Circular No. 80/2019/TT-BTC dated November 15, 2019 of the Ministry of Finance on guiding customs procedures, and management of taxes, charges and fees for exports and imports under the Government’ Decree No. 14/2018/ND-CP of January 23, 2018, prescribing in detail border trade activities

CIRCULAR

Guiding customs procedures, and management of taxes, charges and fees for exports and imports under the Government’ Decree No. 14/2018/ND-CP of January 23, 2018, prescribing in detail border trade activities^[1]

Pursuant to the June 23, 2014 Customs Law;

Pursuant to the November 29, 2006 Law on Tax Administration; the November 20, 2012 Law Amending and Supplementing a Number of Articles of the Law on Tax Administration; the November 26, 2014 Law Amending and Supplementing a Number of Articles of the Laws on Taxes; and the April 6, 2016 Law Amending and Supplementing a Number of Articles of the Law on Value-Added Tax, Law on Excise Tax and Law on Tax Administration;

Pursuant to the April 6, 2016 Law on Import Duty and Export Duty;

Pursuant to the June 12, 2017 Law on Foreign Trade Management;

Pursuant to the Government’s Decree No. 08/2015/ND-CP of January 21, 2015, detailing, and providing measures to implement, the Customs Law regarding customs procedures, inspection, supervision and control; and Decree No. 59/2018/ND-CP of April 20, 2018, amending and supplementing a number of articles of the Government’s Decree No. 08/2015/ND-CP of January 21, 2015, detailing, and providing measures to implement, the Customs Law regarding customs procedures, inspection, supervision and control;

Pursuant to the Government’s Decree No. 134/2016/ND-CP of September 1, 2016, detailing a number of articles of, and providing measures to implement, the Law on Import Duty and Export Duty;

Pursuant to the Government’s Decree No. 69/2018/ND-CP of May 15, 2018, detailing a number of articles of the Law on Foreign Trade Management; 

Pursuant to the Government’s Decree No. 112/2014/ND-CP of November 21, 2014, providing the management of land border gates;

Pursuant to the Government’s Decree No. 01/2015/ND-CP of January 2, 2015, detailing the scope of areas of customs operation, and responsibilities for coordination in prevention and combat of cross-border smuggling and illegal transportation of goods; and Decree No. 12/2018/ND-CP of January 23, 2018, amending and supplementing a number of articles of the Government’s Decree No. 01/2015/ND-CP of January 2, 2015, detailing the scope of areas of customs operation, and responsibilities for coordination in prevention and combat of cross-border smuggling and illegal transportation of goods;

Pursuant to the Government’s Decree No. 14/2018/ND-CP of January 23, 2018, prescribing in detail border trade activities;

Pursuant to the Government’s Decree No. 87/2017/ND-CP of July 26, 2017, defining the functions, tasks, powers and organizational structure of the Ministry of Finance;

At the proposal of the General Director of Customs,

The Minister of Finance promulgates the Circular guiding customs procedures, and management of taxes, charges and fees for exports and imports under the Government’ Decree No. 14/2018/ND-CP of January 23, 2018, prescribing in detail border trade activities.

Chapter I

GENERAL PROVISIONS

Article 1.Scope of regulation

This Circular guides customs procedures, and management of taxes, charges and fees for traders’ exports and imports; customs procedures, and management of taxes, charges and fees for border residents’ exports and imports; and responsibility of customs offices for state management of border trade activities.

Article 2.Subjects of application

1. Traders, and organizations and individuals engaged in border trade activities;

2. Customs offices, customs officers, and agencies and organizations managing and administering border trade activities;

3. Other agencies, organizations and individuals involved in border trade activities under this Circular.

Chapter II

CUSTOMS PROCEDURES, MANAGEMENT OF TAXES, CHARGES AND FEES FOR TRADERS’ EXPORTS AND IMPORTS

Article 3.Customs procedures, management of taxes, charges and fees for traders’ exports and imports

1. Customs procedures for goods imported and exported across border gates by traders must comply with the Government’s Decree No. 08/2015/ND-CP of January 21, 2015, which was amended and supplemented under the Government’s Decree No. 59/2018/ND-CP of April 20, 2018, and the Minister of Finance’s Circular No. 38/2015/TT-BTC of March 25, 2015, which was amended and supplemented under the Minister of Finance’s Circular No. 39/2018/TT-BTC of April 20, 2018; traders shall fulfill their obligations on taxes, charges and fees as prescribed by law.

2. Goods imported and exported across border gates by traders must comply with the laws on commodity policies, quarantine, and quality control and food safety inspection.

Goods imported across auxiliary border gates or border crossings must comply with Clause 2, Article 3 of the Minister of Industry and Trade’s Circular No. 01/2018/TT-BCT of February 27, 2018.

3. To carry out cross-border goods trading and exchange activities, traders defined in Article 5 of the Government’s Decree No. 14/2018/ND-CP of January 23, 2018, shall obtain tax identification numbers before carrying out customs procedures.

Article 4.Customs procedures, management of taxes, charges and fees for imports purchased by traders from border residents

1. When purchasing goods of border residents at border markets under Clauses 1 and 2, Article 14 of the Government’s Decree No. 14/2018/ND-CP of January 23, 2018, traders shall make a list of purchased goods according Form BK-MGHCDBG 2019/HQVN provided in Appendix I to this Circular.

2. Customs procedures for imports purchased by traders from border residents are the same as those for goods imported across border gates by traders prescribed in Article 3 of this Circular. Traders shall submit the originals of border residents’ imports declarations, made according to Form HQ2019/TKNKBG provided in Appendix II to this Circular, and the originals of lists of purchased goods, made according to the form provided in Clause 1 of this Article in substitution for contracts and commercial invoices. Trader shall fulfill their obligations on taxes, charges and fees for imports under law.

The time limit for submitting customs dossiers is 30 days after the date of purchase of goods.

3. Places for customs clearance: Traders purchasing goods of border residents at border markets shall make customs registration and declaration at the nearest border-gate customs branches of the places where they have purchased the goods.

4. Traders purchasing imports of border residents may sell or transport the purchased goods from border markets or places for goods gathering and inspection prescribed in Clause 5 of this Article into the inland only after completing customs procedures, fully paying taxes and other amounts (if any) under law. Traders may use the cleared customs declarations as documents for sale and transportation of goods into the inland.

5. Upon the performance of import procedures, goods purchased by traders from border residents shall be gathered to facilitate goods inspection at border gates, places for centralized inspection or places for goods gathering and inspection in border areas, or other places recognized or established in border areas by customs offices.

Article 5.Customs inspection and supervision of traders’ exports and imports and imports purchased by traders from border residents

The customs inspection and supervision of traders’ exports and imports and imports purchased by traders from border residents must comply with Articles 29, 30 and 34 of the Government’s Decree No. 08/2015/ND-CP of January 21, 2015, which was amended and supplemented under Clause 14, Article 1 of the Government’s Decree No. 59/2018/ND-CP of April 20, 2018, and the Minister of Finance’s Circular No. 38/2015/TT-BTC of March 25, 2015, which was amended and supplemented under the Minister of Finance’s Circular No. 39/2018/TT-BTC of April 20, 2018, and other legal documents related to customs inspection and supervision.

Chapter III

CUSTOMS PROCEDURES, MANAGEMENT OF TAXES, CHARGES AND FEES FOR BORDER RESIDENTS’ EXPORTS AND IMPORTS

Article 6.Customs procedures, management of taxes, charges and fees for border residents’ exports and imports

1. Border residents’ trading and exchange of goods across border gates or border crossings are export and import activities under law.

Border residents’ exports or imports shall be stated in exports declarations or imports declarations for border residents, made according to Form HQ2019/TKXKBG or HQ2019/TKNKBG provided in Appendix II to this Circular. Customs offices shall print these declarations according to set forms and deliver them to border residents.

2. A border-gate customs branch shall make certification on a goods declaration for border residents as follows: The declaration-receiving officer shall give his/her signature and append a seal in the top right corner of the declaration; the customs officer calculating and collecting taxes shall give his/her signature and append a seal in the declaration’s section for tax calculation and collection reserved for the customs office.

3. Border residents shall import goods according to the list of goods provided in Appendix I to the Minister of Industry and Trade’s Circular No. 02/2018/TT-BCT of February 27, 2018. In case the value of the imports exceeds the duty-free limit prescribed in Article 13 of the Government’s Decree No. 14/2018/ND-CP of January 23, 2018, border-gate customs branches shall calculate taxes in imports declarations for border residents, collect taxes and other amounts (if any) in accordance with law right at border gates and border crossings.

4. Border residents’ exports must comply with regulations on taxes and commodity policies; border-gate customs branches shall calculate and collect taxes and other amounts (if any) in accordance with law right at border gates or border crossings.

5. At border gates or border crossings of the localities where state treasury offices or commercial banks do not establish places for collection of taxes and other amounts belonging to the state budget, customs offices shall collect taxes and other amounts in cash (if any) under regulations and issue written receipts. The transfer of the collected tax amounts into the state budget must comply with Article 3 and Clause 3, Article 21 of the Minister of Finance’s Circular No. 184/2015/TT-BTC of November 17, 2015.

6. Goods traded and exchanged across border gates and border crossings by border residents shall be subject to quarantine, quality control and food safety inspection under Article 15 of the Government’s Decree No. 14/2018/ND-CP of January 23, 2018.

7. For border residents’ imports which are within the duty-free limit but not used for their production and consumption, their resale shall be accompanied by the border residents’ imports declarations for purchasing traders to make registration and declaration with customs offices under Article 4 of this Circular.

Article 7.Customs inspection and supervision of border residents’ exports and imports

1. Border residents’ imports in excess of the duty-free limit prescribed in Article 13 of the Government’s Decree No. 14/2018/ND-CP of January 23, 2018 shall be subject to physical inspection upon performance of customs procedures.

2. The physical inspection of exports of border residents shall be decided by the director of a border-gate customs branch on the basis of information on the goods prescribed in Articles 29 and 30 of the Government’s Decree No. 08/2015/ND-CP of January 21, 2015, which was amended and supplemented under Clause 14, Article 1 of the Government’s Decree No. 59/2018/ND-CP of April 20, 2018, and the Minister of Finance’s Circular No. 38/2015/TT-BTC of March 25, 2015, which was amended and supplemented under the Minister of Finance’s Circular No. 39/2018/TT-BTC of April 20, 2018, and other legal documents related to customs inspection.

3. In case of physical inspection of goods, the inspecting border-gate customs officer shall give his/her signature and append a seal in the declaration’s section for physical inspection reserved for the customs office.

4. Customs supervision of border residents’ exports and imports: The customs officer shall personally conduct supervision at a border gate or border crossing, and make certification of the supervision, give his/her signature and append a seal in the declaration’s section for supervision after the goods are cleared from customs procedures and fully meet the conditions for being brought out of the area of customs supervision.

Chapter IV

CUSTOMS OFFICES’ RESPONSIBILITY FOR STATE MANAGEMENT OF BORDER TRADE ACTIVITIES

Article 8.Customs offices’ state management of border trade activities

The General Department of Customs shall coordinate with units under the Ministry of Industry and Trade, Ministry of National Defense and Ministry of Agriculture and Rural Development, and related units in guiding and managing border trade activities in accordance with law.

Article 9.Responsibilities of customs offices for management of goods trading and exchange by border residents

1. The General Department of Customs shall develop a software for management, printing and receipt of border residents’ exports or imports declarations, and a software for tax administration and calculation for border residents’ exports or imports declarations which satisfy the requirements on duty-free imports management prescribed in Article 13 of the Government’s Decree No. 14/2018/ND-CP of January 23, 2018. The software for tax administration and calculation shall be connected to the software for management of border residents’ exports and imports declarations to facilitate tax calculation and collection.

2. In case a software for management of border residents’ exports and imports declarations is not yet available, border-gate customs branches shall open books for monitoring and receiving border residents’ exports and imports declarations, made according to Form STDHCDBG 2019/HQVN provided in Appendix III to this Circular.

3. The General Department of Customs shall establish a price database according to the list of goods traded and exchanged by border residents to serve consultation and reference when necessary.

Article 10.Responsibility for management of vehicles of individuals and organizations traveling across border areas

1. Border-gate customs branches shall manage, inspect and supervise vehicles of individuals and organizations traveling across border areas under Article 81 of the Government’s Decree No. 08/2015/ND-CP of January 21, 2015, which was amended and supplemented under Clause 49, Article 1 of Decree No. 59/2018/ND-CP of April 20, 2018, and the Minister of Finance’s Circular No. 50/2018/TT- BTC of May 23, 2018.

2. The General Department of Customs shall develop a software for management of vehicles of individuals and organizations traveling across border areas. In case such software is not yet available, border-gate customs branches shall open books for management of vehicles (made according to Form QLPT-BG 2019/HQVN provided in Appendix IV to this Circular) for management of vehicles of individuals and organizations traveling across border areas in accordance with law.

Chapter V

ORGANIZATION OF IMPLEMENTATION

Article 11.Organization of implementation

1. The General Director of Customs shall, pursuant to this Circular, guide customs offices for unified implementation thereof in order to facilitate border trade activities and properly perform the customs management.

2. Competent customs offices shall implement this Circular’s provisions on customs procedures, inspection and supervision, import duty and export duty, and tax administration in border trade activities. Customs offices, customs declarants and taxpayers shall report any problems arising in the course of implementation of this Circular to the Ministry of Finance (via the General Department of Customs) for consideration, guidance and settlement.

3. In the course of implementation of this Circular, if relevant legal documents referred to in this Circular are amended, supplemented or replaced, the amending, supplementing or replacing documents shall prevail.

Article 12.Effect

1. This Circular takes effect on January 1, 2020.

2. To annul the Minister of Finance’s Circular No. 217/2015/TT-BTC of December 31, 2015, guiding customs procedures for and tax administration of border trade activities of traders and border residents under the Prime Minister’s Decision
No. 52/2015/QD-TTg of October 20, 2015.-

For the Minister of Finance
Deputy Minister
VU THI MAI

* The appendices to this Circular are not translated.