Customs Law 2014, Law No. 54/2014/QH13

ORDER

On the promulgation of law[1]

THE PRESIDENT OF THE SOCIALIST REPUBLIC OF VIETNAM

Pursuant to Articles 88 and 91 of the Constitution of the Socialist Republic of Vietnam;

Pursuant to Article 91 of the Law on Organization of the National Assembly;

Pursuant to Article 57 of the Law on Promulgation of Legal Documents,

PROMULGATES:

The Customs Law,

which was passed on June 23, 2014, by the XIII^thNational Assembly of the Socialist Republic of Vietnam at its 7^thsession.

President of the Socialist Republic of Vietnam
TRUONG TAN SANG

CUSTOMS LAW[2]

Pursuant to the Constitution of the Socialist Republic of Vietnam;

The National Assembly promulgates the Customs Law.

Chapter I

GENERAL PROVISIONS

Article 1.Scope of regulation

This Law provides the state management of customs with regard to goods which are imported, exported or transited, and means of transport of domestic and foreign organizations and individuals which are on exit or entry or in transit within the customs territory; and organization and operation of the customs service.

Article 2.Subjects of application

1. Organizations and individuals that import, export, or transit goods, or have means of transport on exit or entry or in transit.

2. Organizations and individuals that have rights and obligations related to the import, export and transit of goods and exit, entry and transit of means of transport.

3. Customs offices and customs officers.

3. Other state agencies involved in the coordinated state management of customs.

Article 3.Customs policies

1. The Vietnamese State shall create favorable customs conditions for activities of import, export, exit, entry and transit in the Vietnamese territory.

2. To build Vietnam Customs into a clean, strong, professional and modern service operating in a transparent, effective and efficient manner.

Article 4.Interpretation of terms

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

1.Border gate transfermeans transfer of goods or means of transport subject to customs inspection and supervision from one place of customs clearance to another.

2.Transshipmentmeans transfer of goods from a means of transport for domestic transportation or on entry to a means of transport on exit for export or from a means of transport for domestic transportation or on entry into warehouses and storing yards in a border-gate area before being loaded aboard other means of transport for export.

3.National single-window mechanismmeans permission for customs declarants to send information and electronic documents for completion of customs procedures and procedures of state management agencies related to imported and exported goods through an integrated information system. State management agencies shall decide to permit import, export and transit of goods; customs offices shall decide on customs clearance and release of goods on the integrated information system.

4.Container freight stationmeans warehouses and storing yards used for receiving or breaking bulk containerized cargoes of many consignees.

5.Customs supervisionmeans professional measures applied by customs offices to ensure the original conditions of goods and law compliance in the preservation, storage, loading, unloading, transportation and use of goods, and in the exit, entry and transit of means of transport currently subject to customs management.

6.Goodsinclude movable assets with appellations and headings according to the Vietnamese list of imports and exports which may be imported, exported, transited or retained in customs operation areas.

7.Luggage of people on exit or entrymeans essentials for their daily needs or trips, including carry-on luggage and luggage consigned before or after trips.

8.Customs dossiercomprises customs declaration and documents to be submitted or produced to customs offices as prescribed in this Law.

9.Tax-suspension warehousemeans a warehouse used to store imported materials and supplies for export production which have been cleared from customs procedures but for which taxes have not yet been paid.

10.Bonded warehousemeans a warehouse or storing yard for storing goods for which customs procedures have been completed and which are stored pending their export; goods sent from abroad and stored pending their re-export or their import into Vietnam.

11.Customs controlmeans measures of patrolling, investigating, verifying or other professional measures applied by customs offices to prevent and combat smuggling and illegal cross-border transportation of goods and other violations of the customs law.

12.Customs inspectionmeans the checking of customs dossiers and related documents and the physical inspection of goods and means of transport by customs offices.

13.Customs territorymeans areas within the territory, exclusive economic zone and continental shelf of the Socialist Republic of Vietnam where the Customs Law applies.

14.Customs declarantsinclude goods owners; means of transport owners; means of transport drivers; customs procedure agents and persons authorized by goods owners or means of transport owners to carry out customs procedures.

15.Customs sealingmeans the use of technical tools or signs to identify and ensure the original conditions of goods.

16.Classification of goodsmeans the identification of appellations and headings of goods according to the Vietnamese list of imports and exports based on characteristics, ingredients, composition, physical and chemical properties, utilities, packaging specifications and other particularities of goods.

17.Means of transportinclude means of road, rail, air, sea and inland waterway transport on exit or entry or in transit.

18.Risk managementmeans the application by customs offices of a system of professional measures and processes to identify, assess and classify risks to serve as a basis for rational arrangement of resources to effectively inspect, supervise and support other customs operations.

19.Riskmeans a possible failure to observe the customs law in the import, export and transit of goods; and the exit, entry and transit of means of transport.

20.Personal effectsmeans articles and utensils used for daily life and work of individuals, families and organizations which they may bring along when they no longer reside or terminate their operation in Vietnam or abroad.

21.Customs clearancemeans the completion of customs procedures for goods to be imported, exported or placed under another professional customs management mechanism.

22.Customs informationmeans information and data on import, export, exit, entry and transit activities; and organizations and individuals involved in these activities, and other information relating to customs activities.

23.Customs proceduresmean activities to be carried out by customs declarants and customs officers in accordance with this Law for goods and means of transport.

24.Customs valuemeans the value of imported or exported goods used for duty calculation and customs statistics.

25.Articles on means of transportinclude assets used on means of transport; materials and fuel used to operate means of transport; food, foodstuff and other utensils which directly serve daily-life activities of people working and passengers on means of transport.

26.Prior identification of customs codes, origin and valuemeans identification by customs offices of customs codes, origin and value of goods before carrying out customs procedures.

Article 5.Application of treaties, international customs and practices related to customs

1. In case a treaty to which the Socialist Republic of Vietnam is a contracting party contains provisions different from those of this Law, the provisions of such treaty prevail.

2. For cases which have not yet been specified by this Law, other legal documents of Vietnam and treaties to which the Socialist Republic of Vietnam is a contracting party, international customs and practices related to customs may be applied, provided the application of such customs and practices does not contravene the fundamental principles of Vietnamese law.

Article 6.International cooperation on customs

1. International cooperation on customs covers:

a/ Negotiation, conclusion and organization of implementation of treaties and international agreements on customs;

b/ Exploitation and exchange of information and professional cooperation with customs authorities of foreign countries and related international organizations;

c/ Sending of Vietnamese customs officers abroad and receipt of foreign customs officers sent to Vietnam to perform professional customs operations in accordance with the customs law, treaties to which the Socialist Republic of Vietnam is a contracting party or concluded international agreements;

d/ Exercise of rights, performance of obligations and enjoyment of interests of the Vietnamese State at the World Customs Organization, customs-related international organizations, countries and territories.

2. Vietnam Customs shall carry out activities specified in Clause 1 of this Article in accordance with law.

Article 6.Customs operation areas

1. Customs operation areas include:

a/ Areas of land border gates, international railway stations, international civil airports; seaports and inland waterway ports where import, export, exit, entry and transit activities are carried out; areas where goods subject to customs supervision are stored, export processing zones and customs preference zones; customs clearance places, bonded warehouses, tax-suspension warehouses, international posts, head offices of customs declarants where post-customs clearance inspection is carried out; and places for inspection of imported and exported goods in the customs territory;

b/ Other areas and places which meet state management requirements and in which import, export and transit of goods and exit, entry and transit of means of transport are permitted under decisions of the Prime Minister.

2. In customs operation areas, customs offices shall inspect, supervise and control goods and means of transport and handle violations of the customs law in accordance with Vietnamese law and treaties to which the Socialist Republic of Vietnam is a contracting party.

3. The Government shall specify the scope of customs operation areas.

Article 8.Modernization of customs management

1. The State shall prioritize investment in modern technical equipment and facilities and advanced technologies to ensure the effective customs management; encourage organizations and individuals to participate in developing advanced technologies and technical equipment to ensure the application of modern customs management methods. Organizations and individuals engaged in import and export activities shall participate in developing and performing electronic transactions and electronic customs procedures.

2. The system of technical standards for exchange of electronic data and legal validity of electronic documents in the completion of electronic customs procedures must comply with the law on electronic transactions.

Article 9.Coordination in the enforcement of the customs law

1. Customs offices shall assume the prime responsibility for, and closely coordinate with related state agencies, organizations and people’s armed forces units in, enforcing the customs law.

2. Related state agencies, organizations and people’s armed forces units shall, within the ambit of their tasks and powers, coordinate with and create conditions for customs offices to fulfill their tasks.

Article 10.Prohibited acts in customs

1. For customs officers:

a/ Causing troubles and difficulties in carrying out customs procedures;

b/ Covering up or colluding with others in smuggling or illegally transporting goods across the border, committing trade or tax fraud;

c/ Taking bribes, appropriating or embezzling temporarily seized goods or other acts for self-seeking purposes;

d/ Other acts in violation of the customs law.

2. For customs declarants, organizations and individuals with rights and obligations related to import, export and transit of goods, or exit, entry and transit of means of transports:

a/ Committing fraudulent acts in carrying out customs procedures;

b/ Smuggling or illegally transporting goods across the border;

c/ Committing trade or tax fraud;

d/ Giving bribes or other acts for self-seeking purposes;

dd/ Obstructing customs officers in performing their official duty;

e/ Hacking, falsifying or destroying the customs information system;

g/ Other acts in violation of the customs law.

Article 11.Supervision of the implementation of the customs law

1. The National Assembly and People’s Councils at all levels shall, within the ambit of their functions, tasks and powers, supervise the implementation of the customs law.

2. The Vietnam Fatherland Front and its member organizations shall mobilize the population to strictly implement the customs law and supervise the implementation of the customs law.

3. When performing their tasks and powers, customs offices and customs officers shall abide by law, rely themselves on the people and submit to the people’s supervision.

Chapter II

TASKS AND ORGANIZATION OF THE CUSTOMS SERVICE

Article 12.Tasks of the customs service

Vietnam Customs is tasked to inspect and supervise goods and means of transport; prevent and combat smuggling and illegal cross-border transportation of goods; organize the implementation of tax laws applicable to imported and exported goods; make statistics on imported and exported goods in accordance with this Law and other relevant laws; propose policies and measures for customs-related state management of import, export, exit, entry and transit activities and tax policies applicable to imported and exported goods.

Article 13.Principles of organization and operation of the customs service

1. Vietnam Customs shall be organized and operate on the principle of centralized and uniform command.

2. The General Director of Customs shall uniformly manage and execute activities of customs offices at all levels; customs offices at lower levels shall submit to the management and direction by customs offices at higher levels.

Article 14.Organizational system of the customs service

1. The organizational system of Vietnam Customs consists of:

a/ The General Department of Customs;

b/ Customs Departments of provinces, inter-provinces and centrally run cities;

c/ Customs Branches, customs control squads and equivalent units.

2. The Government shall base itself on the work volume, scale and characteristics of import, export, exit, entry and transit and socio-economic particularities and conditions of each geographical area to set criteria for establishment of Customs Departments; and specify the organization, tasks and operation of customs offices at all levels.

Article 15.Customs officers

1. Customs officers are those who are qualified and recruited and appointed to ranks, posts or titles in customs offices; and are trained, retrained, managed and employed in accordance with the law on cadres and civil servants.

2. The service regime, titles, criteria, salaries, seniority allowance and other entitlements for customs officers, customs signs, banners, badges, uniforms and identity cards shall be prescribed by the Government.

Chapter III

CUSTOMS PROCEDURES, CUSTOMS INSPECTION AND SUPERVISION REGIMES

Section 1

GENERAL PROVISIONS

Article 16.Principles for carrying out customs procedures, conducting customs inspection and supervision

1. Goods and means of transport must go through customs procedures, be subject to customs inspection and supervision, transported along routes and within time limits through border gates or other places prescribed by law.

2. Customs inspection and supervision shall be conducted on the basis of applying the risk management in order to ensure effective and efficient state management of customs and facilitate import, export, exit, entry and transit activities.

3. Goods may enjoy customs clearance and means of transport may be permitted for exit or entry after going through customs procedures.

4. Customs procedures shall be carried out in a public, quick and convenient manner and in accordance with law.

5. The arrangement of manpower and working time must meet the requirements of import, export, exit, entry and transit activities.

Article 17.Risk management in professional customs operations

1. Customs offices shall apply the risk management in deciding on customs inspection and supervision of goods and means of transport; support the prevention and combat of smuggling and illegal cross-border transportation of goods.

2. Risk management in professional customs operations covers the collection and processing of customs information; development of criteria for and assessment of law compliance by customs declarants, and classification of risks; and implementation of appropriate customs management measures.

3. Customs offices shall manage and apply the system of professional operation information so that it can automatically integrate and process data to serve the application of risk management in professional customs operations.

4. The Minister of Finance shall set criteria for assessment of law compliance by customs declarants, classification of risks and application of risk management in professional customs operations.

Article 18.Rights and obligations of customs declarants

1. Customs declarants have the following rights:

a/ To be provided by customs offices with information relating to the customs declaration for goods and means of transport and with guidance on carrying out customs procedures, and on the customs law;

b/ To request customs offices to conduct prior identification of codes, origin and customs value of goods after providing adequate and accurate information to customs offices;

c/ To have a prior look at goods, take samples of the goods under the supervision by customs officers before making customs declaration in order to ensure accurate customs declaration;

d/ To request customs offices to physically re-inspect goods which have been inspected if they disagree with customs offices’ decisions in case such goods have not yet been cleared from customs procedures;

dd/ To use customs dossiers for customs clearance or transportation of goods or carry out relevant procedures at other agencies as prescribed by law;

e/ To lodge complaints and denunciations about illegal acts committed by customs offices and customs officers;

g/ To claim damage compensation by customs offices and customs officers in accordance with the law on the compensation liability of the State.

2. Customs declarants who are goods or means of transport owners have the following obligations:

a/ To make customs declarations and carry out customs procedures in accordance with this Law;

b/ To provide adequate and accurate information for customs offices to conduct prior identification of codes, origin and customs value of goods;

c/ To be held responsible before law for the truthfulness of declared contents and submitted or produced documents, information consistency between dossiers kept at enterprises and dossiers kept at customs offices;

d/ To comply with decisions and requests of customs offices and customs officers carrying out customs procedures or conducting customs inspection and supervision of goods and means of transport;

dd/ To keep customs dossiers for goods cleared from customs procedures for 5 years as from the date of registration of customs declarations, unless otherwise provided by law; to keep accounting books and documents and other documents related to imported and exported goods cleared from customs procedures for a duration prescribed by law; to produce dossiers and provide relevant information and documents for examination when so requested by customs offices under Articles 32, 79 and 80 of this Law;

e/ To arrange manpower and equipment to perform jobs related to the physical inspection of goods and means of transport by customs officers;

g/ To pay taxes and fulfill other financial obligations in accordance with the laws on taxes, charges and fees and other relevant laws.

3. Customs declarants who are customs procedure agents and other persons authorized by goods and means of transport owners shall perform the obligations prescribed at Points a, b, c, d, e and g, Clause 2 of this Article within the scope of authorization. Customs declarants who are means of transport drivers shall perform the obligations prescribed at Points a, c, d, e and g, Clause 2 of this Article.

Article 19.Tasks and powers of customs officers

1. To strictly comply with laws and professional customs processes and take responsibility for the performance of their tasks and exercise of their powers.

2. To guide customs declarants and related organizations and individuals when so requested.

3. To conduct customs inspection and supervision; to supervise the packing, unpacking, transshipment, loading and unloading of cargoes at places of customs procedure completion and places of inspection of imported and exported goods. In case of detecting signs of violation of the customs law, to request owners of goods or means of transport, commanders or drivers of means of transport or authorized persons to comply with their requests for the inspection and search of goods and means of transport in accordance with this Law and the law on handling of administrative violations.

4. To take samples of goods in the presence of customs declarants for customs offices to analyze them or solicit assessment to serve customs inspection.

5. To request customs declarants to provide information and documents related to their goods in order to determine correct codes, origin and customs value of goods.

6. To request commanders or drivers of means of transport to move along prescribed routes and on prescribed time and stop at prescribed places.

7. Other tasks and powers as prescribed by law.

Article 20.Customs procedure agents

1. Conditions for acting as a customs procedure agent:

a/ Possessing a business registration certificate or an enterprise registration certificate stating the business line of providing goods forwarding or customs procedure agency service;

b/ Having a customs procedure agency staff;

c/ Having information technology infrastructure satisfying the conditions for making e-customs declaration and other prescribed conditions.

2. A customs procedure agency staff member must be a Vietnamese citizen who fully satisfies the following conditions:

a/ Possessing a collegial or higher degree in economics, law or technique;

b/ Possessing a certificate of professional operation of customs declaration;

c/ Possessing a customs procedure agency staff code granted by a customs office.

3. The General Director of Customs shall decide on the recognition, suspension or termination of customs procedure agency activities; grant of certificates of professional operation of customs declaration; grant and withdrawal of customs procedure agency staff codes.

4. Customs procedure agents and agency staff members shall exercise the rights and perform the obligations of customs declarants provided in Article 18 of this Law.

5. The Minister of Finance shall detail the order and procedures for recognition and operation of customs procedure agents; procedures for grant of certificates of professional operation of customs declaration, and grant and withdrawal of customs procedure agency staff codes.

Article 21.Customs procedures

1. While carrying out customs procedures, customs declarants shall:

a/ Fill in and submit customs declaration forms; submit or produce documents of customs dossiers prescribed in Article 24 of this Law;

b/ Take goods and means of transport to prescribed places for physical inspection;

c/ Pay taxes and fulfill other financial obligations in accordance with the laws on taxes, charges and fees and other relevant laws.

2. While carrying out customs procedures, customs offices and customs officers shall:

a/ Receive and register customs dossiers;

b/ Examine customs dossiers and conduct physical inspection of goods and means of transport;

c/ Collect taxes and other amounts in accordance with the laws on taxes, charges and fees and other relevant laws;

d/ Decide on customs clearance for goods, release of goods and certification that customs procedures have been completed for means of transport.

Article 22.Places of customs procedure completion

1. Places of customs procedure completion are places where customs offices receive, register and examine customs dossiers and conduct physical inspection of goods and means of transport.

2. Places where customs dossiers are received, registered and examined are head offices of Customs Departments or Customs Branches.

3. Places of physical inspection of goods include:

a/ Places of inspection in land border gates, international railway stations, international civil airports; international post offices; seaports and inland waterway ports where import, export, exit, entry and transit activities are carried out; inland ports of importation or exportation of goods;

b/ Head offices of Customs Branches;

c/ Places of centralized inspection under decisions of the General Director of Customs;

d/ Places of inspection at production establishments or works; places where trade fairs or exhibitions are held;

dd/ Places of inspection at bonded warehouses, tax suspension warehouses and container freight stations;

e/ Places of joint inspection by Vietnam Customs and customs of neighboring countries in land border gates;

g/ Other places decided by the General Director of Customs in case of necessity.

4. When planning, designing and constructing land border gates, international railway stations, international civil airports; seaports and inland waterway ports where import, export, exit, entry and transit activities are carried out; inland ports of importation or exportation of goods; economic zones, industrial parks, non-tariff zones and other places where import, export, exit, entry and transit activities are carried out by competent agencies, organizations or persons shall arrange places of customs procedure completion and places of storage of imported and exported goods meeting requirements of customs inspection and supervision in accordance with this Law.

Article 23.Time limit for customs offices to carry out customs procedures

1. Customs offices shall receive, register and examine customs dossiers right after customs declarants submit or produce such dossiers in accordance with this Law.

2. After customs declarants satisfy all requirements for carrying out customs procedures prescribed at Points a and b, Clause 1, Article 21 of this Law, the time limit for customs officers to complete the examination of dossiers and physical inspection of goods and means of transport is prescribed as follows:

a/ To complete the examination of dossiers within 2 working hours after customs offices receive complete customs dossiers;

b/ To complete the physical inspection of goods within 8 working hours after customs declarants fully produce goods to customs offices. For goods subject to specialized inspection of quality, health, culture, animal quarantine, plant quarantine or food safety in accordance with relevant laws, the time limit for completion of physical inspection of goods shall be counted from the time of receiving specialized inspection results under regulations.

For lots of goods in large quantities and of many types or in case the inspection is complicated, heads of customs offices that carry out customs procedures shall decide to prolong the time limit for physical inspection of goods for not more than 2 days;

c/ The inspection of means of transport must ensure the timely loading and unloading of imported and exported goods, exit and entry of passengers and customs inspection and supervision in accordance with this Law.

3. The customs clearance must comply with Article 37 of this Law.

4. Customs offices shall carry out customs procedures for goods on public holidays and weekends and in non-working hours in order to facilitate timely loading and unloading of imported and exported goods, exit and entry of passengers and means of transport or at the request of customs declarants and in suitability with practical conditions of customs operation areas.

Article 24.Customs dossiers

1. A customs dossier comprises:

a/ A customs declaration form or a document in substitution;

b/ Relevant documents.

On a case-by-case basis, a customs declarant shall submit or produce the goods purchase and sale contract, commercial invoice, bill of lading, certificate of origin of goods, import or export permit, notice of specialized inspection results or exemption from specialized inspection, and documents related to goods as prescribed by relevant laws.

2. Documents in customs dossiers may be paper or electronic documents. Electronic documents must ensure the integrity and format prescribed by the law on e-transactions.

3. Customs dossiers shall be submitted or produced to customs offices at their head offices.

In case of application of the national single-window mechanism, specialized state management agencies shall send import or export permits and notices of specialized inspection results or exemption from specialized inspection in the electronic form via the integrated information system.

4. The Minister of Finance shall set the customs declaration form, use of customs declarations and documents in substitution of customs declarations, and cases in which relevant documents specified in Clause 1 of this Article must be submitted or produced.

Article 25.Time limit for submission of customs dossiers

1. The time limit for submission of customs declarations is prescribed as follows:

a/ For exported goods, customs declarations must be submitted after goods are transported to places notified by customs declarants and at least 4 hours before the exit of means of transport. For exported goods delivered by express delivery services, customs declarations must be submitted at least 2 hours before the exit of means of transport;

b/ For imported goods, customs declarations must be submitted before goods arrive at border gates or within 30 days after goods arrive at border gates;

c/ The time limit for submission of customs declarations for means of transport is prescribed in Clause 2, Article 69 of this Law.

2. Customs declarations are valid for completion of customs procedures within 15 days after they are registered.

3. The time limit for submission of relevant documents in customs dossiers is prescribed as follows:

a/ In case of e-customs declaration, when customs offices conduct examination of customs dossiers and physical inspection of goods, customs declarants shall submit paper documents in customs dossiers, except documents already available in the national single-window information system;

b/ In case of filling in paper customs declarations, customs declarants shall submit or produce relevant documents when registering their customs declarations.

Article 26.Classification of goods

1. Classification of goods aims to identify goods headings to serve as a basis for tax calculation and implementation of the goods management policy. The classification of goods must be based on customs dossiers, technical documents and other information related to imported and exported goods for identification of goods names and headings according to the list of Vietnamese imports and exports.

2. The list of Vietnamese imports and exports consists of headings, names and descriptions of goods, units of calculation and attached explanations.

3. The list of Vietnamese imports and exports is made on the basis of full application of the International Convention on Harmonized Commodity Description and Coding System.

The Minister of Finance shall promulgate the list of Vietnamese imports and exports for uniform application nationwide.

4. Based on the list of goods banned from import and export, the list of goods imported and exported under permits of competent state agencies, and the list of goods subject to specialized inspection prescribed by the Government, the Minister of Finance shall promulgate goods headings consistent with headings in the list of Vietnamese imports and exports.

5. When conducting customs inspection, customs offices shall identify goods headings based on customs dossiers, results of physical inspection or analysis and assessment of goods. In case they do not accept goods headings declared by customs declarants, customs offices may take goods samples in the presence of customs declarants for analysis or solicited assessment and decide on headings of such goods. If customs declarants disagree with results of classification by customs offices, they may file complaints or lawsuits in accordance with law.

Article 27.Identification of origin of goods

1. For exported goods:

a/ Customs offices shall identify the origin of exported goods based on the examination of contents declared by customs declarants and documents in customs dossiers and results of physical inspection of goods;

b/ If doubting about the origin of exported goods, customs offices shall request customs declarants to provide documents related to the origin of exported goods, and inspect and verify the origin of goods at export production establishments. Pending the availability of inspection and verification results, exported goods may be cleared from customs procedures under Article 37 of this Law.

2. For imported goods:

a/ Customs offices shall inspect and identify the origin of imported goods based on contents declared by customs declarants, documents on certification of origin, documents in customs dossiers and results of physical inspection of goods. Documents on certification of origin of imported goods must be those issued by competent agencies of exporting countries or made by manufacturers, exporters or importers under treaties to which the Socialist Republic of Vietnam is a contracting party;

b/ If doubting about the origin of imported goods, customs offices shall inspect and verify the origin of goods at manufacturing countries under treaties to which the Socialist Republic of Vietnam is a contracting party. Origin inspection and verification results are legally valid for identification of the origin of imported goods.

Pending the availability of inspection and verification results, imported goods may be cleared from customs procedures under Article 37 of this Law but are not entitled to particularly preferential duty rates. Official payable duty amounts shall be based on results of the inspection and verification of the origin of goods.

3. The Minister of Finance shall prescribe procedures, competence and time limit for identification of the origin of goods.

Article 28.Prior identification of customs codes, origin and value

1. In case customs declarants request customs offices to conduct prior identification of customs codes, origin and value of goods expected to be imported or exported, they shall provide relevant information and documents and samples of goods expected to be imported or exported to customs offices for prior identification of customs codes, origin and value.

If unable to provide samples of goods expected to be imported or exported, customs declarants shall provide technical documents related to such goods.

2. Customs offices shall base themselves on regulations on classification of goods, origin and customs value and relevant information and documents provided by customs declarants to conduct prior identification of customs codes, origin and value and notify in writing customs declarants of results of prior identification. In case of lacking grounds or information for identification at the request of customs declarants, customs offices shall notify such to customs declarants or request customs declarants to additionally provide relevant information and documents.

3. Within 60 days after receiving notices of prior identification results, if customs declarants disagree with such results, they may request customs offices to reconsider such results. Customs offices shall reconsider prior identification results and notify them to customs declarants within a prescribed time limit.

4. Notices of prior identification results are legally valid for customs offices to carry out customs procedures for goods when they are actually imported or exported in compliance with relevant information and documents and goods samples provided by customs declarants.

5. The Government shall specify conditions, procedures and time limit for prior identification of customs codes, origin and value; time limit for settlement of requests for reconsideration of prior identification results; and validity duration of documents on prior identification prescribed in this Article.

Article 29.Customs declaration

1. Customs declarants shall fully, accurately and clearly fill information in items in customs declaration forms.

2. Customs declaration shall be made electronically, except when customs declarants may fill in paper customs declaration forms under regulations of the Government.

3. Registered customs declaration forms are valid for completion of customs procedures. Policies on goods management and taxes on imported goods and exported goods are applied at the time of registration of customs declaration forms, unless otherwise provided by the law on import duty and export duty.

4. If determining that his/her declaration contains an error, a customs declarant may make an additional declaration in the following cases:

a/ For goods undergoing customs procedures: Before the customs office notifies the direct examination of the customs dossier;

b/ For goods cleared from customs procedures: Within 60 days from the date of customs clearance and before the customs office decides to conduct post-customs clearance inspection or state inspection, unless additionally declared contents are related to the import or export permit; specialized inspection in terms of quality, health, culture, animal quarantine, plant quarantine and food safety.

If customs declarants detect errors in their customs declarations when the time limit prescribed at Points a and b of this Clause has expired, they shall make additional declaration and their errors shall be handled in accordance with the laws on taxes and handling of administrative violations.

5. Customs declarants may submit incomplete customs declaration forms or documents in substitution of customs declaration forms for customs clearance and shall completely fill in customs declaration forms within the time limit prescribed in Articles 43 and 50 of this Law, and may make a single customs declaration for multiple importation or exportation during a certain period of time for certain goods items.

6. For goods which are undergoing customs procedures or for which customs procedures have been completed but which are still subject to customs supervision, customs declarants may change the form of importation or exportation in accordance with the customs law.

Article 30.Registration of customs declaration forms

1. Methods of registration of customs declaration forms are prescribed as follows:

a/ E-customs declaration forms shall be electronically registered;

b/ Paper customs declaration forms shall be registered directly with custom offices.

2. Customs declaration forms may be registered after customs offices accept the declaration by customs declarants. The time of registration shall be stated in customs declaration forms.

In case they do not accept the registration of customs declaration forms, customs offices shall notify in writing or electronically reasons to customs declarants.

Article 31.Grounds and competence for deciding on customs inspection

Based on results of analysis and assessment of risks and information relating to goods, heads of customs offices processing customs dossiers shall decide on examination of customs dossiers and physical inspection of goods.

Article 32.Examination of customs dossiers

When conducting the examination of customs dossiers, customs offices shall examine the accuracy and adequacy of customs declaration contents and their consistency with documents in customs dossiers, and the compliance with policies on goods management and taxes on imported and exported goods and other relevant laws.

The examination of customs dossiers shall be conducted through an e-customs data processing system or directly by customs officers.

Article 33.Physical inspection of goods

1. The following goods are exempted from physical inspection:

a/ Goods to meet urgent demands;

b/ Goods exclusively used for national defense and security purposes;

c/ Goods in other special cases as decided by the Prime Minister.

2. When signs of violation are detected in goods specified in Clause 1 of this Article, such goods shall be physically inspected.

3. For goods other than those specified in Clause 1 of this Article, physical inspection shall be conducted based on the application of risk management.

4. Goods which are live animals or plants, hard to be preserved or other special goods shall be prioritized for inspection.

5. Physical inspection of goods may be conducted by customs officers mannually or with the aid of machines, technical equipment or by other professional measures.

The physical inspection of goods shall be conducted in the presence of customs declarants or their lawful representatives after customs declaration forms are registered and goods are transported to places of inspection, except the cases specified in Article 34 of this Law.

6. The physical inspection of goods at places for joint inspection by Vietnamese customs offices and customs offices of neighboring countries shall be conducted under agreements between Vietnam and these countries.

7. The Minister of Finance shall specify the physical inspection of goods.

Article 34.Physical inspection of goods in the absence of customs declarants

1. Heads of customs offices in places where goods are stored shall decide on and take responsibility for the physical inspection of goods in the absence of customs declarants in the following cases:

a/ For security protection;

b/ For hygiene and environmental protection;

c/ Upon detection of signs of law violation;

d/ Past 30 days after the imported goods arrive at the border gate but the customs declarants fail to appear to carry out customs procedures;

dd/ Other cases prescribed by law.

2. Physical inspection of goods in the absence of customs declarants shall be conducted in the following forms:

a/ Inspection with screeners;

b/ Inspection with technical equipment and other operational measures of customs offices;

c/ Opening goods bales for inspection to the witness of representatives of the state agency at the border gate, the transportation enterprise and the port, warehouse and storing yard operation enterprise. An inspection record shall be made and signed by related parties.

Article 35.Responsibility to inspect goods and means of transport in customs operation areas

1. Within their customs operation areas, customs offices shall inspect goods and means of transport.

When the law requires specialized inspection related to quality, health, culture, animal and plant quarantine or food safety for goods and means of transport, customs offices shall base themselves on the inspection results of specialized inspection agencies to decide on customs clearance.

2. Goods subject to specialized inspection shall be stored at border gates until they are cleared from customs procedures. When the law allows goods to be brought to other places for specialized inspection or when goods owners request the bringing of goods to their storage places for preservation, such storage places must satisfy customs supervision conditions and the goods shall be subject to customs supervision until they are cleared from customs procedures.

Goods owners shall preserve and store goods at places for specialized inspection or at their storage places until customs offices decide on customs clearance.

3. The time limit for specialized inspection of goods must comply with relevant laws. Specialized inspection agencies shall notify inspection results to customs offices within 2 working days after the inspection results are available.

4. Heads of Customs Branches shall assume the prime responsibility for, and coordinate with specialized inspection agencies at border gates in, ensuring fast customs clearance for goods and means of transport.

Article 36.Release of goods

1. Release of goods means permission for the export or import of goods by customs offices when the following conditions are fully met:

a/ The goods fully meet the export or import conditions but the official payable tax amounts cannot be determined yet;

b/ The customs declarants have paid taxes or have their declared and calculated payable tax amounts guaranteed by a credit institution.

2. The time limit for determining the official payable tax amounts is 30 days after the goods are released; for goods subject to assessment, this time limit shall be counted from the date of receipt of assessment results.

3. If disagreeing with payable tax amounts determined by customs offices, customs declarants may lodge complaints. The lodging and settlement of complaints must comply with the Law on Complaints.

Article 37.Customs clearance for goods

1. Goods shall be cleared from customs procedures after such procedures are completed.

2. In case customs declarants have completed customs procedures but have not yet paid or fully paid payable tax amounts within the prescribed time limit, their goods may be cleared from customs procedures when they have such payable tax amounts guaranteed by a credit institution or enjoy a tax payment time limit in accordance with the tax law.

3. In case goods owners are fined by customs offices or competent state agencies for their customs-related administrative violations and their goods are permitted for export or import, such goods may be cleared from customs procedures if the goods owners have paid the fines or have their payable fines guaranteed by a credit institution for implementing the fining decisions.

4. For goods subject to inspection, analysis or assessment to determine whether or not they fully meet the export or import conditions, customs offices shall permit customs clearance only after determining that the goods are eligible for export or import on the basis of inspection, analysis or assessment conclusions or inspection exemption notices of specialized inspection agencies in accordance with law.

5. Goods to meet urgent requirements; goods to be exclusively used for security and defense purposes; and diplomatic bags, consular bags and luggage of agencies, organizations or individuals entitled to privileges or immunities shall be cleared from customs procedures under Articles 50 and 57 of this Law.

Article 38.Objects, methods and duration of customs supervision

1. Objects of customs supervision include goods, means of transport and domestic means of transport which transport goods currently subject to customs supervision.

2. Customs supervision shall be conducted by the following methods:

a/ Customs sealing;

b/ Direct supervision by customs officers;

c/ Use of technical devices and equipment.

3. Based on risk analysis and assessment results and other information relating to objects of customs supervision, customs offices shall decide on appropriate methods of supervision. When detecting signs of law violation, customs offices shall conduct physical inspection of goods.

4. Duration of customs supervision:

a/ Imported goods shall be subject to customs supervision from the time they arrive at customs operation areas until they are cleared from customs procedures, released and brought out of these areas;

b/ Exported goods exempt from physical inspection shall be subject to customs supervision from the time they are cleared from customs procedures until they are brought out of customs operation areas. Exported goods subject to physical inspection shall be subject to customs supervision from the time the physical inspection starts until the goods are brought out of customs operation areas;

c/ Goods in transit shall be subject to customs supervision from the time they arrive at the first border gate of importation until they are brought out of the last border gate of exportation;

d/ For means of transport, the duration of customs supervision must comply with Article 68 of this Law.

Article 39.Responsibilities of customs offices in customs supervision

1. To apply appropriate methods of supervision which facilitate export, import, exit, entry and transit activities and ensure customs management of goods in accordance with this Law.

2. To use technical devices and equipment ensuring customs supervision in accordance with this Law.

3. To guide and examine customs declarants, port, warehouse and storing yard operation enterprises, export producers and related parties in their observance of regulations on customs supervision.

Article 40.Responsibilities of customs declarants and commanders or drivers of means of transport in customs supervision

1. To comply with, and create conditions for customs offices to conduct, customs supervision in accordance with this Law.

2. To preserve the original conditions and customs seals of goods; to transport goods according to routes, itineraries and time accepted by customs offices. Customs declarants shall take responsibility for the loss, missing or damage of goods in accordance with law.

3. To use goods strictly according to the purposes declared to customs offices.

4. To use means of transport meeting the prescribed conditions for customs offices to apply appropriate methods of customs supervision.

5. To produce dossiers and goods to customs offices for inspection upon request.

6. Inforce majeureevents in which the original conditions or customs seals of goods cannot be maintained or goods are not transported according to routes, itineraries and time, after taking necessary measures to limit and prevent possible losses, to immediately notify the events to customs offices for handling; if unable to immediately notify the events to customs offices, to notify the events to the public security agencies, border guards or coast guards as appropriate for certification.

Article 41.Responsibilities of port, warehouse and storing yard operation enterprises in customs supervision

1. To arrange places for installation of technical equipment and facilities serving customs supervision at the request of customs offices.

2. To connect their goods management information systems with customs offices’ e-customs clearance systems for managing goods currently subject to customs supervision which are brought in for storage or brought out of the areas of ports, warehouses or storing yards.

3. To fully comply with regulations on management, statistics and archive of documents, books and data of goods brought in for storage or brought out of the areas of ports, warehouses or storing yards, and produce and provide these documents, records and data to customs offices upon request.

4. To provide information to, and coordinate with, customs offices in monitoring, inspecting and supervising goods brought in, brought out or stored in the areas of ports, warehouses or storing yards.

5. To preserve, arrange and store goods in their original conditions in the areas of ports, warehouses or storing yards to meet supervision and management requirements of customs offices.

6. To permit the transportation of goods in and out of the areas of ports, warehouses or storing yards only when customs offices’ documents are available.

7. To comply with competent agencies’ decisions on handling of violating goods.

Section 2

PRIORITY REGIME FOR ENTERPRISES

Article 42.Conditions for application of the priority regime

1. An enterprise may enjoy the priority regime when fully meeting the following conditions:

a/ Strictly observing the customs and tax laws for 2 consecutive years;

b/ Earning an annual export and import value reaching the prescribed level;

c/ Carrying out e-customs procedures and e-tax procedures; having an information technology program for managing its export and import activities connected with the customs office’s network;

d/ Making via-bank payment;

dd/ Having its internal control system;

e/ Strictly observing accounting and audit regulations.

2. Priority enterprises in countries or territories that have signed with Vietnam agreements on mutual recognition of priority enterprises may apply the priority regime in accordance with this Law.

3. The Government shall specify conditions and procedures for recognition, extension, suspension, stoppage, priority regime and management of enterprises entitled to the priority regime.

Article 43.Priority regime for enterprises

1. Exemption from examination of relevant documents in customs dossiers and exemption from physical inspection of goods in the course of carrying out customs procedures, except cases in which signs of law violation are detected or random inspection is needed to assess law compliance.

2. To carry out customs procedures with incomplete customs declarations or documents in substitution of customs declarations. Within 30 days from the date of registration of incomplete customs declarations or submission of documents in substitution of customs declarations, customs declarants shall submit complete customs declarations and relevant documents in customs dossiers.

3. To be prioritized when carrying out tax procedures for goods in accordance with the tax laws.

Article 44.Responsibilities of customs offices in implementing the priority regime

1. The General Director of Customs shall consider, recognize, extend, suspend or stop the application of the priority regime to enterprises.

2. Customs offices at all levels shall:

a/ Examine, supervise and assess enterprises in law compliance;

b/ Provide enterprises with guidance on tax and customs policies and regulations.

Article 45.Responsibilities of enterprises entitled to the priority regime

1. To annually provide customs offices with audit reports and financial statements.

2. To comply with inspection and supervision regulations of customs offices.

3. To notify customs offices of competent agencies’ decisions on handling of enterprises’ violations of tax and accounting laws.

Section 3

CUSTOMS INSPECTION AND SUPERVISION OF GOODS, PERSONAL EFFECTS AND LUGGAGE

Article 46.Customs inspection and supervision of goods temporarily imported for re-export

1. Customs procedures for temporary import and customs procedures for re-export shall be carried out at border-gate Customs Branches.

2. Customs inspection and supervision of goods temporarily imported for re-export are prescribed as follows:

a/ Goods temporarily imported for re-export shall be stored at border gates or places subject to customs inspection and supervision;

b/ Goods temporarily imported for re-export shall be subject to customs inspection and supervision from the time customs procedures for temporary import are carried out until the goods are re-exported out of the Vietnamese territory; customs declarants or enterprises dealing in goods temporary import for re-export shall preserve temporarily imported goods throughout the period of storage in Vietnam and re-export such goods.

3. Temporarily imported goods shall be re-exported within the prescribed time limit; temporarily imported goods which are not re-exported but used for domestic sale must go through customs procedures like imported goods.

Article 47.Customs inspection and supervision of goods sold at duty-free shops

1. Goods sold at duty-free shops must go through customs procedures at the Customs Branches managing these shops.

2. Customs inspection and supervision of goods sold at duty-free shops are prescribed as follows:

a/ Goods sold at duty-free shops shall be stored at duty-free shops or warehouses of duty-free goods-selling enterprises which meet customs supervision requirements. The goods storage duration must not exceed 12 months from the date of completion of customs procedures. The head of the Customs Branch managing duty-free shops may grant a single extension not exceeding 12 months for cases with plausible reasons;

b/ Goods sold at duty-free shops shall be subject to customs inspection and supervision from the time customs procedures are carried out until the goods are sold, exported or handled in accordance with law.

3. Goods temporarily imported for sale at duty-free shops which are used for domestic sale must go through customs procedures like imported goods.

Article 48.Customs inspection and supervision of temporarily imported or temporarily exported goods

1. Temporarily imported or temporarily exported goods include:

a/ Means which are rotationally used for containing goods;

b/ Machinery, equipment and professional tools which are used in a specified duration;

c/ Machinery, equipment, means for construction, molds and models for manufacture or construction under hire or borrowing contracts;

d/ Components and parts imported by ship owners for replacement or repair of foreign seagoing ships and aircraft;

dd/ Goods for fairs, exhibitions or product displays;

e/ Other goods prescribed by law.

2. Temporarily exported goods shall be re-imported and temporarily imported goods shall be re-exported within prescribed time limits and must go through customs procedures.

3. Temporarily exported goods or temporarily imported goods under the same customs declaration may be re-imported or re-exported in different shipments under different re-import or re-export customs declarations.

4. Temporarily exported goods which are not re-imported or temporarily imported goods which are not re-exported but are sold, given as gifts or exchanged must go through customs procedures like exported or imported goods.

5. The Government shall detail this Article.

Article 49.Customs inspection and supervision of goods being gifts

1. Goods being gifts must go through customs procedures; for goods subject to conditional export or import, regulations on goods subject to conditional export or import shall be complied with.

It is prohibited to export or import goods being gifts on the list of goods banned from export or import.

2. Quotas of duty-exempt goods being gifts must comply with the tax laws.

Article 50.Customs inspection and supervision of goods to meet urgent requirements and goods exclusively serving security and defense purposes

1. Goods to meet urgent requirements means goods serving the remedy of consequences of natural disasters or epidemics or goods to meet urgent relief requirements.

Goods to meet urgent requirements shall be certified in writing by competent state agencies.

Customs declarants may use incomplete customs declarations or documents in substitution of customs declarations for carrying out customs procedures. Customs offices shall base themselves on incomplete customs declarations or documents in substitution of customs declarations to decide on customs clearance for goods.

Within 30 days from the date of registration of incomplete customs declarations or submission of documents in substitution of customs declarations, customs declarants shall submit complete customs declarations and relevant documents in customs dossiers.

2. Goods exclusively serving security and defense purposes:

a/ Goods exclusively serving security and defense purposes shall be certified in writing by the Minister of National Defense or the Minister of Public Security; customs declarants may use incomplete customs declarations for carrying out customs procedures. Customs offices shall base themselves on incomplete customs declarations to decide on customs clearance for goods.

Within 30 days from the date of registration of incomplete customs declarations, customs declarants shall submit complete customs declarations and relevant documents in customs dossiers;

b/ Goods exclusively serving security and defense purposes which are subject to confidentiality requirements as certified in writing by the Minister of National Defense or the Minister of Public Security shall be exempted from customs declaration and physical inspection.

Article 51.Customs inspection and supervision of goods traded or exchanged by border residents

1. Goods traded or exchanged by border residents means goods serving daily-life and normal production activities of border residents of Vietnam and border residents of countries bordering on Vietnam.

2. Goods traded or exchanged by border residents are subject to customs inspection and supervision; where no customs office is available, such goods are subject to inspection and supervision by border guards in accordance with this Law.

Article 52.Customs inspection and supervision of goods exported or imported through post or express delivery services

1. Goods exported or imported through post or express delivery services must go through customs procedures and are subject to customs inspection and supervision.

2. International post service providers or express delivery service providers that are authorized to make customs declaration shall perform the responsibilities of customs declarants prescribed in Article 18 of this Law, and may transfer and deliver goods only after the goods are cleared from customs procedures.

Article 53.Customs inspection and supervision of personal effects

Personal effects of individuals, families or organizations must go through customs procedures and are subject to customs inspection and supervision.

Exporters or importers of goods being personal effects shall produce papers proving their residence and operation in Vietnam or overseas.

Article 54.Customs inspection and supervision of luggage of persons on exit or entry

1. Luggage of persons on exit or entry is subject to customs inspection and supervision at border gates.

2. Luggage of persons on exit or entry which exceeds duty-exempt quotas must go through customs procedures like exported or imported goods.

Persons on exit or entry may consign luggage in border-gate warehouses and receive them back upon entry or exit.

3. Quotas of tax-exempt luggage must comply with the tax laws.

Article 55.Customs inspection and supervision of foreign currencies in cash, Vietnam dong in cash, negotiable instruments, gold, precious metals and gems of persons on exit or entry

1. Persons on exit or entry who carry foreign currencies in cash, Vietnam dong in cash, negotiable instruments, gold, precious metals and gems are subject to customs inspection and supervision.

2. Persons on entry who carry along foreign currencies in cash, Vietnam dong in cash, negotiable instruments, gold, precious metals and gems in excess of quotas prescribed by the State Bank of Vietnam shall make customs declaration at border gates.

3. Persons on exit who carry along foreign currencies in cash, Vietnam dong in cash, negotiable instruments, gold, precious metals and gems in excess of quotas prescribed by the State Bank of Vietnam shall make customs declaration and produce papers at border gates under regulations of the State Bank of Vietnam.

Article 56.Customs inspection and supervision of goods on means of transport

1. Goods being articles on means of transport are not required to go through customs procedures but are subject to customs inspection and supervision.

2. Goods purchased from means of transport on entry must go through customs procedures like imported goods.

3. Goods supplied to serve means of transport on exit or in transit must go through customs procedures like exported goods.

Article 57.Customs inspection and supervision of diplomatic bags, consular bags, luggage and means of transport of agencies, organizations and individuals entitled to privileges or immunities

1. Privileges and immunities provided in this Law include privileges and immunities in customs declaration and inspection.

2. Diplomatic bags and consular bags are exempted from customs declaration and inspection.

Luggage and means of transport of entities entitled to privileges or immunities under regulations on privileges or immunities for Vietnam-based diplomatic missions, consulates and representative offices of international organizations are exempted from customs inspection.

3. When there are grounds to believe that diplomatic bags or consular bags are misused for the purposes in contravention of a treaty on diplomatic relationships or consular relationships to which the Socialist Republic of Vietnam is a contracting party, or when luggage or means of transport contain goods on the list of goods banned from import or export or goods ineligible for privileges or immunities, the General Director of Customs shall decide on the handling thereof in accordance with the provisions of such treaty.

Article 58.Customs inspection and supervision, handling of goods in stock

1.  Goods in stock are stored in ports, warehouses and storing yards in customs operation areas, including:

a/ Goods that are declared by their owners to be abandoned or of which abandonment is proved by acts of their owners.

The abandonment of goods or an act taken by goods owners to prove the abandonment of goods which show signs of violation of law is not accepted;

b/ Goods that have been imported for more than 90 days from the date their arrival at border-gates but left unclaimed;

c/ Goods collected by port facility and warehousing enterprises during the process of goods loading and unloading;

d/ Goods imported outside bills of lading or manifests but left unclaimed.

2. Where customs offices have grounds to determine that the goods specified in Clause 1 of this Article are smuggled goods, such goods shall be handled in accordance with law.

3. The goods specified at Points b, c, and d, Clause 1 of this Article which are left unclaimed shall be publicly announced in the mass media. Within 60 days from the date of public announcement, if goods owners come and claim such goods, they shall carry out customs procedures and pay a fine in accordance with the law on handling of administrative violations. If such goods are left unclaimed, they shall be handled under Clause 6 of this Article.

4. The goods specified in Clause 1 of this Article which are perishable, frozen, toxic and dangerous chemicals and almost expired goods shall be promptly handled in accordance with this Law and other relevant laws.

5. Port and warehousing enterprises shall arrange ports, warehouses and storing yards which satisfy the customs supervision conditions for storing goods in stock; and coordinate with competent agencies in handling goods in stock under Clause 6 of this Article.

6. Goods in stock shall be handled as follows:

a/ Customs offices shall handle goods in stock in accordance with law. In case of sale of goods in stock, proceeds from the sale shall be remitted into the state budget after subtracting sale expenses and retention at ports and warehouses at port and warehousing enterprises.

b/ For polluting goods, owners and drivers of means of transport or persons authorized by owners of means of transport shall transport such goods out of the Vietnamese territory. In case owners or drivers of means of transport or persons authorized by owners of means of transport are unidentifiable, customs offices shall assume the prime responsibility for, and coordinate with port and warehousing enterprises, local administrations and related agencies in, destroying such goods.

Section 4

CUSTOMS INSPECTION AND SUPERVISION OF GOODS IMPORTED FOR EXPORT PROCESSING AND PRODUCTION

Article 59.Responsibilities of customs offices in customs inspection and supervision of goods imported for export processing and production

1. Goods being materials and supplies imported for export processing and production shall be subject to customs inspection and supervision from the date of their import, during the process of production until products are exported or their use purpose is changed.

2. Customs offices shall:

a/ Inspect processing and production establishments, processing and production capability of organizations and individuals importing materials and supplies for export processing and production;

b/ Inspect the use of imported materials and supplies in the export processing and production process and quantity of goods in stock of organizations and individuals engaged in export processing and production;

c/ Inspect the finalization, management and use of materials and supplies of organizations and individuals importing materials and supplies for export processing and production;

3. Customs inspection and supervision prescribed in this Article shall comply with the risk management principle.

Article 60.Responsibilities of organizations and individuals engaged in export processing and production

1. To notify customs offices of export processing and production establishments.

2. To use materials and supplies imported for the export processing and production purpose. In case the use purpose is changed, to carry out customs procedures in accordance with this Law.

3. To store exported goods, materials and supplies used for export processing and production in production areas. In case of storage outside production areas, approval of customs offices is required.

4. To fully comply with regulations on management, accounting, statistics and archive of documents, books and data on goods brought into or out of processing and production establishments; to produce books, documents and goods to customs offices for inspection.

5. To make finalization reports on management and use of imported materials and supplies and exported goods in accordance with the customs law.

Section 5

CUSTOMS INSPECTION AND SUPERVISION OF GOODS IN BONDED WAREHOUSES, TAX SUSPENSION WAREHOUSES AND CONTAINER FREIGHT STATIONS

Article 61.Goods stored in bonded warehouses, tax suspension warehouses and CFSs

1. The time limit for storing goods in bonded warehouses is 12 months from the date of their consignment. In case of plausible reasons, directors of Customs Departments managing bonded warehouses may extend this time limit once for no more than 12 months.

2. The time limit for storing materials and supplies in tax suspension warehouses for export production is 12 months from the date of their consignment. In case of plausible reasons according to requirement of the production process, heads of Customs Branches managing tax suspension warehouses may extend the time limit. The extension must be suitable to the production cycle.

3. Goods brought into CFSs include imported goods which have not yet been cleared from customs procedures, exported goodss which have been cleared from customs procedures or exported goods for which customs declarations have been registered but physical inspection will be conducted at CFSs.

The time limit for storing goods in CFSs is 90 days after they are brought into such CFSs. For plausible reasons, heads of Customs Branches managing CFSs may extend the time limit once for no more than 90 days.

Article 62.Conditions for establishment of bonded warehouses, tax suspension warehouses and CFSs

1. Bonded warehouses and CFSs shall be established in areas that are home to:

a/ Seaports, international civil airports, inland import and export ports, land border gates, international railway stations;

b/ Industrial parks, hi-tech parks, non-tariff zones and other zones prescribed by law.

2. Tax suspension warehouses shall be established within factories of export production enterprises.

3. The General Director of Customs shall decide to establish, extend the operation duration, suspend and terminate the operation of bonded warehouses, tax suspension warehouses and CFSs.

4. The Government shall detail the establishment and operation of bonded warehouses, tax suspension warehouses and CFSs.

Article 63.Rights and obligations of enterprises dealing in bonded warehouse or CFS, container freight service providers, goods owners and owners of tax suspension warehouses

1. Enterprises dealing in bonded warehouses and owners of goods stored in bonded warehouses have the following rights and obligations:

a/ Enterprises dealing in bonded warehouses may perform contracts on storing goods in their bonded warehouses and move the goods in their bonded warehouses according to agreements with goods owners.

Enterprises dealing in bonded warehouses shall comply with requests of customs offices for goods inspection. Once every three months, enterprises dealing in bonded warehouses shall notify in writing Customs Departments managing bonded warehouses of actual conditions of the goods and the operation of the bonded warehouses.

b/ Goods owners may consolidate packings, categorize goods or take goods samples under the supervision of customs officers and may transfer the ownership of such goods. The transfer of goods from one bonded warehouse to another must be approved in writing by directors of Customs Departments managing bonded warehouses where such goods are stored.

2. Owners of tax suspension warehouses have the following rights and obligations:

a/ To store goods being materials and supplies imported for export production;

b/ To arrange, re-pack and move the goods in the tax suspension warehouses;

c/ To notify in advance customs offices of tentative plans for bringing materials and supplies from tax suspension warehouses to production;

d/ Once every three months, to notify in writing Customs Departments managing tax suspension warehouses of the actual conditions of the goods and the operation of their tax suspension warehouses;

dd/ Not later than January 31 every year, to make a general list of import customs declarations and the total quantity of materials and supplies that have been brought into tax suspension warehouses and a general list of export customs declarations and the total quantity of exported goods in the previous year and send them to Customs Departments managing tax suspension warehouses.

3. Goods owners, enterprises dealing in CFSs and CF service providers have the following rights and obligations:

a/ Goods owners may transfer of the ownership of the goods, pack, re-pack, consolidate, repair and preserve goods;

b/ CF service providers may break bulk or load shipments of different owners in the same container, arrange or re-arrange stored goods;

c/ Once every three months, enterprises dealing in CFSs shall notify in writing Customs Departments managing CFSs of the actual conditions of the goods and their operation.

4. Enterprises dealing in bonded warehouses, enterprises dealing in CFSs and owners of tax suspension warehouses shall comply with regulations on accounting and statistics, be equipped with technical means and equipment to manage goods electronically and connected to customs offices’ network for customs inspection and supervision in accordance with this Law.

5. Enterprises dealing in bonded warehouses, enterprises dealing in CFSs, CF service providers, owners of tax suspension warehouses and goods shall comply with the law on operation of bonded warehouses, tax suspension warehouses and CFSs.

Section 6

CUSTOMS PROCEDURES, INSPECTION AND SUPERVISION OF GOODS TRANSPORTED UNDER CUSTOMS SUPERVISION

Article 64.Customs procedures for goods transported under customs supervision

1. Goods transported under customs supervision include transited goods and goods transported from border gate to border gate.

2. When transporting goods subject to customs supervision, customs declarants shall fill in goods transportation declaration forms; submit or produce the documents specified at Point b, Clause 1, Article 24 of this Law.

3. Customs offices shall receive goods transportation declaration forms, check documents and goods produced by customs declarants to decide to permit the transportation of goods subject to customs supervision.

4. In the course of transporting goods under customs supervision, if customs declarants wish to transship, warehouse or divide shipments, change the transportation mode or perform other jobs, they shall notify such to customs offices and obtain their approval before implementation. Customs offices shall reply within two hours after receiving customs declarant’s notices.

Article 65.Transportation routes and duration

1. Goods under customs supervision must be transported along prescribed routes, through prescribed border gates and within prescribed time limit.

2.  Routes for transportation of transited goods are prescribed by the Minister of Transport.

3. Routes for transportation of goods from border gate to border gate are registered by customs declarants and accepted by customs offices that receive and process customs dossiers.

Section 7

CUSTOMS PROCEDURES, INSPECTION AND SUPERVISION OF MEANS OF TRANSPORT

Article 66.Notification of information on means of transport

Owners and drivers of means of transport, persons authorized by owners of means of transport or persons issuing bills of lading shall directly notify customs offices or via the national single-window information system of imported and exported goods and passengers on exit or entry aboard means of transport before their entry or exit.

Article 67.Customs clearance places for means of transport

Means of transport on exit or entry must go through border gates.

Means of transport on entry must undergo customs procedures at the first entry border gate. Means of transport on exit must undergo customs procedures at the last border gate for exit.

Article 68.Routes and duration subject to customs supervision for means of transport

1. Foreign commercial means of transport on entry, exit or in transit must go along the prescribed routes, be subject to customs supervision from the time they arrive at customs operation areas, during their movement and to the time they leave the Vietnamese territory.

2. Vietnamese commercial means of transport on entry must be subject to customs supervision from the time they arrive at customs operation areas to the time when all imported goods carried by these means of transport are unloaded for import procedure completion.

Vietnamese commercial means of transport on exit must be subject to customs supervision from the time the loading of exported goods begins to the time they leave the Vietnamese territory.

3. Non-commercial means of transport on entry, exit or in transit must be subject to customs inspection and supervision when carrying out customs procedures at entry or exit border gates or other places prescribed by law.

4. When there are grounds to believe that smuggled goods are hidden on board means of transport and there are other signs of law violation, heads of customs offices where customs procedures for means of transport are carried out, heads of customs control squads may decide to temporarily postpone the departure or stop the means of transport for search. Such search must comply with law and decision issuers shall take responsibility before law for their decisions.

Article 69.Customs procedures for means of transport

1. When carrying out customs procedures for means of transport, owners and drivers of means of transport or persons authorized by owners of means of transport shall make customs declaration; submit or produce bills of lading for carrying out customs procedures; supply information and documents related to goods and items on means of transport.

Where relevant documents have satisfied requirements of the customs inspection, owners and drivers of means of transport or persons authorized by owners of means of transport are not required to fill in the customs declarations, except for baggage, imported or exported goods of people on exit or entry aboard their means of transport.

2. Time limits for declaration and submission of customs declarations and relevant documents are prescribed as follows:

a/ For means of transport in transit, immediately after their arrival at the first entry border gate and before they go through the last border gate for exit;

b/ For seagoing means of transport on entry, within 2 hours after the port authorities announce that these means of transport have arrived at the places for pilot embarkation; for seagoing means of transport on exit, within 1 hour before they exit;

c/ For air means of transport on exit or entry, immediately after their arrival at the border-gate and before carriers stop carrying out procedures for receiving exported goods and passengers on exit;

d/ For railway, land and river way means of transport on exit or entry, immediately after their arrival at the first entry border gate and before they go through the last border-gate for exit.

3. Military vehicles and other means of transport used for national defense and security purposes must go through customs procedures and be subject to customs inspection and supervision.

4. The Government shall prescribe customs procedures and customs inspection and supervision of means of transport.

Article 70.Transshipment, carriage transfer, carriage detachment, loading and unloading of goods and baggage aboard means of transport

The transshipment, carriage transfer, carriage detachment, loading and unloading of goods and baggage aboard means of transport which are subject to customs inspection and supervision may be conducted when approval of customs offices is obtained.

Goods handled through transshipment, carriage transfer and carriage detachment must have their packings, boxes and parcels kept intact.

Article 71.International transportation combined with domestic transportation, domestic transportation combined with transportation of imported and exported goods

1. Means of transport used for international transportation, if permitted by competent state agencies and satisfying customs supervision conditions prescribed by the Minister of Finance, may also be used for domestic goods transportation.

2. Means of transport used for domestic transportation, if permitted by competent state agencies and satisfying customs supervision conditions prescribed by the Minister of Finance, may also be used for transportation of imported and exported goods subject to customs supervision.

Article 72.Responsibilities of heads at airports, seaports and international railway stations

Heads of competent agencies and organizations at airports, seaports and international railway stations shall notify customs offices of arrival and departure times and stop places of seagoing ships, aircraft and international transportation trains; and time for goods loading onto and goods unloading from seagoing ships, aircrafts and international transportation trains.

Section 8

INSPECTION, SUPERVISION, TEMPORARY POSTPONEMENT OF CUSTOMS PROCEDURE CLEARANCE FOR IMPORTED AND EXPORTED GOODS UPON REQUEST FOR PROTECTION OF INTELLECTUAL PROPERTY RIGHTS

Article 73.Principles of inspection, supervision and temporary postponement of customs procedure clearance

1. Holders of intellectual property rights protected in accordance with the law on intellectual property have the right to request customs offices to apply inspection and supervision methods or temporarily stop carrying out customs procedures for imported and exported goods showing signs of intellectual property right infringement.

2. Customs offices may decide to temporarily stop carrying out customs procedures for imported or exported goods when intellectual property rights holders or legally authorized persons make written requests and show evidence of their lawful holding of intellectual property rights and evidence of infringements thereupon and have paid a deposit or produced documents on guarantee by credit institutions as security for payment of damage compensation and expenses as prescribed by law which may arise due to wrong requests for temporary postponement of customs procedure clearance.

3. Provisions on temporary postponement of customs procedure clearance for imported and exported goods showing signs of intellectual property right infringement specified in this Law are not applicable to humanitarian aid goods, personal effects, goods eligible for privileges and immunities, baggage, donations and gifts within the duty-free quota and transited goods.

Article 74.Procedures for requesting customs inspection and supervision and temporary postponement of customs procedure clearance

1. Intellectual property rights holders may directly or through legally authorized persons send their written requests to customs offices for customs inspection and supervision or temporary suspension of customs procedure clearance for imported and exported goods showing signs of intellectual property right infringement.

2. In case of request for customs inspection and supervision, the intellectual property rights holder or legally authorized person shall pay charges and fees prescribed by the law on charges and fees and provide customs offices with the following materials:

a/ Written request; power of attorney in case of authorized submission of request;

b/ Copy of protection title for industrial property rights or another material proving industrial property rights currently protected in Vietnam or copy of the certificate of registration of industrial property licensing contract; copy of the certificate of registration of copyright, copyright-related rights or rights to plant varieties or another material proving copyright, copyright-related rights or rights to plant varieties;

c/ Detailed description of intellectual property right-infringing goods, photos and characteristics for distinguishing genuine goods from intellectual property right-infringing goods;

d/ List of lawful importers or exporters of goods requiring supervision; list of persons likely to export or import intellectual property right-infringing goods.

The time limit for application of customs inspection and supervision measures for goods requiring protection of intellectual property rights is 2 years from the date the customs office accepts the request of the intellectual property rights holder. This time limit may be extended for another 2 years but must not exceed the duration of protection of the concerned intellectual property subject matter in accordance with the Law on Intellectual Property.

3. In case of requesting temporary postponement of customs procedure clearance, the intellectual property rights holder or legally authorized person shall provide the customs office with the materials specified in Clause 2 of this Article and pay a sum of money or submit documents on guarantee by a credit institution equal to 20% of the value of the goods shipment in the contract or at least VND 20 million if the value of the suspected infringing goods shipment is not identified to pay damage compensation and expenses as prescribed by law which may arise due to wrong request for temporary postponement of customs procedure clearance.

Article 75.Receipt and handling of written requests for customs inspection and supervision and temporary postponement of customs procedure clearance

1. Request-receiving places:

a/ Custom Branches shall receive written requests for temporary postponement of custom procedure clearance;

b/ The General Department of Customs shall receive written requests for customs inspection and supervision.

2. Customs offices shall notify in writing requesters of the acceptance of requests or refusal to accept requests within the following time limits:

a/ Within 20 days after receiving sufficient materials specified in Clause 2, Article 74 of this Law.

b/ Within 2 working hours after receiving sufficient materials specified in Clause 3, Article 74 of this Law.

In case of refusal to accept request, customs offices shall issue written replies, clearly stating reasons.

Article 76.Procedures for temporary postponement of customs procedure clearance

1. Procedures for temporary postponement of customs procedure clearance for requesters whose inspection and supervision requests are accepted by customs offices shall be carried out as follows:

a/ When detecting shipments which show signs of intellectual property right infringement, the customs office shall temporarily stop carrying out customs procedures and promptly notify such in writing to the requester;

b/ Within 3 working days after receiving the customs office’s notice, if the requester does not require temporary postponement of customs procedure clearance, the customs office shall continue carrying out customs procedures under regulations.

In case the requester requires temporary postponement and pays a deposit and submits a document on guarantee as specified in Clause 3, Article 74 of this Law, the customs office shall decide to temporarily stop carrying out customs procedure clearance.

2. In case intellectual property rights holders make requests for temporary postponement of customs procedure clearance for goods showing signs of intellectual property right infringement but make no written request for customs inspection and supervision, customs offices shall decide to temporarily stop carrying out customs procedure clearance if the conditions prescribed in Clause 3, Article 74 of this Law are satisfied.

3. The time limit for temporary postponement of customs procedure clearance is 10 working days from the date the customs office issues the decision. In case the requester has a plausible reason for temporary postponement, this time limit may be extended but must not exceed 20 working days, provided the requester pays an additional sum of money or submits an additional document on guarantee as specified in Clause 3, Article 74 of this Law.

4. Upon expiration of the temporary postponement duration specified in Clause 3 of this Article, if the requester for temporary postponement of customs procedure clearance initiates no civil lawsuit and the customs office decides not to handle the case according to procedures for handling of administrative violations, the customs office shall continue carrying out customs procedures for the shipment.

In case the requester for temporary postponement of customs procedure clearance withdraws the request and the customs office decides not to handle the case according to procedures for handling of administrative violations before the expiration of the temporary suspension duration, the customs office shall immediately continue carrying out customs procedures for the shipment.

5. Intellectual property rights holders or legally authorized persons shall pay to goods owners arising expenses for warehousing, loading, unloading and preservation of goods due to wrong requests for temporary postponement of customs procedure clearance.

6. Customs offices shall refund security amounts to intellectual property rights holders or legally authorized persons after the latter have fulfilled their obligation to pay arising expenses and damage compensations under decisions of customs offices or competent agencies.

7. The time limit for tax payment (if any) is counted from the date the customs office decides to continue carrying out customs procedures for the shipment.

Section 9

POST-CUSTOMS CLEARANCE INSPECTION

Article 77.Post-customs clearance inspection

1. Post-customs clearance inspection means inspection by customs offices of customs dossiers, accounting books and documents and goods-related documents and data; and post-customs clearance physical inspection when necessary and conditions permit.

Post-customs clearance inspection aims to assess the accuracy and truthfulness of documents and dossiers declared, submitted and produced by customs declarants to customs offices; and observance by customs declarants of the customs law and other laws related to the management of imported and exported goods.

2. Post-customs clearance inspection shall be carried out at customs offices or offices of customs declarants.

Offices of customs declarants include their head offices, branches, stores and goods production and preservation establishments.

3. The time limit for post-customs clearance inspection is 5 years from the date of customs declaration registration.

Article 78.Cases of post-customs clearance inspection

1. Inspection in case there are signs of violation of the customs law and other laws relevant to the management of imported and exported goods.

2. In cases other than those specified in Clause 1 of this Article, post-customs clearance inspection shall be carried out based on the application of risk management.

3. Inspection of law observance by customs declarants.

Article 79.Post-customs clearance inspection at customs offices

1. Directors of Customs Departments or heads of Customs Branches shall issue decisions on post-customs clearance inspection, request customs declarants to provide commercial invoices, bills of lading, goods purchase and sale contracts, certificates of origin of goods, payment documents, dossiers and technical documents of goods related to dossiers under inspection and explain relevant contents.

The inspection duration is determined in the inspection decision but must not exceed 5 working days.

2. A post-customs clearance inspection decision must be sent to the customs declarant within 3 working days from the date of its signing and within 5 working days before the inspection is conducted.

The customs declarant shall explain and provide dossiers and documents related to the dossier under inspection at the request of the customs office.

In the course of inspection, the customs declarant may explain and additionally provide customs dossier-related information and documents.

3. The handling of inspection results is prescribed as follows:

a/ If provided information and documents and explained contents prove that customs declaration contents are correct, the customs dossier is accepted;

b/ If failing to prove that customs declaration contents are correct or the customs declarant fails to provide dossiers and documents and give explanations according to inspection requirements, the customs office shall decide on handling in accordance with the laws on taxes and on handling of administrative violations.

4. Within 5 working days after an inspection is completed, the inspection decision issuer shall sign and send the notice of inspection results to the customs declarant.

Article 80.Post-customs clearance inspection at offices of customs declarants

1. Competence to decide on post-customs clearance inspection:

a/ The General Director of Customs and Director of the Department for Post-Customs Clearance Inspection shall decide on post-customs clearance inspection nationwide;

b/ Directors of Customs Departments shall decide on post-customs clearance inspection in localities under their management.

In case of inspection of enterprises not located in localities under their management, Customs Departments shall report to the General Department of Customs for consideration and assignment of other units to conduct inspection.

The inspection and assessment of law observance of customs declarants must comply with annual post-customs clearance inspection plans promulgated by the General Director of Customs.

2. Duration of post-customs clearance inspection:

a/ The duration of post-customs clearance inspection shall be determined in the inspection decision but must not exceed 10 working days. The inspection duration is counted from the date when inspection begins. In case the scope of inspection is large and involves complicated issues, the inspection decision issuer may extend the inspection duration once for no more than 10 working days.

b/ The post-customs clearance inspection decision must be sent to the customs declarant within 3 working days from the date of its signing and within 5 working days before the inspection is conducted, except the cases specified in Clause 1, Article 78 of this Law.

3. Order and procedures for post-customs clearance inspection:

a/ Announcing the post-customs clearance inspection decision before the inspection is conducted;

b/ Comparing declared contents with accounting books and documents, financial statements, related documents and actual conditions of imported and exported goods within the scope and content of the post-customs clearance inspection decision;

c/ Making a written record of post-customs clearance inspection within 5 working days after the inspection is concluded;

d/ Within 15 working days after the inspection is concluded, the inspection decision issuer shall sign the inspection conclusion and send it to the customs declarant. In case the inspection conclusion requires expert opinions of a competent agency, the time limit for signing the inspection conclusions is counted from the date the competent agency gives its opinions. Competent professional agencies shall give their opinions within 30 days from the date of receiving requests of customs offices;

dd/ Handling according to the competence of customs officers or transfering the case to a competent authority for handling according to inspection results.

4. If customs declarants fail to abide by inspection decisions, explain and provide dossiers and documents within the prescribed time limit to customs offices, customs offices shall base themselves on collected and verified dossiers and materials to decide on handling in accordance with the laws on taxes and handling of administrative violations or conduct specialized inspection in accordance with law.

Article 81.Tasks and powers of customs officers in post-customs clearance inspection at offices of customs declarants

1. The General Director of Customs, the Director of the Department for Post-Customs Clearance Inspection and directors of Customs Departments have the following tasks and powers:

a/ To issue inspection decisions and form inspection teams;

b/ To extend the inspection duration in case of necessity;

c/ To issue inspection conclusions; handle inspection results; to decide on handling in accordance with the laws on taxes and handling of administrative violations or propose competent persons to decide on handling in accordance with law;

d/ To settle complaints and denunciations in accordance with law.

2. Heads of inspection teams have the following tasks and powers:

a/ To organize and direct their team members to conduct inspection with contents, subjects and within time limits in inspection decisions;

b/ To request customs declarants to provide information, documents and written explanations about issues related to inspection contents, produce goods for inspection when necessary and conditions permit;

c/ To make written records of, and report to competent authorities for handling on, custom declarants’ acts of failing to abide by, obstructing or delaying the implementation of inspection decisions;

d/ To temporarily seize and seal documents and material evidence in case customs declarants show signs of dispersal and destruction of documents and material evidence related to law violations;

dd/ To make and sign written records of inspection;

e/ To report on inspection results to inspection decision issuers and be held responsible for the accuracy, truthfulness and objectiveness of their reports.

3. Inspection team members have the following tasks and powers:

a/ To perform tasks assigned by inspection team heads;

b/ To report on results of performance of their assigned tasks to inspection team heads; to be held responsible before law and inspection team heads for the accuracy, truthfulness and objectiveness of their reports;

c/ To make and sign written records of inspection as assigned by inspection team heads.

Article 82.Rights and obligations of customs declarants in post-customs clearance inspection

1. To exercise the rights and fulfill the obligations specified in Article 18 of this Law.

2. To promptly, fully and accurately provide dossiers and documents as requested and be held responsible for the accuracy and truthfulness of such dossiers and documents.

3. To refuse to provide information and documents irrelevant to inspection contents or information and documents involved in state secrets, unless otherwise provided by law.

4. To receive written inspection conclusions and request explanations about inspection conclusions; to reserve their opinions in written inspection conclusions.

5. To request inspection team heads to produce inspection decisions, customs identity cards in case of post-customs clearance inspection at head offices of customs declarants.

6. To comply with requests for post-customs clearance inspection and appoint competent persons to work with customs offices.

7. To explain related issues at the request of customs offices.

8. To sign written records of inspection.

9. To abide by handling decisions of customs offices and competent agencies.

Chapter IV

COLLECTION OF TAXES AND OTHER CHARGES ON IMPORTED AND EXPORTED GOODS

Article 83.Responsibilities of customs declarants for declaration, calculation and payment of taxes and other charges

1. To declare and calculate taxes in an accurate, truthful and complete manner and on time and be held responsible for their tax declaration and calculation.

2. To pay taxes and other charges in full and on time in accordance with the laws on taxes, charges and fees and other relevant laws.

3. To comply with decisions of customs offices on taxes and other charges in accordance with the laws on taxes, charges and fees and other relevant laws.

Article 84.Responsibilities of customs offices for collection of taxes and other charges

1. The General Department of Customs shall organize the collection of taxes and other charges on imported and exported goods; and apply measures to ensure the correct and full collection of taxes and other charges in accordance with the laws on taxes, charges and fees and other relevant laws.

2. Customs offices that carry out procedures for imported and exported goods shall, according to their functions and competence, examine the tax declaration and calculation; effect tax exemption, reduction, refund, non-collection, assessment, payment time limit prolongation,  and writing-off of arrears and late-payment fines payable by customs declarants; collect taxes and other charges and manage tax payment.

Article 85.Determination of tax rates, time of tax calculation, time limits of tax payment for imported and exported goods

The determination of tax rates for imported and exported goods shall be based on codes of goods and tax policies applicable to imported and exported goods effective at the time of tax calculation.

The time of tax calculation and time limits for tax payment for imported and exported goods shall comply with the tax laws.

Article 86.Customs value

1. Customs value is used as a basis for the calculation of import and export duties and making of statistics on imported and exported goods.

2. Customs value of exported goods means selling prices of such goods when they arrive at border gates of exportation, excluding international insurance cost and freight.

3. Customs value of imported goods means payable actual prices determined when they arrive at the first border gate of importation in compliance with Vietnamese law and treaties to which the Socialist Republic of Vietnam is a contracting party.

4. The exchange rate for tax calculation means the exchange rate between Vietnam dong and a foreign currency announced by the State Bank of Vietnam at the time of tax calculation. In case the State Bank of Vietnam fails to announce the exchange rate at the time of tax calculation, the last announced exchange rate applies.

5. The Government shall detail this Article.

Chapter V

PREVENTION AND COMBAT OF SMUGGLING AND ILLEGAL CROSS-BORDER TRANSPORTATION OF GOODS

Article 87.Tasks of customs offices in the prevention and combat of smuggling and illegal cross-border transportation of goods

1. Within the ambit of their tasks and powers, customs offices at all levels shall organize the performance of the task of preventing and combating smuggling and illegal cross-border transportation of goods.

2. Customs offices at all levels may form full-time units to perform the task of preventing and combating smuggling and illegal cross-border transportation of goods.

Article 88.Scope of responsibility to prevent and combat smuggling and illegal cross-border transportation of goods

1. Within their customs operation areas customs offices shall conduct customs inspection, supervision and control of goods and means of transport to take the initiative in preventing and combating smuggling and illegal cross-border transportation of goods.

In case agencies, organizations or individuals detect acts of smuggling or illegal cross-border transportation of goods while goods and carrying vehicles have not yet been taken out of custom operation areas, they shall immediately report such to customs offices for inspection and handling.

In case there are grounds to believe that goods are smuggled or illegally transported across the border or carrying vehicles are moving out of customs operation areas, customs offices shall continue pursuing them and notify such to police offices, border guards, marine police officers and market managers in their localities for coordination and concurrently apply measures to prevent and handle them in accordance with law. The halt and pursuit of foreign vehicles traveling in Vietnam’s sea areas comply with the Law on Sea Areas of Vietnam.

2. In case related state agencies have grounds to believe that acts of smuggling or illegal cross-border transportation of goods are committed while goods or carrying vehicles have been taken out of customs operation areas, they shall, based on their competence, inspect  and handle such acts in accordance with law. Customs offices shall coordinate with related state agencies in applying measures to prevent and combat smuggling and illegal cross-border transportation of goods.

3. For goods subject to customs supervision which are transported on routes, customs offices shall apply professional customs measures in supervision. When detecting law violations, customs offices shall assume the prime responsibility for, and coordinate with related state agencies in, inspecting and handling violations in accordance with law.

4. In internal waters, territorial waters and contiguous zones, customs offices shall coordinate with one another in conducting patrol and control activities to prevent smuggling and illegal cross-border transportation of goods, apply measures to prevent and handle violations according to their competence in internal waters and territorial waters in accordance with the Law on Sea Areas of Vietnam.

5. People’s Committees at all levels shall direct the coordination among customs offices and other related state agencies in localities in performing the task of preventing and combating smuggling and illegal cross-border transportation of goods.

6. The Government shall detail professional customs control measures and responsibility to coordinate with customs offices in preventing and combating smuggling and illegal cross-border transportation of goods.

Article 89.Competence of customs offices for the application of measures to prevent and combat smuggling and illegal cross-border transportation of goods

1. To organize forces, set up databases, apply necessary professional customs control measures, collect customs operation-related information at home and abroad so as to actively prevent and combat smuggling and illegal cross-border transportation of goods, and serve customs clearance for goods and post-customs clearance inspection; coordinate with related agencies in keeping secret providers of information on cases of smuggling and illegal cross-border transportation of goods in accordance with law.

2. To conduct customs control of goods and means of transport; to assume the prime responsibility for, and coordinate with related state agencies in, carrying out activities of preventing and combating smuggling and illegal cross-border transportation of goods within customs operation areas.

When conducting customs control of goods and means of transport in customs operation areas, customs offices may apply patrol, investigation and verification or other professional measures in accordance with this Law and the laws on handling of administrative violations, criminal procedure and organization of criminal investigations.

3. To request related agencies, organizations and individuals to provide information and materials to serve inspection, supervision and verification of acts of smuggling and illegal cross-border transportation of goods.

4. To request postal and express mail service providers to open postal parcels and goods exported or imported by mail or via express mail service for inspection when there are grounds to believe that such postal parcels and goods contain materials and items related to smuggling and illegal cross-border transportation of goods.

5. To use banners, flashlights, flares, whistles and loudspeakers; to use weapons and supporting tools in accordance with the law on management and use of weapons, explosives and supporting tools.

6. Apart from customs operation areas, customs offices shall coordinate and conduct customs control activities to prevent and combat smuggling and illegal cross-border transportation of goods in accordance with law.

Article 90.Competence of customs offices and customs officers in handling acts of smuggling and illegal cross-border transportation of goods

1. To handle administrative violations, apply preventive measures and ensure the handling of administrative violations in accordance with the law on handling of administrative violations.

In case they have grounds to believe that there are acts of smuggling or illegal cross-border transportation of goods, heads of Customs Branches, heads of control squads under Customs Departments, heads of anti-smuggling control squads and marine control flotillas under the Anti-Smuggling Investigation Department are competent to halt means of transport, temporarily hold people in custody and escort violators in accordance with the Law on Handling of Administrative Violations.

2. When detecting acts of violation of the customs law which are serious enough to be examined for penal liability, customs offices and officers competent to initiate criminal cases and lawsuits against the accused shall conduct investigation activities in compliance with the laws on criminal procedure and organization of criminal investigation.

3. When carrying out activities prescribed in this Article, customs offices and customs officers shall be held responsible before law for their decisions.

Article 91.Rights and obligations of related organizations and individuals in the prevention and combat of smuggling and illegal cross-border transportation of goods

1. In the prevention and combat of smuggling and illegal cross-border transportation of goods, related organizations and individuals have the rights:

a/ To provide information, dossiers, materials and evidence relating to cases of violation to customs offices; to request customs offices to solicit expert examination to protect their rights and lawful interests;

b/ To have their privacy and life protected and enjoy preferential treatment as provided by law when providing information, reporting or denouncing acts of smuggling or illegal cross-border transportation of goods.

2. In the prevention and combat of smuggling and illegal cross-border transportation of goods, related organizations and individuals have the obligations:

a/ Drivers and people on board vehicles shall obey orders to stop their means of transport, to be searched and produce papers, documents and materials at the request of customs officers. Vehicle operators shall provide diagrams of cargo holds and instructions or open places where goods are doubtfully hidden on vehicles for search by customs officers;

b/ Credit institutions and insurance businesses shall provide dossiers and materials related to payment and insurance transactions at the request of customs offices to serve investigation, verification and handling of acts of smuggling or illegal cross-border transportation of goods;

c/ Organizations and individuals related to imported, exported or transited goods, vehicles on entry or exit or in transit shall provide related information, dossiers and materials to serve investigation, verification and handling of acts of smuggling or illegal cross-border transportation of goods; and be present at customs offices to explain questionable issues as requested;

Article 92.Furnishing and use of technical equipment and means to serve the prevention and combat of smuggling and illegal cross-border transportation of goods

1. Customs offices and customs officers shall be furnished with and use professional technical means, weapons, supporting tools, banners, flares, flashlights, observative and screening devices, biochemical technologies, mechanical equipment, electric and electronic equipment and other devices prescribed by law to perform the task of preventing and combating smuggling and illegal cross-border transportation of goods. The furnishing and use of weapons and supporting tools comply with the law on management and use of weapons, explosives and supporting tools.

2. In case of necessity, customs offices and customs officers that directly perform the task of combating smuggling and illegal cross-border transportation of goods may request agencies, organizations and individuals to coordinate forces and provide means and information. If causing damage to provided means, customs offices shall pay compensation in accordance with law.

Chapter VI

CUSTOMS INFORMATION AND STATISTICS ON IMPORTED AND EXPORTED GOODS

Section 1

CUSTOMS INFORMATION

Article 93.Customs information

Customs information shall be collected, archived, managed and used for carrying out customs procedures; making statistics on imported and exported goods; applying the risk management in professional customs operations and post-customs clearance inspection; preventing and combating smuggling and illegal cross-border transportation of goods.

Article 94.Customs information system

1. The customs information system consists of:

a/ Database on the information system;

b/ Technical infrastructure on the information system.

2. The customs information database contains:

a/ Information on imported, exported and transited goods;

b/ Information on vehicles on exit or entry or in transit;

c/ Information on organizations and individuals involved in import or export activities, on exit or entry or in transit;

d/ Other information related to professional operations of customs offices.

3. The customs information database shall be managed in a centralized and uniform manner. The General Department of Customs shall set up, manage and develop the database and technical infrastructure of the customs information system by updating and integrating information and data of the entire customs service; connect and share information and data with the information systems of organizations and individuals outside the customs service, customs offices of other countries and international organizations in accordance with Vietnamese law and treaties to which the Socialist Republic of Vietnam is a contracting party.

Customs offices shall apply measures to keep confidential information and prevent illegal access to the customs information system.

Article 95.Collection and provision of customs information in the country

1. Customs offices shall organize the collection of information from the following sources:

a/ Professional customs operations;

b/ Ministries and related ministerial-level agencies;

c/ Organizations and individuals involved in or related to production, import and export activities, on exit or entry or in transit;

d/ Other sources of information.

2. Responsibilities and powers of customs offices in the collection and provision of customs information:

a/ To receive and provide information to customs declarants;

b/ To establish and implement the mechanism for coordination in the exchange and provision of information to functional agencies of related ministries and ministerial-level agencies;

c/ To apply measures and professional techniques to collect information;

d/ To request organizations and individuals to provide information related to import, export, exit, entry and transit activities;

dd/ To access other related sources of information.

3. Rights and responsibilities of agencies, organizations and individuals in providing customs information:

a/ Organizations and individuals may request customs offices to provide customs information related to their rights and obligations;

b/ Ministries and related ministerial-level agencies shall provide information related to import, export, exit, entry and transit activities to customs offices;

c/Organizations and individuals involved in or related to import, export, exit, entry and transit activities shall provide information to customs offices in accordance with this Law and other relevant laws.

4. The Government shall detail this Article.

Article 96.Collection of customs information abroad

1. Sources of customs information collected abroad shall include:

a/ Information provided by customs offices and other agencies of states and territories under cooperation agreements on mutual assistance in information exchange and supply;

b/ Information provided by related international organizations under treaties to which the Socialist Republic of Vietnam is a contracting party;

c/ Information provided by organizations and individuals involved in or related to the production, import and export of goods as requested by customs offices in compliance withVietnamese law and treaties to which the Socialist Republic of Vietnam is a contracting party.

2. Customs offices shall organize the collection of information abroad to serve the following activities:

a/ To identify the origin, transaction value, standards and quality of imported goods;

b/ To determine the lawfulness of documents and transactions related to imported and exported goods;

c/ To verify acts of smuggling and illegal cross-border transportation of goods or other acts violating the customs law;

d/ To verify other information related to persons involved in or related to import and export activities, on exit or entry or in transit; imported, exported and transited goods; means of transport on exit or entry or in transit.

Section 2

STATISTICS ON IMPORTED AND EXPORTED GOODS

Article 97. Making statistics on imported and exported goods

1. Making statistics on imported and exported goods is the process of collecting, processing, summarizing, analyzing, forecasting, reporting, popularizing and archiving statistical information on imported and exported goods carried out by the General Department of Customs.

2. Statistical information on imported and exported goods is a product of statistical activities, including statistical data on imported and exported goods and analyses of these statistics.

3. The General Department of Customs shall publish publications on statistics on imported and exported goods.

Article 98.Statistical reports on imported and exported goods

The General Department of Customs shall send to the Government and Ministry of Finance monthly reports on statistical information on imported and exported goods made according to the prescribed forms and reports on analysis and assessment of importation and exportation of goods.

Chapter VII

STATE MANAGEMENT OF CUSTOMS

Article 99.Contents of the state management of customs

Contents of the state management of customs include:

1. Elaborating and directing the implementation of the strategy, master plan and plans on development of Vietnam’s Customs;

2. Promulgating and organizing the implementation of legal documents on customs;

3. Guiding, implementing and disseminating the customs law;

4. Prescribing the organization and operation of customs offices;

5. Training, fostering and building the contingent of customs officers;

6. Organizing research and application of science and technology and modern customs management methods;

7. Making state statistics on customs;

8. Conducing inspection, examination, settlement of complaints and denunciations and handling of violations of the customs law;

9. Undertaking international cooperation on customs.

Article 100.Agencies in charge of the state management of customs

1. The Government performs the uniform state management of customs.

2. The Ministry of Finance is answerable to the Government for the uniform state management of customs.

3. Ministries and ministerial-level agencies shall, within the ambit of their respective tasks and powers, coordinate with the Ministry of Finance in performing the state management of customs.

4. People’s Committees at all levels shall, within the ambit of their tasks and powers, organize the implementation of the customs law in their respective localities.

Chapter VIII

IMPLEMENTATION PROVISIONS

Article 101.Amendment and supplementation of a number of articles of Law No. 78/2006/QH11 on Tax Administration which had a number of articles amended and supplemented under Law No. 21/2012/QH13

1. To amend Clause 5, Article 4 as follows:

“5. To apply the priority regime when carrying out tax procedures for imported and exported goods if taxpayers fully satisfy the conditions for application of the priority regime in accordance with the Customs Law.”

2. To amend Clause 4, Article 32 as follows:

“4. For imported and exported goods, the time limit for submission of tax declaration dossiers is prescribed by the Customs Law.”

3. To amend Clause 2, Article 34 as follows:

“2. For imported and exported goods, an additional declaration in tax declaration dossiers must comply with the Customs Law.”

4. To amend Point b, Clause 1, Article 78 as follows:

“b/ Cases of post-customs clearance inspection are specified in the Customs Law.

If detecting signs of tax evasion or fraud during the post-customs clearance inspection, the Director of the Department for Post-Customs Clearance Inspection, directors of Customs Departments and heads of post-customs clearance inspection branches are competent to decide on the application of the measures specified in Clause 4, Chapter X of this Law;”

5. To annul Point d, Clause 3, Article 77; to delete the phrase “and Point d” at Point a, Clause 1, Article 78; to delete the phrase “at offices of taxpayers under Clause 2, Article 34 of this Law” at Point a, Clause 2, Article 107.

6. To change the phrase “from the date of registration of the declaration form” at Point a, Clause 2, Article 107 to “from the date of customs clearance”.

Article 102.Amendment and supplementation of a number of articles of Law No. 15/2012/QH13 on Handling of Administrative Violations

1. To amend Clause 1, Article 122 as follows:

“1. The holding of persons in temporary custody according to administrative procedures is applied only in case of necessity to promptly prevent or stop acts of disturbing public order and inflicting injury on others or there are grounds to believe that there are acts of smuggling or illegal cross-border transportation of goods.”

2. To amend the first paragraph of Clause 1, Article 123 as follows:

Article 103.Effect

This Law takes effect on January 1, 2015.

Customs Law No. 29/2001/QH10 and Law No. 42/2005/QH11 Amending and Supplementing a Number of Articles of the Customs Law cease to be effective from the effective date of this Law.

Article 104.Detailed provisions

The Government shall detail articles and clauses of this Law as assigned.

This Law was passed on June 23,  2014, by the XIII^thNational Assembly of the Socialist Republic of Vietnam at its 7^thsession.-

Chairman of the National Assembly
NGUYEN SINH HUNG