Decree No. 68/2016/ND-CP of the July 01, 2016 of the Government prescribing conditions on trading of duty-free goods, operation of warehouses, storing yards, and places for customs clearance, goods gathering and customs inspection and supervision

DECREE

Prescribing conditions on trading of duty-free goods, operation of warehouses, storing yards, and places for customs clearance, goods gathering and customs inspection and supervision[1]

Pursuant to the June 19, 2015 Law on Organization of the Government;

Pursuant to the June 23, 2014 Customs Law; 

Pursuant to the November 26, 2014 Investment Law;

At the proposal of the Minister of Finance;

The Government promulgates the Decree prescribing conditions on trading of duty-free goods, operation of warehouses, storing yards, and places for customs clearance, goods gathering and customs inspection and supervision.

Chapter I

GENERAL PROVISIONS

Article 1. Scope of regulation

1. This Decree prescribes in detail the conditions for recognition, expansion, narrowing, relocation, ownership transfer, suspension and termination of trading of duty-free goods, warehouses and storing yards, and places for customs clearance, goods gathering, and customs inspection and supervision.

2. Duty-free shops, warehouses, storing yards, and places for customs clearance, goods gathering and customs inspection and supervision prescribed in Clause 1 of this Article, in addition to meeting the conditions prescribed in this Decree, shall comply with other relevant laws.

Article 2. Subjects of application

1. Organizations and individuals that have rights and obligations related to the operation, expansion, narrowing, relocation, ownership transfer, suspension or termination of trading of duty-free goods, warehouses and storing yards, and places for customs clearance, goods gathering, and customs inspection and supervision.

2. Customs offices and officers.

3. Other state agencies engaged in the state management of customs.

Article 3. Interpretation of terms

In this Decree, the terms below are construed as follows:

1. Duty-free shop means a place that stores imported and domestically produced goods and sells them to persons entitled to tax incentives in accordance with law.

2. Isolation area in a seaport, an international civil airport, an international railway station or an international land border gate (below referred to as isolation area) means an area behind the area for exit procedures in a border-gate area, that is isolated or protected from surrounding areas.

3. Restricted area in an international civil airport (below referred to as restricted area) means an area behind the area for entry procedures and in front of the area for customs clearance in an international airport, that is isolated or protected from surrounding areas.

4. Petrol and oil depot means an area storing petrol and oil imported, exported or temporarily imported for re-export.

5. Off-airport freight terminal means a warehouse and storing yard area outside the border gate for storing imports and exports transported by air and subject to customs inspection and supervision.

6. Container freight station (CFS) means a warehouse and storing yard area for carrying out activities of gathering, division, packaging, arrangement and consolidation, and providing the service of transfer of the ownership of imported and exported goods of different owners consolidating their containerized cargoes.

7. Place for concentrated gathering, inspection and supervision of imports and exports means an area for gathering and customs inspection and supervision of imports and exports, with the function of storing and preserving imports and exports pending the customs clearance.

Chapter II

SPECIFIC PROVISIONS

Section I

TRADING OF DUTY-FREE GOODS

Article 4. Conditions for grant of a certificate of eligibility for duty-free goods trading

1. Location of a duty-free shop:

a/ In the isolation area in an international land border gate, international railway station or a type-1 seaport; or the isolation area or restricted area in an international civil airport;

b/ In an inland area;

c/ On an airplane on international flights of an airline established and operating in accordance with Vietnamese law.   

d/ In a duty-free goods warehouse or an isolation area or a restricted area, or in a customs operation area outside the border gate prescribed in Article 8 of the Government’s Decree No. 01/2015/ND-CP of January 2, 2015, detailing the scope of customs operation areas; and responsibility for coordination in prevention and control of smuggling and illegal cross-border transportation of goods.

2. Having a computer software satisfying the following criteria:

a/ Being capable of managing input, output and inventory by goods item, goods buyer and custom declaration form;

b/ Being capable of backing up and exporting data to serve reporting, statistical and archival activities, and being connected directly with the managing customs office’s computer network.

3. Being fitted with cameras satisfying the following criteria:

a/ Observing all positions in the duty-free goods warehouses and shops around the clock;

b/ Storing camera footages for at least 12 months;

c/ Being directly connected with the managing customs office.

The General Director of Customs shall promulgate standards on data exchange between customs offices and duty-free goods traders regarding input and output management software and closed-circuit television (CCTV) systems.

Article 5. A dossier for request for grant of a certificate of eligibility for duty-free goods trading

1. A original request for a certificate of eligibility for duty-free goods trading, made according to From No. 01 provided in the Appendix to this Decree.

2. A copy of the enterprise registration certificate or investment registration certificate.

3. A copy of the design plan of the duty-free shop and warehouse locations .

4. An original document describing the software for management of duty-free goods trading.

5. An original document on the enterprise’s internal processes for management of goods input, output, storage and inventory at the duty-free goods warehouse, delivery and receipt of goods from the duty-free goods warehouse to the duty-free shop or an airplane; sales management of the duty-free shop or airplane, and the remission and receipt of duty-free goods sales.

6. A copy of the document proving the right to use the duty-free shop and warehouse locations.

7. A copy of the certificate of satisfaction of fire prevention and fighting conditions, granted by a public security agency (except those located in areas recognized as having satisfied fire prevention and fighting conditions).

8. An original operation regulation.

Article 6. Order of grant of a certificate of eligibility for duty-free goods trading

1. An enterprise shall submit a dossier of application for a certificate of eligibility for duty-free goods trading by post, directly or via the customs office’s electronic data processing system to the General Department of Customs.

2. Within 10 working days after receiving a complete dossier of the enterprise (according to the postmark for a dossier sent by post, the time a dossier-receiving officer receives the dossier, or the time recorded in the electronic data processing system of the customs office), the General Department of Customs shall complete the examination of the dossier and physical inspection of the duty-free shop and warehouse. Upon completing the inspection, the customs office and enterprise shall sign a record of inspection.

3. Within 5 working days after completing the examination of the dossier and physical inspection of a duty-free shop and warehouse, the General Director of Customs shall grant a certificate of eligibility for duty-free goods trading, or issue a written reply to the enterprise if the prescribed conditions are not satisfied.

4. In case the dossier is incomplete or invalid, within 5 working days after receiving the dossier from the enterprise, the General Department of Customs shall notify such in writing to the enterprise, requesting it to complete the dossier. Past 30 working days after sending a notice, the General Department of Customs may annul the dossier if receiving no reply from the enterprise.

Article 7. Suspension of duty-free goods trading

1. Cases of suspension of duty-free goods trading:

a/ The trading enterprise so wishes;

b/ Cases subject to the revocation of certificate of eligibility for duty-free goods trading specified in Clause 1, Article 8 of this Decree.

2. Order and procedures for suspension of duty-free goods trading

a/ The Customs Department shall issue a notice of suspension of duty-free goods trading;

b/ After issuing the notice of suspension of duty-free goods trading, the Customs Department shall inspect and certify the quantity of inventory at the duty-free shop and warehouse;

c/ To liquidate customs declarations of temporarily imported goods in any of the cases subject to the revocation of certificate of eligibility for duty-free goods trading prescribed in Clause 1, Article 8 of this Decree within 30 working days after issuing the notice of suspension of duty-free goods trading.

3. During the period of suspension of duty-free goods trading, the customs office shall supervise the quantity of inventory at the duty-free shop and warehouse. The duty-free goods trader shall keep intact the actual state of goods in the duty-free shop and warehouse.

4. During the period of suspension of duty-free goods trading, if the enterprise wishes to resume its business operation, it shall send to the Customs Department a notice made according to Form No. 02 provided in the Appendix to this Decree.

5. The period of suspension of duty-free goods trading must not exceed 6 months after the notice of suspension is issued.

Article 8. Revocation of certificates of eligibility for duty-free goods trading

1. Cases of revocation of a certificate of eligibility for duty-free goods trading:

a/ The enterprise so wishes;

b/ The enterprise fails to put its duty-free shop into operation within 6 months after it is granted a certificate of eligibility for duty-free goods trading;

c/ The duty-free shop or warehouse no longer satisfies the conditions prescribed in Article 4 of this Decree;

d/ The enterprise has thrice committed customs-related administrative violations in duty-free goods trading activities in the last 12 months and has been imposed for each violation a fine exceeding the maximum fine a Customs Branch head is competent to impose;

dd/ The operation suspension period prescribed in Clause 5, Article 7 of this Decree has expired.

2. Order of revocation of a certificate of eligibility for duty-free goods trading:

a/ The General Department of Customs shall assign in writing the Customs Department to inspect the quantity of input and inventory for carrying out the liquidation;

b/ The Customs Department shall report in writing the liquidation results to the General Department of Customs within 30 working days after receiving the document assigning the inspection from the General Department of Customs;

c/ Within 5 working days after receiving the report of the Customs Department, the General Director of Customs shall issue a decision on revocation of the certificate of eligibility for duty-free goods trading.

Article 9. Expansion, narrowing, relocation and ownership transfer of duty-free shops

1. A dossier for expansion, narrowing or relocation a duty-free shop must comprise:

a/ An original application for expansion, narrowing or relocation, made according to Form No. 01 provided in the Appendix to this Decree;

b/ A copy of the design plan of the to-be-expanded, -narrowed or -relocated area;

c/ A copy of the document proving the right to use the location upon expansion, narrowing or relocation.

2. A dossier for transfer of the ownership of a duty-free shop must comprise:

In addition to the dossier prescribed in Article 5 of this Decree, an enterprise transferred the ownership of a duty-free shop shall submit the following:

a/ An original application for ownership transfer, made according to Form No. 01 provided in the Appendix to this Decree;

b/ A copy of the contract relating to the ownership transfer.

3. The order for expansion, narrowing, relocation or ownership transfer of duty-free shops is the same as that for grant of certificates of eligibility for duty-free goods trading prescribed in Article 6 of this Decree.

Section 2

BONDED WAREHOUSES

Article 10. Conditions for recognition of a bonded warehouse

1. A to-be-recognized bonded warehouse must be located in an area specified in Clause 1, Article 62 of the Customs Law; or an area approved by competent state agencies under the master plan on development of the national logistics center system; an area eligible for investment incentives; or an area serving the export of mass-produced agricultural, forest and aquatic products.

2. A bonded warehouse must be separated from surrounding areas by fences and subject to regular inspection and supervision by a customs office, except a warehouse located within a border-gate or port area with fences separating it from surrounding areas.

3. A bonded warehouse must provide sufficient working conditions for a customs office such as a working place, a place for goods inspection, a place for installation of customs inspection equipment, and a storehouse for storing exhibits involved in violations as specified by the Ministry of Finance.

4. A bonded warehouse must have a minimum area of 5,000 m² (including warehouses, storing yards and supporting facilities), of which the area of warehouses must be at least 1,000 m². A bonded warehouse that stores one type or several types of goods with special preservation requirements must have an area of at least 1,000 m² or a space of at least 1,000 m³. Particularly, a bonded warehouse located within a port area must be at least 1,000 m² large. A specialized bonded storing yard must be at least 10,000 m² large and is not required to have a warehouse.

5. A bonded warehouse must have a software satisfying the following criteria:

a/ Being capable of managing input, output and inventory by goods item, goods buyer and custom declaration form;

b/ Being capable of backing up and exporting data to serve the reporting, making of statistics and archive and being directly connected with the managing customs office’s computer network.

6. A bonded warehouse must be fitted with cameras satisfying the following criteria:

a/ Observing all positions in the warehouse around the clock;

b/ Storing camera footages for at least 12 months;

c/ Being directly connected with the managing customs office.

The General Director of Customs shall promulgate standards on data exchange between customs offices and bonded warehouse traders regarding input and output management software and CCTV systems.

Article 11. Dossier for recognition of a bonded warehouse

1. An original request for recognition, made according to Form No. 01 provided in the Appendix to this Decree.

2. A copy of the enterprise registration certificate or investment registration certificate.

3. A copy of the design plans of storehouses and storing yards, clearly indicating their boundaries, locations of storehouses, internal roads for goods transportation, security guards, office of the bonded warehouse, and working place of the customs office.

4. An original document describing the bonded warehouse management software.

5. A copy of the document proving the right to use the bonded warehouse.

6. A copy of the certificate of satisfaction of fire prevention and fighting conditions, granted by al public security agency.

7. An original operation regulation.

Article 12. Order of recognition of a bonded warehouse

1. An enterprise shall submit a dossier of request for recognition of a bonded warehouse by post, directly or via the customs office’s electronic information processing system to the General Department of Customs.

2. Within 10 working days after receiving a complete dossier from the enterprise, the General Department of Customs shall complete the examination of the dossier and physical inspection of storehouses and storing yards. Upon completing the inspection, the customs office and the enterprise shall sign a record of inspection.

3. Within 5 working days after completing the examination of the dossier and physical inspection of storehouses and storing yards, the General Director of Customs shall issue a decision recognizing the bonded warehouse, or issue a written reply to the enterprise if the prescribed conditions are not satisfied.

4. In case the dossier is incomplete or invalid, within 5 working days after receiving the dossier from the enterprise, the General Department of Customs shall notify such in writing to the enterprise, requesting it to supplement the dossier. Past 30 working days after sending the notice, the General Department of Customs may annul the dossier if receiving no reply from the enterprise.

Article 13. Expansion, narrowing, relocation and ownership transfer of a bonded warehouse

1. An enterprise that wishes to expand, narrow, relocate or transfer the ownership of a bonded warehouse and meets the conditions prescribed in Article 10 of this Decree shall make and send to the General Department of Customs a dossier comprising:

a/ An original application for expansion, narrowing, relocation or transfer of the ownership of the bonded warehouse;

b/ A copy of the design plan of to-be-expanded, -narrowed, -relocated or transferred area of the bonded warehouse;

c/ A copy of the paper proving the right to use the location after the bonded warehouse is expanded, narrowed or relocated;

d/ A copy of the contract relating to the ownership transfer.

2. The order of expansion, narrowing, relocation or ownership transfer of a bonded warehouse is the same as that for recognition of a bonded warehouse prescribed in Article 12 of this Decree.

Article 14. Suspension of operation of a bonded warehouse

1. The operation of a bonded warehouse shall be suspended when the enterprise so requests in writing. The operation suspension period must not exceed 6 months.

2. The notice of suspension of operation of the bonded warehouse shall be issued by the Customs Department.

3. Order of suspension of operation:

Within 5 working days after receiving the request for suspension of operation of the bonded warehouse from the enterprise, a Department of Customs shall inspect and certify the quantity of inventory and issue a notice on suspension of operation of the bonded warehouse.

4. During the operation suspension period prescribed in Clause 1 of this Article, the customs office shall not carry out customs procedures for goods consigned to the warehouse; supervise and handle the amount of inventory at the warehouse in accordance with law.

5. At least 5 working days before the operation suspension expires, the enterprise shall make a report on resumption or termination of operation of the bonded warehouse.

6. During the operation suspension period, if the enterprise wishes to resume the operation of the bonded warehouse, it shall send to the Custom Department a notice, made according to Form No. 02 provided in the Appendix to this Decree.

Article 15. Termination of operation of a bonded warehouse

1. Cases of termination of operation of a bonded warehouse:

a/ The enterprise no longer satisfies the conditions prescribed in Article 10 of this Decree or terminates the operation of the previous owner of the bonded warehouse in case of ownership transfer of the bonded warehouse;

b/ The enterprise sends a request for termination of operation of the bonded warehouse to the General Department of Customs;

c/ The enterprise fails to put the bonded warehouse into operation within 6 months after the decision on recognition of the bonded warehouse is issued;

d/ Past the operation suspension period prescribed in Clause 1, Article 14 of this Decree, the enterprise fails to issue a notice on resumption of operation;

dd/ The enterprise has thrice committed customs-related administrative violations in operation of bonded warehouses in the last 12 months and has been imposed for each violation a fine exceeding the maximum fine level a Customs Branch head is competent to impose.

2. Order of termination of operation of a bonded warehouse:

a/ The Customs Department shall inspect and liquidate the whole amount of inventory at the bonded warehouse; report and propose the General Department of Customs to consider the termination of operation of the bonded warehouse.

b/ Within 5 working days after receiving the Customs Department’s report, the General Director of Customs shall consider issuing a decision to terminate the operation of a bonded warehouse.

Section 3

TAX-SUSPENSION WAREHOUSES

Article 16. Conditions for recognition of a tax-suspension warehouse

1. The warehouse of an enterprise recognized as a priority enterprise may be recognized as a tax-suspension warehouse if the following conditions are satisfied:

a/ The enterprise applies a bookkeeping system and information technology to monitor and manage input, output and inventory according to the standards set by state management agencies;

b/ The tax-suspension warehouse is located within the enterprise’s production area, separated from the area for storing materials and supplies ineligible for tax suspension, and fitted with cameras meeting customs offices’ data exchange standards for supervision of goods brought into and out of the warehouse.

2. To have its warehouse recognized as a tax-suspension warehouse, in addition to the conditions prescribed in Clause 1 of this Article, an export production enterprise with an export turnover of at least USD 40 million must also meet the following conditions:

a/ Having conducted export activities for at least 2 consecutive years without violating the customs and tax laws;

b/ Complying with the accounting and statistics laws;

c/ Making via-bank payment in accordance with law.

Article 17. A dossier of request for recognition of a tax-suspension warehouse

1. An original request for recognition of a tax-suspension warehouse, made according to Form 01 provided in the Appendix to this Decree.

2. A copy of the design plan of the warehouse area.

Article 18. Order of recognition of a tax-suspension warehouse

1. An enterprise shall submit a dossier of request for recognition of a tax-suspension warehouse directly, by post or via the customs office’s electronic information processing system to the General Department of Customs.

2. Within 10 working days after receiving the complete dossier from the enterprise, the General Department of Customs shall complete the examination of the dossier and physical inspection of the warehouse. Upon completing the inspection, the customs office and the enterprise shall sign a record of inspection.

3. Within 5 working days after completing the examination of the dossier and physical inspection of the warehouse, the General Director of Customs shall issue a decision recognizing the tax-suspension warehouse, or issue a written reply to the enterprise if the prescribed conditions are not satisfied.

4. In case the dossier is incomplete or invalid, within 5 working days after receiving the dossier from the enterprise, the General Department of Customs shall notify such in writing to the enterprise, requesting it to supplement the dossier. Past 30 days after sending the notice, the General Department of Customs may annul the dossier if receiving no reply from the enterprise.

Section 4

CONTAINER FREIGHT STATIONS

Article 19. Conditions for recognition of a CFS

1. A CFS must be located within the area prescribed in Clause 1, Article 62 of the Customs Law.

2. A CFS must have a minimum area of 1,000m², excluding storing yards and supporting facilities, and has fences separating it from surrounding areas.

3. A CFS must provide sufficient working conditions for a customs office such as a working place, a place for goods inspection, a place for installation of customs inspection equipment, and a storehouse for storing exhibits involved in violations as specified by the Ministry of Finance.

4. A CFS must have a software meeting the following criteria:

a/ Being capable of managing input, output and inventory by commodity item, goods buyer and custom declaration form;

b/ Being capable of backing up and exporting data to serve the reporting, making of statistics and archive and directly connected to the managing customs office’s computer network.

5. A CFS must be equipped with cameras satisfying the following criteria:

a/ Observing all positions in the CFS around the clock;

b/ Storing camera footages for at least 12 months;

c/ Being directly connected to the management customs office’s computer network.

The General Director of Customs shall promulgate standards on data exchange between customs offices and CFS traders regarding input and output management software and CCTV systems.

6. For a CFS located in a seaport or an inland container depot, the enterprise is not required to carry out procedures for recognition prescribed in this Decree. Before putting the CFS into operation, the enterprise shall inform such to the Customs Branch managing the seaport or inland container depot.

Article 20. A dossier of request for recognition of a CFS

1. An original request for recognition, made according to Form No. 01 provided in the Appendix to this Decree.

2. A copy of the business registration certificate or investment registration certificate.

3. A copy of the design plan of the CFS, clearly indicating its boundaries, locations of goods storehouses, internal roads for goods transportation, security guards, office of the CFS, and working place of the customs office.

4. An original documents describing the CFS management software.

5. A copy of the paper proving the right to use the CFS.

6. A copy of the certificate of satisfaction of fire prevention and fighting condition, granted by a public security agency.

7. An original operation regulation.

Article 21. Order of recognition, expansion, narrowing, relocation, ownership transfer, operation suspension or termination of a CFS

The order of recognition, expansion, narrowing, relocation, ownership transfer, operation suspension or termination of a CFS is the same as that for a bonded warehouse prescribed in Section 2, Chapter II of this Decree.

Section 5

PETROL AND OIL DEPOTS

Article 22. Certification of petrol and oil depots’ eligibility for customs inspection and supervision

1. An enterprise requesting certification of a petrol and oil depot’s eligibility for customs inspection and supervision must be a principal trader prescribed in the Government’s Decree No. 83/2014/ND-CP of September 3, 2014, on petrol and oil trading.

2. Petrol and oil depots must be owned, co-owned or leased by petrol and oil traders in accordance with the law on petrol and oil trading.

3. A petrol and oil depot must have a software meeting the following criteria:

a/ Managing and supervising the volume of input, output and inventory;

b/ Being capable of providing input and output data directly to the managing customs office.

4. A petrol and oil depot must be fitted with cameras meeting the following criteria:

a/ Observing all positions in the depot around the clock;

b/ Storing camera footages for at least 12 months;

c/ Being directly connected with the managing customs office.

The General Director of Customs shall promulgate standards on data exchange of between customs offices and petrol and oil traders regarding input and output management software and CCTV systems.

Article 23. A dossier of request for certification of eligibility for customs inspection and supervision

1. An original request for certification of eligibility for customs inspection and supervision, made according to Form No. 01 provided in the Appendix to this Decree.

2. A copy of the design plan of the depot, clearly indicating its boundaries and locations of storehouses, cisterns and tanks.

3. An original document describing the petrol and oil depot management software.

4. A copy of the paper proving the right to use the petrol and oil depot.

5. A copy of the certificate of satisfaction of fire prevention and fighting conditions, granted by a public security agency.

6. An original of the operation regulation.

Article 24. Order of certification of a petrol and oil depot’s eligibility for customs inspection and supervision

1. An enterprise shall submit a dossier of request for certification of eligibility for customs inspection and supervision to the General Department of Customs.

2. Within 10 working days after receiving a complete dossier from the enterprise, the General Department of Customs shall complete the examination of the dossier and physical inspection of the petrol and oil depot. Upon completing the inspection, the customs office and the enterprise shall sign a record of inspection.

3. Within 5 working days after completing the examination of the dossier and physical inspection of the petrol and oil depot, the General Director of Customs shall issue a written certification of eligibility for customs inspection and supervision, or issue a written reply to the enterprise if the prescribed conditions are not satisfied.

4. In case the dossier is incomplete or invalid, within 5 working days after receiving the dossier from the enterprise, the General Department of Customs shall notify such in writing to the enterprise, requesting it to supplement the dossier. Past 30 days after sending the notice, the General Department of Customs shall annul the dossier if receiving no reply from the enterprise.

5. In case the petrol and oil depot is expanded, narrowed or relocated or has its  ownership transferred, the procedures for certification of eligibility for customs inspection and supervision shall comply with Articles 22 and 23 and Clause 1, 2, 3 and 4, Article 24 of this Decree.

Section 6

OFF-AIRPORT FREIGHT TERMINALS

Article 25. Conditions for recognition of an off-airport freight terminal

1. A to-be-recognized off-airport freight terminal must be located in one of the following areas:

a/ Surrounding areas of an international civil airport;

b/ An industrial park, a hi-tech zone or an export-processing zone;

c/ An area approved by a competent agency in the master plan on development of the logistics center system nationwide.

An off-airport freight terminal must be at most 50 kilometers away from an international civil airport.

2. An off-airport freight terminal must have a minimum area of at least 2,000m² (including storehouses, storing yards and supporting facilities). Storehouses and storing yards must be separated from surrounding areas by solid fences with separate areas for storing imports and exports.

3. The enterprise being the owner of an off-airport freight terminal must be also the owner, co-owner or lessee of storehouses and storing yards of imports and exports in the concerned international airport.

4. An off-airport freight terminal must provide sufficient working conditions for a customs office such as a working place, a place for goods inspection, a place for installation of customs inspection equipment (screeners, electronic scales, etc.) and a storehouse for storing exhibits involved in violations as specified by the Ministry of Finance.

5. An off-airport freight terminal must have a software meeting the following criteria:

a/ Managing input, output and inventory;

b/ Being capable of backing up and exporting data to serve reporting, statistical and archival activities and directly connected to the managing customs office’s computer network.

6. An off-airport freight terminal must be fitted with cameras meeting the following criteria:

a/ Observing all positions in the terminal around the clock;

b/ Storing camera footages for at least 12 months;

c/ Being are directly connected to the management customs office’s computer network.

The General Director of Customs shall promulgate standards on data exchange  between customs offices and off-airport freight terminal owners regarding input and output management software and CCTV systems.

Article 26. A dossier of request for recognition of an off-airport freight terminal

1. An original request for recognition, made according to Form No. 01 provided in the Appendix to this Decree.

2. A copy of the business registration certificate or investment certificate.

3. A copy of the design plan of the terminal, clearly indicating its boundaries, locations of goods storehouse, internal roads for goods transportation, security guards, office of the off-airport freight terminal, and working place of the customs office.

4. An original document describing the off-airport freight terminal management software.

5. A copy of the paper proving the right to use the off-airport freight terminal.

6. A copy of the certificate of satisfaction of fire prevention and fighting conditions granted by a public security agency.

7. An original operation regulation.

8. A contract on lease of space for storing imports and exports in the international airport (in case the off-airport freight terminal owner leases storehouses or storing yards).

Article 27. Order of recognition of an off-airport freight terminal

1. An enterprise shall submit a dossier of request for recognition of an off-airport freight terminal directly, by post or via the e-information processing system of the customs office to the General Department of Customs.

2. Within 10 working days after receiving a complete dossier from the enterprise, the General Department of Customs shall coordinate with the Ministry of Transport and the provincial-level People’s Committee in completing the examination of the dossier and physical inspection of the terminal. Upon completing the inspection, the customs office and the enterprise shall sign a record of inspection.

3. Within 15 working days after completing the examination of the dossier and the physical inspection of the terminal, based on the opinions of the Ministry of Transport and the provincial-level People’s Committee, the General Director of Customs shall issue a decision to recognize an off-airport freight terminal or issue a written reply to the enterprise if the latter fails to meet the prescribed conditions.

Article 28. Expansion, narrowing, relocation and ownership transfer of an off-airport freight terminal

The order of expansion, narrowing, relocation or ownership transfer of an off-airport freight terminal is the same as that for a bonded warehouse prescribed in Section 2, Chapter II of this Decree.

Article 29. Suspension of operation of an off-airport freight terminal

1. The operation of an off-airport freight terminal shall be suspended when the enterprise concerned makes a written request for operation suspension. The operation suspension period must not exceed 6 months.

2. The Customs Department shall issue a written notice on suspension of the operation of an off-airport freight terminal.

3. Order of operation suspension:

Within 5 working days after receiving a request for suspension of the operation of an off-airport freight terminal from the enterprise, the Customs Department shall inspect and certify the amount of inventory at the terminal and issue a notice on suspension of the operation of the off-airport freight terminal.

4. During the operation suspension period, the customs office shall not carry out customs procedures for goods brought into the terminal; and supervise and handle the amount of inventory in accordance with law.

5. At least 5 working days before the operation suspension period expires, the enterprise shall make a report on resumption or termination of the operation of the off-airport freight terminal.

6. During the operation suspension period prescribed in Clause 1 of this Article, if wishing to resume the operation of the terminal, the enterprise shall send a written notice, made according to Form No. 02 provided in the Appendix to this Decree, to the Customs Department.

Article 30. Termination of operation of an off-airport freight terminal

1. Cases of termination of operation of an off-airport freight terminal:

a/ The enterprise no longer satisfies the conditions prescribed in Article 25 of this Decree, or terminates the operation of the previous owner of the terminal in case of transfer of the ownership of the off-airport freight terminal;

b/ The enterprise submits a written request for termination of the operation of the off-airport freight terminal to the General Department of Customs;

c/ The enterprise fails to put the off-airport freight terminal into operation within  6 months after the decision on the establishment of the terminal is issued;

d/ The enterprise fails to issue a written notice on resumption of operation though the operation suspension period has expired;

dd/ The enterprise has thrice committed customs-related administrative violations relating to the operation of the off-airport freight terminal in the last 12 months, and has been imposed for each violation a fine exceeding the maximum fine a Customs Branch head is competent to impose.

2. Order of termination of operation of an off-airport freight terminal:

a/ The Customs Department shall inspect and liquidate the whole amount of inventory at the off-airport freight terminal; report and propose the termination of the operation of the terminal to the General Department of Customs for consideration and decision;

b/ Within 15 working days after receiving the Customs Department’s report, the General Director of Customs shall consider the report and issue a decision to terminate the operation of the off-airport freight terminal.

Chapter III

PLACES FOR CUSTOMS CLEARANCE, GOODS GATHERING OR CUSTOMS INSPECTION AND SUPERVISION

Section 1

CUSTOMS CLEARANCE PLACES AT INLAND CONTAINER DEPOTS

Article 31. Conditions for recognition of a customs clearance place at an inland container depot

1. Having an area of at least 50,000 m².

2. Having a software meeting the following requirements:

a/ Being capable of managing input, output and inventory by goods item, goods buyer and customs declaration form;

b/ Being capable of backing up and exporting data to serve reporting, statistical and archival activities, and being directly connected to the managing customs office’s computer network.

3.  Being fitted with cameras meeting the following criteria:

a/ Observing all positions in the place around the clock;

b/ Storing camera footages for at least 12 months;

c/ Being directly connected to the managing customs office’s computer network.

The General Director of Customs shall issue standards on data exchange between custom offices and enterprises commercially operating customs clearance places at inland container depots regarding input and output management software and CCTV.

Article 32. Dossier for recognition of a customs clearance place at an inland container depot

1. An original request for recognition of the customs clearance place, made according to Form No. 1 provided in the Appendix to this Decree.

2. A copy of the enterprise registration certificate or investment certificate.

3. A copy of the design plan of the customs clearance place, showing the boundaries, locations of goods storehouses, place for gathering imports, place for gathering exports, place for gathering container trucks, place for physical inspection, security guard, warehouse office, and working place of the customs office.

4. An original document describing the software program for management of the place.

5. A copy of the paper proving the right to use the place.

6. A copy of the certificate of satisfaction of fire prevention and fighting conditions, granted by a public security agency.

7. An original operation regulation.

Article 33.  Order of recognition of a customs clearance place at an inland container depot

1. An enterprise shall submit a dossier of request for recognition directly, by post or via the customs office’s e-information processing system to the General Department of Customs.

2. Within 10 working days after receiving a complete dossier from the enterprise, the General Department of Customs shall complete the examination of the dossier and the physical inspection of the customs clearance place. Upon completing the inspection, the customs office and the enterprise shall sign a record of inspection.

3. Within 5 working days after completing the examination of the dossier and the physical inspection of the customs clearance place, the General Department of Customs shall propose the Ministry of Finance to issue a decision recognizing a customs clearance place at an inland container depot, or issue a written reply to the enterprise if the latter fails to meet the prescribed conditions.

4. In case the enterprise’s dossier is incomplete or invalid, within 5 working days after receiving it, the General Department of Customs shall issue a written notice and request the enterprise to supplement the dossier. Past 30 working days after sending the notice, the General Department of Customs may annul the dossier if receiving no reply from the enterprise.

Article 34. Expansion, narrowing, relocation, ownership transfer or operation suspension of a customs clearance place at an inland container depot

1. An enterprise that wishes to expand, narrow, relocate, transfer the ownership of, or suspend the operation of a customs clearance place at an inland container depot shall send a dossier to the General Department of Customs. The dossier must comprise:

a/ An original request for expansion, narrowing, relocation, ownership transfer or operation suspension of the place;

b/ A copy of the design plan of storehouses and storing yards in the area where the place will be expanded, narrowed, relocated or have its ownership transferred;

c/ A copy of the paper proving the right to use the place upon expansion, narrowing, relocation or ownership transfer;

d/ A copy of the contract relating to the ownership transfer.

2. The order and procedures for expansion, narrowing, relocation, ownership transfer or operation suspension of a customs clearance place at an inland container depot are the same as those for a bonded warehouse prescribed in Section 2, Chapter II of this Decree. Particularly, the expansion, narrowing or operation suspension of a customs clearance place at an inland container depot shall be decided by the General Director of Customs.

3. In case of relocation or ownership transfer of a customs clearance place at an inland container depot, based on the written request of the enterprise, the General Department of Customs shall report to the Ministry of Finance for the latter to consider and issue a decision to terminate the operation of the place under the previously granted decision, and concurrently issue a new decision to recognize, and transfer the ownership of, the place if the owner of the new place meets the conditions prescribed in Article 31 of this Decree.

Article 35. Termination of operation of a customs clearance place at an inland container depot

1. A customs clearance place at an inland container depot shall terminate its operation if falling in one of the following cases:

a/ The place no longer satisfies the conditions prescribed in Article 31 of this Decree;

b/ The enterprise makes a written request for termination of the operation;

c/ The enterprise fails to put the place into operation within 6 months after the  decision on recognition of the place is issued;

d/ The enterprise fails to issue a written notice on resumption of operation though  the operation suspension period has expired;

dd/ The enterprise has thrice committed customs-related administrative violations relating to the operation of the place in the last 12 months, and has been imposed for each violation a fine exceeding the maximum fine a Customs Branch head is competent to impose.

2. The General Department of Customs shall conduct inspection and propose the Ministry of Finance to decide on termination of the operation of a customs clearance place at an inland container depot in one of the cases prescribed in Clause 1 of this Article.

Section 2

PLACES FOR GATHERING, INSPECTION AND SUPERVISION OF IMPORTS AND EXPORTS; PLACES OF GOODS SENT VIA EXPRESS MAIL SERVICES AND GOODS SENT BY POST

Article 36. Conditions for recognition of a place for gathering, inspection and supervision of imports and exports or a place for goods sent via express mail services and goods sent by post

1. Location

a/ A place for gathering, inspection and supervision of imports and exports must be located at a border gate or in an industrial park or a border-gate economic zone;

b/ A place for gathering, inspection and supervision of goods sent via express mail services must be included in the master plan on an international airport as prescribed by law;

c/ A place for gathering, inspection and supervision of imports and exports in a border area must be located in a border-gate economic zone or land border-gate zone. If a place is located outside a border-gate economic zone, it must be no more than 10 km far from the border-gate area.

 2. Area

a/ A place for gathering, inspection and supervision of imports and exports must have an area of at least 10,000 m²;

b/ A place for gathering, inspection and supervision of goods sent via express mail services must have an area of at least 5,000 m²; a place for gathering, inspection and supervision of goods sent by post must have an area of at least 1,000 m²;

c/ A place for gathering, inspection and supervision of imports and exports in a border area must have an area of at least 5,000 m².

3. Physical foundations and equipment

a/ A place shall be separated from the surrounding areas by fences to serve regular inspection and supervision by a customs office, except places located within border-gate areas or ports having fences isolating them from the surrounding areas;

b/ A place must provide sufficient working conditions for a customs office, such as a working office, a place for goods inspection, a place for installation of equipment for customs inspection, and a storehouse for violation exhibits as specified by Ministry of Finance;

c/ The place must have a computer software meeting the following criteria:

- Being capable of managing input, output and inventory.

- Being capable of backing up and exporting data to serve reporting, statistical and archival activities, and being directly connected to the managing customs office’s computer network.

d/ The place must be fitted with cameras meeting the following criteria:

- Observing all positions in the place around the clock;

- Storing camera image data for at least 12 months;

- Being directly connected to the managing customs office’s computer network.

The General Director of Customs shall issue standards on data exchange between the customs office and the enterprise commercially operating the place regarding the input and output management software and CCTV systems.

Article 37. Dossier for recognition of a place for gathering, inspection and supervision of imports and exports or a place for goods sent via express mail services and goods sent by post

1. An original of the written request for recognition, made according to Form No. 1 provided in the Appendix to this Decree.

2. A copy of the enterprise registration certificate or investment certificate.

3. A copy of the design plan of the place for gathering, inspection and supervision of imports and exports or the place for goods sent via express mail services and goods sent by post, showing the boundaries, locations of goods warehouses, place for gathering imports, place for gathering exports, place for gathering vehicles, place for physical inspection, security guard, warehouse office, and working place of the customs office.

4. An original document describing input and output management software.

5. A copy of the paper proving the right to use the place.

6. A copy of the certificate of satisfaction of fire prevention and fighting conditions, issued by a public security agency.

7. An original operation regulation.

8. A copy of the international airport master plan approved by a competent agency, in case of recognition of a place for gathering, inspection and supervision of goods sent via express mail services.

9. A copy of the postal license or the notice on postal operation, issued by a competent agency under the law on post, in case of recognition of a place for gathering, inspection and supervision of goods sent by post.

Article 38.  Order of recognition, expansion, narrowing, relocation, ownership transfer, suspension, or operation termination of a place for gathering, inspection and supervision of imports and exports or a place for goods sent via express mail services and goods sent by post.

The order of recognition, expansion, narrowing, relocation, ownership transfer, suspension, or operation termination of a place for gathering, inspection and supervision of imports and exports or a place for goods sent via express mail services and goods sent by post is the same as that for a bonded warehouse prescribed in Section 2, Chapter II of this Decree.

Chapter IV

IMPLEMENTATION PROVISIONS

Article 39. Effect

1. This Decree takes effect on July 1, 2016.

2. To annul Articles 82, 89 and 92 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.

3. The expansion, narrowing, relocation, ownership transfer, suspension or operation termination of duty-free shops, warehouses and storing yards, customs clearance places, places for gathering, inspection and supervision of goods, or places for goods sent via express mail services and goods sent by post already recognized and operating before the effective date of this Decree must comply with this Decree.

4. For the places established and operating before the effective date of this Decree but failing to meet the conditions for recognition or certification prescribed in this Decree, individuals or organizations may continue to operate them until July 1, 2017. Past this time limit, Customs Departments shall review and report to a competent authority for the latter to issue a decision on suspension or operation termination of these places in accordance with law.

Article 40. Implementation responsibility

1. The Ministry of Finance shall guide the implementation of articles and clauses assigned in this Decree.

2. Ministers, heads of ministerial-level agencies, heads of government-attached agencies, and chairpersons of provincial-level People’s Committees shall implement this Decree.-

On behalf of the Government
Prime Minister
NGUYEN XUAN PHUC