Joint Circular No. 03/2007/TTLT-BCT-BTC-BNG dated October 15, 2007 of the Ministry of Industry and Trade, the Ministry of Finance and the Ministry of Foreign Affairs guiding the duty-free temporary import, import or purchase in Vietnam, export, re-export, transfer and destruction, of essential items for work and daily-life needs of vietnam-based diplomatic missions, consular offices and international organizations’ representative offices entitled to privileges and immunities

JOINT CIRCULAR

GUIDING THE DUTY-FREE TEMPORARY IMPORT, IMPORT OR PURCHASE IN VIETNAM, EXPORT, RE-EXPORT, TRANSFER AN DESTRUCTION, OF ESSENTIAL ITEMS FOR WORK AND DAILY-LIFE NEEDS OF VIETNAM-BASED DIPLOMATIC MISSIONS, CONSULAR OFFICES AND INTERNATIONAL ORGANIZATIONS REPRESENTATIVE OFFICES ENTITLED TO PRIVILEGES AND IMMUNITIES

Pursuant to the Governments Decree No. 73/CP of July 30, 1994, detailing the implementation of the Ordinance on Privileges and Immunities for Vietnam-based diplomatic missions, consular offices and international organizations representative offices;

Pursuant to the Governments Decree No. 12/2006/ND-CP of January 23, 2006, detailing the Commercial Law with regard to international goods trading and goods trading agency, processing and transit with foreign parties.

The Ministry of Industry and Trade, the Ministry of Finance and the Ministry of Foreign Affairs jointly guide the duty-free temporary import, import or purchase in Vietnam, export, re-export, transfer and destruction of essential items for work and daily-life needs of Vietnam-based diplomatic missions, consular office and international organizations representative offices entitled to privileges and immunities as follows:

I. SUBJECTS OF APPLICATION

1. Vietnam-based diplomatic missions, consular offices and international organizations representative offices entitled to privileges and immunities under treaties to which Vietnam has signed or acceded as provided for in Articles 8, 9 and 10 of Decree No. 73/CP of July 30, 1994.

2. Diplomats, consuls, and officials of international organizations representative offices in Vietnam who are entitled to similar privileges and immunities under treaties to which Vietnam has signed or acceded.

3. Administrative and technical employees of diplomatic missions and consular offices and employees of international organizations representative offices in Vietnam who are entitled to similar privileges and immunities under treaties to which Vietnam has signed or acceded.

II. PROVISIONS ON LISTS AND QUANTITIES OF ITEMS PERMITTED FOR DUTY-FREE TEMPORARY IMPORT, IMPORT OR PURCHASE IN VIETNAM

1. The entities defined in Section I of this Circular may temporarily import, import or purchase in Vietnam items on the lists and in the quantities specified in Appendices 1, 2 and 3 to this Circular. They are entitled to exemption from taxes, charges and fees, except for warehousing charges, freights and charges for similar services according to current regulations of the Vietnamese State, specifically:

a/ Appendix 1: List and quantity of essential items for work and daily-life needs of the entities defined in Clause I. Section 1 of this Circular.

b/ Appendix 2: List and quantity of essential items for work and daily-life needs of the entities defined in Clause 2, Section I of this Circular.

c/ Appendix 3: List and quantity of essential items for work and daily-life needs of the entities defined in Clause 3. Section I of this Circular. These entities may only temporarily import, import or purchase free of duty in Vietnam items in the quantities specified in Appendix 3 to this Circular within 6 months after they are granted identity cards by the .Ministry of Foreign Affairs when coming to take on tasks at Vietnam-based representative offices.

2. Apart from the items listed in Appendix 1 to this Circular, the entities defined in Clause 1, Section I of this Circular may import or purchase in Vietnam other essential items or goods at minimum levels for their work and daily-life needs and enjoy exemption from taxes, charges and fees, except for warehousing charges, freights and charges for similar services according to current regulations of the Vietnamese State.

For items outside the above list which are unconditional imports, the Ministry of Foreign Affairs shall consider and settle the case.

For items outside the above list which are conditional imports, the Ministry of Foreign Affairs shall receive the case and forward it together with its proposal to the Ministry of Industry and Trade for consideration and settlement.

Items and goods purchased free of duty in Vietnam must not be on the list of goods banned from trading. Items and goods imported into Vietnam must not be on the list of goods banned from import.

3. When having reasonable needs, the entities defined in Clause 1, Section I of this Circular may temporarily import, import or purchase in Vietnam items listed in Appendix 1 in excessive quantities or those outside the prescribed list, and enjoy exemption from taxes, charges and fees, except for warehousing charges, freights and charges for similar services according to current regulations of the Vietnamese State.

4. Based on books of duty-free goods quotas or official letters of the Ministry of Foreign Affairs or its authorized agencies, the entities defined in Section I of this Circular shall carry out procedures at customs offices.

5. The entities defined in Section I of this Circular are entitled to exemption from taxes, charges or fees only when purchasing goods at duty-free shops licensed by the Vietnamese State.

III. PROVISIONS ON CONDITIONS FOR DUTY-FREE TEMPORARY IMPORT OR PURCHASE OF CARS OR MOTORCYCLES IN VIETNAM

1. The entities defined in Clause 2 of Section I are entitled to tax exemption for cars or motorcycles listed in Appendix 2 to this Circular if satisfying the following conditions:

a/ Having worked for a representative office for at least 12 months from the date they register temporary residence and arc granted identity cards by the Ministry of Foreign Affairs.

b/ The remaining working duration according to the granted identity cards must be at least 6 months.

2. The entities defined in Clause 3 of Section I are entitled to tax exemption for cars or motorcycles listed in Appendix 3 to this Circular if satisfying the following conditions:

a/ Having worked for a representative office for at least 12 months from the date they register temporary residence and are granted identity cards by the Ministry of Foreign Affairs.

b/ Satisfying the time limit condition specified at Point c, Clause 1 of Section II.

3. The temporary import of used cars under the guidance in Clauses 1 and 2 of this Section must comply with the conditions, order and procedures for the import of used cars provided for in the Governments Decree No. 12/2006/ND-CP of January 23, 2006, detailing the Commercial Law with regard to international goods trading and goods trading agency, processing and transit with foreign parties; the Transport Ministers Decision No. 35/2005/QD-BGTVT of July 21, 2005, on quality inspection, technical safety and environmental protection: and Joint Circular No. 03/2006/TTLT-BTM-BGTVT-BTC-BCA of March 31, 2006, of the Ministry of Trade, the Ministry of Transport, the Ministry of Finance and the Ministry of Public Security, guiding the import of used cars with less than 16 seats under the Governments Decree No. 12/2006/ND-CP of January 23, 2006.

IV. PROVISIONS ON RE-EXPORT, EXPORT, TRANSFER AND DESTRUCTION OF ITEMS TEMPORARILY IMPORTED OR PURCHASED FREE OF DUTY IN VIETNAM

1. Re-export and export:

a/ When re-exporting cars or motorcycles which were temporarily imported or exporting cars or motorcycles purchased free of duty in Vietnam, the entities defined in Section I of this Circular are entitled to exemption of related taxes, charges and fees according to current regulations of the Vietnamese State.

b/ After re-exporting or exporting their vehicles, the entities defined in Section I of this Circular may temporarily import or purchase free of duty in Vietnam additional cars or motorcycles up to their prescribed quantities under the conditions specified in Section III of this Circular. Particularly for the entities defined in Clauses 2 and 3 of Section I, their remaining working duration in Vietnam according to their identity cards must be at least 6 months from the date re-export or export procedures are completed.

2. Transfer:

a/ The entities defined in Section I of this Circular that have temporarily imported or purchased free of duty in Vietnam cars or motorcycles may transfer those cars or motorcycles in Vietnam in the following cases:

- From the time they are granted car/motorcycle circulation registration permits, they have used those cars or motorcycles in Vietnam for at least:

+ 24 months, for the entities defined in Clause 1, Section I of this Circular.

+ 12 months, for the entities defined in Clauses 2 and 3. Section 1 of this Circular.

- When they conclude their working duration in Vietnam (for the entities defined in Clauses 2 and 3, Section I of this Circular).

b/ For cars or motorcycles which cannot be used for diplomatic activities due to accidents, fires or natural disasters, written certification thereof by the Vietnamese Ministry of Public Security or a competent appraisal agency is required. If their remaining working duration in Vietnam is 6 months or longer, the entities defined in Clauses 2 and 3, Section I of this Circular may temporarily import, import or purchase free of duty in Vietnam cars or motorcycles for replacement.

c/ The entities defined in Section I of this Circular that transfer cars or motorcycles between themselves are entitled to exemption from related taxes, charges or fees and the quantities of those cars or motorcycles must be included in the quantities set in Appendices 1, 2 and 3 to this Circular for transferees (purchasers). In other cases of transfer, transferors (sellers) shall pay all taxes, charges or fees according to current regulations of the Vietnamese State.

d/ After completing transfer procedures, the entities defined in Clause 1, Section I of this Circular may temporarily import or purchase free of duty in Vietnam cars or motorcycles to ensure their quantities prescribed in Appendix 1 to this Circular.

e/ Except for the case defined at Point b, Clause 2 of this Section, before conducting the transfer, the entities defined in Clauses 2 and 3, Section I of this Circular shall send their written commitments to the Ministry of Foreign Affairs and the Ministry of Finance (the General Department of Customs) that in their remaining working duration in Vietnam, they will neither import nor purchase free of duty cars or motorcycles at duty-free shops licensed by the Vietnamese Slate in order to replace ihe transferred ones.

3. Destruction:

a/ The entities defined in Section I of this Circular that wish to destroy or are forced to destroy items that were temporarily imported, imported or purchased free of duty in Vietnam but now no longer satisfy standard or quality requirements, shall, based on the written appraisal of a competent appraisal agency, send their written requests to the Ministry of Foreign Affairs.

b/ The destruction of cars or motorcycles temporarily imported or purchased free of duty in Vietnam under the provisions of this Circular is subject to the written approval of the Ministry of Foreign Affairs.

c/ After completing the destruction, the entities defined in Section I of this Circular may temporarily import or purchase free of duty in Vietnam additional cars or motorcycles under the conditions specified in Section III of this Circular. Particularly for the entities defined in Clauses 2 and 3. Section I of this Circular, their remaining working duration in Vietnam according to their identity cards must be at least 6 months after the destruction procedures are completed.

d/ The destruction must be conducted in accordance with current provisions of law.

V. RESPONSIBILITIES OF CONCERNED ORGANIZATIONS AND INDIVIDUALS

1. The Ministry of Foreign Affairs:

a/ To identify the entities entitled to privileges under the guidance in this Circular.

b/ To notify this Circular to the entities defined in Section I.

c/ To consider and allow the entities defined in Clause 1 of Section I to temporarily import, import or purchase free of duty in Vietnam goods and items in excessive quantities specified in Appendix 1 to this Circular.

d/ To consider and allow the entities defined in Clause 1 of Section I to temporarily import, import or purchase free of duty in Vietnam goods and items which are not subject to conditional business or import and outside the list in Appendix 1 to this Circular.

e/ To receive requests of the entities defined in Clause 1 of Section I for duty-free temporary import, import or purchase in Vietnam of goods or items which are subject to conditional business or import and are outside the list in Appendix 1 to this Circular. After receiving those requests, the Ministry of Foreign Affairs shall send its proposal to the Ministry of Industry and Trade for decision.

f/ To consider and decide

g/ To consider and decide on the destruction of cars or motorcycles temporarily imported or purchased free of duty in Vietnam in accordance with this Circular.

h/ To grant and manage books of duty-free goods quotas.

2. The Ministry of Finance:

a/ To promulgate, and guide the use of, books of duty-free goods quotas according to Appendices 1, 2 and 3.

b/ To guide and carry out customs procedures for items upon temporary import, import, purchase at duty-free shops, re-export, export, transfer or destruction in accordance with this Circular and relevant legal documents.

3. The Ministry of Industry and Trade:

To consider and settle requests of the entities defined in Clause 1 of Section I for duty-free temporary import, import or purchase in Vietnam of goods or items which are subject to conditional business or import and outside the list in Appendix 1 to this Circular at the proposal of the Ministry of Foreign Affairs.

4. Entities defined in Section I of this Circular:

a/ To use items permitted for duty-free import, temporary import or purchase in Vietnam for proper purposes in accordance with Vietnamese law.

b/ The entities defined in Clauses 2 and 3, Section I of this Circular are obliged to re-export, export, transfer or destroy cars or motorcycles at least 30 (thirty) days before the end of their working duration in-Vietnam stated in their temporary-residence registration papers and identity cards. If unable to re-export, export, transfer or destroy in time their cars or motorcycles, these entities shall carry out procedures for returning car/motorcycle number plates and canceling car/motorcycle registration numbers at traffic police agencies and authorize their representative agencies to organize the re-export, transfer or destruction of those cars or motorcycles, which shall be preserved at representative offices.

c/ Upon concluding their working duration in Vietnam, if the entities defined in Clauses 2 and 3, Section I of this Circular cannot yet complete procedures for re-export or transfer of cars. or motorcycles, their representative offices shall complete these procedures within 6 months after those entities conclude their working term.

d/ To return books of duty-free goods quotas to competent Vietnamese agencies within 7 (seven) days after concluding their working duration in Vietnam, for the entities defined in Clause 2 of Section I, or upon the expiration of those books, for the entities defined in Clause 3 of Section I.

V. ORGANIZATION OF IMPLEMENTATION

1. This Circular takes effect 15 (fifteen) days after its publication in CONG BAO.

2. This Circular replaces Joint Circular No. 04/TTLB of February 12, 1996, and Joint Circular No. 04BS/TTLB of October 20, 1996, of the Ministry of Trade, the Ministry of Foreign Affairs, the Ministry of Finance and the General Department of Customs, and other relevant guiding documents.

3. In the course of implementation, the Ministry of Industry and Trade, the Ministry of Foreign Affairs and the Ministry of Finance shall joint consider and settle in time arising problems and annually meet to review, and draw experience from, the implementation of this Circular.

APPENDIX 1
LIST AND QUANTITY OF ESSENTIAL ITEMS FOR WORK AND DAILY-LIFE NEEDS OF VIETNAM-BASED DIPLOMATIC MISSIONS, CONSULAR OFFICES AND INTERNATIONAL ORGANIZATIONS REPRESENTATIVE OFFICES
(Attached to Joint Circular No. 03/2007/TTLT-BCT-BTC-BNG of October 15, 2007)

Notes: Goods and items numbered 3, 4, 8 and 9 may be liquidated after three years use and imported or purchased free of duty for substitution.

APPENDIX 2

LIST AND QUANTITY OF ESSENTIAL ITEMS FOR WORK AND DAILY-LIFE NEEDS OF MEMBERS OF VIETNAM-BASED DIPLOMATIC MISSIONS, CONSULAR OFFICES AND INTERNATIONAL ORGANIZATIONS REPRESENTATIVE OFFICES
(Attached to Joint Circular No. 03/2007/TTLT-BCT-BTC-BNG of October 15, 2007)

APPENDIX 3

LIST AND QUANTITY OF ESSENTIAL ITEMS FOR WORK AND DAILY-LIFE NEEDS OF ADMINISTRATIVE AND TECHNICAL EMPLOYEES OF DIPLOMATIC MISSIONS, CONSULAR OFFICES AND INTERNATIONAL ORGANIZATIONS REPRESENTATIVE OFFICES
(Attached to Joint Circular No. 03/2007/TTLT-BCT-BTC-BNG of October 15, 2007)