Thông tư 128/2013/TT-BTC

Circular 128/2013/TT-BTC of September 10, 2013, on customs procedures, customs supervision and inspection; export tax, import tax, and administration of tax on exported goods and imported goods

Circular 128/2013/TT-BTC on customs procedures customs supervision and inspection đã được thay thế bởi Circular No. 38/2015/TT-BTC on customs procedures customs supervision and inspection export tax và được áp dụng kể từ ngày 01/04/2015.

Nội dung toàn văn Circular 128/2013/TT-BTC on customs procedures customs supervision and inspection


MINISTRY OF FINANCE
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SOCIALIST REPUBLIC OF VIETNAM
Independence - Freedom - Happiness
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No. 128/2013/TT-BTC

Hanoi, September 10, 2013

 

CIRCULAR

ON CUSTOMS PROCEDURES, CUSTOMS SUPERVISION AND INSPECTION; EXPORT TAX, IMPORT TAX, AND ADMINISTRATION OF TAX ON EXPORTED GOODS AND IMPORTED GOODS

Pursuant to the Law on Customs No. 29/2001/QH10 dated June 29, 2011 and the Law on the amendments to The Law on Customs No. 42/2005/QH11 dated June 14, 2005;

Pursuant to the Law on Export and import tax No. 45/2005/QH11 dated June 14, 2005;

Pursuant to the Law on Tax administration No. 78/2006/QH11 dated November 29, 2006 and the Law on the amendments to the Law on Tax administration No. 21/2012/QH13 dated November 20, 2012;

Pursuant to the Law on State budget No. 01/2002/QH11 dated December 16, 2002;

Pursuant to the Law on Value-added tax No. 13/2008/QH12 dated June 03, 2008;

Pursuant to the Law on special excise duty No. 27/2008/QH12 dated November 14, 2008;

Pursuant to the Law on Environmental protection tax No. 57/2010/QH12 dated November 15, 2010;

Pursuant to the Law on Inspection No. 56/2010/QH12 dated November 15, 2010;

Pursuant to the Government's Decree No. 16/2001/NĐ-CP dated May 02, 2001 on organization and operation of finance lease companies and the Government's Decree No. 65/2005/NĐ-CP dated May 19, 2005 on amendments to some Articles of the Decree No. 16/2001/NĐ-CP;

Pursuant to the Government's Decree No. 66/2002/NĐ-CP dated July 01, 2002 on limits on luggage of people on exit and entries, limits on tax-free gifts;

Pursuant to the Government's Decree No. 154/2005/NĐ-CP dated December 15, 2005 on customs procedures, customs supervion and inspection;

Pursuant to the Government's Decree No. 12/2006/NĐ-CP dated January 23, 2006, detailing the implementation of the Law on Trade applicable to international goods trade and the activities of agents, trading, processing, and transiting of goods with foreign partners;

Pursuant to the Government's Decree No. 23/2007/NĐ-CP dated February 12, 2007 elaborating the implementation of the Law on Commerce on goods trading and other activities related to goods trading of foreign-invested companies;

Pursuant to the Government's Decree No. 29/2008/NĐ-CP dated March 14, 2008 on industrial parks, export-processing zones and economic zones;

Pursuant to the Government's Decree No. 123/2008/NĐ-CP dated December 08, 2008 elaborating and providing guidance on the implementation of the Law on Value-added tax and the Government's Decree No. 121/2011/NĐ-CP dated December 27, 2011 on amendments to the Government's Decree No. 123/2008/NĐ-CP;

Pursuant to the Government's Decree No. 26/2009/NĐ-CP dated March 16, 2009 elaborating the implementation of a number of articles of the Law on special excise duty and the Government's Decree No. 113/2011/NĐ-CP dated December 08, 2011 on amendments to the Government's Decree No. 26/2009/NĐ-CP;

Pursuant to the Prime Minister’s Decision No. 33/2009/QĐ-TTg dated March 02, 2009 on promulgation of financial policies on border-gate economic zones;

Pursuant to the Government's Decree No. 93/2009/NĐ-CP dated October 22, 2009 on the management and use of foreign non-governmental aid;

Pursuant to the Government's Decree No. 87/2010/NĐ-CP dated August 13th 2010, detailing the implementation of a number of articles of the Law on Export and import tax;

Pursuant to the Government's Decree No. 67/2011/NĐ-CP dated August 08, 2011 elaborating and providing guidance on the implementation of the Law on Environmental protection tax and the Government's Decree No. 69/2012/NĐ-CP dated September 14, 2012 on amendments to Clause 3 Article 2 of the Government's Decree No. 67/2011/NĐ-CP;

Pursuant to the Government's Decree No. 07/2012/NĐ-CP dated February 09, 2012 on the agencies appointed to carry out specialized inspections;

Pursuant to the Government's Decree No. 83/2013/NĐ-CP dated July 22, 2013 elaborating the implementation of a number of articles of the Law on Tax administration and the Law on the amendments to the Law on Tax administration;

Pursuant to the Government's Decree No. 118/2008/NĐ-CP dated November 27, 2008, defining the functions, tasks, powers and organizational structure of the Ministry of Finance.

The Minister of Finance promulgates a Circular on customs procedures, customs supervion and inspection, export tax, importax and administration of tax on exported goods and imported goods:

Part I

GENERAL GUIDELINES

Article 1. Scope of regulation

This Circular specifies the customs procedures, customs supervion and inspection of exported goods, imported goods and goods in transit; exported, imported vehicles and vehicles in transit, export tax, import tax, and administration of tax on exported goods and imported goods.

Article 2. Goods not subject to export tax and import tax

The goods specified in Article 2 of the Government's Decree No. 87/2010/NĐ-CP dated August 13, 2010, detailing the implementation of a number of articles of the Law on Export and import tax are not subject to export tax and import tax.

Article 3. Rules for carrying out customs procedures, customs supervision, customs inspection, and tax administration 

1. The customs procedures, customs supervion, customs inspection, and tax administration shall comply with Article 3 of the Government's Decree No. 154/2005/NĐ-CP dated December 15, 2005 on customs procedures, customs supervion and customs inspection; Article 4 of the Law on Tax administration, which is amended in Clause 1 Article 1 of the Law on the amendments to the Law on Tax administration No. 21/2012/QH13 dated November 20, 2012.

2. Customs authorities shall manage risks to customs procedures, customs inspection, customs supervion, and tax administration of exported/imported goods, exported/imported vehicles and vehicles in transit in accordance with law.

Article 4. Post-customs clearance inspections

Customs dossiers, imported and exported goods that are granted customs clearance are the objects of post-customs clearance inspections according to Article 32 of the Law on Customs No. 42/2005/QH11, Chapter X of the Law on Tax administration No. 78/2006/QH10, Clause 24 Article 1 of the Law on the amendments to the Law on Tax administration No. 21/2012/QH13, the Decree No. 83/2013/NĐ-CP, Chapter VI of the Decree No. 154/2005/NĐ-CP and part VI of this Circular.

Article 5. Rights and obligations of declarants, taxpayers, responsibilities and entitlements of customs authorities and customs officers

1. Declarants and taxpayers shall exercise their rights and fulfill their duties specified in Article 23 of the Law on Customs; Article 6, Article 7 and Article 30 of the Law on Tax administration, which are amended in Clause 3, Clause 4 and Clause 7 Article 1 of the Law on the amendments to the Law on Tax administration No. 21/2012/QH13; Article 56 of the Decree No. 154/2005/NĐ-CP, and Article 5 of the Decree No. 83/2013/NĐ-CP.

2. The restructured companies shall inherit the rights and fullfill the tax obligation in accordance with Article 55 of the Law on Tax administration. In particular:

a) Converted companies shall inherit the obligations and entitlements pertaining to taxation, incentives pertaining to customs procedures and export tax payment procedure of the old companies.

b) The companies being amalgamated, merged, divided or split shall apply the 275-day tax payment deadline to raw materials and supplies (hereinafter referred to as raw materials) imported for producing exports according to Article 38 of the Decree No. 83/2013/NĐ-CP and Clause 1 Article 20 of this Circular when:

b.1) Both transferor and transferee companies meet the conditions.

b.2) The new companies that are established from the divided company that meets the conditons

c) If the company amalgamated, merged, split, divided falls into other cases, the Director of the Customs Department of the province or city where its head office is situated shall decide the application of the 275-day tax payment deadline according to Article 38 of the Decree No. 83/2013/NĐ-CP and Clause 1 Article 20 of this Circular.

3. The declarant, the taxpayer shall certify, append signatures and seals on the documents in the customs dossier, supplementary declaration, liquidation dossier, application for registration of tax-free goods, tax settlement dossier, application for tax exemption, tax reduction, tax refund, tax cancellation, application for settlement of tax, fines for late payment, overpaid tax, application for tax deferral, application for tax payment in instalments, application for prior determination of HS codes, application for prior determination of customs value, application for prior certification of goods origins, application for certification of tax obligation fulfillment, application for writing off tax debts, late payment interest, fines; the papers that are photocopies, other documents issued by foreigners in the form of emails, fax, telex, etc. that are submitted to the customs authority as guided in this Circular, and take responsibility before the law of the accuracy, truthfulness, and legitimacy of such documents.  If the photocopy has multiple pages, the declarant or the taxpayer shall certify, append signatures and seals on the first page and append overlapping seals on every page.

The documents that are not written in Vietnamese or English must be translated into Vietnamese, and the declarant shall be responsibility for the accuracy of such translation.

4. The customs authority and customs officers shall exercise the rights and discharge the responsibility specified in Article 27 of the Law on Customs; Article 8 and Article 9 of the Law on Tax administration, which are amended in Clause 5 and Clause 6 of the Law on the amendments to the Law on Tax administration No. 21/2012/QH13; Article 57 of the Decree No. 154/2005/NĐ-CP.

5. The customs authority may consider approving the physical verification and granting customs clearance after office hours based on prior written (or faxed) registration of the declarant and the condition of the customs authority. If the office hours are over during a physical verification, the verification shall continue without the written request of the declarant.

6. Cooperation between the customs authority and the declarant or taxpayer.

a) The customs authority shall provide guidance on the customs procedures, provide information, documents, disclose the customs procedures and taxation procedure for the declarant or taxpayer to comply with legislation on customs, taxations, exercise their rights and discharge their responsibility in accordance with law.

b) The declarant or taxpayers shall responsively provide the customs authority with information about goods and vehicles exported, imported, in transit, and the violations of customs law in order to ensure healthy competition.

c) The customs authority and the declarant or taxpayer may cooperate or exchange information via a memorandum in order to ensure the fulfillment of obligations and responsibilities of both parties.

Part II

CUSTOMS PROCEDURES, CUSTOMS SUPERVISION, CUSTOMS INSPECTION, AND ADMINISTRATION OF TAX ON COMMERCIAL EXPORTS AND IMPORTS 

Chapter I

GENERAL GUIDANCE ON CUSTOMS PROCEDURES AND TAX ADMINISTRATION

Article 6. Commercial exports and imports

Commercial exports and imports include:

1. Goods exported and imported under sale contracts;

2. Goods temporarily imported for re-export (hereinafter referred to as temporarily imported goods);

3. Goods in transit;

4. Goods exported or imported as raw materials for export production;

5. Goods exported or imported to execute processing contracts with foreign traders;

6. Goods exported or imported to serve project execution;

7. Goods exported or imported across the border under regulations of the Prime Minister on management of border trading with bordering countries;

8. Commercial exports and imports of organizations and individuals that are not traders;

9. Exported goods and imported goods of export processing companies;

10. Goods moved in and out of tax-suspension warehouse;

11. Goods that are temporarily imported or temporarily exported for exhibition;

12. Machinery and equipment for making moulds or models that are temporarily imported or temporarily exported to serve construction, execution of projects, testing, research.

Article 7. Prior determination of HS codes of exported goods and imported goods (hereinafter referred to as prior determination of HS codes)

1. Prior determination of HS codes of exported goods and imported goods shall be carried out before the customs procedure is initiated at the request of the applicant.

2. The application for prior determination of HS codes consists of:

a) The written request for prior determination of HS codes (the form No. 01/XĐTMS/2013 Appendix III to this Circular): 01 original copy;

b) The contract with the foreign party to sell the goods being applied for prior determination of HS codes: 01 photocopy;  

c) Technical document describing in details the composition, properties, structure, features, and operation of the goods: 01 original copy;

d) The catalogue or image of the goods: 01 photocopy;

dd) Goods samples if requested by the customs authority;

e) The manifest of documents in the application for prior determination of HS codes: 01 original copy.

3. Procedure for prior determination of HS codes:

a) The applicant for prior determination of HS codes shall:

a.1) Complete the form of application for prior determination of HS codes (the form No. 01/XĐTMS/2013 in Appendix III to this Circular)

a.2) Submit the sufficient application for prior determination of HS codes specified in Clause 2 of this Article to the Customs Department of the province or city where customs procedures are follow at least 90 days before the date of export or import;

a.3) Provide information and documents to clarify the application for prior determination of HS codes to the Customs Department of the province (hereinafter referred to as Customs Department) or the General Department of Customs at their request;

a.4) Notice the Customs Department within 10 days if any change in the goods is made, specifying the reasons and date of such change.

a.5) Request the General Department of Customs to grant an extension of the notification of result of prior determination of HS codes when it expires, provided the information, documents, goods samples and laws related to prior determination of HS codes are not changed.

b) The customs authority:

Based on the law, database about goods classification, tax imposed by the customs authority, and the application for prior determination of HS codes, the customs authority shall:  

b.1) The Customs Department shall check the application and:

b.1.1) Send the applicant a written notification of refusal of prior determination of HS codes within 05 working days from the day on which the application is received if the sale contract is not directly executed by the applicant;

b.1.2) Request the applicant to provide additional information, evidence, or documents within 05 working days from the day on which the application is received if the sale contract is directly executed by the applicant but the application for prior determination of HS codes or information in the application form is not sufficient;

b.1.3) If the sale contract is directly executed by the applicant and the application is sufficient, within 05 working days the Customs Department shall send the General Department of Customs the suggested HS codes of the goods, the reasons, the basis and the application for prior determination of HS codes submitted by the applicant.

b.1.4) While considering the suggested HS codes of the goods, if the information in the documents is consistent but the analysis or verification of goods is necessary for determination of goods characteristics, the Customs Department shall send a request the provision of goods samples in writing. The sample shall be sent for analysis or verification in accordance with Clause 8 and Clause 9 Article 17 of this Circular.

Within 05 working days from the day on which the analysis or verification result is given, the Customs Department shall send the General Department of Customs the suggested HS codes, the reasons, and the application for prior determination of HS codes submitted by the applicant together with the notice of verification or analysis results.

The application and result shall be updated on the database about goods application and taxation of the customs authority.

b.2) The General Department of Customs shall check the application and suggestion of the Customs Department, then:

b.2.1) The Director of the General Department of Customs shall send a written notification of the result of prior determination of HS codes (the form No. 02/TB-XĐTMS/2013 in Appendix III to this Circular) within 25 working days from the day on which the sufficient documents sent by the Customs Department is received (for usual goods) or within 90 working days from the day on which sufficient documents are received (if the goods need analyzing, certifying, or are complicated). The written notification of the result of prior determination of HS codes (hereinafter referred to as notification of HS codes)shall be sent to the applicant, the Customs Department, updated on the database of the customs authority, and posted on the website of the General Department of Customs;

b.2.2) If the information or basis for prior determination of HS codes is not sufficient, within 05 days from the day on which sufficient documents sent by the Customs Department are received, the General Department of Customs shall request the applicant in writing to provide additional information or documents.

The time limit for processing the application begins when the General Department of Customs receives sufficient information and documents from the applicant.

b.2.3) If verification must be carried out by the foreign authority, the time limit for verification shall comply with the agreement signed with the foreign party. The time limit for processing the application begins when the General Department of Customs receives the verification result given by the foreign authority.

4. Validity of the notification of HS codes:

a) The notification of HS codes is not effective if the actual goods being exported or imported are not consistent with the goods stated in the application.

b) The notification of HS codes is valid for no more than 03 year from the day on which it is signed by the Director of the General Department of Customs.

c) After the 03-year period, if the information, documents, goods samples, and basis for issuing the notification of HS codes are not changed, the General Department of Customs shall consider granting an extension of the notification of HS codes at the request of the applicant.

d) The Director of the General Department of Customs shall amend or replace the notification of HS codes (the form No. 03/TT-XĐTMS/2013 in Appendix III to this Circular) if the notification is found improper. The amendment or replacement of the notification of HS codes takes effect from the day on which it is signed.

dd) The notification of HS codes expires when the law being the basis for issuing the notification of HS codes is amended or superseded. The expiration date is the day on which the amendment or replacement of law being the basis for issuing the notification of HS codes takes effect.

e) The Director of the General Department of Customs shall invalidate the notification of HS codes if documents in the application for prior determination of HS codes are found inaccurate or untruthful.

5. The notification of HS codes is the basis for stating HS codes on the customs declaration and shall be submitted together with the customs dossier (01 photocopy) when following customs procedures.  

6.  The applicant shall send a petition to the Ministry of Finance if the applicant does not concur with the decision made by the Director of the General Department of Customs.

Article 8. Prior determination of value of exported goods and imported goods (hereinafter referred to as prior determination of value)

1. Conditions for prior determination of value

a) The method for determining the taxable prices, additions, deductions of exported goods and imported goods shall be determined in advance if the applicant that requests the prior determination of value has not exported or imported the exact same goods.

b) Apart from satisfying the conditions in Point a of this Clause, the applicant for prior certification of prices must:

b.1) Have engaged in export and import for at least 365 days up to the day on which the application for prior determination of value is submitted. Within the 365-day period, the application must:

b.1.1) Not be present in the list of entities penalized for smuggling across the border made by the customs authority;

b.1.2) Not be present in the list of entities penalized for tax evasion or tax fraud pertaining to export and import made by customs authority;

b.2) Have made payment via bank by opening L/C for all exported or imported goods under the sale contract that, which are applied for prior determination of value.

b.3) Deliver goods under the sale contract all at once.

2. The application for prior determination of value:

a) The application for prior certification of taxable value consists of:

a.1) 01 original copy of the written request for prior determination of value (the form No. 04XĐTMS/2013 Appendix III to this Circular);

a.2) 01 photocopy of the sale contract that is directly executed by the applicant according to Clause 1 Article 2 of the Circular No. 205/2010/TT-BTC dated October 15, 2010 of the Ministry of Finance;

a.3) 01 photocopy of every technical documents, image or catalogue;

a.4) 01 photocopy of the every document appropriate for the application for prior determination of value, such as:

a.4.1) For imported goods:

- The documents proving that special relationships do not affect the value;

- Documents related to the amounts paid by the buyers that are not included in purchase prices on the invoice;

- Documents related to the additions

- Documents related to the deductions;

- Other documents related to the goods applied for prior determination of value (if any).

a.4.2) For exported goods:

- Relevant documents when the actual sale prices that are not FOB or DAF prices at the checkpoint of export;

- Other documents related to the goods applied for prior determination of value (if any).

a.5) 01 original copy of every document.

b) Apart from the documents mentioned in Point a of this Clause, the application for prior certification of prices must contain 01 photocopy of every receipt of payment via bank by opening L/C of all goods under the sale contract.

3. Procedure for prior determination of value

a) The applicant shall:

a.1) Fill the application form for prior determination of value (the form No. 04/XĐTTG/2013 in Appendix III to this Circular);

a.2)  Submit the sufficient application for prior determination of value as prescribed in Clause 2 of this Article to the Customs Department where they intend to follow the customs procedures at least 90 days before the export or import;

a.3) Provide documents and discuss with the Customs Department or the General Department of Customs at their request in order to clarify the request for prior determination of value.

a.4) Send a written notification to the Customs Department within 10 days from the day on which a change to the goods stated in the application submitted to the customs authority is made, specifying the change, reasons, and date of change.

a.5) Request the General Department of Customs to grant an extension of the notification of result of prior determination of value when it expires, provided the information, documents, and laws being the basis for the issuance of the notification are not changed.

b) For the customs authority:

Based on the laws, database about values of the customs authority, and the application for prior determination of value, the customs authority shall:

b.1) The Customs Department shall check the application and:

b.1.1) If the conditions for prior determination of value specified in Clause 1 of this Article are not satisfied, or the sale contract is not directly executed by the applicant, the Customs Department shall send the applicant a written notification of refusal of prior determination of value within 05 working days from the day on which the application is received;

b.1.2) If the conditions for prior determination of value mentioned in Clause 1 of this Article are satisfied, the sale contract is directly executed by the applicant, but the application or information in the application is not sufficient, the Customs Department shall send request the applicant in writing to provide additional information, evidence and documents within 06 working days from the day on which the application is received;

b.1.3) If the conditions for prior determination of value specified in Clause 1 of this Article are satisfied, or the sale contract is directly executed by the applicant, and the application is sufficient, the Customs Department shall submit a written request to the General Department of Customs for consideration together with the whole application for prior determination of value. The written request sent to the General Department of Customs must specify the suggestions and the basis for such suggestions.

The documents and result shall be updated on the value database of the customs authority.

b.2) The General Department of Customs shall check the application and suggestion of the Customs Department, then:

b.2.1) The Director of the General Department of Customs shall issue a notification of result of prior determination of value (the form No. 05/TB-XĐTTG/2013 in Appendix III to this Circular) within 25 working days from the day on which the all documents are sent by Customs Department are received (in an ordinary case) or within 90 working days from the day on which all documents are received (if the case in complicated and needs verifying).  The notification of result of prior determination of value (hereinafter referred to as notification of value) shall be sent to the applicant, the Customs Department, updated on the database of the customs authority, and posted on the website of the General Department of Customs.

b.2.2) While processing the application for prior determination of value, if information or documents in the application must be clarify, the General Department of Customs shall request the applicant to participate in a consultation. If the basis or information is inadequate, within 05 working days from the day on which sufficient documents are received from the Customs Department, the General Department of Customs shall request the applicant in writing to provide additional information or documents.

The time limit for processing the application for prior determination of value begins when the General Department of Customs receives sufficient information and documents provided by the applicant.

b.2.3) If verification must be carried out by the foreign authority, the time limit for verification shall comply with the agreement signed with the foreign party. The time limit for processing the application for prior determination of value begins when the General Department of Customs receives the verification result.

4. The validity of the notification of value

a) The notification of result of prior determination of value is not effective if the actual goods being exported or imported are not consistent with the goods stated in the application, or the application for prior determination of value is changed.

b) Validity of the notification of value:

b.1) For prior certification of method for taxable value determination: the notification of value is valid for no more than 03 years from the day on which it is signed by Director of the General Department of Customs.

b.2) For prior certification of prices: the notification of value is valid for the shipments that need prior certification of prices.

c) When the notification of value expires, Director of the General Department of Customs shall consider granting an extension of the notification at the request of the applicant if the information, documents and basis for issuing the notification are not changed.

d) The Director of the General Department of Customs shall amends or supersedes the notification of value in writing (the form No. 06/TT-XĐTTG/2013 in Appendix III to this Circular) when the notification is found improper. The amendment or replacement of the notification of value takes effect on its issuance date.

dd) The notification of value expires when the laws being the basis for its issuance are changed. The expiration date is the date on which the amendment of the law being the basis for issuing the notification of value takes effect.

e) The Director of the General Department of Customs shall annul the notification of value in writing if the application is found inaccurate or untruthful.

5. The notification of value is the basis for making the taxable value declaration, and submitted together with the customs dossier (01 photocopy) when following customs procedures.

6. The applicant shall send a petition to the Ministry of Finance if the applicant does not concur with the decision made by the Director of the General Department of Customs.

Article 9. Prior certification of origins

1. The prior certification of origins is applicable to imported goods.

2. An application for prior certification of origins consists of:

a) 01 original copy of the written request for prior certification of origins (the form No. 07/XĐXX/2013 in Appendix III to this Circular);

b) 01 original copy of manifest of raw materials used for the manufactures of goods including the information such as names, codes of goods, origins of raw materials, composition of the products, CIF prices or equivalent prices of raw materials based on the information provided by the manufacturer or exporter;

c) 01 photocopy of the description of the production process or the certificate of composition analysis issued by the manufacturer;

d) The catalogue or image of the goods: 01 photocopy;

dd) Goods samples if requested by the General Department of Customs;

3. Procedure for prior certification of origins:

a) The applicant for prior certification of origins shall:

a) The written request for prior certification of origins (the form No. 07/XĐXX/2013 in Appendix III to this Circular).

a.2) Submit the application for prior certification of origins specified in Clause 2 of this Article to the Customs Department where customs procedures are follow at least 90 days before the date of import;

a.3) Provide  additional information and documents to clarify the application for prior certification of origins to the Customs Department or the General Department of Customs at their request;

a.4) Send a written notification to the Customs Department or the General Department of Customs within 10 days if any change to the application for prior certification of origins is made, specifying the date of change.

b) The customs authority:

Based on the law, database about goods classification, tax imposed by the customs authority, and the application for prior certification of origins, the customs authority shall:

b.1) The Customs Department shall check the application and:

b.1.1) If the application or information in the application for prior certification of origins is not sufficient, the Customs Department shall request to applicant in writing to provide additional information, evidence and documents within 05 working days from the day on which the app is received;

b.1.2) If the application is sufficient, the Customs Department shall send the General Department of Customs a written request for consideration together with the application for prior certification of origins within 05 working days from the day on which the sufficient application is received;

b.1.3) While following the customs procedure for import, the Customs Department shall check and compare information on request for prior certification of origins to the actual imported goods. If the imported goods are not consistent with the notification of prior certification of origins, the Customs Department shall request the General Department of Customs to annuls the notification of prior certification of origins as guided in Point b Clause 4 of this Article, and inspect the origins as prescribed in Point e Clause 2 Article 16 of this Circular.

b.2) The General Department of Customs shall check the application and suggestion of the Customs Department, then:

b.2.1) The Director of the General Department of Customs shall issue a notification of prior certification of origins (the form No. 08/TBXĐXX/2013 in Appendix III to this Circular) within 25 working days from the day on which the sufficient documents sent by the Customs Department are received (for usual goods) or within 90 working days from the day on which sufficient documents are received (if verification of information about the manufacturer, the market, origins of raw materials, geographical characteristics, technology, result of verification, analysis, classification is necessary). The notification of prior certification of origins shall be sent to the applicant, the Customs Department, updated on the database of the customs authority, and posted on the website of the General Department of Customs;

b.2.1) If the information for prior certification of origins is not sufficient, or goods samples are necessary for prior certification of origins, the General Department of Customs shall request the applicant in writing to provide additional information, documents or goods samples within 05 working days from the day on which the application is received from the Customs Department.

The time limit for processing the application for prior certification of origins begins when the General Department of Customs receives additional documents.

b.2.3) If verification must be carried out by the foreign authority, the time limit for processing the application for prior certification of origins shall comply with relevant International Agreements;

b.2.4) If the applicant for prior certification of origins fails to provide sufficient information, the General Department of Customs shall reject the prior certification of origins and send a written notification (the form No. 09/CDHL-XĐXX/2013 in Appendix III to this Circular).

4. Validity of the notification of prior certification of origins:

b) The notification of prior certification of origins of imported goods is valid for no more than 03 year from the day on which it is signed by the Director of the General Department of Customs, and only be used for the goods, manufacturer and exporter in the application.

b) Annulment of the notification of prior certification of origins:

The Director of the General Department of Customs shall annul the notification of prior certification of origins in one of the cases below:

b.1) Relevant legislative documents are amended.

b.2) The criteria for assessing origins of goods are changed.

b.3) The prior certification of origins and actual origins of goods are inconsistent.

b.4)  The applicant provides false information.

5. Using the notification of prior certification of origins:

b) The notification prior certification of origins is used for declaring origins and following customs procedures.

b) The notification of prior certification of origins is not used for claiming preferential tax rates.

The prior certification of origins and application of preferential tax rates for goods imported under Free Trade Agreements to which Vietnam is a signatory shall comply with such Agreements.

6. The applicant shall send a petition to the Ministry of Finance if the applicant does not concur with the notification of prior certification of origins issued by the Director of the General Department of Customs.

Article 10. Checking goods before making customs declaration

The checking of goods before making the customs declaration according to Point b Clause 1 Article 23 of the Law on Customs shall be carried out as follows:

1. The goods owner shall submit send an application for checking goods before initiating the customs procedures to the goods holder, and notify the Sub-department of customs for supervision.

2. The goods checking must be approved by the goods holder and under the supervision of the customs authority.

3. Before checking the goods, the goods holder shall make a certification, which is confirmed by the goods holder, goods owner, and supervising customs officer. Each party shall keep 01 copy.

4. After the goods are checked by the goods owner, the customs shall seal the goods. If goods cannot be sealed, the certification mentioned in Clause 3 of this Article must specify the condition of goods and that the goods holder is responsible for protecting the status quo of goods.

Article 11. Customs declaration

1. The customs declaration (including tax statement during customs procedures) shall be made in accordance with the form provided by the Ministry of Finance.

2. The goods that are exported or imported in different forms must be stated on separate corresponding declarations.

3. The customs declaration of imported goods shall be made before or within 30 days from the day on which the goods arrive at the border checkpoint. The arrival date of goods at the border checkpoint is the date on stamp of the customs authority appended on the manifest of imported goods at the unloading port in the dossier of imported vehicle (by sea, by air, by rail) or the date written in the declaration of vehicles moving across the border, or the vehicle logbook (by river, by road).

4. Customs declaration of goods under multiple contracts/orders

a) Imported goods that have multiple contracts/orders, one or multiple invoices of the same seller, the same delivery conditions, the same method of payment, are delivered at the same time, have the same bill of lading shall be stated in the same customs declaration.

b) Imported goods that have multiple contracts/orders, the same delivery conditions, method of payment, are sold to the same customer and delivered at the same time shall be stated in the same customs declaration.

c) When making the customs declaration, the declarant shall write the numbers and dates of contracts/orders on the customs declaration. If the declaration sheet is not spacious enough to list every one, a manifest shall be enclosed with the customs declaration. Only the total amount goods of all contracts/order shall be written on the declaration.

5. For the goods that are imported in multiple forms, have the same bill of lading, invoice, stated on separate declarations corresponding to each form, the original documents shall be enclosed to a customs declaration; the documents enclosed with other customs declarations are photocopies. The photocopies shall specify ”Original copies are attached to the customs declaration No. … dated … “

6. If exported and imported goods eligible for tax reduction and/or preferential tax rates, the original tax rate before reduction, the reduction and/or preferential tax rate, and the documents on these must be specified.

7. Responsibility of the declarant, the tax payer for making customs declaration and using goods in accordance with the declaration:

a) Fill the declaration accurately, present and submit all necessary documents prescribed by law, provide the criteria for considering tax calculation, tax exemption, tax reduction, tax refund, cancellation of export tax, import tax, excise tax, VAT, environmental protection tax (except for the tax on goods that are not subject to tax);

a) Calculate the tax payable, exempted, considered, reduced, refunded, or cancelled, and take responsibility before the law for such calculation; state the tax payable on a remittance bill for every tax of the customs declaration.

8. If exported goods and imported goods that are not subject to export tax, import tax, excise tax, VAT, environmental protection tax, or eligible for exemption of export tax, import tax, preferential tax rates, incentives, tariff quota, but the subject of tax exemption, the purpose of tax exemption, preferential tax rates or incentives are changed, or the goods are raw materials imported for producing exports, or the goods temporarily imported for re-export are sold to the domestic market:

a) The taxpayer shall issue a notification of the quantity, quality, types, numbers, values, origins of the goods that are used for other purposes or sold to the domestic market;

b) Within 10 days from the day on which the request for permission for change of purpose or domestic sale is received, the customs authority shall make a written response;

After the customs authority approves the change of use purpose or domestic sale, the taxpayer shall declare and pay tax in accordance with Clause 1 Article 96 of this Circular on the new customs declaration.

c) If the taxpayer is found changing the use purpose or sell goods to the domestic market without declaring or paying tax, the foreign shall pay the tax payable according to the declaration of imported goods and carry fines. The taxpayer shall pay the tax arrears, late payment interest and fines (if any) under the decision made by the customs authority.

9. The conditions and procedure for changing the use purpose or selling the goods mentioned in Clause 8 of this Article to the domestic market shall comply with Article 39, Article 41, Article 43, Article 52, Article 53, and Article 55 of this Circular.

Article 12. Customs dossier

1. While following the customs procedure for exporting goods, the declarant shall submit the customs dossier to the customs, including:

a) 02 original copies of the customs declaration;

b) 01 photocopy of the sale contract, export entrustment contract (if export is entrusted) of the exported goods subject to export tax, exported goods eligible for tax refund or tax cancellation;

c) 01 photocopy of the export invoice of exported goods that incur export tax;

d) 01 photocopy of the manifest of goods if the goods consist of multiple categories or inconsistently packaged;

dd) In the cases below, the declarant might need to submit:

dd.1) The export license if the goods must have the export license as prescribed by law: 01 original copy if goods are export all at once, or 01 photocopy enclosed with the original for comparison if goods are exported several times, and make a monitoring slip.

dd.2) Other documents requested by relevant Ministries and agencies;

dd.3) If goods are eligible for exemption of export tax, the documents below are necessary apart from the documents mentioned above:

dd.3.1) The notice of successful bid or contractor appointment enclosed with the contract to supply goods, specifying the successful bid or sale prices exclusive of export tax (if the bidder wins the bid for the export contract); the entrusted import contract specifying the sale prices exclusive of export tax (if the export is entrusted): 01 photocopy. The original copy shall be presented in the first export at the Sub-department of Customs where the procedure is carried out for comparison.

dd.3.2) Other papers proving that the exported goods are eligible for tax exemption: submit 01 photocopy and present the original copy;

dd.4) The notification of prior determination of HS codes or customs value (if any): 01 photocopy.

2. While following the customs procedure for importing, the declarant shall submit the customs dossier to the customs, including:

a) 02 original copies of the customs declaration;

b) 01 photocopy of the sale contract;

c) 01 photocopy of the commercial invoice;

d) 01 photocopy of the manifest of goods if the goods consist of multiple categories or inconsistently packaged;

dd) 01 photocopy of the bill of lading or other equivalent transport documents as prescribed by law (except for the goods mentioned in Clause 7 Article 6 of this Circular, the goods traded between free trade zones and the domestic area, the imported goods in luggage).

For goods imported by international post, if the bill of lading is not available, the declarant shall write the number of the package on the customs declaration, or submit the list of packages made by the post office.

If goods imported for petroleum exploration and extraction are loaded onto service ships (not commercial ships), the cargo manifest shall be submitted instead of the bill of lading.

e) In the cases below, the declarant shall submit or present:

e.1) 01 original copy of the certificate of inspection registration or the notice of exemption from inspection or the notice of inspection result of an organization appointed to carry out quality inspection, the food safety authority, or quarantine authority if the imported goods are in the list of goods that need undergoing food safety inspection or quarantine;

e.2) 01 original copy of the certificate of verification if the goods are granted customs clearance based on verification result;

e.3) 02 original copies of the declaration of imported goods value if the declaration of value is compulsory according to the Decision No. 30/2008/QĐ-BTC dated May 21, 2008 of the Minister of Finance on the issuance of declarations of dutiable values of exported goods and imported goods and guidance on declaration, the Circular No. 182/2012/TT-BTC dated October 25, 2012 of the Minister of Finance on amendments to the Circular No. 30/2008/QĐ-BTC;

e.4) The import license if the goods must have an import license; the license to import under tariff quota as prescribed by law: 01 original copy if goods are imported all at once, or photocopies enclosed with the original for comparison when goods are imported many times, and make a monitoring slip;

e.5) 01 original copy of the Certificate of Origin (C/O) in the following cases:

e.5.1) The goods made in a country or group of countries that concluded agreements on preferential tax rates with Vietnam (except for the imported goods of which the FOB price does not exceed 200 USD) in accordance with Vietnam’s law and the International Agreements to which Vietnam is a signatory, if the importer wishes to enjoy such incentives;

e.5.2) The goods that are imported from the countries that pose threats to the social safety, health of the people or environmental hygiene, and need controlling;

e.5.3) The goods are imported from the countries that apply anti-dumping tax, anti-subsidy tax, anti-discrimination tax, protection tax, or tax rates under tariff quota;

e.5.1) The import goods must comply with the regulations on import management in accordance with Vietnam’s law or bilateral or multilateral International Agreements to which Vietnam is a signatory.

The C/O submitted to the customs must not be changed or replaced, unless it is changed or replaced by a competent organization by a deadline prescribed by law.

e.6) The goods eligible for import tax exemption mentioned in Article 100 of this Circular must have:

 e.6.1) The list of tax-free goods enclosed with the monitoring slip registered with the customs if the list registration is compulsory according to Clause 1 Article 101 of this Circular: 01 photocopy enclosed with the original for comparison;

e.6.2) The notice of successful bid or contractor appointment enclosed with the sale contract or goods supply contract that specifies the successful bid or sale price exclusive of import tax (if the applicant wins the bid for the import contract); the import entrustment contract, the service contract that specify sale prices exclusive of import tax (if the import or service provision is entrusted); the finance lease contract (if the finance lease company imports machinery, equipment or vehicles to serve the project eligible for finance lease incentives): 01 photocopy. The original copy shall be presented in the first import at the sub-department of customs for comparison;

e.6.3) 01 photocopy of the paper related to the transfer of goods eligible for tax exemption if the goods of an entity eligible for tax exemption are transferred to another entity eligible for tax exemption;

e.6.4) 01 photocopy of the certificate of eligibility to open duty-free shop if the goods are imported and sold at a duty-free shop;

e.6.5) Other papers proving the eligibility for tax exemption of the imported goods;

e.7) 01 original copy of the declaration of non-refundable aid of a finance authority according to the Circular No. 225/2010/TT-BTC dated December 31, 2010 of the Ministry of Finance on the state management of foreign non-refundable aid classified as government revenues if the goods are non-refundable aid that is not subject to import tax, excise tax, VAT;

If the owner or main contractor of the project funded by non-refundable ODA is not subject to export tax, import tax, VAT, excise tax according to legislation on taxation, it is compulsory to have the notice of successful bid or contractor appointment together with the goods supply contract that specifies the successful bid or sale prices exclusive of import tax, VAT, excise duty (if the applicant wins the bid for the import contract); the import entrustment contract that specifies the sale prices exclusive of import tax, VAT, excise duty: 01 photocopy enclosed with the original for comparison.

e.8) The notice of successful bids or contractor appointment (specifying the contents) enclosed with the contract to sell goods to export processing companies in accordance with the bidding result or goods supply contract, which specifies the successful bid or sale prices exclusive of import tax, excise duty, VAT on goods that are not subject to import tax, excise duty, or VAT (if any) to serve the construction of workshops and offices of the export processing companies.

e.9) The certificate of animal breed or plant variety registration issued by state agencies if the animal breeds or plant varieties are not subject to from VAT: 01 photocopy enclosed with the original for comparison;

e.10) For the goods not subject to VAT being machinery, equipment, supplies that cannot be manufactured at home and need importing to serve scientific research, technological development; the machinery, equipment, spare parts, specialized vehicles, and supplies that cannot be manufactured at home and need importing to serve petroleum exploration and extraction; airplanes, oil rigs, and ships that cannot be manufactured at home and are imported or hired from abroad to form fixed assets of companies, or to serve production, business, or lease back, it is compulsory to have:

e.10.1) The notice of successful bid or contractor appointment and the sale contract or goods supply contract or service contract, which specifies the payment exclusive of import tax) if the goods are not subject to VAT and imported by the bid winner or appointed contractor or service provider: 01 photocopy. The original copy shall be presented in the first import at the sub-department of customs for comparison;

e.10.2) The import entrustment contract that specifies the sale prices exclusive of VAT: 01 photocopy enclosed with the original for comparison;

e.10.3) The document of a competent authority that appoints other organizations to run scientific research programs/projects or execute science and technology contracts, enclosed with a written certification of the representative of the company or the head of the scientific research agency, and the commitment to directly use the imported goods for scientific research, technological development if the imported goods are meant to serve scientific research and technology development: submit 01 original copy;

e.10.4) The certification and commitment made by the representative of the company to use the imported machinery, equipment, spare parts, specialized vehicles that cannot be produced at home to serve petroleum exploration and extraction: submit 01 original copy;

e.10.5) The certification and commitment of the representative of the company to use the airplanes, oil rigs, and ships that cannot be manufactured at home and are imported or hired from abroad to form fixed assets of companies or to serve production, business, or lease back: submit 01 original copy;

e.10.6) The lease contract signed with a foreign partner when leasing airplanes, oilrigs, or ships that cannot be manufactured at home to serve production, business or lease back: submit 01 original copy;

e.11) The certificate of goods imported to serve national defense or security respectively issued by the Ministry of National Defense or the Ministry of Public Security if the goods imported are weapons or equipment directly serving national defense and security and are not subject to VAT: submit 01 original copy;

e.12) For the application of 5% tax rate to the equipment and instrument serving teaching, research, scientific experiments, it is required to have:

a.12.1) The notice of successful bid or contractor appointment or sale contracts signed with schools or research institutes, or goods supply contract or service contract: 01 photocopy. The original copy shall be presented in the first import at the Sub-department of customs for comparison.

e.12.2) The commitments made by the schools or research institutes to sue the equipment and instruments for scientific research and experiments: submit 01 original copy.

e.13) The notification of prior determination of HS codes, customs value, or origins (if any): 01 photocopy.

e.14) Other relevant documents as prescribed by law depending on the goods: submit 01 original copy.

Article 13. Customs declaration registration

1. Places to register the declaration

The declaration of exported or imported goods shall be registered at the Sub-department of customs at the checkpoint or outside the checkpoint area, in particular:

a) If the goods are not moved to another checkpoint, the customs declaration shall be registered at the Sub-department of customs in charge of the goods depot at the checkpoint or port of destination;

b) If the goods are moved to another checkpoint, the customs declaration shall be registered at the Sub-department of customs at the checkpoint or the Sub-department of customs to which goods are moved;

c) For the goods exported or imported in particular forms, the declaration shall be registered at corresponding locations as specified in this Circular.

This Regulation is also applicable to electronic customs procedures in the Circular No. 196/2012/TT-BTC dated November 15, 2012 of the Ministry of Finance.

2. Conditions and locations for registering the customs declaration

The declaration shall be registered right after the declarant fills and submit the customs dossier as prescribed and the customs inspects the conditions for registering the customs declaration, including:

a) Inspecting the conditions for taking coercive measures or suspending customs procedures;

b) Inspecting the validity of declared information and documents in the customs dossier;

c) Inspecting the adherence to the management and taxation policies applicable to exported goods and imported goods.

If the conditions for registering the declaration are satisfied, the customs officer shall issue the declaration registration number and update it on the system. If the conditions for registering the declaration are not satisfied, the customs officer notifies declarant of the reasons in writing.

Article 14. Adjustment and supplementation of the customs declaration

1. The customs declaration shall be adjusted and supplemented in the following cases:

a) The supplementary declaration is made before the physical verification of goods or before the decision on exemption of physical verification of goods is made according to Clause 3 Article 9 of the Decree No. 154/2005/NĐ-CP;

b) The supplementary declaration is made after the customs grants the clearance or moves the goods to storage when the conditions below are satisfied:

b.1) The errors in the customs declaration is found and reported to the customs by the taxpayer or the declarant;

b.2) It is reported within 60 days from the day on which the customs declaration is registered, but before the customs carries out tax inspection at the premises of the taxpayer;

b.3) The declarant, the taxpayer provides ample evidence, and the customs is able to verify the accuracy, truthfulness and legitimacy of the supplementary declaration.

b.4) The supplementary declaration does not affect the application of policies on management of exported goods and imported goods to the shipment being declared.

2.  Contents of supplementary declaration:

a) Additional information being the criteria for tax calculation or identification of tax-free goods, goods eligible for tax exemption, tax reduction, tax refund, or tax cancellation;

b) Additional statement of tax payable, paid tax, tax arrears, or overpaid tax (if any), interest on late payment of additional tax (if the taxpayer has paid the additional tax after the tax payment deadline) on each particle and the whole customs declaration; affirmation of the accuracy and legitimacy of the supplementary declaration;

c) Adjustment, addition of other information on the customs declaration.

3. The application for adjustment or supplementation consists of:

a) The written adjustment or supplementary declaration (the form No. 10/KBS/2013 in Appendix III to this Circular): 02 original copies;

b) Other documents proving the adjustment or supplementary declaration.

4. Processing the application for supplementary declaration:

a) The declarant shall:

a.1) Provide accurate and sufficient information in the supplementary declaration;

a.2) Calculate the additional tax or late payment interest (if any);

a.3) Submit the sufficient application to the customs authority by the time limit for making the supplementary declaration according to Article 34 of the Law on Tax administration and Clause 2 Article 22 of the Law on Customs;

a.4) Comply with the requests of the customs on the written adjustment or supplementary declaration;

a.5) If the supplementary declaration leads to an increase of the tax payable, the taxpayer shall pay it and the late payment interest (if any) as prescribed;

a.5) If the supplementary declaration leads to a decrease of the tax payable, the taxpayer may request the customs authority where the supplementary declaration is submitted to settle the overpaid tax as guided in Article 26 of this Circular.

b) The customs authority shall:

b.1) Specify the date and hour when the application for adjustment or supplementary declaration is received in the case mentioned in Point a Clause 2 Article 34 of the Law on Tax administration and Clause 2 Article 22 of the Law on Customs. Specify the date on which the application for supplementary declaration is received in the case mentioned in Point b Clause 2 Article 34 of the Law on Tax administration;

b.2) Inspect the sufficiency and accuracy of the application for adjustment or supplementary declaration, write the inspection result on adjusted declaration, give 01 copy to the declarant, and keep 01 copy;

b.3) The result of inspection of the application for adjustment or supplementary declaration shall be notified within:

b.3.1) 08 working hours since the sufficient application for adjustment or supplementary declaration is received if such adjustment or supplementary declaration is made before the customs carries out physical verification of goods or makes a decision to exempt the physical verification;

b.3.2)  05 working days from the day on which the sufficient application for supplementary declaration is received if such the supplementary declaration is made by the 60th day from the day on which the customs declaration is registered and before the customs carries out tax inspection at the premises of the taxpayer.

5. Where the declarant or taxpayer finds errors in the submitted customs dossier and report them before the customs carries out tax inspection at their premises, after 60 days from the day on which the customs declaration is registered, but the declarant or taxpayer provides ample evidence and the customs is able to verify the accuracy and legitimacy of the declaration, then:

a) The declarant or taxpayer shall make the declaration similar to the case of supplementary declaration guided in Clause 2, Clause 3, and Point a Clause 4 of this Article, pay the tax arrears and late payment interest, comply with the decision on administrative penalties made by the customs;

b) The customs shall receive and check the declaration made by the declarant or taxpayer similarly to the case of supplementary declaration guided in Point b Clause 4 of this Article; impose administrative penalties as prescribed and record them in the supplementary declaration. If the paid tax is higher than the tax payable, the customs shall refund the overpaid tax as prescribed in Article 26 of this Circular.

Article 15. Replacing the customs declaration

The customs declaration shall only be replaced when the method of export or import is changed, and before the physical verification of goods or before the decision on exemption of physical verification is made. Customs procedure:

1. The declarant shall send a written explanation for the replacement of the customs declaration to the Sub-department of customs where the declaration is registered;

2. The Director of the Sub-department of customs where the declaration is registered shall consider the explanation provided by the declarant. If the explanation is considered reasonable and no signs of trade fraud are found, the request shall be granted and a customs officer shall be appointed to:

a) Withdraw the registered customs declaration;

b) Annul the registered declaration by crossing it with a red pen, append the officer’s seal on both destructed declarations;

c) Register a new customs declaration. The new customs dossier consists of: the new customs declaration, the documents of the shipment, and the destructed customs declaration;

d) Take a note on the system: “This declaration has been replaced with the declaration No. … dated … ;

e) Keep the annulled customs declaration and the request for replacement of the declaration made by the declarant in cardinal order.

Article 16. Customs inspection during customs procedure

1. Inspection during customs procedure includes: inspection of the customs dossier, tax inspection and physical verification of goods.

2. Inspection during customs procedure includes:

a) Inspection of names and codes of goods according to Circulars of the Ministry of Finance providing guidance on classification of exported goods and imported goods.

b) Inspection of goods quantity;

If the quantity cannot be determined manually or with instruments of the customs authority (such as liquid, bulk cargo, massive cargo etc.) the customs shall examine the verification result provided by a verification service provider (hereinafter referred to as verifier).

c) Inspection of goods quantity:

c.1) If the goods quality cannot be verified with the instruments of the customs authority, the declarant shall be requested to take samples or provide the catalogue, and select a verifier. The conclusion given by the verifier is final.

c.2) If the declarant and the customs authority fail to concur in the selection of the verifier, the customs authority shall select a technical organization appointed to carry out inspections serving state management or a verifier (if the technical organization makes a written refusal). conclusion given by the technical organization or verifier is final. The declarant may file a complaint if they do not concur with such conclusion.

d) Inspecting the license to export or import:

For the goods in the List of exported and imported goods that need licenses issued by state authorities, the customs authority shall register declarations and carry out customs procedures based on the licenses to export or import issued by state authorities.

dd) For the goods that need to undergo quality inspection, quarantine, food safety and hygiene inspection (hereinafter referred to as in-depth inspection): the customs authority shall carry out the customs procedure based on the certificate of in-depth inspection registration or the notice of exemption from on inspection or the notice of satisfactory shipment issued by an inspecting authority.

e) Inspecting the origins of goods based on the actual goods, customs dossier, relevant information, Article 15 of the Government's Decree No. 19/2006/NĐ-CP dated February 20, 2006, and relevant guiding documents:

e.1) If the actual origin of goods is not consistent with the declaration but they still belong to a country or territory granted most-favored nation treatment by Vietnam, the customs authority shall apply preferential tax rates as prescribed and take appropriate actions depending on the nature and severity of the violations.

e.2) If the origin of goods is in doubt, the customs authority shall request the declarant to provide supporting documents to prove it or request a competent authority of the exporting country to verity. Goods shall not enjoy tax incentives while awaiting the verification result, but still granted clearance according to ordinary customs procedures;

e.3) If the declarant submits the Certificate of Origin for the whole shipment but only imports part of the shipment, the customs authority shall accept the Certificate of Origin of the imported part.

e.4) If the Certificate of Origin is provided after the goods is released or moved to storage in order to recalculate tax, and is accepted by the Sub-department of customs where the declaration is registered, the declarant shall make the declaration and recalculate tax in accordance with the adjustment form (the form No. 10/KBS/2013 in Appendix III to this Circular).

e.5) The application of notification of prior certification of origins to the goods of which customs dossier must be inspected or undergo physical verification shall be examined.

g) Tax inspection includes:

g.1) Inspecting the conditions for taking coercive measures or applying tax payment deadline as prescribed;

g.2)  Inspecting the basis for identifying tax-free goods when the declarant identifies their goods as exempt from export tax, import tax, VAT, excise duty, or environmental protection tax.

g.3) Inspecting the basis for identifying goods as eligible for tax exemption or reduction when the declarant identifies their goods as eligible for tax exemption or reduction;

g.4) Check the criteria for calculating tax payable when the exported or imported tax are subject to tax based on the inspection result mentioned in Point a, Point b, Point c and Point d of this Clause, the result of inspection of dutiable values according to the Ministry of Finance’s guidance on the Government's Decree No. 40/2007/NĐ-CP dated March 16, 2007 on customs valuation of exported, imported goods, and relevant bases.

g.5) Inspecting the application of the notification of prior determination of HS codes or customs value of the goods that must undergo customs dossier inspection or physical verification.

h) For the goods temporarily imported for re-export or temporary export for re-import that are not sealed during customs inspection, the customs officer shall specify the goods names, quantity, category, codes, origin (if any) on the physical verification result sheet, or take pictures of the goods, and enclosed them with the customs dossier. During the procedure for re-export or re-import is complete, the customs officer shall compare the goods with their description in the customs dossier of temporary import or export (kept by the customs) and certify that the goods re-exported or re-imported are consistent with the goods temporarily imported or exported.

3. Based on the risk assessment of the customs authority, the head of the customs authority where the customs dossier is received and processed shall decide the method and level of inspection:

a) Exempt the dossier inspection and physical verification;

b) Inspect the customs dossier and exempt goods from physical verification;

c) Inspect the customs dossier and carry out physical verification of goods.

4. While the imported or exported shipment is following customs procedures, based on the result of inspection of customs dossier or physical verification of goods and the new information provided, the head of the Sub-department of customs shall decide the change in the method or level of inspection and take responsibility for such change.

5. When the physical verification is done, the customs officer that carries out the inspection shall write the inspection results as guided by the General Department of Customs.

Article 17. Sampling, retention of samples of exported or imported goods to make customs declarations; fulfillment of requirements of the specialized inspection agency; analysis or verification for classifying exported goods and imported goods

1. Exported goods or imported goods shall be sampled in the following cases:

a) Exported goods or imported goods are sampled to serve the customs declaration at the request of the declarant or the specialized inspection agency;

b) The exported goods or imported goods must be sampled to serve the analysis or verification for classifying goods at the request of the customs authority.

2. The sampling shall be decided by the head of the customs authority that makes the request.

3. Procedure for sampling exported goods or imported goods

a) Samples shall be taken in accordance with the Sampling note (the form No. 11/PLM/2013 Appendix III to this Circular) if the sampling is requested by the declarant or customs authority.

b) If samples are taken for analysis: the samples must be taken from the shipment that needs analyzing. The General Department of Customs shall specify the requirements of samples and the procedure for sampling for analysis.

c) If samples are taken at the request of the specialized inspection agency, samples shall be taken at the checkpoint of import or at the checkpoint to which goods are moved.

d) The representative of the goods owner and representative of the customs authority must be present during the sampling. If samples are taken at the request of a specialized agency, the representative of such agency must be present; the samples must be sealed and signed by every party. A record signed by all parties shall be made when samples are transferred.

4. Sampling techniques are guided by the General Department of Customs.

5. Places for sample retention

In the case mentioned in Point b Clause 1 of this Article, samples shall be retained at:

a) Exported/imported Goods Analysis and Classification Center (hereinafter referred to as Analysis and Classification Center) if samples are taken for analysis.

b) The customs authority that takes samples if samples are taken to serve other customs tasks.

6. Sample retention period:

a) The samples at Analysis and Classification Center shall be retained for 90 days from the day on which the analysis result is given.

b) The samples at the Sub-department of customs shall be retained for 90 days from the day on which customs clearance is granted.

7. Objects of analysis, verification and submission of request for analysis, verification for classifying goods.

a) The objects of analysis, verification for goods classification are samples of exported or imported goods (hereinafter referred to as samples).

b) Submission of request for analysis, verification:

b.1) The customs authority that receives the request for analysis shall take and send samples to Analysis and Classification Center to analyze the goods that are beyond the capacity of the customs authority, which require specialized instruments to determine the composition of samples;

b.2) If the Analysis and Classification Center affiliated to the General Department of Customs is not capable of analysis in the case mentioned in Point b.1 Clause 7 of this Article, the customs authority shall send such samples to a technical service provider under the management of a Ministry or a organization that provides verification services under the Law on Commerce (hereinafter referred to as verifier) for verification, and the use the result provided by such organization to determine the names, codes, and taxes of exported or imported goods.

The General Department of Customs shall announce the List of articles that cannot be analyzed by Analysis and Classification Center;

b.3) The submission of request for analysis or verification and the use of analysis or verification result in contravention of this Clause do not have the validity for goods classification.

8.  Application for analysis or verification

a) Application for analysis:

a.1) The application for analysis is made by the customs authority, bears its seal, and shall be sent to Analysis and Classification Center. The application consists of:

a.1.1) A sampling record and request for analysis (the form No. 12/PYCPT/2013 in Appendix III to this Circular): 02 original copies. 01 copy is kept by the customs authority; 01 copy is kept by Analysis and Classification Center;

a.1.2) Relevant technical documents: 01 photocopy;

a.1.3) The customs declaration of exported or imported goods that need analyzing. If goods have undergone physical verification, the result given by the customs officer must be specified: 01 photocopy;

a.1.4) A commercial contract: 01 photocopy;

a.1.5) The Certificate of Origin (if any): 01 photocopy;

a.1.6) A list of documents in the application: 01 original copy.

a.2) If analysis is requested to serve the prior determination of HS codes: based on the samples sent by the applicant for prior determination of HS codes, the Customs Department shall make 02 copies of the Request for analysis (the form No. 13/PYCPT-XĐTMS/2013 in Appendix III to this Circular). 01 copy is kept by Analysis and Classification Center. The other copy shall be kept by the Customs Department. The application for analysis sent to Analysis and Classification Center is the photocopy of the application for prior determination of HS codes specified in Clause 2 Article 7 of this Circular.

b) The application for verification shall comply with regulations on goods verification.

9. Delivery of goods samples and application for analysis or verification.

a) The customs authority that requests the analysis or verification shall send the samples and application directly or send by post, or authorize the declarant in writing to send the samples and application to Analysis and Classification Center or the verifier.

b) If verification is requested to serve the prior determination of HS codes, the applicant for prior determination of HS codes shall send goods samples and the application for verification to the verifier based on the written notice of the customs authority.

c) Upon the receipt of goods samples and the application for analysis, Analysis and Classification Center shall make a Receipt note (the form No. 14/PTNYCPT/2013 in Appendix III to this Circular).  The Receipt note shall be made into 02 copies. 01 copy is kept by Analysis and Classification Center  and 01 copy is sent to the customs authority that requests the analysis.

Within 03 working days, Analysis and Classification Center shall send the Receipt note to the customs authority that requests the analysis.

d) If the goods samples and application for analysis are not satisfactory, Analysis and Classification Center shall send a written notification and return the samples and application within 03 working days from the day on which they are received.  The customs authority that requests the analysis shall complete the application and goods samples.

10. Destruction, return of analyzed or verified goods samples

a) Destruction of analyzed goods samples:

a.1) Analysis and Classification Center shall initiate the procedure for destructing the samples that have passed the retention period, samples of dangerous goods, samples that have transformed or cannot be retained any longer;

a.2) The destruction of analyzed samples shall be decided by the head of the unit and recorded in writing. The decision and sample destruction record shall be retained in accordance with regulations on document retention.

b) Return of analyzed goods:

b.1) If the request for analysis made by the customs authority says “Samples must be returned”, the Analysis and Classification Center shall return samples to the customs authority or the declarant (if authorized by the customs authority to receive the samples), provided such samples are returnable.

b.2) The head of the unit shall decide the return of goods samples and is not responsible for the quality of the samples returned due to the effect of the analysis process.

b.3) If goods samples are returned before the end of the retention period, the goods owner shall make a commitment not to file complaints about the analysis results.

b.4) A record shall be made when goods samples are returned (the form No. 15/BBTLMHH/2013 in Appendix III to this Circular).

c) The return of verified goods shall comply with regulations on goods verification.

11. Notification of analysis and classification result

a) Within 10 working days from the day on which the application and goods samples are received, Analysis and Classification Center shall send a notification of the analysis result to the General Department of Customs (the form No. 16/PTNYCPT/2013 in Appendix III to this Circular).

If the application involves samples of 02 types of goods, or the samples are complicated and need more time to analyze, Analysis and Classification Center shall send a written notification of the intended date to give the analysis result within 05 working days from the receipt of samples. After the analysis result is available, Analysis and Classification Center shall send a notification of the analysis results to the General Department of Customs (the form No. 16/TBKQPT/2013 in Appendix III to this Circular) together with the photocopy of the application for analysis.

b) The Director of the General Department of Customs shall makes a notification of goods classification result (the form No. 17/TBKQPL/2013 in Appendix III to this Circular) within 10 working days from the receipt of the notification of analysis result sent by Analysis and Classification Center.

The notification of classification result sent by the Director of the General Department of Customs is the basis for determining taxes and implement policies on exported or imported goods; shall be updated on the database, posted on the website, and uniformly applied in the customs sector.

12. The notification of classification of exported or imported goods that need verifying specified in Point b.2 Clause 7 of this Article:

After receiving the verification result from the verifier, the Sub-department of customs shall send it to the Customs Department. Based on the verification result, the Director of the Customs Department shall provide guidance on the classification of goods to determine taxes and implement policies on exported or imported goods, and send 01 copy to the General Department of Customs for updating on the website of the customs.

13. The declarant may file a complaint if he does not concur with the classification result given by the customs authority.

Article 18. Supervising goods exported, imported, in transit; vehicles exported, imported, in transit

1. The customs supervision of goods exported, imported, in transit; vehicles exported, imported, in transit shall comply with Article 26 of the Law on Customs, Article 13 and Article 14 of the Decree No. 154/2005/NĐ-CP. This Circular also provides additional guidance on customs supervision of exported or imported goods that are moved in or out of the customs area at the checkpoint. In particular:

a) Responsibilities of the declarant.

When exported or imported goods are taken in or out of the customs area at the checkpoint, the declarant shall present the documents below to the customs authority:

a.1) The customs declaration:

a.1.1) The customs declaration of exported goods is the declaration certified by the customs authority;

a.1.2) The customs declaration of imported goods is the declaration in which the clearance, release, or storage of goods is certified by the customs authority; the goods release note issued by the warehouse owner;

a.2) Exported or imported goods.

b) Responsibilities of the Sub-department of customs at the checkpoint.

b.1) The Sub-department of customs at the checkpoint shall supervise exported goods and imported goods as prescribed. When an exported or imported shipment is found violating legislation on customs, the Director of the Sub-department of customs at the checkpoint shall make a decision on physical verification.

b.2) When supervising exported or importing goods being taken in or out the checkpoint area, the Sub-department of customs at the checkpoint shall:

b.2.1) Check the validity of the customs declaration;

b.2.2) Compare the number of the shipping vehicle and the customs seal (if any);

b.3) Process the inspection result.

If the result is satisfactory, the customs officer shall certify, append the signature and seal, and then return the following papers to the declarant:

b.3.1) The customs declaration is certified that “Goods were under customs supervision” if goods are exported or imported by sea, by inland waterways, by ail, or by railway.

b.3.2) The customs declaration is certified that “Goods are exported/imported” if goods are already exported or imported by land, by river, or at a transshipment port or transshipment zone;

b.3.3) The record on transfer of goods being moved to another checkpoint;

b.3.4) The manifest of goods moved from the bonded warehouse or CFS to the checkpoint of export (if any).

If the inspection result is not satisfactory, the Sub-department of customs at the checkpoint shall take appropriate actions or instruct the declarant to make adjustments on a case by case basis.

If the customs declaration is invalid and must be annulled according to Clause 1 Article 31 of this Circular, the Sub-department of customs at the checkpoint shall request the declarant to go to the Sub-department of customs where it was registered to follow the annulment procedure.

c) For goods temporarily imported for re-export, exported or imported goods being moved to another checkpoint, the declarant shall present the dossier apart from the documents in Point a Clause 1 of this Article, And the customs authority shall carry out customs supervision according to Article 41 and Article 61 of this Circular.

2. The Director of the General Department of Customs shall provide guidance on the measures and supervision period applicable to each type of checkpoints,  goods exported, imported, in transit; vehicles exported, imported, in transit.

Article 19. Tax currency

1. Tax on exported and imported goods shall be paid in VND.  If tax is paid in a foreign currency, it must be a convertible foreign currency. Foreign currencies shall be converted into VND at the average exchange rate on the inter-bank foreign exchange market announced by the State bank of Vietnam when tax is calculated.

2. If tax must be provisionally paid in foreign currencies while pending official prices, the taxpayer may pay tax in a foreign currency or VND before customs clearance or release. After official prices are available and the taxpayer receives payment from the foreign customers, the taxpayer shall pay the difference (if any) in the foreign currency.

If tax is provisionally paid in VND, the exchange rate is the average exchange rate on the inter-bank foreign exchange market announced by the State bank of Vietnam when tax is calculated. Such exchange rate is uniformly applied to the currency exchange between the State Treasury and the customs authority.

Article 20. Tax payment deadline

The deadline for paying tax on exported or imported goods is specified in Clause 3 Article 42 of the Law on Tax administration, which is amended in Clause 11 Article 1 of the Law on the amendments to the Law on Tax administration No. 21/2012/QH13, in particular:

1. If imported goods are raw materials for producing exports:

a) The taxpayer must satisfy the conditions below to enjoy the 275-day tax payment deadline from the day on which the customs declaration is registered:

a.1) The taxpayer owns a facility in Vietnam to produce exports from the imported materials (based on the commitment made by the company under the form No. 18/CSSX-SXXK/2013 in Appendix III to this Circular). The customs must carry out inspection at the factory if the company poses risks under the guidance of the General Department of Customs.

a.2) The taxpayer has engaged in export or import for at least 02 consecutive years when the registers the customs declaration of the materials imported for export production, and during such 02-year period the customs finds that:

a.2.1) The taxpayer does not carry any penalty for smuggling or illegal transit of goods across the border;

a.2.2) The taxpayer does not carry any penalty for tax evasion or trade fraud;

a.3) The taxpayer does not owe overdue debt, late payment interest, or fines when the declaration is registered;

a.4) The taxpayer does not carry any penalty pertaining to accounting during the previous 02 consecutive years before the customs declaration is registered;

a.5) The taxpayer must make payment for the raw materials imported for producing exports by bank transfer. The cases of payment considered bank transfer shall be resolved as prescribed in Clause 4 Appendix I to this Circular.

If the import is entrusted, the entrusting party must satisfy the aforesaid conditions and have the import entrustment contract. The entrusted party must satisfy the conditions in Point a.2, a.3, a.4, and a.5 of this Clause.

Where the parent company imports and supplies raw materials for its affiliates, or the affiliate imports and supplies raw materials for its affiliated units or other affiliates, the units affiliated to the parent company or the other affiliates must satisfy the aforesaid conditions; the importing parent company or affiliate must satisfy the conditions in Point a.2, a.3, a.4, a.5 of this Clause, and submit the list of affiliated units to the customs authority where the procedure is carried out.

b) If the conditions mentioned in Point a of this Clause are not satisfied but tax payment is guaranteed by a credit institution, and the conditions in Clause 2 Article 21 of this Circular are satisfied, the tax payment deadline is the end of the guarantee period, which does not exceed 275 days, from the day on which the customs declaration is registered. The late payment interest is exempt during the guarantee period.

c) Where the imported raw materials eligible for 275-day deadline or an extension beyond 275 days are not used for producing exports, or one of the conditions in Point a of this Clause is found unsatisfied, or products are exported after the deadline:

c.1) The products shall are sold to the domestic market. The taxpayer shall pay tax on the products sold to the domestic market and late payment interest on the period from the day on which the declaration of imported goods is registered to the tax payment date.

If the export contract is terminated by the foreign party or in the event of force majeure and the products must be sold to the domestic market, the taxpayer shall declare tax and calculate late payment interest from the tax payment deadline to the date of tax payment (if products are sold to the domestic market after the deadline) the Customs Department shall examine the explanations and resolve on a case by case basis.

c.2) The raw materials shall be re-exported. The taxpayer calculates and pays late payment interest on the period from the day on which the customs declaration is registered to the date of export. If the contract is terminated by foreign party due to an event of force majeure, the late payment interest is exempt. the Customs Department shall examine the explanations and resolve on a case by case basis.

c.3) The products shall be exported after the tax payment deadline: the taxpayer shall calculate and pay late payment interest on the period from the tax payment deadline to the date of export or date of tax payment (if taxis paid before products are exported). If the late export is on account of the foreign customer, the late payment interest is exempt.

c.4) If one of the conditions in Point a of this Clause is found unsatisfied, the taxpayer shall pay tax and late payment interest on the period from the day on which the declaration of imported goods is registered to the tax payment date, and carry penalties.

2. For goods temporarily imported for re-export

a) The taxpayer must pay import tax before completing the procedure for temporary import. If tax has not been paid and but a credit institution guarantees the tax payment, and the conditions in Clause 2 Article 21 of this Circular are satisfied, the tax payment deadline is the end of the guarantee period, which does not exceed 15 days from the deadline for re-export (not applicable to the extended period of temporary import for re-export); late payment interest is exempt during the guarantee period.

b) If products are re-exported after the guarantee period: the taxpayer shall pay late payment interest on the period from the end of the guarantee period to the date of re-export or date of tax payment (if tax is paid before re-export).

c) If guarantee if provided but products are sold to the domestic market, the taxpayer shall pay tax, re-calculate the deadline for paying tax on the products that sold to the domestic market, and pay late payment interest on the period from the date of completion of procedure for temporary import to the date of tax payment.

3. For the goods exported or imported in accordance with Point c Clause 3 Article 42 of the Law on Tax administration, which is amended in Clause 11 Article 1 of the Law on the amendments to the Law on Tax administration No. 21/2012/QH13, the taxpayer shall pay tax before customs clearance.

If tax payment is guaranteed by a credit institution (the maximum guarantee period is 30 days from the day on which the customs declaration is registered) and the conditions in Clause 2 Article 21 of this Circular are met, the tax payment deadline is the end of the guarantee period, but late payment interest on the period from the customs clearance to the date of tax payment shall be paid. Late payment interest shall be calculated in accordance with Article 106 of the Law on the amendments to the Law on Tax administration No. 21/2012/QH13 and guidance in Article 131 of this Circular.

4. The tax payment deadline in some special cases (except for the cases in which tax debt is paid in instalment according to Clause 25 Article 1 of the Law on the amendments to the Law on Tax administration no. 21/2012/QH13):

a) If the one customs declaration is registered to export or import several times, the tax payment deadline shall comply with regulations and is applicable to each export or import;

b) The exported or imported goods under the supervision of the customs authority are impounded by a state authority to investigate; the time limit begins when the state authority makes a written decision to release the goods;

c) If the imported goods serving national defense and security that are granted clearance or released are not exempt from tax, the taxpayer shall pay tax, recalculate the tax payment deadline and late payment interest on the period from the date of clearance or release until the date of tax payment; penalties shall be imposed (if any) as prescribed.

While awaiting the approval for tax exemption, the taxpayer shall make a commitment to comply with the final decision on tax on the imported goods serving scientific research, education and training made by Director of the General Department of Customs. If goods are not eligible for tax exemption, the taxpayer shall pay tax, recalculate the tax payment deadline and late payment interest on the period from the date of goods clearance or release until the date of tax payment; penalties shall be imposed (if any) as prescribed.

d) If an additional tax statement is made, the time limit for paying tax is the registration date of the customs declaration (if goods are raw materials imported for producing exports) or the completion date of customs procedure for temporary import of goods (for goods temporarily imported for re-export) or the clearance/release date (for other goods).

5. If the customs declaration is registered before July 01, 2013 but granted clearance or released after July 01, 2013, the tax payment deadline in Clause 1 Article 11 of the Law on the amendments to the Law on Tax administration No. 21/2012/QH13 shall apply.

6. Deadline for paying imposed tax

a) For customs declaration registered from July 01, 2013, the tax on which is imposed by the customs, the tax payment deadline is the registration date of the customs declaration if goods are raw materials imported for producing exports. If goods are temporarily imported for re-export, the tax payment deadline is the completion date of customs procedure for import. For other goods, the deadline for paying imposed tax is the date of clearance or release;

b) If the customs declaration is registered before July 01, 2013 but the customs imposes tax after July 01, 2013, the tax payment deadline is the day on which the customs issues a decision on tax imposition.

7. The deadline for paying tax on exported crud oil, goods subject to protection tax, anti-dumping tax, anti-subsidy tax is specified Point c Clause 3 Article 42, which is amended in Clause 11 Article 1 of the Law on the amendments to the Law on Tax administration No. 21/2012/QH13, according to which the taxpayer must pay tax before the goods are granted clearance or release, or a guarantee must be provided by a credit institutions. If a guarantee is provided by a credit institutions, a late payment interest of 0.05% per day shall be paid during the guarantee period. The maximum guarantee period is 30 days from the day on which the customs declaration is registered. Conditions for guarantee are specified in Clause 2 Article 21 of this Circular.

8.  Tax payment deadline when official prices are not available when goods are granted clearance or released: the taxpayer shall pay a provisional tax based on the prices stated before goods are granted clearance or released, or a guarantee must be provided by a credit institution. Conditions for guarantee are specified in Clause 2 Article 21 of this Circular. The taxpayer shall pay a late payment interest of 0.05% per day during the guarantee period.

If the provisional tax or guaranteed tax before the clearance or release is smaller than the tax payable when official prices are available, the taxpayer shall pay the difference. The late payment interest on the difference is exempt. Conditions for guarantee are specified in Clause 2 Article 21 of this Circular.

If the provisional tax or guaranteed tax before the clearance or release is larger than the tax payable when official prices are available, the overpaid tax shall be settled in accordance with Article 26 and Article 130 of this Circular.

9. The deadlines for paying VAT on specialized equipment, machinery, vehicles in technological lines, and building materials that cannot be manufactured at home and need importing to form fixed assets; raw materials for manufacturing animal feeds, fertilizers and pesticides are specified in Point c Clause 3 Article 42, which is amended in Clause 11 Article 1 of the Law on the amendments to the Law on Tax administration, and Clause 2 Article 21 of this Circular.

Article 21. Tax payment guarantee

1. Tax payment guarantee shall be provided in the form of separate guarantee or joint guarantee.

a) Separate guarantee is the guarantee provided by a credit institution that makes a commitment to guarantee the payment of tax on a export or declaration of imported goods. If the taxpayer provided with guarantee by a credit institution fails to pay tax and late payment interest (if any) at the end of the guarantee period, the credit institution that provides guarantee shall pay tax and late payment interest on the taxpayer's behalf according to Clause 11 Article 11 of the Law on the amendments to the Law on Tax administration No. 21/2012/QH13 and Clause 2 Article 114 of the Law on Tax administration.

b) Joint guarantee is a commitment to guarantee the payment of tax on two or more export/declaration of imported goods at one or multiple Sub-departments of customs. Joint guarantee quota shall be deducted. The guarantee quota shall be restored in proportion to the amount of paid tax. Joint guarantee at multiple Sub-department of customs shall be provided when the customs deploy the electronic clearance system and the single-window system VNACCS/VCIS.

If the taxpayer provided with guaranteed by a credit institution fails to pay tax on any declaration and late payment interest (if any) at the end of the guarantee period, the credit institution that provides guarantee (hereinafter referred to as guarantor) shall pay tax and late payment interest on the taxpayers' behalf according to Clause 11 Article 11 of the Law on the amendments to the Law on Tax administration No. 21/2012/QH13 and Clause 2 Article 114 of the Law on Tax administration.

2. The customs shall accept the guarantee if the conditions below are satisfied:

a) Conditions for the taxpayer to be provided with guarantee:

a.1) The taxpayer has a owner’s equity of 10 billion VND (according to the financial statement of the year preceding the year in which the customs declaration is registered) and has engaged in export and import for at least 365 days up to the day on which the export or declaration of imported goods is registered. During this 365-day period:

a.1.1) The taxpayer is not in the list of entities that carry penalties imposed by the customs for smuggling or illegal transit of goods across the border.

a.1.2) The taxpayer is not in the list of entities that carry penalties imposed by the customs for tax evasion;

a.1.3) The taxpayer does not carry more than 02 fines for other violations pertaining to customs procedures (including understatement of tax payable or overstatement of tax exempted, reduced, or refunded) that exceed beyond the capacity of the Director of the Sub-department of customs according to the Law on Handling administrative violations;

a.2) The taxpayer does not own overdue tax, late payment interest, or fines when the customs declaration is registered;

b) A letter of guarantee is submitted by a credit institution established and operated under the Law on credit institutions, specifying the guaranteed tax, guarantee period, and commitment to relevant customs authorities on their capacity and the payment of tax and late payment interest on behalf of the taxpayer if the taxpayer fails to pay tax at the end of guarantee period;

3. Procedure for separate guarantee

a) If a guarantee is provided when following the procedure for export or import, the taxpayer shall submit the letter of guarantee sent by the guarantor to the customs authority.

b) The contents of the Letter of separate guarantee shall comply with the form No. 19/TBLR/2013 in Appendix III to this Circular.

c) The customs make sure the conditions for guarantee in Clause 2 of this are met, the compliance of the letter of guarantee and the form, then:

c.1) Decide the tax payment deadline within the guarantee period, but this deadline must not exceed the deadline in Clause 3 Article 42 of the Law on Tax administration, which is amended in Clause 11 Article 1 of the Law on the amendments to the Law on Tax administration No. 21/2012/QH13;

c.2) If the guarantee period is smaller than the tax payable, the Director of the Sub-department of customs shall make a decision on granting clearance to an amount of goods in proportion to the guarantee tax, and take responsibility before the law for this decision. If the taxpayer demands a clearance for the whole shipment, the taxpayer shall pay the unguaranteed tax before receiving goods;

If imported goods are bulk cargo or liquefied gas, of which the guaranteed tax is smaller than the tax payable, the Director of the Sub-department of customs shall make a decision on granting clearance to an amount of goods in proportion to the guaranteed tax.

c.3) If every condition for guarantee is not satisfied, the customs authority shall send a written notification to the taxpayer of the refusal to accept guarantee. An enquiry about the truthfulness of the letter of guarantee shall be sent to the credit institution that provides guarantee shall be held if it is in doubt.

d) Monitoring and processing guarantee:

d.1) If the taxpayer fails to sufficiently pay the guaranteed tax by the deadline, the guarantor shall pay tax and late payment interest (if any) on behalf of the taxpayer.

d.2) The customs authority shall monitor and urge the taxpayer and the guarantor to pay tax and late payment interest to government budget as prescribed.

The customs authority that finds a violation committed by the guarantor shall announce it in writing or on the database (if any) for customs authorities nationwide to refuse letters of guarantee of such credit institution, and request a competent authority to handle the case.

d.3) If the taxpayer and guarantor both pay tax and late payment interest, the overpaid amount shall be refunded to the guarantor.

4. Procedure for joint guarantee

a) Before initiating the procedure for export or import, the taxpayer shall submit a request for joint guarantee for imported goods (the form No. 20/ĐBLC/2013 in Appendix III to this Circular) to the Sub-department of customs where the declarations are registered;

b) The contents of the Letter of joint guarantee shall comply with the form No. 21/TBLC/2013 in Appendix III to this Circular;

c) The customs authority where the declarations are registered shall make sure the conditions in Clause 2 of this Article are satisfied. If all conditions are satisfied, the customs authority shall accept the joint guarantee for all declarations of exported or imported, which are registered within the guarantee period written on the letter of guarantee, and determine a deadline for paying tax on each shipment within the guarantee period.

If the conditions for guarantee are not satisfied, the customs authority shall makes a written refusal of guarantee and notify it to the taxpayer.

If the truthfulness of the letter of guarantee is in doubt, the customs authority shall request the guarantor to verify.

d) If the remaining guaranteed tax is smaller than the tax payable, Point c.2 Clause 3 of this Article shall apply;

dd) Guarantee shall be monitored and processed in accordance with Point d Clause 3 of this Article to ensure that the tax payment guaranteed is smaller than or equal to the balance of joint guarantee, and the guarantee quota shall be restored in proportion to the paid tax of the guaranteed declaration. The remaining guarantee quota depends on the initial quota written on the letter of guarantee minus (-) the guarantee tax plus (+) paid tax on the declarations under joint guarantee;

e) When the customs authority shall cancel the joint guarantee when receiving a request for termination of joint guarantee made by the guarantee, provided the tax, late payment interest and fines (if any) of the declarations under the joint guarantee are paid.

5. If tax payment guarantee is provided via electronic means under agreements between commercial banks and the General Department of Customs: when information about guaranteed tax at a commercial bank is received via the electronic payment system of the General Department of Customs, the customs authority shall update it on the database of the General Department of Customs and grant clearance. Guarantee shall be monitored and processed in accordance with Point d Clause 3 and Point dd Clause 4 of this Article.

Article 22. Locations and methods of tax payment

1. The taxpayer shall pay tax, late payment interest, fines, and other payables on exported or imported goods to the State Treasury or to a receipt account of the customs authority at commercial bank, or via other credit institutions, commercial banks, and service providers mentioned in Clause 1 Article 26 of the Decree No. 83/2013/NĐ-CP.

2. If the taxpayer pays tax, late payment interest, fines, or other payables in cash but State Treasury does not collect money at the customs post, the customs authority where the customs declaration is registered shall collect the tax and remit it to the State Treasury.

3. If the taxpayer wishes to pay tax, late payment interest, fines, and other payables owed to other customs authorities at the customs authority where customs procedure is carried out, the taxpayer shall declare and pay them at the State Treasury or to the current customs authority (if the State Treasury does not collect money directly at the customs post).

4. The State Treasury, credit institutions and service providers shall issue State budget remittance bills to taxpayers using the form provided by the Ministry of Finance.

The customs authority shall issue tax receipts to taxpayers using the form provided by the Ministry of Finance if tax is collected in cash. The Sub-department of customs that collects tax on behalf of the taxpayer shall fax the tax receipt to the Sub-department of customs that entrusts the collection.

5. The customs authority shall open an account to collect tax, late payment interest, and other payables on exported and imported goods at commercial banks that have agreements with the General Department of Customs.  After the procedure for collecting and remitting tax to the account of the customs authority is completed, the commercial bank shall transmit the data about the government revenues to the customs authority, the State Treasury, and follow the procedure for cooperation among State Treasuries, the General Department of Taxation, the General Department of Customs, and commercial banks. After the information about the amount sent from the account at the commercial bank is received, the customs authority shall update it on the accounting system, and remove the tax arrears.

If the taxpayer pays tax directly at the customs authority, State Treasury, credit institution or service provider (that has not connected with the system of electronic tax payment), the customs authority, State Treasury, credit institution, or service provider shall transfer the tax on imported raw materials for producing exports, temporarily imported or exported tax, which is collected from the taxpayer, within 08 working hours to the account of the customs authority at the State Treasury, or to government budget in other cases.

The time limit is 05 working days if tax is collected in cash in remote areas, on islands, in areas facing inconvenient traffic from the day on which tax is collected from the taxpayer.

For the tax transferred to the deposit account of the customs authority at the State Treasury, if the taxpayer fails to submit the tax settlement dossier after 135 days from the date of tax payment, the customs authority shall transfer the money to government budget as prescribed.

Article 23. Paying tax when verification, analysis, or classification of goods is compulsory

If verification, analysis, or classification of goods in terms of technical standards, quality, quantity, and categories is necessary for ensuring accurate tax calculation (such as determination of goods names, goods numbers according to tax tables, quality, quantity, technical standards, condition of imported goods, etc.), the taxpayer shall pay tax in accordance with Clause 1 Article 28 of this Circular.

If the result of verification, analysis, and classification of goods is different from the declaration of the taxpayer and causes the amount of tax payable to change, the customs authority shall impose tax based on such result and set a deadline for paying the difference in accordance with Clause 11 Article 1 of the Law on the amendments to the Law on Tax administration No. 21/2012/QH13.

Article 24. Order for paying tax, late payment interest and fines

1. The order for paying tax, late payment interest and fines is specified in Article 45 of the Law on Tax administration, which is amended in Clause 12 Article 1 of the Law on the amendments to the Law on Tax administration No. 21/2012/QH13, where:

a) Overdue tax or late payment interest subject to coercive measures are the debts that have been overdue for more than 90 days from the tax payment deadline;

b) Overdue tax or late payment interest not under coercion are the debts that have been overdue for fewer than 90 days from the tax payment deadline;

2. The State Treasury and customs authority shall exchange information about the collection of tax, late payment interest, fines for determining the orders, and collect them in such order. In particular:

a) The customs shall monitor the tax debt of the taxpayer, instruct the taxpayer to pay tax in order, develop an information access system for taxpayers to check and pay tax in correct order;

b) Based on the receipts for payments of tax, late payment interest, fine of the taxpayer, the State Treasury shall record the government revenues, transfer the documents and information about the payments to the customs authority for monitoring and management;

c) If the taxpayer pays tax, late payment interest, and fine in an incorrect order, the customs authority shall request the State Treasury to adjust the amount of tax collected, notify the taxpayer of the adjustment, or request the taxpayer to pay other amounts in the correct order. Exported or imported of the new declaration shall only be granted clearance after the taxpayer no longer owes tax, late payment interest, or fines;

d) If the taxpayer does not separate tax, late payment interest and fines on the tax return, the customs authority shall record them in order, notify State Treasury and the taxpayer.

Article 25. Tax imposition

1. Tax imposition as guided in this Circular is the customs authority exercising the right to determine the factors, criteria for tax calculation, calculate tax, and request the taxpayer to pay the tax imposed by the customs authority in the cases mentioned in Clause 2 of this Article.

2. The customs authority shall impose tax in the cases mentioned in Clause 3 Article 33 of the Decree No. 83/2013/NĐ-CP.

3. Tax imposition must comply with Article 36 of the Law on Tax administration.

4. The basis for the customs authority to impose tax is the dutiable value, quantity, origins of goods, the rate of import/export tax, excise duty, VAT, environmental protection tax, protection tax, anti-dumping tax, anti-subsidy tax on exported or imported goods; the exchange rate, tax calculation method, and other information in Clause 2 Article 39 of the Law on Tax administration, Article 35 of the Decree No. 83/2013/NĐ-CP and guidance in Section 1 Part V of this Circular.

5. The power to impose tax is prescribed in Article 33 of the Decree No. 83/2013/NĐ-CP.

6. Procedure for imposing tax

a) Tax on exported and imported goods shall be imposed while following the customs procedure or after goods are granted clearance or are released;

b) When imposing tax, the customs authority shall impose the tax payable or determine relevant aspects (quantity, dutiable values, numbers, tax rate, origins, exchange rate, quantities, etc.) as the basis for calculating the total tax payable, exempted, reduced, refund on each article or customs declaration according to Article 34 of the Decree No. 83/2013/NĐ-CP.

When each aspect related to the imposition of tax is determined, the customs authority shall calculate the tax payable in proportional to the imposed number, and notify the result to the taxpayer.

c) Specific procedure:

c.1) Identify taxable goods as guided in Clause 2 of this Article;

c.2) Decide the method tax imposition in accordance with Article 34 of the Decree No. 83/2013/NĐ-CP and:

c.2.1) If the total tax payable is determined:

- Check and determine criteria for tax calculation (quantity, value, exchange rate, origins, numbers, tax rate) in accordance with legislation on taxation and relevant laws;

- Calculate the total tax payable, the difference between the tax payable and the tax stated, calculated and paid (if tax has been paid) by the declarant;

- Issue a decision on tax imposition and a decision on penalties for administrative violations (if any).

c.2.2) If relevant aspects are determined as the basis for calculating total tax payable:

- Verify the accuracy and legitimacy of the factors;

- Check and determine criteria for tax calculation (quantity, value, exchange rate, origins, numbers, tax rate) in accordance with legislation on taxation and relevant laws; If the time and/or criteria for calculating tax on the same kind of goods, of which the purpose is changed,  in multiple customs declarations, the tax imposed is the average tax according to effective legislative documents when the declarations are registered.

- Calculating tax payable, the difference between the tax payable and the tax stated, calculated and paid (if tax has been paid), and late payment interest according to Article 131 of this Circular.

- Issue a decision on tax imposition and a decision on penalties for administrative violations (if any).

7. Responsibilities of the customs authority

a) The customs authority shall issue a decision on tax imposition (the form No. 01/QĐAĐ/2013 in Appendix II to this Circular) and send it to the taxpayer within 08 hours since it is signed;

b) If the tax imposed by the customs is larger than the tax payable, the customs shall return the overpaid amount;

c) If the tax imposition is incorrect, the customs authority shall issue a decision to annul the decision on tax imposition shall be made (the form No. 02/HQĐAĐ/2013 in Appendix II to this Circular) and provide compensation for the taxpayer, or a decision to settle complaints of competent authorities or judgment, decision of the court.

8. Responsibilities of the taxpayer:

a) The taxpayer shall pay sufficient tax and tax arrears imposed by the customs in accordance with Article 107, Article 108, and Article 110 of the Law on Tax administration, which are amended in Clause 33, Clause 34 and Clause 35 Article 1 of the Law on the amendments to the Law on Tax administration No. 21/2012/QH13.

The taxpayers that violate legislation on taxation shall carry penalties. The time limit for imposing penalties for violations against the laws on taxation is specified in Article 110 of the Law on Tax administration, amended in Clause 35 Article 1 of the Law on the amendments to the Law on Tax administration No. 21/2012/QH13 and the Government’s regulations on penalties for administrative violations pertaining to customs.

b) If the taxpayer does not concur with the decision on tax imposition made by the customs, the taxpayer must pay tax and is entitled to request the customs to provide explanation, file a complaint or a lawsuit against the tax imposition as prescribed by law on complaints and lawsuits.

Article 26. Settlement of overpaid tax, late payment interest, and fines

1. Tax, late payment interest, and fines are considered overpaid if:

a) The tax, late payment interest or fine that has been paid is larger than the amount payable within 10 years from the day on which those amounts are paid to government budget, and shall be offset against the outstanding tax, late payment interest, or fine, even against other taxes, or be offset against the amounts payable in the next time; or be refunded if the taxpayer owes no debt (except for the case in which penalty is not exempt according to Clause 2 Article 111 of the Law on Tax administration;)

b) The taxpayer receives refunds of export tax, import tax, VAT, excise duty, environmental protection tax, protection tax, anti-dumping tax, anti-subsidy tax.

2. The procedure for settling refunded tax mentioned in Point b Clause 1 of this Article is guided in section 6 Chapter V of this Circular.

3. The overpaid tax, late payment interest, and fine mentioned in pt a Clause 1 of this Article shall be settled as follows:

a) An application consists of:

a.1) A written request for settling overpaid tax, late payment interest, and fines specifying the overpaid amounts, the amounts payable, and the amounts paid, the reasons for overpayment: 01 original copy;

a.2) The customs dossier, other documents related to the overpaid tax, late payment interest, fines: 01 photocopy;

a.3) Receipts for payments of tax, late payment interest, fines: 01 photocopy enclosed with the original for comparison.

b) The customs authority that receives the overpaid tax, late payment interest or fine shall receive and check the documents submitted by the taxpayer, compare them to the original customs dossier they keep, verify the consistency, legitimacy, accuracy, and validity of such documents, and:

b.1) If the tax, late payment interest or fine that is paid is really larger than the amount payable and the statement of the taxpayer is accurate, the customs authority shall issue a decision to refund the overpaid tax, late payment interest, or fine (the form No. 03/QĐHT/2013 in Appendix II to this Circular;

a) The tax, late payment interest or fine that is paid is larger than the amount payable but the statement of the taxpayer is inaccurate, the customs authority shall notify the taxpayer in writing and issue a decision to refund the actual overpaid amount;

b.3) The tax, late payment interest or fine that is paid is not larger than the amount payable; the customs authority shall notify the taxpayer in writing, specifying the reasons.

c) The customs authority shall process the application in Point b of this Clause within 05 working days from the day on which sufficient application for refund of overpaid tax, late payment interest, or fine is received;

d) Based on the decision on refunding overpaid tax, late payment interest, or fine, the customs authority shall refund such amount to the taxpayer and append a stamp on the original customs declaration submitted by the taxpayer, specifying: “Overpaid tax, late payment interest, fine of ... VND are refunded under the Decision No. ... dated ...  (the form No. 14/MDHT/2013 in Appendix II to this Circular, and make 01 photocopy of the settled declaration together with the application for tax refund, return the original customs declaration to the taxpayer, and follow the procedure in Article 130 of this Circular.

4. The customs authority that receives the overpaid tax, late payment interest or fine shall decide to refund of such overpaid amount to the taxpayer.

5. The settlement of overpaid VAT is guided in Clause 4 Article 130 of this Circular.

Article 27. Putting goods into storage

1. For exported and imported goods that need verifying to decide whether they are allowed to be exported or imported, if the declarant wishes to put them into storage, then:

a) The Director of the Sub-department of customs where the declaration is registered shall allow the declarant to store goods at the locations mentioned in Point b.1 Clause 2 of this Article. The declarant is responsible for preserving the status quo of goods while awaiting verification result.

b) Based on the verification result, the customs officer shall grant clearance or request the Director of the Sub-department of customs to resolve.

2. For imported goods that need undergoing quality inspection, quarantine, medical inspection, food safety inspection (hereinafter referred to as specialized inspection).

a) Goods that need undergoing quarantine:

Quarantine shall be carried out at the checkpoint. If quarantine must be carried out at an inland quarantine post, the customs authority shall allow the goods owner to send goods to the quarantine post based on the certification of the quarantine agency on the quarantine registration form or the note of provisional plant quarantine result (for goods derived from plants) or the permit to transit goods (for aquaculture products) or other papers. The quarantine agency shall monitor and supervise goods during the transport, quarantine, and preservation while awaiting quarantine result as prescribed by the Ministry of Health and the Ministry of Agriculture and Rural Development.

b) Goods that need undergoing food safety inspection and quality inspection:

b.1) The Director of the Sub-department of customs where the declaration is registered shall allow the declarant to put their goods into storage at:

b.1.1) The checkpoint where goods are imported.

b.1.2) An ICD, bonded warehouse, or concentrated inspection place for exported and imported goods under the supervision of the customs authority if the declarant wishes to put their goods into storage and is permitted by the specialized inspection agency.

b.1.3) The location of inspection shall be decided in writing by the specialized inspection agency:

If the specialized inspection cannot be carried out at the checkpoint, they must be sent to constructions or factories for installation, or sent to the specialized inspection agency. If the specialized inspection agency makes a written request for permitting the declarant transport goods to such location and monitor them until the customs authority certifies the information, the Sub-department of customs at the checkpoint shall transfer goods to the declarant for transport to the location requested by the specialized inspection agency.

b.2) Responsibilities of the declarant:

b.2.1) Transit goods to the storage location and transfer them to the Sub-department of customs in charge of the storage location, or transport goods to the location of inspection at the request of the specialized inspection agency.

b.2.2)  When the specialized inspection agency needs to break the seal for specialized inspection, the declarant shall request the Sub-department of customs in charge of the location to break the seal, monitor goods and seal them after the inspection is finished.

b.3) Responsibilities of the Sub-department of customs where the declaration is registered:

b.3.1) Seal the means of transport or goods;

b.3.2) Issue a transfer record to the Sub-department of customs in charge of the storage location or to the specialized inspection agency if goods are sent to the inspection location at the request of the specialized inspection agency.

b.3.3) Monitor the customs dossiers of shipments sent to the storage location until they are granted clearance.

b.4) Responsibilities of the Sub-department of customs in charge of the storage location:

b.4.1) Receive the transfer record from the Sub-department of customs where the declaration is registered to monitor goods in storage while awaiting specialized inspection or inspection result.

b.4.2) Supervise the goods, the warehouse or depot where goods are stored while awaiting inspection result until goods are granted clearance.

b.4.3) Permit the declarant to receive goods after a certification of clearance is made by the Sub-department of customs where the declaration is registered.

c) The customs management of goods that must undergo both quarantine and food safety inspection is similar to that of imported goods that must undergo quarantine mentioned in Point a Clause 2 of this Article.

d) Processing specialized inspection result:

d.1) If the specialized inspection result is satisfactory for import, the customs officer where the declaration is registered shall certify the clearance of goods in accordance with Clause 2 Article 29 of this Circular.

d.2) If conditions for import are not satisfied:

d.2.1) Recycling: based on the conclusion given by the specialized agency which permits the recycling of goods, the customs officer shall certify that “Goods are recycled under the decision No. ... dated ... " on the customs declaration and permit goods to take goods to recycling. If the shipment is stored in an isolated area or a warehouse, the recycling shall comply with the decision of a competent authority.

After the recycling, if the specialized inspection agency concludes that the conditions for import are satisfied, the customs officer where the declaration is registered shall certify the clearance. If the conditions for import are not satisfied, goods shall be handled under the guidance in Point dd Clause 2 of this Article.

d.2.2) Compulsory destruction: based on the conclusion of the specialized agency about the compulsory destruction of goods, the customs officer shall certify that “Goods are destructed under the decision No. … dated … and Destruction record dated … “ on the customs declaration to complete the customs procedures.

d.2.3) Compulsory re-export: based on the conclusion of the specialized agency about the compulsory re-export of goods, the Sub-department of customs that carries out the import procedure shall carry out the procedure for re-exporting goods as prescribed.  After the procedure for re-export is completed, the number and date of the decision on compulsory re-export shall be written on the declaration of imported goods, and the decision on compulsory re-export shall be kept together with the import dossier of the shipment.

The customs authority shall cooperate with the specialized agency in providing information, customs dossier, participate in the advisory council, and resolve other tasks on request.

The regulations on putting goods into storage in this Article are also applicable to exported and import goods that follow electronic customs procedures specified in Article 15 of the Circular No. 196/2012/TT-BTC dated November 15, 2012 of the Ministry of Finance.

Article 28. Release of goods

1. Goods that are permitted to be exported or imported but need valuating, verifying, analyzing or classifying to accurately calculate tax payable shall be released after the goods owner has discharged their tax liability or provided with tax payment guarantee by a credit institution.

After the result of valuation, verification, analysis, or classification is given, the Director of the Sub-department of customs where the declaration is registered shall appoint a customs officer to check and recalculate tax, impose penalties for administrative violations (if any) and certify the clearance of goods as prescribed in Article 29 of this Circular.

If goods are granted clearance based on the result of verification, analysis, or classification, such result is used for the shipment of the same category of goods that follow the import procedure in the same Customs Department. This guidance is not used for verification of goods quantity.

The taxpayer shall pay a late payment interest on the increase of tax (if any) after having the result of valuation, analysis, or classification according to Article 106 the Law on Tax administration, which is amended in Clause 22 Article 1 of the Law on the amendments to of the Law on Tax administration No. 21/2012/QH13, and Article 131 of this Circular.

2. If the goods owner carries a fine imposed by the customs authority or a competent authority, clearance shall be granted after the goods owner pays the fine or has the fine payment guaranteed by a credit institution.

3. The Director of the Sub-department of customs where the declaration is registered shall decide the release of goods.

Article 29. Customs clearance of goods

1. Goods shall be granted clearance in the cases below:

a) The customs procedure has been completed;

b) The Director of the Sub-department of Customs allows the late submission of some documents in the customs dossier;

c) Exported and imported goods are eligible for the tax payment deadline mentioned in Clause 11 Article 1 of the Law on the amendments to the Law on Tax administration and guidance in Article 20 of this Circular, or the payment of tax or tax arrears that must be paid before receiving goods is guaranteed by a credit institution.

d) The goods that must undergo specialized inspection shall be granted clearance the following papers are available:

d.1) A notice of exemption from inspection; or

d.2) The inspection result that meets the requirements for imported goods imposed by the specialized inspection agency; or

d.3) The permission for import given by a specialized agency or a competent authority.

dd) Exported goods are exempt from tax, not subject to tax or eligible for 0% tax;

e) Goods imported to serve national defense and security shall be granted clearance when:

e.1) The Ministry of Public Security or the Ministry of National Defense certifies in writing that goods are imported to serve national defense and security, eligible for consideration of import tax exemption, and not subject to VAT;

e.2) Excise duty, environmental protection tax and other taxes are sufficiently stated and paid as prescribed by law (if any).

g) Imported goods serving prevention and suppression of natural disaster, epidemics, and emergency assistance shall be granted clearance when:

g.1) The managing Ministry certifies in writing that goods are to serve prevention and suppression of natural disaster, epidemics, and emergency assistance.

g.2) Relevant taxes are sufficiently stated and paid.

h) Imported goods being humanitarian aid and non-refundable aid shall be granted clearance when a notice of aid receipt made by the managing Ministry is presented.

2. The power to decide clearance:

a) The customs officer that registers the customs declaration shall decide the clearance of goods exempt from physical verification;

b) The Director of the Sub-department of Customs that appoints customs officers to carry out physical verification of goods shall decide the clearance of goods that must undergo physical verification.

Article 30. Basis for certifying that goods are exported

1. The goods that are exported through a checkpoint at sea or inland waterway, the basis is the declaration of exported goods that have undergone customs procedure and certified by the Sub-department of Customs at the checkpoint that “Goods were under customs supervision” and the bill of lading of the goods loaded on to the vehicle for export.

2. The goods that are exported through a checkpoint by air or by railway, the basis is the declaration of exported goods that have undergone customs procedure and certified by the Sub-department of Customs at the checkpoint that “Goods were under customs supervision”, and the note of transport that confirms goods are loaded on the means of transport.

3. Goods that are exported through a checkpoint by land, river, transshipment port, transshipment zone, goods supplied for outbound ships, airplanes, exported goods that are transported together with outbound passengers by air (without the bill of lading) the basis is the declaration of exported goods that have undergone customs procedure and is certified by the Sub-department of Customs at the checkpoint that “GOODS ARE EXPORTED”.

4. For exported goods that are sent to the bonded warehouse, the basis is the declaration of exported goods that have undergone customs procedure and is certified the Ministry of Health he Sub-department of customs in charge of the bonded warehouse that “GOODS ARE SENT TO THE BONDED WAREHOUSE”.

5. For goods transited from the bonded warehouse to the checkpoint of export, the basis is the declaration of goods moved in and out of the bonded warehouse, the record on the transfer of goods being moved to another checkpoint, and the manifest of goods being moved from the bonded warehouse to the checkpoint of export, which is certified by the customs at the checkpoint of export.

6. For exported goods that are sent to a CFS, the basis is the declaration of exported goods that have undergone customs procedure and is certified by the Sub-department of Customs in charge of the CFS that “GOODS ARE SENT TO CFS”, the manifest of goods being moved from the CFS to the checkpoint of export; the bill of lading or an equivalent document.

7. For goods sold to the free trade zone from domestic areas, the basis is the declaration of exported goods have ahs undergone customs procedure and is certified by the customs officer at the free trade zone that “GOODS IN FREE TRADE ZONE”.

8. For goods sold by an export processing company to a domestic company, and goods sold by a domestic company to an export processing company, the basis is the customs declaration of domestic export-import that has undergone customs procedure.

9. For goods exported or imported domestically, it is the customs declaration of domestic export-import that has undergone customs procedure.

Article 31. Annulment of customs declaration

1. The cases in which the customs declaration is annulled:

a) Customs procedure is not completed after 15 days from the day on which the declaration is registered according to Clause 1 and Clause 2 Article 18 of the Law on Customs, unless imported goods must wait for the result of inspection/verification from the specialized agency;

a) Customs procedure is completed but imported goods do not arrive at the checkpoint of import or the exported goods are not under the supervision of the customs after 15 days from the day on which the declaration is registered.

c) The declarant shall request the annulment of the registered customs declaration in the following cases:

c.1. The declarant makes multiple declarations for one imported or exported shipment;

c.2. The goods are under customs supervisor but the declarant does not export them;

2. Procedure for annulling a customs declaration:

a) Cross-out the customs declaration with a pen, append signature and officer’s seal on the annulled customs declaration;

b) Update on the system: this declaration is annulled;

c) Put the annulled customs declaration in storage in cardinal order.

3. The Director of the Sub-department of Customs where the declaration is registered shall consider the annulment of registered declarations.

Article 32. Examining customs dossiers

The examination of the customs dossier shall be carried out after clearance is granted, and be completed within 60 days from the clearance.

The General Department of customs shall provide guidance on examining customs dossiers.

Article 33. post-clearance inspection

The guidance on post-clearance inspection is provided in part VI of this Circular.

Chapter II

SOME GUIDELINES ON CUSTOMS PROCEDURES FOR EXPORTED AND IMPORTED GOODS

Section 1. CUSTOMS PROCEDURES FOR IMPORTING RAW MATERIALS FOR EXPORT PRODUCTION

Article 34. Raw materials imported for export production

Raw materials imported for export production include:

1. Raw materials, semi-finished products, components, knock-down kits that participate in the production process to make up the exported products;

2. Raw materials that participate in the process of export production but are not transformed into products or do not make up the products.

3. Imported finished products that are fixed on exported products or packed with exported uniform goods are made of imported or domestic raw materials;

4. Raw materials for making packages or packages of exported products;

5. Imported raw materials for repair, recycling exported products;

6. Sample goods imported for export production, which must be returned to the foreign customers after the contract is finished.

Article 35. Exported products

1. Exported products include:

a) Products that are completely made of raw materials imported for export production;

b) Products that are made of:

b.1) Raw materials imported for export production and domestic raw materials; or

b.2) Raw materials imported for export production and raw materials imported for domestic sale.

c) Products that are completely made of raw materials imported for domestic sale.

2. Raw materials imported for domestic sale may be used for export production if the period from the day on which the customs declaration of imported raw materials is registered to the day the declaration of exported finish products made of such raw materials is registered does not exceed 02 years.

3. Products made of raw materials imported for export production may be exported by the importer of raw materials or may be sold to another exporter.

Article 36. Customs procedure for importing raw materials

1. Customs procedure locations:

The company shall register raw materials for export production and follow the customs procedure for importing raw materials according to the list registered at one of the Sub-departments of Customs below:

a) The Sub-department of Customs affiliated to a Customs Department of the province where the factory is situated;

b) If the company is a corporation that has a unit specialized in importing and supplying raw materials for other units, or has factories in multiple province, the company may choose a Sub-department of Customs where its factory is situated or the Sub-department of Customs at the checkpoint of import to carry out the customs procedure.

These regulations are applicable to the companies that follow electronic customs procedures according to the Circular No. 196/2012/TT-BTC dated November 15, 2012 of the Ministry of Finance.

2. Procedure for registering imported raw materials

a) Based on the export production plan, the company shall register raw materials imported for export production with the customs authority by filling the Registration sheet (the form No. 22/DMNVL-SXXK in Appendix III to this Circular).

b) The registration shall be applied for when the procedure for importing the first shipment of raw materials is carried out.

c) The company shall complete the Registration sheet of imported raw materials; where:

c.1) Names are the names of all raw materials used for export production. Such raw materials may be imported under one or multiple contracts.

c.2) Goods numbers are the numbers of raw materials according to the current import tax table.

c.3) The company shall determine the numbers of raw materials under the guidance of the Sub-department of Customs.

c.4) The units of measurement are specified in the List of Vietnam’ exports and imports.

c.5) The names, numbers of goods, units, numbers of raw materials in the registration sheet, the customs dossier must be consistent from the import of raw materials until the report on tax settlement, refund or cancellation of import tax is made.

3. Carry out inspection at the factory (hereinafter referred to as site inspection) to apply deadline for paying tax in Article 20 of this Circular:

a) The time to submit a commitment to have an appropriate factory for export production:

The company shall submit the commitment before the procedure for importing the first shipment of raw materials for export production is carried out at the Sub-department of Customs.

The customs authority shall receive the commitment submitted by the company and update information about the factory on the database.

b) Cases in which site inspection is compulsory:

b.1) The company may apply the 275-day time limit for paying tax to the first time nationwide;

b.2) The company registers the import declaration at another Sub-department of Customs than that of the producer;

b.3) The company entrusts the import

b.4) The existence or suitability for the raw materials imported for export production of the factory is questionable based on the risk management result. Assess the adherence to law of the company under the guidance of the General Department of Customs.

c) Time to carry out site inspection:

The site inspection shall be carried out after 10 working days from the clearance or release of the first shipment of raw materials for export production. The site inspection shall be done within 03 working days. If the factory is not in the area under the management of the Sub-department of Customs that carries out the import procedure, the inspection shall be done within 05 working days.

d) The power to decide a site inspection: the Director of the Sub-department of Customs where the procedure for importing raw materials is carried out shall send a 2-day advance notice to the company.

dd) Site inspection contents:

dd.1) Verify the address of the factory in the commitment or information about the address of the factory via the local police department, tax authority, etc.

dd.2) Verify the legal ownership of the premises, machinery, and equipment of the factory:

dd.2.1) Verify the papers proving the legal rights to use premises.

dd.2.2) Verify the ownership and rights to use machinery and equipment at the factory.

Verify the import declarations of machinery and equipment  (if they are imported), receipts (if they are purchased at home), or finance lease contract (if any). The period of the finance lease contract must be equal to or longer than that of the export contract;

dd.3) Verifying the capability of production, capacity of the production line, the number of workers to assess the suitability for the products and amount of raw materials imported for export production.

e) Record on site inspection:

At the end of the inspection, the customs officer shall make a record on site inspection. The record must truthfully reflect the inspection and provides a conclusion about the inspection, which specifies:

e.1) The company has premises, the machinery and equipment that are suitable for the raw materials imported for export production as stated in the commitment, or

e.2) The company does not have premises, the premises are hired, or the machinery and equipment are not suitable for the raw materials imported for export production.

 In this case, tax arrears shall be collected similarly to goods imported for sale.

The record must bear the signature of the customs officer that carries out the inspection and the signature of the legal representative of the inspected company.

4. The customs procedure is similar to that for commercial imports guided in Chapter I part II of this Circular.

Article 37. Procedure for notifying, adjusting estimated quantity of exported products (hereinafter referred to as quantity) and registering exported products

1. The location for notifying, adjusting quantity and registering exported products: at the Sub-department of Customs where the procedure for importing raw materials is carried out.

2. Quantities of exported products include:

a) Material consumption is the reasonable amount of raw materials necessary for the production of an exported product;

b) Supplies consumption is the amount of supplies that are used for the production of an exported product;

c) “Material or supplies wastage ratio” is the amount of materials or supplies that are lost, including natural loss, wastes and scrap (except for the wastes and scrap that are used), expressed as percent (%) of material consumption or supplies consumption.

The methods for calculating quantity and average quantity are similar to that applied to processing under the guidance of the Ministry of Finance.

3. Notification of quantity:

a) Responsibilities of the company:

a.1) Estimate quantity for export production.

a.2) Notify the quantity of primary materials:

Primary materials are materials that make up the most part of the product. The company shall decide the quantity of primary materials and notify it to the customs authority (the form No. 23/TBĐM-SXXK in Appendix III to this Circular), specifying the product specifications.

When notifying the quantity, the company shall submit 01 diagram of product design or production process (if any) or pattern diagrams (for garment and footwear) to the customs authority.

a.3) The notification of quantity shall be kept at the company and presented at the request of the customs authority.

b) Responsibilities of the customs authority:

b.1) The customs authority shall finish receiving the notification of quantity within 01 hour from submission of the quantity notification. If the notification does not provide sufficient specifications as prescribed in Point a.2 of this Clause, it shall be rejected and the company shall be requested to supplement it;

b.2) The notification of quantity,  diagram of product design or production process (if any) or pattern diagram, to the customs authority shall be kept together with the customs dossier;

b.3) Apart from periodic inspections, surprise inspections shall be carried out if the truthfulness of the quantity notified to the customs authority is questionable.

The inspection of quantity is similar to that of processing under the guidance of the Ministry of Finance.

3. The quantity shall be notified before or during the registration of the declaration of the first exported products in the notification of quantity.

4. Adjustment of quantity

a) If the actual quantity is changed during the production, the company shall provide a written explanation and suggest the adjustment of quantity of the pLU codes, which was notified to the customs authority.

b) The quantity shall be adjusted before or while following the procedure for exporting the shipment that has adjusted quantity.

c) Adjusting quantity after exporting products:

c.1) Cases of adjustment:

c.1.1) Miscalculation (incorrect calculation method, unit, punctuation, result);

c1.2) Changes in quality of raw materials, conditions for export production that lead to changes in the quantity;

c.2) Conditions for quantity adjustment:

c.2.1) The specifications, diagram of product design or pattern diagram are still kept by the customs authority;

c.2.2) The company provides ample evidence (wastes, scrap, invoices related to the shipment of which the quantity is adjusted) and the customs authority is able to verify the truthfulness, accuracy and legitimacy of the request for permission for quantity adjustment;

c.3) The quantity shall be adjusted before the company submits the application for tax refund or tax cancellation.

c.3) The company shall:

c.3.1) Make and send a written request for permission for quantity adjustment to the customs authority, specifying the reasons for adjustment.

c.3.2) Present sufficient related documents for the customs authority to check and compare.

c.3.3) Adjust the quantity in accordance with inspection result given by the customs authority.

c.4) The customs authority shall:

c.4.1) Receive the application for permission for quantity adjustment made by the company;

c.4.2) Check the conditions for quantity adjustment:

c.4.3) Approve the adjusted quantity if the company satisfies the conditions for quantity adjustment after the export.

c.4.4) Verify the quantity: examine every case in which the quantity increased in comparison to the quantity notified to the customs authority; carry out inspection if the increase in quantity is questionable. The customs authority shall request verification by a specialized verifying organization if it fails to verify the quantity.

5. Tasks of the customs authority:

a) Receive the notification of quantity and the registration sheet of exported products;

b) Verify the quantity notified by the company under the guidance on verifying quantity of outward-processed goods

6. The company that shall apply for the registration of exported products before the procedure for exporting the first shipment (the form No. 24/DMSP-SXXK in Appendix III to this Circular).

7. Where raw materials are imported for producing domestic goods but an export market is found, thus such raw materials are used for export production, then the quantity adjustment shall comply with the guidance in this Article.

8. Where the company notifies the quantity and registers exported products at another Sub-department of Customs from the Sub-department of Customs where raw materials are imported, the notification of quantity and registration of exported products shall be carried out as follows:

a) Location for quantity notification and registration of exported products:

a.1) The quantity notification and registration of exported products mentioned in Point b.2 Clause 1 Article 35 of this Circular shall be carried out at the Sub-department of Customs where the procedure for import serving export production is carried out.

a.2) For the exported products mentioned in Point c Clause 1 Article 35 of this Circular: the company may choose one of the Sub-departments of Customs that carry out the procedure for importing raw materials for sale but are used for export production.

b) The company shall send a written notification of quantity to the Sub-department of Customs that it chooses. The notification must specify: names and categories of raw materials in each declaration of import for export production (specifying the numbers, symbols, dates of declarations, and the Sub-departments of Customs that carry out the procedure).

After the procedures for quantity notification and registration of exported products are completed, the Sub-department of Customs shall send notifications to the other Sub-department of Customs (specifying the names of raw materials, numbers of the declarations of raw materials used for export production) together with the photocopies of the quantity notification and the list of exported products.

Article 38. Customs procedure for exporting products

1. If the procedure for export is carried out at the Sub-department of Customs where the procedure for importing raw materials or another Sub-department of Customs, the company shall a written notification (the form No. 25/TBXKSP-SXXK/2013 in Appendix III to this Circular) to the Sub-department of Customs where the procedure for importing raw materials before initiating the procedure for export for calculating the consumption of imported raw materials, tax refund or tax cancellation.

For the exported products that are made of both raw materials imported for sale and raw materials imported for export production, or exported products that are completely made of raw materials imported for domestic sale, the company might not notify the Sub-department of Customs where the declaration of raw materials imported for sale is register if the company registers the declaration of exported products at the Sub-department of Customs where the declaration of raw materials imported for export production is registered, or at one of the two Sub-department of Customs where raw materials are imported for domestic sale.

For exported products that are made of from both raw materials imported for sale and raw materials imported for export production, when registering the export declaration at another Sub-department of Customs than the Sub-department of Customs where raw materials are imported for sale and for export production, only a written notification shall be sent to the Sub-department of Customs where the declaration of imported raw materials for export production is registered.

2. The customs procedure is similar to the customs procedure for commercial exported goods guided in Chapter I Part II of this Circular.

Article 39. Settlement of the consumption of imported raw materials

1. Rules for settlement:

a) The declaration of imported raw materials must be available before the declaration of exported products.

b) A declaration of imported raw materials may be used for multiple settlements.

c) An export declaration is used for only one settlement.

In some cases such as a shipment is …, the export production uses raw materials imported for sale that undergo import procedure at another Sub-department of Customs, an export declaration may be … Raw materials that are settled many times shall be handled as prescribed in Article 129 of this Circular.

2. The company shall submit the dossier of imported raw material settlement to the Sub-department of Customs where the import procedure is carried out as prescribed in Article 117 of this Circular.

3. Inspecting the settlement dossier

The customs authority shall receive and check the settlement dossier under the guidance in Clause 7 and Clause 8 Article 127 of this Circular.

4. Procedure for domestic sale of imported raw materials

a) Conditions for domestic sales:

Raw materials imported for export production shall be sold to the domestic market if the company fails to find a market for their products after the foreign party terminates the export contract or in the event of force majeure.

b) Customs procedure:

b.1) The customs procedure for imported raw materials that are sold to the domestic market shall be carried out at the initial Sub-department of Customs.

b.2) The company shall send a written request for the permission for domestic sale, Specifying the quantity, category, import declarations, etc, and reason for domestic sale.

b.3) The head of the Sub-department of Customs shall consider giving permission if the conditions in Point a Clause 4 of this Article are satisfied.

b.4) After the head of the Sub-department of Customs gives the permission, the declarant shall make a new customs declaration and follow the procedure for commercial import; policies on taxation and import management  shall apply when registering the declaration of domestic sale (unless all management policies are implemented when goods are first imported).

b.5) The Sub-department of Customs shall carry out the import procedure. The goods being sold to the domestic market must undergo physical verification to make sure they are conformable with the information on the initial import dossier.

5. The wastes and scrap shall be destructed at the premises of the declarant in accordance with law and under the supervision of the customs authority. If wastes and scrap are transported to another location for destruction, the guidance on goods of export processing companies in Article 49 of this Circular shall apply.

Article 40. Customs procedure for products sold to another exporter

1. The company that imports raw materials for export production shall follow the import procedure, notify the quantity, and report the use of imported raw materials in accordance with this Circular.

2. The company that directly exports products shall follow the procedure for exporting products in accordance with this Circular. The export declaration shall be registered as export production, specifying that “The products are made of raw materials imported for export production” and the name of the seller.

Section 2. CUSTOMS PROCEDURES FOR TEMPORARILY IMPORTED GOODS AND GOODS IN TRANSIT

Article 41. Customs procedure for temporarily imported goods

Customs procedure for temporarily imported goods defined in this Circular (except for some categories of goods in the Circular No. 05/2013/TT-BCT dated February 18, 2013 of the Ministry of Industry and Trade, and commercial petroleum products temporarily imported that follow guidance of the Ministry of Finance) shall comply with regulations on commercial exports and imports. Some additional contents are guided as follows:

1. Customs procedure for temporary import

a) Location for customs procedure:

The customs procedure for temporary import of goods shall be carried out at the Sub-department of Customs at the checkpoint where temporarily imported goods is stored.

b) Customs dossier of temporarily imported goods:

Apart from the documents of commercial imports, the trader must register the checkpoints of re-export in box “Notes” on the customs declaration (a List of export checkpoints may be made if goods are re-exported at multiple checkpoints) and submit 01 photocopy of the export contract during the procedure for temporary import.

c) During the temporary import, the customs officer shall compare the export contract with the temporary import dossier, specify the declaration of temporary import, append his signature and seal on the export contract, and return it to the declarant.

2. Customs procedure for re-export

a) Location for customs procedure:

The customs procedure for re-export shall be carried out at the Sub-department of Customs at the checkpoint of temporary import or checkpoint of re-export.

b) Customs dossier for re-export:

b.1) During the procedure for re-export, apart from the documents for commercial exports, the declarant shall specify the declaration of temporary import, on which the re-exported goods are shown” in box “Notes” of the export declaration.

b.2) If the procedure for re-export is carried out at another checkpoint than the checkpoint where goods are temporarily imported, the declarant must submit the following documents apart from the documents mentioned in Point b.1 Clause 2 of this Article:

b.2.1) 01 photocopy of the export contract certified by the customs authority that carried out the procedure for temporary import;

b.2.2) 01 photocopy of the customs declaration of temporary import (the original shall be presented).

c) The checkpoint of re-export: comply with the regulations of the Government and the Ministry of Industry and Trade.

d) The trader that needs to change the checkpoint of re-export written on the export declaration shall follow the guidance in Clause 10 Article 61 of this Circular.

dd) Temporarily imported goods may be re-exported in multiple shipments. If goods are transported in a container, the container must not be divided throughout the transport of goods from the checkpoint of temporary import to the supervision area of the customs authority at the checkpoint of re-export. 

e) The temporarily imported goods that have undergone customs procedure must be gathered at the locations for goods inspection, bonded warehouse at the checkpoint of temporary import or checkpoint of re-export, and shall be exported at the checkpoint within 08 working hours since goods arrive at the checkpoint of export. If the export is suspended or all goods are not exported, the trader shall request the head of the Sub-department of Customs at the checkpoint of export in writing to consider granting an extension for exporting all goods on the next days within the period of storage in Vietnam.

g) If declarant follows the procedure for re-export at another checkpoint than the checkpoint of temporary import, the Sub-department of Customs at the checkpoint of export shall fax the re-export declaration to the Sub-department of Customs at the checkpoint of temporary import at 5.00 PM every day after the customs procedure is completed.

3. Storage period and location

a) Storage period:

a.1) Temporarily imported goods shall be stored in Vietnam in accordance with legislation on management of temporarily imported goods.

a.2) The power to grant extension:

Where the trader sends a written request to the Sub-department of Customs at the checkpoint where the procedure for temporary import of goods is carried out, the head of the Sub-department of Customs shall consider granting an extension of goods storage period in Vietnam in the event of force majeure and the terms of delivery time and condition in the sale contract are changed.

b) Storage location:

b.1) Temporarily imported goods shall be stored at the location for inspecting exported and imported goods and bonded warehouse at the checkpoint of temporary import or checkpoint of re-export. The temporarily imported goods in the list of goods banned form export or imported, or suspended from export or import shall be stored at the checkpoint of temporary import.

b.2) The temporarily imported goods sent to the bonded warehouse must follow the procedure in Article 59 of this Circular; the storage period in the bonded warehouse is the permissible storage period of temporarily imported goods in Vietnam.

4. Customs supervision of goods transported from the checkpoint of temporary import to the checkpoint of re-export

a) The temporarily imported goods that have undergone customs procedure for temporary import shall be sealed, inspected and supervised by the customs authority. For oversize cargos, bulk cargos that cannot be sealed, the Sub-department of Customs at the checkpoint of temporary import shall make a goods transfer record requesting the declarant in writing to preserve the status quo of goods and transport them to the checkpoint of re-export. The record must specify the conditions of goods, the means of transport (hereinafter referred to as vehicle), pictures of goods and the vehicle, and shall be sent to the Sub-department of Customs at the checkpoint of re-export for supervising the export.

b) The goods that are exported through another checkpoint than the checkpoint of temporary import must be sealed. The trader shall comply with the route, stops, time, and checkpoint registered with the customs authority, and preserve the status quo of goods and customs seal.  Goods shall be transported from the checkpoint of temporary import to the checkpoint of re-export within 05 days, except for the case mentioned in Point e.1 Clause 4 of this Article.

c) Responsibilities of the Sub-department of Customs at the checkpoint of temporary import:

c.1) Seal the goods, make 03 records on transfer of temporarily imported goods (the form No. 26/BBBG-TNTX/2013 in Appendix III to this Circular), specifying the information about beginning time, route, and other information as the basis for the customs at the checkpoint of export to receive, verify, compare; seal the customs dossier together with 02 transfer records for the trader to transport goods to the checkpoint of export;

c.2) Fax the transfer record to the Sub-department of Customs at the checkpoint of export before 5.00 PM every day.

c.3) Monitor feedbacks from the Sub-department of Customs at the checkpoint of export. When the deadline for transporting goods is passed (registered by the trader on the transfer record), if no feedbacks are received or the Sub-department of Customs at the checkpoint of re-export notifies that goods have not arrived at the checkpoint of re-export, the Sub-department of Customs at the checkpoint of temporary import shall cooperate with the Sub-department of Customs at the checkpoint of export and the customs control team of the Customs Department where the procedure for temporary import was carried out to find the shipment.

d) Responsibilities of the Sub-department of Customs at the checkpoint of re-export:

d.1) Since the information about the temporarily imported goods in transit is received according to the transfer record faxed by the Sub-department of Customs at the checkpoint of temporary import, the Sub-department of Customs at the checkpoint of re-export shall monitor the information about the shipment being transported to the checkpoint of export.

d.2) After the trader gathers all goods at the checkpoint of export, the customs officer shall check the customs seal, verify information, and request the head of the Sub-department of Customs to sign on 02 transfer records.

d.3) Fax the transfer record to the Sub-department of Customs at the checkpoint of temporary import. If the compliance to legislation on customs of the re-exported shipment is questionable, the head of the Sub-department of Customs at the checkpoint of re-export shall decide the physical verification and process the result similarly to goods being moved to another checkpoint.

d.4) Keep 01 transfer record and send 01 transfer record, which is certified, to the Sub-department of Customs at the checkpoint of temporary import.

d.5) The customs officer shall supervise the re-export until all goods are re-exported, certify on the customs declaration and obtain the signature of the head of the Sub-department of Customs (signature, deal, and date).

d.6) If the goods do not arrive at the checkpoint of re-export when the deadline has passed, before 8.00 AM of the next working days, the Sub-department of Customs at the checkpoint of re-export shall notify the Sub-department of Customs at the checkpoint of temporary import of the incorrect route and time, and cooperate with the Sub-department of Customs at the checkpoint of temporary import in finding the shipment.

dd) Responsibilities of the Customs control team:

Upon the receipt of information about the incorrect route and time, the customs control team shall trace the shipment at the request of the Sub-department of Customs where the declaration is registered if the shipment is in their area, or request cooperate with the Smuggling Investigation and Prevention Department in tracing the shipment if it is outside their area.

e) Responsibilities of the trader and operator of the means of transport (hereinafter referred to as driver):

e.1) Adhere to the route and time certified by the customs authority on the transfer record. If the route or time is different, the declarant/driver shall send a written notification to the Sub-department of Customs where the declaration is registered and the Sub-department of Customs at the checkpoint of export before goods arrive at the checkpoint of export.

e.2) Protect the customs seal throughout the transport. If an accident or force majeure occurs, which breaks the customs seal or upset the status quo of goods, the declarant/driver must take measures to minimize damage and immediately notify the People’s Committee of the commune, ward or town or the nearest Sub-department of Customs to certify the condition of goods in writing.

5. Customs procedure for domestic sale of temporarily imported goods

a) Goods in the list of goods restricted from import made by the Ministry of Industry and Trade may not be sold to the domestic market. If goods are not re-exported or completely re-exported, they must be completely re-exported at the checkpoint of temporary import within 30 days from the deadline for storage in Vietnam.

b) Goods may be sold to the domestic market if they are not re-exported or completely re-exported after the foreign party terminates the sale contract. Customs procedure:

b.1) The trader makes and sends a request for permission for domestic sale of goods to the Customs Department where procedure for temporary import is carried out.

b.2) The Customs Department where procedure for temporary import is carried out shall grant permission if the conditions in Point b.1 Clause 5 of this Article are satisfied.

b.3) After permission is granted by the Customs Department, the trader shall follow the procedure for commercial import and implement the policies on taxation and import management that are effective when the declaration of goods being sold to the domestic market is registered.

Article 42. Customs procedure for goods in transit

1. Goods in transit that are transported from the exporting country to the importing countries without passing a Vietnam’s checkpoint are exempt from customs procedure.

2. Goods in transit that are transported from the exporting country to the importing countries through a Vietnam’s checkpoint but are not sent to a bonded warehouse or transshipment area in a Vietnam’s port shall be supervised by the customs until they are actually exported from Vietnam. For the goods in transit that must obtain a permit from the Ministry of Industry and Trade, the declarant shall submit a photocopy and present the original copy of the License to transit goods to the customs at the checkpoint.

3. Goods in transit that are transported from the exporting country to the importing countries through a Vietnam’s checkpoint and sent to a bonded warehouse or transshipment area at a Vietnam’s port, the customs procedure is similar to that for goods being moved in and out of the bonded warehouse or transshipment area at Vietnam’s ports.

4. Goods in transit shall be moved from Vietnam at the import checkpoint.

5. Goods in transit are exempt from inspection. If compliance with law is questionable, customs inspection shall be carried out in accordance with Article 16 of this Circular.

Section 3. CUSTOMS PROCEDURES IN OTHER CASES

Article 43. Customs procedure for executing processing contracts with foreign traders

1. Customs procedure for executing processing contracts with foreign traders shall be guided by the Ministry of Finance.

2. For finished products used for domestic import, processed goods used as payment for processing, redundant supplies that are sold in Vietnam’s market, a new customs declaration shall be registered as domestic export-import. The trader shall implement policies on management of imported goods and taxation similarly to those applied to imported goods.

Customs procedure shall be guided by the Ministry of Finance.

Article 44. Customs procedure for exporting, importing under a single customs declaration.

1. The registration of single declaration is applicable to every exported and imported goods that satisfy the conditions below:

a) Names of goods on the customs declaration are not changed during the effective period of the single declaration;

b) Goods in the declaration are under the same contract that allows multiple deliveries of goods;

c) The company that owns the goods complies with legislation on customs.

2. Effect of the registered declaration

a) The declaration is effective throughout the effective period of the contract.  The declaration of processed goods that has appendices is effective throughout the effective period of the appendices.

b) The declaration is invalidated ahead of schedule in the following cases:

b.1) Policies on taxation, management of export and import applicable to the articles on the declaration are changed;

b.2) License to export or import, or the contract expires;

b.3) The company has exported or imported all goods on the declaration in reality;

b.4) The company announces the termination of procedure for exporting or importing the complete quantity of goods on the declaration;

b.5) The names, numbers of goods exported or imported are not consistent with those on the customs declaration;

b.6) The company carries coercive measures during the effective period of the declaration.

b.7) During the effective period of the declaration, the company commits violations of law that make the conditions in Point c Clause 1 of this Article unsatisfied.

3. The procedure for exporting or importing under a single declaration shall be carried out at a Sub-department of Customs.

4. Procedure for registering the single declaration

a) The declarant shall complete the declaration and the logbook of exported and imported goods. Some items on the declaration corresponding to each export or import (transport documents, means of transport, etc.) may be left out while completing the single declaration.

b) The customs dossier consists of:

b.1) The customs declaration of exported or imported goods: 02 original copies;

b.2) The sale contract made in writing or other equivalent forms including: telegram, telex, fax, files: 01 photocopy;

b.3) The license to export or import issued by a competent authority (if it is compulsory): submit 01 photocopy and present the original copy for comparison, or submit an original copy (if goods in the single declaration are all goods permitted to be exported or imported on the license);

b.4) The logbook of exported or imported goods: 02 books (the form No. 27/STD/2013 or the form No. 28/PTD/2013 in Appendix III to this Circular).

c) The Sub-department of Customs shall receive the application, return 01 declaration and logbook to the company.

5. Procedure for an export or import:

a) The declarant shall submit the compulsory papers in the customs dossier (except for the papers submitted when registering the declaration); present the registered customs declaration and the logbook of exported or imported goods.

b) The head of the Sub-department of Customs shall decide the method and level of customs inspection of each export or import based on the method and level of inspection given by the risk management system when the customs declaration is registered and the situation of each export or import.

6. Report on settlement of each export or import.

a) Responsibilities of the company:

a.1) At least 15 working days from the day on which the declaration expires, the company shall make and send a report on each export or import to the Sub-department of Customs;

a.2) The dossier consists of the customs declaration and the logbook.

b) The Sub-department of Customs shall check, compare and verify the actual amount of imported or exported goods.

Article 45. Customs procedure for domestic export or import

1. Interpretation of terms:

a) "Domestic exports or imports” mean goods exported to a foreign trader by a Vietnamese trader (including Vietnamese traders funded by foreign capital and export processing companies), and requested by the foreign trader to be delivered to a Vietnamese trader in Vietnam.

b) “Domestic exporter” (hereinafter referred to as exporter) means the person appointed by the foreign trader to deliver goods in Vietnam.

c) Domestic importer (hereinafter referred to as importer) means the person that buys goods from the foreign trader and is requested by the foreign trader to receive goods in Vietnam from the domestic exporter.

2. Criteria for identifying domestic exports and imports

a) For processed products, leased or borrowed machinery and equipment, redundant raw materials, wastes under processing contracts: follow regulations in Clause 3 Article 33 of the Decree No. 12/2006/NĐ-CP.

b) Goods of foreign-invested companies: follow the guidance of the Ministry of Industry and Trade.

c) Other goods: follow the regulations in Clause 2 Article 15 of the Decree No. 154/2005/NĐ-CP.

3. The customs procedure for domestic export or import shall be carried out at the Sub-department of Customs that is most convenient for the company at its choice or in accordance with regulations on each form.

4. The customs dossier consists of:

a) The declaration of domestic export or import (in Appendix IV; the guidance is provided in Appendix V to this Circular): 04 original copies;

b) The sale contract or processing contracts that requires goods to be delivered to an exporter in Vietnam, the sale contract or processing contract that requires goods to be received by an importer in Vietnam, the borrowing or lease contract: 01 photocopy;

c) Export invoice: submit 01 photocopy and present the original copy for comparison;

d) Other papers depending on the form of export or import (except for the bill of lading).

5. Within 15 days from the day on which the domestic exporter completes the customs procedure and delivers goods, the domestic importer must complete the customs procedure. If the domestic importer fails to complete the customs procedure by the aforesaid deadline, the customs authority shall impose penalties, then carry on the customs procedure.

6. Customs procedure for domestic export:

a) Responsibilities of the importer:

a.1) Provide information about the importer on 04 declaration forms; specify the intended Sub-department of Customs where the import procedure is carried out in box 29 of the declaration of domestic export - import; append the signature and seal;

a.2) Send 04 customs declarations to the exporter.

a.3) After the procedure for domestic import is completed, the importer shall keep 01 customs declaration and send the other customs declaration to the domestic exporter.

b) Responsibilities of the exporter:

b.1) After 04 customs declarations are received, the exporter shall provide information about the exporter on 04 customs declarations;

b.2) Submit the customs dossier to the Sub-department of Customs where the export procedure is carried out;

 b.3) After the export procedure is completed, the importer shall send 03 customs declaration to the importer to carry on the import procedure.

b.4) Receive 01 customs declaration sent by the importer; the customs declaration must bear the certifications, signatures, and seals of 04 parties: the importer, the exporter, the customs authority that carries out the import procedure, and the customs authority that carries out the export procedure.

c) Responsibilities of the Sub-department of Customs where the procedure for domestic export is carried out:

c.1) Receive, register the declarations, decide the method and level of inspection, check tax calculation (for dutiable goods) as prescribed. Seal the samples (if any) and send them to the company for them to present at the request of the customs authority;

c.2) Carry out inspection of goods if needed;

c.3) Certify that customs procedure has been completed, append signatures and officer’s seals on 04 declarations;

c.4) Keep 01 declaration and the documents submitted by the company, return 03 declarations and documents presented by the exporter to the exporter;

c.5) Fax the customs declaration that has completed the export procedure to the import Sub-department of Customs.

7. Customs procedure for domestic import

a) After receiving 03 declarations of domestic export-import, which are certified by the customs authority that carries out the export procedure, the importer shall submit the customs dossier to the Sub-department of Customs where the import procedure is carried out to initiate the procedure for domestic import.

b) Responsibilities of the Sub-department of Customs where the procedure for domestic export is carried out:

b.1) Receiving the customs declaration of export faxed by the Sub-department of Customs that carries out the export procedure;

b.2) Receive the customs dossier submitted by the importer;

b.3) Take the steps in registering the declarations, except for physical verification of goods; check the tax calculation (if any). Certify that customs procedure has been completed, append signatures and officer’s seals on the declarations;

b.4) Keep 01 declaration and the documents submitted by the company, return 02 declarations and documents presented by the company to the company;

b.5) Send a written notification (the form No. 29/TBXNKTC/2013 in Appendix III to this Circular) to the tax authority that monitors the domestic importers, or sent it via the computer network if the Sub-department of Customs that carries out the import procedure and the local tax authority have been connected.

8. The declaration of domestic export - import is valid when:

It bears sufficient information, certifications, signatures and seals of 04 parties: the exporter, the importer the customs authorities that carries out procedures for domestic export and domestic imports.

If the domestic exporter and domestic importer carry out procedure at the same Sub-department of Customs, this Sub-department of Customs shall sign on both parts.

9. The processed products imported domestically for domestic sale shall follow the guidance of the Ministry of Finance.

10. The settlement, refund, and cancellation of tax are guided in Section 6 Part V of this Circular.

Article 46. Customs procedure for goods export and import serving projects of investment

1. The customs procedures for various types of goods export and import serving operation of companies are guided in this Circular.

2. Customs procedure for goods import to form fixed assets; raw materials, components, semi-finished products serving the production in projects provided with incentives:

a) For projects eligible for tax exemption:

a.1) Register the list of imported tax-free goods with the customs authority when importing goods to form fixed assets, or importing raw materials, components, semi-finished products serving production in a project eligible for tax exemption.

The registration procedure is guided in Article 101 of this Circular.

a.2) Import procedure:

a.2.1) The company shall follow the customs procedure for importing goods at the most convenient Sub-department of Customs affiliated to the Customs Department where the list of tax-free goods is registered.

a.2.2) The customs procedure is similar to that for commercial export and import in Chapter I part II of this Circular. Some tasks guided in Article 101, Article 102, and Article 103 of this Circular must be done.

b) For projects not eligible for tax exemption:

The customs procedure is similar to that for commercial import. The company shall follow the procedure at the customs officer where goods are imported or the project is situated. The company shall use the imported goods for the project not eligible for tax exemption in accordance with the purpose written on the certificate of investment.

3. Liquidating, changing the purpose of imported tax-free goods

a) The liquidation and change of purpose of goods eligible for liquidation, the conditions for liquidation, liquidation documents of imported tax-free goods of domestic projects and foreign-invested projects shall comply with the Circular No. 04/2007/TT-BTM dated April 04, 2007 of the Ministry of Trade (now the Ministry of Industry and Trade) providing guidance on export, import, processing, liquidation of imported goods and sale of products of foreign-invested companies.

b) The procedures for liquidating or changing the purpose shall be carried out at the customs authority where the customs declarations of imported tax-free goods are registered.

c) Procedures for liquidation and change of purpose

c.1) The company or the Liquidation board shall send a written notification of the reason for liquidation, change of purpose of names, symbols, quantity, exempted tax corresponding the goods that need liquidating, the numbers and dates of import declarations to the customs authority where the customs declarations of imported tax-free goods are registered;

c.2) If goods are liquidated in the form of export, the company shall make a corresponding export declaration.

c.3) If goods are sold in Vietnam, donated, or destructed, tax shall be declared and calculated on the new customs declaration in accordance with Clause 8 Article 11 of this Circular.  The company shall follow the corresponding customs procedure for import, Implement the policies on taxation and management of imported goods that are effective when the import declaration is registered, unless the company has implemented all policies on import management during the procedure for tax-free import.

If goods are sold to a company (transferee company) that is eligible for exemption of import tax, the tax-free goods must be recorded in the Sheet of tax-free goods issued to the transferee company.

c.4) If goods are destruction, the company shall comply with regulations of environment management agencies.

Article 47. Customs procedure for goods being moved in and out of transshipment ports 

1. Customs procedure for goods moved in and out of transshipment ports for export

a) The transshipment service provider shall make a manifest of goods in transshipped containers (the form No. 30/BKTrC/2013 in Appendix III to this Circular).

b) The customs dossier consists of 02 original copies of the manifest of goods in transshipped containers.

c) If goods moved in and out of the transshipment port are exempt from inspection, the inspecting agency shall check the number of containers, compare the numbers and symbols of the containers and those in the manifest.  If violations of law are suspected, the customs authority shall carries out an inspection.

2. Settling goods in transshipped containers

a) Within 10 days from the day on which all goods are moved out of the transshipment port, the transshipment service provider shall settle goods in the transshipped containers.

b) Every quarter, within 15 days after the reporting period, the transshipment service provider shall send a report to the customs at the transshipment area on the quantity of goods that are moved in, moved out of, and retained in the transshipment area.

3. Goods left at the transshipment port shall be treated as imported goods left at sea ports in accordance with the Circulars of the Ministry of Finance providing guidance on handling goods left at Vietnam’s seaports.

4. Director of the General Department of Customs shall provide guidance on customs management of goods being moved in and out of transshipment ports.

Article 48. Customs procedures for goods moved in and out of free trade zones in economic zones, checkpoint economic zones; vehicles entering, leaving, and passing through free trade zones

1. Rules for customs procedure and customs supervision of goods moved in and out of the free trade zone:

a) Goods moved in and out of the free trade zone must undergo customs procedure and customs supervision. Various customs procedures shall apply to corresponding forms of goods;

b) The following goods might or might not follow the customs procedure in Clause 2 Article 6 of the Regulation promulgated together with the Prime Minister’s Decision No. 100/2009/QĐ-TTg dated July 30, 2009 on the promulgation of the Regulation on operation of free trade zones in economic zones and checkpoint economic zones: stationery, foods, consumables brought to free trade zones by companies from the domestic market to serve office operation and everyday life of officers and workers.

c) The following goods are exempt from customs procedure:

c.1) Goods brought by residents from the domestic market to Lao Bao Special Economic Area and Cau Treo International Checkpoint Economic zone that do not apply 0% VAT as according to Clause 3 Article 9 of the Circular No. 06/2012/TT-BTC dated January 11, 2012 of the Ministry of Finance, providing guidance on a number of articles of the Law on Value-added tax, the implementation of the Decree No. 123/2008/NĐ-CP dated December 08, 2008 and the Decree No. 121/2011/NĐ-CP dated December 27, 2011 of the Government;

c.2) Goods that are products from farming and breeding that are not processed into a finished products brought from Lao Bao Special Economic Area and Cau Treo International Checkpoint Economic Zone to the domestic market, which do not subject to VAT according to Clause 1 Article 4 of the Circular No. 06/2012/TT-BTC dated January 11, 2012 of the Ministry of Finance.

d) Goods brought from Vietnam’s domestic market or other areas on the checkpoint economic zones to free trade zones in checkpoint economic zones may not open customs declarations of exported goods according to the Circular No. 116/2010/TT-BTC dated August 04, 2010 of the Ministry of Finance on amendments to the Circular No. 137/2009/TT-BTC dated July 03, 2009 of the Ministry of Finance providing guidance on some Article of the Prime Minister’s Decision No. 33/2009/QĐ-TTg dated March 02, 2009 on financial policies on checkpoint economic zones.

2. When goods are brought to the free trade zone from abroad, the declarant shall complete the declaration form at the customs officer in charge of the free trade zone and classify them at tax-free goods (except for the articles not provided with tax incentives for imported goods).

When a company in a free trade zone imports raw materials for production or business, it must register the names of products, raw materials, and quantity of raw materials imported for export production with the customs authority. The quantity of raw materials imported for production goods sold inside free trade zones shall be notified before the report on imported-exported-unsold goods (hereinafter referred to as inventory report) is made. The notification of quantity of raw materials imported for export production shall comply with corresponding regulations.

When a company in the free trade zone imports raw materials or components to manufacture products and sell them to the domestic market, the declarant shall register and specify the name, quantity, category and import value of every material and component, names of the products manufactured in the free trade zone and sold to the domestic market when registering the import declaration.

3. Customs procedure for goods brought from the domestic market to free trade zones:

a) The domestic company shall follow the customs procedure at the domestic Sub-department of Customs or the customs officer in charge of the free trade zone. If the customs procedure is carried out by a domestic Sub-department of Customs, goods shall be transported to the free trade zone in accordance with regulations on exported goods being moved to another checkpoint.

The company in the free trade zone shall follow the customs procedure for the corresponding form of import at the customs officer in charge of the free trade zone.

b) The physical verification of goods is similar to that of exported goods. If goods moved into the free trade zone are under the management of another Sub-department of Customs than the customs officer in charge of the free trade zone, the Sub-department of Customs in charge of the free trade zone shall inspect goods if violations of law are suspected.

4. Customs procedure for goods exported to abroad from free trade zones

a) Goods exported from the free trade zone shall follow the corresponding customs procedure.

b) If goods are imported from abroad or the domestic market by a company into the free trade zone, then exported in whole to abroad, the company shall specify that “Goods imported from abroad are exported in whole in the declaration No. ..." or “Goods imported from the domestic market are exported in whole in the declaration No. ..." while following the export procedure, and enclose it with the initial import declaration and the manifest (if any).

5. Customs procedure for goods brought to the domestic market from the free trade zone

a) The company in the free trade zone shall follow the corresponding procedure for form of export; the domestic company shall follow the corresponding customs procedure for the form of import. Export and import procedures shall be carried out at the Sub-department of Customs in charge of the free trade zone.

b) For the domestic company to calculate tax payable when following the import procedure, the company in the free trade zone shall:

b.1) Notify the customs authority of the estimated quantity of imported raw materials and components, which make up the products, before following the export procedure if exported products are manufactured in the free trade zone.

Specify the names, categories of raw materials and components that make up the products in the export declaration while following the export procedure.

b) If goods are imported from abroad or the domestic market by a company into the free trade zone, then exported in whole to the domestic market, the company in the free trade zone shall specify that “Goods imported exported in whole from abroad in the declaration No. ..." or “Goods imported exported in whole from the domestic market in the declaration No. ..." while following the export procedure, and enclose it with the initial import declaration and the manifest (if any).

b.3) The company in the free trade zone shall provide the domestic company with adequate documents and data for the domestic company to calculate tax payable.

6. Goods processing between a company in the free trade zone and a domestic company

a) When a company in the free trade zone hires a domestic company to process goods: the domestic company shall send the processing contract and follow the customs procedure for such contract at the Sub-department of Customs in charge of the free trade zone. The customs procedure is similar to that for processing goods of foreign traders.

a) When a domestic company hires a company in the free trade zone to process goods: the domestic company shall send the processing contract and follow the customs procedure for such contract at the Sub-department of Customs in charge of the free trade zone or at a domestic Sub-department of Customs. The customs procedure is similar to that for hiring foreign partners to process goods.

7. Customs procedure for bringing goods purchased in stores and supermarkets in the free trade zone to the domestic market

a) The customers that buy goods in stores or supermarkets in the free trade zone and bring them to the domestic market shall pay tax on imported goods before taking them out of the free trade zone.

When a customer buys goods eligible for tax exemption in the free trade zone or checkpoint economic zone that exceed duty-free allowance and bring them to the domestic market, the tax on the part exceeding duty-free allowance shall be paid as prescribed by the Prime Minister in the Regulation on operation of free trade zones.

b) The customers that buy goods in stores or markets in the free trade zone shall present their ID cards or passports (if they are foreigners) to the sellers and the customs officers at the gate when goods are brought out of the free trade zone.

c) When selling goods, the seller must issue invoices and have a sale book, specifying names, addresses, ID numbers or passport numbers of buyers; quantity, unit prices and value of goods being sold.

d) Depending on the conditions of the free trade zone, tax on goods purchased in the free trade zone and brought to the domestic market shall be collected in one of the following two methods:

 d.1) The buyer declares and pays tax to the customs at the gate of the free trade zone.

d.1.1) The buyer, before taking goods from the free trade zone, shall enumerate goods subject to tax on the non-commercial declaration, submit the declaration, present the ID card, goods, invoices (the stub held by the buyer) to the customs at the gate of the free trade zone;

d.1.2) The customs at the gate of the free trade zone shall check the ID card presented by the buyer, compare the goods with the customs declaration and invoices. If they are consistent, The customs shall issue a tax receipt, collect tax and remit it to government budget in accordance with law.

d.2) The Sub-department of Customs in charge of the free trade zone authorizing seller to collect tax:

d.2.1) Sellers shall be authorized to collect tax in accordance with Clause 2 Article 3 of the Decree No. 83/2013/NĐ-CP. Responsibilities of the authorized sellers and tax authority are specified in Clause 3 and Clause 4 Article 3 of the Decree No. 83/2013/NĐ-CP.

d.2.2) When bringing goods out of the free trade zone, the buyer shall present his ID card, goods, invoices, and tax receipts to the customs at the gate of the free trade zone;

d.2.3) The customs at the gate of the free trade zone shall check the ID card presented by the buyer, compare the goods with invoices and tax receipts. If inconsistency between the buyer and the ID card, between the ID number on invoices, tax receipts and on the ID card, between the goods presented and goods in the invoices and tax receipts, penalties shall be imposed in accordance with law.

8. Customs supervision of goods being moved in and out of free trade zones

a) The free trade zone must be separate from the outside by barriers and has customs control gates for supervising goods being moved in and out of the free trade zone.

b) Goods moved in and out of the free trade zone to be imported to the domestic market, goods being moved through free trade zones for import to the domestic market or export must go through the customs control gates and be supervised by the customs.

c) When goods are imported from abroad to the domestic market or goods from the domestic market are exported to abroad through a free trade zone, they must go on the route prescribed by the customs and the management board of the free trade zone.

9. The customs procedure and customs supervision of vehicles entering, leaving, or going through the free trade zone (if the free trade zone is connected with a road checkpoint) shall comply with regulations on vehicles entering, leaving, or going through Vietnam.

10. Inventory reports:

a) The companies in free trade zones shall send biannual reports on exported, imported, and unsold goods in the reported period. The report shall be submitted within 15 days from the end of the period.

A report dossier includes:

a.1) The list of declarations of imported raw materials in the reported period: 02 original copies (the form No. 31/HSBC-PTQ/2013 in Appendix III to this Circular);

a.2) The list of declarations of raw materials purchased in the free trade zone in the reported period: 02 original copies (the form No. 32/HSBC-PTQ/2013 in Appendix III to this Circular);

a.3) The list of declarations of exported products in the reported period: 02 original copies (the form No. 33/HSBC-PTQ/2013 in Appendix III to this Circular);

a.4) The list of invoices of products sold in the free trade zone in the reported period: 02 original copies (the form No. 34/HSBC-PTQ/2013 in Appendix III to this Circular);

a.5) The list of raw materials used for the manufacture of exported products that are sold in the free trade zone in the reported period: 02 original copies (the form No. 35/HSBC-PTQ/2013 in Appendix III to this Circular);

a.6) The report on imported-exported-unused raw materials in the reported period: 02 original copies (the form No. 36/HSBC-PTQ/2013 in Appendix III to this Circular);

a.7) The photocopies of invoices for raw materials purchased in the free trade zone in the reported period ((if any);

a.8) The photocopies of invoices for products sold in the free trade zone in the reported period ((if any);

b) The sellers in free trade zones shall send monthly report on exported, imported and unsold goods in the month to the customs authority in charge of the free trade zone. The deadline for submitting the report is the 15th of the next month.

A report dossier includes:

b.1) The list of declarations of goods imported from abroad in the month: 02 original copies (the form No. 37/HSBC-PTQ/2013 in Appendix III to this Circular);

b.2) The list of declarations of goods imported from the domestic market in the month (if any): 02 original copies (the form No. 38/HSBC-PTQ/2013 in Appendix III to this Circular);

b.3) The list of goods purchased in the free trade zone in the month: 02 original copies (the form No. 39/HSBC-PTQ/2013 in Appendix III to this Circular);

b.4) The list of goods sold in the free trade zone in the month: 02 original copies (the form No. 40/HSBC-PTQ/2013 in Appendix III to this Circular);

b.5) The list of exported goods in the month (if any): 02 original copies (the form No. 41/HSBC-PTQ/2013 in Appendix III to this Circular);

b.6) The report on imported-exported-unsold goods in the month: 02 original copies (the form No. 42/HSBC-PTQ/2013 in Appendix III to this Circular);

b.7) The photocopies invoices for goods sold and purchased in the free trade zone in the month ((if any).

c) Processed goods: comply with regulations on processing.

d) The companies that both manufacture and sell goods shall make separate reports on each aspect.

dd) Verifying the inventory report:

dd1) Companies are responsible for the declaration and use of goods.

dd2) The customs authority shall receive the inventory report, which specify the dates of receipts, bear the signatures and seals of the customs.

Based on the assessment of the compliance with law of the companies, the Sub-department of Customs in charge of the free trade zone shall check the probability to assess the compliance with law of companies; inspect unsold goods where necessary. If violations of law are found or imported goods in the free trade zone are found illegally trafficked to the domestic market, penalties shall be imposed in accordance with law.

If goods are imported from the domestic market to the free trade zone and then illegally trafficked back to the domestic market, the customs in charge of the free trade zone shall notify the Departments of Taxation where the domestic company that sends goods to the free trade zone is situated.

Article 49. Customs procedure for exported and imported goods of export processing companies

1. General principles

a) Customs procedures for exported and imported goods of export processing companies apply to both export processing companies inside and outside export-processing zones.

b) Exported and imported goods of export processing companies must go through customs procedures corresponding to the form of export or import. Electronic customs procedures shall comply with the Circular No. 196/2012/TT-BTC dated November 2012 of the Ministry of Natural Resources and Environment if they are prescribed in the Circular.

c) The export processing company may choose whether to follow customs procedure if goods are stationery, foods, consumables (including personal protective equipment: clothes, helmets, shoes, boots, gloves) that are purchased from the domestic market to serve the operation of offices and everyday life of officers and workers.

d) The goods circulated within the export processing company are exempt from customs procedure.

dd) Imported goods of the export processing company may be moved fro the import checkpoint to the export processing company. Imported goods of the export processing company may be moved form the export processing company to the checkpoint of export.

e) The customs in charge of the export-processing zone or the export processing company shall only supervise at the gate if necessary under the decision of the Director of the Customs Department.

g) In a reported period, the export processing company shall notify the consumption of raw materials (including loss ratio) to the customs authority when then submitting the inventory report at the latest.

2. Locations for carrying out customs procedures

a) For exported and imported goods shall be carried out at the Sub-department of Customs that monitors the export processing company.

b) For processed goods between the export processing company and a domestic company: the domestic company shall follow customs procedure at the Sub-department of Customs that monitors the export processing company or the Sub-department of Customs where the factory of the domestic company is situated.

c) For processed goods between two export processing companies: the hired company shall send the processing contract and follow customs procedure at the Sub-department of Customs that monitors the hired company.

3. Customs procedure for exported and imported goods of export processing companies

a) Goods imported from abroad:

a.1) For goods imported to form fixed assets: based on the request for permission to import goods for forming fixed assets made by the Director of the export processing company, which is enclosed with a manifest of goods (specifying names, quantity and categories of goods), the customs authority shall carry out import procedure in accordance with regulations on goods imported under sale contracts. This regulation also applies to the export processing companies that follow electronic customs procedures in Chapter VI of the Circular No. 196/2012/TT-BTC dated November 15, 2012 of the Ministry of Finance.

a.2) For raw materials imported for export production, the export processing company shall follow the import procedure in accordance with regulations on goods imported under sale contracts, except for tax statement.

a.2) For raw materials imported for export production, the export processing company shall follow the import procedure in accordance with regulations on goods imported under sale contracts, except for tax statement.

c) Goods of export processing companies sold to the domestic market:

c.1) For products manufactured and sold to the domestic market by the export processing company, the export processing company and the domestic company shall follow customs procedure and use the declaration of domestic export and import.

c.2) For wastes and scrap allowed to be sold to the domestic market, the domestic company shall follow the import procedure applied to goods imported under sale contracts.

d) For goods sold to the export processing company by a domestic company: the export processing company and domestic company shall follow the customs procedure and use the declaration of domestic export and import.

dd) Processed goods:

dd.1) When a domestic company is hired to process goods by an export processing company, the domestic company shall follow customs procedure in accordance with regulations on processing goods of foreign traders.

dd.1) When a domestic company is hired to process goods by an export processing company, the domestic company shall follow customs procedure in accordance with regulations on processing goods of foreign traders.

dd.3) For processed goods of foreign traders: follow the guidance of the Ministry of Finance.

e) For goods traded among export processing companies:

e.1) Goods traded among export processing companies that are not in the same export-processing zones follow guidance on customs procedure for domestically exported and imported goods (except for conditions for domestic export and import);

e.2) Goods traded among export processing companies in the same export-processing zone are exempt from customs procedure;

e.3) Goods being circulated among export processing companies that are not in the same export-processing zone but belong to the same corporation or a system of companies, they might not go through customs procedure or may go through customs procedure for domestic export and import (except for conditions for domestic export and import). Theses regulations also apply to the export processing companies that follow electronic customs procedures in Chapter VI of the Circular No. 196/2012/TT-BTC dated November 15, 2012 of the Ministry of Finance.

g) For the goods of the export processing company that are sent to the domestic market for repair, the export processing company shall makes a notification of goods names, quantity, reasons, and repair period. The registration of customs declaration is exempt. The customs shall monitor and certify when goods are sent back to the export processing company. If goods are not sent back when the registered repair period is passed, the guidance on changing purposes of goods shall apply.

h) Wastes and scrap shall be destructed in accordance with law and under the supervision of the customs, except they are preliminarily destructed at the export processing company before the official destruction. Theses regulations also apply to the export processing companies that follow electronic customs procedures in Chapter VI of the Circular No. 196/2012/TT-BTC dated November 15, 2012 of the Ministry of Finance.

i) The export processing company that temporarily imports goods to repair then re-exports them shall follow customs procedure for exported goods that are returned, except for tax statement.

4. Reports on imported, exported, and unused raw materials (hereinafter referred to as inventory report)y of export processing companies

a) The export processing company shall submit an inventory report every quarter on the 15th of the first month of the next quarter at the Sub-department of Customs that monitors the export processing company. The favored companies accredited by the standards shall submit the inventory report annually at the end of Q1 of the next year, or every quarter.

b) The inventory report (form No. 43/HSBC-CX/2013 in Appendix III to this Circular): submit 02 original copies.

For consumables that are imported or purchased from the domestic market to serve the production and without specific consumption rates (e.g. cloth or paper for cleaning machinery and equipment, oil and gas for generators, mold-cleaning oil, pens for marking defective products, etc.) or to serve office operation and everyday life of workers of the export processing company:

The export processing company is exempted from classifying them by purpose or source of import, registering by category, making up codes, and submitting monthly inventory report to the customs authority.

The export processing companies outside export-processing zones shall submit reports on total quantity of consumables imported and purchased from the domestic market in the quarter.

Export processing companies are responsible for the statement and proper use of goods.

These regulations also apply to the export processing companies that follow electronic customs procedures in Chapter VI of the Circular No. 196/2012/TT-BTC dated November 15, 2012 of the Ministry of Finance.

c) Verifying the inventory report:

c.1) The customs authority shall receive inventory report sent by the export processing company, append signatures and officer’s seal, and date stamp on the inventory report. Based on the assessment of the compliance with law of the company, the Sub-department of Customs in charge of the free trade zone shall check the probability to assess the compliance with law of the company.

c.2) Within 30 days from the day on which the quarterly report is submitted, or within 60 days from the day on which the annual report is submitted, the Sub-department of Customs that monitors the export processing company shall request the Sub-department of Customs in charge of post-clearance inspection to carry out inspection if trade fraud is suspected.

d) When an export processing company is converted to a normal company and vice versa, the imported assets and goods shall be handled as follows:

d.1) Where an export processing company is converted into a company that is not entitled to export processing benefits:

d.1.1) Liquidate imported assets and goods;

d.1.2) Determine imported assets and goods that are unsold;

d.1.3) Collect tax;

d.1.4) Imported assets and goods shall be liquidated and determined before the conversion.

d.2) Where a company that is not entitled to export processing benefits is converted into an export processing company:

d.2.1) The company shall the quantity of unused raw materials; the customs authority shall check the unsold raw materials and collect tax as prescribed;

d.2.2) Before the conversion, the company shall pay all outstanding taxes and fines to the customs authority. The customs authority shall apply the taxation and customs policies on export processing companies after the company has fulfill tax and customs obligations to the customs authority.

5. Liquidation of machinery and equipment and vehicles used for forming fixed assets.

a) The methods of liquidation, conditions for liquidation, and documents on liquidation of imported tax-free goods shall comply with the Circular No. 04/2007/TT-BTM.

b) The liquidation procedure shall be carried out at the Sub-department of Customs that monitors the export processing company,

c) Liquidation procedure

c.1) The company or the liquidation board shall make a document specifying the reasons for liquidation, names, symbols, quantity, import declaration numbers of the liquidated goods, and then send it to the Sub-department of Customs that monitors the export processing company.

c.2) If they are liquidated in the form of export, the company shall open an export declaration. If they are sold in Vietnam’s market or donated, the company shall open corresponding declarations and pay tax as prescribed.

c.3) If they are destructed, the company shall comply with regulations of the environment management agency under the supervision of the customs authority.

6. Upon the completion of the construction, the export processing company shall submit a report on goods imported for the construction to the customs authority.

The customs authority shall verify the report and handle redundant goods or improperly used goods.

7. customs supervision of wastes of the export processing company transported to another location for destruction

a) The export processing company shall:

a.1) Notify the managing Sub-department of Customs of the time when wastes are taken by the deliverer.

a.2) Wastes shall be transported and destructed in accordance with the Law on Environment protection and its guiding documents.

b) Responsibilities of the managing Sub-department of Customs:

When receiving the notification sent by the export processing company, the managing Sub-department of Customs shall:

b.1) Check the license for management of harmful wastes (the license must be unexpired, the wastes transported must be permitted in the license), the contract for waste transport and treatment;

b.2) Check the wastes before they are taken by the deliverer (wastes must not be mixed with usable scrap or other goods);

b.3) Supervise the loading of wastes to the vehicle; supervise the transport of wastes over the boundary of the export-processing zone or export processing company.

b.4) Make a record on the inspection and supervision, which is certified by the export processing company and the deliverer (specifying the time of inspection and supervision; the supervising and inspecting customs officers, name of the export processing company, representative of the export processing company, the company that executes the contract for waste transport and treatment, the deliverer, numbers of the vehicle, names of wastes, contents of inspection and supervisions, etc.) the record shall be made into 03 copies; each copy is kept by a party.

b.5) The customs authority shall not seal the vehicle that contains wastes when wastes are transported to a location outside the export-processing zones or export processing company for treatment.

c) When receiving the documents on harmful wastes from the waste management service provider, the export processing company (waste discharger) shall send a photocopy of stub No. 4 to the managing Sub-department of Customs. The managing Sub-department of Customs shall inspect the register of waste dischargers, documents on harmful wastes that are kept at the export processing company.

8. Goods of foreign-invested export processing companies shall exercise the rights to export and import in accordance with the Government's Decree No. 23/2007/NĐ-CP dated February 12, 2007 and regulations of the Ministry of Industry and Trade.

The customs procedure, policies on taxation and management of exported and imported goods are similar to those for goods exported and imported under commercial contracts. The Ministry of Finance shall provide additional guidance on exercising the rights to export and import of export processing companies as follows:

a) The export processing company that exercises the rights to export, import or distribute shall do separate bookkeeping. Domestic tax shall be stated under the guidance of the Ministry of Finance.

b) Customs procedure for imported goods of an export processing company that exercises the rights to import:

b.1) Customs procedure is exempt when goods are sold to domestic companies.

b.2) Customs procedure in Point e Clause 3 of this Article shall be carried out when goods are sold to other export processing companies.

c) Customs procedure for goods of an export processing company that exercises the rights to export:

c.1) Goods are purchased from the domestic market to export: follow the guidance in Point d Clause 3 of this Article.

c.2) Goods are purchased from another export processing company for export: follow the guidance in Point d Clause 3 of this Article.

c.3) Goods are exported to abroad: follow the guidance in Point b Clause 3 of this Article. The export processing company shall make tax statement (if any).

9. Customs supervision and inspection of export processing companies that lease warehouses of other companies according to Clause 1 Article 19 of the Decree No. 108/2006/NĐ-CP:

a) The export processing company may lease warehouses inside industrial parks, export-processing zones, hi-tech zones, economic zones under the management of the managing Sub-department of Customs to store raw materials and finished products serving their primary production.

b) Before taking goods to the warehouse, the export processing company must notify the managing Sub-department of Customs of the location, area, infrastructure, and policies on management of goods moved in and out of the warehouse, and the lease period. Goods may only be put into the warehouse after the managing Sub-department of Customs gives a written approval.

c) The export processing company shall manage and monitor goods moved in and out, and send the managing Sub-department of Customs periodic reports on the 15th of the first month of the next quarter on the inventory.

d) Every quarter, the managing Sub-department of Customs shall inspect the condition of goods in the warehouse or carry out surprise inspections if it is suspected that goods are kept in improper warehouses or sold to the domestic market.

Article 50. Customs procedure for goods moved in and out of tax-suspension warehouses

1. Goods moved in and out of the tax-suspension warehouse are raw materials imported for export production of the company that has the tax-suspension warehouse and are temporarily exempt from tax.

The company shall compile a separate customs dossier for the imported raw materials in the tax-suspension warehouse and register the intended quantity of exported products in the year.

2. Customs procedure for imported raw materials in the tax-suspension warehouse is similar to that for raw materials imported for export production. Broken or degenerated goods in the tax-suspension warehouse that fail the production requirements shall be handled in accordance with Article 29 of the Decree No. 154/2005/NĐ-CP.

3. Inventory report:

a) At year’s end (December 31), on January 31 of the next year at the latest, the company shall compile a list of import declarations and total quantity of imported, the export declarations and total quantity of raw materials that make up the products that are exported, re-exported or destructed, and then send it to the customs authority.

b) Monitoring the submission of inventory reports, formalities for payment and refund of tax on imported goods in the tax-suspension warehouse.

b.1) The submission of inventory report made by the tax-suspension warehouse shall be monitored in the same way the submission of inventory reports made by export processing companies guided in Clause 4 Article 49 of this Circular.

b.2) If the quantity of used raw materials is smaller than the quantity of import raw materials in the tax-suspension warehouse, the company shall pay tax on the unused raw materials on the import declarations after 365-day period from the date of registration with the customs to the date of report; the remaining amount of raw materials shall be included in the inventory report on the next fiscal year.

b.3) The tax on the amount of raw materials that are used for export production shall be refunded according to Article 117 of this Circular.

4. Inspection and supervision of the tax-suspension warehouse

a) The tax-suspension warehouse shall be inspected and supervised in accordance with Clause 4 Article 27 of the Decree No. 154/2005/NĐ-CP.

b) The Sub-department of Customs that monitors the tax-suspension warehouse shall inspect the organization of the tax-suspension warehouse once per year, including:

b.1) Inspect the compliance with Clause 1 Article 27 of the Decree No. 154/2005/NĐ-CP.

b.2) Inspect the maintenance of bookkeeping system for monitoring goods exported, imported, moved in and out of the warehouse;

b.3) Verify the amount of unsold goods, compare the actual amount of unsold goods to the logbook and inventory reports made by the company.

c) Surprise inspections of quantity of goods in storage shall be carried out when:

c.1) It is informed that the company sells raw materials in the tax-suspension warehouse to the domestic market.

c.2) The quantity shall be verified at the premises if it is questionable.

Article 51. Customs procedure for goods moved in and out of container freight stations (CFS)

1. Goods put into the CFS include:

a) Imported goods in the CFS are goods that have not gone through customs procedure and under the supervision of the customs authority.

b) Exported goods in the CFS are goods that have gone through customs procedure or registered the customs declaration at the sub-department of customs outside the checkpoint area, but the physical verification is carried out at the CFS.

2. Services provided in the CFS

a) For exported goods: Packaging, repackaging, arrangement, rearrangement of goods.

For goods in transit may be put into the CFS for dividing or combining with exported containers or Vietnam’s containers of exported goods.

b) For imported goods may be divided to follow import procedure or combined with other shipments to be exported to a third country.

3. Time limits for storage in a CFS:

Goods shall be kept in the CFS for no more than 90 days from the day on which they are put into storage. After the aforesaid period, the Sub-department of Customs in charge of the CFS shall request the station owner to follow the procedure for removing such goods from the CFS, or treat them as abandoned, lost, mistaken, overdue goods according to Article 45 of the Law on Customs.

4. Customs supervision:

a) The CFS, goods in storage, entering and leaving, services provided in the CFS are under the regular supervision of the customs authority.

b) The customs supervision of goods and vehicles entering and leaving the CFS, the supervision of provision of services in the CFS shall comply with Article 13 and Article 14 of the Decree No. 154/2005/NĐ-CP, Article 18 of this Circular and guidance of the General Department of Customs.

5. The goods send to the domestic market from the CFS (including goods from abroad that have not gone through import Circular and the goods sent to the CFS that have gone through export procedure) shall follow corresponding customs procedures.

Article 52. Customs procedures for machinery and equipment, building equipment molds, samples temporarily imported or imported serving production, construction, project execution, or experiments

1. Customs procedures for machinery and equipment, building equipment molds, samples temporarily imported or imported serving production, construction, project execution, or experiments shall comply with regulations on commercial exports and imports.

If the goods temporarily imported or exported are granted tax exemption according to Article 100 of this Circular, the declarant shall notify the Sub-department of Customs where the procedure for temporary import or export is carried out of the remaining useful period of goods every year (365 days from the day on which the declaration of temporary import or export is registered).

2. The procedure for temporary import or export shall be carried out at the Sub-department of Customs of the checkpoint.

If goods are re-imported or re-exported at another checkpoint than the initial one, the declarant shall submit a photocopy and present the original copy of the customs declaration for comparison.

3. The period of temporary import or export shall be agreed by both party, and registered with the customs at the checkpoint.  At the end of the period of temporary import or export, the declarant shall immediately re-export or re-import goods, and finalize documents at the Sub-department of Customs where the procedure for temporary import or export is carried out;

If an extension of the period of temporary import or export is necessary for the construction, project execution, or experiments, the declarant shall make a written request before the end of the period. If the head of the Sub-department of Customs where the procedure for temporary import or export is carried out grants an approval, the period of temporary import or export shall be extended under an agreement with his partner. Penalties shall be imposed if goods are not re-exported or re-imported by the end of the period of temporary import or export.

4. When the temporary importer or exporter makes a written request for permission to transfer the ownership (buy, sell, donate) the machinery, equipment, vehicles, molds, samples that are temporarily imported or exported for production, construction, project execution, experiments, they must follow the customs procedure similarly temporarily imported or exported goods that are sold to the domestic market. In particular:

a) The company shall submit the written request for permission to transfer the ownership to the Sub-department of Customs where the procedure for temporary import or export is carried out.

b) After an approval is granted by the head of the Sub-department of Customs, the company shall follow the corresponding customs procedure, implement the policies on taxation and management of imported and exported tax that are effective when the declaration of ownership transfer is registered (except for the cases in which all management policies are implemented at the time of temporary import or export.

Article 53. Customs procedures in some other cases of temporary import and export

1. For the components, parts, and items temporarily imported without a contract to serve the replacement, repair, and operation of foreign ships or airplanes:

a) The declarant:

a.1) If the temporarily imported components, parts and items are carried by the ship or airplane when it enters, the declarant is the operator.

a.2) If the components, parts and items are sent before or after the ship or airplane arrives to the address of an agent of the courier, the declarant is the agent of the courier.

b) Customs procedure and taxation policies are specified in Article 73 and Article 100 of this Circular.

2. Customs procedure for foreign ships and airplanes that are temporarily imported for repair or maintenance in Vietnam:

The foreign ships and airplanes that are temporarily imported to Vietnam for repair or maintenance shall follow the similar customs procedure for commercial exports and imports. Due to the uniqueness of this form of temporary import, some additional regulations are introduced below:

a) Customs dossier:

Apart from the prescribed customs dossier, the declarant shall submit 01 photocopy of the contract for repair or maintenance of the ship or airplane, which is signed with the foreign partner;

b) Customs procedure shall be carried out at the Sub-department of Customs at the checkpoint of temporary import.

c) The period of temporary import shall be specified in the contract and registered with the Sub-department of Customs at the checkpoint.

d) Customs inspection and supervision:

d.1) When following the procedure for temporary import, the Sub-department of Customs at the checkpoint of temporary import shall compare the information on the declaration with the temporarily imported ship or airplane, supervise the declarant moving the ship or airplane from the wharf or the ramp to the repairing or maintenance location.

d.2) When following the procedure for re-export, the Sub-department of Customs at the checkpoint of temporary import shall compare the information on the temporary import declaration and the re-exported ship or airplane, supervise the declarant moving the ship or airplane from the repairing or maintenance location to the wharf or the ramp, until it is actually exported.

The customs procedure for temporarily importing components, parts and items to serve repair or operation of ships or airplanes under a contract for repair or maintenance signed with the foreign partner is similar to that for processing guided by the Ministry of Finance.

3. The customs procedure for temporarily importing or exporting goods to attend a fair, exhibition, product introduction is similar to that for commercial exports and imports Due to the uniqueness of this form of temporary import, some additional regulations are introduced below:

a) Customs dossier: apart from the required papers for commercial exports or imports, 01 photocopy of the confirmation of the fair or exhibition, which is certified by a competent authority is required (except for the temporary import for product introduction).

b) The customs procedure for goods temporarily imported or exported to attend a fair or exhibition shall be carried out at the Sub-department of Customs where the fair, exhibition, or product introduction takes place, or the Sub-department of Customs at the checkpoint.

c) Deadline for re-export or re-import

c.1) The goods temporarily imported to attend a fair or trade exhibition in Vietnam must be re-exported within 30 days from the end of the fair, trade exhibition, or product introduction that is registered with the customs authority.

c.2) The goods temporarily exported to attend a fair, trade exhibition or product presentation overseas shall be re-imported within 01 year from the date of temporary export. If goods are not re-imported after the aforesaid deadline, they are subject to tax and other financial obligations as prescribed by Vietnam’s law.

d) The sale and donation of goods at a fair, exhibition or product introduction shall comply with Article 136, Article 137 of the Law on Commerce, and other relevant laws.

4. Goods temporarily exported and temporarily exported to serve a convention, conference, scientific research, education, sport competition, artistic performance, medical examination and treatment:

a) Customs procedure shall comply with regulations on non-commercial exports and imports. If goods are re-imported or re-exported at another checkpoint than the initial one, the declarant shall submit a photocopy and present the original copy of the customs declaration for comparison.

b) The procedure for temporary import or export shall be carried out at the Sub-department of Customs at the checkpoint.

c) The period of temporary import or export must be registered with the customs authority and must not exceed 90 days from the day on which the customs declaration of temporary import or export is registered, based on the certification of the organizer of the convention, conference, scientific research, education, sport competition, artistic performance, charitable medical examination and treatment.

5. Goods temporarily exported for repair overseas

a) If the warranty or repair is stipulated in the contract, Article 14 of the Government's Decree No. 12/2006/NĐ-CP dated January 23, 2006, and guidance of the Ministry of Industry and Trade shall apply.

b) If no contract is made, or the warranty or repair is stipulated in the contract, customs procedure is similar to the Circular for non-commercial exports and imports prescribed in Part III of this Circular.

c) The procedure for temporary export and re-import shall be carried out at the Sub-department of Customs at the checkpoint where goods are temporarily exported. If goods are re-imported at another checkpoint, they may be moved to the checkpoint where the export procedure was carried out.

6. Goods temporarily imported and re-exported by a sub-contractor or an entity to serve petroleum activities under a lease contract, borrowing contract or service contract.

b) Customs procedure shall be carried out at the Sub-department of Customs at the checkpoint where goods are temporarily imported. If goods are re-exported at another checkpoint, the procedure for moving to another checkpoint shall be followed.

b) Customs procedure shall comply with regulations on commercial exports and imports. The following papers are also required:

b.1) An application for permission for petroleum exploration and extraction: 01 original copy;

b.2) 01 photocopy of the petroleum service contract of goods supply contract;

c) Time limit for temporary import and re-export:

The time limit for temporary import and re-export shall be agreed by both party and registered with the customs.  If the deadline for re-export must be extended to further serve petroleum activities, a written request for an extension shall be submitted to the Sub-department of Customs where the procedure for temporary import was carried out under an agreement between both parties.

d) Customs inspection and supervision:

d.1) When following the procedure for temporary import, the Sub-department of Customs at the checkpoint shall compare the information on the declaration with the actual equipment used for petroleum extraction;

d.2) When following the procedure for re-export, the Sub-department of Customs at the checkpoint shall compare the information on the re-export declaration with the temporary import declaration and the re-exported goods;

7. Finalizing declarations of temporary import or export

a) The Sub-department of Customs where the Circular for temporary import or export is carried out shall monitor and finalize the declarations of temporarily imported or exported goods. If goods are re-exported another Sub-department of Customs than the initial one, after the re-export procedure is done, the Sub-department of Customs shall send a written notification to the initial Sub-department of Customs, enclosed with a photocopy of the customs declaration for finalization of the case. If goods are re-imported at another Sub-department of Customs than the initial one, after the re-import procedure is done, the declarant shall contact the initial Sub-department of Customs to finalize the case as prescribed.

b) The deadline for finalization is similar to the deadline for submitting application for tax refund or tax cancellation specified in Clause 2 Article 127 of this Circular.

c) An application of finalization consists of:

c.1) A written request for finalization of the declaration of temporary import or temporary export, specifying the declaration of temporary import and declaration of re-export, the quantity of temporarily imported goods and corresponding quantity of re-exported goods;

c.2) The declaration of temporary import and declaration of re-export, or the declaration of temporary export and declaration of re-import;

c.3) Relevant papers.

8. Procedure for selling goods to the domestic market.

When goods temporary imported are sold to the domestic market, the customs procedure shall follow guidance in Clause 4 Article 52 of this Circular.

If goods temporarily imported to attend a fair or exhibition are sold or donated at the fair of exhibition, within 30 days from the end of the fair or exhibition, the company shall make tax statement on the non-trading import declaration and submit it to the Sub-department of Customs where the declaration of temporary import is registered.

Article 54. Customs procedure for temporary import and temporary export of circulated goods containers

1. Circulated goods containers are:

a) Empty containers or containers without hooks;

b) Flexitanks.

2. Customs procedure

a) For containers of the courier:

a.1) When importing, the courier agent shall submit 01 manifest of transported goods, specifying the imported containers.

a.2) When exporting, the courier agent shall submit 01 manifest of temporarily imported or temporarily exported empty containers before they are loaded onto the vehicle (the form No. 44/BKCR/2013 in Appendix III to this Circular); the deliverer or courier agent shall submit 01 manifest of transported goods.

b) If the containers are not owned by the courier, the declarant (the owner of the goods are or will be stored in the containers hired from foreigners, or the owner of circulated containers, or a person authorized by the owner of circulated containers) shall make a commitment to use circulated containers for the purposes in the manifest (the form No. 44/BKCR/2013 in Appendix III to this Circular).

c) The Sub-department of Customs where the procedure for temporary import/export is carried out shall compare and verify the quantity of temporarily exported or temporarily imported containers, and carry out physical verification.

d) If the purpose of circulated containers is changed, customs procedure shall be carried out as follows:

d.1) The declarant shall send a written explanation for the reasons for changing the purpose of circulated containers to the Sub-department of Customs where the manifest of temporarily imported goods is registered and the procedure for temporary import is carried out.

d.2) The head of the Sub-department of Customs where the manifest is registered shall consider the explanation and accept the request if no sign trade  fraud is found. In particular:

d.2.1) Receipt the manifest of temporarily imported goods that has been registered and undergone the procedure for temporary import;

d.2.2) Instruct the declarant to open the corresponding customs declaration, make tax statement, and collect tax (tax is calculated when the customs declaration is registered) in accordance with Clause 8 Article 11 of this Circular;

d.2.3) Impose penalties for missing the deadline and calculate late payment interest (if any);

d.2.4) After tax, late payment interest are collected and violations are penalized (if any), the manifest of temporarily imported goods shall be finalized.

3. The customs procedure for other circulated containers (shelves, barrels, jars, etc.) that are not containers or flexitanks is guided in Point a and Point c Clause 4 Article 53 of this Circular.

Article 55. Customs procedure for exported goods that are returned

1. The forms of re-importing exported goods that are returned (hereinafter referred to as re-import of returned goods) include:

a) Re-importing returned goods for repair, recycling (hereinafter referred to as recycling) and then re-export;

b) Re-importing returned goods for domestic sale (not applicable to processed goods of foreign traders);

c) Re-importing returned goods for destruction in Vietnam (not applicable to processed goods of foreign traders);

d) Re-importing returned goods for re-export to other foreign partners.

2.  Re-import procedure shall be carried out at:

a) The Sub-department of Customs where the export procedure was carried out or the Sub-department of Customs at the checkpoint of re-import.

b) The Sub-department of Customs at the checkpoint of re-import or one of the Sub-departments of Customs where the export procedure was carried out shall caries the procedure for re-import if the returned goods belong to multiple exported shipments.

3. Recycled goods shall undergo re-export procedure at the Sub-department of Customs where the re-import procedure was carried out. If the Sub-department of Customs where the re-import and re-export procedures were carried out is outside the checkpoint, goods shall undergo the procedure applied to exported and imported goods that are moved to another checkpoint.

4. Procedure for re-importing returned goods

a) The customs dossier consists of:

a.1) An original copy of the written request for permission to re-import goods, specifying the declarations on which they are stated, whether tax refund or tax cancellation is granted, whether deductions for input VAT are registered with the tax authority (specifying the number of the decision on tax refund or tax cancellation), the reasons for re-import (for recycling, domestic sale, destruction, or re-export to a third country). The location, time, method of recycling, and loss after recycling must be specified if goods are imported for recycling;

a.2) The customs declaration of imported goods, the manifest of goods, and the bill of lading are similar to those of commercial imports;

a.3) The initial customs declaration of exported  goods: 01 photocopy;

a.4) The written notification of returned goods made by the foreign party, or a written notification of the courier/courier agent of no recipient: 01 original copy or photocopy.

b) The customs shall carry out customs procedure similarly to commercial imports (except for the license to import or license for specialized management). Re-imported goods must undergo physical verification. The customs officer in charge of goods inspection shall compare imported goods with the export declaration to determine the consistency between the re-imported goods and the goods exported previously.

c) The customs authority shall decide not to collect tax on the re-imported goods that are mentioned in Clause 1 of this Article if the declarant submits a sufficient application for tax cancellation when following the re-import procedure as guided in Article 119 of this Circular, and the customs authority has ample evidence that the imported goods are the goods previously exported. Tax shall be collected in other cases.

d) If goods are re-imported for recycling, the company shall register the recycling period with the customs authority, but such period must not exceed 275 days from the date of re-import.

5. Procedure for re-exporting recycled goods

a) The customs dossier consists of:

a.1) The declaration of exported goods: 02 original copies;

a.2) The declaration of imported goods (for recycling): 01 photocopy;

b) The customs authority shall carry out the procedure similarly to commercial exports. If the shipment must undergo physical verification, the customs officer in charge of goods inspection shall compare re-exported goods with the declaration of temporarily imported goods to determine the consistency between the re-exported goods and the temporarily imported goods.

c) If recycled goods are not re-exported, the company shall send a written explanation to the Sub-department of Customs where the re-import procedure was carried out, and request the Sub-department of Customs to consider accepting the following solutions:

c.1) If recycled goods are processed goods

c.1.1) Customs procedure shall be carried out in the form of domestic export or import for domestic sale if the conditions for domestic export or import of processed goods are satisfied according to the Decree No. 12/2006/NĐ-CP; or

c.1.2) Destruction if the hirer requests the destruction in Vietnam and the Service of Natural Resources and Environment allows the destruction in Vietnam.

c.2) Recycled products that are not processed goods shall be sold to the domestic market as goods re-imported for domestic sale.

6. If re-imported goods are exported products made of imported raw materials; commercial goods are eligible for export tax refund, the customs that carry out the re-import procedure shall notify the customs in charge of export tax refund (if they are different) of the cases in Point b, Point c Clause 1 and Point c Clause 5 of this Article, or of the expiration of deadlines mentioned in Point d Clause 4 of this Article to settle tax in accordance with Point c Clause 7 Article 112 of this Circular.

Article 56. Customs procedure for imported goods that are returned to foreign sellers, exported to third countries, or exported to free trade zones

1. If import procedure has been completed

a) The Sub-department of Customs where import procedure was carried out shall carry out the export procedure. If goods are exported at another checkpoint, the procedure for moving goods to the checkpoint of export shall be carried out.

b) The customs dossier consists of:

b.1) The written explanation of the company for the export;

b.2) The declaration of exported goods: 02 original copies;

b.3) The declaration of previously exported goods: submit 01 photocopy and present the original;

b.4) The written acceptance to take back goods made by the foreign seller (if exported goods are returned to the seller): 01 original copy or photocopy;

b.5) The contract to sell goods to a third country or to export goods to a free trade zone (if goods are exported to a third country or a free trade zone).

b.6) A decision on compulsory re-export made by a competent authority (if any): 01 photocopy.

c) Customs procedure shall comply with regulations on commercial exports and imports. Exported goods must undergo physical verification. The customs officer in charge of goods inspection shall compare the exported goods with the samples taken when they were import (if any) and with the description on the import declaration; specify the quantity, quality, categories of exported goods, and consistency between the imported and exported goods.

d) The customs authority shall decide not to collect tax on goods that are returned or exported to a third country or a free trade zone that are mentioned in Clause 1 of this Article if the declarant submit a sufficient application for tax cancellation when following the procedure for returning goods, exporting goods to a third country or a free trade zones as guided in Article 117 of this Circular, and the customs authority has ample evidence that the exported goods are the goods previously exported.

2. If the goods that has not undergone import Circular inside the customs area are abandoned or refused and the deliverer or goods owner makes a written request for permission to re-exported them (specifying the reasons), the Director of the Sub-department of Customs shall supervise goods until they are exported from Vietnam at the checkpoint of import.

Article 57. Customs procedure for goods sold in duty-free shops

Guidance on customs management of goods sold in duty-free shops shall be provided by the Ministry of Finance.

Article 58. Customs procedure for mails, parcel, exported and imported goods sent by post, exported and import items and goods sent by express mail services

Customs procedure for mails, parcel, exported and imported goods sent by post, exported and import items and goods sent by express mail services shall comply with this Circular, the Circular No. 99/2010/TT-BTC dated July 09, 2010 of the Ministry of Finance on customs procedures for mails, parcel, exported and imported goods sent by post, the Circular No. 100/2010/TT-BTC dated July 09, 2010 of the Ministry of Finance for customs procedures for exported and imported goods sent by airmail, the Decision No. 93/2008/QĐ-BTC dated October 29, 2008 of the Ministry of Finance on customs procedures for goods and items exported, imported and transited by express mail.

Article 59. Customs procedure for goods moved in and out of bonded warehouses

1. Customs procedure for goods put in and out of bonded warehouses from other countries of free trade zones.

a) Goods sent to bonded warehouses

The goods mentioned in Article 25 of the Decree No. 154/2005/NĐ-CP may be sent to bonded warehouses.

b) The customs dossier submitted to the customs of the bonded warehouse consists of:

b.1) The declaration of goods moved in and out of bonded warehouse: 02 original copies;

b.2) The contract to lease the bonded warehouse: 01 photocopy (unless the goods owner also owns the bonded warehouse).

If a lease contract is used for multiple deliveries of goods to the bonded warehouse, is shall be submitted when registering the declaration of the first shipment of goods moved in and out of bonded warehouse. Appendices of the lease contract shall be submitted in the next times.

The storage period in the bonded warehouse begins when goods are put in the bonded warehouse.

b.3) The authorization to receive goods (if authorization is not mentioned in the lease contract): 01 original copy;

b.4) The bill of lading or equivalent transport documents or the declaration of exported goods that have undergone customs procedure if goods are taken to the free trade zone and sent to a bonded warehouse: 01 photocopy;

b.5) The manifest of goods (including vehicle identification numbers of cars and bikes - if any): 01 photocopy.

b.6) Other documents at the request of relevant Ministries and agencies.

c) Customs procedure

c.1) Register the declaration of goods stored in the bonded warehouse.

c.2) The customs of the bonded warehouse shall compare the container number and seal number if goods are stored in containers, the package number and symbol if goods are packaged with that on the documents. If they are consistent, the seal and packages are intact, goods shall be stored in the warehouse. If the goods owner is suspected of violating legislation on customs, a physical verification of goods shall be carried out.

c.3) The customs officer that supervises goods stored the bonded warehouse shall confirm that goods are stored the bonded warehouse on the declaration of goods moved in and out of bonded warehouse, and update information on the computer.

2. Customs procedure for goods put into the bonded warehouse from the domestic market

a) Goods sent to bonded warehouses:

a.1) The goods mentioned in Clause 3 Article 25 of the Decree No. 154/2005/NĐ-CP;

a.2) Goods sent from the bonded warehouse to the domestic market for recycling, then put back into the bonded warehouse at the request of the foreign partner.

b) The customs dossier consists of:

b.1) The declaration of goods moved in and out of bonded warehouse: 02 original copies;

b.2) The contract to lease the bonded warehouse: 01 photocopy (unless the goods owner also owns the bonded warehouse).

If a lease contract is used for multiple deliveries to the bonded warehouse, is shall be submitted when registering the declaration of the first shipment of goods moved in and out of bonded warehouse. Appendices of the lease contract shall be submitted in the next times.

b.3) The authorization to send goods (if authorization is not mentioned in the lease contract): 01 original copy, a fax must bear the signature and seal of the bonded warehouse owner;

b.4) The corresponding declaration of exported goods enclosed with a manifest (if any): submit 01 photocopy and present the original copy (kept by the declarant);

b.5) A decision on compulsory re-export made by a competent authority (if goods must be re-exported): 01 photocopy.

c) Customs procedure:

c.1) Assess the validity of documents in the dossier; register the declaration and carry out the procedure for storing goods in the bonded warehouse similarly to goods sent to the bonded warehouse from abroad as prescribed in Point c Clause 1 of this Article.

c.2) Certify that “Goods are put into the bonded warehouse” on the declaration of exported goods according to Clause 4 Article 30 of this Circular.

3. Customs procedure for exporting goods from the bonded warehouse or sending goods in the bonded warehouse to a free trade zone:

a) The customs dossier consists of:

a.1) The declaration of goods moved in and out of bonded warehouse: 01 original copy;

a.2) The declaration exported goods (except for goods sent to the bonded warehouse): 1 original copy;

a.3) The authorization to export goods (if authorization is not mentioned in the lease contract): 01 original copy;

a.4) The goods release note: 01 original copy.

b) Customs procedure:

b.1) The customs of the bonded warehouse shall compare the dossier that is made when goods are released with the dossier that is made when goods are stored and the actual shipment. Delivery procedure shall be carried out if they are consistent.

b.2) Goods in the bonded warehouse may only be exported through international checkpoints, primary checkpoints, and the locations decided by the Prime Minister.

b.3) Goods of sent to the bonded warehouse in one time may be delivered once or many times. If goods are delivered and exported many times through various checkpoints at the same time, the photocopy of the declaration of goods moved in and out of the bonded warehouse, which bears the seal of the Sub-department of Customs at the bonded warehouse, may be used for the procedure for moving goods from the bonded warehouse to the checkpoint of export.

b.4) When the goods are released from the bonded warehouse, the Sub-department of Customs in charge of the bonded warehouse shall certify that goods have arrived at the checkpoint of export in box 35 of the declaration based on the goods receipt note and the manifest of goods being delivered from the bonded warehouse to the checkpoint of export, which are certified by the customs at the checkpoint of export. If the bonded warehouse is located at the checkpoint of export, the customs at the bonded warehouse shall make the certification right after goods are loaded onto the vehicle.

4. Customs procedure for importing goods in bonded warehouses to the domestic market

a) Goods in the bonded warehouse shall be imported sent to the domestic market in the following cases:

a.1) The imported goods that are sold in the Vietnam's market mentioned in Point b Clause 2 Article 26 of the Decree No. 154/2005/NĐ-CP;

a.2) Goods are sent to the domestic market for processing or recycling;

a.3) Machinery and equipment of foreign contractors that are sent to the domestic market for construction, or were hired by a company to execute a processing contract, re-exported and sent to the bonded warehouse, then re-sent to the domestic market to execute another processing contract;

a.4) Goods that have undergone export procedure, sent to the bonded warehouse, and then re-imported to the domestic market in the same manner.

b) The following goods must not be sent to bonded warehouses:

b.1) The goods mentioned in Point c Clause 2 Article 26 of the Decree No. 154/2005/NĐ-CP;

b.2) The goods that must undergo import procedure at the checkpoint;

b.3) The goods in the List of consumables and goods restricted from import of the Ministry of Industry and Trade.

c) Customs procedure:

c.1. The declarant shall carry out corresponding import procedure. Then the warehouse owner shall carry out release procedure.

c.2. If goods in the bonded warehouse are imported to the domestic market many times, the customs dossier of each import may use photocopies (of the bill of lading, manifest of goods, Certificate of Origin) that bear the seal of the customs. The original copies shall be kept by the customs at the bonded warehouse.

c.3) When the goods are released from the bonded warehouse, the Sub-department of Customs in charge of the bonded warehouse shall certify that goods have arrived at the checkpoint of export in box 35 of the declaration based on the transfer record and customs declaration of imported goods.

d) The customs at the bonded warehouse shall supervise the removal of goods from the bonded warehouse, and certify it on the declaration of goods

5. Customs supervision of goods transported form the bonded warehouse to the checkpoint of export

a) Responsibilities of the owner of goods/bonded warehouse

a.1) Make a list of exported goods transported from the bonded warehouse to the checkpoint of export (the form No. 47/BKCCK-KNQ/CFS/2013 in Appendix III to this Circular): 03 copies;

a.2) Comply with the route and time certified by the customs authority on the transfer record. If the route or time is not complied with, the owner of goods/bonded warehouse shall notify the Sub-department of Customs in charge of the bonded warehouse and the Sub-department of Customs at the checkpoint of export in writing before goods arrive at the checkpoint of export.

a.3) Protect the customs seal throughout the trip. When an accident or force majeure occurs that damage the seal or upset the status quo of goods, the deliverer/bonded warehouse owner shall take measures to minimize damage and notify the People’s Committee of commune, ward, or town, or the nearest Sub-department of Customs and request the to certify the conditions of goods in writing.

b) Responsibilities of Sub-department of Customs in charge of the bonded warehouse:

b.1) Make certification on 02 copies of the list of exported goods transported from the bonded warehouse to the checkpoint of export; seal the goods and make 03 copies of the transfer record (the form No. 46/BBBG-CCK/2013 in Appendix III to this Circular), specifying the information about the time, route, and other information for the customs at the checkpoint of export to check and verify; seal the customs dossier (composed of 02 transfer records, 02 copies of the list of exported goods transported from the bonded warehouse to the checkpoint of export, and a copy of the declaration of goods released from the bonded warehouse) and have it delivered to the checkpoint of export by;

b.2) Fax the transfer record to the Sub-department of Customs at the checkpoint of export before 5.00 PM for monitoring and management in cooperation.

b.3) Collect feedbacks from the Sub-department of Customs at the checkpoint of export. If no feedbacks are received after the deadline for goods transport (registered by the trader on the transfer record), or a notification that goods have not arrived at the checkpoint of export is received from the Sub-department of Customs at the checkpoint of export, the Sub-department of Customs in charge of the bonded warehouse shall cooperate with the Sub-department of Customs at the checkpoint of export and request the Customs Control Team affiliated to the Sub-department of Customs in charge of the bonded warehouse in finding the shipment.

c) Responsibilities of Sub-department of Customs at the checkpoint of export:

c.1) Since information about the goods being moved to another checkpoint faxed by the Sub-department of Customs in charge of the bonded warehouse, the Sub-department of Customs at the checkpoint of export shall monitor the information about the shipments being transported to the checkpoint of export according to the transfer records.

c.2) After the all goods are gathered at the checkpoint of export, the Sub-department of Customs shall check the custom seal, verify information, and request the head of the Sub-department of Customs to sign on the 02 transfer records.

c.3) Fax the transfer records to the Sub-department of Customs in charge of the bonded warehouse. If the released goods are suspected of legislation on customs, the head of the Sub-department of Customs at the checkpoint shall decide the physical verification and treat them as goods being moved to another checkpoint.

c.4) Keep 01 transfer record and send 01 transfer record that has been certified to the Sub-department of Customs in charge of the bonded warehouse.

c.5) The Sub-department of Customs at the checkpoint of export shall supervise goods over the period from their receipt to their export, certify on the list of exported goods transported from the bonded warehouse to the checkpoint of export, request the head of the Sub-department of Customs to certify (append the signature, seal, and specify the date), and send it back to the Sub-department of Customs in charge of the bonded warehouse.

c.6) If the shipment does not arrive at the checkpoint of export when the deadline is passed, before 8.00 AM of the next working days, the Sub-department of Customs at the checkpoint of export shall notify the Sub-department of Customs in charge of the bonded warehouse to find the in cooperation.

6. Procedure for transporting goods from one bonded warehouse to another within Vietnam’s territory

a) The goods owner or a legal representative of the goods owner shall submit an application to the Customs Department of the province where goods are stored in the bonded warehouse.

b) Customs procedure for transporting goods from one bonded warehouse to another is the Circular for goods being moved to another checkpoint.

c) The contract to lease the bonded warehouse takes effect on the first day goods are stored in the bonded warehouse.

7. Customs management of goods that are transferred in the bonded warehouse

a) Goods in the bonded warehouse shall be transferred by the owner when an act of trading is performed according to Clause 8 Article 3 of the Law on Commerce.

b) After goods are transferred, the new owner or the owner of the bonded warehouse (if authorized) shall submit the following documents to the Sub-department of Customs in charge of the bonded warehouse:

b.1) The declaration of goods moved in and out of bonded warehouse: 02 original copies

b.2) Notification of transfer of goods in the bonded warehouse: 01 original copy

b.3) The sale contract between the buyer and the seller: 01 photocopy

b.4) The contract to lease the bonded warehouse of the buyer: 01 photocopy

The Sub-department of Customs in charge of the bonded warehouse shall keep the aforesaid documents together with the dossier of the goods moved in for monitoring and finalization.

c) After the new declaration is made, the Sub-department of Customs in charge of the warehouse shall finalize the old declaration.

d) The period of storage in the bonded warehouse begins when goods are moved in the bonded warehouse under the lease contract between the bonded warehouse owner and the former owner.

8. Guidance on the procedure for liquidating unsold goods in the bonded warehouse shall be provided by the Ministry of Finance.

9. Customs management of goods in the bonded warehouse

a) If the bonded warehouse owner is authorized by the goods owner to provide services in the bonded warehouse, the bonded warehouse owner must be recognized as a customs service provider. The declarant must present the card of customs service agent when following the customs procedure.

b) The Sub-department of Customs in charge of the bonded warehouse shall regularly inspect the operation of the bonded warehouse, request the bonded warehouse owner to provide the diagram of goods arrangement in the warehouse and to reasonably arrange the storage area and service area in the warehouse.

c) The Sub-department of Customs in charge of the bonded warehouse shall appoint officers to monitor and supervise the operation of the bonded warehouse. The transport of goods from the checkpoint of import to the bonded warehouse, from the bonded warehouse to the checkpoint of export, from one bonded warehouse to another are under customs supervision;

d) Goods taken to the checkpoint from the bonded warehouse to must be exported within 15 days from the release date. If the declarant makes a written request for permission for permission to export after 15 days and the Sub-department of Customs at the checkpoint of export certifies that the storage period has not expired, the Sub-department of Customs at the checkpoint of export shall notify the Sub-department of Customs in charge of the bonded warehouse of the conditions of goods. If goods are not exported after the storage period expires, the Sub-department of Customs at the checkpoint of export shall request the Sub-department of Customs in charge of the bonded warehouse to handle the shipment in accordance with Clause 7 of this Article.

dd) Every 06 months, within 15 days from the end of the reported period, the bonded warehouse owner shall send a written report to the Director of the Customs Department where the bonded warehouse is situated on the goods in the warehouse and operation of the warehouse (the form No. 45/BC-KNQ/2013 in Appendix III to this Circular).

e) Finalizing declarations of goods put into the bonded warehouse:

Within 15 days from the date of import, the bonded warehouse owner shall submit a declaration of goods moved in and out of the bonded warehouse for the Sub-department of Customs in charge of the bonded warehouse to certify that goods have arrived at the checkpoint of export and finalize the declaration. The certification and finalization of the declaration are based on the transfer record and the list of exported goods being transported form the bonded warehouse to the checkpoint of export, which is certified by the customs at the checkpoint of export.

g) Every year, the Customs Department shall inspect the operation of the bonded warehouse and the compliance with legislation on customs of the bonded warehouse owner, and send the report to the General Department of Customs. Surprise inspections at the bonded warehouse shall be carried out if signs of violations are found,

Article 60. Customs procedure for goods exported and imported across the border

The customs procedure for goods imported and exported across the border shall comply with the guidance of the Ministry of Industry and Trade, the Ministry of Finance, the Ministry of Transport, the Ministry of Agriculture and Rural Development, the Ministry of Health, and the State bank on implementation of the Prime Minister’s Decisions on management of border trading.

Article 61. Customs supervision of exported and imported goods that are moved to another checkpoint

1. Rules for moving goods to another checkpoint

The procedure for changing shall be carried out concurrently with the customs procedure for exported, imported goods and in accordance with Article 16 and Article 18 of the Decree No. 154/2005/NĐ-CP. While carrying out customs procedure, the Sub-department of Customs where declaration is registered shall send goods based on the information about goods and locations.

2. Supervising goods being moved to another checkpoint

a) For exported goods:

a.1) The Sub-department of Customs outside the checkpoint area (hereinafter referred to as external Sub-department of Customs)shall make a transfer record (the form No. 46/BBBG-CCK/2013 in Appendix III to this Circular) and give it to the declarant together with the original copy of the customs declaration that has undergone the customs procedure for the declarant to send them to the customs at the checkpoint of export.

a.2) Within 01 hour from the receipt of the customs dossier and goods sent by the external Sub-department of Customs, the customs officer at the checkpoint of export shall finish receiving the dossier, goods, and sign on the transfer record.

b) For imported goods:

b.1) The Sub-department of Customs where the customs declaration is registered shall give the customs declaration to the declarant for submission at the checkpoint of import.

b.2) Within 04 hours from the receipt of the customs dossier, the customs officer at the checkpoint of import shall finish receiving the dossier, transfer the goods and customs declaration. If imported goods must undergo physical verification, 02 transfer records shall be given to the declarant for submission to the customs where the declaration is registered.

3. The Director of the Customs Department shall appoint a suitable Sub-department of Customs to carry out the procedure for moving goods to another checkpoint if no Sub-departments of Customs outside the checkpoint area are available or they are far from the checkpoint/port, which is not convenient for the company that has its goods moved to another checkpoint.

4. The customs declaration of office supplies (furniture, stationery, etc) or non-commercial goods imported to serve the operation of the company that are stored in the same container with raw materials imported for export production shall be registered at a Sub-department of Customs outside the checkpoint area to follow the procedure for moving to another checkpoint.

5. If port of destination on the bill of lading of imported goods is an ICD:

a) The imported goods shall not be moved to customs posts or inspection posts outside the checkpoint area, except for the cases decided by the Prime Minister.

b) For imported goods of an export processing company, raw materials, supplies, machinery, equipment imported to serve the export production or execution of a processing contract, of which the port of destination is an ICD, the company may carry out procedure for moving goods from the ICD to the managing Sub-department of Customs, the Sub-department of Customs where the import declaration is register, or where the processing contract is reported in order to continue the customs procedure. If goods must undergo physical verification and the company request that the physical verification be carried out at the ICD, the Sub-department of Customs at the ICD shall carry out the physical verification at the request of the managing Sub-department of Customs, the Sub-department of Customs where the import declaration is registered, or where the processing contract is reported.

6. Moving goods in a bonded warehouse/CFS to another checkpoint

a) Goods that have undergone export procedure and sent to the bonded warehouse/CFS shall be moved to the checkpoint of export;

Goods imported from abroad and sent to the bonded warehouse shall be moved from the checkpoint of import to the bonded warehouse in accordance with Point e Clause 3 Article 18 of the Decree No. 154/2005/NĐ-CP, except for goods that must undergo customs procedure at the checkpoint of import as prescribed by law.

b) Goods being raw materials, supplies, machinery, and equipment serving production shall be moved from the bonded warehouse/CFS to a customs posts outside the checkpoint area.

c) Customs supervision:

c.1) If goods are moved from the customs post to a bonded warehouse/CFS and vice versa, the Sub-department of Customs where the declaration is registered shall handover the supervision to the Sub-department of Customs in charge of the bonded warehouse/CFS;

c.2) If goods are moved from a bonded warehouse/CFS to a customs post, the owner of the bonded warehouse/CFS shall make a manifest of goods being moved from the bonded warehouse to the checkpoint of export (the form No. 47/BKCCK-KNQ/CFS/2013 in Appendix III to this Circular) and send it to the Sub-department of Customs in charge of the bonded warehouse for certification and sealing.

c.3) Goods being moved from the bonded warehouse to the checkpoint of export shall be supervised in accordance with Clause 5 Article 59 of this Circular.

7. The customs supervision of imported goods from the checkpoint of import to the free trade zone, exported goods from the free trade zone to the checkpoint of export, goods being traded among free trade zones is similar to that of goods being moved to another checkpoint, but no customs seal is required.

8. The declaration of exported, imported goods shall be registered at the Sub-department of Customs outside the checkpoint area. If violations are discovered, a physical verification at the checkpoint shall be carried out.

9. Supervising exported and imported goods being moved to another checkpoint

The exported and imported goods being moved to another checkpoint shall be supervised by customs seal or other technical means decided by the Director of the General Department of Customs.

a) Where exported and imported goods being moved to another checkpoint must be sealed by the customs:

a.1) If exported and imported goods must undergo physical verification, they must be stored in containers or means of transport that can be sealed by the customs in accordance with Article 14 of the Decree No. 154/2005/NĐ-CP;

a.2) Small packages that are not stored in the containers or means of transport that can be sealed by the customs shall be sealed separately;

a.3) If small packages of multiple import declarations are transported to the same location outside the checkpoint area and the company makes a written request for permission to combine and transport them in the same container or vehicle, the Sub-department of Customs at the checkpoint of import shall makes an acceptance, seal the goods, and specify it in the transfer record.

a) If customs seal is exempt, exported and imported goods being moved to another checkpoint while following customs procedure are exempt from physical verification.

c) If customs seal is not possible:

c.1) Goods that are bulk cargo, customs procedure shall be carried out at the Sub-department of Customs of the checkpoint. If customs procedure is carried out at a Sub-department of Customs outside the checkpoint area, the physical verification of goods shall be carried out by the Sub-department of Customs of the checkpoint at the request of the Sub-department of Customs outside the checkpoint area.

c.2) For oversized goods and bulky goods that cannot be seal and cannot undergo physical verification at the checkpoint, customs procedure shall be carried out at a Sub-department of Customs outside the checkpoint area. The Sub-department of Customs at the checkpoint must specify the condition of goods, means of transport in the transfer record, take and send pictures of the goods and means of transport to the Sub-department of Customs outside the checkpoint area.

10. Customs procedure for goods that have for with export procedure has been complete but the checkpoint of export is changed:

a) If export procedure is completed but goods have not been transported to the checkpoint of export or CFS:

The company shall send the following documents to the Sub-department of Customs where the export declaration is registered:

a.1) A written request for the change of the checkpoint of export (the form No. 48/TĐ-CKX/2013 in Appendix III to this Circular): 02 original copies;

a.2) A notification on the change of the checkpoint of export made by the recipient, the courier, or the processing hirer: 01 photocopy.

a.3) A written permission for the change of the checkpoint of export made by the licensing authority if a license to export is required (the checkpoint of export is specified in the license) or a permission for exporting goods through another checkpoint of export made by the People’s Committee of the province (if goods are exported through another checkpoint of export under the management of the People’s Committee of the province): 01 photocopy enclosed with the original for comparison;

b) If export procedure has been completed and goods are put into the customs area at the checkpoint written on the customs declaration, or exported goods are transported to a CFS under the management of a Sub-department of Customs outside the checkpoint area:

The company shall send the papers mentioned in Point a of this Clause to the Sub-department of Customs where the customs declaration is registered.

The General Department of Customs shall provide guidance on changing the checkpoint of export.

Article 62. Customs procedure for imported and exported vehicles

Customs procedure for exported and imported vehicles are similar than that for commercial exports and imports. Due to the uniqueness of this form, some additional regulations are introduced below:

1. The means of transport by sea, inland waterway, air and rail must complete the procedure for export before the procedure for leaving, and complete the procedure for entering before the procedure for import.

If the procedure for leaving has been complete and the vehicle owner signs a contact to sell it to a foreigner (the port of destination in the contract is overseas), the vehicle owner shall make a written request for procedure for export enclosed with papers proving that the procedure for leaving has been complete. The physical verification during the procedure for export may be exempted by the Director of the Customs Department where the procedure for leaving was carried out. Customs procedure shall be carried out at the Sub-department of Customs where the procedure for leaving was carried out.

2. Means of transport by road and other vehicles that are transported across the border by other vehicles shall follow the procedure for export and import, not the procedure for leaving and entering.

3. The conditions for exporting and importing each type of vehicle shall comply with relevant laws.

Chapter III

PROCEDURES FOR ESTABLISHMENT, RELOCATION, EXPANSION, NARROWING OF CUSTOMS POST OUTSIDE CHECKPOINT AREA (HEREAFTER REFERRED TO AS EXTERNAL CUSTOMS PROCEDURE POST) AND DOMESTIC IMPORTS AND EXPORTS CHECKING AREA, BONDED WAREHOUSE AND TAX-SUSPENSION WAREHOUSE

Article 63. Conditions for establishment

1. For customs procedure post of domestic port

a) Planned in domestic port system published by the Prime Minister;

b) Area must be 10 ha or more;

c) Ensuring working conditions for customs organs such as office, goods checkpoint, equipment installation area (electronic scales, scanners ...) and exhibit storage;

d) Warehouse and yard must be separated by fence from the surrounding area, equipped with the camera system, electronic scales and other equipment for quick clearance of goods. Goods brought in and out of warehouse and yard must be managed by the computer system and is connected to the monitoring system of the customs authorities.

2. For external customs procedure post:

a) In the planning of the Ministry of Finance of the system of external customs procedure posts;

b) In areas with industrial parks, export processing zones, duty free area, other special economic zones or area concentrating a lot of industrial factories with stable and regular import or export activities;

c) At location with convenient transportation, suitable for transporting goods by container;

d) Area must be 01 ha or more;

e) Other conditions as specified at Point c, Article, Clause 1 of this Article.

3. For concentrated checkpoint constructed by customs authorities or storage business enterprises.

a) Location: attached to the customs Sub-Department (if being a checkpoint of a customs Sub-Department) or in areas with regular import and export activity, convenient transportation, suitable for transporting goods by container; no more than 20 km far away from the customs Sub-Department (if the checkpoint is shared by many customs Sub-Departments);

b) Area: the checkpoint of a customs Sub-Department must have a minimum area of 5,000 m2; the checkpoint is shared by many customs Sub-Departments must have a minimum area of 10,000 m2;

c) Material facilities and equipment:

c.1) Ensuring working conditions for customs organs such as office, goods checkpoint, equipment installation area (electronic scales, scanners ...) and exhibit storage;

c.2) Warehouse and yard must be separated by fence from the surrounding area, equipped with the surveillance camera system;

c.3) Goods brought in and out of warehouse and yard must be managed by the computer system and is connected to the monitoring system of the customs authorities.

d) If the checkpoint is constructed by enterprises, they must register their transportation and warehouse business line.

4. For the checking and gathering checkpoint of imports and exports at border:

a) If located in the border-gate economic zone:

a.1 Enterprise must register their transportation and warehouse business line.

a.2) Area: At least 5,000m2

a.3) Ensuring working conditions for customs organs such as office, goods checkpoint, equipment installation area (electronic scales, scanners ...) and exhibit storage;

a.4) Warehouse and yard must be separated by fence from the surrounding area, equipped with the surveillance camera system;

a.5) Goods brought in and out of warehouse and yard must be managed by the computer system and is connected to the monitoring system of the customs authorities.

b) If not located in the border-gate economic zone:

Conditions for establishment are the same as the checking and gathering checkpoint located in the border-gate economic zone. In addition, the checking and gathering checkpoint located in the border-gate economic zone must meet the following conditions:

b.1) It must be attached to the border-gate area;

b.2) Being issued with Investment Certificate by provincial/municipal People’s Committee;

5. For the Container Freight Station (CFS):

a) Enterprises have registered their warehouse and yard, imports and exports transportation and forwarding business line

b) In the area with regular import and export activity, convenient transportation and suitable for goods transportation by container; no more than 20 km far away from customs Sub-Department

c) Ensuring working conditions for customs organs such as office, goods checkpoint, and customs equipment installation area and exhibit storage;

d) Warehouse and yard must have area of at least 1,000 m2 and be separated by fence from the surrounding area and equipped with the surveillance camera system

e) Goods brought in and out of warehouse and yard must be managed by the computer system and is connected to the monitoring system of the customs authorities.

6. For bonded warehouse

Conditions for establishing the bonded warehouse shall comply with the provisions in Clause 3, Article 22 of Decree No. 154/2005/ND-CP, in which the following conditions must be satisfied:

a) Location of bonded warehouse establishment;

The bonded warehouse must be built in the areas specified in Clause 2, Article 22 of Decree No. 154/2005/ND-CP.

b) Area

b.1) The bonded warehouse must have an area of at least 5,000 m2 (including warehouse and yard and ancillary buildings).

b.2) For specialized warehouse (such as warehouse for storing gold, silver, precious stones, specialized warehouse for storing goods which must be preserved in special mode). The bonded warehouse area may be smaller than 5,000 m2 and warehouse area possible may be less than 1.000m2.

b.3) For specialized bonded yard (such as yard of timber iron and steel,…) must have a minimum area of ​​10,000 m2. No warehouse area is required.

c) Separated by fence from the surrounding area.

c.1) For bonded warehouse located in the border gate area and port with fence separated from the surrounding area and within the control, inspection and monitoring area of customs authorities,

c.2) For bonded warehouse located outside the above area, there must be fence separated from the surrounding area to ensure the control, inspection and monitoring of customs authorities, 

d) Management software and surveillance camera:

d.1) The owner of bonded warehouse must have bookkeeping system and computer installed with the management and monitoring software of goods imported, exported, stored and stocked as prescribed by the customs authorities and networked with customs managing the bonded warehouse;

d.2) The bonded warehouse must be installed with surveillance camera system of goods brought in and out and the system is capable of storing the surveillance camera images within 06 months to ensure the monitoring, supervision and data access in case of necessity by the customs authorities.

7. Tax-suspension warehouse

Enterprises requesting the establishment of tax-suspension warehouse must satisfy the conditions specified at Point a, b and c, Clause 2, Article 27 of Decree No. 154/2005/ND-CP. In addition, to ensure the customs monitoring and management requirement, in this Circular, the Point Article, Clause 2 of Article 27 of Decree No. 154/2005/ND-CP is guided as follows:

a) Enterprises must satisfy the provisions in Clause 1, Article 20 of this Circular.

b) Enterprises must have bookkeeping system and management and monitoring software of goods imported, exported, stored and stocked

c) The tax-suspension warehouse must be located in the enterprise’s production facility area and installed with the surveillance camera system of goods brought in and out and this system is capable of storing the surveillance camera images within 06 months to ensure the monitoring, supervision and data access in case of necessity by the customs authorities.

8. For goods checkpoint at the building field or building storage and production area.

a) The building field or storage must be the gather place of equipment, machinery and imported materials for construction of factory, building and implementation of investment project;

b) Enterprise’s plant and production factory is a gathering place of the exports and imports with their own requirements for preservation, packaging, hygiene, technology, safety for goods which cannot be actually checked at the border gate or concentrated checkpoint.

c) Enterprise shall prepare ground and means to serve the checking at the building field and production area and only put the goods into production, performance and installation after clearance confirmation from the customs authorities

Article 64. Establishment dossier

1. Dossier for establishment of customs procedure post of domestic port includes:

a) Written request for establishment: 01 original;

b) Written approval of Domestic Clearance Depot (ICD) of the Ministry of Transport (excluding the case where ICD has been announced in the planning): 01 original;

c) Business registration certificate with business line of forwarding and transportation of imports and exports and (or) warehouse and yard business: 01 copy;

d) Economic and technical feasibility study of construction: 01 copy;

dd) Operation Regulation: 01 original

2. Dossier for establishment of external customs procedure post includes:

a) Written request for establishment: 01 original;

b) Written approval of People’s Committee of provinces or cities where the external customs procedure post is located: 01 original;

c) Business registration certificate with business line of forwarding and transportation of imports and exports and (or) warehouse and yard business: 01 copy;

d) Economic and technical feasibility study of construction: 01 copy;

dd) Operation regulation: 01 original

3. Dossier for establishment of concentrated checkpoint:

a) In case the concentrated checkpoint is invested by the customs authorities:

a.1) Written request for establishment of provincial/municipal Customs Department: 01 original;

a.2) Diagram of transportation network and related economic and industrial parks in the area: 01 copy;

a.3) Economic and technical feasibility study of construction: submitting 01 copy;

a.4) Operation regulation: 01 original

a.5) Legal certificate of land use right;

b) In case the concentrated checkpoint is invested by the enterprise:

b.1) Enterprise’s written request for establishment: 01 original

b.2) Economic and technical feasibility study of construction: 01 copy;

b.3) Operation regulation: 01 original

b.4) Papers evidencing legal land use right: 01 copy;

b.5) Business registration certificate with business line of forwarding and transportation of imports and exports and (or) warehouse and yard business: 01 copy;

4. Dossier for establishment of imports and exports checking post at the border

a) Enterprise’s written request for establishment: 01 original;

b) Economic and technical feasibility study of construction: submitting 01 copy;

c) Operation regulation: 01 original;

d) Papers evidencing legal land use right: 01 copy;

dd) Business registration certificate with business line of forwarding and transportation of imports and exports and (or) warehouse and yard business: 01 copy;

e) For the imports and exports checking post at the border not located in border-gate economic zone, enterprises shall submit their investment certificate issued by the provincial/municipal People’s Committee: 01 copy;

5. Dossier for establishment of Container Freight Station (CFS):

a) Enterprise’s written request for establishment: 01 original

b) Economic and technical feasibility study of construction: 01 copy;

c) Operation regulation: 01 original;

d) Papers evidencing legal land use right: 01 copy;

dd) Business registration certificate with business line of forwarding and transportation of imports and exports and (or) warehouse and yard business: 01 copy;

6. Dossier for establishment of bonded warehouse

a) Application for establishment of bonded warehouse (form No. 49/TL-KNQ/2013, Annex III issued together with this Circular);

b) Business registration Certificate with function of warehouse and yard business: 01 copy;

c) Design diagram of warehouse and yard area clearly shows the boundary line separated from the outside, location of warehouse, internal transportation system, fire and explosion prevention and fighting system, security, warehouse office and customs workplace (upon customs’ requirement);

d) Legal documents on use right of warehouse and yard, technique, infrastructure, management software, surveillance camera,…together with design diagram of warehouse area, bonded yard located in the overall border gate area and industrial park

7. Dossier for establishment of tax-suspension warehouse

a) Application for establishment of tax-suspension warehouse (form No. 50/TL-KBT/2013, Annex III issued together with this Circular);

b) Business registration Certificate: 01 copy

c) Design diagram of warehouse and yard area clearly shows the boundary line separated from the outside, location of warehouse, internal transportation system, fire and explosion prevention and fighting system, security, warehouse office;

d) Legal documents on use right of warehouse and yard, technique, infrastructure, management software, surveillance camera,…

8. For goods checkpoint at the building field or building storage and production area: Enterprise shall send the written proposal for recognition to provincial/municipal Customs Department: 01 original

Article 65: Establishment order

1. For customs procedure post at domestic port and external customs procedure post (hereafter generally referred to as customs procedure post):

a. Enterprise shall send dossier for establishment to the Customs Department of cities and provinces where the customs procedure post is located;

b. Within 10 working days after receipt of valid dossier, the Customs Department shall

b.1) Verify dossier;

b.2) Make actual survey of warehouse and yard;

b.3) Assess the compliance with the conditions specified in Decree No. 154/2005/ND-CP and guidance in Clause 1 and 2, Article 63 of this Circular; propose opinions and reports attached to the dossier for submission to the General Department of Customs;

c. Within 30 working days after receipt of report together with dossier, the General Department of Customs shall complete the appraisal, report the result and submit the Minister of Finance the decision on establishment of customs procedure post as prescribed in Clause 2, Article 4 of Decree No. 154/2005/ND-CP. In the absence of conditions for establishment, the Ministry of Finance shall reply in writing to the enterprise.

2.For concentrated checkpoint, imports and exports gathering and checking area at border; the Container Freight Station (CFS); bonded warehouse (hereafter generally referred to as checkpoint);

a) Proposing the guidelines for establishment of checkpoint;

a.1) Enterprise wishing to establish the checkpoint should send a written proposal to the General Department of Customs (via provincial or municipal Customs Department) and determine estimated contents including: necessity for establishment, estimated location for establishment, area, conditions for material and technical facilities, infrastructure,…

a.2) Within 05 working days after receipt of enterprise’s written proposal, the provincial or municipal Customs Department shall verify dossier, operation conditions of checkpoints established in the area, assessment of necessity and conformity with management requirement. For bonded warehouse, if meeting the customs authority’s’ surveillance requirements, make proposal to the General Department of Customs;

a.3) Within 05 working days after receipt of proposal report from the provincial or municipal Customs Department, the General Department of Customs shall reply in writing and give specific guidance on contents to be done. In case of refusal, it shall reply in writing clearly stating the reason;

b) Making a decision on establishment of checkpoint

b.1) After having agreed with the guidelines of the General Department of Customs, the enterprise shall begin the construction of warehouse. If satisfying all conditions, it shall prepare dossier as prescribed in this Circular for submission to the General Department of Customs (via the Customs Department of cities or provinces where the checkpoint is located);

b.2) Within 10 working days after full receipt of enterprise’s dossier, the provincial or municipal Customs Department shall: verify dossier, make survey, actually check warehouse and yard, assess the compliance with conditions for checkpoint establishment, and submit report and proposal to the General Department of Customs.

b.3) Within 10 working days after receipt of provincial or municipal Customs Department together with the dossier for checkpoint establishment, the Director of General Department of Customs shall make a decision on checkpoint establishment or reply in writing if the enterprise has not satisfied all conditions as prescribed.

3. For the checkpoint as the building field or building storage, production area or tax suspension warehouse;

Enterprise shall submit together with dossier for establishment to provincial or municipal Customs Department. Within 05 working days after full receipt of enterprise’s dossier, the provincial or municipal Customs Department shall: verify dossier, make survey, actually check warehouse and yard and make a decision on establishment. In case of nonconformance, it shall reply in writing and stating the reasons.

Article 66. Termination and suspension of operation

1. Cases of termination of operation

a) The provincial or municipal Customs Department proposes in writing the termination of operation of customs procedure post at domestic port; external customs procedure post; concentrated checkpoint, checking and gathering checkpoint of imports and exports at border, Container Freight Station (CFS), bonded warehouse, tax-suspension warehouse if they do not satisfy the conditions for customs checking and surveillance and other conditions specified in Article 63 of this Circular.

b) Enterprise has submitted its written proposal for termination of operation;

c) Beyond a time limit of 06 months after the decision on establishment but the enterprise has not put it into operation without plausible reason;

d) Enterprise has committed administrative violation on customs for 03 times in a year and is imposed with the fine sanction at the level for each time of exceeding sanction competence of the Head of Customs Sub-Department;

dd) For bonded warehouse and tax-suspension warehouse previously established but without expansion of area by December 31, 2014 to meet the provisions specified in Clause 6 and 7, Article 64 of this Circular.

2. Competence in making termination decision

a) Director of provincial or municipal Customs Department:

a.1) Making a decision on termination of operation of checkpoint as building field or building storage, production area and tax-suspension warehouse;

a.2) Verifying, reporting and proposing the General Department of Customs to consider terminating the operation against the customs procedure post of domestic port, bonded warehouse, concentrated checkpoint, Container Freight Station (CFS), checking and gathering checkpoint of imports and exports at border.

b) Director of General Department of Customs:

b.1. Making a decision on termination of operation of bonded warehouse, concentrated checkpoint, Container Freight Station (CFS), checking and gathering checkpoint of imports and exports at border.

b.2. Verifying, reporting and proposing the Ministry of Finance to consider terminating the operation against the customs procedure post of domestic port.

c) Minister of Finance makes a decision on terminating operation of customs procedure post of domestic port.

3. Suspending the operation of checkpoints:

a) In case the checkpoint is no longer operational due to lack of goods, upon the enterprise’s written proposal, the Director of provincial or municipal Customs Department shall announce a suspension of operation of concentrated checkpoint, checking and gathering checkpoint of imports and exports at border, Container Freight Station (CFS), bonded warehouse; report and propose the General Department of Customs to announce a suspension of operation of the customs procedure post of domestic port.

b) The time for suspension of operation shall not exceed 06 months after the enterprise’s written proposal;

c) During the time for suspension of operation, the above checkpoints shall not be subject to surveillance of customs authority.

d) After the above time limit, if the enterprise submits its written proposal for permitting the continuation of operation, the Director of provincial or municipal Customs Department shall inspect the conditions for establishment and operation of checkpoints. If they satisfy all conditions, the Director shall issue a written approval for operation or report to the General Department of Customs to permit the operation for the customs procedure post of domestic port. In case of failing to satisfy the conditions or the enterprise submits no written proposal, the Director shall report to the competent authority to consider the termination of operation as prescribed in Clause 1 of this Article.

Article 67. Procedures for relocation, expansion or narrowing of checkpoint

1. The enterprise that wish to expand or narrow the area of checkpoint established by a decision of General Department of Customs or relocate from the location established by decision of General Department of Customs to a new location to satisfy the conditions as prescribed in Article 63 of this Circular should prepare dossier for submission to the provincial or municipal Customs Department. The dossier includes:

a) Application for relocation, expansion or narrowing;

b) Diagram of warehouse and yard of relocation, expansion or narrowing;

c) Legal documents of use right of warehouse and yard of relocation, expansion or narrowing;

2. The provincial or municipal Customs Department after fully receiving the enterprise’s valid dossier, shall:

a) Verify dossier’

b) Make actual survey of warehouse and yard;

c) Within 15 days after full receipt of valid dossier, Director of provincial or municipal Customs Department shall make a decision on expansion, narrowing or relocation in case of moving to a new place located in the same established area or reply in writing to the enterprise in case of ineligibility for relocation, expansion or narrowing.

d) In case of moving the established location to a new location outside the established area, the enterprise shall make a written proposal to the provincial or municipal Customs Department for consideration and report to the General Department of Customs for decision on relocation.

3. For checkpoints as prescribed in Clause 1 and 2, Article 63 of this Circular, they must be included in the planning of the Ministry of Transport or Ministry of Finance, the relocation of checkpoint must be approved in writing by the Ministry of Transport or Ministry of Finance.

Article 68. Conversion of ownership or renaming of owners

1. Procedures for conversion of ownership of checkpoint shall be done as follows:

a) The checkpoint owner submits written proposal for conversion of checkpoint owner;

b) The new owner performs the procedures for conversion of checkpoint owner. Dossier for conversion shall comply with the provisions in Article 64 of this Circular;

c) The provincial or municipal Customs Department shall receive dossier for conversion of owner, report and propose the General Department of Customs for decision. There is no need to make actual survey of warehouse and yard again if there is no change compared with the current condition of warehouse and yard. If the checkpoint is under the authority to establish of the Minister of Finance, the General Department of Customs shall report and propose the Minister of Finance for consideration and decision;

2. Procedures for renaming of

a) The owner shall submit a written proposal for renaming together with document evidencing the renaming of enterprise certified by the enterprise establishment licensing agency

b) Within 05 days after full receipt of valid dossier, the General Department of Customs shall issue a written recognition of renaming of owner under the Decision on checkpoint establishment. If the checkpoint is under the authority to establish of the Minister of Finance, the General Department of Customs shall report and propose the Minister of Finance for consideration and decision;

Part III

CUSTOMS PROCEDURES FOR IMPORTS AND EXPORTS FOR NON-COMMERCIAL PURPOSES

Article 69. Imports and exports for non-commercial purposes

Imports and exports for non-commercial purposes (hereinafter referred to as non-traded goods) include:

1. Gifts and donations sent from organizations and individuals abroad to Vietnamese organizations and individuals; sent from Vietnamese organizations and individuals to organizations and individuals abroad;

2. Goods of diplomatic missions, international organizations in Vietnam and those who work in these agencies or organizations;

3. Humanitarian aids;

4. Goods temporarily imported or temporarily exported of the individuals permitted for tax exemption by the State of Vietnam

5. Unpaid samples;

6. Professional tools and means of work temporarily exported or imported with a time limit of agencies, organizations and of persons passing through border gate;

7. Movable property of organizations or individuals;

8. Personal luggage of person entering through border gate sent with bill of lading, goods brought with these person exceeding the tax-exemption criteria;

9. Other non-traded goods;

Article 70. Customs declarant

Customs declarant for non-traded imports and exports is one of the following subjects:

1. Shippers;

2. Customs procedure agent if the shipper signs contract with the agent;

3. Person is authorized by the shipper in writing;

In case of authorization, the person authorized may sign or seal on the customs declaration on his/her behalf.

Article 71. Customs documents for the imports

1. Documents to be submitted include:

a) Non-traded import and export declaration: 02 originals;

b) Bill of Lading (except that goods carried exceed the tax-exemption criteria as specified in Point 8, Article 69 of this Circular): 01 copy;

c) Power of attorney as prescribed in Clause 3, Article 70 of this Circular: 01 original;

d) Declaration of humanitarian aid confirmation of the competent authority in case of importing humanitarian aid: 01 original;

dd) Decision or notice of police authority permitting individual as Vietnamese who have settled abroad to come back and settle in Vietnam; or Vietnamese Passport or valid substitute papers of Vietnamese Passport for permanent residence in Vietnam, with the certification seal of entry from entry and exit management authority at border gate: 01 certified copy with the original for comparison;

e) Documents of the competent authority permitting the transfer of organization’s property from abroad into Vietnam: 01 copy;

g) Goods exporting permit (in case of (in case of import of prohibited goods or conditional imports): 01 original;

h) Certificate of origin for the cases specified at Point e.5, Clause 2, Article 12 of this Circular: 01 original;

i) Notice or decision or agreement on donation of goods: 01 copy;

k) Other documents depending on each specific case as prescribed by law;

2. Documents to be introduced include:

a) Notice of receipt of goods of transportation organization (except that goods carried exceed the tax-exemption criteria specified in Clause 8, Article 69 of this Circular);

b) Book of tax-exemption criteria of diplomatic missions, international organizations or foreigners working at these organizations.

3. Documents for determining imported goods for non-traded purposes not subject to tax payment are customs documents specified in this Article;

Article 72. Customs documents for the exports

1 Documents to be submitted include:

a) Non-traded import and export declaration: 02 originals;

b) Power of attorney as prescribed in Clause 3, Article 70 of this Circular: 01 original;

c) Documents permitting the exporting of humanitarian aid and declaration of humanitarian aid confirmation of the competent authority in case of export of humanitarian aid: 01 original;

d) settlement abroad of the competent authority (in case of exporting of movable property of individual and family): 01 certified copy;

dd) Document of the competent authority permitting the organization’s property to abroad: 01 certified copy;

e) Export license (in case of exporting of prohibited goods or conditional exports): 01 original;

g) Other documents depending on each specific case as prescribed by law;

2. Documents for determining imported goods for non-traded purposes not subject to tax payment are customs documents specified in this Article;

Article 73. Customs procedures

1. Customs declarant makes declaration and submits customs documents. The customs authority receives, registers and verifies them in detail;

2. The form and extent of actual checking of non-traded exports and imports shall be decided by Customs Sub-Department leaders under the principles stipulated in the Customs Law and Decree No.154/2005/ND-CP.

For goods subject to regime of privileges and immunities shall comply with provisions in Article 38 of Decree No. 154/2005/ND-CP.

3. Taxes, fees and other amounts payable shall comply with current regulations of law.

4. Clearance of non-traded goods

The signing and sealing of "customs procedures done" on the customs declaration shall be implemented by customs authority’s at the final stage;

5. Tracking and liquidity for professional tools and means of work temporarily imported and exported with a time limit of agencies, organizations and of persons passing through border gate for non-traded purposes;

a) Upon the time of re-exporting, the customs declarant must perform the re-exporting procedures for professional tools and means of work and dossier liquidity at the Customs Sub-Department of temporary importing. In case of re-exporting at other Customs Sub-Departments different from the Customs Sub-Department of temporary importing, after performing the re-exporting procedures, the Customs Sub-Department of temporary exporting shall send a written notification to the Customs Sub-Department of temporary importing together with copy of customs declaration (customs backup copy) for dossier liquidity as prescribed.

b) Upon the time of re-importing, the customs declarant must perform the re-importing procedures for professional tools and means of work and dossier liquidity at the Customs Sub-Department of temporary exporting. In case of re-importing at other Customs Sub-Departments different from the Customs Sub-Department of temporary exporting, within 15 days after the completion of re-importing procedures, the customs declarant shall make direct contact with the Customs Sub-Department of temporary re-exporting for dossier liquidity as prescribed.

c) Beyond the time limit without re-exporting or re-importing, the customs declarant shall be handled in accordance with current regulations of law.

Part IV

CUSTOMS PROCEDURES FOR MEANS OF TRANSPORT UPON IMPORTING, EXPORTING, TRANSIT OR TURNAROUND

Section 1. For automobile imported, exported or transited through border gate for commercial purpose

Article 74. Customs procedures for foreign automobile upon imported (temporarily imported)

1. The customs declarant shall submit and/or present the following documents:

a) For foreign automobile imported under bilateral Agreement between Vietnam with bordering countries:

a.1) Permit issued by the competent authority: showing the original;

Permit issued by the competent authority: showing the original;

a.2) Vehicle registration certificate: showing the original;

a.3) Declaration of goods imported or in transit: showing the original;

a.4) Passenger list (for passenger automobile): submitting 01 original;

a.5) Import and export declaration (if any) of the vehicle operator and person working together on the means of transportation: showing the original;

a.6) Other documents prescribed in international Agreement on road transport between Vietnam and bordering countries: showing the original;

a.7) Declaration for temporary import and re-export means of road transportation (Form No. 51/PTVTDB/TN-TX/2013, Annex III issued together with this Circular): printed from the system by the customs authority;

b) For vehicles temporarily imported under the Agreement to facilitate transportation of people and goods across the border between the countries of Greater Mekong Subregion (GMS Agreement), the provisions of Circular No. 29/2009/TT-BGTVT dated November 17, 2009 by the Ministry of transportation. Records shall apply. Documents are as follows:

b.1) GMS Road Transport Permit: showing the original

b.2) Motored vehicle Temporary Admission Document: showing the original

b.3) Container Temporary Admision Document: showing the original;

b.4) Transit and Domestic Customs Clearance Document: showing the original;

c) For foreign automobile with the steering wheel on the right, it is required to show documents as prescribed in Decree No. 80/2009/ND-CP dated October 01, 2009 of the Government, namely:

c.1) Written approval of the Ministry of Transport: showing the original;

c.2) Certificate of technical safety inspection and environmental protection for the motored vehicle is issued by the nation of vehicle registration and is still valid: showing the original;

c.3) Vehicle registration certificate: showing the original;

c.4) Import-export declaration (if any) of the vehicle operator: showing the original;

c.5) Declaration for temporary import and re-export means of road transportation: printed by the customs authority from the system;

2. The customs authority shall receive, verify documents and perform customs procedures under the process issued by the General Department of Customs.

Article 75. Customs procedures for foreign automobile upon export (re-export)

1. The customs declarant shall submit and/or show the following documents:

a) For foreign automobiles imported under the bilateral Agreement between Vietnam and bordering countries:

a.1) Document of vehicle circulation extension (if any): submitting the original;

a.2) Permit issued by the competent authority: showing the original;

a.3) Other documents prescribed in the international agreement on road transportation between Vietnam and bordering countries: showing the original;

a.4) Passenger list ( if the line coach): submitting the original;

a.5) Declaration of goods exported or in transit (in case performing procedures for means of transportation and goods exported or in transit): showing the original;

a.6) Import and export declaration (if any) of the vehicle operator and person working together on the means of transportation: showing the original;

b) For vehicles re-exported under the Agreement to facilitate transportation of people and goods across the border between the countries of Greater Mekong Subregion (GMS Agreement), the provisions of Circular No. 29/2009 /TT-BGTVT dated November 17, 2009 by the Ministry of transportation. Records shall apply. Documents are as follows:

b.1) GMS Road Transport Permit: showing the original;

b.2) Motored vehicle Temporary Admission Document: showing the original;

b.3) Container Temporary Admision Document: showing the original;

b.4) Transit and Domestic Customs Clearance Document: showing the original;

c) For foreign automobile with the steering wheel on the right, it is required to show documents as prescribed in Decree No. 80/2009/ND-CP dated October 01, 2009 of the Government, namely:

c.1) Vehicle registration certificate;

c.2) Import and export declaration (if any) of the vehicle operator;

c.3) Declaration for temporary import and re-export means of road transportation;

2. The customs authority shall receive, verify documents and perform customs procedures under the process issued by the General Department of Customs.

Article 76. Customs procedures for Vietnamese automobile upon export (temporary export) and import (re-import)

The customs procedures for Vietnamese automobile upon export (temporary export) and import (re-import) shall comply with the provisions in Article 74 and 75 of this Circular. For the declaration of means of transportation, the Form No. 52/PTVTDB/TX-TN/2013, Annex III shall be used together with this Circular. If the automobile is issued with the cross-border permit, it shall be managed by the computer system without printing the declaration of means of transportation.

Section 2. FOR MEANS OF TRANSPORTATION SPECIFIED IN ARTICLE 46 OF DECREE No. 154/2005/ND-CP

Article 77. Management mechanism of rudimentary means of transport

1. Rudimentary means of transport is the vehicle moved by the human or animal pulling power (for example: trolley, pedicab, horse cart, ox-cart…).

2. When importing or exporting the rudimentary means of transport, the vehicle owner or controller shall not have to ask for permit and fill out the declaration of means of transportation.

Article 78. Customs procedures

For rudimentary means of transport upon imported or exported, the vehicle owner or controller must make declaration and submit the following documents to the customs authority:

1. Import and export declaration (if there are imports and exports);

2. Luggage declaration of the vehicle operator and passengers (if any);

Section 3. FOR MEANS OF TRANSPORTATION OF INDIVIDUALS, AGENCIES OR ORGANIZATION TEMPORARILY IMPORTED AND RE-EXPORTED FOR NON-TRADED PURPOSES SPECIFIED IN ARTICLE 47 OF DECREE No. 154/2005/ND-CP

Article 79. Customs procedures for automobile for non-traded purposes upon imported or exported

1. For foreign automobile upon imported (temporarily imported), the customs declarant shall submit and show the following documents:

a) For foreign automobile imported under the bilateral agreement between Vietnam and bordering countries:

a.1) Written permission of the competent authority (except for temporary import for circulation at border area): showing the original;

a.2) Vehicle registration certificate: showing the original;

a.3) Other documents prescribed in the international agreement on road transportation between Vietnam and bordering countries: showing the original;

 a.4) Declaration for temporary import and re-export means of road transportation (Form No. 51/PTVTDB/TN-TX/2013, Annex III issued together with this Circular): printed from the system by the customs authority;

a.5) Import and export declaration (if any) of the vehicle operator and person working together on the means of transportation: showing the original;

b) For foreign automobile with the steering wheel on the right, it is required to show documents as prescribed in Decree No. 80/2009/ND-CP dated October 01, 2009 of the Government, namely:

b.1) Written approval of the Ministry of Transport;

b.2) Certificate of technical safety inspection and environmental protection for the motored vehicle;

b.3) Vehicle registration certificate;

b.4) Import -export declaration (if any) of the vehicle operator;        

b.5) Declaration for temporary import and re-export means of road transportation (Form No. 51/PTVTDB/TN-TX/2013, Annex III issued together with this Circular).

2. For foreign automobile upon exported (re-exported), the customs declarant shall submit or show the following documents:

a) Declaration for temporary import and re-export means of road transportation with certification of temporary import of the customs Sub-Department at the border gate of temporary import: submitting the original;

b) Written permission of the competent authority: showing the original;

c) Written extension of temporary import (if any): submitting the original.

3. For Vietnamese automobile upon exported (temporarily exported), imported (re-imported), the customs documents are similar to the provisions in Clause 1 and 2 mentioned above. For the declaration of means of transportation, it shall be printed under the Form No. 52/PTVTDB/TX-TN/2013, Annex III issued together with this Circular. If the automobile is issued with the cross-border permit, it shall be managed by the computer system without printing the declaration of means of transportation.

4. The customs authority shall receive, verify documents and perform customs procedures under the process issued by the General Department of Customs.

Article 80. Customs procedures for boat, dinghy, canoe,…exported or imported

1. Customs procedures for (vessel, boat, barge, dinghy, canoe,…. subject to registration under regulations for waterway means of transportation, ... imported or exported.

a) The vehicle owner or controller must submit or show the following documents to the customs authority:

a.1) Written permission of the competent authority (except for temporary import for circulation at border area): showing the original;

a.2) Vehicle registration (if any): showing the original;

a.3) Import and export declaration (if there are imports or exports): showing the original;

a.4) Declaration of exit or entry (if any) of the vehicle operator and persons working on the vehicle: showing the original;

a.5) Declaration of waterway means of transport temporarily imported - re-exported (form No. 53/PTVTDS/TN-TX/2013 of Annex III issued together with this Circular) or declaration of waterway means of transport temporarily exported - re-imported (Form No. 54/PTVTDS/TX-TN/2013 of Annex III issued together with this Circular): submitting the original.

b) The customs authority shall receive, verify documents and perform customs procedures under the process issued by the General Department of Customs;

2. Customs procedures for motorcycles for non-traded purposes upon exported and imported.

a) For foreign motorcycles upon imported (temporarily imported), the customs declarants shall submit or show the following documents:

a.1) Written permission of the competent authority (except for temporary import for circulation at border area): showing the copy;

a.2) Vehicle registration certificate: showing the original;

a.3) Declaration for temporary import and re-export means of road transportation (Form No. 51/PTVTDB/TN-TX/2013, Annex III issued together with this Circular): printed from the system by the customs authority;

b) For foreign motorcycles upon exported (temporarily imported), the customs declarants shall submit or show the following documents:

b.1) Declaration for temporary import and re-export means of road transportation with certification of temporary import of the customs Sub-Department at the border gate of temporary import: submitting the original;

b.2) Written extension of temporary import (if any): submitting 01 copy and showing the original.

c) For Vietnamese motorcycles upon exported (temporarily exported) and imported (re-imported), the customs documents are similar to the provisions at Point a and b, of this Clause 2. For the declaration of means of transportation printed under the Form No. 52/PTVTDB/TX-TN/2013, Annex III issued together with this Circular.

d) The customs authority shall receive, verify documents and perform customs procedures under the process issued by the General Department of Customs.

Article 81. Separate regulations for means of transportation of individuals and organizations in the border area regularly crossing the border

1. These means include:

a) Foreign trucks entering Vietnam border area during the day (01 day) for delivering imports or receiving exports;

b) Vietnamese trucks crossing border area during the day (01 day) for delivering exports or receiving imports and then returning to Vietnam;

c) Means of transportation of individuals, agencies or organizations in the border area regularly crossing the border for daily living requirements;

2. For cases specified at Point a and b, Clause 1 of this Article, if there is plausible reason to extend the time to stay in the border gate area, the vehicle operator or goods owner shall submit a written request, the customs Sub-Department leaders shall consider the extension. The extended time shall not exceed 02 days.

3. These kinds of vehicle are only temporarily imported – re-exported, temporarily exported- re-imported via the same border gate.

4. These kinds of vehicle do not need permit and declare in declaration of means of transportation. The customs authority at the border gate shall manage and monitor by books or computer system.

Section 4. FOR VIETNAMESE OR FOREIGN VESSELS UPON LEAVING, ENTERING, TRANSIT OR TURNAROUND

Article 82. Customs declarant

The captain or the legal representative of the carrier (hereinafter collectively referred to as captain) shall make declaration and perform customs procedures for vessels upon leaving, entering, transit or turnaround;

Article 83. Customs procedure post

The customs procedures for Vietnamese and foreign vessels upon leaving, entering, transit or turnaround  shall be performed at the head office or representative office of Port Authority, except for cases specified at Point b, Clause 2, Article 54 of Decree No. 21/2012/ND-CP dated March 21, 2012 of the Government on sea port and maritime channel management.

Article 84. Time limit for customs procedures

The customs declarants must make customs declaration and documents within the following time limit:

1. No later than two hours for ships entering and since the ship is safely anchored at location designated by the director of Port Authority;

2. No later than two hours before leaving port for ship exiting. For passenger ships and liners, the latest time is right before the time the ship prepares to leave port;

3. In case of plausible reason, the above time limit may be changed, but the captain must notify in writing to port customs Sub-Department at least 30 minutes in advance.

Article 85. Customs declaration

The customs declarant shall perform the customs declaration contents as prescribed in Article 86 of this Circular and pay attention to the following contents:

1. Cargo declaration must be filled in completely, specifically and clearly on description of goods; it is required not to generally record like: groceries, office equipment goods, electronic goods, electrical appliances, children toys…. Any item described generally must be filled in and submitted with attached list (list attached) of that item.

2. For the seaman's luggage:

a) Filling in the crew’s luggage in the crew’s luggage declaration;

b) For seaman's luggage, each seaman shall fill in the non-traded imports and exports declaration;

3. For excess luggage, goods of passengers entering or exiting shall comply with the provisions in Decree No. 66/2002/ND-CP dated July 01, 2003 of the Government stipulating the luggage quantity of person entering or exiting and donations and gifts imported and exempted from tax.

Article 86. Customs documents

1. For ships entering, the captain shall submit dossiers to the port customs Sub-Department including:

a) General declaration: 01 original;

b) Goods declaration: 01 original;

c) Dangerous goods declaration (if any): 01 original;

d) Reserve declaration of ship: 01 original;

dd) Crew list: 01 original;

e) Passenger list (if any): 01 copy;

g) Crew’s luggage and goods declaration: 01 original;

h) Declaration of goods upon turnaround, transit or transshipment (if any): 01 original.

2. For foreign ship exiting, if there is no change in contents compared with the declared contents upon ship’s entry, the captain shall not have to submit documents specified in Clause 1 of this Article, except for general declaration, goods declaration and passenger list (if transporting passengers); if there is a change in contents compared with the declared contents upon the ship’s entry, the captain shall submit documents specified in Clause 1 of this Article, excluding the declaration of goods upon turnaround, transit or transshipment. In addition, the following documents shall be submitted:

a) Invoice of goods supplied for ship;

b) Invoices for duty free goods (by order).

3. For Vietnamese ships exiting, the captain shall submit dossiers to the port customs Sub-Department including:

a) General declaration: 01 original;

b) Manifest: 01 original;

c) Reserve declaration of ship: 01 original;

d) Crew list: 01 original;

dd) Crew’s luggage and goods declaration: 01 original;

e) Passenger list (if any): 01 copy

4. For ship in transit:

a) When performing the entry procedures, the captain shall submit dossiers to the port customs Sub-Department as prescribed in Clause 1 of this Article.

The customs Sub-Department of the port where ships enter shall seal the dossiers (including 01 goods declaration and 01 ship record transfer slip) and hand it over to the captain for transfer to the Custom Sub-Department of the port where ships exit.

b) When performing the exiting procedures, the captain shall submit a general declaration (01 original) and dossier sent by the Customs Sub-Department where the ship enters to the Customs Sub-Department where the ship exits.

5. For turnaround ship

a) At departure port

a.1) The captain shall submit the general declaration, declaration of turnaround imports, declaration of loaded exports, declaration of goods in transit and transshipment (if any): 01 copy of each kind.

a.2) The port Customs Sub-Department shall seal the turnaround dossier and hand it over to the captain for submission to the Customs Sub-Department of port where the ship arrives.

b) A the port where the ship arrives, the captain shall submit the general declaration (01 original) and turnaround dossier with customs seal transferred by the Customs Sub-Department of departure port.

Section 5. CUSTOMS PROCEDURES FOR AIRCRAFT UPON EXIT, ENTRY, TRANSIT AND TURNAROUND

Article 87. Responsibility of aviation authority, aviation transport organization and aircraft operator

1. Within twenty four hours (at least one hour for non-routine flight) before the aircraft enters and before the aviation authority completes the aviation procedures for exiting and exports. The aviation authority shall provide the customs authority with the following information:

a) Flight number;

b) Aircraft nationality;

c) Type of aircraft

d) Flight itinerary;

dd) Arrival and departure time of aircraft;

e) Location of aircraft parking;

g) Entrance for passengers;

h) Loading and unloading time of aircraft.

The aviation authority shall inform one hour in advance (upon the entry or exit of aircraft).

2. Within 02 hours (for long route of over 06 hour flight) and 01 hour (for short route from 06 hour flight or less) before the aircraft enters and before the aviation authority completes the aviation procedures for exiting passengers and exports. The aviation organization shall provide the customs authority with the following information:

a) Goods for import, export, in transit or for turnaround;

b) Checked luggage;

c) Passenger list;

d) List of crew and members working on board.

3. Right after the aviation authority completes the aviation procedures for exported goods, luggage and exiting passenger and right after the aircraft enters and parks at designated location, the aircraft operator or legal representative shall submit customs dossier to the customs authority. The dossier includes:

a) General declaration of aircraft;

b) Manifest of goods: 02 originals;

c) Manifest of checked luggage: 02 originals;

d) Passenger list: 01 original;

dd) List of crew and members working on board.

Article 88. Responsibility of customs authority

The customs authority shall receive and process information and data specified in Clause 1 and 2, Article 87 of this Circular from the aviation authority and provided by the aviation transport organization; receive customs dossier specified in Clause 3, Article 87 of this Circular from the aircraft operator or legal representative for customs procedures for aircraft as prescribed by law.

Article 89. Customs procedures for aircraft of international entry and exit combined with domestic transportation, domestic transportation aircraft combine with transportation of exports and imports

1. Customs procedures for aircraft of international entry and exit combined with domestic transportation shall be performed as for turnaround aircraft. If there are exports and imports of any type, the customs procedures shall be performed for that type.

2. If the domestic transportation aircraft combined with transportation of imports and exports, the carrier must arrange the imports, exports, and luggage in the cargo compartment to ensure the customs seal.

SECTION 6. CUSTOMS PROCEDURES FOR INTERNATIONAL CROSS-BORDER TRAIN ENTERING OR EXITING BY RAILWAY

Article 90. Customs procedures for entering train

1. At cross-border station

a) Right after the train arrives at cross-border station, the trainmaster or representative (hereafter generally referred to as trainmaster) shall submit the following documents to the customs Sub-Department of cross-border station:

a.1) Goods transfer certificate (for cargo train): 01 original;

a.2) Bill of lading: 01 photocopy of sheet 2

a.3) Wagon transfer certificate: 01 original;

a.4) Manifest of goods unloaded at each domestic cross-border station: submitting 02 originals (under the Form No. 55/BLK-DS/2013 Annex III issued together with this Circular);

a.5) Passenger list and passenger’s unaccompanied luggage card (for cross-border train and passengers performing the procedures at the cross-border station): 01 original;

a.6) List and luggage declaration of the crew and persons working on board (for cross-border train and passenger performing customs procedures at cross-border station): 01 original.

b) The customs Sub-Department of cross-border station border gate shall:

b.1) Receive and verify documents submitted by the trainmaster;

b.2) Make actual comparison and examination of locomotive, number of each wagon containing the goods and checked luggage;

b.3) Check the seal of transport organization for each wagon containing the goods and checked luggage;

b.4) Affix customs seal on each wagon containing goods or each batch of goods to be unloaded at the domestic cross-border station. If the goods cannot be sealed such as oversized goods, bulk cargo,…. the trainmaster shall ensure their integrity.

b.5) Monitor during the train stopping at the station: goods and checked luggage unloading to warehouse and yard for import procedures at the station;

b.6) Make record upon handing over the turnaround imports to the customs Sub-Department of domestic cross border station border gate: 02 originals;

b.7) Affix professional seal on documents submitted by the trainmaster; seal customs dossier including: manifest of goods unloaded at each domestic cross-border station: 01 original; unloading bill of lading at domestic cross-border station: 01 photocopy of sheet 2; record of handover: 01 copy

2. At the domestic cross-border station

a) Right after the train arrives at domestic cross-border station, the trainmaster or legal representative shall submit the following to the Customs Sub-Department of cross border station border gate:

a.1) Documents sealed by Customs Sub-Department of cross border station border gate;

a.2) Passenger list and passenger’s unaccompanied luggage card (for cross-border train and passengers performing the procedures at the domestic cross-border station): 01 original;

a.3) List and luggage declaration of the crew and persons working on board (for cross-border train and passenger performing customs procedures at domestic cross-border station): 01 original.

b) The customs Sub-Department of cross-border station border gate shall:

b.1) Receive and verify documents submitted by the trainmaster;

b.2) Make actual comparison and examination of locomotive, number of each wagon containing the goods and checked luggage;

b.3) Check the seal of transport organization, the seal of Customs of cross-border station of border gate (if any) for each wagon containing goods and checked luggage;

b.4) Monitor during the train stopping at the station;

b.5) Affix professional seal and return these documents sent by the customs Sub-Department of cross-border.

Article 91. Customs procedures for exiting train

1. At domestic cross-border station:

a) Before the train leaves domestic cross-border station, the trainmaster or legal representative shall submit the following documents to the customs Sub-Department of cross-border border gate:

a.1) Written confirmation of train order (for train with customs procedures at domestic cross-border): 01 original;

a.2) Bill of lading: 01 photocopy of sheet 2 (for train with wagons containing exports);

a.3) List and luggage declaration of the crew and persons working on board (for cross-border train and passenger performing customs procedures at domestic cross-border station): 01 original.

a.4) Passenger list and passenger’s unaccompanied luggage card (for cross-border train and passengers performing the procedures at domestic cross-border station): 01 original;

b) The customs Sub-Department of domestic cross-border station shall:

b.1) Receive and verify documents submitted by the trainmaster or legal representative;

b.2) Affix customs seal on each wagon containing goods or each batch of goods to be unloaded at the domestic cross-border station. If the goods cannot be sealed such as oversized goods, bulk cargo… the trainmaster shall ensure their integrity.

b.3) Make record upon handing over the turnaround imports to the customs Sub-Department of domestic cross border station border gate: 02 originals;

b.4) Affix professional seal on documents submitted by the trainmaster;

b.5) Seal customs dossier including: record of handover: 01 copy, manifest of exports: 01 copy, bill of lading: 01 photocopy of sheet 2, hand them over to the trainmaster or legal representative for submission to the customs Sub-Department of cross-border station border gate.

2. At cross-border station:

a) When the train arrives at the cross-border station, the trainmaster or legal representative shall submit the following documents to the customs Sub-Department of cross-border station border gate:

a.1) Documents sealed by the customs Sub-Department of cross-border station border gate;

a.2) Written confirmation of train order: 01 original with stamp of cross-border station (for goods transporting train)

a.3) Wagon transfer certificate and goods transfer certificate (for goods transporting train)

a.4) Passenger list and passenger’s unaccompanied luggage card (for cross-border train and passengers performing the procedures at domestic cross-border station): 01 original;

a.5) List and luggage declaration of the crew and persons working on board (for cross-border train and passenger performing customs procedures at cross-border station): 01 original.

b) Responsibility of customs Sub-Department of cross-border station border gate:

b.1) Receive and verify documents submitted by the trainmaster or legal representative;

b.2) Make actual comparison and examination of locomotive, number of each wagon containing the goods and checked luggage;

b.3) Monitor the arrangement of goods and luggage with customs procedures performed on each wagon;

b.4) Affix customs seal on each wagon containing goods or each batch of goods to be unloaded at the domestic cross-border station. If the goods cannot be sealed such as oversized goods, bulk cargo…. the trainmaster shall ensure their integrity until the train exits

b.5) Organize the monitoring during the train stopping at the station;

b.6) Affix professional seal on documents submitted by the trainmaster or legal representative

b.7) Affix seal and return these documents sent by the customs Sub-Department of cross-border station border gate.

Part V

EXPORT TAX, IMPORT TAXES AND OTHER REGULATIONS FOR TAX MANAGEMENT FOR EXPORTS AND IMPORTS

Section 1. GROUNDS FOR TAX CALCULATION, METHOD OF CALCULATION OF IMPORT AND EXPORT TAX

Article 92. Grounds for tax calculation for goods applying tax rate as percentage

1. For goods applying tax rate as percentage, the grounds for tax calculation is determined as follows:

a) The number of units of each item actually exported or imported is stated in the customs declaration.

b) The taxable value shall comply with the provisions of the Customs Law, the Law on Tax Administration, the Law on Export and Import Tax, Decree No. 40/2007/ND-CP dated March 16, 2007 of the Government stipulating the determination of customs value of imported or exported goods; Circular of the Ministry of Finance guiding Decree No. 40/2007/ND-CP .

c) Tax rate

c.1) Tax rate of export tax for exported goods is specified for a number of items in the export tariff issued by the Ministry of Finance.

c.2) Tax rate of import tax for imported goods is specified for each item, including preferential tax rate, special preferential tax rate and general tax rate;

c.2.1) Preferential tax rate applied for imported goods with their origin from the country, group of countries or territories having most favored nation (MFN) in commercial relationship with Vietnam. List of country, group of countries or territories having MFN with Vietnam are announced by the Ministry of Industry and Trade.

The preferential tax rate is specified for each item in the preferential import tariff issued by the Minister of Finance.

The tax payers shall declare and take responsibility themselves before law for the origin of goods as the grounds for determining the tax rate of preferential import tax.

c.2.2) Preferential tax rate is specified for each item in Circulars stipulating the special preferential tax rate by the Minister of Finance and Circular No. 45/2007/TT-BTC dated May 07, 2007 of the Ministry of Finance guiding the implementation of tax rate of special preferential import tax.

c.2.3) General tax rate applied for the imports with their origin from the country, group of countries or territories having no MFN or no implementation of special incentives of import tax with Vietnam. The general tax rate is uniformly applied by 150% of preferential tax rate of each corresponding item specified in the preferential import tariff

General tax rate = Preferential tax rate x 150%

The classification of goods to determine tax rates specified at Point C of this Clause must comply with the rules of classification of goods specified in Decree No. 06/2003/ND-CP dated January 22, 2003 of the Government stipulating the classification of exports and imports and Circular No. 49/2010/TT-BTC dated April 12, 2010 of the Ministry of Finance guiding the classification and application of tax rate for the imports and exports and relevant documents. In case of importing machinery and equipment specified under Chapter 84, 85 and 90 of preferential import tariff as combinations and lines meeting the note 3, 4, 5, Part XVI of List of Vietnamese imports and exports, in addition to the above regulations, it is required to perform declaration procedures under guidance in Article 97 of this Circular.

d) In addition to the tax under the guidance at Point c.2.1, c.2.2 or c.2.3 of this clause, if the goods are imported into Vietnam excessively with the subsidy, underselling or discrimination against the Vietnamese exports, they shall be subject to  of Vietnam are subject to anti-subsidy tax, anti-underselling tax, anti-discrimination tax and self-defense tax.

2. Method of tax calculation for goods applying tax rate as percentage is determined as follows:

a) The determination of import and export tax payable for goods with application of tax rate as percentage is based on the number of unit of each item actually exported or imported stated in the customs declaration, taxable value, tax rate of each item is calculated under the following formula:

Amount of export tax, import tax payable

=

Number of unit of each item actually exported or imported is stated in the customs declaration

x

Taxable value per unit of goods

x

Tax rate of each item

If the goods are crude oil, natural gas, the determination of export tax payable shall comply with the guidance in Circular No. 02 32/2009/TT-BTC dated February 19, 2009 of the Ministry of Finance guiding implementation of tax regulations for organizations and individuals that conduct the survey, exploration and extraction of oil and gas under the provisions of the Petroleum Law.

b) If the amount of exports and imports has actual difference compared with commercial invoice due to the nature of the goods, in accordance with the delivery and payment conditions in the contract of sale of goods, the amount of export and import tax payable shall be determined on the basis of the value actually paid for the exported and imported goods and tax rate of each item.

Ex: An enterprise imports tobacco under contract with a quantity of 1,000 tons, unit price 100 USD/ton, water content ± 2%. Commercial invoice recorded as = 1,000 tons x USD 100, the payment value is USD 100,000. When the tobacco is imported, the customs authority shall check the balance with the volume of 1,020 tons or 980 tons, the tax value is USD 100,000;

Article 93. Grounds and method of tax calculation for goods with application of absolute tax or mixed tax

1. Grounds for tax calculation for goods with application of absolute tax or mixed tax:

a) Grounds for tax calculation for goods with application of absolute tax:

a.1) The number of units of each item actually exported and imported is recoded in the customs declaration with the application of absolute tax;

a.2) The absolute tax rate specified on a unit of goods;

a.3) Exchange rate for tax calculation

b) Grounds for tax calculation for goods with the application of mixed tax are:

b.1) The number of unit of each item actually imported and exported is recorded in the customs declaration with the application of mixed tax;

b.2) The tax rate as percentage and taxable value of goods with the application of mixed tax specified at Point b, c, Clause 1, Article 92 of this Circular;

b.3) The absolute tax rate of goods with the application of mixed tax is specified at Point a, Clause 1 of this Article;

b.4) Exchange rate for tax calculation

2. Method of tax calculation for goods with the application of mixed tax and absolute tax:

a) The determination of import and export tax payable according to the absolute tax rate is done by the following formula:

Import and export tax payable according to the absolute tax rate

=

The number of unit of each item actually imported and exported is recorded in customs declaration with the application of absolute tax

x

The absolute tax rate is specified for a unit of goods item

x

Exchange rate for tax calculation

b) The determination of import and export tax payable for goods with the application of mixed tax is done by the following formula:

Import and export tax payable for goods with the application of mixed tax

=

Tax calculated by the provisions in Clause 2, Article 92 of this Circular

+

Absolute tax payable calculated by the provisions at Point a, Clause 2 of this Article

Article 94. Grounds and method of tax calculation for goods with the application of self-defense tax, anti-underselling tax and anti-subsidy tax

1. Organizations or individuals importing goods subject to self-defense tax, anti-underselling tax and anti-subsidy tax under the Decision of Minister of Industry and Trade are persons paying self-defense tax, anti-underselling tax and anti-subsidy tax.

2. Grounds for tax calculation:

a) The number of unit of each item actually imported is recorded in the customs declaration with the application of self-defense tax, anti-underselling tax and anti-subsidy tax;

b) Value of import tax calculation of each item imported with the application of self-defense tax, anti-underselling tax and anti-subsidy tax;

c) The tax rate of  each item as specified at Point d, Clause 1, Article 92 of this Circular.

3. Method of tax calculation:

Amount of defense tax, anti-underselling tax and anti-subsidy tax payable

=

The number of unit of each item actually imported is recorded in the customs declaration with the application of self-defense tax, anti-underselling tax and anti-subsidy tax

x

Price for import tax calculation

x

Tax rate of self-defense tax, anti-underselling tax and anti-subsidy tax

Total amount of import tax payable for goods with the application of self-defense tax, anti-underselling tax and anti-subsidy tax

=

Amount of tax payable calculated by the provisions in Clause 2, Article 92 or Clause 2, Article 93 of this Circular

+

Amount of self-defense tax, anti-underselling tax and anti-subsidy tax payable

 

 

 

 

 

 

 

 

 

 

 

Article 95. Time for tax calculation, time limit for tax payment; collection, payment and refund procedures for goods with the application of self-defense tax, anti-underselling tax and anti-subsidy tax

1. Time for tax calculation, time limit for tax payment:

a) Time for tax calculation complies with the provisions in Article 98 of this Circular;

b) Time limit for tax payment complies with the provisions in Clause 7, Article 20 of this Circular;

2. Collection, payment and refund procedures:

a) Collection and payment procedures:

a.1) If the import tax is the type of special collection, the self-defense tax, anti-underselling tax and anti-subsidy tax shall be paid to a corresponding budget collection account.

a.2) In case the raw materials and supplies imported for export production; the temporary imported and re-exported goods, the import tax shall be paid to the account of the customs authority, the self-defense tax, anti-underselling tax and anti-subsidy tax shall be paid to the deposit account of the customs authority as import tax.

b) Refund procedures:

After receiving the Decision on application of self-defense tax, anti-underselling tax and anti-subsidy tax or Decision on non-application of self-defense tax, anti-underselling tax and anti-subsidy tax of the Minister of Industry and Trade (official Decision), the customs authority shall refund the overpaid tax to the payer as prescribed in Article 26 of this Circular.

Article 96. Application of grounds for tax calculation for a number of special cases

1. For goods with change of purpose of use compared with the specified purpose subject to not subject to tax, tax exemption, tax exemption consideration or with application of preferential or special preferential tax rate and tax rate under tariff quantity, the grounds for tax calculation is the value of tax calculation, tax rate and exchange rate at the time of registration of new declaration (the time of change of purpose of use). Particularly:

a) The value of import tax shall comply with the provisions of the Customs Law, the Law on Export and Import Tax, Decree No. 40/2007/ND-CP and Circular of the Ministry of Finance.

b) The tax rate for calculation of import tax shall apply with the tax rate at the time of registration of new declaration;

If the tax payers change their purpose of use to domestic consumption without voluntary declaration and tax payment with the customs declaration, the provisions at Point c, Clause 8, Article 11 of this Circular shall apply.

2. For goods manufactured, processed, recycled or assembled in non-tariff areas using materials and components imported from abroad specified in Clause 16, Article 100 of this Circular, the calculation of tax shall be done in accordance with Clause 4 and 6, Article 13 of Decision No. 33/2009/QD-TTg dated March 02, 2009 by the Prime Minister on the issuance mechanisms and financial policies for border-gate economic zones or documents amending, supplementing or superseding this Decision.

3. For imported goods subject to one of the measures of import tax (self-defense tax, anti-underselling tax and anti-subsidy tax), the price for calculation of special consumption and the value-added tax value must be added with the self-defense tax, anti-underselling tax and anti-subsidy tax.

Article 97. Procedures for declaration, classification and calculation of tax for machinery and equipment under Chapters 84, 85 and 90 of preferential import tariff as combinations and lines meeting notes 3,4 and 5 Part XVI of List of Vietnamese imports and exports

1. The machinery and equipment under Chapters 84, 85 and 90 of preferential import tariff as combinations and lines meeting notes 3, 4 and 5 Part XVI of List of Vietnamese imports and exports shall be classified by the main machine, regardless imported from one or more sources, brought back on the same trip or multiple trips with the procedures performed at one or multiple different border gates.

2. In order to have the grounds for monitoring and classifying machinery and equipment as combinations and lines imported from one or multiple sources, brought back on the same trip or multiple trips with the procedures performed at one or multiple different border gates, imported as CBU or CKD, the procedures are performed as follows:

a) Customs declarants’ responsibility:

a.1) In addition to the customs procedures as prescribed, the customs declarant shall register the List of machinery and equipment under Chapters 84, 85 and 90 of preferential import tariff as combinations and lines with tax calculation by main machinery (under the Form No. 04/DKDMTBTT/2013 of the Annex III issued together with this Circular) with the customs Sub-Department where the enterprise’s head office is located. If the place where the head office is located has no customs Sub-Department, registration shall be done at the customs Sub-Department at the most convenient place.

If the customs declarants register the list and import machinery and equipment (one time or multiple times) at the same customs Sub-Department, they shall inform that customs Sub-Department when performing the procedures for registration of list so that the Sub-Department shall perform the procedures for receiving the registration of list as prescribed at Point b.1 below.

a.2) Dossier and documents submitted upon registration of List of machinery and equipment under Chapter 84, 85 as combinations and lines:

a.2.1) List of machinery and equipment under Chapter 84, 85 as combinations and lines expected to be imported (under the Form No. 05/DMTBDKNK-MC/2013 attached to the Annex II of this Circular) particularly specifying the name, amount, unit price and identification number according to the tariff of machinery and equipment, type and identification number of main machinery and equipment: submitting 02 originals attached to 01 reconciliation monitoring slip (under the Form No. 06/PTDTL-TBMC/2013 issued together with the Annex II of this Circular);

a.2.2) The explanation and diagram showing the location of each type of machinery and equipment in the list of machinery and equipment under Chapter 84 or Chapter 85 as the combinations or lines: submitting the copy and showing the original for comparison;

a.2.3) The commitment and taking responsibility before law for the accurate and truthful declaration of two types of document above mentioned.

a.3) Making full payment of tax of machinery and equipment in the List and subject to sanction for improper declaration.

b) Responsibilities of customs authority:

b.1) When receiving the List of machinery and equipment under Chapter 84 and 85 as the combinations and lines: the customs Sub-Department where the customs declarant registers the List shall perform the examination. If meeting the contents specified in the notes 3, 4 and 5 of Part XVI, the customs Sub-Department shall prepare book to monitor and affix seal for certification on 02 Lists of imports and 01 copy of reconciliation monitoring slip presented to the customs authority where the procedures for importing goods in order to calculate tax by the main machinery and implement the reconciliation upon performance of customs procedures for goods actually imported) as prescribed.

If the customs declarant registers the List and performs the import procedures (one or multiple times) for the entire machinery and equipment under Chapter 84 and 85 as the combinations and lines at the same customs Sub-Department, then customs Sub-Department receives the registration of List (as the customs Sub-Department performing the import procedures). After forming monitoring book and affixing certification seal on the 02 copies of List of imported goods (retaining 01 original of List and handing over the another original of List to the customs declarant), the customs Sub-Department shall retain an original of reconciliation monitoring slip and performs the procedures specified at Point b.2 below:

b.2) Upon performance of import procedures: In addition to the prescribed customs procedures, the customs authority shall base on the customs dossier and compare with the reconciliation monitoring slip to reconcile the machinery and equipment actually imported by the customs declarant and sign for confirmation as prescribed. Retaining 01 copy of List of machinery and equipment and reconciliation monitoring slip reconciled in the customs dossier.

All imported goods are recorded in the reconciliation monitoring slip, the leaders of customs Sub-Department where the final procedures are performed shall certify on the original of reconciliation monitoring slip of the customs declarant, retaining a copy and issuing 01 copy to the customs declarant and send the original to the customs Sub-Department where the reconciliation monitoring slip is issued.

In case the customs Sub-Department receiving the registration of List is also the customs Sub-Department performing the import procedures for machinery and equipment as specified at Point b.1 mentioned above, after the leaders of customs Sub-Department has completed the confirmation of the entire amount of imported goods in the reconciliation monitoring slip, the Sub-Department shall retain the original, issue a copy to the customs declarant, send a copy of reconciliation monitoring slip together with dossier for registration of list to the Post customs clearance Audit Customs Sub-Department as prescribed at Point b.3 below.

b.3) After receiving the original of reconciliation monitoring slip sent by the customs Sub-Department where the final procedures are performed, the customs Sub-Department where the List is registered and reconciliation monitoring slip is issued shall gather all dossiers for registration of List to transfer them to the Post customs clearance Audit Customs Sub-Department as a basis for post-clearance check of use of combination of machinery and equipment taxed by the main machinery.

c) For cases of actual import but not in line with the List of import of machinery and equipment under Chapter 84 and 85 as the combinations and lines as announced, the customs declarants shall declare themselves and make payment of tax by each machine. If the customs authority or other authorities check and detect and determine the actual goods are not installed and used as combinations and lines, in addition to make full payment of tax by each machine and equipment, the sanction shall be imposed as prescribed.

d) In cases of the previous import of machinery and equipment in sync and the whole with the competent authority’s certification of main machinery and goods actually imported and classified by the main machinery, the rest imported shall be further classified by the main machinery.

3. In cases of importing machinery and equipment satisfying the notes 3, 4 and 5, Part XVI of List of Vietnamese imports and exports but the customs declarants do not wish to classify them under the guidance at Point 1 of this Article, they shall be subject to classification and calculation of tax by each machine and equipment.

4. For cases of importing machinery and equipment under Chapter 90 of preferential import tariff, if satisfying the notes 3, 4 and 5, Part XVI of List of Vietnamese imports and exports, regardless imported from one or multiple sources, brought back on the same trip or multiple trip and performed with procedures at one border gate or multiple different border gates, these machinery and equipment shall apply the same procedures as guided in Clause 2 and 3 of this Article.

Section 2. TIME FOR TAX CALCULATION AND EXCHANGE RATE FOR TAX CALCULATION

Article 98. Time for tax calculation and exchange rate for tax calculation for imports and exports

1. The time for calculation of import and export tax, self-defense tax, anti-underselling tax and anti-subsidy tax (in the period of validity of Decision application of the Minister of Industry and Trade) is the date of registration of customs declaration. The export and import tax is calculated at the tax rate, taxable value at the time of the tax calculation.

In case the taxpayers declare and calculate tax before the date of registration of customs declaration but with the exchange rate different from that at the time of registration of customs declaration, then the customs authority shall re-calculate the amount of tax payable by the exchange rate at the time of registration of customs declaration.

2. If the taxpayer makes electronic declaration, the time for tax calculation shall comply with the regulations on electronic customs procedures.

3. The exchange rate for tax calculation shall comply with the provisions in Clause 3, Article 7 of Decree No. 87/2010/ND-CP dated August 13, 2010 of the Government. If the exchange rate is posted on the People's Newspaper is different from that posted on the daily website of the State Bank of Vietnam, the exchange rate for tax calculation for imported or exported goods is the one announced by the State Bank at the time the tax calculation posted on the website of the State Bank.

Article 99. Time for tax calculation for imports and exports with one-time registration of customs declaration

The imports and exports with one-time registration of customs declaration for multiple time import and export, then the import and export tax shall be calculated at the tax rate, value of tax calculation and the value of tax calculation applies on the day of customs procedures with exports and imports on the basis of actual amount of each item actually exported and imported.

Section 3. CASES OF TAX EXEMPTION AND PROCEDURES FOR TAX EXEMPTION

Article 100. Cases of tax exemption

1. Goods temporarily imported for re-export or temporarily exported for re-import for participation in trade fairs, exhibitions, product launches; machinery, equipment , professional instruments temporarily imported for re-exported or temporarily exported for re-import in service of work such as conferences, seminars, scientific research, sports competition, cultural and art performance, health examination and treatment, components, spare parts temporarily imported for replacement or repair of foreign vessels and aircrafts ... ( except for machinery and equipment temporarily imported for re-export are subject to tax exemption under the provisions of Clause 17 of this Article or tax refund instructions guided in Clause 9, Article 112 of this Circular) and subject to import tax exemption upon temporary import and export tax exemption upon re-export for goods temporarily imported for re-export or exempted from export tax upon temporary export and from import tax upon re-import for goods temporarily exported for re-import.

The goods subject to tax exemption in this Clause if exceeding the time limit for temporary import for re-export or temporary export for re-import specified in Article 53 of this Circular must make tax payment.

2. The goods as the movable property of Vietnamese organizations and individuals or foreign ones brought into Vietnam or abroad within the prescribed extent, including:

a) The goods as the movable property of foreign organizations and individuals permitted to reside or work in Vietnam at the invitation of the competent state authority or transferred abroad upon the expiration of residence or working in Vietnam;

b) The goods as the movable property of Vietnamese organizations and individuals permitted to bring abroad for business and work shall be exempted from tax for property brought abroad and re-imported into Vietnam upon expiration.

c) The goods as the movable property of Vietnamese family and individuals that settle abroad and are permitted to come back for settlement in Vietnam or are brought abroad when permitted for settlement abroad; the goods as the movable property of foreigners brought into Vietnam when permitted for settlement in Vietnam or brought abroad when permitted for settlement abroad.

For automobiles and motorcycles being used by families and individuals and brought into Vietnam when permitted for settlement in Vietnam are only exempted from import tax only one unit for each type;

The determination of goods as movable property shall comply with the provisions in Clause 5, Article 5 of the Law on import and export tax and guiding documents.

3. The imports and exports of foreign organizations and individuals are entitled to privileges and immunities in Vietnam shall comply with the provisions of the Ordinance on the Privileges and Immunities for diplomatic missions, consular agencies and representative offices of international organizations and other documents detailing and guiding the implementation of this Ordinance.

4. Goods exported and imported for processing are exempt from tax under the provisions of Clause 4, Article 12 of Decree No. 87/2010/ND-CP (under the processing contract announced).

a) The goods exempted from tax under the processing contract include:

a.1) Raw materials imported and exported for processing;

a.2) Materials imported and exported involved in the process of production, processing (paper, chalk, brushes, markers, clothes pins, printing ink, glue brushes, printing frames, bleacher, varnishing oil ...) in case the enterprises have developed consumption rate and the rate of loss;

a.3) Goods imported and exported as samples for processing;

a.4) Machinery and equipment imported or exported for directly serving the processing are agreed upon in the processing contract. When the time for implementation of processing contract is over, such machinery and equipment must be re-exported or imported. If failing to re-export or re-import them, it is required to make declaration for tax payment as prescribed. If left as gift or donation, they shall be exempted from import and export tax under the guidance in Clause 4, Article 104 of this Circular;

a.5) Re-exported processed products (if there is export tax);

a.6) Finished products imported to be attached to the processed products or packed together with the processed products into uniform item and exported abroad; components and spare parts imported for warranty for exported processed products are exempted from tax as raw materials and supplies imported for processing if fully meet the following conditions:

a.6.1) Being mentioned in the processing contract or accompanying documents of processing contract;

a.6.2) Being managed as raw materials and supplies imported for processing;

a.7) Goods imported for processing are permitted for destruction in Vietnam as prescribe by law after disposal and liquidity of processing contract and full performance of customs procedures as guided by the Ministry of Finance.

b) Goods exported abroad for processing for Vietnamese party are exempted from export tax and when imported into Vietnam, the import tax must be paid for products after processing (no tax for the value of material and supplies brought to be processed under the processing contract signed; the tax rate of import tax shall be calculated by the imported products after processing; the origin of products is determined by regulations on origin of the Ministry of Industry and Trade).

c) If the machinery and equipment, materials, supplies and processed products paid by foreign party in lieu of processing payment are imported, the import tax must be paid as prescribed;

d) Processing quantity:

Director of enterprise receiving the processing is responsible for the use quantity, consumption quantity and rate of loss (hereafter referred to as quantity) for the goods imported under processing contract used in the right purpose of processing. Cases of violation shall be handled by law.

The development and announcement of quantity shall comply with the guidance of the Ministry of Finance.

Waste and scrap in the use quantity, consumption quantity and rate of loss of the processing type meeting the regulations in Article 31 of Decree No. 12/2006/NĐ-CP and agreed upon in the processing contract and notified to the customs authority under the guidance of the Ministry of Finance shall be handled on import tax similarly to the waste and scrap of the type of importing materials and supplies for production of exported products as guided at Point d.3, Clause 5, Article 112 of this Circular.

5. Goods imported and exported in the criteria of tax-exempt luggage of persons entering or exiting; goods sent via express service within the tax-exempt quantity under the provisions of the Government and the Prime Minister.

a) Goods imported and exported in the criteria of tax-exempt luggage of entering or exiting persons

a.1) For exiting persons: In addition to items in the List of goods banned from export or conditional export, the other items as luggage of the exiting persons have no limited quantity.

a.2) For entering persons:

a.2.1) Tax-exempt quantity shall comply with the provisions in the Decree No. 66/2002/ND-CP dated July 01, 2002 of the Government stipulating the luggage quantity of the persons entering or exiting and tax-exempt gifts and donations;

a.2.2) If the imported goods exceed the criteria for tax exemption, the excessive part of quantity must be imposed with import tax. If the total amount of tax payable for the excessive part is less than 50 (fifty) thousand dong, tax exemption shall be imposed even for the excessive part. The entering persons are permitted to choose items for tax payment if the luggage includes a lot of items.

b) Goods sent via express services:

Goods sent via express services with the declared value within tax-exempt quantity as prescribed in the Decision No. 78/2010/QĐ-TTg dated November 30, 2010 of the Prime Minister on the value of imported goods sent via express services are exempt from tax. If the imported goods exceeding criteria for tax exemption, it is required to make payment of tax for the entire batch of goods; if the total amount of tax to be paid of the entire batch of goods is less than 50 (fifty) thousand dong, the entire batch of goods shall be exempt from tax;

6. Goods purchased, sold or exchanged by border residents are exempt from export and import tax within the quantity. If exceeding the quantity, it is required to pay tax for the excessive part.

Regulations on border residents and tax-exempt quantity for the goods purchased, sold or exchanged by border residents shall comply with the provisions of the Decision No. 254/2006/QD-TTg dated November 07, 2006 by the Prime Minister on the management of border trade activities with bordering countries and Decision No. 139/2009/QD-TTg dated December 23, 2009 by the Prime Minister, amending and supplementing a number of articles of Decision No. 254/2006/QD-TTg dated November 07, 2006 of the Prime Minister.

7. Goods imported to form fixed assets of investment projects in the field of import tax incentives specified in Annex I issued together with this Decree No. 87/2010/ND-CP or areas of import tax incentives specified in Annex of list of area with incentives of business income tax issued together with Decree No. 124/2008/ND-CP dated December 11, 2008 of the Government detailing and guiding a number of articles of the Law on business income tax and Decree No. 53/2010/ND-CP dated May 19, 2010 of the Government stipulating the area of investment incentives and business income tax incentives for administrative units newly established by the Government’s adjustment of administrative boundaries and investment projects funded by official development assistance ( ODA ) are exempt from import tax, including :

a) Machinery and equipment if fully satisfying the following conditions:

a.1) Being consistent with the field of investment, objectives and scale of investment projects;

a.2) Satisfying regulations on fixed assets in the Circular No. 45/2013/TT-BTC dated April 25, 2013 of the Ministry of Finance.

b) Means of specially used transport in technological lines which can not be manufactured in the country; vehicles transporting workers, including automobile of 24 seats or more and waterway vehicles:

b.1) List of specially used means of transport which have been manufactured as a basis for tax exemption specified at this Point shall comply with regulations of the Ministry of Planning and Investment;

b.2) List or criteria for determining the specially used means of transport in the line of technology as a basis for tax exemption specified at this Point shall comply with regulations of the Ministry of Science and Technology.

c) Components, details, single parts, spare parts, molds and accessories for assembly with the equipment, machinery and means of transportation are exempt from tax specified at Points a and b of this Clause if falling into one of the two conditions as follows:

c.1) Components, details, parts of equipment, machinery and means of transportation vehicles are imported in bulk;

c.2) Components, details, single parts, spare parts, molds and accessories imported for assembly and connection with machinery and equipment together to ensure the system of machinery and equipment to operate normally.

d) Raw materials and supplies which can not be manufactured are used to manufacture equipment and machinery in technological lines or manufacture components, details, single parts, spare parts, molds and accessories specified at Point c of this Clause for assembling with equipment and machinery specified at Point a of this Clause.

List of raw materials and supplies that can be manufactured as a basis for tax exemption specified at this Point shall comply with the provisions of the Ministry of Planning and Investment.

e) Construction materials which can not be produced domestically.

List of constructional materials which can be produced domestically as a basis for tax exemption specified at this Point shall comply with the provisions of the Ministry of Planning and Investment.

8. Variety of plants and domestic animals are allowed to be imported for the implementation of investment projects in the fields of agriculture, forestry and fisheries.

List of variety of plants and domestic animals are allowed to be imported as a basis for the implementation of tax exemption specified in this Clause shall comply with regulations of the Ministry of Agriculture and Rural Development;

9. The exemption of import tax for imported goods specified in Clause 7 and 8 of this Article shall apply for case of expanding project scale, technological replacement and renovation;

10. Tax exemption imposed for first-time for goods as imported equipment as listed in Annex II issued together with Decree No. 87/2010/ND-CP to form fixed assets of the project with incentives of import tax, investment projects funded by official development assistance (ODA) to invest in hotels, offices, apartments for rent, residential houses, commercial centers, technical services, supermarkets, golf courses, resorts, sports facilities, recreation areas, health facilities, education, culture, finance, banking, insurance, auditing and consulting services.

The projects subject to incentives in this Clause are not exempt from tax as prescribed in other Clauses of this Article.

11. Goods imported in service of petroleum activities, including:

a) Equipment and machinery have met the conditions specified at Point a, Clause 7 of this Article; specially used means of transport are necessary for petroleum activities; vehicles for transporting workers include automobile of 24 seats or more and waterway vehicles; components, details, single parts, spare parts, molds, accessories for assembly or use in sync with the equipment, machinery and specially used means of transport, vehicles for transporting workers mentioned above have met the conditions specified at Point c, Clause 7 of this Article;

List of criteria for determining the specially used means of transport necessary for petroleum activities as a basis for the tax exemption specified at this Point shall comply with regulations of the Ministry of Science and Technology.

b) Materials necessary for the petroleum activities can be manufactured in the country.

List of materials necessary for the petroleum activities can be manufactured in the country as a basis for tax exemption specified at this Point shall comply with regulations of the Ministry of Planning and Investment;

c) Medical equipment and emergency drugs used on drilling rigs and floating structures are certified by the Ministry of Health;

d) Office equipment for petroleum activities;

e) Other goods temporarily imported for re-export in service of petroleum activities;

In case the goods specified in this Clause imported by the sub-contractors and other organizations and individuals including direct import, consignment, bidding, lease and sub-lease….for supply to the organizations and individuals conducting the survey, exploration and extraction of oil and gas through contract of petroleum services or contract of goods supply are also exempt from import tax.

12. Goods of shipbuilding facilities are exempt from export tax for products of vessels and exempt from import tax for:

a) Types of machinery and equipment to form fixed assets meet the conditions specified at Point a, Clause 7 of this Article.

b) Means of transportation in technological lines form fixed assets.

List or criteria for determining means of transportation in the technological lines as a basis for tax exemption specified at this Point shall comply with regulations of the Ministry of Science and Technology.

c) Raw materials, supplies and semi-finished products for shipbuilding which can not be produced in the country.

List of raw materials, supplies and semi-finished products for shipbuilding which can be produced in the country as a basis for tax exemption specified at this Point shall comply with regulations of the Ministry of Planning and Investment;

13. Import tax exemption shall be imposed for raw materials and supplies imported in direct service of production of software which cannot be produced in the country;

List of raw materials and supplies in direct service of production of software which can be produced in the country as a basis for tax exemption specified at this Point shall comply with regulations of the Ministry of Planning and Investment;

14. Import tax exemption shall be imposed for imported goods for direct use in scientific research and technological development activities, including: machinery, equipment, spare parts, supplies, means of transportation that cannot be manufactured in the country or cannot be created by domestic technology; materials, books, newspapers, scientific magazines and electronic sources of information on science and technology;

List of machinery, equipment, spare parts, supplies, means of transportation and technology directly used in scientific research and technological development that can be manufactured in the country as a basis for implementation of tax exemption specified in this Clause shall comply with regulations of the Ministry of Planning and Investment.

15. Tax exemption shall be imposed within 05 years from the date of commencement of production for raw materials, supplies, components that cannot be manufactured in the country and are imported for production of the projects invested in:

a) Special fields with investment incentives specified in Annex I issued together with Decree No. 87/2010/ND-CP dated August 13, 2010 of the Government (except for the projects of manufacture and assembly of car machines, air conditioners, heaters, refrigerators, washing machines, electric fans, dishwasher, DVD player, sound system, electric irons, kettles, hair dryers, hand dryers, alcohol, beer, tobacco and other goods items that are not exempt from tax by the Prime Minister’s decision).

b) Areas with specially difficult social and economic conditions as prescribed in Annex of List of area with incentives of business income tax issued with Decree No. 124/2008/ND-CP dated December 11, 2008 of the Government detailing and guiding a number of articles of the Law on business income tax and Decree No. 53/2010/ND-CP dated May 19, 2010 stipulating the areas with investment incentives and incentives of business income tax for administrative units newly established by the Government’s adjustment of administrative boundaries (except for the projects of manufacture and assembly of car machines, air conditioners, heaters, refrigerators, washing machines, electric fans, dishwasher, DVD player, sound system, electric irons, kettles, hair dryers, hand dryers, alcohol, beer, tobacco and other goods items that are not exempt from tax by the Prime Minister’s decision).

The determination of commencement day of production as a basis for import tax exemption within 05 years under the guidance of this Clause is the day when the enterprise has conducted production activities and is certified by the Management Board of industrial parks, export processing zones, hi-tech parks and economic zones ... where the enterprise is operating or is certified by the Service of Trade of localities where there are projects in case the enterprise do not operate in the above areas.

List of raw materials, supplies and components, which can be produced in the country as a basis for tax exemption from taxation specified in this Clause shall comply with the provisions of the Ministry of Planning and Investment.

16. Goods manufactured, processed, recycled or assembled in non-tariff areas without using materials and components imported from foreign countries shall be exempt from tax when imported into the domestic market. In case of using materials and components imported from foreign countries, they shall be imposed with import tax. The grounds and method of calculation of import tax shall comply with the guidance in Clause 2, Article 96 of this Circular.

17. Machinery, equipment, and means of transportation imported into Vietnam by foreign contractors by mode of temporary import for re-export to implement ODA projects in Vietnam shall be exempt from import tax upon temporary import and export tax upon re-export. At the end of project or building construction period, the foreign contractors must re-export the goods mentioned above. If not re-exporting but disposing or transferring these goods in Vietnam, they must obtain permission from the state competent authority, declare, and pay import tax as prescribed.

As for automobiles under 24 seats and automobile are designed for both passengers and cargo transportation equivalent to automobiles under 24 seats, the form of temporary import for re-export shall not apply. The foreign contractors wishing to import them into Vietnam for use shall pay import tax as prescribed. When completing the building construction, the foreign contractors must re-export the imported vehicles and are refunded with the paid import tax. The tax refund shall comply with the guidance in Clause 9, Article 112 of this Circular.

18. Goods as raw materials, supplies and semi-products that cannot be produced in the country and are imported in service of production of investment projects in border gate economic zone. These goods shall be exempt from tax as prescribed in Decision No. 33/2009/QD-TTg dated March 02, 2009 of the Prime Minister issuing mechanisms and financial policies for border-gate economic zones documents guiding the implementation.

19. Goods imported for sale at tax-exempt shops in accordance with the Decision of the Prime Minister shall comply with the guidance in Circular No. 120/2009/TT-BTC on dated June 16, 2009 by the Ministry of Finance.

If there are promotional or trial goods provided by foreign party free of charge for tax-exempt shops to sell together with goods sold at tax-exempt shops, the promotional goods or trial goods mentioned above are exempt from tax. The promotional and trial goods of goods are subject to the supervision and management of the customs authority as imported goods for sale at shops selling tax-exempt goods.

20. Tax exemption shall be imposed in special cases as prescribed in Clause 20, Article 12 of Decree No. 87/2010/ND-CP dated August 13, 2010 of the Government;

21. Components, parts of machinery and equipment that can not be produced in the country and are imported by organizations and individuals in service of projects of agricultural machinery manufacture, reducing post-harvest losses are entitled to incentive policies under Decision No. 63/2010/QD-TTg dated October 15, 2010 of the Prime Minister and are exempt from import tax if satisfying the following conditions:

a) The importing organizations and individuals under the list of organizations and individuals manufacturing machinery and equipment to reduce post-harvest losses are entitled to incentive policies under Decision No.63/2010/QD-TTg published by the Ministry of Agriculture industrial and Rural Development;

b) Components, parts of machinery and equipment imported entitled to import tax exemption must satisfy the following conditions:

b.1) Not being in the List of equipment, machinery, spare parts and specialized means of transport that can be manufactured in the country is issued by the Ministry of Planning and Investment;

b.2) Being consistent with the fields of investment in manufacture of agricultural machinery to reduce post-harvest losses specified in the investment certificate;

b.3) Being consistent with the technical design material and installation diagram of machinery and equipment;

b.4) The number of components and parts of imported machinery and equipment must be consistent with must be compatible with production capacity of organizations and individuals.

c) Organizations and individuals are eligible for tax exemption in this Clause shall make a written commitment to the accuracy and self-responsibility before law for the number of components and parts of imported machinery and equipment and select a most convenient customs Sub-Department to facilitate import procedures.

22. Other guidelines:

a) The cases subject to import tax exemption to form the fixed assets mentioned in this Article, but not import goods from abroad and permitted to receive goods exempt from import tax transferred from other enterprise in Vietnam, the enterprise receiving these goods are exempt from import tax while the arrears of import tax shall not be collected against enterprises permitted for transfer of goods provided that the transfer price does not include import tax.

b) If the importing organizations and individuals consign or win the bid of goods importing (price of goods supply under the consignment contract or bid-winning price by the bid-winning decision excluding import tax) to provide for the beneficiaries of incentive import tax exemption as prescribe from Clause 7 to Clause 18 of this Article shall also be exempt from import tax for the consigned or bid-winning imports.

c) Goods and equipment imported to form fixed assets of the projects with incentive investment and import tax incentives under the fields and areas of investment incentives in accordance with the relevant laws, but the project owner has transferred them to other organizations and individuals (conversion of project owner) shall continue to be exempt from import tax if fully satisfying the following conditions:

c.1) At the time of transfer, the Law on Export and Import Tax and documents guiding the implementation still prescribe that the project is under the field and area with investment incentives;

c.2) The transfer price of machinery and equipment to form fixed assets of the project does not include import tax;

c.3) Organizations and individuals receiving the transfer (new project owner) is the investor having project transferred are specified in the modified investment certificate.

After 10 days from the date of transfer, the project owner receiving the transfer and organizations and individuals receiving the transfer must make declaration to the customs authority where the List of tax-exempt goods of the project on the transfer has been registered.

d) In case the financial leasing companies importing machinery and equipment and means of transportation for persons entitled to the incentives of import tax exemption specified in Clauses 7, 9, 11, 12 and 14 of this Article to lease shall also be exempt from import tax as project owner directly importing them in accordance with the provisions in Clause 1, Article 22 of Decree No. 16/2001/ND-CP dated May 02, 2001 if fully satisfying the following conditions:

d.1) Leasing price under financial leasing contract does not include the import tax;

d.2) Tax-exempt goods are deducted from the List of duty free goods and reconciliation monitoring slip of tax-exempt goods of projects with investment incentives made by the owner of projects with investment incentives receiving the transfer

After the termination of the financial lease contract, if the goods of financial leasing are exempt from tax without being used for projects with incentive investment for the same purposes when imported, the financial leasing company must declare and pay tax lease under the guidance in Clause 8 of Article 11 of this Circular. The projects with investment incentives are not permitted to import goods to replace goods of financial leasing exempt from import tax.

dd) For projects of investment incentives which have been licensed with investment certificate and investment incentive certificate before the effective date of Decree No. 87/2010/ND-CP with the higher incentives of import and export tax than that guided in Decree No. 87/2010/ND-CP shall continue to comply with those incentives if satisfying the following conditions:

dd.1) The investment certificate and investment incentive certificate that are still valid without change in the terms of investment incentives.

The incentives specified in the investment certificate and investment incentive certificate are in accordance with law at the time of issuance of investment certificate and investment incentive certificate

dd.2) Performing the registration of List of tax-exempt goods as prescribed;

In case the incentives of import and export tax are stipulated in the investment certificate and investment incentive certificate lower than that specified in Decree No. 87/2010/ND-CP, the incentives in Decree No. 87/2010/ND-CP shall apply for the remaining incentive time of project;

Article 101. Registration of list of tax-exempt imports

1. Cases where the list of tax-exempt imports must be registered:

The goods specified in Article 13 of Decision No. 33/2009/QD-TTg and Clause 7, 8, 9, 10, 11, 12, 13, 14, 15 and 18, Article 100 of this Circular must register the list of tax-exempt imports and exports;

2. The persons register the List of tax-exempt imports: organizations and individuals using the goods (project owner, owner of ship yard,…) are persons who register the  List of tax-exempt imports (under the Form No. 07/DMHHNKMT/2013, Annex II issued together with this Circular). The registration of List is done before performing the procedures for import of goods. If the project owner does not import the tax-exempt goods but the main contractor or sub-contractor or financial leasing company, then the contractor or financial leasing company shall use the List of tax exemption registered by the project owner with the customs authority.

3. Place for registration of List

Customs Department of cities or provinces where the investment projects are implemented. For identified projects, the Customs Department of where the investment project is implemented or Customs Department of cities or provinces where the head office is located. For non-identified projects, the Customs Department of where the investment project is implemented or the nearest provincial or municipal Customs Department for cities or provinces having no customs authority. The Director of provincial or municipal Customs Department shall select and assign a unit eligible for registration of List of tax-exempt imports.

In case the provincial or municipal Customs Department managing the customs for some provinces, in addition to the registration units mentioned above, the director of provincial or municipal Customs Department shall consider and assign the Customs Sub-Department managing the customs in the provincial area where there are investment projects to implement the registration of List of tax-exempt imports for projects in that provincial area.

4. Registration dossier

When performing the registration of List of tax-exempt imports with the customs authority, the person registering the List of goods shall submit or show dossier with the following documents to the customs authority:

a) Document requesting the registration of List of tax-exempt imports, specifying the amount of goods and reasons for tax exemption under the Form issued together with this Circular (Form No. 08/CVDKDMMT/2013, Annex II applicable for fixed assets and Form No. 09/CVDKDMMTK/2013, Annex II applicable for other cases): submitting 01 original;

b) List of tax-exempt imports: submitting 02 originals together with 01 reconciliation monitoring slip (Form No. 10/PTDTL-UDDT/2013, Annex II issued together with this Circular), particularly:

b.1) The List of tax-exempt imports is consistent with the industry and investment sector, objectives, scale of project and reconciliation monitoring slip developed only one time for the entire project or for each stage of project implementation, each building item of the project (if in the investment Certificate issued by the competent authority or economic and technical feasibility study, technical and scientific materials of project,…showing that the project is implemented by each phase or building item) or developed by each combination and line if the goods are the system of combinations and lines of machinery and equipment.

b.2) If the List registered for the entire project or for each phase, item, building, combination and line has error or needs changing, the customs declarants are permitted to change provided that they must have papers and documents submitted to the customs authority before the time of goods import to prove the supplementation and adjustment are consistent with requirements of projects.

c) The economic and technical feasibility study and detailed technical design materials of projects and extended project or documents of the competent authority approving the annual work program and annual budget or annual Resolutions of joint venture Council: showing the original and submitting 01 copy;

d) If at the time of registration of List, the customs declarants have not submitted the two types of document specified at Point d of this Clause, the customs authority where the List has been registered shall note in the registered List so that the customs Sub-Department where the procedure are perform may verify these two types of document.

dd) Depending on the cases below, the taxpayers shall additionally submit or show the following dossiers:

dd.1) d.1) Investment Certificate (including domestic investment projects with the scale of less than fifteen billion Vietnam dong) for investment projects under Investment Law: showing the original and submitting 01 copy;

dd.2) Expanded investment Certificate in case of expanding project, replacing or renovating technology in cases specified in Clause 9, Article 100 of this Circular for investment projects expanded under Investment Law: submitting 01 copy;

dd.3) d.3) Decision of the Prime Minister or approval decision of the head of governing organs under the competence of approval for program of ODA project; written certification of the competent authority concerning the goods under ODA projects are not funded from the counterpart fund to pay tax for ODA projects: showing the original and submitting 01 copy;

dd.4) Shipbuilding contracts for materials, supplies and semi-finished products imported for shipbuilding: showing the original and submitting 01 copy;

dd.5) Explanation of software production projects for goods imported to produce software: showing the original and submitting 01 copy;

dd.6) Topics, scientific research projects and technology development are approved by the competent authority or investment Certificate in case of projects with investment incentives for scientific research, technological development for goods imported for direct use in scientific research and technological development: showing the original and submitting 01 copy;

e) Certification of the competent authority issuing the List of tax-exempt goods for projects licensed before January 01, 2006. For projects licensed before January 01, 2006 but have not been issued with the List of tax-exempt goods: showing the original and submitting 01 copy;

g) List of documents and dossiers for registration of List of tax exemption: submitting 01 original;

5. The grounds for the customs declarants make declaration or registration and the customs authority check the declaration or registration of List of tax-exempt imports are:

a) Types of documents and materials guiding from Point c, d, dd, e, Clause 4 of this Article;

b) The fields with incentives of import tax are specified in Annex I issued together with Decree No. 87/2010/NĐ-CP or areas with incentives of import tax are specified in Annex of List of areas with incentives of business income tax issued together with Decree No. 124/2008/ND-CP dated December 11, 2008 of the Government detailing and guiding a number of articles of the Law on business income tax and Decree No. 53/2010/ND-CP dated May 19, 2010 stipulating the areas with investment incentives and incentives of business income tax for administrative units newly established by the Government’s adjustment of administrative boundaries; equipment imported for the first time to form fixed assets specified in Annex II and Article 12 of Decree No. 87/2010/ND-CP and guidance in Article 100 of this Circular;

c) List of goods issued by the competent authority depending on each specific case as follows:

c.1) List of machinery, equipment, spare parts, special-use means of transportation, raw materials, supplies and semi-finished products that can be produced in the country is issued together with Circular No. 04/2012/TT-BKHDT dated August 13, 2012 of the Ministry of Planning and Investment;

c.2) List or determination criteria for special-use means of transportation in the technological lines of the Ministry of Industry and Trade;

c.3) List of plant varieties and domestic animals permitted for import of the Ministry of Agriculture and Rural Development;

c.4) List of groups of equipment only exempted from tax for the first time is specified in Annex II and Article 12, Decree No. 87/2010/ND-CP;

c.5) List or determination criteria of the Ministry of Industry and Trade for special-use means of transportation necessary for petroleum activities;

c.6) Certification of the Ministry of Health for medical equipment and emergency drugs used on drilling rigs and floating structures;

c.7) List or determination criteria of the Ministry of Science and Technology for goods as special-use means of transportation in technological line to form fixed assets of shipbuilding facility;

c.8) List of machinery, equipment, spare parts, supplies, means of transportation and technology used directly in scientific research and technological development produced in the country as a basis for determining the goods for scientific research and technological development is issued by the Ministry of Planning and Investment.

6. Time for registration of List: Before registration of the first import declaration of the project, item, project phase or expanded project.

7. If after the customs authority has certified in the List of tax-exempt imports and the reconciliation monitoring slip but detects the mistake of declaration in the List (quantity of goods exceeding the actual scale of project; type of goods not in line with objectives, purpose of use of goods,…), the customs authority where the List is registered shall:

a) Inform the person registering the List to adjust it in accordance with regulation;

b) Check the adjustment and update the processing result in the registered List by objectives and actual scale of project;

c) Collect tax against the amount of tax-exempt imports in excess of quantity and type compared with the new List after adjustment.

8. Cases where the investment projects whose investment Certificate is revoked the competent authority:

a) The customs authority where the List of tax-exempt imports is issued shall:

a.1) Revoke the issued List of tax-exempt imports;

a.2) Inform the customs authority nation wide of ceasing to perform the procedures for tax exemption under the issued List of tax-exempt imports;

b) The customs authority imposing tax exemption for projects under the revoked List shall collect tax for tax-exempt goods as prescribed;

9. If the enterprise loses the List of tax-exempt imports and the reconciliation monitoring slips, at the request of enterprise and certification of other local Customs Department on the loss of List of tax-exempt imports and the reconciliation monitoring slips, the customs authority where the enterprise has registered the List of tax exemption shall check and re-issue the List of tax-exempt imports and the reconciliation monitoring slip for the number of goods not imported of the     project

The checking and issuance of List of tax-exempt imports and the reconciliation monitoring slip are done as follows:

a) Dossier for re-issuance:

a.1) Written request for re-issuance of enterprise’s List of tax-exempt imports and the reconciliation monitoring slip specifying:

a.1.1) Reason for loss of List of tax-exempt imports and the reconciliation monitoring slip;

a.1.2) Name, quantity and value of goods under the registered List of tax-exempt;

a.1.3) Name, quantity and value of goods actually imported under the registered List of tax-exempt imports;

a.1.4) Name, quantity and value of remaining goods not imported under the registered List of tax-exempt imports;

a.2) All customs declaration of amount of imported goods under the registered List of tax-exempt imports and the reconciliation monitoring slip (showing the original and submitting the original) and the list of declaration of imported goods;

a.3) List of tax-exempt imports and the reconciliation monitoring slip of the customs authority where the procedures for importing the final batch of goods are performed before loss (01 copy with certification of customs authority at importing place);

The enterprise must undertake to take responsibility before law for the accuracy of the above declared information;

b) Implementation order:

b.1) In case of loss of List of tax-exempt goods: The customs authority of re-issuing place shall base on the requesting dossier and declaration documents provided by enterprise to inform the customs Department of provinces and cities of annulment of issued List and issue a copy of List of tax-exempt imports to replace the lost List of imports;

b.2) In case of loss of reconciliation monitoring slip:

b.2.1) Based on the enterprise’s declaration dossier of loss of reconciliation monitoring slip and re-issuance request, the customs authority shall implement the following:

- The customs authority of re-issuing place shall inform the customs Department of provinces and cities of annulment of reconciliation monitoring slip issued but lost and before considering the re-issuance, request the customs Department of provinces and cities to give a written certification of enterprise’s quantity of tax-exempt imports under the issued List and reconciliation monitoring slip (specify number of List and reconciliation monitoring slip as well as issue date);

- The customs Department of provinces and cities within 10 days after the receipt of document from the customs authority of issuing place shall:

+ Check and compare dossier of imported goods and the system of import and export data, determine the quantity of tax-exempt imports under the List of tax-exempt imports and reconciliation monitoring slip issued but lost and send the written confirmation to the customs authority of re-issuing place;

+ Not process the tax exemption for the subsequent batches of goods under the lost List of tax-exempt goods and the reconciliation monitoring slip;

b.2.2) After fully receiving the written confirmation from the customs Department of provinces and cities of the quantity of goods the enterprise has imported under the issued List of tax-exempt goods and the reconciliation monitoring slip, the customs authority of re-issuing place shall:

- Aggregate the quantity of goods the enterprise has imported with tax exemption under the issued List of tax-exempt goods and the reconciliation monitoring slip;

- Check and determine the amount of tax-exempt goods to form fixed assets of the project and the use of these goods before re-issuing the lost reconciliation monitoring slip;

- Re-issue the new reconciliation monitoring slip for the remaining amount of goods not imported of the lost reconciliation monitoring slip;

- Indicate on the re-issued the reconciliation monitoring slip: “ FIRST RE-ISSUANCE”

- Handle violations of regulation on dossier and document filing;

The time limit for settlement is within 05 working days from the date of receipt of complete written certification from provincial or municipal customs Departments;

Within 01 year from the date of re-issuing the List and the reconciliation monitoring slip, the customs authority shall perform post customs clearance check for projects requesting the re-issuance.

10. Taxpayer’s responsibility

a) Determining the needs for use and develop the List of tax-exempt imports and exports in accordance with regulations on tax-exempt persons of the Law on import and export tax, Decree No. 87/2010/ND-CP, Article 13 of Decision No. 33/2009/QD-TTg and guideline in this Circular and relevant documents;

b) Taking responsibility before law for the accurate and truthful declaration of imported goods in the List of tax exemption and the use with the right purpose of tax exemption for these goods;

11. Responsibility of customs authority:

a) The customs authority shall receive, check dossier and process as follows:

a.1) If the dossier is not complete, within 03 working days after the receipt of dossier, the customs authority shall reply in writing (stating the reasons);

a.2) If the dossier is complete, within 10 working days after the receipt of dossier, the customs authority shall check and compare with materials and documents in the dossier with the contents specified in Article 12 of Decree No. 87/2010/ND-CP, Article 13 of Decision No. 33/2009/QD-TTg and the guidelines in Article 100 and 101 of this Circular to determine the persons subject to tax exemption. The consistency and accuracy of dossier for registration of List of tax-exempt goods and the processing are as follows:

a.2.1) If the goods are not subject to tax exemption as prescribed, the customs authority shall not register the List of tax-exempt imports and reply in writing to the enterprise.

If the project is under the fields and areas of investment incentives but the goods in the List of tax-exempt imports are not consistent with the objectives, scale of project, the customs authority shall re-adjust the List of tax-exempt imports.

a.2.2) If subject to tax-exemption, all of the contents in dossier are consistent, the customs authority shall record it in the monitoring book and affix certification seal on 02 copies of List of tax-exempt imports and 01 copy of reconciliation monitoring slip (handing over 01 copy of List of tax-exempt imports and 01 copy of reconciliation monitoring slip for showing to the customs authority for reconciliation upon performance of customs procedures for goods actually imported and the customs authority at the issuing place shall retain 01 copy of List of tax-exempt imports) as prescribed.

a.2.3) If at the time of registration of List of tax-exempt imports, there is not enough grounds for determining the goods have satisfied the conditions specified at Point a and c, Clause 7 of Article 100, the customs authority where the List is registered shall note on the List and the reconciliation monitoring slip for checking and comparison upon import or post customs clearance check.

b) Reporting regulation:

Every 3 months no later than the 10th day of the first month of the next quarter, the customs Department where the List of tax-exempt imports is registered shall list cases registering the List of tax-exempt imports at its unit for report to the General Department of Customs under the Form No. 11/BCTHDMMT/2013, Annex II issued together with this Circular.

Article 102. Tax-exempt dossiers and procedures

1. Tax exempt dossier is a customs dossier as instructed in this Circular. In addition [to such dossier], taxpayers must supplement to the customs authority conducting the import procedures the missing papers which have not been presented at the registration of the List of Tax exempt goods with the customs authority registered the List for the cases subject to registration.

In cases of taxpayers having difficulties due to objective reasons and other cases exempted from export tax or import tax under the provisions in clause 20 of Article 12 of Decree No. 87/2010/ND-CP , there must be additional written confirmations of the People's Committees of provinces, cities or of Ministries, Ministerial-level agencies on the objective reasons proposed for exemption of export tax or import tax.

2. Tax exempt procedures:

a) For cases not subject to registration of the List of tax-exempt imports

a.1) Taxpayers must calculate themselves and declare the tax exempt amounts for each line of goods (except for import-export goods in the form of outsourcing), the customs declarations as in tax payable cases. The Customs authority shall base on the tax exempt dossiers, the tax amounts proposed for exemption to weigh against current regulations to do procedures for Tax exempt for each customs declaration in accordance with regulations.

Where a customs authority checks and determines that the export-import goods are not entitled to tax exempt as declared, it shall fix the tax and apply penalty (if any) in accordance with regulations.

a.2) Where taxpayers having difficulties due to objective reasons and other cases exempted from export tax and import tax under the provisions of clause 20 of Article 12 of Decree No. 87/2010/ND-CP:

a.2.1) Taxpayers shall determine themselves the amount proposed for tax exempt and send written request (attached with relevant documents) to the General Department of Customs to report to the Ministry of Finance to be submitted to the Prime Minister for tax exempt consideration;

a.2.2) The General Department of Customs shall check the whole files. If the files are incomplete or the reasons for tax exempt need clarifying, then it shall send written request for supplementation. When getting sufficient objective grounds, the General Department of Customs shall draft an official letter to report to the Ministry of Finance to be submitted to the Prime Minister;

a.2.3) Pursuant to the directing opinions of the Prime Minister, the Ministry of Finance shall send written notice to the taxpayer and relevant customs authority for implementation;

a.2.4) The customs authority conducting goods export and import procedures shall apply tax exempt to the goods allowed to tax exempt by the Prime Minister or fully collect the tax duly in accordance with the directing opinions of the Prime Minister.

b) For cases subject to registration of the List of tax-exempt imports

b.1) In addition to the customs procedures as instructed in point a.1 clause 2 of this Article, the customs authority shall base on the tax exempt files, weigh against the current regulations to update the quantity, to track and reconcile the tax-exempt imported goods in the reconciliation monitoring slip of taxpayer and sign the confirmation in accordance with regulations, and store 01 copy of the List of tax-exempt imports and the reconciliation form which specified the names and quantity of goods exempted from tax or import duty together with the import dossier (including the case where the goods of a tax exempt entity are transferred to another tax exempt entity).

b.2) Customs authorityshall only apply tax exempt to the cases where the customs declarations are registered after registration of the List. Where the customs declarations are registered before the date of List registration, the customs authorities shall document the files to report to the Ministry of Finance to consider the settlement of each particular case, including report on specific reasons and propose the direction for settlement.

3. Tax exempt for goods exported and imported via express services shall comply with the Circular of the Ministry of Finance, which provides the customs procedures for goods exported and imported via express services.

Article 103. Settlement/finalization of import and use of tax-exempt goods

1. Cases subject to finalization/

a) With respect to the cases subject to registration of the List of tax-exempt imports, beside of the obligation to use the tax-exempt goods in accordance with regulations, the taxpayer is also responsible for finalizing the import and use of tax-exempt goods in accordance with the List registered with the customs authority who registering the List in the form no. 12/QTHHNKMT/2013 or form no.13/QTNL-VT-LK-BTP/2013 of Appendix II issued in conjunction with this Circular for the management, monitoring and supervision of the import and use of all tax-exempt goods;

b) Where goods are components or machinery parts which can not be produced in Vietnam being imported by Vietnamese organizations and individuals to serve the projects of agricultural machinery production, post-harvest loss reduction which are entitled to preference policies under Decision no.63/2010/QD-TTg 15/10/2010 of the Prime Minister, they are exempt from import duties in accordance with the provisions in Clause 21 of Article 100 of this Circular.

2. Finalization period and contents:

a) With respect to the cases under point d clause 7, point c clause 12, clause 13, clause 15, clause 18, clause 21 of Article 100 of this Circular.

a.1) Finalization period:

a.1.1) Within 45 days after the end of shipbuilding contracts for the cases mentioned in clause 12, the end of software production activity with respect to clause 13, the end of the production, manufacture with respect to Point d, Clause 7, the end of the fiscal year for the cases in Clause 15 and Clause 18 of Article 100 of this Circular, the taxpayer must settle with the customs authority who registered the List of import and must make use of tax exempt imported goods of shipbuilding contracts or of software production activities or of the fiscal year.

a.1.2) Annually, the organizations and individuals importing duty free goods under clause 21 of Article 100 of this Circular shall prepare the finalization of tax-exempt imported goods with the customs authority conducting goods importing procedures.

a.2) Finalization contents:

a.2.1) Quantity of raw materials, supplies, components, semi-products imported free of tax;

a.2.2) Intended quantity of raw materials, supplies, components, semi-products imported free of tax in reality;

a.2.3) Quantity of raw materials, supplies, components, semi-products imported free of tax and used for production;

a.2.4) Quantity of manufactured products;

a.2.5) Quantity of raw materials, supplies, components, semi-products imported free of tax and used for other purposes;

a.2.6) Quantity of raw materials, supplies, components, semi-products imported free of tax in stock to be transferred to the next year.

a.3) Upon the expiry of the contracts for provision of goods or services in the cases referred to in clause 11 of Article 100 of this Circular, organizations and individuals who use the goods shall settle with the customs authorities registering the List and notify the organizations and individuals conducting the prospect, exploration and exploitation of oil and gas about the quantity and value of goods exempted from import taxes. The goods exempted from import taxes but not use for the prospect, exploration and exploitation of oil and gas shall be subject to full payment of exempted amount of import duty in accordance with regulations.

b) With respect to other cases:

b.1) Finalization period: No later than 45 days after the end of import of goods on the list of tax exempt goods registered with the customs authorities.

Where the project has operated for production and business but has not imported all the goods on the List of tax-exempt goods registered with the customs authorities, then no later than 45 days from the date of project commissioning for production and business, the taxpayer shall settle with the customs authority registering the List of import and make use of the tax-exempt imported goods in accordance with provisions of this Article.

b.2) Contents of finalization:

b.2.1) Quantity of goods in accordance with the registered tax-exempt list; 

b.2.2) Actual quantity of goods imported, and used to form the enterprise’s fixed assets;

b.2.3) Quantity of goods imported but changed its purpose of use and the situation of tax payment for such goods;

b.2.4) The accounting of fixed assets shall comply with the provisions in Circular 45/2013/TT-BTC (for goods imported to generate fixed assets).

3. Responsibilities of taxpayers:

a) Submitting the finalization on import and use of duty free goods duly in accordance with the instruction in clause 1 and clause 2 of this Article and take responsibility before the law for the contents of the finalization submitted to the customs authorities.

b) Fully paying the tax amounts and late payment amounts (if any) in cases of:

b.1) Goods are exempted from tax according to declaration but use for wrong purposes;

b.2) Goods not under tax exempt subjects but declared as under tax exempt subjects and were through customs clearance according to the declaration of taxpayer;

b.3) The whole imported materials and supplies exceed the remaining production demand based on the imported goods which are tax free within a period of 05 years as stipulated in Clause 15 of Article 100 of this Circular.

c) Failure to timely and fully submit the finalization dossier shall be applied with administrative penalties according to the law. If the taxpayer still has not fully submitted the finalization dossier after 30 days from the deadline for finalization submission, the customs authorities will [record and] update the information on law compliance of the taxpayer into the risk management system, and conduct post-customs clearance check at the enterprise’s head offices in suspected cases.

4. Responsibilities of Customs authoritywhere the List of tax-exempt imports is registered: Send written notices to taxpayers about finalization of import and use of tax-exempt goods and implement:

a) Fully collecting tax amounts, apply penalties (if any) to cases mentioned in point b, c clause 3 of this Article;

b) Conducting post customs clearance check at enterprise’s head offices in necessary cases;

c) Assessing tax amounts, fully collect tax amounts, late payment amounts (if any) for cases of detection after inspection that the enterprises did not make self-declaration in accordance with regulations for cases such as: change the purpose of use of tax-exempt goods, declare goods not under tax exempt subjects as tax exempt subjects and were through customs clearance.

5. With respect to the Projects having registered the List of tax-exempt imports from 01/01/2006 until before the effective date of this Circular without conducting the finalization with the customs authorities, then within a time limit of 45 days from the effective date of this Circular, the project owners must submit the finalizations on import and use of duty free goods in accordance with the provisions of this Article.

Section 4. CASES UNDER TAX EXEMPT CONSIDERATION, TAX EXEMPT PROCEDURES

Article 104. Cases under tax exempt consideration

Imported and exported goods shall be considered as exempted from import-export duty in the cases below:

1. Imported goods are goods for special-purposes used for direct service to the security, national defense in accordance with specific plans approved by the Ministry in charge and registered and unanimously agreed with the Ministry of Finance in early period of the year (no later than the end of 31 March each year; the Ministry in charge shall register the plan for imported goods and classify into two separate lists: List [of goods] under central state budget and a list [of goods] under local budget funds).

In particular, the goods for special-purposes used in direct service to the security, national defense under the local budget shall only be applied with tax exemption if they are types of goods that can not be produced domestically. The ground to identify that goods can not be produced domestically as a basis for tax exemption is the List of domestically produced goods in accordance with the regulations of the Ministry of Planning and Investment.

2. Imported Goods as goods for special-purposes used in direct service to scientific researches (unless the cases specified in clause 13 Article 12 of Decree No. 87/2010/ND-CP) in accordance with the specific list approved by the Ministry in charge of specialties/ Specialized management Ministry. 

3. Imported Goods as goods for special-use purposes in direct service to education and training in accordance with the specific list approved by the Ministry in charge of specialties.

4. Goods permitted to be exported, imported as gifts, donation or samples, including the specific cases and rates of tax exempt consideration as follows:

a) With respect to exported goods:

a.1) Goods permitted to be exported from organizations or individuals in Vietnam to give or donate to overseas organizations or individuals:

a.2) Goods permitted to be exported overseas which Vietnam organizations or individuals give or donate to overseas organizations or individuals when they come to work, travel or visit their relatives in Vietnam;

a.3) Goods from organizations and individuals in Vietnam permitted to be exported to foreign countries to be used in trade fairs, exhibitions, advertising; and then used as gifts or donation to overseas organizations and individuals;

a.4) Organizations or individuals appointed by the State to work or study abroad or Vietnamese traveling abroad, in addition to the standard baggage for individual exit, if carrying goods for gifts or donation to overseas organizations or individuals, are also entitled to the standard rates of consideration of export tax exempt for goods, gifts or donation;

a.5) Sample goods of organizations or individuals in Vietnam sent to overseas organizations or individuals.

Goods as gifts, donation or samples with a value not more than 30 (thirty) million dongs for organizations considered as exempted from export tax.

The case of goods as gifts, donation or samples with a value not exceeding 01 (one) million dongs for individuals or the value of goods exceeds 01 (one) million dongs but the total tax payable amount is under 50 (fifty) thousand dongs shall be free from export tax (free from doing procedures for consideration of exemption of export tax).

b) With respect to imported goods:

b.1) Goods given or donated by overseas organizations or individuals to Vietnamese organizations with value not exceeding thirty (30) million dongs shall be considered for tax exempt.

Vietnamese organizations who are state agencies, political organizations, socio-political organizations, social organizations, socio-professional organizations, people's armed units.

b.2) Goods given or donated by overseas organizations or individuals to Vietnamese organizations with a value not exceeding 01 (one) million dongs or the value of goods exceeds 01 (one) million dongs but the total tax payable amount is under 50 (fifty) thousand dongs shall be free from export tax (free from doing procedures for consideration of exemption of export tax).

Where goods are written as personal gifts but in fact are donated to an organization (with written confirmation of such organization) and are managed and used by such organization, then the rate of tax exempt consideration is applied as for Goods as gifts or donation from overseas organizations or individuals donated to Vietnamese organizations.

b.3) For the goods of overseas organizations and individuals temporarily imported into Vietnam to be used in fairs, exhibitions or be imported into Vietnam as samples or advertisement, but then not be re-exported and instead used as gifts, donation or souvenirs to Vietnamese organizations and individuals: considered for tax exemption for the goods used as gifts or souvenirs to visitors of trade fairs and exhibitions with a value less than 50 (fifty ) thousand dongs/ item and the total value of import shipment used for gifts or donation does not exceed ten (10) millions.

b.4)  Goods of overseas organizations and individuals permitted to be imported into Vietnam for the purpose of making awards in competitions in sport, culture, arts ...: considered for tax exemption for the goods with a value not exceeding 02 (two) million dongs/ award (for individuals) and 30 (thirty) million dongs/ prize (for organizations) and the total value of import shipment used as prizes does not exceed the total value of the prizes in kind.

b.5) For individuals entering Vietnam, in addition to the standard personal baggage he/she shall be exempted from tax for the goods carried along to offer as gifts, donation or souvenirs which value not exceeding 01 (one) million dongs or the value of goods exceeds 01 (one) million dongs but the total tax payable amount is under 50 (fifty) thousand dongs (free from doing procedures for consideration of export tax exemption).

b.6) Goods of other cases referred to in clauses 1, 3, 4 and 17 of Article 100 of this Circular which must be re-exported, but instead used by overseas organizations and individuals to offer as gifts or donation (the goods imported under conditions must be permitted by competent state authority) to Vietnamese organizations and individuals, with a value not exceeding thirty (30) million dongs in case of organization, not exceeding 01 (one) million dongs in case of individual, shall be considered for tax exempt. Where the value of goods donated to individuals does not exceed 01 (one) million dongs or the value of goods exceeds 01 (one) million dongs but the total tax payable amount is under 50 (fifty) thousand dongs, then such goods are free from doing procedures for consideration of export tax exemption.

b.7) Samples of overseas organizations and individuals sent to Vietnamese organizations and individuals are applied with tax exempt consideration rates which is not more than thirty (30) million dongs for organizations, and tax exempt rate not exceeding 01 (one) million dongs for individuals or the value of goods exceeds 01 (one) million dongs but the total tax payable amount is under 50 (fifty) thousand dongs.

c) Goods as gifts or donation with a value exceeding tax exempt consideration rates or tax exempt rates as mentioned above shall subject to tax payment for the excess. Only the following cases shall be considered for tax exemption for the entire shipment value:

c.1) The units receiving gifts or donation being administrative or non-productive bodies or social organizations or agencies operating by allocated budgets who are permitted by their governing bodies to accept the gifts or donation shall be considered for tax exempt in each specific case. In this case the unit must write up the allocated budget property including taxes, value of gift or donation shipment and must manage and use it duly in accordance with current regulations on management of agency assets allocated from budget;

c.2) Goods as gifts or donation for the purpose of humanity, charity or scientific research;

c.3) Overseas Vietnamese sending medicine to their relatives in Vietnam who are families having merits with the revolution, or are war invalids, martyrs, elderly and helpless people who are certified by local governments.

5. Tax exempt goods in accordance with international agreements of which Vietnam is a member.

Article 105. Dossier for tax exempt consideration

The dossier for tax exempt consideration include

1. Customs dossier as instructed in this Circular: submitting 01 copy;

2. Other papers, depends on each specific case below:

a) A written request for tax exemption of organizations and individuals who use the exported or imported goods (except the case in point b of this clause), specifying the type of goods, value, tax amount, reasons for tax exempt consideration, customs declaration; in case of various types of goods from many different customs declarations, then a list of goods and customs declarations for tax exempt consideration must be made; a commitment on accurate declaration, on provision of proper files and on use of tax exempt for right purpose: 01 original must be provided;

b) A written request for tax exemption by the Ministry of Defense, Ministry of Public Security or the units authorized or decentralized by the Ministry of Defense, Ministry of Public Security (in which specifying: Goods imported for security or national defense under the central or local budget; quantity, type and value of imported goods of each item on the List approved by the Ministry of Defense, Ministry of Public Security, and agreed with the Ministry of Finance from early period of the year no later than 31 March each year, the Department of Defense, the Ministry of Public Security shall register the import plan with the Ministry of Finance; The tax amount, the customs declaration; In case of various types of goods from many different customs declarations, then a list of goods and customs declarations for tax exempt consideration must be made; a Commitment on accurate declaration, on provision of proper files and on use of tax exempt for right purpose) including the reconciliation monitoring sheet for imported goods with special purposes for direct service to the security or national defense: 01 original of the official letter; 01 original of the reconciliation monitoring sheet shall be submitted;

c) Import entrustment contract (in case of import entrustment) or tender winning notice together with a goods supply contract (in case of import through bidding), which specifying the payment price excluding the import duty: submit 01 copy;

d) Decision that approves the scientific research subject and the List of goods need to be imported to implement the subject issued by the Specialized management Ministry with respect to the goods imported for direct service to scientific research: submit 01 original of decision on approval, 01 copy of the List of goods need to be imported to implement the subject together with the original for comparison (in case of multiple imports, a reconciliation monitoring sheet must be included);

e) Decision that approves the projects on equipment investment and the List of equipment need to be imported issued by the Ministry of specialized management with respect to imported goods for special purposes used for direct service to the education or training: submit 01 original (in case of multiple imports, a reconciliation monitoring sheet must be included);

g) International agreements of which Vietnam is a member: submitting 01 copy; documents of relevant State agencies on certification of duty free scope and goods under international agreements: 01 original in case of requesting for tax exemption under International treaty;

h) With respect to Goods as gifts, donation or samples:

h.1) Notice or decision or agreement on the offer or donation of goods; notice or agreement on delivery of samples: submit 01 copy;

h.2) Certificates of the People's Committees of communes or wards for cases of relatives being families having merits with the revolution, or war invalids, martyrs, elderly and helpless people who receive the gifts as medicine from overseas Vietnameses: submitting 01 original;

h.3) Power of attorney to do customs procedures of the organization or individual who receives the gifts, donation or samples in case of Goods as gifts, donation or samples for which customs procedures is made by the attorney: submitting 01copy;

h.4) Documents of competent State agencies approving the non re-export of goods temporarily imported for re-export to make gifts, donation to Vietnamese organizations and individuals (for the cases that need approvals); invoices or delivery forms of the goods offered or donated; sheet of handover of goods between the offering or donating entity and the recipient of gifts or donation in case of Goods as gifts or donation from tax-exempt import entities in the form of temporary import – re-export: submitting 01 copy;

h.5) Confirmation of the governing agency on approval for acceptance and use of duty free goods in case of gifts or donation given to administrative agencies, mass organizations operating by State allocated funds that have values exceeding the rates for tax exemption consideration.

i) Other documents relate to the determination of tax amounts considered for exemption: submitting 01 copy;

k) List of documents and dossier requesting for tax exempt consideration.

Article 106. Procedures and order for tax exempt consideration

1. Submission and receipt of tax exempt consideration dossier

a) Taxpayers shall determine themselves the tax exemption amounts for cases eligible for tax exemption; submit the files to customs authorities having authority to tax exemption under the provisions in Article 107 of this Circular. Where the tax exempt authority is of the Ministry of Finance, taxpayers shall determine the amount of tax exemption and filing the tax exemption request to the General Department of Customs;

For imported goods that are entitled to tax exemption, the time limit for filing tax exemption request shall be no later than 15 working days from the date of customs clearance or release of goods.

b) In case the tax exemption request is directly filed at the customs authority, the customs authorityrs shall receive and stamp the acknowledgment receipt of the file, record the time of file receipt and note the number of documents in the file.

c) In case the tax exemption request is filed through the post, the customs authorityr shall affix the stamp and record the date of file receipt in the archives of the customs authorities.

d) Where the tax exemption request is filed through electronic transactions, then the receipt, check, acceptance of tax exemption file shall be conducted by customs authorities through the electronic data processing system.

2. Customs authority shall check the tax exempt files declared by taxpayers and handle as follows:

a) Notify taxpayer if the file is incomplete within 03 working days from the date of receipt of file for completion of the file;

b) Issue decisions on tax exemption in accordance with regulations or notify the taxpayer about the reasons of not eligible to tax exemption, the tax payable amount within 15 working days from the date of receipt of complete dossier and apply penalties in accordance with current regulations (if any); in case of need of on-site inspection to have grounds to settle the dossier, such time limit may be extended up to 50 days, from the date of receipt of complete dossier.

3. Based on the tax exempt decision, the customs authority where the customs declaration is registered shall discharge the exempted amount, affix seal on the original customs declaration stored in the unit and the original customs declaration kept by taxpayer: "The goods are exempt from tax under Decision no. ... dated ...........…... of .." (Sample of seal as sample no. 14/MDHT/2013 of Appendix II attached herewith).

4. For taxpayers being enterprises eligible to priority consideration for tax exemption under international treaties, the customs authorities shall apply temporary tax exempt in accordance with declarations of such enterprises, not accounted for in KT559 system and open a book for tracking of temporary tax exemption.

Every 06 month, the enterprise shall make finalization with the customs authority on the duty free imported goods. The enterprise shall prepare a statistics on the number of import declarations (without submission of customs declarations), the tax exempt amount ... within 06 months and proofs of subject to tax exemption in accordance with International treaties as provided in Article 105 of this Circular to the customs authority where the goods are imported.

Based on the finalization results, the customs authority shall issue the official tax exempt decision to taxpayer in accordance with regulations.

Article 107. Authority in tax exempt consideration

1. The Ministry of Finance shall consider tax exempt for the cases of:

a) Goods as gifts or donation to administrative or non-productive agencies, social agencies with value exceeding the rates of tax exempt;

b) Goods as gifts or donation for the purpose of humanity, charity or scientific researches.

2. The General Department of Customs shall consider tax exempt for the goods imported to serve the purpose of security, national defense, scientific research or education and training.

3. The Department of Customs shall handle the tax exempt for goods with value not exceeding 01 (one) million dongs for individuals or goods with value exceeds 01 (one) million, but the total tax payable amount is under 50 (fifty) thousand dongs as specified in points b.2, b.5, b.6 clause 4 of Article 104 of this Circular.

4. The Departments of Customs of provinces and cities shall directly conduct tax exempt consideration for the remaining cases.

Section 5. CONSIDERATION OF TAX REDUCTION - PROCEDURE FOR CONSIDERING TAX REDUCTION

Article 108. Cases in which tax reduction is considered

If exported and imported goods under the supervision of the customs authority are damaged or lost, a tax reduction in proportion to the loss assessed by a competent authority shall be considered.

Article 109. Application for tax reduction

1. The customs dossier specified in this Circular: 01 photocopy.

2. A written request for tax reduction made by the taxpayer, specifying the categories of goods, quantity, value, tax, reasons for tax reduction, and customs declarations (if various goods are stated on different customs declarations, the goods and customs declarations must be enumerates); the commitment to make accurate statements and provide adequate documents: 01 original.

3. The certificate of assessment issued by an assessment service provider of the quantity of goods that are lost or the actual loss ratio of exported or imported goods: 01 original.

4. The insurance contract: 01 photocopy.

5. A contract/agreement on compensation of the insurer or courier (if loss is caused by the courier): 01 photocopy.

If exported or imported goods are eligible for tax reduction in Clause 1 Article 108 of this Circular but no insurance is purchased, the documents in Clause 4 and Clause 5 of this Article are excluded.

6. A list of documents in the application.

Article 110. Procedure for considering tax reduction

The procedure for considering tax reduction is similar to the procedure for considering tax exemption.

Article 111. The power to consider tax reduction

The Director of the Sub-department of Customs where the declaration is registered has the power to consider tax reduction.

Section 6. CASES OF TAX REFUND, PROCEDURE FOR TAX REFUND

Article 112. Cases in which tax is refunded

Tax refund shall be considered in the following cases:

1. The goods on which import tax has been paid but are still kept at the checkpoint and under the supervision of the customs authority, then re-exported;

2. The goods on which export or import tax has been paid are not exported or imported in reality;

3. A smaller amount of goods, on which export or import tax has been paid, is exported or imported in reality;

4. Goods are imported for delivering or selling to foreign buyers via agents in Vietnam; goods imported for selling to vehicles of foreign couriers on international routes through Vietnam’s ports, and to Vietnam’s vehicles on international routes as prescribed by the Government;

5. Imported goods, on which import tax has been paid, that are used for export production or exported to free trade zones shall receive a refund in proportion to the amount of goods exported in reality. Export tax on exported goods that are proved to be completely made of imported raw materials is exempt. In particular:

a) Exported goods are completely made of imported raw materials are exempt from export tax. If exported goods are made of both imported and domestic materials, a tax in proportion to the amount of domestic materials that are used for export production shall be collected at the rate of export tax on such article.

b) The raw materials eligible for import tax refund:

b.1) Imported raw materials (including components, semi-finished products, packages) that directly constitute the exported products;

b.2) Raw materials participating in the manufacture of exported goods but do not constitute the goods such as paper, chalk, markers, pins, ink, paint, brush, frame, polish, etc;

b.3) Finished products imported to be combine with exported products (packed with exported products made of imported raw materials or domestic raw materials ) for export to abroad;

b.4) Imported components and parts used for warranty of exported products;

b.5) Sample products that are used for export production and returned to the foreign customers after the contract is performed.

c) Cases in which tax refund is considered:

c.1) The company imports raw materials to produce exported goods or hires processing domestically (including processing in free trade zones), overseas, or cooperates in export production and take products to export;

c.2) The company import raw materials to produce goods that are sold to the domestic market, then finds an export market and use such raw materials for export production, and actually export products (the maximum permissible period from the date registration of the declaration of imported raw materials is registered to the date of registration of the declaration of exported products made of the raw materials in the import declaration is 02 years);

c.3) When the company imports raw materials (except for finished products) to perform a processing contract (the raw materials are imported by the company itself, not provided by the foreign party), the refund of import tax shall be considered when products are actually exported similarly to imported raw materials for export production;

c.4) The company imports raw materials for producing exported products, then uses such products to process exported goods under a processing contract sign with a foreign party;

c.5) The company imports raw materials for production, then sells the products (finished or unfinished) to another company for further processing. After the latter exports its products, the former shall receive a refund of import on the amount of raw materials the latter used for producing the exported products if the following conditions are all satisfied:

c.5.1) The seller and the buyer pay VAT using deduction method; the company has registered and been issued with a tax code, has invoices for trade of goods;

c.5.2) Payment for exported goods is made by bank transfer as prescribed by the State bank of Vietnam;

c.5.3) Products are exported within 01 year (365 days) from the import of raw materials (from the registration date of the customs declaration of imported goods to the registration date of the declaration of exported goods).

After 365 days, the customs authority where the procedure for tax refund/tax cancellation shall notify the General Department of Customs, the General Department of Customs shall request the Ministry of Finance to handle on a case-by-case basis.

c.6) When company imports raw materials for production, then sells the products (finished or unfinished) to another company for export as knock-down kits, a refund of import tax in proportion to the quantity of exported products (knock-down kits) shall be considered if the conditions in Point c.5 of this Clause and the following conditions are all satisfied:

c.6.1) The product made of imported raw materials is one of the parts, components of an exported knock-down kit.

c.6.2) The company buys such product to combine it with the parts, components they produce to constitute an exported knock-down kit.

c.7) The company imports raw materials for production, then sells the products (finished or unfinished) to another exporter. After the exporter exports the products, the importer of raw materials shall receive a refund of import tax in proportion to the amount of exported products if the conditions in Point c.5 of this Clause are all satisfied.

c.8) The company that imports raw materials for production, then sells the products to a foreign trader but delivers them to another company in Vietnam at the request of the foreign trader shall receive a refund of import tax on raw materials for export production. In particular:

c.8.1) Conditions for refund of tax on imported raw materials:

c.8.1.1) The goods imported domestically must be used for production or processing under a processing contract with a foreign party (the customs authority shall monitor tax administration of the domestic importer);

c.8.1.2) The declaration of domestic export-import must satisfy the conditions below:

The customs declaration is sufficient certified, bears the signatures and seals of 04 parties: the exporter, the importer, the customs that carries out the export procedure, the customs that carries out the export procedure.

When registering the domestic import, the declaration shall be registered as export production or export processing if the domestic importer uses the goods for export processing.

c.8.2) If the customs authority has collected import tax when the company imports raw materials to Vietnam, then collects import tax on the domestically imported products from the domestic importer, the importer of raw materials for export production shall receive a refund of the import tax on raw materials after the domestic importer pays the import tax on the domestically imported products (except for the conditions in Point c.8.1.1 of this Clause).

c.9) Raw materials are imported for producing the exported products mentioned in Points c.1 - c.7 of this Clause; the products have been exported in reality but have not been sold and are kept at the company’s warehouse overseas, or sent to an overseas bonded warehouse or transshipment port.

c.10) Raw materials are imported for producing the exported products mentioned in Point c.1 - c.7 of this Clause; the products are exported to a free trade zone in reality in stead of to abroad (except for export processing companies, export-processing zones, bonded warehouses). A refund of import tax in proportion to the amount of goods used in the free trade zone or exported to abroad in reality shall be given if the customs authority certifies that goods are exported to abroad or used in the free trade zone in reality.

d) The quantity of imported raw materials for considering import tax refund or exemption are the actual consumption of raw materials for manufacture of the goods that are exported in reality, including the amount of waste and scrap collected during the production.

d.1) The procedures for notifying the quantity of imported raw materials for export production and registering export production are guided in Article 37 of this Circular.

d.2) If a type of raw materials is imported for producing two or more types of products (such as uncracked nuts are imported for producing kernels class I and kernels class II) but only one type is exported, the company shall make tax statement (if any) on the proportional amount of raw materials that are not exported.

The refund of import tax is calculated as follows:

Refund of import tax (on goods exported in reality)

=

Value of exported products

X

Total import tax on raw materials

Total value of products collected

Where:

- The value of exported products equals the quantity of products that are exported multiplied by (x) the dutiable values of exported goods;

- Total value of products collected is the sum of value of exported products, the revenues from the domestic sale of products (including collected waste and scrap beyond the limit exclusive of output VAT).

If the company imports a type of raw materials to produce two products or more (such as import wheat to produce wheat flour, wheat bran, and wheat husk); some of them are used for further export production, some of them are sold to the domestic market (e.g. wheat bran and wheat husk are sold to the domestic market; wheat flour is used to produce instant noodles for export, then:

+ The amount of raw materials purchased at home must be excluded when calculating the value of exported products and total value of products collected (example: apart from wheat flour, exported instant noodles are made of ancillary materials that are purchased at home such as flavorings, spices, packages, etc.)

+ To exclude the amount of ancillary materials that constitute the exported products, the company shall quantify the amount of ancillary materials and notify it to the customs authority where the import procedure is carried out, and take responsibility for the accuracy of such quantity. If the quantity is questionable, the authority that considers tax refund may request for assessment from a specialized agency, or cooperate with a local tax authority (that issued the tax code to the company) to carry out an inspection at the company to verify the quantity, which is the basis for considering the tax refund.

d.3) The waste and scrap sold to the domestic market shall be handled as follows:

d.3.1) The collected waste and scrap within the limit during the production of goods from imported raw materials (e.g. nut husk during production of kernels) are exempt from import tax. If the taxpayer sells such waste and scrap, they are still exempt from import tax. Other tax such as VAT and corporate income tax must be stated and paid as prescribed;

d.3.2) Import tax on the proportion of waste and scrap beyond the limit shall be paid. Tax shall be stated and paid in accordance with Clause 8 Article 11 of this Circular.

e) If raw materials are imported for export production and the products are exported by the deadline for paying tax, the import tax on the amount of raw materials in proportion to the amount of goods exported in reality is exempt.

6. For goods temporarily imported for re-export or goods temporarily exported for re-import and goods imported on behalf of the foreign party and then re-exported, import and export tax on which has been paid, including imported goods that are re-exported to free trade zones (for internal use within the free trade zone or for export to another country; except for goods that are re-exported to special economic zones, industrial-commercial zones, and other economic zones decided by the Ministry of Finance), a refund of import or export ax shall be considered; import tax upon re-import and export tax upon re-export are exempt (except for the cases of tax exemption specified in Clause 1 Article 100 of this Circular).

The temporarily imported goods that are re-exported, temporarily exported goods that are re-imported by the deadline for paying tax are exempt from import tax or export tax on the amount of goods re-exported or re-imported in reality.

7. The refund of export tax on exported goods that must be re-imported to Vietnam shall be considered. Import tax is exempt.

a) Condition for refund of export tax and exemption of import tax:

a.1) Goods are re-imported to Vietnam within 365 days from the date of registration of the export declaration;

After 365 days, the customs authority where the procedure for tax refund/tax cancellation shall notify the General Department of Customs, the General Department of Customs shall request the Ministry of Finance to handle on a case-by-case basis.

a.2) Goods have not been processed, repaired, or used overseas;

b) If exported goods processed by the Vietnamese company under a contract with a foreign partner, the import tax on raw materials of which has been exempt, must be re-imported to Vietnam for repair or recycling, then re-exported to the foreign partner, the customs authority that monitor the initial processing contract shall keep monitoring until all recycled goods are re-exported.

For recycled goods that are not exported:

b.1) If goods are sold to the domestic market, tax shall be stated and paid similarly to processed goods for domestic export and import;

b.2) Tax on goods that must be destructed, allowed to be destructed in Vietnam, and are already destructed under the supervision of a customs authority is exempt similarly to destructed waste and scrap.

c) If exported goods are made of imported raw materials, the goods temporarily imported for re-export (eligible for tax refund upon export) that must be re-imported to Vietnam without recycling and re-export:

c.1) The company shall not receive a refund (or cancellation - if tax has not been paid) of the tax on the amount of raw materials imported for producing the goods that must be re-imported or the goods that are re-exported but then re-imported.

c.2) If the customs authority has refunded or decided to cancel the tax on the amount of raw materials imported for producing the goods that must be re-imported or the goods that are re-exported but then re-imported, the taxpayer must repay the tax that was refunded or exempt.

d) If the exported goods are re-imported to Vietnam by the deadline for paying export tax, the corresponding export tax on the amount of goods re-imported in reality is exempt.

8. For imported goods that must be returned to the foreign goods owners or re-exported to a third country or re-exported to a free trade zone (for internal use within the free trade zones) or re-exported to abroad; except for goods exported to special economic zones, economic - industrial zones and other economic zones decided by the Ministry of Finance), the refund of import tax on the amount of goods exported in reality shall be considered. Export tax is exempt.

a) Condition for refund of import tax and exemption of export tax:

a.1) Goods are re-exported to abroad or to a free trade zone within 365 days from the date of the import;

After 365 days, the customs authority where the procedure for tax refund/tax cancellation shall notify the General Department of Customs, the General Department of Customs shall request the Ministry of Finance to handle on a case-by-case basis.

a.2) Goods have not been processed, repaired, or used in Vietnam.

a.3) If imported goods are not consistent with the contract, it is required to have a notification of goods assessment result made by an organization competent to assess imported goods. The company shall state and pay import tax on the goods sent by the foreign party to replace the goods returned;

a.4) The goods that are exported to a free trade zone (except for goods exported to export-processing zones, export processing companies, bonded warehouses, special economic zones, economic - industrial zones and other economic zones decided by the Ministry of Finance) shall be inspected by the customs authority to determined whether they are used within the free trade zone or exported to abroad in reality.

b) If imported goods are re-exported by the deadline for paying import tax, the corresponding import tax on the amount of goods re-exported is exempt.

9. When machinery, equipment, instruments, or vehicles are temporarily imported for re-export (except for hired ones) to serve projects, construction, installation, production, then re-exported from Vietnam or to a free trade zone (for internal use within the free trade zone or export to another country), the import tax that was paid shall be refunded.

The amount of import tax being refunded is determined based on the remaining value of them when they are re-exported after the period during which they are used and stored in Vietnam (from the registration date of the declaration of temporary import to the registration date of the declaration of re-export. if no value remains, tax shall not be refunded. In particular:

a) If imported goods are new (unused):

Period of use and storage in Vietnam

Refundable import tax

6 months or shorter

90% of import tax paid

Over 06 months to 1 year

80% of import tax paid

Over 1 year to 2 years

70% of import tax paid

Over 2 year to 3 years

60% of import tax paid

Over 3 year to 5 years

50% of import tax paid

Over 5 year to 7 years

40% of import tax paid

Over 7 year to 9 years

30% of import tax paid

Over 9 year to 10 years

15% of import tax paid

Over 10 years

No refund

a) If imported goods are old (used):

Period of use and storage in Vietnam

Refundable import tax

6 months or shorter

60% of import tax paid

Over 06 months to 1 year

50% of import tax paid

Over 1 year to 2 years

40% of import tax paid

Over 2 year to 3 years

35% of import tax paid

Over 3 year to 5 years

30% of import tax paid

Over 5 years

No refund

If the importer fails to re-export the temporarily imported machinery, equipment, instruments, and vehicles by the deadline, and is permitted by the Ministry of Industry and Trade (or a competent authority) to transfer them to another entity in Vietnam, the transfer is not considered export and import tax shall not be refund. The transferee or the buyer shall not pay import tax. When they are re-exported from Vietnam, the initial importer shall receive an import tax refund as guided in this Clause.

10. If goods sent by an overseas organization or individual to an organization or individual in Vietnam by post or express mail and vice versa, the tax on which has been paid by the service provider, cannot be delivered to the recipient and must be re-exported, re-imported, confiscated or destructed as prescribed by law, the tax paid shall be refunded according to the Joint circular No. 01/2004/TTLT-BBCVT-BTC dated May 25, 2004 of the Ministry of Post and Telecommunications and the Ministry of Finance on responsibility for and cooperation in customs supervision and inspection of imported and exported mails and parcels sent by post and express mail.

11. Where regulations on customs are violated and goods under the supervision of the customs that are evidence of the violations are confiscated by a competent authority, the violator shall receive a refund of the export or import tax that was paid.

12. If the exported or imported goods on which tax has been paid are granted tax exemption or tax refund by a competent authority, a refund shall be given.

13. For the exported or imported goods under the supervision of the customs authority, if the customs declaration has been registered but violations are found during inspection and goods must be destructed, the customs authority shall issue a decision on exemption import tax or export tax (if any). The penalties for improper export and import of goods that lead to their destruction shall be imposed in accordance with current law. The customs where the customs declaration of exported or imported goods is registered shall keep documents about the destructed goods and cooperate with relevant authorities in supervising the destruction in accordance with current law.

14. The cases in which a refund of import or export tax is smaller than 50,000 VND for an application for tax refund, the customs authority shall not give the refund.

Article 113. Application for refund of imported tax on goods that are still kept at the checkpoint under the supervision of the customs, then re-exported to abroad.

1. A written request for refund of paid tax, specifying the goods, tax, tax receipts (number, date); reasons for tax refund, the customs declaration (if various categories of goods are stated in multiple declarations, the declarations used for application must be enumerated): 01 original copy;

2. The customs declaration of the imported goods that has tax calculation: 01 original copy;

3. The customs declaration of exported goods that have undergone customs procedure, certifying that exported goods in the import declaration being kept at the checkpoint under the supervision of the customs authority are exported: 01 original copy. Other papers proving the actual export of goods mentioned in Article 30 of this Circular: 01 photocopy;

4. A list of documents in the application for tax refund.

Article 114. The application for refund of tax on goods meant to be exported or imported, on which export or import tax has been paid, but are not exported or imported in reality

1. The papers mentioned in Clause 1 and Clause 4 Article 113 of this Circular;

2. The customs declaration of exported goods that is certified by the customs that goods are not exported in reality: 01 original copy.

3. The customs declaration of imported goods that is certified by the customs that goods are not imported in reality: 01 original copy.

Article 115. The application for refund of tax on goods meant to be exported or imported, on which export or import tax has been paid, but a smaller amount is exported or imported in reality

1. The papers mentioned in Clause 1 and Clause 4 Article 113 of this Circular;

2. The declaration of exported goods that have undergone customs procedure, on which the amount of goods exported in reality is certified by the customs: 01 original copy. Other papers proving the actual export mentioned in Article 30 of this Circular: 01 photocopy;

3. The declaration of imported goods that have undergone customs procedure, on which the amount of goods imported in reality is certified by the customs: 01 original copy.

4. Commercial invoice under the sale contract: 01 photocopy;

5. Other papers proving that a smaller amount of goods is exported or imported in reality.

Article 116. Application for refund of tax on goods that are imported for delivering or selling to foreign buyers via agents in Vietnam; goods imported for selling to vehicles of foreign couriers on international routes through Vietnam’s ports, and to Vietnam’s vehicles on international routes as prescribed by the Government

1. For general cases:

a) The papers mentioned in Clause 1 and Clause 4 Article 113 of this Circular;

b) A written permission of the Ministry of Industry and Trade for the import (if the license for the import of goods issued by the Ministry of Industry and Trade is compulsory): present the original copy;

c) The declaration of the imported goods that have undergone customs procedure: 01 original copy;

d) Sale invoice: 01 photocopy;

e) The declaration of exported goods that have undergone customs procedure (if goods are exported at another place than the place of import): 01 original copy. Other papers proving the actual export mentioned in Article 30 of this Circular: 01 photocopy;

g) The agent contract and contract or agreement on goods supply: 01 photocopy;

h) Receipts for payment for exported goods: submit 01 photocopy and present the original copy for comparison. If the shipment is paid in installments, 01 list of payment receipts shall be submitted.

2. For imported goods being beverage on international flights:

a) The papers mentioned in Point a, Point b and Point c Clause 1 of this Article;

b) The note of delivery of beverage to international flights, which is certified by the customs at the airport: 01 photocopy.

3. For goods imported via a wholesaler (e.g. oil, gas, etc.), are allowed to be sold to a ship supplier, and then sold to foreign ships that have paid import tax, import tax shall be refunded after goods are sold to foreign ships:

a) The papers mentioned in Clause 1 of this Article;

b) Sale contract and sale invoices issued to the ship supplier: 01 photocopy;

c) Certification made by the ship supplier of the quantity and value of goods purchased from the wholesaler that supply for the foreign ship in reality, enclosed with a list of receipts for payments made by the foreign ship: submit 01 original copy. The supplier is responsible for their certification.

Article 117. Application for refund of tax on goods imported for manufacture of goods that are exported to abroad or to free trade zones, are used in free trade zones or exported to abroad in reality, on which export tax has been paid.

1. If the company import raw materials for export production or has them processed domestically (even in free trade zones) or overseas; or cooperates in export production or buying goods for export.

a) General documents:

a.1) A written request for refund or cancellation of tax on raw materials imported for export production, specifying the amount and value of imported raw materials used for export production in reality; the amount of import tax that was paid, number and date of tax receipt, quantity of exported goods; requested amount of import tax being refund or exempt (if various categories of goods are stated in different customs declarations, the customs declarations used for application must be enumerated): 01 original copy;

a.2) The declaration of imported raw materials that have undergone customs procedure: 01 original copy (not applicable to electronic customs declarations);

a.3) The declaration of exported goods that have undergone customs procedure: 01 original copy; the export contract: submit 01 photocopy and present the original for comparison (if goods are exported at another place than the place where raw materials are imported); other papers proving the actual export mentioned in Article 30 of this Circular: 01 photocopy;

a.4) The contract for import, the contract for entrustment of export or import if the export or import is entrusted (using the copy kept by the customs authority is stead of the copy kept by the taxpayer): 01 photocopy;

a.5) Receipts for payment for raw materials imported for export production (if the 275-day time limit is applicable); receipts for payment of exported goods: submit 01 photocopy and present the original for comparison. If the shipment is paid in installments, 01 list of bank transfer confirmations shall be submitted;

a.6) A contract for cooperation in export production (if any): 01 photocopy;

a.7) A notification of quantity: 01 original copy;

a.8) A list of declarations of exported products (the form No. 56/HSHT-KTT/SXXK in Appendix III to this Circular): 01 original copy;

a.9) A report on the consumption of imported raw materials (the form No. 57/HSHT-KTT/SXXK in Appendix III to this Circular): 01 original copy;

a.10) A report on calculation of tax on imported raw materials (the form No. 58/HSHT-KTT/SXXK in Appendix III to this Circular): 01 original copy;

a.11) A list of documents in the application for tax refund.

b) Apart from the papers in Point a of this Clause, the following papers are required if goods are imported for export production but then exported to a free trade zone or to abroad for processing, then products are imported for further processing and/or export:

b.1) The declaration of raw materials exported for processing, which have undergone customs procedure: 01 original copy; other papers proving the actual export mentioned in Article 30 of this Circular: 01 photocopy;

b.2) The declaration of goods imported from the free trade zone or from abroad, which have undergone customs procedure: 01 original copy;

b.3) A processing contract with a company in the free trade zone or a foreign party: 01 photocopy.

2. If the company imports raw materials for manufacture of goods for sale in Vietnam, then finds an export market and uses such raw materials for export production, then exports such products to abroad within 02 years from the registration date of the declaration of imported raw materials:

The application for tax refund/tax cancellation is similar to guidance in Clause 1 of this Article:

3. For raw materials (except for finished products) imported by the company to a processing contract, not supplied by the foreign party, the application consists of:

a) A written request for refund or cancellation of tax on the raw materials imported for processing exported goods, specifying the products, quantity, value of imported raw materials, import tax that was paid, tax receipts (numbers and dates), the quantity of products exported in reality, the amount of refund or exemption requested (if various categories of goods are stated in different declarations, the declarations used for application must be enumerated): 01 original copy;

b) The declaration of goods processed for export, which have undergone customs procedure: 01 original copy; other papers proving the actual export mentioned in Article 30 of this Circular: 01 photocopy;

c) A processing contract signed with the foreign customer, specifying the names and quantity of raw materials supplied by the processing company: 01 photocopy;

d) The papers mentioned in Points a.2, a.4, a.5, a.7, a.8, a.9, a.10, a.11 Clause 1 of this Article.

4. The company that imports raw materials for manufacture of products, then uses such products to process exported goods under a processing contract sign with a foreign party shall submit:

An application similar to the case mentioned in Clause 1 of this Article, among which:

a) The export contract is replaced with a processing contract. The contract to buy products used for the processing contract and the processing contract may be included in the same contract: 01 photocopy;

b) A sheet of quantity of raw materials imported for manufacture of products that are used for processing and quantity of raw materials used for manufacture of exported products under the concluded processing contract: 01 original copy;

c) A statement of quantity of products manufactured and used for processing in reality: 01 original.

5. If the company imports raw materials for manufactures of products that are sold to another company for further processing and export, the application consists of:

a.1) A written request for refund or cancellation of import tax, specifying the amount and value of imported raw materials used for manufacture of products that are sold to another company for further processing and export; the quantity of goods that were sold; the quantity of products that were exported; the amount of import tax that was paid, numbers and dates of tax receipts, requested amount of import tax being refund or exempt (if various categories of goods are stated in different customs declarations, the customs declarations used for application must be enumerated): 01 original copy;

b) The declaration of exported goods that have undergone customs procedure: 01 original copy; an export contract: submit 01 photocopy and present the original for comparison (if goods are exported at another place than the place where goods are imported); other papers proving the actual export mentioned in Article 30 of this Circular: 01 photocopy;

If the exported goods mentioned in this Clause are made of multiple sources of materials and imported at various customs units, the application for tax refund or cancellation may use an authenticated photocopy of the export declaration, which is provided by the exporter. The authentication of the photocopy of the export declaration shall comply with the guidance of the General Department of Customs.

c) Sale invoices between two companies: 01 photocopy; a list of sale invoices: 01 original copy;

d) A sale contract between the importer and the company that processes exported goods, specifying that goods are used for export processing; receipts of payment for goods: 01 photocopy;

e) A processing contract or export contract between the company that processes exported goods with the foreign customer: 01 photocopy;

g) A statement made by the exporter of total amount and the amount of products necessary for the manufacture of an exported product;

h) An import contract signed with the foreign trader of the domestic importer;

i) The papers mentioned in Points a.2, a.4, a.5, a.7, a.8, a.9, a.10, a.11 Clause 1 of this Article.

6. If the company imports raw materials for manufactures of products that are sold to an exporter and the products are already exported, the application consists of:

a.1) A written request for refund or cancellation of import tax, specifying the amount and value of imported raw materials; the amount of import tax that was paid, tax receipts (numbers and dates); quantity of products that were sold to the exporter, quantity of products that were exported, requested refund or exemption of import tax (if various categories of goods are stated in different customs declarations, the customs declarations used for application must be enumerated): 01 original copy;

b) The sale contract and sale invoices of the company that sells products to the exporter: 01 photocopy;

c) The papers mentioned in Points a.2, a.3, a.4, a.5, a.7, a.8, a.9, a.10, a.11 Clause 1 of this Article.

7. If the company imports raw materials to produce goods that are sold to a foreign trader, then delivers them to another company in Vietnam at the request of the foreign trader for export processing, the application consists of:

a) A written request for refund or cancellation of import tax, specifying the quantity, value of raw materials imported for manufacture of goods that are sold to the foreign buyer in comparison with the categories and quantity of exported goods in the declaration of domestic export, including: numbers of import declarations, goods names, quantity and value of imported raw materials, quantity of products that were exported, import tax that was paid, numbers and dates of tax receipts, requested amount of tax refund or exemption (if various categories of goods are stated in different declarations, the declarations used for application must be enumerated): 01 original copy;

b) The export invoice(the stubs kept by the buyer) issued by the exporter: 01 photocopy;

c) The declaration of domestic export-import that has undergone customs procedure: 01 original copy;

The declaration of domestic export-import is only used for applying for tax refund/tax cancellation if the domestic importer registers the declaration in the form of export production or processing for further processing and export to abroad.

d) The sale contract requiring the exporter to deliver goods in Vietnam, the sale contract or processing contract that require the importer to receive goods in Vietnam: 01 photocopy;

e) The papers mentioned in Points a.2, a.4, a.5, a.7, a.8, a.9, a.10, a.11 Clause 1 of this Article.

8. If raw materials imported for export production are already exported to abroad but are still kept at an overseas warehouse, a bonded warehouse, or a transshipment port, the application consists of:

a) The papers mentioned in Clause 1 of this Article;

b) The declaration of goods exported to abroad and the declaration of imported goods issued by the customs of the importing country, showing that the goods are sent to an overseas warehouse, bonded warehouse, or transshipment port: 01 photocopy enclosed with the original for comparison;

c) Apart from the aforesaid papers, it is required to have:

c.1) A contract to send goods to an overseas bonded warehouse (if goods are sent to an overseas bonded warehouse): 01 photocopy enclosed with the original for comparison;

c.2)  A goods release note or a paper describing the transport in the form of transshipment: 01 photocopy enclosed with the original for comparison;

9. For raw materials imported for manufacture of goods exported to free trade zones (except for export processing company, export-processing zones, bonded warehouses), apart from the papers mentioned in Clauses 1, 2, 3, 4, 5, 6 of this Article, the declarant shall submit the following papers:

a) The declaration of goods exported to abroad of the company in the free trade zone, which use products made of raw materials imported by the applicant for tax refund: 01 photocopy authenticated by the company in the free trade zone;

b) A summary of quantity of products used in the free trade zone, and the quantity of goods of the company in the free trade zone that are exported to abroad in reality, which have been certified by the supervising customs authority, or an inventory report according to Clause 10 Article 48 and Article 49 of this Circular: 01 photocopy;

c) The production of products that are exported and used in the free trade zone made by the company in the free trade zone, which is certified by the supervisory customs authority.

Article 118. The application for refund of tax on goods temporarily imported for re-export or temporarily exported for re-import, and goods imported on behalf of the foreign party and then re-exported (except for goods temporarily imported or exported for attending a fair, exhibition, products introduction; the machinery, equipment, professional tools temporarily imported or exported to serve some task such as conventions, conference, scientific research, sports competition, art performance, medical examination and treatment, etc. that are exempt from tax)

1. A written request for refund or cancellation of paid tax, specifying the goods, tax, tax receipts (number, date); reasons for tax refund/tax cancellation, the customs declaration (if various categories of goods are stated in multiple declarations, the declarations used for application must be enumerated): 01 original copy;

2. A sale contract with the buyer or the seller, or an import entrustment contract with the foreign party: 01 photocopy;

3. The declaration of the imported goods that have undergone customs procedure: 01 original copy;

4. The customs declaration of exported goods that have undergone customs procedure: 01 photocopy (if goods are exported at another place than the place where goods are imported); other papers proving the actual export mentioned in Article 30 of this Circular: 01 photocopy;

5. Apart from the aforesaid papers, the following papers are also required if goods temporarily imported and goods imported on behalf of the foreign party and then exported to free trade zones (except for export processing companies, export-processing zones, bonded warehouses, which submit the applications prescribed in Clauses 1, 2, 3, 4, of this Article):

b) An inventory report specified in Clause 10 Article 48 of this Circular: 01 photocopy enclosed with the original for comparison;

a) The declaration of goods exported to abroad of the company in the free trade zone: 01 photocopy authenticated by the company in the free trade zone;

c) A summary of quantity of products used in the free trade zone in reality, and quantity of goods of the company in the free trade zone that are exported to abroad in reality, which is certified by the customs authority;

d) The intended quantity of products being exported and used within the free trade zone of the company in the free trade zone, which is certified by the supervisory customs authority (if the company in the free trade zone uses products purchased from a domestic company for manufacture, export, or consumption within the free trade zone).

6. The papers mentioned in Points a.4, a.5, a.11 Clause 1 Article 117 of this Circular.

Article 119. The application for refund of tax goods that are exported but must be re-imported to Vietnam

1. A written request for tax refund and tax cancellation, specifying the tax amount, numbers and dates of tax receipts, reasons, customs declarations, affirmation that goods have not been processed, repaired, or used overseas (if various categories of goods are stated on different declarations, the declarations used for application must be enumerated): 01 original copy.

2. A notification of the foreign customer or an agreement with the foreign customer on the return of goods, specifying the reasons, quantity, and categories of goods that are returned (if goods are returned by the customers according to Clause 4 Article 55 of this Circular): submit 01 photocopy.

If the taxpayer finds that goods are defective and re-imports them, this document may be excluded, but the reasons for re-import must be specified.

3. The declaration of exported goods that have undergone customs procedure: 01 original copy; other papers proving the actual export mentioned in Article 30 of this Circular: 01 photocopy; the customs dossier of the exported goods: present the original for comparison;

4. The customs declaration of re-imported goods specifying the export dossier under which such goods were exported, the inspection result of the customs authority certifying that the goods re-imported to Vietnam are the goods that were exported (if goods are exported at another place than the place where they are imported): 01 original copy;

If the goods that were exported were exempt from physical verification, the customs authority shall compare the result of inspection of re-imported goods with the export dossier to determine whether the re-imported goods are the goods that were exported;

5. The papers mentioned in Points a.4, a.5, a. 11 Clause 1 Article 117 of this Circular (receipts for payment for exported goods might not be provided if payment has not been made).

6. A sale contract and other papers proving that imported goods are the goods that were exported (if the importer is not the exporter) and papers proving the reasons for tax refund/tax cancellation.

Article 120. Application for refund of tax on goods imported but then returned to the goods owner overseas, or exported to a third country, or re-exported to a free trade zone

1. A written request for tax refund and tax cancellation, specifying the tax amount, numbers and dates of tax receipts, reasons, customs declarations specifying the quantity, categories, values etc. of re-exported goods (if various categories of goods are stated on different declarations, the declarations applied for tax refund shall be enumerated): 01 original copy.

2. An agreement on return of goods to the foreign party (if goods are returned to the foreign party) or an export contract (if goods are exported to a third country or re-exported to a free trade zone), specifying the reasons, quantity, quality, categories, and origins of goods: 01 photocopy.

3. The declaration of exported goods specifying the inspection result, quantity, quality, categories of exported goods, and the import dossier under which the goods are exported: 01 original copy; the customs dossier of the export shipment: present the original for comparison (if goods are exported at another place than the place where they are imported); other papers proving the actual export mentioned in Article 30 of this Circular: 01 photocopy;

If the imported goods were exempt from physical verification, the customs authority shall compare the result of inspection with the import dossier to determine whether the re-exported goods are the goods that were imported;

4. The customs declaration and customs dossier of imported goods: 01 photocopy enclosed with the original for comparison.

5. VAT invoice: 01 photocopy;

6. The papers mentioned in Points a.4, a.5, a.11 Clause 1 Article 117 of this Circular. If payment has not been made, the payment receipts of exported goods might not be provided.

7. Apart from the aforesaid papers, the following papers are also required if goods imported to Vietnam must be re-exported to a free trade zone (except for export processing companies, export-processing zones, bonded warehouses):

b) An inventory specified in Clause 10 Article 48 of this Circular: 01 photocopy enclosed with the original for comparison;

a) The declaration of goods exported to abroad of the company in the free trade zone: 01 photocopy authenticated by the company in the free trade zone;

c) A summary of quantity of products used in the free trade zone in reality, and quantity of goods of the company in the free trade zone that are exported to abroad in reality, which is certified by the customs authority;

d) The intended quantity of products being exported and used within the free trade zone of the company in the free trade zone, which is certified by the supervisory customs authority (if the company in the free trade zone uses products purchased from a domestic company for manufacture, export, or consumption within the free trade zone).

8. A sale contract and other papers proving that exported goods are goods that were imported (if the importer is not the exporter) and other papers proving the reasons for tax refund/tax cancellation.

Article 121. Application for refund of tax on machinery, equipment, instruments, or vehicles allowed to be temporarily imported to serve projects, construction, installation, production

1. A written request for refund of tax or tax cancellation, specifying the goods, tax, tax receipts (numbers, dates) the period they are used and retained in Vietnam, the reasons for tax refund, customs declaration (if various categories of goods are stated in multiple declarations, the declarations used for application must be enumerated): 01 original copy;

2. An individual import contract (or agreement) to borrow machinery, equipment, instruments, or vehicles: 01 photocopy;

3. The license to import if it is compulsory: 01 photocopy;

4. The declaration of exported, imported goods having the result of physical verification given by the customs in terms of quantity and categories of goods that are imported or exported in reality: 01 original copy; other papers proving the actual export mentioned in Article 30 of this Circular: 01 photocopy; the customs dossier of the exported, imported goods: present the original for comparison;

5. The papers mentioned in Point a.4 and Point a.11 Article 117 of this Circular;

6. Apart from the aforesaid papers, the following papers are also required if machinery, equipment, instruments, or vehicles, on which import tax has been paid, are allowed to be temporarily imported to serve projects, construction, installation, production, then re-exported to a free trade zone (except for export processing companies, export-processing zones, and bonded warehouses):

b) An inventory report specified in Clause 10 Article 48 of this Circular: 01 photocopy enclosed with the original for comparison;

a) The declaration of machinery, equipment, instruments, and vehicles exported to abroad of the company in the free trade zone: 01 photocopy authenticated by the company in the free trade zone;

c) A summary of quantity of machinery, equipment, instruments or vehicles used in the free trade zone in reality, and quantity of goods of the company in the free trade zone that are exported to abroad in reality, which is certified by customs authority.

Article 122. Application for refund of tax on temporarily imported machinery, equipment, instruments, vehicles that are not re-exported by the deadline, and are permitted by the Ministry of Industry and Trade (or a competent authority) to be transferred to another entity in Vietnam, and then re-exported from Vietnam by the transferee or the buyer

Apart from the papers mentioned in Article 121 of this Circular, the following papers are also required:

1. A written permission of the Ministry of Industry and Trade (or a competent authority) for the transfer of the machinery, equipment, instruments, vehicles that are temporarily imported (if the license is required): 01 original copy;

2. A sale contract or a record on transfer of machinery, equipment, instruments or vehicles between both parties: 01 photocopy;

3. The sale invoice cum release note issued by the importer to the buyer or transferee: 01 photocopy.

Article 123. Application for refund of tax on goods sent by an overseas organization or individual to an organization or individual in Vietnam by post or international express mail and vice versa, the tax on which has been paid by the service provider, but cannot be delivered to the recipient and must be re-exported, re-imported, confiscated or destructed as prescribed by law

1. A written request for refund of paid tax, specifying the goods, tax, tax receipts (numbers and dates); reasons for tax refund, the customs declaration (if various categories of goods are stated in multiple declarations, the declarations used for application must be enumerated): 01 original copy;

2. Documents and papers related to the exported, imported goods: 01 photocopy;

3. The customs declaration of exported, imported goods and certification made by the customs authority of the quantity, categories, and value of goods confiscated and destructed: 01 original copy;

4. The list of documents in the application for tax refund

Article 124. The application for refund of tax on exported or imported goods under the supervision of the customs authority (the export tax, import tax, and other tax have been paid) and that are expropriated due to customs offences

1. A written request for refund of paid tax, specifying the goods, tax, tax receipts (numbers and dates); reasons for tax refund, the customs declaration (if various categories of goods are stated in multiple declarations, the declarations used for application must be enumerated): 01 original copy;

2. The customs declaration of the exported or imported goods: 01 original copy;

3. Sale invoice: 01 photocopy;

4. An offence notice: 01 photocopy.

5. A decision on expatriation made by a competent authority: 01 photocopy;

6. The list of documents in the application for tax refund.

Article 125. The application for refund of tax on the exported or imported on which tax has been paid that are granted tax exemption by a competent authority

1. A decision on tax exemption made by a competent authority: 01 photocopy;

2. The papers mentioned in Clauses 1, 2, 3, 6 Article 124 of this Circular.

Article 126. Application for tax cancellation

1. If goods are eligible for tax refund and the export tax or import tax on which has not been paid by the deadline for paying tax, the application for tax cancellation is similar to the application for tax refund.

2. If goods are exempt from export tax, the application for cancellation of is similar to the application for import tax refund.

Apart from the papers mentioned in Article 117 of this Circular, the application for cancellation of export tax on exported goods recognized as being made totally of imported raw materials also need 01 copy of the sale contract (if the importer of raw materials is not the exporter of goods).

Article 127. Procedure for submitting, receiving and processing applications for tax refund and tax cancellation

1. Applications for tax refund and tax cancellation shall be submitted and received in accordance with Article 59 of the Law on Tax administration.

2. Deadline for submission of applications for tax refund and tax cancellation (applicable to the cases in which the rate of export and import tax is 0%):

a) Deadline:

a.1) The deadline for submitting the application for tax refund is decided by the taxpayer if sufficient tax has been paid;

a.2) If tax is not sufficiently paid (also applicable to the cases in which the rate of export and import tax is 0%):

The time limit for submitting the application for tax refund/tax cancellation is 60 days from the day on which the last declaration of exported or imported goods is registered.

a.3) The time limit for submitting the application for tax refund/tax cancellation on raw materials imported for production of goods that are already exported but have not been sold to the foreign buyer in reality and are still stored in the company’s warehouse overseas, or in a bonded warehouse overseas or a transshipment port overseas as prescribed in Article 117 of this Circular is the time limit mentioned in Point a.1 and Point a.2 of this Clause. If no export contract is made when the application for tax refund/tax cancellation is submitted, it is required to have a written commitment to present the export contract with the foreign customer within 15 working days from the day on which the export contract is signed;

a.4) If no payment receipt is available when the application for tax refund/tax cancellation is submitted, the time limit for submitting the payment receipt is 15 working days from the payment deadline written on the contract or its appendix. The company shall make a commitment to present the payment receipts as prescribed, except for the cases mentioned in Point d.2 Clause 8 of this Article.

a.5) The taxpayer shall carry a penalty if the application for tax cancellation is not submitted within the time limit mentioned in Point a.2 of this Clause.

b) If goods are not exported within 275 days or the time limit for paying tax is extended beyond 275 days from the day on which the declaration of raw materials imported for export production is registered, or from the deadline for re-exporting the temporarily imported goods, the taxpayer shall state and pay sufficient tax (even import tax has been paid before clearance or release of goods or before the customs procedure for temporary import is completed). If the purpose of goods is changed or goods are sold domestically by the deadline for paying tax, tax shall be stated and paid in accordance with Clause 8 and Clause 9 Article 11 of this Circular.

c) The raw materials imported for export production, goods temporarily imported for re-export (the application for tax cancellation has been submitted) may apply the deadline for paying tax and are exempt from administrative penalties in Clause 3 Article 42 and Article 93 of the Law on Tax administration, which is amended in Clause 11 and Clause 26 Article 1 of the Law on the amendments to the Law on Tax administration No. 21/2012/QH13 dated November 20, 2012 if the conditions below are satisfied:

c.1) For raw materials imported for export production:

c.1.1) All raw materials are used for export production and the products are exported in reality within 275 days (or after 275 days if the deadline for paying tax is extended); import tax on redundant raw materials (if any) is paid within 275 days (or after 275 days if the deadline for paying tax is extended).

c.1.2) The taxpayer only owes tax on the raw materials imported for export production that awaits a decision on tax cancellation from the customs authority.

c.2) For goods temporarily imported for re-export:

c.2.1) All or part of goods is re-exported; tax on the goods that are not re-exported has been paid by the deadline.

c.2.2) The taxpayer only owes tax on the re-exported goods that awaits a decision on tax cancellation from the customs authority.

c.1.2) The taxpayer has submitted the sufficient application for tax cancellation to the customs authority by the deadline mentioned in Point a Clause 2 of this Article.

c.4) The taxpayer has made a commitment to comply with the final decision of the customs authority.

3. The Sub-department of Customs where the procedure for tax cancellation is carried out shall receive, process the application for tax cancellation, and impose penalties in accordance with law (if any).

4. Applications for tax refund and tax cancellation shall be classified into two types: applications subject to inspection before tax refund and applications eligible for tax refund before inspection.

5. The applications subject to inspection before refund are the applications made by the taxpayers mentioned in Point b Clause 1 Article 60 of the Law on Tax administration, amended in Clause 18 Article 1 of the Law on the amendments to the Law on Tax administration  and Clause 2 Article 41 of the Decree No. 83/2013/NĐ-CP, and fall into the cases below:

a) Imported goods are subject to excise duty according to the Law on special excise duty;

b) The exported goods must be re-imported to Vietnam, or imported goods must be returned or exported to a third country or re-exported to a non-tariff zone, the export or import procedure is carried out at another customs post than the initial one;

c) The importer is not the exporter;

b) The applications for refund of import tax on raw materials imported for production of goods that are exported to non-tariff zones; the applications for refund of tax on temporarily imported goods that are re-exported to non-tariff zones;

dd) Goods are temporarily imported for re-export;

e) Goods are imported to be delivered or sold to foreign buyers via agents in Vietnam; goods are imported to be sold to vehicles of foreign companies on international routes across Vietnam’s ports and Vietnamese vehicles on international routes as prescribed by the Government;

g) The taxpayer submits the facsimile of the customs declaration and instead of the original one that is kept by the declarant;

h) The application for refund of export or import tax is made by a new company that has just been established over the previous 24 months from the date of application for tax refund.

6. The application eligible for tax refund before inspection is an application made by a taxpayer that satisfies the conditions below:

a) The taxpayer has engaged in export and import for at least 365 days up to the date of registration of the customs declaration of exported or imported goods. During the 365-day period before the application date of the customs declaration, customs authority certifies that:

a.1) The taxpayer has not incurred penalties imposed by the customs for smuggling or illegal traffic of goods across the border;

a.2) The taxpayer has not incurred penalties imposed by the customs for tax avoidance or tax fraud;

a.3) The taxpayer has incurred no more than 02 penalties for other customs offences (including understatement of tax payable or overstatement of tax exempted, reduced, or refunded) that beyond the power of the Director of the Sub-department of Customs according to the Law on Handling administrative violations;

b) The taxpayer does not owe overdue tax, late payment interest, or fine when the customs declaration is registered;

c) The taxpayer is not subject to inspection before tax refund as prescribed in Clause 5 of this Article, or the taxpayer is a favored company.

7. The customs authority shall process applications subject to inspection before tax refund or cancellation under the guidance of the General Department of Customs. If the statement and eligibility for tax refund/tax cancellation of the taxpayer is confirmed, the customs authority shall issue a decision on tax refund/tax cancellation within 40 days from the day on which the sufficient application for tax refund/tax cancellation is received.

8. The customs authority shall examine the application for tax refund before inspection; verify its consistency and validity, the requested refund and tax of the corresponding declarations on KT559 system, then:

a) If the eligibility of the taxpayer for tax refund/tax cancellation is confirmed, a decision on tax refund/tax cancellation shall be issued (the form No. 03/QĐHT/2013 in Appendix II to this Circular) within 06 working days from the day on which the sufficient application for tax refund is received.

b) If the eligibility for tax refund/tax cancellation is disproved, the customs authority shall notify the taxpayer of the reasons for no refund or no tax cancellation within 06 working days from the day on which the sufficient application for tax refund is received;

c) If the basis for verifying the taxpayer’s statement is not accurate, or the conditions for tax refund is not ample, the taxpayer shall be notified that the application is eligible for inspection after refund within 06 working days from the receipt of the application for tax refund;

d) Where the taxpayer fails to present the bank transfer confirmation (if required) when submitting the application for tax refund, the case shall be handled as follows:

d.1) If the company fails to present the bank transfer confirmation when submitting the application for tax refund because the deadline for payment in the contract or its appendix is longer than 60 days from the registration date of the last export declaration, or longer than 60 days from the deadline for tax payment, then the deadline for submission of the application for tax refund/tax cancellation is still the deadline mentioned in Clause 2 of this Article, but the company must make a commitment to present the bank transfer confirmation within 15 working days from the deadline for payment in the contract or its appendix.

d.2) If the bank transfer confirmation is not available before the deadline for payment but the company requests for tax refund before the provision of the bank transfer confirmation, or the company fails to present the bank transfer confirmation after the deadline for payment in the contract, then the application for tax refund must undergo inspection before tax refund in accordance with this Article. If the export of goods in reality is confirmed, tax refund or cancellation shall be given and the company is exempt from submitting the bank transfer confirmation after the decision on tax refund/tax cancellation is made.

e) After issuing the decision on tax refund/tax cancellation, the customs authority shall treat the overpaid tax, late payment interest and fine in accordance with Article 130 of this Circular.  If the conditions are found unsatisfied during an in-depth examination of the application for tax refund/tax cancellation, the customs authority shall revoke the decision on tax refund/tax cancellation, impose tax and penalties as prescribed.

If it is found that the temporarily imported goods are not re-exported or the imported raw materials are not used for manufacture during the examination of the application, Clause 8 and Clause 9 Article 11 of this Circular shall apply.

9. If the decision on tax refund/tax cancellation is issued after the aforesaid deadline on account of the customs, the customs authority must pay an interest on the period from the deadline for issuing the decision on tax refund to the issuance date of the decision on tax refund, apart from the refunded tax.

10. For goods eligible for tax refund according to Article 112 of this Circular or eligible for exemption of import tax on goods serving processing contracts, the facsimile of the original customs declaration kept by the customs may be used if the declarant is not able to submit the original customs declaration that is kept by the declarant and makes a request for permission to use the photocopy. Procedure:

a) If goods are imported and exported at the same Sub-department of Customs, (unless they are eligible for tax refund according to Clause 5, Clause 7 and Clause 8 Article 112, to which Point b of this Clause shall apply):

a.1) The company shall make a report on the loss of the declaration and a request for using the facsimile of the original declaration kept by the customs, enclosed with papers proving the loss;

a.2) Based on the request of the company, the Sub-department of Customs where the customs procedure is carried out shall:

a.2.1) Within 05 working days from the receipt of the written request made by the company, the customs authority shall:

- Examine the application and the papers proving the loss of the declaration;

- If the statement is proved truthful, 01 facsimile of the declaration kept by the customs shall be made. Only 01 photocopy of the declaration shall be made for only one time. Such reproduction must be written on the original declaration kept by the customs authority to avoid making multiple photocopies: “This declaration has one facsimile dated ...”;

- A notification of the loss of the declaration kept by the declarant shall be sent to every provincial Customs Department. The original declaration kept by the declarant is no longer valid for tax refund/tax cancellation nationwide. The tax refund/tax cancellation on the original declaration kept by the declarant, which is declared lost by the company, shall be immediately terminated.

a.2.2) Based on the application for tax refund/tax cancellation, the facsimile of the declaration kept by the customs, the customs authority where tax is refund shall compare information on the accounting system KT559, export processing management programs, and other information sources (if any); carry out inspection before refunding tax as prescribed in this Article, give tax refund/tax cancellation to the company if goods are proved exported in reality and the goods stated in the facsimile declaration has not been given tax refund/tax cancellation.

a.2.3) Impose penalties if the company is cheating or commits violations.

b) For other cases:

b.1) The company shall make a report on the loss of the declaration and a request for using the facsimile of the original declaration kept by the customs, enclosed with papers proving the loss;

b.2) Based on the request of the company, the customs authority shall:

b.2.1) The Sub-department of Customs that carries out the procedure for the lost declaration shall request Customs Departments of provinces in writing to make written certification that no tax refund/tax cancellation on the lost declaration has been given and not to give tax refund/tax cancellation on the original declaration that is declared lost by the company.

Within 05 working days from the day on which the request made by the taxpayer is received, the Customs Department of the province shall check information on the accounting system KT559, export processing management programs, etc., make a response to the customs authority that carries out the customs procedure if no tax refund/tax cancellation is given, and shall not give tax refund/tax cancellation on the declarations declared lost by the company.

b.2.2) After the receipt of all confirmations from provincial Customs Departments that no tax refund/tax cancellation on the lost declaration is given, the customs authority shall:

+ Examine the application and the papers proving the loss of the declaration;

+ If the statement is proved truthful, 01 facsimile of the declaration kept by the customs shall be made. Only 01 photocopy of the declaration shall be made for only one time. Such reproduction must be written on the original declaration kept by the customs authority to avoid making multiple photocopies: “This declaration has one facsimile dated ...”;

+ Send a notification of the loss of the declaration kept by the declarant to every provincial Customs Department and request the photocopy of the customs declaration as the basis for refund or exemption of import or export tax nationwide.

b.2.3) Based on the written request made by the taxpayer for permission to use the facsimile of the declaration in the application for tax refund/tax cancellation, the customs authority shall compare the application, the facsimile of the declaration and information on the accounting system KT559, export processing management programs, other information sources (if any); carry out inspection before refunding tax in accordance with this Article, give tax refund or tax cancellation to the company if the goods are proved exported in reality and no tax refund/tax cancellation on the lost declaration is given.

b.2.4) Impose penalties if the company is cheating or commits violations.

Article 128. The power to decide tax refund and tax cancellation

The Director of the Sub-department of Customs where the declaration is registered shall decide the tax refund, tax cancellation, and tax deductions in accordance with Article 127 of this Circular.

Article 129. Recording tax refund and tax cancellation on the customs declaration

1. Based on the decision on tax refund/cancellation, the customs authority that owes the tax refund shall provide the tax refund and append a stamp on the customs declaration submitted by the taxpayer “Tax refund (tax cancellation) of ... VND under the decision No. ... dated ... (the stamp form No. 14/MDHT/2013 in Appendix II to this Circular) and return the original customs declaration to the taxpayer.

2. If a declaration is used many times for tax refund/cancellation, the customs authority shall:

a) Compile a table to monitor the tax refunds (tax cancellations), specifying that a table is compiled on the customs declaration.  When giving tax refund/cancellation, the customs authority shall specify the amount of each refund/cancellation on the table and append the “tax refunded/cancelled” stamp on the table;

c) Append the “Refund/cancellation” stamp on the customs declaration kept by the company when carrying out the procedure for last tax refund/cancellation;

d) Keep 01 photocopy of the declaration with the application for tax refund/cancellation and return the customs declaration to the taxpayer as in the case of single tax refund/cancellation;

dd) The total amount of import, export tax shall be refunded/cancelled in proportion to the amount of goods exported, imported in reality.

Article 130. Dealing with overpaid tax, late payment interest, and fine after the decision on refund of overpaid tax, late payment interest, or fine is made because the tax paid is larger than the tax, late payment interest and fine payable

1. If the budget for refund of overpaid tax, late payment interest and fine is from the deposit account, the customs authority that owes the tax refund shall check information on the tax debt monitoring network and follow the order below:

a) If the taxpayer does not owe any overdue tax, late payment interest or fine, a refund of tax, late payment interest and fine shall be given to the taxpayer as prescribed.

When the refundable amount is offset against the tax, late payment interest, or fine payable next time, the customs authority shall write on the customs declaration (the original kept by the declarant and the original kept by the customs): “Tax deduction of ... VND under the Decision on refund No. ... dated ... of ... and the Decision on deduction No. ... dated ... of ...”, append a stamp specifying the deducted tax, late payment interest, or fine, the number and date of the customs declaration on the original decision of tax refund, the customs declarations, and tax receipts (the form No. 14/MDHT/2013 in Appendix II to this Circular).

b) If the taxpayer still owes tax, late payment interest, or fine on the shipments imported in the same way, the customs authority shall offset the refundable amount against the tax, late payment interest or fine owed by the taxpayer.

c) If the taxpayer still owes tax, late payment interest, or fine on the shipments imported in other forms that must be paid to government budget, the customs authority shall make payment on behalf of the taxpayer.

d) The customs authority that owes the refund shall return the remaining amount to the taxpayer after the refundable amount is offset as prescribed above.

If the taxpayer requests that the refundable amount or remaining amount after the settlement of debt be offset against the tax on the next export or import instead of being returned, the customs authority that owes the refund shall offset it under the guidance in Point a of this Clause.

2. If the budget for refund of overpaid tax, late payment interest, fine is funded by government budget:

a) If the taxpayer does not owe any overdue tax, late payment interest or fine, and does not wish to offset the refundable amount against the tax payable in the next time, the customs authority shall send a written request for tax refund enclosed with the decision on tax refund to the State Treasury. If the customs authority has offset part of the same tax or among various taxes in the same locality, the written request of tax refund sent to the State Treasury must specify the remaining amount after the refund of the decision on tax refund. Based on the decision on tax refund made by the customs authority, the State Treasury shall give the refund to the taxpayer.

The refund shall be settled as follows:

- If the revenue is not settle, the State Treasury shall return it according to government budget table.

- If the revenue is already settle, the State Treasury shall record the budget expenditure and send 01 copy of refund certificate (paper or electronic form) to the customs authority that makes the decision on refund.

b) If the taxpayer still owes overdue tax, late payment interest, or fine on other shipment, and wishes to offset the refundable amount against the amount payable, the taxpayer shall make are request for refund and offset (the form No. 05/ĐNHT enclosed with the Circular No. 08/2013/TT-BTC dated January 10, 2013 of the Ministry of Finance on accounting of Treasury and Budget Management Information System (TABMIS), specifying the amount being offset, then send it to the customs authority. The customs authority shall send the request of refund, the decision on refund of tax, late payment interest, fine, and the request for refund and offset to the State Treasury or commercial bank if the customs authority finds that the tax is offset against the same tax or a different tax in the same locality.

When offsetting tax, the customs authority shall compare with information on the tax debt monitoring network and follow the order below:

If the taxpayer does not owe any overdue tax, late payment interest or fine, a refund of tax, late payment interest and fine shall be given to the taxpayer as prescribed;

When the refundable amount is offset against the tax, late payment interest, or fine payable next time, the customs authority shall write on the customs declaration (the original kept by the declarant and the original kept by the customs): “Tax deduction of ... VND under the Decision on refund No. ... dated ... of ... and the Decision on deduction No. ... dated ... of ...”, append a stamp specifying the deducted tax, late payment interest, or fine, the number and date of the customs declaration on the original decision of tax refund, the customs declarations, and tax receipts (the form No. 14/MDHT/2013 in Appendix II to this Circular).

The refund shall be settled as follows:

b.1) If tax is collected and refunded at the same State Treasury, the refund shall be given in accordance with Point a of this Clause. Budget revenue shall be recorded under the collection order of the customs authority. The overpaid tax, late payment interest or fine that remains (if any) shall be paid to the taxpayer.

b.2) If tax is collected and refunded at difference State Treasuries, the State Treasury where tax is refunded shall record the refund in accordance with Clause 1 of this Article, send the refunded amount and the collection order of the customs authority to the State Treasury where tax was collected. The overpaid tax, late payment interest or fine that remains (if any) shall be paid to the taxpayer.

c) After tax is refunded, the State Treasury shall send 01 certificate of tax refund to the customs authority that issues the decision on refund for monitoring.

3. If the customs authority finds that the taxpayer still has other tax liability but does not wish to offset the refundable amount against the amount payable, the customs authority shall suspend the refund and request the taxpayer to settle tax or make a request for offsetting the refundable amount against the tax payable.  If the taxpayer fails to discharge the liability to government budget (or fail to make a request for offsetting the refundable amount against the amount payable) by the deadline notified by the customs authority, the customs authority shall make an order for refund and offsetting (the form No. C1-05/NS enclosed with the Circular No. 08/2013/TT-BTC dated January 10, 2013 of the Ministry of Finance) and send it to the State Treasury where the refund given, and notify it to the taxpayer.

4. The guidance on settlement overpaid tax, late payment interest and fines provided in this Article does not apply to VAT on imported goods overpaid or paid by mistake to the customs authority by the taxpayer (the customs authority shall not refund VAT).

If the taxpayer finds that VAT on imported goods is overpaid or paid by mistake to the customs authority in the fiscal year, an adjustment shall be made using the form No. C1-07 enclosed with the Circular No. 08/2013/TT-BTC dated January 10, 2013 of the Ministry of Finance. The taxpayer shall also submit the original payment receipt. The customs authority shall certify append its signature and seal on the front page of the payment receipt, on which VAT has been changed into another tax, then send it to the State Treasury for adjustment. In other cases of overpaid tax, the customs authority shall determine the amount of overpaid tax so that the tax authority could refund it to the taxpayers..

Section 7.  LATE PAYMENT INTEREST, INSTALMENT PAYMENT OF TAX DEBT, EXTENSION OF DEADLINE FOR PAYING TAX, LATE PAYMENT INTEREST, FINES; CANCELLATION OF OUTSTANDING TAX, LATE PAYMENT INTEREST, FINES

Article 131. Late payment interest

1. The taxpayer shall pay late payment interest if:

a) Tax is paid after the prescribed deadline, the extended deadline, the deadline written in decision to impose penalties for tax offences made by the customs and competent authorities;

b) The taxpayer pays insufficient tax because of incorrect statement of tax payable, exempted, refunded, or reduced;

c) The taxpayer pays tax by instalments according to Article 132 of this Circular;

d) Exported or imported goods are stated as tax-free, tax-exempt, eligible for preferential tax rates, incentives, tax under tariff quota, but are found ineligible after inspection.

dd) Exported or imported goods are sold to the domestic market as prescribed in Clause 8 and Clause 9 Article 11 of this Circular.

2. The agency that delays transferring the tax collected to government budget shall pay late payment interest on the period from the deadline for transferring money to government budget to the day on which money is transferred to government budget.

3. The guarantor shall pay late payment interest if the taxpayer fails to pay sufficient tax by the end of the guarantee period.

4. Calculation of late payment interest:

a) The rate of late payment interest is 0.05% per day if tax payment is delayed no more than 90 days; 0.07% if tax payment is delayed for more than 90 days in the cases mentioned in Clause 1 of this Article.

b) After the 90-day period from the deadline for paying tax but before the effective date of the Law on the amendments to of the Law on Tax administration, the rate of late payment interest is 0.05% until June 30, 2013. From July 01, 2013, the rate of late payment interest is 0.07%.

c) IF tax debt may be paid in instalments, the taxpayer shall pay late payment interest at 0.05% per day over the instalment period;

The period of late payment begins on the day succeeding the deadline for paying tax, the extended deadline, the deadline written in the notification or decision of the customs or competent authority to the day preceding the day on which the tax is paid, collected, or transferred to government budget.

5. The taxpayer or tax collector shall state and pay the late payment interest if they can calculate it themselves as prescribed in Clause 4 of this Article.

If the taxpayer, tax collector or guarantor fails to calculate or incorrectly calculates the late payment interest, the customs authority shall calculate the late payment interest and notify the taxpayer, tax collector or guarantor.

6. If the taxpayer, tax collector or guarantor fails pay tax and late payment interest after 30 days from the deadline, the customs shall notify the taxpayer, tax collector or guarantor of the tax and late payment interest (the form No. 59/TB-TTN-TCN1/2013 and 60/TB-TTN-TCN2/2013 in Appendix III to this Circular).

7. The taxpayer is exempt from paying late payment interest on the tax debt over the tax deferral period.

Article 132. Paying tax debt in instalment

1. If the conditions in Clause 1 and Clause 2 Article 39 of the Decree No. 83/2013/NĐ-CP are satisfied, tax debt may be paid in instalments within 12 months from the beginning of the tax coercion period. The taxpayer shall register and make a commitment to pay tax debt in instalment as follows:

a) If tax debt is from over 500,000,000 VND to 1,000,000,000 VND, tax shall be paid within 03 months;

a) If tax debt is from over 1,000,000,000 VND to 2,000,000,000 VND, tax shall be paid within 06 months;

c) If tax debt is over 2,000,000,000 VND, tax shall be paid within 12 months;

If the taxpayer shall not be allowed to pay tax in installment if he fails to comply with the commitment on time limit (by month). The guarantor shall pay tax on behalf of the taxpayers as prescribed in Article 39 of the Decree No. 83/2013/NĐ-CP.

2. Application:

a) A written request for permission to pay tax in installments sent to the competent customs authority, specifying the reasons for not paying a lump sum tax, enclosed with the registration form of instalment payment: 01 original copy;

b) The customs declaration of the outstanding tax, the notification of the customs authority of the tax debt (if any): 01 photocopy;

c) A letter of guarantee of a credit institution of the tax being paid in instalment according to Article 21 of this Circular: 01 original copy;

3. The power to permit tax payment by instalments:

a) If tax is incurred at a Sub-department of Customs, the Director of such Sub-department of Customs has the power to permit tax payment in instalments;

a) If tax is incurred at multiple Sub-departments of Customs under the management of the same Customs Department, the Director of the Customs Department has the power to permit tax payment in instalments;

a) If tax is incurred at multiple Customs Departments, the Director of the General Department of Customs has the power to permit tax payment in instalments;

4. Deadline for response:

a) If the application is sufficient, the customs authority shall send the taxpayer a written notification of approval or disapproval of tax payment in instalments;

b) If the application is sufficient, the customs authority shall request the taxpayer in writing to complete the application within 03 raw materials from the receipt of the application.

If the taxpayer fails to complete the application within 05 working days from the day on which the request from the customs authority is received, the customs authority shall not consider tax payment in instalments as prescribed in this Article.

Article 133. Deferral of payment of tax, late payment interest, and fines (hereinafter referred to as tax deferral)

1. Tax deferral shall be considered in the cases mentioned in Clause 1 Article 31 of the Decree No. 83/2013/NĐ-CP.

2. The application for tax deferral prescribed in Clause 2 Article 51 of the Law on Tax administration consists of:

a) A written request for tax deferral, specifying the reason, tax, late payment interest, fine, and length of deferral (if the tax, late payment interest or fine are mentioned in multiple customs declarations, they must be enumerated); a commitment to make accurate statement and provide proper documents; the plan and commitment to pay tax, late payment interest and fine that are deferred: 01 original copy;

b) The customs declaration involved; the sale contract: 01 photocopy (if the extension is within the competence of the Director of the Sub-department of Customs); the tax statement that has the payment of tax, late payment interest and fine being deferred: 01 photocopy (if the deferral is beyond the competence to decide of the Director of the Sub-department of Customs); a report on the tax, late payment interest and fine that are incurred when the causative event occurs: 01 original copy;

c) In the cases mentioned in Point a Clause 1 Article 31 of the Decree No. 83/2013/NĐ-CP, the following documents are also required:

c.1) A confirmation of damage made by a competent authority; a confirmation of natural disaster, conflagration, or accident made by the People’s Committee of the commune, ward or town: 01 photocopy;

c.2) A certification of natural disaster, conflagration, or accident made by the police department or the People’s Committee of the province where they happen;

d) In the cases mentioned in Point b Clause 1 Article 31 of the Decree No. 83/2013/NĐ-CP, the following documents are also required:

d.1) A decision on withdrawal of the old premises of the company made by a competent authority: 01 photocopy;

d.2) A certification made by the local government that the company has to suspend its operation because of the move: 01 original copy;

d.3) A written certification made the local tax authority that monitors the taxpayer of the damage caused by the move. The damage is determined based on the documents, relevant policies of law, including: residual value of the building, workshop, warehouse, equipment that are not recovered after the dismantlement (input value minus depreciation), the cost of dismantlement, the cost of transport and installation of the new premises (minus recovered cost), wages paid to workers during the suspension (if any), written requests for opinions of specialized agencies if the case is complicated and involves other economic or technical fields: 01 original copy;

dd) In the cases mentioned in Point c Clause 1 Article 31 of the Decree No. 83/2013/NĐ-CP, the following documents are also required:

dd.1) A written certification made by a competent authority that the taxpayer engaged in construction is not able to pay tax derived from the capital provided by government budget that has not been provided by government budget: 01 original copy;

dd.2) A written certification made by the State Treasury of the capital provided by government budget: 01 original copy;

e) In the cases mentioned in Point d Clause 1 Article 31 of the Decree No. 83/2013/NĐ-CP:

e.1) If the raw materials imported for export production meet the conditions in Clause 1 Article 20 of this Circular, but the cycle of manufacture and storage of raw materials (hereinafter referred to as cycle) is longer than 275 days: in the written request for extension the cycle beyond 275 days, the taxpayer must explain the storage of raw materials, the procedure and period of manufacture, which suits the period of storage of raw materials: 01 original copy; papers proving the extension of deadline for delivery on the export contract and providing explanation: 01 photocopy.

e.2) For other cases in Point d Clause 1 Article 31 of the Decree No. 83/2013/NĐ-CP, the papers related to the objective reasons for paying tax behind schedules are required.

3. The payment of tax, late payment interest and fine that is deferred shall comply with Clause 2 Article 31 of the Decree No. 83/2013/NĐ-CP.

4. The length of tax deferral fine shall comply with Clause 3 Article 31 of the Decree No. 83/2013/NĐ-CP. For imported raw materials for export production a cycle longer than 275 days according to Point d Clause 1 Article 31 of the Decree No. 83/2013/NĐ-CP, the maximum period of tax deferral shall not exceed the delivery deadline on the contract to export products made of imported raw materials, or not exceed the cycle (but within 01 year) according to Point b Clause 3 Article 31 of the Decree No. 83/2013/NĐ-CP.

5. Procedure for deferral:

a) The taxpayer eligible for tax deferral mentioned in Point a, Point b, Point c and Point d Clause 1 Article 31 of the Decree No. 83/2013/NĐ-CP (for raw materials imported for export production with a cycle longer than 275 days) shall make and send an application for tax deferral to the customs authority to which tax, late payment interest or fine is owed.

b) The taxpayer faces special difficulties and granted deferral by the Prime Minister at the request of the Minister of Finance shall send the application for tax deferral to the General Department of Customs.

c) The customs authority to which tax, late payment interest or fine is owed shall receive the application, verify information, and process the application for deferral in accordance with Article 52 of the Law on Tax administration.

For raw materials imported for export production with a cycle longer than 275 days that are granted deferral according to Point d Clause 1 Article 31 of the Decree No. 83/2013/NĐ-CP, the Sub-department of Customs where the customs declaration of imported goods is registered shall receive and process the application as follows:

c.1) If the application is insufficient or improper, the Sub-department of Customs shall notify the taxpayer of the reasons within 03 working days from the receipt of the application.

c.2) If the application is sufficient and proper, the Sub-department of Customs shall request the Customs Department to consider deferring tax payment beyond 275 days within 10 working days from the receipt of the sufficient application.

c.3) The Customs Department shall carry out physical verification to verify the cycle if necessary. The verification and decision on tax deferral shall be done within 30 working days from the receipt of the sufficient application. The inspection must be recorded in writing, specifying the cycle of the raw materials, the deferral of payment of tax on which is requested.  Verification result shall be dealt with as follows:

c.3.1) If the conditions for deferring tax payment beyond 275 days are not satisfied, Customs Department shall notify the taxpayer in writing within 03 working days from the day on which the record on verification result is made;

c.3.2) If the conditions are satisfied, Customs Department shall make a written permission to defer tax payment for more than 275 days, which suits the cycle of the raw materials, within 03 working days from the day on which the record on verification result is made.

d) The General Department of Customs shall receive the applications for tax deferral from the taxpayers facing special difficulties as prescribed in Point d Clause 1 Article 31 of the Decree No. 83/2013/NĐ-CP, send a report to the Minister of Finance for requesting the Prime Minister to consider and make decisions on a case-by-case basis.

6. The power to grant deferral

a) The Director of the Sub-department of Customs has the power to grant tax deferral if the taxpayer is not able to punctually pay tax, late payment interest, or fine that is incurred at only one Sub-department of Customs according to Point a, Point b, Point c Clause 1 Article 31 of the Decree No. 83/2013/NĐ-CP.

b) The Director of the Customs Department has the power to grant tax deferral if the taxpayer is not able to punctually pay tax, late payment interest, or fine that is incurred at multiple Sub-departments of Customs under the management of the same Customs Department, and the power to defer payment of tax on raw materials imported for export production with a cycle longer than 275 days according to Point d Clause 1 Article 31 of the Decree No. 83/2013/NĐ-CP.

c) The Director of the General Department of Customs has the power to grant tax deferral if the taxpayer is not able to punctually pay tax, late payment interest, or fine that is incurred at multiple Customs Departments according to Point a, Point b, Point c Clause 1 Article 31 of the Decree No. 83/2013/NĐ-CP.

d) The Prime Minister shall make decision on the cases in which taxpayers face special difficulties according to Point d Clause 1 Article 31 of the Decree No. 83/2013/NĐ-CP at the request of the Ministry of Finance.

Article 134. Cancellation of outstanding tax, late payment interest, and fines

1. In the cases mentioned in Clause 1, Clause 2, Clause 3 Article 65 of the Law on Tax administration, amended in Clause 20 Article 1 of the Law on the amendments to the Law on Tax administration No. 21/2012/QH13 dated November 20, 2012, tax, late payment interest and fines shall be cancelled.

2. The conditions for cancellation outstanding tax, late payment interest and fines in the cases mentioned in Clause 3 Article 65 shall comply with Point c Clause 1 Article 32 of the Decree No. 83/2013/NĐ-CP.

3. The application for cancellation:

a) A written request for cancellation of outstanding tax, late payment interest or fine of the Customs Department to which the taxpayer owes tax, late payment interest or fine, specifying the reasons, the amount of tax, late payment interest or fine: 01 original copy;

b) The customs dossier of the tax, late payment interest, or fine that need canceling: 01 photocopy;

c) Additional documents related to the request for cancellation of tax, late payment interest or fine may be required on a case-by-case basis. In particular:

c.1) In the cases mentioned in Clause 1 Article 65 of the Law on Tax administration:

A decision made by a competent authority to declare bankruptcy of a company: 01 original copy;

c.2) In the cases mentioned in Clause 2 Article 65 of the Law on Tax administration:

A death certificate or a declaration of missing person made by the court; a declaration of incapacity of civil acts made by the court, or documents of a competent authority proving that a person is dead, missing, or incapable of civil acts: 01 original copy;

c.3) In the cases mentioned in Clause 3 Article 65 of the Law on Tax administration, amended in Clause 20 Article 1 of the Law on the amendments to the Law on Tax administration No. 21/2012/QH13:

The documents enclosed with the dossier on tax coercion (when the Certificate of Business registration or Certificate of Enterprise registration or certificate of investment is revoked). A certification of a competent authority is required if the Certificate of Business registration or Certificate of Enterprise registration or certificate of investment is not revoked: 01 photocopy;

4. The power, order, and time limit for considering tax cancellation:

a) The power to cancel debts is specified in Article 67 of the Law on Tax administration, amended in Clause 22 Article 1 of the Law on the amendments to the Law on Tax administration No. 21/2012/QH13.

b) Order:

b.1) The Director of the Customs Department  to which tax, late payment interest or fine is owed shall verify the accuracy and sufficiency of the application for cancellation of outstanding tax, late payment interest or fine, and send and it to an authority competent to write of debt.

b.2) The Director of the General Department of Customs shall consider and decide debt cancellation in the cases within its competence, or receive, verify the accuracy and sufficiency of the application for debt cancellation, and request the Minister of Finance to make debt cancellation in the cases within the competence of the Minister of Finance, or to request the Prime Minister to make debt cancellation in the cases within the competence of the Prime Minister.

b.3) Presidents of the People’s Committees of provinces shall consider and decide debt cancellation in the cases within their competence.

c) The deadline for considering debt cancellation shall comply with Article 68 of the Law on Tax administration.

Section 8. FULFILLMENT OF TAX OBLIGATION

Article 135. Fulfillment of tax obligation when leaving Vietnam

1. If a Vietnamese person leaving Vietnam to reside abroad, a Vietnamese residing abroad, a foreigner still owes outstanding tax, late payment interest or fines on exported/imported goods, tax obligation must be fulfilled before they leave Vietnam.

2. The taxpayers mentioned in Clause 1 of this Article must obtain a certification of fulfilled tax obligation made by a tax authority before the departure. The customs authority shall notify in writing or electrically to the immigration agency of the fulfillment of tax obligation of the persons that owe tax, late payment interest or fine on exported and imported goods. The notification shall specify the full names of the persons that have not fulfilled tax obligation, their dates of birth, nationalities, ID numbers, and the customs authorities that monitor the tax debts.

3. The immigration agency shall suspend the departure of the persons that have not fulfill the tax obligation mentioned in Clause 1 of this Article in accordance with Article 53 of the Law on Tax administration and Clause 3 Article 30 of the Decree No. 83/2013/NĐ-CP.

Article 136. Fulfillment of tax obligation upon dissolution, bankruptcy, and shutdown

1. The fulfillment of tax obligation upon dissolution and bankruptcy shall comply with Article 54 of the Law on Tax administration, legislation on companies, cooperatives, and bankruptcy.  Responsibility to fulfill tax obligation upon dissolution, bankruptcy, and shutdown:

a) The owner of a private company, the owner of a single-member limited liability company, the President and members of the Member assembly, the legal representative of a multi-member limited liability company, the Board of Directors of a joint-stock company, or the liquidator is responsible for the fulfillment of tax obligation when the company is dissolved.

b) The Dissolution council of the cooperative is responsible for the fulfillment of tax obligation of the cooperative when it is dissolved.

c) The asset management and liquidation department is responsible for the fulfillment of tax obligation of the cooperative when the company is dissolved.

2. The fulfillment of tax obligation upon when the taxpayer suspense the operation without following the dissolution or bankruptcy as prescribed by law:

a) The owner of a private company, the President of the Member assembly, the owner of a limited liability company, the President of the Board of Directors of a joint-stock company, the head of the management board of a cooperatives that is suspended without following the dissolution or bankruptcy shall pay the outstanding tax debt if tax obligation is not fulfilled.

b) When a household or individual shuts down the business without fulfilling the tax obligation, the owner of the household or the individual shall pay the outstanding tax debt.

c) When an artel is shut down without fulfilling the tax obligation, the head of the artel shall pay the outstanding tax debt.

Article 137. Fulfillment of tax obligation upon company restructuring

1. The company is responsible for fulfilling tax obligation on exported and imported tax before it is restructured.

2. If the company fails to fulfill tax obligation before it is restructured, every company established after the restructuring shall determine its tax obligation and make a commitment to fulfill tax obligation transferred by the restructured company.

3. The tax authority shall not issue tax codes to the companies established after the restructuring without a written certification of the customs authority that they have complied with the requirements in Clause 2 of this Article.

Article 138. Verifying fulfillment of tax obligation

1. When certification of the fulfillment of tax obligation is required (including verification of amount of tax, late payment interest, fine, other amounts paid and/or tax paid to government budget), the taxpayer or the competent authority shall make a written request for certification of tax obligation and send it to the General Department of Customs, specifying:

a) Taxpayer's name, tax code;

b) Contents that need certifying, purpose, and requirement of certification;

C) Documents proving the contents that need certifying (photocopies).

If the taxpayer requests a certification of fulfillment of tax obligation, the written request must be bear the signature and seal of the legal representative.

2. The customs authority shall inspect and certifies the fulfillment of tax obligation when the taxpayer submits a written request in accordance with law.

If certification is refused, a written explanation must be provided.

If information about the fulfillment of tax obligation of the taxpayer must be verified, the customs authority shall notify the taxpayer of the delay.

Result shall be sent to taxpayers within 05 working days from the receipt of sufficient documents from the taxpayer.

3. Within 15 days from the day on which the General Department of Customs issues a written certification of tax debt, the Customs Department shall inspect the tax debt owed by the company based on the accounting documents. If tax debt is found, including the data on the tax accounting system (KT559) and the cases that are not recorded in such system which relate to export and import, the General Department of Customs must be immediately inform to verify the tax debt owed by the company. If the Customs Department fails to inform the General Department of Customs by the aforesaid deadline, the Customs Department shall be responsible for the debts owed by the company under their management.

4. If the company requests a certification of fulfillment of tax obligation to dissolve or shutdown, and registers for export at a Customs Departments of provinces and cities after the Customs Department issues a written certification of tax debt, it must pay sufficient tax and other payables to government budget, which relate to export and import before goods are received.

5. The certification of tax debt issued by the General Department of Customs is valid for 30 days from the day on which it is signed. The company shall make a statement that is owes no tax and payables to government budget related to export and import up to the signing day, and take responsibility for such statement.

Part VI

POST-CLEARANCE INSPECTION, TAX INSPECTION

Chapter I

POST-CLEARANCE INSPECTION

Article 139. Objects of post-clearance inspection

Customs dossier, accounting books, financial statements, relevant documents, exported or imported goods granted clearance of the owner or the person authorized by the goods owners, the exporter, the importer, the customs brokerage agent, the postal service provider, the express mail service provider (hereinafter referred to as companies) are the object of post-clearance inspection.

Article 140. Principles, purposes, and time limit for post-clearance inspection

Post-clearance inspection is to verify the accuracy of the documents submitted or presented to the customs authority, assess the compliance of companies to legislation on customs, taxation, and other laws related to the management of exported and imported goods.

The customs authority shall apply risk management methods to decide on objects, scope, contents, and method of post-clearance inspection.

Post-clearance inspection of the customs dossiers and goods granted clearance shall be carried out within 5 years from the registration date of the customs declaration. If the company commits a similar violation beyond the time limit, the company shall make additional statement and tax payment as prescribed.

Article 141. Scope of post-clearance inspection

Depending on the requirements of each post-clearance inspection and each case, the customs authority shall decide the scope of post-clearance inspection:

1. Inspect the export, import of an article of a company over a period of time.

2. Inspect the export, import of multiple articles of a company over a period of time.

3. Inspect one or multiple aspects (e.g. policies, values, HS numbers, origins) of one or multiple articles of a company over a period of time.

4. Inspect one or multiple forms of export and import of a company over a period of time.

5. Inspect all export, import activities of a company over a period of time.

Article 142. Contents of post-clearance inspection

1. Inspection of the sufficiency, legitimacy and validity of the customs dossiers kept by the company and the customs authority that carries out customs procedure for exported or imported goods;

2. Inspection of the accuracy of the basis for tax calculation, the accuracy of statement of tax payable, exempt, or refunded;

3. Inspection of the compliance with of other regulations of legislation on taxation;

4. Inspection of the compliance with legislation on customs

5. Physical verification of exported or imported goods that are granted clearance at the premises of the company, its branch, store, factory, or storage where necessary.

Article 143. Verification during post-clearance inspection

1. Verification means the customs authority requesting relevant or capable organizations and individuals to clarify the issues that are questionable, irrational, or the signs of violations of law.

2. Verification may be requested by the Directors of Customs Departments of provinces, the Director of Department of Post-clearance Inspection, the Directors of Sub-department of Post-clearance Inspection; the chief of the post-clearance inspectorate.

3. The objects of verification are relevant state authorities, organizations, and individuals.

4. Verification may be carried out in the form of written request for written answers, or sending personnel to work with the objects of verification with a letter of introduction of the verification requester. The verification result shall be recorded in writing. This record is the basis for considering the case.

5. For direct verification, the unit may carry out the verification itself or request a capable customs authority to do it and report the result.

Article 144. Post-clearance inspection at the customs authority

1. Post-clearance inspection at the customs authority is an regular activity of the customs authority to inspect the customs dossiers, exported and imported goods that are granted clearance within 60 days from the clearance date.

2. Post-clearance inspection at the customs authority is based on risk management and the following information:

a) Questionable information from the database of the customs.

b) Signs of violations, suspicions informed by the Sub-departments of Customs and specialized units.

c) Information collected by the Sub-department of Post-Clearance Inspection about the signs of violations related to the exported or imported goods that are granted clearance.

3. Carrying out post-clearance inspection at the customs authority:

After the post-clearance inspection is carried out at the customs authority, the Director of the Customs Department, the Director of the Sub-department of Post-Clearance Inspection shall send the company a written notification of the contents and time of inspection, request the company to provide documents related to the customs dossier, exported or imported goods being inspected, provide relevant explanation, and physically inspect the goods that are granted clearance where necessary. The maximum inspection period is 02 working days. The inspection shall be recorded in writing.

The company shall comply with the request of the customs authority, send legal representative or authorized representative (hereinafter referred to as competent representative) to work with, provide explanation, customs dossier, and documents related to the goods that are granted clearance within 60 days to clarify the issues raised by the customs authority.

4. When the inspection at the customs authority is finished, the customs officer that carries out the post-clearance inspection shall report the scope, contents, and result of the inspection, suggest contents of the notification of inspection result, and necessary measures. in particular:

a) If the company provides explanation, information and documents proving that the export, import, the tax stated and paid are proper, the customs dossier is accepted.

If the company fails to prove that the tax stated is correct and concurs with the inspection result given by the customs authority, the company shall make additional tax statement and tax payment within 10 days from the day on which the inspection result is notified. If the company fails to make additional statement and tax payment as prescribed the customs authority shall make a decision to carry out an inspection on company premises.

c) If the company fails to prove that the tax stated is correct but does not concur with the inspection result given by the customs authority, the customs authority shall make a decision to carry out an inspection on company premises.

d) IF the company fails to provide explanation and documents, or refuses to provide, or delay providing documents at the request of the customs authority, the customs authority shall impose penalties for administrative violations as prescribed by law and update them on the database of the customs to inspect the next imported or exported shipment of the company, consider making a decision to impose tax as prescribed by law, or make a decision to carry out inspection on company premises if the basis for tax imposition is not ample.

The head of the units that carries out the inspection shall sign and issue the notification of inspection result to the company within 10 days from the end of the inspection in the cases mentioned in Point a and Point b Clause 4 of this Article. If an inspection must be carried out on company premises as prescribed in Point b, Point c and Point d Clause 4 of this Article, the customs authority shall makes a decision to carry out the inspection on company premises within 30 days from the end of the inspection at the customs authority.

5. The result of post-clearance inspection at the customs authority shall be processed in accordance with Chapter III of this Part.

Article 145. Post-clearance inspection on company premises

1. Cases of  post-clearance inspection on company premises:

a) Post-clearance inspection in the cases transferred by the customs authority according to Article 144 of this Circular.

b) Post-clearance inspection when finding signs of violations of the company.

c) Scheduled post-clearance inspection to assess the compliance with law of the company under a plan approved by the General Department of Customs at the request of a provincial Customs Department.

d) Thematic post-clearance inspection under the guidance of the head of a superior customs authority.

2. Period of post-clearance inspection on company premises:

a) The period of post-clearance inspection in Point c Clause 1 of this Article is 15 working days.

b) The period of post-clearance inspection in Points a, b, d Clause 1 of this Article is 05 working days.

c) Where necessary, the person that decides the inspection shall extend this period once. The extended period shall not exceed the length in Point a and Point b of this Clause. The reasons for extension and length of extension shall be written on the decision on extension.

3. Post-clearance inspection on company premises:

a) Perform preparatory tasks before issuing the decision under the procedure established by the General Department of Customs. The customs authority shall carry out a survey at the company before deciding the inspection where necessary.

b) Making and announcing the decision on post-clearance inspection on company premises:

b.1) The decision on post-clearance inspection on company premises is issued by the Director of the General Department of Customs, the Director of the provincial Customs Department, or the Director of the Sub-department of Post-Clearance Inspection;

b.2) in the cases mentioned in Point a, Point c, Point d Clause 1 of this Article, the decision on inspection shall be sent directly or by registered mail or fax to the company within 03 working days from the day on which it is signed, and at least 05 working days before the inspection is commenced.

Post-clearance inspection upon signs of violations mentioned in Point b of this Clause shall be carried out right after the decision is made without prior notice. In this case, the decision on inspection shall be given to the company directly during working hours.

c) If the company fails to comply with the decision on inspection, the customs authority shall impose administrative penalties, update information on the risk management system to take measures for inspecting the next exported and imported shipments of the company, and impose tax as prescribed.

d) Carrying out post-clearance inspection on company premises:

d.1) The chief of the inspectorate shall announce the decision on inspection.

d.2) The company shall appoint a competent representative and relevant personnel to provide documents on request, and directly work with the inspectorate.

d.3) The inspectorate shall carry out the inspection in accordance with scope, contents, and time on the decision.

d.4) The inspection contents shall be recorded in writing between the competent representative of the company or relevant personnel that directly works with the inspectorate during the inspection.

d.5) The inspectorate shall report the inspection result with the head of the inspecting unit and the person that decides the inspection.

4. Conclusion about post-clearance inspection on company premises:

a) Within 03 working days from the end of the inspection, the chief of the inspectorate shall make and send a draft conclusion to the company and the head of the inspecting unit.

b) Within 03 working days from the day on which the draft conclusion is received, the company shall finish providing explanation (enclosed with supporting documents or a written request for direct meeting with the head of the inspecting unit) if the company has not concurred with the draft conclusion.

If the company fails to provide a written explanation by the aforesaid deadline, the company is considered in agreement with the draft conclusion.

c) Within 03 working days from the deadline for providing explanation, the head of the inspecting unit shall:

c.1) Examine the explanation of the company or discuss with the competent representative of the company to clarity questionable issues. The discussion shall be recorded in writing as the basis for considering and issuing the official conclusion.

c.2) After this period, the head of the inspecting unit shall sign and issue the official conclusion about the post-clearance inspection on company premises.

d) If the case is complicated and beyond the competence of the customs authority, the conclusion shall be issued after having opinions of specialized agencies.

5. The result of post-clearance inspection on company premises shall be processed in accordance with Chapter III of this Part.

Article 146. Tasks and entitlements of the chief of the inspectorate

The chief of the inspectorate shall perform some tasks under the duty of the inspectorate, in particular:

1. Organize, assign jobs to members of the inspectorate in accordance with the scope, contents, and time in the decision on post-clearance inspection;

2. Request provision of information, written reports, explanation for the issues related to the inspection contents; carry out physical examination (where necessary);

3. Request relevant state authorities, organizations and individuals to provide information, evidence, and documents related to the case and the goods during the inspection;

4. Sign or appoint members in the inspectorate to sign the inspection records during the inspection.

5. Report the inspection results and draft conclusion (after seeking opinions of members in the inspectorate) and take responsibility for the accuracy, truthfulness and objectivity of the report; suggest necessary measures for the head of the unit to sign an official conclusion.

6. Other entitlements prescribed by law.

Article 147. Management and work allocation of during post-clearance inspection on company premises

1. Management of post-clearance inspection:

a) The General Department of Customs shall manage, direct, and inspect the post-clearance inspection nationwide; examine plans for scheduled and thematic post-clearance inspection; appoint units to carry out post-clearance inspection on company premises beyond their management.

b) Provincial Customs Departments shall management, direct and inspect post-clearance inspection within their locality.

2. Work allocation, decision and organization of post-clearance inspection on company premises:

a) The Director of the General Department of Customs shall decide and organize post-clearance inspection on company premises nationwide in the following cases:

a.1) The issues related to the implementation of major policies, the forms and articles facing high risk;

a.2) The company that has undergone a post-clearance inspection shows signs of violations that need another post-clearance inspection;

a.4) The issues on which the local governments do not agree;

a.5) Major companies that engage in export and import at various localities;

a.6) Thematic inspections;

a.7) Other cases approved by the Director of the General Department of Customs;

b) Directors of the provincial Customs Departments shall decide and organize scheduled and thematic post-clearance inspections on company premises.

c) Directors of Sub-departments of Post-Clearance Inspection shall decide and carry out post-clearance inspection on company premises within the assigned localities when signs of violations are found.

If the company is outside the assigned locality, the Customs Department shall request the General Department of Customs to assign a unit to carry out inspection.

Chapter II

TAX INSPECTION

Article 148. Tax inspection principles

Tax inspection shall be carried out in accordance with the Law on Tax administration and legislation on inspection.

Article 149. Purposes of tax inspection

Tax inspection is to find weaknesses in the management mechanism, policies, legislation on customs and taxation on exported and imported goods request competent authorities to take necessary measures; prevent, discover and penalize violations against legislation on taxation and customs.

Article 150. Inspected entities

Inspected entities are the agencies, organizations, and individuals in terms of compliance with legislation on customs, taxation, and other duties of exported and imported goods.

Article 151. Contents of tax inspection

1. Tax inspection contents are specified in Article 13 of the Government's Decree No. 82/2012/NĐ-CP dated October 09, 2012 on organization and operation of financial inspection.

2. During the inspection, the inspectorate must comply with the requirements, contents and time limit on the decision on inspection.  If the contents of the decision on inspection must be changed, the change must comply with legislation on inspection.

Article 152. Tasks and entitlements of the chief and members of the inspectorate

During the tax inspection, the chief Article 152. Tasks and entitlements of the chief and members of the inspectorate

Article 153. Cases of tax inspection

The customs authority shall carry out a tax inspection in the cases mentioned in Article 81 of the Law on Tax administration. The cases of tax inspection are specified in Clause 2 Article 81 of the Law on Tax administration, particularly when following signs of violations against the legislation on taxation are found:

1. Violations of legislation on taxation are recommitted;

2. Violations are committed in multiple localities;

3. The violations involve multiple organizations and individuals (the customs authority suspects that the taxpayer collaborates with many organizations and individuals to avoid tax);

4. Signs of tax evasion;

5. Signs of disposal of documents and evidence to avoid tax during the post-clearance inspection on company premises are found;

6. Signs of new tax offences are found after the customs authority finishes the post-clearance inspection on company premises;

7. The case is complicated and serious such as: the amount of tax avoided is tremendous, the taxpayer uses illegal or forged documents to make tax statements.

Article 154. The power to decide tax inspection

Tax inspection shall be decided by the Director of the General Department of Customs and Directors of Customs Departments.

Article 155. Collection of information about the inspected entity

1. The information being the basis for deciding inspection must be specific and directly related to the objects and the case.

2. Sources of information:

a) Information collected from official sources of the customs (database system about the taxpayer, documents, exported and imported goods; dossier examination result, post-clearance inspection result, signs of violations informed by customs units, etc.).

b) Information collected outside the customs sector (from other agencies and units related to export and imports such as tax authorities, banks, couriers, insurers, verifiers, company associations, feedbacks from television and radio, complaints and denunciations filed by other organizations and individuals).

c) Other information collected by the post-clearance inspection and smuggling prevention forces (from informants, international cooperation, and other sources).

Article 156. Making reports and inspection plans

1. Analyze the information collected, make a report with the following contents:

a) The overall condition of the company, its export and import (primary exported and imported goods, quantity of customs declarations, business form, export and import turnover, tax incurred, fulfillment of tax obligation, compliance with law);

b) Assessment of significant problems, signs of violations against legislation on taxation, nature and scale of risk to revenue;

c) Suggestion of inspection contents and plan, specifying the foci, the organizations and individuals that need inspecting and verifying.

2. Make an inspection plan with the following contents:

a) Purposes and requirements of the inspection;

b) Inspected entities;

c) Scope of inspection;

d) Contents of inspection;

dd) Intended time of inspection.

The inspection plan shall specify necessary tasks, methods, locations, time of commencement and time of completion, personnel, and tasks of members of the inspectorate.

If the inspection plan must be changed during the inspection, the chief of the inspectorate shall send a written request to the person that decides the inspection for permission. The written request for permission to change the inspection plan must specify the reasons, changed contents, and other contents (if any); If the persons that decides the inspection makes a written approval of the change, the chief of the inspectorate shall comply with such approval.

3. The inspection plan of the Customs Department shall be sent to the General Department of Customs for cooperation among the units.

Article 157. The inspectorate

A inspectorate consists of a chief and members. A deputy chief may be appointed to assists the chief where necessary, and is responsible to the chief for his tasks.

Article 158. Time limit for inspection

1. An inspection carried out by the General Department of Customs shall last no more than 45 days from the day on which the decision on inspection is announced. This time limit may be extended in complicated cases, but not more than 70 days.

2. An inspection carried out by a Customs Department shall last no more than 30 days from the day on which the decision on inspection is announced. This time limit may be extended in complicated cases, but not more than 45 days.

Article 159. Decision on inspection

1. A decision in inspection shall contain:

a) The legal basis for inspection;

b) The objects, contents, scope, and purposes of the inspection;

c) Time limit of the inspection;

d) The chief and members of the inspectorate.

2. The decision on inspection must be sent directly or by registered mail to the inspected entity within 03 working days, except for surprise inspection.

3. Within 15 days from the day on which the decision in inspection is signed, the chief of the inspectorate shall announce the decision on inspection to the inspected entity.

If the company fails to comply with the decision on inspection, the chief or members of the inspectorate shall impose administrative penalties or request a competent person to impose penalties as prescribed by law.

Article 160. Carrying out the inspection

During the inspection, the inspectorate shall perform the following tasks:

1. Announce the decision on inspection:

a) The chief of the inspectorate shall introduce its members, read the decision on inspection out loud, explain the purposes, requirements, and contents of the inspection, announce the work schedules and other tasks related to the inspection.  If the tax inspection also involves the subsidiaries, branches, or affiliates, the chief of the inspectorate shall provides the list, time, inspection contents, rights and obligations of parties for the inspected entity to prepare.

b) Inform the inspection plan and request the inspected entity to provide documents related to the inspected operations;

c) Request the representative of the inspected entity to report the overall condition of the company in terms of its business line, organizational structure, functions, tasks, and accounting methods of its subsidiaries, branches, or affiliates; methods of business organization, accounting standards, fiscal year; quantity of employees, wages; its partners (if any).

d) The announcement of the decision on inspection must be recorded in writing.

2. Receive accounting documents and financial statements (hereinafter referred to as documents) related to the exported or imported goods that are granted clearance. If such documents are stored in computers or other storage devices, such devices must be given to the inspectorate. The inspectorate shall check, preserve, and use documents properly without losing any of them. If the status quo of documents must be protected, the chief of the inspectorate shall decide to seal part or all of the documents. The documents shall be sealed and unsealed in accordance with law.

3. Carry out a detailed inspection and collect evidence

Inspection contents:

a) Inspect the adequacy, legitimacy, validity, consistency, accuracy, and truthfulness of the customs dossier kept by the company; compare it with the customs dossier kept by the customs authority;

b) Inspect the accounting documents, financial statement and other documents related to the inspected operations;

c) Inspect the company’s compliance with legislation on taxation, tax administration, and relevant regulations;

d) Inspect the production line, machinery, equipment, raw materials related to the manufacture of exported and imported products if possible; inspect imported goods or goods that are made of imported goods;

dd) Record the violations found during the inspection. Take the measures mentioned in Articles 89 to 91 of the Law on Tax administration if tax evasion is discovered.

4. Fortify evidence and legal basis, including:

a) Request the inspected entity to provide explanation:

The chief or member of the inspectorate shall request the company to provide explanation for unclear and unconcluded issues. If the written explanation is not clear, a consultation shall be held;

The consultation must be recorded in writing, and may be recorded as video or audio if necessary.

b) Verification

b.1) If the evidence and explanation provided by the company are not clear and need verifying, they shall be verified by relevant or capable organizations and individuals (hereinafter referred to as verifier). The verification result shall be recorded in writing, enclosed with sufficient supporting documents. The verification record is a basis for taking the next steps.

b.2) The chief of the inspectorate must provide sufficient information about the verification and necessary documents and give the verifier enough time to prepare.

c) Requesting professional examination

If the issues is complicated that need professional examination beyond the capacity of the inspectorate, the chief of the inspectorate shall make a decision to request professional examination The request for professional examination must comply with law.

5. After the issues are clarified, the inspectorate shall complete the documents, supplement information and sign the work records with the inspected entity.

The inspection dossier is the original documents for making inspection records, including:

a) Records on inspection results, work records;

b) Documents and reports made by the company at the request of inspectorate;

c) The manifest of documents and information made by the inspectorate and the company;

d) Photocopies of relevant documents;

dd) Written explanations;

e) Verification results;

6. Penalties for administrative violations

If the company fails to comply with the decision on inspection, the chief or members of the inspectorate shall impose administrative penalties or request a competent person to impose penalties as prescribed by law.

7. Transferring documents:

When the inspection is finished, every member of the inspectorate shall:

a) Transfer the work records, certifications of information, and all documents collected to the chief of the inspectorate; the documents shall be bound and numbered; summarize the case, suggest conclusion and necessary measures, specifying the basis for such suggestions;

b) Return the unnecessary documents to the company; keep the documents necessary for the next steps. The return of documents shall be recorded in writing.

Article 161. Inspection record

1. When the inspection is finished, the electronic information shall draft an inspection record. Before the inspection record is officially signed with the inspected entity, the chief of the inspectorate shall hold a meeting with the inspectorate to pass the inspection record or seek opinions from members of the inspectorate.

The inspection records shall be made and signed within 05 working days from the end of the inspection.

2. The inspection record must specify the result of each inspected operations, violations, and bases for the conclusions. In particular:

a) The beginning: legal basis for making the record;

b) The body: the inspected operations, comparison of the inspection result and the statements, reports provided by the taxpayer; explanation, evidence;

c) Conclusion: the inspected operations, seriousness of violations pursuant to cited laws; necessary measures that are taken, suggested measures.

3. Every page of the inspection record must bear the signatures of the arbitration center and the taxpayer (or the legal representative of the taxpayer) and the seal of the taxpayer (if any).  The agreements and disagreements between the inspectorate and taxpayers must be written in the inspection record.

4. The inspected entity has the right to receive the inspection record, request explanation, and other rights mentioned in Clause 2 Article 86 of the Law on Tax administration.

5. If the time limit for inspection must be extended, the chief of the inspectorate shall request the person that decides the inspection to extend the time limit.

Article 162. Reporting inspection results and drafting inspection conclusion

1. Within 15 days from the end of the inspection, the chief of the inspectorate shall make a report on the inspection result, draft a conclusion and send them to the person that decides the inspection, unless result of professional examination necessary for conclusion is not available. The report on inspection result shall have the following information:

a) Specific report on each inspected aspect;

b) Nature and severity of the offences, reasons, responsibilities of the offenders (if any);

c) Disagreements between members and the chief of the inspectorate over the report on inspection result (if any);

d) Measures that are taken, suggested measures;

dd) The laws being basis for determining the nature and severity of the offences, suggested measures.

2. While making the report and drafting the conclusion, the chief of the inspectorate may consult with organizations concerned about the obstructions in order to ensure the accuracy and objectivity of the conclusion.

3. The report on inspection result (signed by the chief) shall reflect the tasks that have been done, the tasks that have not been done, or unplanned operations reasons, dissenting opinions of the company, suggested policies. The conclusion of each aspect must specify the event, bases, reasons, responsibility, and measures.

4. The report on inspection result and draft conclusion submitted to the person that decides the inspection must include written opinions of members of the inspectorate. The opinion must specify the agreement or disagreement on the report, draft conclusion of the chief about the member's tasks and others' tasks.  If opinions of members on the inspection result report and draft conclusion are different, the chief of the inspectorate shall make a decision and take responsibility for such decision.

Article 163. Inspection conclusion

1. Within 15 days from the receipt of the inspection result report, the person that decides the tax inspection shall make an inspection conclusion, unless professional opinions of competent agencies are not available yet. The conclusion shall have the following information:

a) Assessment of inspected entity’s compliance with legislation on taxation;

b) Conclusion about inspected aspects;

c) Nature and severity of the offences, reasons, responsibilities of the offenders (if any);

d) Impose penalties or request competent persons to impose administrative penalties as prescribed by law.

2. While drawing the conclusion, the person that decides the inspection is entitled to request the chief and members of the inspectorate to make reports, and request the inspected entities to provide explanation to clarify the issues necessary for drawing conclusion.  The person that decides the inspection shall request the inspectorate to carry out additional inspection to clarify some issues where necessary. Additional inspection results shall be reported in writing and are the basis for drawing conclusion.

3. The inspection conclusion shall be sent as follows:

a) Where the inspection is carried out by the General Department of Customs, the conclusion shall be sent to the Inspectorate of the Ministry of Finance, the inspected entities, the head of its superior agency (if any), relevant organizations and individuals;

B) Where the inspection is carried out by a Customs Department, the conclusion shall be sent to the General Department of Customs, the inspected entities, the head of its superior agency (if any), relevant organizations and individuals;

4. If tax evasion that constitutes a criminal offence is discovered during tax inspection, the customs authority shall transfers documents to a competent authority for investigation in accordance with legislation on criminal proceedings within 10 working days from the discovery. The customs authority shall cooperate with investigation agencies during investigation into tax offences in accordance with law.

Article 164. Rights and obligations of inspected entities

Inspected entities have the rights and obligations mentioned in Article 86 of the Law on Tax administration.

Chapter III

IMPLEMENTATION OF POST-CLEARANCE INSPECTION CONCLUSION AND TAX INSPECTION CONCLUSION

Article 165. Tasks that must be done after having the post-clearance inspection conclusion and tax inspection conclusion

After having the post-clearance inspection conclusion and tax inspection conclusion, the following tasks must be done:

1. Issue a decision on tax imposition (if any).

2. Issue a decision on administrative penalties (if any); monitor and compel the implementation of such decision in accordance with law.  3. If tax evasion that constitutes a criminal offence is discovered, Clause 2 Article 75 of the Law on Tax administration and legislation on criminal proceedings shall apply.

4. Update information about tax inspection result on the database system to serve further management.

5. Request competent authorities to make amendments or promulgate legislative documents to prevent violations.

6. Collect tax and urge companies to pay tax and late payment interest (if any) under decision on tax imposition in accordance with law.

7. Monitor and update data on accounting programs; make decision and compel companies to pay tax in accordance with law.

8. Report tax collection result to the person that issues the decision on tax imposition.

Article 166. Work allocation

1. For post-clearance inspection:

a) Where the decision on post-clearance inspection is signed and issued by the General Department of Customs:

a.1) The Director of the General Department of Customs shall implement Clause 1 Article 165 of this Circular.

a.2) The Director of the Post-clearance Inspection Department shall do the tasks mentioned in Clauses 2 to 8 Article 165 of this Circular.

b) Where the decision on post-clearance inspection is signed by the Director of a Customs Department, the Director of the Customs Department shall directly do or appoint the Director of a Sub-department of Post-Clearance Inspection to do all tasks in Article 165 of this Circular.

b) Where the post-clearance inspection is decided and carried out by a Sub-department of Post-Clearance Inspection, the Director of the Sub-department of Post-Clearance Inspection shall do all tasks in Article 165 of this Circular.

2. For tax inspection:

a) Where tax inspection is carried out by the General Department of Customs:

a.1) The Director of the General Department of Customs shall implement Clause 1 Article 165 of this Circular.

a.2) The unit affiliated to the General Department that is assigned to carry out tax inspection shall perform the following tasks:

a.2.1) The tasks mentioned in Clause 3 and Clause 5 Article 165 of this Circular;

a.2.2) Do or request a competent person to do the tasks mentioned in Clause 2 Article 165 of this Circular.

After the Director of the General Department of Customs issues a decision on tax imposition, this unit shall:

a.2.3) Send a decision on tax imposition to every Customs Department where goods are exported or imported, enclosed with the list of declarations subject to tax and imposed tax for Customs Departments to collect tax as prescribed in Clause 6 and Clause 7 Article 165 of this Circular;

a.2.4) Supervise Customs Departments collecting tax under the decision on tax imposition issued by the Director of the General Department of Customs;

a.2.5) Cooperate with the Customs Department in resolving the difficulties related to the implementation of the decision on tax imposition;

a.3. The Customs Department where goods are exported or imported shall instruct the Sub-department of Customs to do the tasks in Clause 4, Clause 6, Clause 7 and Clause 8 Article 165 of this Circular.

b) Where tax inspection is decided and carried out by a Customs Department, the Customs Department shall do all the tasks mentioned in Article 165 of this Circular.

Part VII

IMPLEMENTATION

Article 167. Responsibility for the implementation

1. Based on this Circular, the Director of the General Department of Customs shall establish customs procedures, instruct customs units to follow them, ensure both continuity of export/import and effective customs management.

2. Competent customs authorities shall carry out customs procedure, customs supervision, inspection; consider and grant tax exemption, tax reduction, tax refund, tax cancellation; settle overpaid tax, late payment interest and fines; extend deadline for paying tax, consider allowing tax payment in instalments, prior determination of HS numbers, prior determination of customs value, prior determination of origins, certification of tax obligation fulfillment, cancel tax, impose tax, tax deadline, and do other tax administration tasks in accordance with effective regulations and this Circular. Customs authorities, declarants, taxpayers shall report the difficulties that arise during the implementation to the Ministry of Finance (the General Department of Customs) for consideration and guidance on a case-by-case basis.

Article 168. Effect

1. This Circular takes effect on November 01, 2013.

Effective guidance of the Ministry of Finance shall apply to the declarations registered from July 01, 2013 that need to undergo the procedure in this Circular until this Circular takes effect ;

For the customs procedures for some forms of export and import that are prescribed in the Circular No. 196/2012/TT-BTC and amended in this Circular, this Circular shall apply.

The Circular No. 194/2010/TT-BTC dated December 06, 2010, the Circular No. 92/2010/TT-BTC dated June 17, 2010, the Circular No. 106/2005/TT-BTC dated December 05, 2005, the Circular No. 128/2010/TT-BTC dated August 26, 2001, the Circular No. 01/2012/TT-BTC dated January 03, 2012; Section 2 Chapter II and Chapter III of the Circular No. 49/2010/TT-BTC dated April 12, 2010, Point c Clause 3 Article 2 of the Circular No. 193/2012/TT-BTC dated November 15, 2012; regulations on tax deadline Clause 2 Article 4, Clause 1 Article 11, Point 1.2.5.4 and Point 1.2.6 Clause 1 Article 14 of the Circular No. 205/2010/TT-BTC dated December 15, 2010; regulations on deadline for paying tax on exported crude oil in Clause 2 Article 10 of the Circular No. 32/2009/TT-BTC dated February 19, 2009; Article 12 of the Circular No. 155/2011/TT-BTC dated November 11, 2011, guidance on customs procedure, customs supervision, customs inspection; export tax, import tax, and tax administration applicable to exported and imported goods that are promulgated by the Ministry of Finance before this Circular take effect and are in contravention of this Circular, are annulled.

2. The regulations on tax administration in the Law on the amendments to the Law on Tax administration take effect when this law takes effect (July 1, 2013).

If the taxpayer pays tax and late payment interest on the customs declarations that were registered before July 1, 2013 after July 1, 2013, Article 131 of this Circular shall apply.

3. If the relevant documents cited in this Circular are amended or superseded during the implementation, the new documents shall prevail.

 

 

PP THE MINISTER 
DEPUTY MINISTER





Do Hoang Anh Tuan

 

 

 

 


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Thuộc tính Văn bản pháp luật 128/2013/TT-BTC

Loại văn bảnThông tư
Số hiệu128/2013/TT-BTC
Cơ quan ban hành
Người ký
Ngày ban hành10/09/2013
Ngày hiệu lực01/11/2013
Ngày công báo...
Số công báo
Lĩnh vựcDoanh nghiệp, Thuế - Phí - Lệ Phí, Xuất nhập khẩu
Tình trạng hiệu lựcHết hiệu lực 01/04/2015
Cập nhật2 tuần trước
(05/01/2020)
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Lược đồ Circular 128/2013/TT-BTC on customs procedures customs supervision and inspection


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