Nghị định 100/2020/ND-CP

DECREE

ON DUTY-FREE BUSINESS

Pursuant to the Law on Government Organization dated June 19, 2015;

Pursuant to the Commerce Law dated June 14, 2005;

Pursuant to the Law on Foreign Trade Management dated June 12, 2017;

Pursuant to the Law on Export and Import Duties dated April 06, 2016;

Pursuant to the Law on Amendments to Some Articles of Law on Value-Added Tax, Law on Special Excise Duty and Law on Tax Administration dated April 06, 2016;

Pursuant to the Law on Value-Added Tax dated June 03, 2008; and Law on Amendments to Law on Value-Added Tax dated June 19, 2013;

Pursuant to the Law on Special Excise Duty dated November 14, 2008;

Pursuant to the Law on Amendment to Tax Laws dated November 26, 2014;

Pursuant to the Law on Customs dated June 23, 2014;

Pursuant to the Law on Investment dated November 26, 2014; and  Law on Amendments to Article 6 and List of Conditional Investments in Appendix 4 of Law on Investment dated November 22, 2016;

Pursuant to Law on Product and Goods Quality dated November 21, 2007;

Pursuant to the Law on Food Safety dated June 17, 2010;

Pursuant to the Law on Tax Administration dated June 13, 2019;

At the request of the Minister of Finance;

The Government hereby promulgates a Decree on duty-free business.

Chapter I

GENERAL PROVISIONS

Article 1. Scope

This Decree provides for duty-free business management policies; and customs procedures and customs supervision for duty-free business.

Article 2. Regulated entities

1. Persons exiting, transiting through and entering Vietnam.

2. Entities granted privileges and immunities in Vietnam.

3. Crew members working on vessels sailing international route.

4. Passengers on international flights to and from Vietnam.

5. Enterprises eligible for duty-free business in accordance with the law.

6. Customs authorities, customs officials.

7. Seaport, international civil airport and international railway station businesses.

8. Management boards of international land border checkpoint economic zones and management units of international land border checkpoints.

9. Organizations whose rights and obligations concern duty-free goods sale.

10. Other regulatory bodies cooperating in state management of duty-free business.

Chapter II

DUTY-FREE BUSINESS MANAGEMENT POLICIES

Article 3. Duty-free goods buyers and buying conditions

1. After completing exit/transit procedures, persons exiting/transiting through Vietnam, passengers on international flights departing from Vietnam or persons waiting to exit Vietnam may buy duty-free goods.

a) Persons exiting/transiting through Vietnam via international land border checkpoints; and border checkpoints at international railway stations, class 1 seaports and international civil airports may buy duty-free goods from duty-free shops in the international zone;

b) Any person waiting to exit Vietnam may buy duty-free goods from a duty-free shop away from port and shall receive their purchase at the pick-up counter located in the international zone of the international border checkpoint where they depart;

c) Foreign tourists travelling in groups by sea and holding a passport or document enabling international travel may buy duty-free goods at border checkpoints at class-1 seaports and from duty-free shops away from port. These tourists shall receive the duty-free goods purchased from a duty-free shop away from port at the pick-up counter located in the international zone of the border checkpoint at the class-1 seaport where they depart;

d) Besides the pick-up locations mentioned in this Clause, the buyers provided for in Points a, b and c herein (excluding persons buying duty-free goods on international flights departing from Vietnam) may receive their purchases in another country.

2. Passengers on international flights departing from Vietnam may buy duty-free goods on the aircraft making the flight. Passengers on international flights to Vietnam may buy duty-free goods on the aircraft making the flight.

3. Persons entering Vietnam may buy duty-free goods from duty-free shops located in the restricted area of an international civil airport immediately after completing their entry procedures and may not buy duty-free goods after leaving the restricted area of the international civil airport.

4. Entities granted privileges and immunities in Vietnam may buy duty-free goods from duty-free shops away from port. For purchases intended for organization use, the buyer shall present the quota book for duty-free goods. For purchases intended for personal use, the buyer shall present the quota book for duty-free goods and the identity card issued by the Ministry of Foreign Affairs or passport.

5. Crew members working on vessels sailing international route (including foreign vessels and Vietnamese vessels sailing international route) may buy duty-free goods from class-1 seaports and duty-free shops away from port for personal use and for daily living of the crew of the vessel while it is at anchor in a Vietnamese seaport and after it has left Vietnam’s territorial waters.

a) For duty-free goods purchased for personal use, the buyer shall present their passport or shore pass;

b) For duty-free goods purchased for daily living of the crew while the vessel is at anchor in a Vietnamese seaport, the captain or vessel representative shall provide a purchase order, including the vessel identification number and date of entry, and the crew list with the passport number of each crew member;

c) For duty-free goods purchased for daily living of the crew on the vessel’s next trip outside of Vietnam’s territorial waters, the captain or vessel representative shall provide a purchase order, including the vessel identification number and date of entry, and the crew list with the passport number of each crewmember. Purchased goods must be placed in the vessel’s storage for the customs authority of the location where the vessel departs to seal, confirm and supervise until the vessel departs.

Article 4. Tax policies for goods sold in duty-free shops

Tax policies for goods sold in duty-free shops and stored in duty-free goods warehouses shall comply with relevant regulations of laws on tax and tax administration.

Article 5. Specialized management of goods sold in duty-free shops

1. Import of tobacco products for duty-free business requires a license granted by the Ministry of Industry and Trade.

2. An application for the license includes:

a) Official dispatch regarding application for tobacco import for selling in duty-free shops made by the applicant using Form No. 03/CV in Appendix II enclosed therewith: 01 authentic copy;

b) Certificate of eligibility for duty-free business or business registration certificate or investment certificate: 01 copy. Certificate of eligibility for duty-free business for first-time applicants: 01 copy;

c) Report on tobacco import, inventory and selling from start of year to time of application with confirmation from the customs sub-department managing the duty-free shop/duty-free goods warehouse, which is made using Form No. 04/BCNKTKTL in Appendix II enclosed therewith: 01 authentic copy.

3. Application procedure

a) The applicant shall submit 01 application containing the components provided for in Clause 2 herein by post or directly to the Ministry of Industry and Trade;

b) Application processing duration

Within 10 working days (based on the arrival stamp of the Ministry of Industry and Trade) starting from the date of receipt of the valid application, the Ministry of Industry and Trade shall issue the tobacco import license to the applicant. If the application is rejected, the Ministry of Industry and Trade shall provide the reason for such rejection in writing.

If the application is incomplete, within 05 working days (based on the arrival stamp of the Ministry of Industry and Trade) starting from the date of receipt of the application, the Ministry of Industry and Trade shall request the applicant to complete the application (in writing, by fax, via email, via telephone, etc.).

4. Cigarettes imported for selling in duty-free shops must bear a health warning in Vietnamese or English on their packaging; tobacco sold to passengers entering Vietnam must bear a health warning in Vietnamese on their packaging in compliance with regulations of laws on prevention and control of tobacco’s harmful effects and the Framework Convention on Tobacco Control (FCTC).

5. Goods temporarily imported for selling in duty-free shops are not subject to inspection of product and goods quality and food safety and hygiene during temporary import procedures. These goods shall undergo inspection of product and goods quality and food safety and hygiene as prescribed by law.

6. Goods and products (temporarily imported, imported or domestically manufactured) containing cultural and recreational contents, literature and art on any kind of material may only be sold when they are permitted to be circulated in Vietnam by the competent culture authority and meet other requirements for goods quality as per the law.

7. Duty-free businesses shall take responsibility before the law for the quality and food safety and hygiene of their products.

8. In case inspection of product/goods quality or food safety and hygiene for goods sold in duty-free shops is otherwise provided for by a specialized management convention to which Vietnam is a signatory, such convention shall apply.

Article 6. Goods sold in duty-free shops

1. Goods that may be sold in duty-free shops include goods temporarily imported, goods from free trade zones and bonded warehouses; and domestically manufactured goods permitted to be traded in accordance with regulations of Vietnamese law.

Goods temporarily imported and goods from free trade zones and bonded warehouses that are sold in duty-free shops shall not be included in list of goods prohibited from import and list of goods subject to suspension of temporary import according to regulations of laws on foreign trade management.

Goods from domestic market permitted for sale under Vietnamese law and sold in duty-free shops shall not be included in list of goods prohibited from import and list of goods subject to suspension of temporary import. Goods subject to conditional export shall be sold in duty-free shops in compliance with conditions prescribed by law.

2. Goods from domestic market permitted for sale under Vietnamese law and sold in duty-free shops shall be subject to management and supervision by customs authorities based on list of goods delivered to duty-free shops/duty-free goods warehouses notified by the duty-free business.

3. Goods sold in duty-free shops shall be stored in duty-free shops/duty-free goods warehouses of duty-free businesses.

4. Time limit for storage of goods in duty-free shops is provided for in Point a Clause 2 Article 47 of the Law on Customs No. 54/2014/QH13 dated June 23, 2014.

5. Tobacco, cigarettes and alcohol sold in duty-free shops must bear the “VIET NAM DUTY NOT PAID” stamp issued by the Ministry of Finance. This stamp shall be affixed at locations provided for in Appendix I enclosed therewith. The stamp must be affixed to a product before it is sold in the duty-free shop or before it is delivered to the buyer in case it is delivered directly from the duty-free goods warehouse to the buyer.

6. For broken, damaged, degraded, poor quality or expired goods that cannot be sold, the duty-free business shall make a record of the condition of the goods to be disposed of (with confirmation from the customs sub-department managing the duty-free shop/duty-free goods warehouse) and dispose of the goods as per the law. Before disposal, the business must submit a detailed disposal plan to the customs sub-department managing the duty-free shop/duty-free goods warehouse for supervision of the disposal as per the law.

7. For sample products, product samples (perfume test strips, alcohol, cosmetics, perfumes, etc.), and bags and packaging imported to hold duty-free products purchased, duty-free businesses shall manage these types of goods separately, ensure that they are used for the intended purpose and submit final accounts to customs authorities according to regulations in Article 24 herein.

Article 7. Currencies used in duty-free sales transactions

1. Vietnam Dong.

2. United States Dollar (USD), Euro (EUR).

3. Currency of the country sharing land border with the place where a duty-free shop is located in a border area.

4. Currency of the country where an international flight of an airline established and operating under Vietnamese law enters or transits through.

Article 8. Duty-free allowances

1. Persons exiting/transiting through Vietnam, passengers on international flights departing from Vietnam or persons waiting to exit Vietnam provided for in Clause 1 Article 3 herein may buy duty-free goods without any restriction in terms of quantity and value but they shall take responsibility for procedures and allowance imposed by the arriving country.

2. Duty-free allowances for passengers on international flights to Vietnam and persons entering Vietnam provided for in Clause 2 and Clause 3 Article 3 herein are stipulated in Clause 1 and Clause 2 Article 6 of the Government’s Decree No. 134/2016/ND-CP dated September 01, 2016 on Guidelines for Law on Export and Import Duties.

3. Duty-free allowances for entities provided for in Clause 4 Article 3 herein are stipulated in Article 5 of the Government’s Decree No. 134/2016/ND-CP dated September 01, 2016 on Guidelines for Law on Export and Import Duties.

4. For persons provided for in Points a and b Clause 5 Article 3 herein, who may buy duty-free goods for personal use and for daily living of the crew of a vessel sailing international route while it is at anchor in a Vietnamese seaport, allowance for each crew member each time the vessel is at anchor in a Vietnamese seaport:

a) 1,5 liter of alcohol whose alcohol content is at least 20 degrees; or 2,0 liter of alcohol whose alcohol content is under 20 degrees; or 3,0 liter of alcoholic beverages and beer.

For alcohol contained in a bottle, jar or can (hereinafter referred to as "bottle”) whose capacity is higher than the permitted allowance but less than 01 liter, the whole bottle may be exempt from duty. If the bottle’s capacity is more than 01 liter, the contents in excess of the permitted allowance shall be liable to duty as per the law;

b) 200 cigarettes or 250 gram of shredded tobacco or 20 cigars.

5. Persons provided for in Point c Clause 5 Article 3 herein may buy duty-free goods without any restriction in terms of quantity and value for use on a vessel operating outside of Vietnam’s territorial waters after it exits Vietnam.

Chapter III

CUSTOMS PROCEDURES AND CUSTOMS SUPERVISION FOR DUTY-FREE BUSINESS

Article 9. Customs procedures for goods sold in duty-free shops

1. For goods temporarily imported and goods from free trade zones and bonded warehouses:  the duty-free business shall carry out temporary import procedures according to regulations in the Government’s Decree No. 08/2015/ND-CP dated January 21, 2015 providing guidance on the implementation of the Law on Customs in terms of customs procedures and customs inspection, supervision and control; and the Government’s Decree No. 59/2018/ND-CP dated April 20, 2018 on amendments to some articles of the Government’s Decree No. 08/2015/ND-CP dated January 21, 2015.

2. For goods from domestic market delivered to duty-free shops/duty-free goods warehouses: the duty-free business shall notify list of goods delivered to the duty-free shop/duty-free goods warehouse, which shall be made using Form No. 10/DSHH in Appendix II enclosed therewith, to the customs sub-department managing the duty-free shop/duty-free goods warehouse and submit this list to the electronic data processing system. After receiving feedback from the electronic data processing system, the duty-free business may deliver the goods to the duty-free shop/duty-free goods warehouse. The customs sub-department shall confirm the goods delivered to the duty-free shop/duty-free goods warehouse physically based on the list of goods notified by the duty-free business via the electronic data processing system.

In case there is suspicion concerning the list of goods, within 02 working hours from the time the electronic data processing system sends feedback, the customs sub-department managing the duty-free shop/duty-free goods warehouse shall inspect and compare information from the electronic data processing system with the goods actually delivered to the duty-free shop/duty-free goods warehouse. Where necessary, customs authorities may perform physical inspection of inventory in the duty-free shop/duty-free goods warehouse as per decision from the head of the customs department. The head of the customs department shall assign the customs sub-department managing the duty-free shop/duty-free goods warehouse to perform such inspection within 10 working days from the date on which the decision is signed.

For complicated cases, the head of the customs department may promulgate a decision to extend the inspection period for a maximum of 05 working days.

Inspected items and inspection results shall be included in the inspection record, which is prepared using Form No. 13/BBKT in Appendix II enclosed therewith.

Customs authorities shall confirm goods delivered to the duty-free shop/duty-free goods warehouse via the electronic data processing system based on physical inspection results.

Article 10. Customs procedures and customs supervision for goods delivered from duty-free goods warehouses to duty-free shops and vice versa

1. If the duty-free goods warehouse is in the same location as the duty-free shop, the duty-free business shall take responsibility for monitoring and management of goods delivery from the warehouse to the shop and vice versa.

2. If the duty-free goods warehouse is located in the international zone or another restricted area away from the duty-free shop:

a) The duty-free business shall send information on the goods to the electronic data processing system before delivery, and provide a goods delivery note when delivering the goods from the duty-free goods warehouse to the duty-free shop and vice versa. In case information on the goods is sent manually or the electronic data processing system encounters an error, the duty-free business shall notify the delivery to the customs authority in writing and send data to the electronic data processing system within 24 hours after the error is fixed;

b) The customs sub-department managing the duty-free shop/duty-free goods warehouse shall perform physical inspection of the goods delivered based on risk management principles or showing signs of a violation against the law; and approve the written notification of delivery from the duty-free business in case the notification is sent manually or the electronic data processing system encounters an error;

c) Immediately after the electronic data processing system recovers, the customs sub-department managing the duty-free shop/duty-free goods warehouse shall notify the duty-free business (in writing, via email, telephone, fax, etc.) of such recovery.

3. If the duty-free goods warehouse is not in the same location as the duty-free shop and not located in the international zone or a restricted area:

a) The duty-free business shall send information on goods delivery (commodity name, quantity, delivery route) to the electronic data processing system before delivery, and print 01 copy containing such information, which shall be used for circulation of the goods. In case the information is sent manually or the electronic data processing system encounters an error, the duty-free business shall notify the delivery to the customs authority in writing and may only deliver the goods with the approval from the customs authority. Within 24 hours after the error is fixed, the duty-free business shall send data to the electronic data processing system. The duty-free business shall take responsibility for delivering the goods to the destination notified;

b) The customs sub-department managing the duty-free shop/duty-free goods warehouse shall supervise loading of goods to be delivered from the warehouse to the shop and vice versa; approve goods delivery on the electronic data processing system immediately after receipt of the electronic or physical notification from the duty-free business. Seal the goods before delivery and specify the customs seal number on the physical document of the duty-free business. When the goods arrive at the delivery destination, the customs sub-department managing the duty-free shop/duty-free goods warehouse shall inspect the seals, give confirmation on the duty-free business’s document and supervise the receiving process;

c) The customs sub-department managing the duty-free shop/duty-free goods warehouse shall perform the duties provided for in Point c Clause 2 herein.

Article 11. Customs procedures and customs supervision for goods delivered from duty-free goods warehouses to aircrafts for in-flight duty-free sale on international flights to and from Vietnam and vice versa

1. The duty-free business shall:

a) Upon delivery of goods from a duty-free goods warehouse to an aircraft, the duty-free business shall send a delivery note, which is made using Form No. 08/PGHKVTB in Appendix II enclosed therewith, to the electronic data processing system;

b) Deliver the goods from the duty-free goods warehouse to the aircraft under supervision of the customs sub-department managing the duty-free goods warehouse;

c) Seal the cart containing unsold duty-free goods from an international flight before moving the cart out of the aircraft;

d) Prepare 02 copies of statement of cash delivered using Form No. 09/BKTMKVTB in Appendix II enclosed therewith and present them to the customs authority immediately after receipt of cash from the flight attendant representative. Update information from such statement to the electronic data processing system.

2. The customs sub-department managing the duty-free goods warehouse shall:

a) Supervise loading, affix customs seals and supervise delivery of goods to the aircraft door. Give confirmation in the delivery note according to regulations in Point a Clause 1 herein via the electronic data processing system;

b) Supervise the duty-free cart moving from the aircraft to the warehouse, inspect and supervise transport of unsold goods from the cart to the warehouse and give confirmation in the goods-received note of the duty-free business;

c) Confirm the 02 copies of statement of cash delivered presented by the duty-free business immediately after the business receives cash from the flight attendant representative, keep 01 copy and return 01 copy to the business, and give confirmation on the electronic data processing system.

Article 12. Customs procedures and customs supervision for goods transported between duty-free goods warehouses of one duty-free business and aircraft for in-flight duty-free sale on international flights to and from Vietnam in case of different airports of entry and exit

1. The duty-free business shall:

Perform the duties provided for in Clause 1 Article 11 of this Decree and the following duties:

a) Send a delivery note, which is made using Form No. 08/PGHKVTB in Appendix II enclosed therewith, to the electronic data processing system immediately after receipt of the goods at the duty-free goods warehouse in the airport of entry or delivery of the goods from the aircraft arriving in Vietnam to the duty-free goods warehouse in the airport of exit;

b) If the goods are delivered to the duty-free goods warehouse of the duty-free business in the airport of entry, store the duty-free cart in the warehouse where there are surveillance cameras and away from other duty-free carts and goods;

c) Deliver the goods from the aircraft arriving in Vietnam to the duty-free goods warehouse in the airport of exit at the time specified in the goods transfer note provided for in Point c Clause 3 herein;

d) Abide by penalty decision by customs authorities in case the duty-free cart is not delivered from the airport of entry to the airport of exit at the time specified in the goods transfer note provided for in Point c Clause 3 herein.

2. The customs sub-department managing the border checkpoint at the airport of exit shall:

a) Perform the duties provided for in Point a Clause 2 Article 11 herein upon delivery of the duty-free cart from the duty-free goods warehouse in the airport of exit to the departing aircraft;

b) Based on the goods transfer note provided for in Point c Clause 3 herein, supervise the duty-free cart delivered from the transport vehicle to the duty-free goods warehouse in the airport of exit; sign, append stamp showing official identification number and specify the date of confirmation on the goods transfer note and return it to the duty-free business; update information on the goods delivered in the electronic data processing system and give confirmation on the goods-received note of the duty-free business;

c) Monitor delivery of the duty-free cart, cooperate with the customs sub-department managing the border checkpoint at the airport of entry in confirming whether the duty-free cart is not delivered to the airport of exit at the time specified in the goods transfer note provided for in Point c Clause 3 herein.

3. The customs sub-department managing the border checkpoint at the airport of entry shall:

a) If the goods are delivered to the duty-free goods warehouse in the airport of entry, based on the flight number and duty-free cart number in the delivery note sent to the electronic data processing system by the duty-free business according to regulations in Point a Clause 1 herein, supervise delivery of the duty-free cart from the arriving aircraft to the warehouse in the airport of entry;

b) Perform the duties provided for in Point c Clause 2 Article 11 herein;

c) Based on information in the delivery note per regulations in Point a Clause 1 herein, seal the duty-free cart, make a duty-free cart transfer note via the electronic data processing system using Form No. 06/BBBG in Appendix II enclosed therewith, update the seal number to the transfer note, print 01 transfer note from the electronic data processing system and give it to the duty-free business for delivery of the duty-free cart to the customs sub-department managing the border checkpoint at the airport of exit;

d) Monitor delivery of the duty-free cart, take charge in confirming and handling violations (if any) in the event that the customs sub-department managing the border checkpoint at the airport of exit does not send a confirmation by the time specified in the goods transfer note according to regulations in Point b Clause 2 herein.

Article 13. Duty-free sale procedures for buyers being persons exiting or transiting through Vietnam, passengers on aircrafts exiting Vietnam, tourists traveling by sea, and crew members buying duty-free goods for personal use while their vessels are at anchor in Vietnamese seaports

1. Staff selling duty-free goods to persons exiting/transiting through Vietnam in the international zone shall:

a) Request the buyer to present their passport or laissez-passer;

b) Input information on the buyer and goods purchased into the duty-free business’s software.

Information on the buyer includes buyer’s full name written in their passport or laissez-passer; passport number or laissez-passer number; nationality; and flight number and flight date written on boarding pass for airline passengers or departure date of vehicle for railway and sea passengers.

For persons exiting/transiting through Vietnam via international civil airports, update their information by scanning the boarding pass barcode.

Information on the goods includes commodity name, exact calculation unit of each type of goods, calculation unit declared in the import declaration; quantity and value of each article;

c) Send information required according to Point b herein to the electronic data processing system. In the event that the system encounters an error, within 24 hours after the error is fixed, the duty-free business shall send the information to the system;

d) Issue invoices (including invoices for free gifts with purchase, if any) as prescribed by law;

dd) Retain invoices by date of operation (for invoice rolls, retain each roll separately).

2. Staff selling duty-free goods on aircrafts exiting Vietnam shall:

a) Request the buyer to present their passport;

b) When selling duty-free goods, flight attendants shall obtain all necessary information, including buyer name, passport number, nationality, flight number, information on boarding pass, commodity name, calculation unit, quantity and value written on invoice. Commodity name and calculation unit must be written as declared in the import declaration;

c) Within 24 hours starting from the time the aircraft parks at the designated location (for flights to Vietnam), the duty-free business shall prepare a declaration on its software and send the declaration to the electronic data processing system. The declaration must include buyer name, passport number, nationality, flight number, information on boarding pass, commodity name and calculation unit (as written in the import declaration), quantity and value written on invoice. In the event that the electronic data processing system encounters an error, the duty-free business shall send the data within 24 hours after the error is fixed.

3. Duty-free businesses and staff selling duty-free goods to tourists traveling by sea shall:

a) Request the buyer to present their passport or a document enabling international travel;

b) Input information on the buyer and goods purchased into the duty-free business’s software.

Information on the buyer includes buyer’s full name written in their passport or document enabling international travel; passport number or number of document enabling international travel; nationality; departure date of vessel; vessel name and arrival date.

Information on the goods includes commodity name, exact calculation unit of each type of goods, calculation unit declared in the import declaration; quantity and value of each article;

c) Send information required according to Point b herein to the electronic data processing system. In the event that the system encounters an error, within 24 hours after the error is fixed, the duty-free business shall send the information to the system;

d) Issue invoices (including invoices for free gifts with purchase, if any) as prescribed by law;

dd) Retain invoices by date of operation (for invoice rolls, retain each roll separately);

e) Give the goods to the buyer after the buyer completes the exit procedure;

g) In case a buyer buys duty-free goods from a duty-free shop away from port and receives their purchase at the exit checkpoint:

a) Prepare 02 delivery note copies using Form No. 02/PGH in Appendix II enclosed therewith and send data on the delivery note to the electronic data processing system. In the event that the system encounters an error, send data within 24 hours after the error is fixed.

Take responsibility for delivering and presenting the goods together with 02 delivery note copies to the customs authority managing the border checkpoint where the buyer exits Vietnam to transfer the goods to the buyer at the pick-up counter in the international zone of the exit checkpoint.

If the duty-free business fails to present a delivery note with confirmation from the customs authority managing the border checkpoint upon inspection from the customs sub-department managing the duty-free shop/duty-free goods warehouse, the business shall pay all tax imposed upon imports according to existing regulations for the goods sold.

4. Duty-free businesses and staff selling duty-free goods to crewmembers buying duty-free goods for personal use while their vessels are at anchor in Vietnamese seaports shall:

a) Request the crewmember to present their passport or shore pass. Check information on the electronic data processing system to sell duty-free goods within the allowances provided for in Clause 4 Article 8 herein;

b) Input information on the buyer and goods purchased into the duty-free business’s software.

Information on the buyer includes buyer’s full name written in their passport or shore pass; passport number or shore pass number; nationality; departure date of vessel; or vessel name and arrival date for shore pass holders.

Information on the goods includes commodity name, exact calculation unit of each type of goods, calculation unit declared in the import declaration; quantity and value;

c) Send information to the electronic data processing system. In the event that the system encounters an error, within 24 hours after the error is fixed, the duty-free business shall send the information to the system;

d) Issue invoices (including invoices for free gifts with purchase, if any) as prescribed by law;

dd) Retain invoices by date of operation (for invoice rolls, retain each roll separately).

5. The customs sub-department managing the duty-free shop/duty-free goods warehouse shall:

a) Perform the duties provided for in Point c Clause 2 Article 10 of this Decree;

b) For risk management and detection of signs of violations against the law, the customs sub-department managing the duty-free shop/duty-free goods warehouse shall inspect duty-free sale via the duty-free business’s software system, electronic data processing system and surveillance cameras or inspect the duty-free shop/duty-free goods warehouse directly.

c) Monitor and send feedback concerning delivery notes bearing confirmation from customs authorities in compliance with regulations in Clause 6 herein.

6. For buyers buying from duty-free shops away from port, the customs sub-department managing the exit checkpoint where each buyer exits Vietnam shall:

a) Receive the delivery note provided for in Point g Clause 3 herein presented by the duty-free shop’s staff at the pick-up counter in the international zone of the exit checkpoint;

b) Inspect and compare the goods with information declared in the delivery note;

c) Give confirmation, sign and append stamp showing official identification number on the delivery note;

d) Give 01 copy of the delivery note to the duty-free business for retention and retain 01 copy;

dd) At the end of each day (shift), a customs official shall confirm number of delivery notes having received confirmation on the electronic data processing system. In the event that the system encounters an error, within 24 hours after the error is fixed, the official shall complete this task.

Article 14. Duty-free sale procedures for buyers being persons entering Vietnam via border checkpoints at international airports

1. Staff selling duty-free goods shall:

a) Perform the duties provided for in Clause 1 Article 13 herein;

b) In case a buyer purchases more than the permitted duty-free allowance, the duty-free business shall prepare 02 notification copies using Form No. 01/PTBHVDM in Appendix II enclosed therewith and notify the customs authority managing the entry checkpoint (prepare physical documents and send data to the electronic data processing system). Receive and retain 01 copy with signature and stamp showing official identification number of the customs official at the entry checkpoint. Tobacco may not be sold in amount exceeding the permitted duty-free allowance.

2. Duty-free goods buyers who buy more than the permitted allowance shall make out a declaration, comply with regulations of law related to import of goods exceeding duty-free allowance and pay tax to customs authorities and submit relevant documents as prescribed by law.

3. The customs sub-department managing the duty-free shop/duty-free goods warehouse shall:

a) Perform the duties provided for in Point c Clause 2 Article 10 of this Decree;

b) For risk management and detection of signs of violations against the law, the customs sub-department managing the duty-free shop/duty-free goods warehouse shall inspect duty-free sale via the duty-free business’s software system, electronic data processing system and surveillance cameras or inspect goods in the duty-free shop/duty-free goods warehouse directly;

c) Collect tax and retain photocopies of the documents mentioned in Clause 2 of this Article.

Article 15. Duty-free sale procedures for buyers being passengers on international flights to Vietnam

1. Staff selling duty-free goods (flight attendants) and the duty-free business shall:

a) Request the buyer to present their passport and boarding pass;

b) When selling duty-free goods, flight attendants shall obtain all necessary information, including buyer name, passport number, nationality, flight number, information on boarding pass, commodity name, calculation unit, quantity and value written on invoice. Commodity name and calculation unit must be written as declared in the import declaration;

c) Within 24 hours starting from the time the aircraft parks at the designated location as per regulations, the duty-free business shall declare the following information on its software system: buyer name, passport number, nationality, flight number, flight date, commodity name, quantity, value, total quantity and total value. Send information to the electronic data processing system. In the event that the system encounters an error, within 24 hours after the error is fixed, the duty-free business must send data to the system;

d) In case a buyer purchases more than the permitted duty-free allowance, the duty-free business shall prepare 02 notification copies using Form No. 01/PTBHVDM in Appendix II enclosed therewith and notify the customs authority managing the entry checkpoint (prepare physical documents and send data to the electronic data processing system). Receive and retain 01 copy with signature and stamp showing official identification number of the customs official at the entry checkpoint. Tobacco may not be sold in amount exceeding the permitted duty-free allowance.

2. Duty-free goods buyers who buy more than the permitted allowance shall make out a declaration, comply with regulations of law related to import of goods exceeding duty-free allowance and pay tax to customs authorities and submit relevant documents as prescribed by law.

3. The customs sub-department managing the duty-free shop/duty-free goods warehouse shall:

a) Perform the duties provided for in Point c Clause 2 Article 10 of this Decree;

b) For risk management and detection of signs of violations against the law, the customs sub-department managing the duty-free business shall inspect duty-free sale via the business’s software system, electronic data processing system or inspect goods in the duty-free goods warehouse directly;

c) Collect tax and retain photocopies of the documents mentioned in Clause 2 of this Article.

Article 16. Duty-free sale procedures for buyers being persons waiting to exit Vietnam and buying from duty-free shops away from port

1. Staff selling duty-free goods shall:

a) Perform the duties provided for in Clause 1 Article 13 herein, except for obtaining buyer's exit date and time;

b) Prepare a delivery note using Form No. 02/PGH in Appendix II enclosed therewith (unless the goods are delivered to another country at the buyer’s request);

c) Send information in the delivery note to the electronic data processing system. In the event that the system encounters an error, send the information to the system within 24 hours after the error is fixed.

2. The duty-free business shall:

a) Take responsibility for delivering and presenting the goods together with 02 delivery note copies, which are made using Form No. 02/PGH in Appendix II enclosed therewith, to the customs sub-department managing the border checkpoint where the buyer exits Vietnam to transfer the goods to the buyer at the pick-up counter in the international zone of the exit checkpoint;

b) If the duty-free shop fails to present a delivery note with confirmation from the customs authority managing the border checkpoint upon inspection from the customs sub-department managing the duty-free shop/duty-free goods warehouse, the duty-free business shall pay all tax imposed upon imports according to existing regulations for the goods sold.

3. The customs sub-department managing the duty-free shop/duty-free goods warehouse shall:

a) Monitor feedback on the delivery note confirmed by the customs sub-department managing the border checkpoint where the buyer exits Vietnam;

b) Perform the duties provided for in Point c Clause 2 Article 10 of this Decree;

c) For risk management and detection of signs of violations against the law, inspect duty-free sale via the duty-free business’s software system, electronic data processing system and surveillance cameras or inspect goods in the duty-free shop/duty-free goods warehouse directly.

4. The customs sub-department managing the border checkpoint where the buyer exits Vietnam shall:

a) Receive the delivery note presented by the duty-free shop’s staff at the pick-up counter in the international zone of the exit checkpoint;

b) Inspect and compare the goods with information declared in the delivery note;

c) Give confirmation, sign and append stamp showing official identification number on the delivery note;

d) Give 01 copy of the delivery note to the delivery staff of the duty-free business for retention and retain 01 copy;

dd) At the end of each day (shift), a customs official shall confirm number of delivery notes having received confirmation on the electronic data processing system. In the event that the system encounters an error, within 24 hours after the error is fixed, the official shall complete this task.

5. If a duty-free business owns multiple duty-free shops/duty-free goods warehouses at multiple locations and under management of different customs sub-departments/customs departments, when selling duty-free goods to persons waiting to exit Vietnam at duty-free shops away from port, the business may give the goods to the buyer at the business’s duty-free shop/duty-free goods warehouse that is under the management of the customs sub-department managing the border checkpoint where the buyer exits Vietnam.

Article 17. Duty-free sale procedures for organizations and individuals granted privileges and immunities purchasing duty-free goods from duty-free shops away from port

1. Staff selling duty-free goods shall:

a) Request the buyer to present the quota book for duty-free goods, excluding books issued by competent authorities and already updated to the Vietnam National Single Window;

b) Send information on goods quantity in the quota book for duty-free goods presented by the buyer or data on the quota book for duty-free goods from the Vietnam National Single Window updated by the competent authority (for books used for the first time) to the electronic data processing system;

c) Present the authentic copy of the quota book for duty-free goods to the customs authority to confirm the duty-free allowance on the electronic data processing system for books presented in accordance with the regulation in Point a herein;

d) Input required information on sales invoices to the duty-free business’s software system and send data to the electronic data processing system, and receive feedback from the system. In the event that the system encounters an error, send data within 24 hours after the error is fixed;

dd) Issue invoices (including invoices for free gifts with purchase, if any) as prescribed by law;

e) Cut the stamp corresponding to the goods sold from the quota book for duty-free goods and affix it to the sales invoice for books presented in accordance with the regulation in Point a herein. For invoice rolls, the duty-free business shall retain the stamp corresponding to each sales invoice;

g) Retain invoices by date of operation (for invoice rolls, retain each roll separately).

2. The customs sub-department managing the duty-free shop/duty-free goods warehouse shall:

a) For buyers purchasing duty-free goods using the quota book for duty-free goods for the first time, check the buyer’s duty-free allowance in the authentic copy of the quota book or on the Vietnam National Single Window, and confirm this allowance on the electronic data processing system for the system to deduct the amount of goods purchased from the allowance;

b) For risk management and detection of signs of violations against the law, inspect duty-free sale via the duty-free business’s software system, electronic data processing system and surveillance cameras or inspect goods in the duty-free shop/duty-free goods warehouse directly;

c) Perform the duties provided for in Point c Clause 2 Article 10 of this Decree.

Article 18. Duty-free sale procedures for buyers being crewmembers working on vessels sailing international route

1. Staff selling duty-free goods to crewmembers buying duty-free goods for daily living of the crew of a vessel sailing international route while it is at anchor in a Vietnamese seaport waiting to exit Vietnam shall:

a) Request the person placing the order to present their passport and submit 01 authentic copy of the purchase order and 01 authentic copy of the crew list;

b) Inspect the purchase order from the captain or vessel representative and crew list, check the duty-free allowance of each crew member; and check information on the electronic data processing system to sell duty-free goods within the allowances provided for in Clause 4 Article 8 herein;

c) Input data on the order to the duty-free business’s software system; send data to the electronic data processing system and receive feedback from the electronic data processing system. In the event that the system encounters an error, the duty-free business shall send the data to the system within 24 hours after the error is fixed;

d) Issue sales invoice (including invoice for free gifts with purchase, if any), which shall include full name, passport number and nationality of the captain/vessel representative, vessel identification number and date of entry to Vietnam;

dd) Retain the sales invoice with signature from the captain or vessel representative, purchase order and crew list.

2. Staff selling duty-free goods to crewmembers buying duty-free goods for daily living of the crew of a vessel sailing international route after it has left Vietnam’s territorial waters shall:

a) Request the person placing the order to present their passport and submit 01 authentic copy of the purchase order and 01 authentic copy of the crew list;

b) Inspect the purchase order and crew list. Input information from the invoice to the duty-free business's software system, including passport number and nationality of the captain/vessel representative, vessel identification number and date of entry to Vietnam; commodity name, quantity and value. Send data to the electronic data processing system and receive feedback from the system. In the event that the system encounters an error, send the data within 24 hours after the error is fixed;

c) Issue sales invoices as prescribed by law;

d) Take responsibility for delivering goods to the vessel’s storage;

dd) Retain the sales invoice with signature from the captain or vessel representative and confirmation from the customs official handling the exit procedure for the vessel, purchase order and crew list.

3. The customs sub-department managing the duty-free shop/duty-free goods warehouse shall:

a) Supervise from when goods leave the duty-free shop to when they are under supervision of the customs authority of the location where the vessel exits Vietnam;

b) Perform the duties provided for in Point c Clause 2 Article 10 of this Decree.

4. The customs sub-department of the location where exit procedure for the vessel is carried out shall seal the duty-free goods storage of the vessel, verify existence of the goods in the customs controlled area (sign and append stamp showing official identification number on the sales invoice) and supervise until the vessel exits Vietnam.

Article 19. Online duty-free sale procedures

1. The duty-free business shall:

Perform the duties provided for in Articles 13, 14, 15, 16, 17 and 18 of this Decree and the following duties:

a) Input information on the buyer and goods to the electronic data processing system upon acceptance of an order and successful payment. For duty-free sale to persons waiting to exit Vietnam, persons exiting/transiting through Vietnam via international civil airports, update their information by scanning the boarding pass barcode before inspecting and comparing information according to regulations in Point b herein;.

b) Upon goods delivery to the buyer, inspect and compare information declared by the buyer for online purchase with information on buyer-related documents as per regulations for each type of buyer.

2. The customs sub-department managing the duty-free shop/duty-free warehouse and the customs sub-department managing the border checkpoint where the buyer exits or enters Vietnam shall perform the duties provided for in Articles 13, 14, 15, 16, 17 and 18 of this Decree as applicable to each type of buyer.

Article 20. Customs procedures for goods sold to persons exiting Vietnam but delivered to another country at the buyer’s request

1. Location for customs procedures: the office of the customs sub-department managing the duty-free shop/duty-free warehouse after the buyer has truly exited Vietnam.

2. Customs procedures: export procedures (re-export procedures for goods temporarily imported from overseas by the duty-free business or export procedures for goods purchased from domestic market by the duty-free business and sold in the duty-free shop) per regulations in the Government’s Decree No. 08/2015/ND-CP dated January 21, 2015 providing guidance on the implementation of the Law on Customs in terms of customs procedures and customs inspection, supervision and control; and the Government’s Decree No. 59/2018/ND-CP dated April 20, 2018 on amendments to some articles of the Government’s Decree No. 08/2015/NĐ-CP. When carrying out export procedures, besides the required customs dossier, the duty-free business shall submit list of goods sold to buyers using Form No. 11/BKHH in Appendix II enclosed therewith and 01 photocopy of each buyer’s passport or document enabling international travel or laissez-passer (first page and the page bearing the exit stamp of the entry and exit authority).

3. If the customs authority has sufficient grounds to confirm that the buyer has not exited Vietnam, the duty-free business shall be subject to penalty as per the law.

Article 21. Procedures for duty-free goods repurposed, domestically consumed or re-exported

1. Procedures for repurposing, domestic market sale and re-export of duty-free goods are provided for in the Government’s Decree No. 08/2015/ND-CP dated January 21, 2015 providing guidance on the implementation of the Law on Customs in terms of customs procedures and customs inspection, supervision and control, the Government’s Decree No. 59/2018/ND-CP dated April 20, 2018 on amendments to some articles of Decree No. 08/2015/ND-CP and guidelines from the Ministry of Finance.

Goods management policies and tax policies for goods undergoing repurposing/conversion to domestically consumed goods shall be adopted from the time of registration of customs declaration of repurposing/conversion to domestic market sale.

Tobacco may not be repurposed or sold domestically and shall be re-exported via sea border checkpoints and border checkpoints at international civil airports.

Before transporting the goods out of the duty-free shop, the duty-free business shall dispose of the “VIET NAM DUTY NOT PAID” stamp affixed to each article and record number of stamps disposed of in writing.

2. For goods from domestic market permitted for sale under Vietnamese law that are added to the duty-free shop and then returned to the domestic market, the business owning the duty-free shop/duty-free goods warehouse shall send a notification, which is made using Form No. 10/DSHH in Appendix II enclosed therewith, to the customs sub-department managing the duty-free shop/duty-free goods warehouse via the electronic data processing system. Before transporting the goods out of the duty-free shop, the business shall dispose of the “VIET NAM DUTY NOT PAID” stamp affixed to each article under supervision of the custom authority managing the shop and record number of stamps disposed of in writing.

Article 22. Procedures for goods to be disposed of, sample products, product samples, bags and packaging imported to hold duty-free goods

1. Procedures for broken, damaged, degraded, poor quality or expired goods are provided for in Clause 6 Article 6 of this Decree and as follows:

a) When making a record on the state of broken, damaged, degraded, poor quality or expired goods, the duty-free business must provide an explanation and information on the goods, including commodity name, identification number, quantity and value. Based on the record and physical inspection of the goods, an official of the customs authority managing the duty-free shop shall sign and append stamp showing official identification number on the record to confirm the state of the goods;

b) The duty-free business shall take responsibility for disposal of the goods in compliance with existing regulations of law and be subject to supervision of the customs authority.

2. Procedures for sample products, product samples and bags and packaging imported to hold duty-free goods (excluding gifts with purchase):

a) Upon delivery of sample products, product samples and bags and packaging imported to the duty-free shop, the duty-free business shall prepare a list using Form No. 12/BKHMT in Appendix II enclosed therewith, send it to the electronic data processing system and receive feedback from the system;

b) On a monthly basis (within the first 07 working days of the month), submit aggregated data on sample products, product samples and imported bags and packaging used and in stock of the previous month to the electronic data processing system.

If there is no suspicion regarding the data reported by the business, within 03 working days from the date of receipt of the report, the customs authority shall confirm the data on the electronic data processing system.

If the customs authority has any suspicion regarding the data reported by the business, within 07 working days from the date of receipt of the report, the customs authority shall inspect relevant documents. Where necessary, the customs authority may perform a physical inspection of the goods in stock in the duty-free shop/duty-free goods warehouse according to the decision of the head of the customs department. The head of the customs department has the power to assign the customs sub-department managing the duty-free shop/duty-free goods warehouse to perform such inspection within 10 working days from the date on which the decision is signed.

For complicated cases, the head of the customs department may promulgate a decision to extend the inspection period for a maximum of 05 working days.

Inspected items and inspection results shall be included in the inspection record, which is prepared using Form No. 13/BBKT in Appendix II enclosed therewith. The customs authority shall confirm the data reported by the duty-free business on the electronic data processing system based on the inspection conclusion.

Article 23. Procedures for cash delivered to/from international zone/restricted areas by duty-free businesses

1. The duty-free business shall:

a) Send required data per Form No. 05/BKTMVR in Appendix II enclosed therewith to the electronic data processing system before delivering cash to/from the international zone/restricted areas;

b) Comply with requirements from the customs authority notified via the electronic data processing system. Present the cash at the request of the customs authority.

2. The customs authority shall:

a) Upon receipt of information declared by the duty-free business and feedback sent from the electronic data processing system to the business, a customs official shall inspect such information;

b) Supervise cash delivered to/from the international zone/restricted areas;

c) Perform physical inspection of the cash delivered to/from the international zone/restricted areas for risk management or upon detection of signs of a violation against the law;

d) A customs official shall confirm the cash delivered through the customs controlled area to enter/exit the international zone/restricted areas on the electronic data processing system.

3. In case these procedures are carried out manually or the electronic data processing system encounters an error:

a) The duty-free business shall prepare 02 copies of statement of cash delivered to/from the international zone/restricted areas using Form No. 05/BKTMVR in Appendix II enclosed therewith for customs officials to inspect and confirm. Present the cash at the request of the customs authority. In the event that the electronic data processing system encounters an error, the business shall send information from the statement to the system within 24 hours after the error is fixed;

c) The customs authority shall supervise cash delivered to/from the international zone/restricted areas. Perform physical inspection of the cash for risk management or upon detection of signs of a violation against the law. Immediately after such physical inspection or inspection of cash delivered through the customs controlled area, the customs authority shall give confirmation on the 02 copies of statement of cash delivered to/from the international zone/restricted areas presented by the duty-free business, retain 01 copy and return 01 copy to the business.

Article 24. Final accounts for goods sold in duty-free shops

1. Submission period for final accounts for goods sold in duty-free shops:

a) On an annual basis, within 90 days from the fiscal year-end, the duty-free business shall submit the final accounts for its duty-free sale in the fiscal year to the customs authority;

b) After submitting final accounts, the duty-free business may make change to the final accounts before the submission deadline and before the time the customs authority announces whether the final accounts are subject to inspection.

2. Where to submit final accounts:

Final accounts shall be submitted to the customs sub-department managing the duty-free shop/duty-free goods warehouse.

3. The duty-free business shall:

a) Submit final accounts for goods sold in the duty-free shop, which shall be formulated based on the input - output - inventory principle and using Form No.07/BCQT in Appendix II enclosed therewith, to the customs authority via the electronic data processing system. The final accounts must be consistent with accounting vouchers of the business;

b) Provide customs dossiers, accounting vouchers, account books, sales documents and other documents (if any) for inspection of the final accounts at the request of the customs authority according to regulations.

4. The customs sub-department managing the duty-free shop/duty-free goods warehouse shall receive final accounts for duty-free sale submitted by the duty-free business, inspect the final accounts in compliance with regulations in this Article and perform the following duties:

a) For final accounts subject to inspection, the customs authority shall notify the duty-free business of such inspection within 20 days from the date of receipt of the final accounts;

b) For final accounts not subject to inspection, within 20 working days from the date of receipt of the final accounts from the duty-free business, the customs authority shall notify the business that the final accounts have been accepted and are not required to undergo inspection via the electronic data processing system. Concurrently, confirm that the business has completed its final accounts on the electronic data processing system.

5. Cases subject to final accounts inspection:

a) Final accounts submitted by a duty-free business for the first time;

b) Final accounts whose figures are unusually different from those available in the electronic data processing system of the customs authority, an explanation for which has been given by the duty-free business but is not accepted by the customs authority;

c) Final accounts inspected for risk management and/or assessment of regulatory compliance by the duty-free business.

6. Inspected items: customs dossiers, accounting vouchers and goods in stock in the duty-free shop/duty-free goods warehouse. The customs authority shall request the duty-free business to present only the customs dossiers and accounting vouchers that contain figures not available in the electronic data processing system or related to discrepancy between figures reported by the business and those available in the system.

7. Competence in deciding to inspect final accounts: head of the customs sub-department managing the duty-free shop/duty-free goods warehouse has the power to decide to inspect the cases provided for in Clause 5 herein and organize such inspection.

8. Final accounts inspection procedures:

a) Final accounts shall be inspected per the decision promulgated by the customs sub-department head, which shall be notified to the duty-free business within 03 working days from the signing date and no later than 05 working days before the date of inspection.

The inspection decision must contain inspector name, name of person inspected, inspected items, inspection start and end times, and inspection location;

b) The inspection shall last for no more than 05 working days starting from the date on which the inspection starts at the office of the duty-free business. For complicated cases, the customs department head may promulgate a decision to extend the inspection period for a maximum of 05 working days.

Inspected items shall be included in inspection records between the authorized representative of the duty-free business and the inspection team.

9. Handling of inspection results: within 05 working days after the inspection end date, the customs authority shall notify the inspection results, including consistency or inconsistencies in the final accounts (if any), to the duty-free business for the business to provide the explanation.

a) If the inspection shows that the final accounts are consistent with accounting vouchers, account books and duty-free goods dossiers, the customs authority shall promulgate the inspection conclusion and confirm the inspection results in the final accounts. Update the inspection results to the electronic data processing system;

b) If the inspection shows that the final accounts are inconsistent with accounting vouchers, account books and duty-free goods dossiers, the duty-free business shall provide an explanation within 05 working days. If the customs authority accepts such explanation, within 05 working days, the customs authority shall promulgate the inspection conclusion, confirm the inspection results in the final accounts and update the results to the electronic data processing system;

c) If the customs authority does not accept the explanation from the duty-free business or the business fails to provide an explanation, based on regulations of tax and customs laws and available documents, the customs authority shall decide to impose tax and administrative penalties intra vires or propose the penalties to a competent person for handling as prescribed by law;

d) The inspection conclusion must include the inspection decision, scope of inspection, inspected items, opinion of the inspected person, conclusion on each inspected item, severity of violation (if any), handling measure and proposal of the inspection team concerning the handling measure.

Article 25. Customs procedures and customs inspection and supervision for duty-free goods of businesses owning multiple duty-free shops/duty-free goods warehouses at multiple locations and under management of different customs sub-departments/customs departments

1. The duty-free business shall:

a) Carry out customs procedures for goods sold in each duty-free shop as per the law at the office of the customs sub-department managing the duty-free shop/duty-free goods warehouse;

b) Equip a management software system for each duty-free shop/duty-free goods warehouse, which is connected with the customs sub-department managing the duty-free shop/duty-free goods warehouse;

c) When goods are delivered from a duty-free shop/duty-free goods warehouse to a duty-free shop/duty-free goods warehouse under the management of another customs sub-department, the duty-free business shall prepare a goods dispatch note, which includes the location of the receiving duty-free shop/duty-free goods warehouse and the customs sub-department managing this duty-free shop/duty-free goods warehouse;

d) Take responsibility for delivering goods as they are to the duty-free shop/duty-free goods warehouse whose address is written on the goods dispatch note;

dd) Submit final accounts according to regulations in Clause 1 Article 24 of this Decree to the customs sub-department managing each duty-free shop/duty-free goods warehouse;

e) Comply with regulations on final accounts inspection provided for in Article 24 of this Decree.

2. The customs authority managing the dispatching duty-free shop/duty-free goods warehouse shall:

a) Supervise loading of goods onto the transporting vehicle and affix the customs seal;

b) Based on information from the goods dispatch note, prepare 02 copies of note of transfer of duty-free goods under customs supervision using Form No. 06/BBBG in Appendix II enclosed therewith and give these copies to the duty-free business to have them delivered to the customs sub-department managing the receiving duty-free shop/duty-free goods warehouse;

c) Monitor goods delivery, take charge in searching in case the goods do not arrive on time;

d) Monitor transfer of goods between duty-free shops/duty-free goods warehouses via the software system of the duty-free business.

3. The customs authority managing the receiving duty-free shop/duty-free goods warehouse shall:

a) Based on the goods transfer note prepared by the customs sub-department managing the dispatching duty-free shop/duty-free goods warehouse, supervise goods delivered from the transporting vehicle to the receiving duty-free goods warehouse/duty-free shop;

b) Give confirmation on the 02 goods transfer note copies, give 01 copy to the duty-free business and the other copy to the customs authority managing the dispatching duty-free shop/duty-free goods warehouse;

c) Monitor goods delivery, cooperate with the customs authority managing the dispatching duty-free shop/duty-free goods warehouse in searching in case the goods do not arrive on time;

d) Monitor transfer of goods between duty-free shops/duty-free goods warehouses via the software system of the duty-free business.

4. The customs sub-department managing each duty-free shop/duty-free goods warehouse shall receive final accounts submitted by the duty-free business and inspect final accounts in compliance with regulations in Article 24 of this Decree.

Article 26. Responsibilities of entities eligible for duty-free goods purchase mentioned in Article 3 of this Decree

1. Duty-free goods buyers shall provide information necessary for duty-free purchase provided for in this Decree and shall not allow others to use their passports, documents enabling international travel, laissez-passers or duty-free allowance.

2. Fulfill obligations concerning tax and import goods policies to customs authorities if exceeding the permitted duty-free allowance.

Article 27. Cooperation between seaport, international civil airport and international railway station businesses, management boards of international land border checkpoint economic zones, management units of international land border checkpoints, duty-free businesses and customs authorities

1. Customs sub-departments managing a duty-free shop/duty-free goods warehouse shall reach an agreement on locations for each customs sub-department to supervise goods and cash taken into and out of the international zone/restricted areas with seaport, international civil airport and international railway station businesses, management boards of international land border checkpoint economic zones and management units of international land border checkpoints.

2. Each duty-free business shall notify the customs sub-department managing its duty-free shop/duty-free goods warehouse of list of personnel in charge of delivering goods and cash to/from the international zone/restricted areas and staff selling duty-free goods to meet supervision requirements from the customs authority.

Chapter IV

IMPLEMENTATION CLAUSE

Article 28. Effect

1. This Decree comes into force from October 15, 2020.

2. This Decree supersedes the Government’s Decree No. 167/2016/ND-CP dated December 27, 2016 on duty-free business.

Article 29. Transitional clauses

1. Businesses owning multiple duty-free shops/duty-free goods warehouses at multiple locations and under management of different customs sub-departments/customs departments shall prepare final accounts for 2020 in accordance with regulations in Article 22 of the Government’s Decree No. 167/2016/ND-CP dated December 27, 2016 on duty-free business.

2. Duty-free businesses implementing electronic invoicing shall issue, manage, use, preserve and retain electronic invoices in compliance with existing regulations of law on electronic invoicing.

Article 30. Implementing responsibilities

1. Ministry of Finance shall develop an electronic data processing system for receipt, handling, monitoring and management of goods delivered to/from and sold at duty-free shops and provide guidelines for resolution of difficulties faced by duty-free businesses.

2. Ministries shall provide guidelines for inspection of product/goods quality and food safety and hygiene for goods from duty-free shops and duty-free goods warehouses using samples collected on an ad hoc or periodic basis intra vires.

3. Ministers, heads of ministerial-level agencies, heads of Governmental agencies, and Chairpersons of People’s Committees of provinces and central-affiliated cities shall implement this Decree./.

APPENDIX I

REGULATIONS ON LOCATIONS FOR “VIET NAM DUTY NOT PAID” STAMP FOR DUTY-FREE GOODS

(Enclosed with Government's Decree No. 100/2020/ND-CP dated August 28, 2020)

1. Tobacco: the stamp shall be affixed over the opening of the cigarette carton to ensure that the stamp will break when the carton is opened and cannot be reused. For shredded tobacco, the stamp shall be affixed over the opening of the container to ensure that the stamp will break when the container is opened and cannot be reused.

2. Bottled alcohol (including clay pots and carboys): the stamp shall be affixed over the opening of the alcohol bottle (lid, faucet, etc.) to ensure that the stamp will break upon opening and can no longer be reused. For alcohol contained in cases requiring special preservation (with wax or lead seal), the stamp shall be affixed to the top of the case to ensure that the stamp will break upon opening and can no longer be reused.

3. All types of beer: the stamp shall be affixed over the opening of the beer carton to ensure that the stamp will break upon opening and can no longer be reused. For beer containers of at least 3 liters, the stamp shall be affixed over the opening of the container to ensure that the stamp will break upon opening and can no longer be reused.

APPENDIX II

 (Enclosed with Government's Decree No. 100/2020/ND-CP dated August 28, 2020)

Form No. 01/PTBHVDM

NOTIFICATION

GOODS EXCEEDING DUTY-FREE ALLOWANCE

Name of buyer:

Passport number:

Flight number:

Invoice number:

Form No. 02/PGH

DELIVERY NOTE

FOR BUYERS PURCHASING DUTY-FREE GOODS AWAY FROM PORT

............[Location and date]

Name of business:                           Tax identification number:

Name of buyer:

Number of passport/laissez-passer/document enabling international travel of buyer:

Flight number/Number of departing vehicle (if any):

Invoice number:

Invoice date:

Border checkpoint for pick-up:

Dispatching duty-free shop/duty-free goods warehouse:

*Note: duty-free shop staff may give their confirmation only in the event that the duty-free business owns multiple duty-free shops and requests to deliver goods from the duty-free goods warehouse located at the border checkpoint where the buyer exits Vietnam to the buyer, who has purchased from a duty-free shop away from port (the duty-free goods warehouse located in the airport and the duty-free shop away from port are under the management of 02 different customs sub-department).

Form No. 03/CV

To: Ministry of Industry and Trade

Name of business:

Address:                                   Phone number:                         Fax number:

We provide duty-free goods for ............[type of buyer] in accordance with:....  (certificate of eligibility for duty-free business or business registration certificate or investment certificate).

Based on tobacco import, sale and in stock in the duty-free shop for .............[type of buyer] to [date] (detailed report with confirmation from customs authority is enclosed therewith).

We hereby apply to the Ministry of Industry and Trade for the license to import ........... (value in USD) tobacco products for sale at our duty-free shop for ......... for [period of time].

We hereby guarantee to import and sell tobacco and pay tax in accordance with existing regulations./.

*Note: first-time applicants are not required to submit a report on tobacco import, in stock and sale, which is made using Form No. 04/BCNKTKTL enclosed with this Decree.

Form No. 04/BCNKTKTL

REPORT

on tobacco import, in stock and sale in duty-free shop of …

From [date] to [date]

(Enclosed with Official Dispatch No. ............ dated [date] by [issuer])

*Note: in the event of dispatching for other purposes, relevant documents shall be provided (declaration of re-export for which customs procedures have been completed or tobacco disposal record).

Form No. 05/BKTMVR

STATEMENT OF CASH DELIVERED TO/FROM INTERNATIONAL ZONE/RESTRICTED AREAS

[Location and date]

(1) Name of business:

(2) Address:

(3) Tax identification number:

(4) Duty-free shop:

*Note: specify the foreign currency/ies delivered to/from the international zone such as USD, EURO, etc. in columns (6) and (10).

Form No. 06/BBBG

NOTE OF TRANSFER OF DUTY-FREE GOODS UNDER CUSTOMS SUPERVISION

At [time], on [date], [name of customs sub-department] with phone number: ............  and fax number: …. transferred to Mr./Mrs. ...............................

Representative of [company name]; a shipment specified in delivery note/goods dispatch note No. ..... dated [date] to be delivered to [name of customs sub-department] affiliated to [name of customs department], which comprises:

1. Customs dossier:

a) ...

b) …

2. Goods:

State of tractor truck/specialized vehicle/goods ....................................................

.....................................................................................................................................

Record of state of tractor truck/specialized vehicle/goods (if any), No. ............

Delivery time .........; Delivery route:.............; km .................

Departing date and time: ...................................... Arrival date and time: ......................................

Other matters related to the goods and custom dossier: ...................................

..................................................................................................................................

*Note:  Column (6) only applies to transport of goods between duty-free goods warehouses and the aircraft for in-flight duty-free sale on international flights to and from Vietnam in case of different airports of entry and exit.

Form No. 07/BCQT

FINAL ACCOUNTS OF DUTY-FREE BUSINESS

Year:……

Notes:

- Commodity code in column (03) is the code used to monitor each commodity by the business;

- These accounts include free gifts with purchase, sample products, product samples, and bags and packaging imported (if any);

- In case that sample products, product samples, and bags and packaging imported are used up, the business shall declare the quantity in column (09) and note that these are sample products, product samples or bags and packaging imported in column (16).

Form No. 08/PGHKVTB

DELIVERY NOTE FOR GOODS TRANSPORTED BETWEEN DUTY-FREE GOODS WAREHOUSES AND AIRCRAFT

[Location and date]

(01) Number of delivery note: ......................../tax identification number/PGHKVTB

(02) Name of business:                                                  Tax identification number:

(03) Flight number:

(04) Departing international airport:                                                  Arriving international airport (planned):

 (05) Departure time:                                              Arrival time (estimated):

(06) Number of duty-free cart:

Form No. 09/BKTMKVTB

STATEMENT OF CASH DELIVERED FROM DUTY-FREE GOODS WAREHOUSE TO AIRCRAFT AND VICE VERSA

[Location and date]

(01) Flight number:                                    Flight date and time:

(02) Departing airport:                                                  Arriving airport:

 (03) Number of duty-free cart:

(04) Full name of cash sender:                               Post:

(05) Full name of cash recipient:                               Post:

*Note: specify the foreign currency/ies delivered to/from the international zone such as USD, EURO, etc. in columns (06) and (08).

Form No. 10/DSHH

LIST OF GOODS DELIVERED TO/FROM DUTY-FREE SHOP/DUTY-FREE GOODS WAREHOUSE

(For goods manufactured in Vietnam and imports for which import procedures are completed)

...., [Location and date]

(01) Name of business:                                                  Tax identification number:

(02) Shop/warehouse:

(03) List of goods:

Form No. 11/BKHH

LIST OF GOODS SOLD TO PERSONS EXITING VIETNAM

(01) Name of business:

(02) Tax identification number:

(03) Shop/warehouse:

(04) Destination country/territory:

Form No. 12/BKHMT

LIST OF SAMPLE PRODUCTS, PRODUCTS SAMPLES, AND BAGS AND PACKAGING IMPORTED

(01) Name of business:

(02) Tax identification number:

(03) Shop/warehouse:

Form No. 13/BBKT

INPSECTION RECORD

Legal grounds:

Implementing Decision No. … dated [date] on physical inspection of goods in stock in duty-free shop/duty-free goods warehouse at the office of [name of duty-free business], tax identification number: .................

Address: …………………………………………………………………………………………….   

Today, at [time] on [date],

we, including:

1. Mr./Mrs.: .............................. Post: ...........................Unit: ......................

2. Mr./Mrs.: .............................. Post: ...........................Unit: ......................

perform an inspection with:

1. Mr./Mrs.: .............................. Year of birth..................... Nationality ........................

Title: .............................................Company: .......................................................

Address: .........................................................................................................

Number of identity card/passport: .......................Date of issuance: ................ Issuer: ................

2. ........................................................................................................................

Inspected items:

..............................................................................................................................

..............................................................................................................................

Inspection results:

..............................................................................................................................

..............................................................................................................................

This record is completed at [time].

This record is made in … copies. Each copy has … pages. All copies are identical and equally authentic. Each of the parties, [name of parties], keeps 01 copy.

After reading this record, the persons present agree with this record’s contents and sign this record.

Other opinions (if any) ⁽¹⁾:

..............................................................................................................................

^{_______________________________}

⁽¹⁾ Any person holding an opinion different from that which is stated in this record must give their opinion, reason for such opinion, signature and full name.

⁽²⁾ Participants are those included in list of individuals sent to perform the inspection with the inspection team. If an authorized representative signs this record, they shall give their full name and post and obtain the customs declarant’s stamp.

 ⁽³⁾ Inspectors are members of the inspection team listed in the inspection decision. If the inspection team leader signs this record, they shall add their title to the signature section.