Quyết định 3417/QD-TCHQ

DECISION

PROMULGATING THE PROCEDURE FOR CUSTOMS CLEARANCE, INSPECTION AND SUPERVISION OF GOODS THAT FOREIGNERS AND VIETNAMESE EXPATRIATES CARRY THROUGH VAT-REFUND EXIT CHECKPOINTS

THE DIRECTOR OF THE GENERAL DEPARTMENT OF VIETNAM CUSTOMS

Pursuant to the Law on Value-added Tax No. 13/2008/QH12 dated June 3, 2008; the Law on Value-added Tax No. 31/2013/QH13 dated June 19, 2013 on amendments and supplements to several articles of the Law on Value-added Tax and documents providing guidance on implementation of these Laws;

Pursuant to the Law on Customs No. 29/2001/QH10 dated June 29, 2001; the Law on Amendments and Supplements to several articles of the Law on Customs No. 42/2005/QH11 dated June 14, 2005; the Law on Customs No. 54/2014/QH13 dated June 23, 2014, and other documents providing guidance on implementation of these Laws;

Pursuant to the Law on Tax Administration No. 78/2006/QH11 dated November 29, 2006; the Law on Amendments and Supplements to several articles of the Law on Tax Administration No. 21/2012/QH13 dated November 20, 2012 and other documents providing guidance on implementation of these Laws;

Pursuant to the Prime Minister’s Decision No. 02/2010/QD-TTg dated January 15, 2010 on defining the functions, tasks, powers and organizational structure of the General Department of Vietnam Customs affiliated to the Ministry of Finance;

Pursuant to the Circular No. 72/2014/TT-BTC of the Minister of Finance dated May 30, 2014 on stipulating the VAT refund on goods that foreigners and Vietnamese expatriates carry through exit checkpoints;

After considering the request of the Director of the General Department of Vietnam Customs

HEREBY DECIDES

Article 1. This Decision encloses the procedure for customs clearance, inspection and supervision of goods that foreigners and Vietnamese expatriates carry through VAT-refund exit checkpoints.

Article 2. This Decision shall enter into effect from November 15, 2014. The Decision No. 1214/QD-TCHQ of the Director of the General Department of Vietnam Customs dated June 15, 2012 on promulgating the  procedure for customs clearance, customs inspection and supervision of goods bought in Vietnam and carried through exit checkpoints of Noi Bai and Tan Son Nhat International Airport, and the Decision No. 1638/QD-TCHQ dated July 23, 2012 on making amendments to the Flowchart 3 issued together with the Decision No. 1214/QD-TCHQ of the Director of the General Department of Vietnam Customs dated June 15, 2012, shall be abolished. 

Article 3. The Director of the Customs Duty Department, the Director of the Customs Supervision and Administration Department, the Director of the Customs Department at the places where customs checkpoints in charge of VAT refunds to foreigners are located, and the head of relevant affiliates of the General Department of Vietnam Customs, shall be responsible for managing the implementation of this Decision./.

PROCEDURE

CUSTOMS CLEARANCE, INSPECTION AND SUPERVISION OF GOODS THAT FOREIGNERS AND VIETNAMESE EXPATRIATES CARRY THROUGH VAT-REFUND EXIT CHECKPOINTS
(Issued together with the Decision No. 3417/QD-TCHQ of the Director of the General Department of Vietnam Customs dated November 10, 2014)  

Section 1: GENERAL PROVISIONS

Article 1. Scope of application, principles of implementation

1. This procedure provides steps that customs authorities are required to follow to carry out the customs clearance, inspection and supervision of documents and goods that foreigners and Vietnamese expatriates (hereinafter referred to as overseas passengers) have bought in Vietnam and are carrying through VAT refund exit checkpoints at international airports and seaports (hereinafter referred to as VAT-refund customs checkpoints) under the provisions of the Circular No. 72/2014/TT-BTC of the Minister of Finance dated May 30, 2014 on stipulating the VAT refund on goods that overseas persons carry through exit checkpoints (hereinafter referred to as the Circular No. 72/2014/TT-BTC)      

2. When carrying out customs inspection and supervision of tax refund applications and goods that overseas passengers have bought in Vietnam and are carrying through tax refund customs checkpoints, customs officers are required to consult the Circular No. 72/2014/TT-BTC relevant laws and regulations stated in this procedure.

Article 2. Venue for customs inspection of tax refund declarations and goods, and customs supervision

1. Customs authorities shall carry out customs inspection of tax refund declarations and goods of overseas passengers at the following venues:

a. International airport:

a1. Noi Bai and Tan Son Nhat International Airport:

- As for invoices and tax returns only declaring checked luggage, customs authorities shall carry out customs inspection of tax refund declarations and goods at the counter for examination of invoices, tax refund claims and goods prior to check in (hereinafter referred to as the inspection counter prior to check in); 

- As for invoices and tax returns only declaring hand luggage, customs authorities shall carry out customs inspection of tax refund declarations and goods at the counter for examination of invoices, tax refund claims and goods after immigration clearance (hereinafter referred to as the inspection counter after immigration clearance);

- As for invoices and tax returns declaring both checked and hand luggage, customs authorities shall carry out:

+ Checking of tax refund declarations and checked luggage at the inspection counter prior to check in.

+ Checking of hand luggage at the inspection counter after immigration clearance.

a2. Other international airport:

Customs authorities shall carry out customs inspection of tax refund declarations and goods at the counter for examination of invoices, tax refund claims and goods prior to check in.

b. International seaport:

Customs authorities shall carry out customs inspection of tax refund declarations and goods at the counter for examination of invoices, tax refund claims and goods inside of the tax refund area (hereinafter referred to as the inspection counter of custom authority).

2. Customs authorities shall be responsible for installing cameras, equipment and machinery items, and appointing their staff members to supervise goods at all stages from the inspection counter prior to check in to the flight check-in counter and the security checkpoint at an international airport (applicable to those with hand luggage), and from the inspection counter of customs authorities to the check-in counter to get aboard ships in order to ensure that checked-in or carry-on goods of overseas passengers which have been already inspected by customs authorities and on which customs authorities have agreed tax refunds at the inspection counter of customs authorities or the inspection counter prior to check in have been aboard aircrafts or ships without being lost and smuggled back into the domestic market.

Article 3. Tax refund estimation

1. At Noi Bai and Tan Son Nhat International Airport, customs authorities shall calculate the actual amount of tax refunds to overseas passengers at the inspection counter after immigration clearance.

2. At other international airports, customs authorities shall calculate the actual amount of tax refunds to overseas passengers at the inspection counter prior to check in.

3. At international seaports, customs authorities shall calculate the actual amount of tax refunds to overseas passengers at the inspection counter of customs authorities.

Section 2: SPECIFIC PROVISIONS

A. PROCEDURE FOR CUSTOMS CLEARANCE, INSPECTION AND SUPERVISION OF GOODS THAT FOREIGNERS AND VIETNAMESE EXPATRIATES CARRY THROUGH EXIT CHECKPOINTS AT NOI BAI AND TAN SON NHAT INTERNATIONAL AIRPORT

Article 4. Checking of tax refund declarations and goods at the inspection counter prior to check in, and supervision of goods.

Step 1: Checking tax refund declarations at the inspection counter prior to check in

Once carrying out customs inspection of tax refund declarations, customs officers are required to check the following contents:

1. Passports, entry and exit documents:

- Passports, entry and exit documents issued abroad and still valid;

- Foreign or Vietnamese expatriate nationals stated on passports.

2. Invoices and tax refund declarations:

a) Invoices and tax refund declarations are invoices which are issued according to the form recommended in the Appendix No.3 of the Circular No. 72/2014/TT-BTC by tax-refundable goods trading companies, or stores or shops of companies, branches or agencies selling goods to tax-refundable goods trading companies specified in the List of companies permitted to trade tax-refundable goods released by the General Department of Vietnam Customs at the website address www.gdt.gov.vn.      

b) Invoices and tax refund declarations have been issued within a maximum of 60 (sixty) days prior to the date of overseas passengers’ exit.

c) Goods declared on Invoices and tax refund declarations are those:

- Subjected to value-added tax, and allowed to carry aboard aircrafts in accordance with laws on the airline security and safety;

- Not specified in the List of goods banned for export; the List of exported goods permitted under the export license granted by the Ministry of Trade (currently the Ministry of Industry and Trade) or the List of exported goods subjected to the specialized control in accordance with regulations laid down in the Government's Decree No. 187/2013/ND-CP dated November 20, 2013 and other documents providing guidance on this Decree. 

- Not specified as overseas passengers’ commodities on which VAT refunds are allowed under the provisions of the Circular No. 08/2003/TT-BTC of the Ministry of Finance dated January 15, 2003 on providing guidance on VAT refunds applicable to diplomatic missions, consular posts and representative offices of international organizations in Vietnam.

- Having their value declared on invoices and tax refund declarations after being bought at 01 (one) store within 01 (one) day (even if this value is the aggregated amount from multiple sales invoices issued by 01 store within 01 day) equal to a minimum level of more than VND 02 (two) millions.  

3. Comparing information provided on invoices and tax refund declarations such as full name, nationality, number of passport or entry and exit document, entry and exit date, etc.) with those declared on passports or entry and exit documents. All information must be identical.

In the event that, on invoices and tax refund declarations, sellers have entered the correct passport number, but incorrect or unclear full name and nationality of overseas passengers, and still conform to other requirements stated in the Circular No. 72/2014/TT-BTC these ones shall be considered to meet tax refund requirements (in accordance with the official dispatch No. 3689/TCT-KK of the General Department of Vietnam Customs dated August 29, 2014)  

4. In case one of contents subjected to customs inspection does not meet stated requirements, customs officers shall append a stamp to reject VAT refunds as suggested by the following form and their official stamp, signature and full name to the box “Inspector’s signature, official stamp and full name specified in Part B of the invoice and tax refund declaration", and give their explanation for such refusal to overseas passengers.

(Stamp size: 4 cm in width; 6 cm in length)

In case all of inspected contents are identical and compliant, the Step 2 is taken.

Step 2: Inspecting checked baggage on which VAT refunds are demanded

When carrying out customs inspection of checked baggage on which overseas passengers demand VAT refunds, customs officers must take the following actions:

1. Determine whether goods are subjected to physical verification in accordance with regulations enshrined in Article 3 of the Circular No. 72/2014/TT-BTC under the following circumstances:

a) Goods have unit prices (including VAT amount) declared on Invoices and tax refund declarations equal to or greater than VND 05 (five) millions/item;

b) Total value of goods on which VAT refunds are demanded (including VAT amount) declared on one or a number of invoices and tax refund declarations equal to or greater than VND 20 millions/turn/outbound person.

c) Other circumstances shall be handled under the decision of the Director of the Sub-department of Customs at Noi Bai and Tan Son Nhat International Airport.

2. Request overseas passengers to present goods subjected to the physical verification and carry out the physical verification of such goods by identifying name, quantity, type and brand name of goods that they carry.

Step 3: Handling the inspection result

In case overseas passengers carry an adequate and correct amount of goods declared on the invoices and tax refund declarations already presented, customs officers shall append a stamp to approve VAT refunds and their official stamp, signature and full name to the box "Inspector’s signature, official stamp and full name” specified in Part B of the invoice and tax refund declaration by using the following form.

(Stamp size: 4 cm in width; 6 cm in length)

2. In case the quantity of goods that overseas passengers carry is less than that specified in the Part A of the invoice and tax refund declaration, customs officers shall record the inspection result at the column of goods name and quantity in the Part B of the invoice and tax refund declaration as follows:

a) At the column of goods name: Customs officers do not describe goods name in the same manner as in the Part A of the invoice and tax refund declaration, but they have to enter the goods name into Part B of the invoice and tax refund declaration by numbering such goods as mentioned in Part A of the invoice and tax refund declaration;

b) At the goods quantity: Customs officers record the actual quantity of goods that overseas passengers carry in the row with numbered goods at the column of goods name.

Example: In Part A of the invoice and tax refund declaration include the followings:

On the assumption that, after considering declarations provided by overseas passengers and/or the inspection result, overseas passengers have been found that they do not carry B-brand watch (the No.2 in Part A of the invoice), and carry 10 palm-leaf conical hats (the No.6 in Part A of the invoice) and 01 Nokia cellphone (the No.4 in Part A of the invoice, customs officers shall enter into the column "Name of goods" and "Quantity" in Part B of the invoice as follows:

After finishing entering into the column of goods name and quantity in Part B of the invoice, customs officers shall append a stamp to approve VAT refunds by using the stamp format stipulated in point 1 of this step, and their official stamp, signature and full name to the box "Inspector’s signature, official stamp and full name” specified in Part B of the invoice and tax refund declaration.

3. In case overseas passengers do not carry all of goods declared on the invoice and tax refund declaration already presented (except for those goods not subjected to the physical verification), customs officers shall append a stamp to reject VAT refunds by using the stamp format stipulated in Clause 4 Step 1 Article 4 hereof, and their official stamp, signature and full name to the box "Inspector’s signature, official stamp and full name” specified in Part B of the invoice and tax refund declaration.

Step 4: Returning tax refund declarations, guiding overseas passengers to go through next procedure 

Customs officers at the inspection counter prior to check in shall take the following actions:

1. Return inspected passports, entry and exit documents, invoices and tax refunds and goods to overseas passengers;

2. Guide overseas passengers to take goods and invoices and tax refund declarations on which the stamp of tax refund approval has been appended to the goods delivery counter for the purpose of delivering their goods under the custody of the airline and contact the inspection counter after immigration clearance to claim the actual amount of VAT refund to overseas passengers.

Step 5: Supervising goods from the inspection counter prior to check in to the goods delivery counter and the security checkpoint (applicable to the case in which passengers carry their hand luggage)

1. Supervise goods from the inspection counter prior to check in to the goods delivery counter or carry-on luggage of departing overseas passengers by technical support (camera) or direct control of customs officers.

2. The customs supervision of goods from the counter prior to check in to the goods delivery counter and the security checkpoint serves the purpose of:

a) Monitoring transportation of luggage of overseas passengers which have been inspected by customs authorities and on which VAT refund has been approved from the inspection counter prior to check in to the goods delivery counter and the security checkpoint to enter into the immigration clearance area (applicable to the case in which passengers carry their hand luggage);

b) Finding out any suspicious sign and trade fraud of overseas passengers on time, and ensuring that inspected goods will exit along with overseas passengers and will not be smuggled back into the domestic market.

3. Customs officers shall be assigned to directly supervise or monitor goods at the camera system control center, and once detecting any suspicious sign of illegally transporting goods inspected by customs authorities and approved for VAT refunds at the inspection counter prior to check in, they shall be responsible for punctually reporting to the relevant leadership or mobile supervision unit and the division in charge of checking invoices and tax refund declarations in order to carry out direct inspection and prevent any violation on time.

Article 5. Inspection of tax refund declarations and goods, calculation of actual VAT refund amount, and update on database at the inspection counter after immigration clearance

Step 1: Checking tax refund declarations and goods at the inspection counter after immigration clearance

1. As for invoices and tax refund declarations only declaring hand luggage:

Checking tax refund declarations and goods at the inspection counter after immigration clearance for those only declaring hand luggage shall be conducted in the same manner as mentioned in step 1, 2 and 3 of the procedure for customs inspection of tax refund declarations and goods prior to check in under the provisions of Article 4 hereof, but the stamp template in use is the one appended by the inspection counter after immigration clearance according to the following regulations:

- The stamp template of tax refund rejection:

(Stamp size: 4 cm in width; 6 cm in length)

- The stamp template of tax refund approval:

(Stamp size: 4 cm in width; 6 cm in length)

2. As for invoices and tax refund declarations declaring both checked and hand luggage:

- Customs authorities shall not carry out customs inspection of goods and tax refund declarations declaring checked and hand luggage (already undergone the customs inspection at the inspection counter prior to check in).

- Customs inspection of hand luggage at the inspection counter after immigration clearance shall be similar to that stated in Step 2 Article 4 hereof. Entering the inspection result into the column of goods name and quantity in Part B of the invoice and tax refund declaration shall be similar to that stipulated in Clause 2.a and 2.b Step 3 Article 4 hereof.

Step 2. Calculating the actual VAT refund amount, and updating database at the inspection counter after immigration clearance

1. Calculating the actual amount of VAT refund to overseas passengers shall be carried out as follows:

- Based on the result of customs inspection of tax refund declarations and goods, calculate the actual amount of VAT refund to overseas passengers equal to 85% of the actual VAT amount imposed on goods that overseas passengers carry through exit checkpoints at the column “VAT refund amount” declared on the invoice and tax refund declaration.

- Enter the actual amount of VAT refund to overseas passengers into the column “VAT refund amount” into Part B of the invoice and tax refund declaration;

- Append signature, official stamp next to or underneath the actual amount of VAT refund to overseas passengers already entered into the column “VAT refund amount” in Part B of the invoice and tax refund declaration;

2. After finishing customs inspection and calculation of VAT amount, customs officers shall take the following actions:

- Return inspected passports, entry and exit documents, invoices and tax refund declarations and goods which have been checked and stamped for confirmation to overseas passengers.

- Guide them to contact the tax refund counter of the bank as a tax refund agent to receive their tax refund;

- Enter into the logbook or computers to keep an update of database of VAT refunds to overseas passengers by day/month/quarter/year according to the form given in the Appendix 4 of the Circular No. 72/2014/TT-BTC

Flowchart of inspection of tax refund declarations and goods, and customs supervision of goods, calculation of actual VAT refund amount stated in Article 4 and Article 5 shall conform to the Appendix issued together with this procedure (flowchart No. 1, 2 and 3).

B. PROCEDURE FOR CUSTOMS CLEARANCE, INSPECTION AND SUPERVISION OF GOODS THAT FOREIGNERS AND VIETNAMESE EXPATRIATES CARRY THROUGH EXIT CHECKPOINTS AT DA NANG AND CAM RANH INTERNATIONAL AIRPORT

Article 6. Inspection of tax refund declarations and goods, calculation of actual VAT refund amount, and update on database at the inspection counter prior to check in and supervision of goods

Step 1: Checking tax refund declarations at the inspection counter prior to check in: carried out in the same manner as mentioned in Step 1 Article 4 hereof.

In case one of contents subjected to customs inspection does not meet stated requirements, customs officers shall append a stamp to reject VAT refunds as suggested by the following form and their official stamp, signature and full name to the box “Inspector’s signature, official stamp and full name specified in Part B of the invoice and tax refund declaration", and give their explanation for such refusal to overseas passengers.

(Stamp size: 4 cm in width; 6 cm in length)

In case all of inspected contents are identical and compliant, the Step 2 is taken.

Step 2: Checking goods on which VAT refunds are demanded: carried out in the same manner as mentioned in Step 2 Article 4 hereof.

Step 3: handling the inspection result: carried out in the same manner as mentioned in Step 3 Article 4 hereof.

In case overseas passengers carry an adequate and correct amount of goods declared on the invoices and tax refund declarations already presented, customs officers shall append a stamp to approve VAT refunds and their official stamp, signature and full name to the box "Inspector’s signature, official stamp and full name” specified in Part B of the invoice and tax refund declaration by using the following form.

(Stamp size: 4 cm in width; 6 cm in length)

In case overseas passengers do not carry all of goods declared on the invoice and tax refund declaration already presented (except for those goods not subjected to the physical verification), customs officers shall append a stamp to reject VAT refunds by using the stamp format stipulated in Step 1 Article 4 hereof, and their official stamp, signature and full name to the box "Inspector’s signature, official stamp and full name” specified in Part B of the invoice and tax refund declaration.

Step 4: Calculating tax refund amount, returning tax refund declarations, guiding overseas passengers to go through procedures for delivering their goods under the custody of the airline and receiving tax refunds

Customs officers at the inspection counter prior to check in shall take the following actions:

- Calculate the actual amount of VAT refund to overseas passengers specifically as follows:

+ Based on the result of customs inspection of tax refund declarations and goods, calculate the actual amount of VAT refund to overseas passengers equal to 85% of the actual VAT amount imposed on goods that overseas passengers carry through exit checkpoints at the column “VAT refund amount” declared on the invoice and tax refund declaration.

+ Enter the actual amount of VAT refund to overseas passengers into the column “VAT refund amount” into Part B of the invoice and tax refund declaration;

+ Append signature, official stamp next to or underneath the actual amount of VAT refund to overseas passengers already entered into the column “VAT refund amount” in Part B of the invoice and tax refund declaration;

- Return inspected passports, entry and exit documents, invoices and tax refunds and goods to overseas passengers;

- Enter into the logbook or computers to keep an update of database of VAT refunds to overseas passengers by day/month/quarter/year according to the form given in the Appendix 4 of the Circular No. 72/2014/TT-BTC

Step 5: Supervising goods from the inspection counter prior to check in to the flight check-in counter and at the security checkpoint (applicable to the case in which passengers carry their hand luggage): carried out in the same manner as mentioned in Step 5 Article 4 hereof.

Flowchart of customs inspection of tax refund declarations and goods, and customs supervision of goods, calculation of actual VAT refund amount stated in Article 6 shall conform to the Appendix issued together with this procedure (flowchart No. 4).

C. PROCEDURE FOR CUSTOMS CLEARANCE, INSPECTION AND SUPERVISION OF GOODS THAT FOREIGNERS AND VIETNAMESE EXPATRIATES CARRY THROUGH EXIT CHECKPOINTS AT INTERNATIONAL SEAPORTS

Article 7. Circumstance under which exit procedures are implemented at tax refund checkpoints

Step 1: Checking tax refund declarations at the inspection counter of customs authority

Once carrying out customs inspection of tax refund declarations, customs officers are required to check the following contents:

1. Passport, entry and exit document and visit pass of passengers (if applicable):

- Passports, entry and exit documents issued abroad and still valid;

- Passenger’s visit pass issued by the border guard and still valid;

- Foreign or Vietnamese expatriate nationals stated on such passport or entry and exit document.

2. Invoices and tax refund declarations:

a) Invoices and tax refund declarations are invoices which are issued according to the form recommended in the Appendix No.3 of the Circular No. 72/2014/TT-BTC by tax-refundable goods trading companies, or stores or shops of companies, branches or agencies selling goods to tax-refundable goods trading companies specified in the List of companies permitted to trade tax-refundable goods released by the General Department of Vietnam Customs at the website address www.gdt.gov.vn.   

b) Invoices and tax refund declarations have been issued within a maximum of 60 (sixty) days prior to the date of overseas passengers’ exit.

c) Goods declared on Invoices and tax refund declarations are those:

- Belonging to BAT-paying entities stipulated by laws;

- Falling outside of the List of goods banned for export; the List of exported goods permitted under the export license granted by the Ministry of Trade (currently the Ministry of Industry and Trade) or the List of exported goods subjected to the specialized control in accordance with regulations laid down in the Government's Decree No. 187/2013/ND-CP dated November 20, 2013 and other documents providing guidance on this Decree.

- Not specified as overseas passengers’ commodities on which VAT refunds are allowed under the provisions of the Circular No. 08/2003/TT-BTC of the Ministry of Finance dated January 15, 2003 on providing guidance on VAT refunds applicable to diplomatic missions, consular posts and representative offices of international organizations in Vietnam.

- Having their value declared on invoices and tax refund declarations after being bought at 01 (one) store within 01 (one) day (even if this value is the aggregated amount from multiple sales invoices issued by 01 store within 01 day) equal to a minimum level of more than VND 02 (two) millions. 

3. Comparing information provided on invoices and tax refund declarations such as full name, nationality, number of passport or entry and exit document, entry and exit date, etc.) with those declared on passports or entry and exit documents, or the visit pass (if applicable). All information must be identical.

In the event that, on invoices and tax refund declarations, sellers have entered the correct passport number, but incorrect or unclear full name and nationality of overseas passengers, and still conform to other requirements stated in the Circular No. 72/2014/TT-BTC these ones shall be considered to conform to tax refund requirements (in accordance with the official dispatch No. 3689/TCT-KK of the General Department of Vietnam Customs dated August 29, 2014) 

4. In case one of contents subjected to customs inspection does not meet stated requirements, customs officers shall append a stamp to reject VAT refunds as suggested by the following form and their official stamp, signature and full name to the box “Inspector’s signature, official stamp and full name specified in Part B of the invoice and tax refund declaration", and give their explanation for such refusal to overseas passengers.

(Stamp size: 4 cm in width; 6 cm in length)

In case all of inspected contents are identical and compliant, the Step 2 is taken.

Step 2: Inspecting goods on which VAT refunds are demanded

When carrying out customs inspection of goods on which overseas passengers demand VAT refunds, customs officers must take the following actions:

1. Determine whether goods are subjected to physical verification in accordance with regulations enshrined in Article 3 of the Circular No. 72/2014/TT-BTC under the following circumstances:

a) Goods have unit prices (including VAT amount) declared on Invoices and tax refund declarations equal to or greater than VND 05 (five) millions/item;

b) Total value of goods on which VAT refunds are demanded (including VAT amount) declared on one or a number of invoices and tax refund declarations equal to or greater than VND 20 millions/turn/outbound person.

c) Under other circumstances, the decision of the Director of the Seaport Customs Sub-department shall be applied.

2. Request overseas passengers to present goods subjected to the physical verification and carry out the physical verification of such goods by identifying name, quantity, type and brand name of goods that they carry.

Step 3: Handling the inspection result

1. In case overseas passengers carry an adequate and correct amount of goods declared on the invoices and tax refund declarations already presented, customs officers shall append a stamp to approve VAT refunds and their official stamp, signature and full name to the box "Inspector’s signature, official stamp and full name” specified in Part B of the invoice and tax refund declaration by using the following form.

(Stamp size: 4 cm in width; 6 cm in length)

2. In case the quantity of goods that overseas passengers carry is less than that specified in the Part A of the invoice and tax refund declaration, customs officers shall record the inspection result at the column of goods name and quantity in the Part B of the invoice and tax refund declaration as follows:

a) At the column of goods name: Customs officers do not describe goods name in the same manner as in the Part A of the invoice and tax refund declaration, but they have to enter the goods name into Part B of the invoice and tax refund declaration by numbering such goods as mentioned in Part A of the invoice and tax refund declaration;

b) At the goods quantity: Customs officers record the actual quantity of goods that overseas passengers carry in the row with numbered goods at the column of goods name.

Example: In Part A of the invoice and tax refund declaration include the followings:

On the assumption that, after considering declarations provided by overseas passengers and/or the inspection result, overseas passengers have been found that they do not carry B-brand watch (the No.2 in Part A of the invoice), and carry 10 palm-leaf conical hats (the No.6 in Part A of the invoice) and 01 Nokia cellphone (the No.4 in Part A of the invoice, customs officers shall enter into the column "Name of goods" and "Quantity" in Part B of the invoice as follows:

After finishing entering into the column of goods name and quantity in Part B of the invoice, customs officers shall append a stamp to approve VAT refunds by using the stamp format stipulated in point 1 of this step, and their official stamp, signature and full name to the box "Inspector’s signature, official stamp and full name” specified in Part B of the invoice and tax refund declaration.

3. In case overseas passengers do not carry all of goods declared on the invoice and tax refund declaration already presented (except for those goods not subjected to the physical verification), customs officers shall append a stamp to reject VAT refunds by using the stamp format stipulated in Clause 4 Step 1 Article 4 Part C Section 2 hereof, and their official stamp, signature and full name to the box "Inspector’s signature, official stamp and full name” specified in Part B of the invoice and tax refund declaration.

Step 4: Calculating tax refund amount, returning tax refund declarations, guiding overseas passengers to go on next procedures for receiving tax refunds

Customs officers at the inspection counter of customs authorities shall take the following actions:

- Calculate the actual amount of VAT refund to overseas passengers specifically as follows:

+ Based on the result of customs inspection of tax refund declarations and goods, calculate the actual amount of VAT refund to overseas passengers equal to 85% of the actual VAT amount imposed on goods that overseas passengers carry through exit checkpoints at the column “VAT refund amount” declared on the invoice and tax refund declaration.

+ Enter the actual amount of VAT refund to overseas passengers into the column “VAT refund amount” into Part B of the invoice and tax refund declaration;

+ Append signature, official stamp next to or underneath the actual amount of VAT refund to overseas passengers already entered into the column “VAT refund amount” in Part B of the invoice and tax refund declaration;

- Return inspected passports, entry and exit documents, invoices and tax refunds and goods to overseas passengers;

- Enter into the logbook or computers to keep an update of database of VAT refunds to overseas passengers by day/month/quarter/year according to the form given in the Appendix 4 of the Circular No. 72/2014/TT-BTC

Step 5:  Supervising goods from the inspection counter of customs authority to the counter for check in aboard outgoing ships

1. Supervise goods from the inspection counter of customs authority to the security checkpoint for check in aboard outgoing ships by using technical support (camera) or direct monitoring of customs officers.

2. Supervising goods from the inspection counter of customs authority to the counter for check in aboard outgoing ships is aimed at:

a) Monitoring transportation of goods and luggage of overseas passengers which have been inspected by customs authorities and on which VAT refund has been approved from the inspection counter of customs authority to the counter for check in aboard outgoing ships;

b) Finding out any suspicious sign and trade fraud of overseas passengers on time, and ensuring that inspected goods will exit along with overseas passengers and will not be smuggled back into the domestic market.

3. Customs officers shall be assigned to carry out direct supervision or monitoring at the camera system control center (if any), and once detecting any suspicious sign of illegally transporting goods inspected by customs authorities and approved for VAT refunds at the inspection counter of customs authority, they shall be responsible for punctually reporting to the relevant leadership or mobile supervision unit and the division in charge of checking invoices and tax refund declarations in order to carry out direct inspection and prevent any violation on time.

Flowchart of customs inspection of tax refund declarations and goods, and customs supervision of goods, calculation of actual VAT refund amount stated in Article 7 shall conform to the Appendix issued together with this procedure (flowchart No. 5).

Article 8. Circumstance under which ships do not implement exit procedures at tax refund checkpoints but sail into other seaports

Customs authorities shall not approve VAT refunds on goods that overseas passengers bought in Vietnam in the event that the ship carrying these goods has not exited at the tax refund checkpoint and sailed into other checkpoints other than such tax refund checkpoint to exit.

Section 3: IMPLEMENTATION

Article 9. Responsibilities of the Customs Department at the checkpoint in charge of tax refund to overseas passengers

The Customs Department at cities or provinces where the checkpoint in charge of tax refund to overseas passengers is located shall assume the following responsibilities:

1. Provide guidance on and direct implementation of the Circular No. 72/2014/TT-BTC and provisions laid down in this procedure in accordance with legal regulations;

2. Carry out the biannual examination of how the Customs Subdepartment at international airport and seaport in charge of tax refunds to overseas passengers organizes the implementation of the Circular No. 72/2014/TT-BTC and provisions laid down in this procedure;

3. Send timely report and recommendations to deal with any difficulty in the course of implementing the Circular No. 72/2014/TT-BTC and this procedure to the General Department of Vietnam Customs.

Article 10. Responsibilities of the Customs Subdepartment at the checkpoint in charge of tax refund to overseas passengers

The Customs Subdepartment at the checkpoint in charge of tax refund to overseas passengers shall assume the following responsibilities:

1. Organize the implementation of the Circular No. 72/2014/TT-BTC and this procedure in accordance with legal regulations;

2. Appoint, organize and guide customs officers on duty to comply with the Circular No. 72/2014/TT-BTC and this procedure;

3. Provide assistance and instructions to overseas passengers to complete procedures for customs inspection of tax refund declarations and goods in a sufficient and timely manner and not to cause any discomfort for them;

4. Send timely report and recommendations to deal with any difficulty in the course of implementing the Circular No. 72/2014/TT-BTC and this procedure to the Customs Department as a direct management unit.

Article 11. Responsibilities of customs officers.

Customs officers charged with inspecting invoices and tax refund declarations and goods shall take the following responsibilities:

1. Comply with the Circular No. 72/2014/TT-BTC and this procedure;

2. Comply with assignments, directions and inspection requirements of the leadership;

3. Bear legal liability and be held accountable to superior-level management in the course of performing assigned duties stated in this procedure and relevant regulations;

4. Carry out the sufficient and correct implementation of regulations on code of conducts of customs officers and officials./.