprise laws or having been administratively sanctioned for their violations at the lowest sanctioning level; Having great export and import turnovers; practicing a transparent accounting regime; Conducting efficient business operations; Making via-bank payments for all of their exported or imported goods; Carrying out e-customs procedures; Requesting to be recognized as prioritized businesses.

The period for assessment of a business’s law observance is 36 (thirty six) months up to the date on which the General Department of Customs receives the business’s written request for being recognized as a prioritized business. Businesses which have operated for between over 12 months and under 36 months and satisfy the conditions may also be considered for being recognized as prioritized ones.

To condition of export and import turnover, the Circular regulates that businesses eligible for priorities in export and import of all goods items and in all forms of export and import, the export or import turnover must be at least USD 500 million/year; businesses eligible for priorities in export of fisheries products, farm produce and crude oil purely originating in Vietnam the export turnover must be at least USD 100 million/year; Businesses eligible for priorities in import of goods for production and export of hi-tech products, the General Department of Customs shall determine a specific export or import turnover appropriate to the characteristics of production and management technologies applied to each goods item.

Enterprises with full conditions will receive priorities at the stage of customs clearance: exemption from detailed examination of customs dossiers and exemption from physical inspection of goods; not conduct post-customs clearance inspection at the offices of these businesses; application of e-customs procedures (e-dossiers are exempt from inspection and replies are issued 24 hours a day and 7 days a week); priority in payment of duties and customs charges once per month; application of the regime of duty refund and liquidation first and inspection later

Also according to this Circular, the duration for a business to enjoy the priority regime for the first time is 12 months after the General Department of Customs signs a decision on application of the priority regime to this business. Upon the expiration of this duration, the General Department of Customs shall conduct revaluation and, if the business still satisfies the specified conditions, may extend the duration of application of the priority regime in many times and each extension shall be 36 months.