Official Dispatch 2611/GSQL-GQ2 2020 regarding petition response

To: Ms. Ta Thi Long

(Address: Room 1201, 12th Floor, Tungshing Building, No 2 Ngo Quyen Street, Ly Thai To Ward, Hoan Kiem District, Hanoi)

On July 1, 2020, the Customs Control and Supervision Department received a petition coded PAKN: PAKN.20200304.0009 from Ms. Ta Thi Long. Regarding the issues raised in such petition, the Customs Control and Supervision Department requests Ms. Ta Thi Long to review the following regulations, and compare them with her actual activities for compliance with:

- Pursuant to Article 56 of the Ministry of Finance’s Circular No. 38/2015/TT-BTC dated March 25, 2015 (amended and supplemented under the Ministry of Finance’s Circular No. 39/2018/TT-BTC of 4/20/2018):

“Article 56. Notification of processing or manufacturing facilities, locations of raw materials, supplies, machinery, equipment and products to be exported; processing contracts and appendices thereof

1. Notification of processing or manufacturing facilities, locations of raw materials, supplies, machinery, equipment and products to be exported (hereinafter referred to as manufacturing notification)

a) Responsibilities of organizations and individuals:

a.1) Submit the manufacturing notification with information specified in form No. 20 in Appendix II to this Circular, and other documents specified in Clause 1 Article 37 of Decree No. 08/2015/ND-CP to the Customs Branch which is expected to carry out customs procedures as prescribed in Clause 1 Article 58 of this Circular (hereinafter referred to as managing customs branch) through the System. This provision also applies to export processing enterprises (EPEs).

In case of an error in the system, the individual or organization shall make manufacturing notification according to form No. 12/TB-CSSX/GSQL in Appendix V to this Circular;

a.2) In case of change in the notified information of the processing or manufacturing facility, such individual organization shall submit an additional notification to the managing customs branch according to form No. 20 in Appendix II or form No. 12/TB-CSSX/GSQL in Appendix V to this Circular within 03 working days from the day on which the change occurs;

a.3) If raw materials, supplies or products have to be stored outside the manufacturing facility, the storage location must be notified to the managing customs branch through the System according to form No. 20 in Appendix II or form No. 12/TB-CSSX/GSQL in Appendix V to this Circular before they are moved to such location;

a.4) In case of change of the managing customs branch (where the manufacturing notification has been sent), an individual or organization shall inform the previous managing customs branch and the new managing customs branch through the System or in writing, and send the manufacturing notification to the latter in accordance with Point a.1 of this Clause. Finalization reports shall be submitted to the new managing customs branch in accordance with Article 60 of this Circular;

a.5) Take responsibility before the law for the information declared in the notification of processing or manufacturing facility, locations of raw materials, supplies, machinery, equipment and products to be exported;

a.6) Receive feedbacks from the customs offices to revise the information (if required) notified on the System.

b) Responsibilities of customs offices:

b.1) Ensure that the manufacturing notification is automatically received by the System;

b.2) Within 2 working hours after the System receives the manufacturing notification, the custom office shall check and compare information in the notification with documents enclosed by the individual or organization, and follow the instructions below:

b.2.1) If the comparison result is not satisfactory or the information declared by the individual or organization is inadequate, it shall inform the individual or organization through the System for modification;

b.2.2) If the result is satisfactory, it shall inform the individual or organization of the notification acceptance through the System;

b.2.3) Inform the individual or organization if a site inspection is required according to Clause 1 Article 57 of this Circular.

b.3) Carry out an inspection at the manufacturing facility if required according to Article 39 of Decree No. 08/2015/ND-CP, which is amended and supplemented under Clause 17 Article 1 of Decree No. 59/2018/ND-CP, and Article 57 of this Circular;

b.4) Carry out an inspection at the storage location outside the manufacturing facility if there is a sign showing that the individual or organization does not store the raw materials, supplies and products at the location notified the customs office;

b.5) In case of change of the managing customs branch which received the manufacturing notification, the new managing customs branch shall follow instructions in Points b.1, b.2, b.3 and b.4 of this Clause; the previous managing customs branch shall exchange and provide every information about the individual or organization to the new managing customs branch, including the information about finalization reports of use of raw materials, supplies, machinery and equipment and exported goods; conformity with law; information about tax liabilities, unfinished customs procedures (if any) and other information obtained during process of managing the individual or organization to the time of change.

2. Procedures for notifying processing contracts and appendices thereof

a) Responsibilities of organizations and individuals:

Before exporting or importing raw materials, supplies, machinery or equipment for a processing contract and its appendices with a foreign trader, an individual or organization shall notify such processing contract and appendices to the managing customs branch, including the information specified in form No. 21 and form No. 22 in Appendix II to this Circular through the e-customs data processing system, or according to form No. 18/TBHDGC/GSQL in Appendix V to this Circular. The System shall automatically receive and generate a receipt number.

An individual or organization shall send only one notification. Additional notifications shall be submitted in case of change to the notified information. The receipt number shall be written on the box of import or export permit of the declaration of exported or imported raw materials, supplies, machinery and equipment serving execution of the processing contract and its appendices according to instructions in form No. 01 and form No. 02 in Appendix II to this Circular.

b) Responsibilities of customs offices:

The customs office shall use information in the notifications of the processing contract and its appendices on the e-customs data processing system to monitor, analyze and evaluate risks during the import of raw materials, supplies, machinery, and equipment and export of products of the individual or organization.”

Please contact the customs branch where the procedures are expected to be carried out for further instructions for any arising difficulties.

The Customs Control and Supervision Department hereby informs Ms. Ta Thi Long for implementation./.