Công văn 3899/TCHQ-GSQL

THE MINISTRY OF FINANCE
THE GENERAL DEPARTMENT OF CUSTOMS
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SOCIALIST REPUBLIC OF VIETNAM
Independence - Freedom - Happiness
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No. 3899/TCHQ-GSQL
Re: Responses to enquiries arising from Decree No. 59 and its guiding documents

Hanoi, July 4, 2018

PP. DIRECTOR GENERAL
DEPUTY DIRECTOR GENERAL




Mai Xuân Thanh

No.

Enquiries

Guidelines

I. Enquiries as to Decree No. 08/2015/ND-CP guidance on enforcement of the customs law">59/2018/ND-CP

1

Sub-point a, Point 2, Clause 38, Article 1 of Government's Decree No. 08/2015/ND-CP guidance on enforcement of the customs law">59/2018/ND-CP dated April 20, 2018 on amendments to Article 67 of Government's Decree No. 08/2015/ND-CP dated January 21, 2015 stipulates “the Customs Sub-department within the area where the ship arrives ... shall receive the documents submitted by the Maritime Administration, shipping company or shipping agent regarding the changing destination of the ship, and shall send the shipping report stipulated in the regulations of the Ministry of Finance to the Customs Sub-department within the area where the ship is expected to arrive at the next arrival port”. However, Circular No. 50/2018/TT-BTC dated May 23, 2018 of the Ministry of Finance has not set forth items in the transfer note of dossier of changing destination of the ship.

Request General Department to upgrade the system and add items in the transfer note of dossier of changing destination of the ship via national single-window system. (Can Tho Customs)

In Form No. 1 (transfer note of dossier of changing destination of the ship) – Appendix I issued together with Circular No. 50/2018/TT-BTC dated May 23, 2018 on items in a transfer note of dossier of changing destination of the ship. However, while the upgrade and improvement of national single-window system has been in progress, aforesaid items have not added promptly on the System. Therefore, the General Department of Customs acknowledges the enquiry to upgrade the national-single-window system.

While the system has not been upgraded but the destination of a ship need to be changed, Customs Department of province/city (hereinafter referred to as province) is requested to make a transfer note of dossier of changing destination of the ship in hardcopy form to follow procedures prescribed in Article 67 of Decree No. 08/2015/ND-CP which is amended at Clause 38 Article 1 of Decree No. 08/2015/ND-CP guidance on enforcement of the customs law">59/2018/ND-CP .

2

Temporary import according to turnaround method applied to tank vehicles containing gas or liquid:

Clause 7 Article 49 of Decree No. 08/2015/ND-CP dated January 21, 2015 in terms of customs procedures stipulates that: “Customs Sub-department at checkpoint or the Customs Sub-department where customs procedures for import of goods use for manufacturing contract purpose or production of commodities for export are completed”.

Point 5 Clause 22 Article 1 of Decree No. 08/2015/ND-CP guidance on enforcement of the customs law">59/2018/ND-CP dated April 20, 2018 on places at which customs procedures are carried out: “carried out at Sub-department of Customs at the checkpoint”.

However, declarants have carried out procedures for goods contained in return-refill containers at Investment Management Sub-department of Customs with procedure code A12.

Opinion: Declarants propose to make a declaration at Investment Management Sub-department of Customs to facilitate their procedures.

 (Ho Chi Minh City Customs)

If the return-refill containers are gas and liquid tankers with stable structure, used for containing and carrying gas, with marks and numbers fixed on the tank surface and carried and carried by heavy-duty vehicles as prescribed in Point c Clause 1 Article 49 of Decree No. 08/2015/ND-CP which is amended at Clause 22 Article 1 of Decree No. 08/2015/ND-CP guidance on enforcement of the customs law">59/2018/ND-CP , customs procedures shall be carried out at Sub-department of Customs at the checkpoint.

With regard to return-refill containers which contain other gas or liquid: customs procedure shall be carried out at Sub-department of Customs at the checkpoint or Sub-department of Customs where import procedure is carried out regarding goods used for processing, production of exported goods.

II. Enquiries as to Circular No. 39/2018/TT-BTC

Article 16

1

Clause 2 Article 16 on amendments to customs dossiers applied to imported goods neither stipulates that an original or copy is required regarding proof of origin as prescribed in a Circular of the Ministry of Finance on identification of origin of exported goods and imported goods nor specifies cases requiring proof of origin. So, whether proof of origin must be presented regarding all shipments or only shipments that declarants claim preferential tax rate or only in special cases.

 (Thanh Hoa Customs)

Regulations on submission of certificates of origin are specifically stipulated in Circular No. 38/2018/TT-BTC on verifying and determining origin of exported goods and imported goods; request Thanh Hoa Customs to comply with these regulations.

2

Circular No. 39/2018/TT-BTC dated April 20, 2018 of the Ministry of Finance has not stipulated how customs authorities retain e-dossiers. Should customs authority print e-documents on the System for retention purpose? If yes, which documents must be printed (only those photocopies of which are required or all of documents)?

If the declarant must scan and submit all required documents of the customs dossier (originals and copies, notarized copies) on the System, whether the customs authority only print required documents which are copies to be kept together with originals being hardcopies submitted in person by the declarant or print all e-documents which are to be kept together with originals being hardcopies submitted in person by the declarant?

Customs Department of Ho Chi Minh City requests: In order to manage and monitor required documents in a customs dossier and complete procedures for goods associated with declaration “taking goods to storage places”, “good release”, physical declarations and documentary evidence in the customs dossier should be required. While pending new guidelines for retention from the General Department of Customs, guidelines for printing and retention of customs declarations in Official Dispatch No. 5672/TCHQ-GSQL dated June 17, 2016 of the General Department of Customs shall keep applying.

 (Quang Ninh, Ho Chi Minh City Customs)

The customs authority is not required to print required documents in a customs dossier submitted by the declarant via the System for retention purpose. Except for documents originals of which are required (such as: licenses, certification of inspection by specialized agency, etc.) or documents arising during customs procedures (such as: record of inspection result, request for change of channels, requests for suspension of goods passing through customs controlled area, certification, offence notice, decision, etc.), the customs official shall manage and complete the dossier containing background information about a customs declaration (two first pages of the customs declaration without detailed commodity lines), enclosed with above-mentioned documents.

Article 18

3

- Pursuant to Point 2 of Official Dispatch No. 6376/TCHQ-GSQL dated July 14, 2015 of the General Department of Customs on guidelines for Circular No. 38/2015/TT-BTC on procedures applied to exported goods of 2 goods owners having goods consolidated into the same container.

Circular No. 39/2018/TT-BTC only provides guidelines for declaration in a case where goods consolidated into the same container of multiple export declarations of the same goods owner, no guidelines for goods consolidated into the same container of multiple export declarations of multiple goods owners. Does Official Dispatch No. 6376/TCHQ-GSQL dated July 14, 2015 of the General Department of Customs apply to aforesaid case?

 (Quang Nam Customs)

- On June 20, 2018, Sub-department of Customs at Moc Bai checkpoint received a shipment with 4 declarations (being granted customs clearance on the System) of 4 different declarants, consolidated into the same container, in which 3 declarations are registered at Sub-department of Customs at Moc Bai checkpoint and 1 declaration is registered at Sub-department of Customs of Investment-Processing Management in Hanoi.

Due to the fact that the shipment has been taken to the Moc Bai checkpoint, in order to facilitate the export of goods and ensure the management and supervision of customs, the Sub-department of Customs allows the declaration to register and supervision for every declaration; if the goods are conformable with the declaration, they are allowed to be exported through Moc Bai checkpoint as prescribed.

However, if regulations on Circular No. 39 apply, declarants operating in Tay Ninh seeking to have their goods consolidated into the same container with other goods owners for export shall deliver the goods to CFS service providers in Ho Chi Minh City or vicinities, and then to Sub-department of Customs of Moc Bai checkpoint for supervision before being exported abroad; or other declarants register export declarations at other provinces/cities, and then deliver the goods to Sub-department of Customs of Moc Bai checkpoint for export. In specific, Moc Bai checkpoint and other checkpoints in Tay Ninh have not any CFS service provider for consolidating goods of different goods owners in the same container for export abroad.

Therefore, if the goods consolidated into the same container of multiple goods owners do not pass through CFS as prescribed in Clause 32 Article 1 of Circular No. 39/2018/TT-BTC but being delivered to export checkpoint for export, which actions should be taken when Tay Ninh has not any CFS service provider.

 (Tay Ninh Customs)

Pursuant to Clause 4 Article 4 and Clause 3 Article 61 of the Law on Customs:

- Container freight station (CFS) is warehouse or storage yard used for consolidation and de-consolidation of goods in the same container of multiple goods owners.

- Goods entering CFS include imported goods which have not undergone customs procedures, or exported goods which have undergone customs procedures or those with customs declaration registered but their physical inspection will be carried out at the CFS.

In addition, while initiating the automatic system of supervision and monitoring of goods at seaport, certain difficulties concerning exported goods consolidated into the same container of multiple goods owners beyond CFS or checkpoint area arise. Therefore, Circular No. 39/2018/TT-BTC amends regulations of Circular No. 38 on consolidation and deconsolidation of shipments in the same container of multiple goods owners, under which, consolidation and deconsolidation of goods shall be carried out in CFS. Guiding documents not in accordance with Circular No. 39 shall not keep valid.

Request Customs Departments of provinces shall guide declarants to apply aforesaid regulations to consolidate goods into the same container in accordance with Clause 32 Article 1 of Circular No. 39/2018/TT-BTC.

4

According to reports sent by declarants, the System does not allow scanned documents with capacity of more than 2 MB or files containing figures (including split files); in case of split files, declarants must insert information of documents multiple times. This problem prevents customs officials from inspecting and comparing dossiers.

Ho Chi Minh City Customs requests: Regarding a customs dossier with capacity of more than 2 MB, the declarant is allowed to submit physical documents in the customs dossier.

 (Quang Ninh, Ho Chi Minh City Customs)

Required documents of a customs dossier may be now sent via the System, therefore, units shall provide declarants with guidelines for sending them via the System.

If a customs dossier exceeds the allowed capacity of the System, the declarant is allowed to submit physical required documents in the dossier, except for documents issued on the national single-window system.

The General Department of Customs acknowledges the enquiry for further upgrade of the System.

5

Pursuant to Point a, Clause 1, Article 18 of Circular No. 38/2015 which is amended at Clause 7, Article 1 of Circular No. 39/2018: certain documents are not available at the declaration or submission time, for example: receipts of charges for delivery orders, sampling records for inspection by specialized agency in case of sampling at checkpoints, etc.; these documents often arise when the declarant comes to the checkpoint for receiving goods. Pursuant to applicable regulations, the declarant must send aforesaid documents to its office for converting them into e-documents, and then send them to the system of the customs authority; this lengthens the declarant’s time of customs declaration.

 (Quang Ninh Customs)

Required documents in a customs dossier are specified in Article 16 of Circular No. 38, units are requested to comply with it. Documents required by the customs authority during documentary inspection and physical inspection of goods which are specified in Circular No. 39/2018/TT-BTC shall be submitted via the System.

6

Currently, a declarant cannot separate a bill of lading declared on VNACCS prescribed in Point b Clause 7 Article 1 of Circular No. 39/2018/TT-BTC if the importer has a bill of lading for multiple declarations. Guidelines for this cases is needed.

 (Khanh Hoa, Ho Chi Minh City Customs)

Currently, the System has not supported a function that separates a bill of lading in a case where an importer has a bill of lading for multiple declarations, therefore, units should guide declarants to insert the following in the note box: “Vận đơn… chung với các tờ khai …” (Declarations….share a bill of lading…)

Article 20

7

Pursuant to sub-point a.2 Point a Clause 1 Article 20, if a declarant makes an additional declaration after the customs authority notifies channel selectivity but it has not verified the dossier (in case of orange channel, red channel), actions against violations still be taken. However, Decree No. 08/2015/ND-CP guidance on enforcement of the customs law">59/2018/ND-CP and Circular No. 39/2018/TT-BTC have just set forth violations, whilst Decree No. 127/2013/ND-CP have not set forth acts and fines, therefore, the customs authority has no grounds for imposing fines.

 (Hanoi, Lang Son, Ho Chi Minh City, Hai Phong Customs)

Actions against administrative violations shall be taken in accordance with Decree No. 127/2013/ND-CP and Decree No. 45/2016/ND-CP. If above-mentioned Decrees has not set forth regulations on specific violations and sanctions thereof, there are no grounds for issuing a decision on penalties for administrative violations. The General Department of Customs acknowledges the enquiry and study for further amendments to relevant documents for actions against customs-related administrative violations.

8

Pursuant to Point a4 Clause 2 Article 20 of Circular No. 39/2018/TT-BTC: if an declarant changes name of a mean of transportation but not changes the loading port or export checkpoint, do guidelines provided therein apply?

 (Hanoi Customs)

In this case, the customs authority of checkpoint shall monitor the process that goods are loaded on the mean of transportation and guide the declarant to provide name of another mean of transport used for exit of goods as prescribed.

9

Pursuant to Clause 9, Article 1 of Circular No. 39, a declarant must additionally declare quantity of goods actually exported or imported within 5 working days from the date on which the goods pass through the customs controlled area. When a declaration is granted customs clearance, customs officials cannot send a direction or a notification to the declarant, they may only make a call or send a written request to the declarant for additional declaration of actual quantity. AMA declaration shall be used for additional declaration.

Pursuant to Point 3.b.2, Clause 9, Article 1 of Circular No. 39/2018/TT-BTC “Within 2 working hours from the moment which complete additional declaration is received, the customs official shall process and give a notification of verification result on the System, if the additional declaration is rejected, explanation shall be provided”. However, the software has not been integrated, so that declarants still use AMA declaration for additional declaration and send requests for addition via online public service portal, customs officials shall receive requests and give responses to declarants via the online public service portal. Accordingly, receipt and modification of 1 green-channel declaration regarding special bulk goods take a lot of time. This problem prevents declarants and customs officials from following procedures for modifications and addition of declarations.

 (Quang Ninh Customs)

Pursuant to Clause 9, Article 1 of Circular No. 39, a declarant is responsible for declaring additional quantity of goods actually exported or imported within 5 working days from the day on which the goods enter the customs controlled area. If the declarant fails to make an additional declaration after above-mentioned period, the customs authority shall apply tax imposition (if any).

If a declarant makes an additional declaration using post-customs clearance additional declaration (via AMA/AMC), the customs official as assigned shall verify the declaration and propose actions to be taken as prescribed, after the Manager approves that the official uses CAM practices to give a notification of result to the declarant.

Request units to guide declarants that if they make an additional declaration on e-customs system, they are not required to do so on the online public service portal.

10

Pursuant to Point a.1 Clause 2 Article 20 which is amended in Clause 9 Article 1 of Circular No. 39/2018/TT-BTC: Regulation on additional declaration using Form No. 05 Appendix II of Circular No. 39/2018/TT-BTC: post-clearance additional declaration.

During dealing with an additional declaration post clearance, there is a lack of window for searching and assigning AMA declaration on VNACCS and there is a lack of function that attaches files containing figures proving the additional declaration via the System.

 (Quang Ninh Customs)

The General Department of Customs acknowledges enquiries of units for upgrading the System in coming time.

Article 22

11

Pursuant to Point 1.a.1 Clause 11 Article 1 of Circular No. 39/2018/TT-BTC dated April 20, 2018 on cases of declaration cancellation: “After 15 days from the date on which an import customs declaration is registered, the goods have not arrived at the import checkpoint”

In practice, there is a case that goods have arrived at the checkpoint and a declaration has been registered, but the declarant has not presented goods and dossier to the customs authority for physical verification while the declaration is 15 days overdue from its registration date.

Pursuant to Clause 2 Article 25 of the Law on Customs: A declaration shall keep valid for customs procedure purpose for a period of 15 days from its registration date.

Guidelines for the aforesaid cases of cancellation of declarations are needed.

 (Ho Chi Minh City Customs)

Pursuant to Clause 1 Article 22 of Circular No. 38/2015/TT-BTC which is amended in Clause 11 Article 1 of Circular No. 39/2018/TT-BTC, if the goods, in practice, have arrived the import checkpoint, customs procedures shall be kept conducting as prescribed without cancellation of declaration.

12

Declaration of in-country import (received imports from exporter designated by foreign trader) which has the same information with another declaration and is 15 days overdue from its registration date. However, this case does not fall under cases of cancellation of declarations as prescribed in Clause 11 Article 1 of Circular No. 39/2018/TT-BTC dated April 20, 2018 of the Ministry of Finance.

Request the General Department of Customs to provide guidelines

 (Can Tho Customs)

Request Customs Department of province to cancel such a declaration in a similar way to the case of System's breakdown prescribed in Point b.3 Clause 2 Article 22 of Circular No. 38/2015/TT-BTC which is amended in Clause 11 Article 1 of Circular No. 39/2018/TT-BTC.

Article 23

13

1. Inspection rule: Currently, inspection has been undertaken at a Sub-department of Customs as follows: the practice team shall assign declarations to receiving officials; under normal circumstances, an official shall receive more than 1 dossier at a time. The official shall preliminarily verify if dossiers are complete, and then carefully check them according to their number order. After verifying eligibility of dossiers, if the official discovers that a dossier is likely not eligible, he/she shall require the declarant to explain or submit supporting particulars, the process of checking eligibility lasts for more than 1 working hour. Is such a requirement deemed as a violation against Article 23 of Circular No. 39/2018/TT-BTC?

 (Hanoi Customs)

2. With regard to a green-channel declaration: The System will automatically receive that declaration and grant clearance of goods. Pursuant to Clause 12 Article 1 of Circular No. 39/2018/TT-BTC, does customs authority need to verify the completeness of such a customs dossier?

In accordance with applicable regulations and laws, completeness of customs dossiers are verified on the Ecustoms system. However, the Ecustoms system has not provided feedback via the system. So, will aforesaid feedbacks be given on the Ecustoms system or VNACCS (IDD, code A)?

 (Quang Ninh Customs)

Time limit for verifying completeness of a dossier shall only apply to orange-channel and red-channel declarations. Verification of completeness of a dossier shall be understood as comparing documents actually submitted and declared. During detailed verification, if documents submitted are considered insufficient or not accordant with regulations of law, the customs authority may request the declarant to submit additional documents.

The General Department of Customs will give specific guidelines for verification method at the customs practice process.

Article 31

14

Clause 3, Article 31, amended in Circular No. 39/2018/TT-BTC stipulates: Monitoring the sampling for inspection by specialized agency in customs area:

Specialized inspection agency is responsible for sampling and a record to certify the sampling is required.

The declarant shall give a notice of sampling for inspection by specialized agency using Form No. 17 Appendix II issued herewith to the Sub-department of Customs where the goods are stored via the e-customs system.

However, pursuant to Clause 3 Article 7 of Circular No. 27/2017/TT-BNNPTNT dated December 25, 2017 of the Ministry of Agriculture and Rural Development on guidelines for inspection of imported salt safety and quality: When a salt shipment arrives a checkpoint, the importer shall request the customs authority of checkpoint for sampling of salt as prescribed in Point c, Clause 3 of this Article. Sample of the exported salt shipment shall be taken in the witness of representative(s) of the customs authority of checkpoint, etc. The salt sample shall be affixed with a seal number of customs authority. A representative of importer and customs authority shall take a record to certify the imported salt sampling using a form prescribed in Appendix IV issued herewith.

Enquiries:

There is a conflict between Circular No. 39/2018/TT-BTC and Circular No. 27/2017/TT-BNNPTNT over regulation on agencies in charge of taking samples for inspection by specialized agency.

According to reports of declarants following customs procedures at Sub-department of Customs which represents an inspection agency specialized in imported salt still comply with Circular No. 27/2017/TT-BNNPTNT , not comply with Circular No. 39/2018/TT-BTC.

Alternatively, form No. 17, Appendix issued together with Circular No. 39/2018/TT-BTC has not been available on a data system of customs authority (VNACC/VCIS, Ecustoms). It also is unable to receive notifications or reply to notifications of declarants upon execution of aforesaid requests.

 (Hanoi Customs)

Pursuant to Point b Clause 2 Article 33 of Decree No. 08/2015/ND-CP (which is amended Decree No. 08/2015/ND-CP guidance on enforcement of the customs law">59/2018/ND-CP): “Specialized inspection agency shall take samples of exported goods or imported goods at the premises as informed by the declarant; in case of taking samples in customs area, the customs authority shall monitor the sampling according to risk management rules”, the General Department of Customs acknowledges these enquiries and discuss in writing with the Ministry of Agriculture and Rural Development later. In the short term, to avoid bottleneck of goods at checkpoints, request Customs Department of province to keep comply with Circular No. 27/2017/TT0-BNNPTNT.

Article 32

15

Clause stipulates that a declarant must submit a request for taking goods to storage places to the Sub-department of Customs where the declaration is registered via the System, including:

- The request for taking goods to storage places shall use form No. 18 Appendix II issued herewith;

- A sampling record taken at a checkpoint must bear certification of the specialized inspection agency.

Enquiry: Until now, specialized inspection agency has not taken samples of imported salt; the sampling record issued together with Circular No. 27/2017/TT0-BNNPTNT has no section for certification by specialized inspection agency, therefore, the declarant cannot submit a sampling record to the customs authority as prescribed.

 (Hanoi Customs)

In this case, the declarant shall submit a sampling record using the form prescribed in Appendix IV issued together with Circular No. 27/2017/TT-BNNPTNT when making a request for taking goods to storage places.

16

Pursuant to Clause 3 Article 32 Circular No. 38/2015/TT-BTC which is amended in Clause 21 Article 1 of Circular No. 39/2018/TT-BTC: Food quality and safety must be inspected; if a specialized inspection agency directs to take goods to the inspection site as per the law on inspection by specialized agency, the declarant shall send a request for taking goods to the inspection site using Form No. 18 Appendix II.

In the Form No. 18: Section 18.9 Code of storage place, Section 18.10 name of storage place, may multiple places be inserted in these 2 sections? In practice, with regard to imported animal feed materials, according to a temporary quarantine certification issued by a quarantine authority, a consignment in 1 declaration may be taken to multiple storage places.

 (Hanoi Customs)

Currently, the General Department of Customs has built a system facilitating exchange of information about storage of goods between declarants and customs authorities. While pending the system going into operation, a request for taking goods to storage places shall use form No. 09/BQHH/GSQL Appendix V issued together with Circular No. 38. Alternatively, this Circular does not prevent goods from being stored in different places, however, the declarant must make a duly completed declaration of storage places.

17

Pursuant to Point b.1.4.2 Clause 3 Article 32 of Circular No. 38 which is amended in Clause 21 Article 1 Circular No. 39: If a storage place is an inspection site located at a construction site or manufacturing facility recognized by the Director of Customs Department of province as prescribed in Article 102 of this Circular: 1 copy of a recognition decision is required.

However, each inspection site is granted a code, so that it is unnecessary to submit a photocopy. Alternatively, the system now has not provided time limit of inspection site (VNACCS).

 (Quang Ninh Customs)

Request Customs Departments of provinces to comply with Clause 3 Article 32 of Circular No. 38/2015/TT-BTC which is amended in Clause 21 Article 1 of Circular No. 39/2018/TT-BTC.

The General Department of Customs acknowledges the enquiry to build a single system for management of inspection sites nationwide and not request declarants to submit copies of recognition decisions.

18

Pursuant to Point b.3 Clause 5 Article 32 of Circular 38 which is amended in Clause 21 Article 1 of Circular No. 39, Sub-department of Customs shall: Update a list of violating declarants that are not allowed to take goods to storage places as prescribed in Clause 5 of this Article on the e-customs system.

Currently, customs authorities only update dossiers associated with violations on QLVP14; there are no guidelines for where to insert these kinds of information on the e-customs system.

 (Quang Ninh Customs)

Currently, the General Department of Customs has built a system to enable units to update information about declarants not allowed to take their goods to storage places, in the short term, units are requested to give notices of such declarants to Customs Departments of other province for supervision.

19

Pursuant to sub-point b Point 5 Clause 21 Article 1 of Circular No. 39/2018/TT-BTC on responsibilities of Sub-department of Customs where the declaration is registered in inspection of storage of goods:

 “b.1.1) Upon expiry of 30 days from the day on which the goods are taken to storage places but no specialized inspection certification is received and the specialized inspection agency has not issued a document certify an extension of inspection period. While pending further actions, the declarant may not take their subsequent consignments to storage places”

May such a regulation be understood as declarants may not take their goods to storage places nationwide? If a list of declarants not allowed to take goods to storage places nationwide is updated, whether time limit for such restriction will commence from the day of 31^st because of Point 6 Clause 21 Article 1 of Circular No. 39/2018/TT-BTC:

a) Within 1 year from the date on which a customs authority takes a record to certify violation as to failure to keep goods in their original condition…

b) Within 6 months from the date of a decision on penalty for violation as to failure to submit an specialized inspection certification.

So, whether time limit for taking goods to storage places is 6 month or 1 year because it is unable to determine if the declarant commits a violation as prescribed in sub-point a Point 6 Clause 21 Article 1 of Circular No. 39/2018/TT-BTC.

 (Lang Son Customs)

Pursuant to Point b.1.1 Clause 5 Article 32 of Circular No. 38/2015/TT-BTC which is amended in Clause 21 Article 1 of Circular No. 39/2018/TT-BTC, upon expiry of 30 days from the day on which the goods are taken to storage places but no specialized inspection certification is received and the specialized inspection agency has not issued a document certify an extension of inspection period in order for the Sub-department of Customs where the declaration is registered carries out an inspection. If the inspection shows that the late submission of specialized inspection by a cause for which the declarant is responsible, the declarant shall be imposed administrative penalties and restricted from taking goods to storage places as per the law. Therefore, while an inspection is being carried out, restriction of a declarant from taking goods to storage places applies solely within the scope of Sub-department of Customs where the declaration is registered.

Article 50

20

Currently, Sub-departments of Customs have carried out procedures for supervising exported goods international railway after completing customs procedures at Sub-departments of Customs and other Sub-departments of Customs beyond the checkpoint affiliated to Customs Departments nationwide. After completing customs procedures, exported goods will be delivered on means of transport to Yen Vien international railway and then being loaded on international railway cars for export. If a declarant declares “VNYCHN-Yen Vien” in “Mã địa điểm xếp hàng”(loading site code), the goods will be loaded on means of transport used for exit of goods at Yen Vien train station, aforesaid cars will be delivered to Dong Dang train station in Lang Son for replacement of a locomotive for continued delivery to China (without change of freight cars in case of delivery of goods using containers).

Pursuant to provisions in Clause 28 Article 1 of Circular No. 39/2018/TT-BTC which amends Article 50 of general provisions on goods delivered under customs supervision, there is no guideline for customs supervision of such a case above (goods delivered from an international railway station inland to an international railway station at border for export).

Enquiries:

- With regard to such a case above, how Sub-department of Customs of Yen Vien train station conduct customs supervision?

- Will Sub-department of Customs of Yen Vien train station or the train station at border certify that the goods passed through customs controlled area on its system?

 (Hanoi Customs)

Customs procedure and customs supervision applied to goods delivered from an international railway station inland to an international railway station at border for export shall be the same as independent transport procedure prescribed in Article 51b of Circular No. 39/2018/TT-BTC.

Sub-department of Customs that has authority over the inland international-railway station shall certify that the goods passed through the customs controlled area promptly after certifying departure of goods (BOA) on the system.

21

Section 6.1 Appendix 2 issued together with Circular No. 39/2018/TT-BTC stipulates as follows: Items related to a declaration of transportation (OLA):

7.17. Estimated delivery date

An estimated delivery date must fall on or after the estimated departure date.

With regard to goods delivered by road, the estimated delivery period does not exceed 1 day in case of a distance of under 500km and not exceed 3 days in case of a distance of at least 500km.

When carrying out transit procedure from Sub-department of Customs of Dong Dang international railway station to Moc Bai checkpoint (Tay Ninh), goods in transit are delivered by railway (1.435m in width) from Dong Dang station to Yen Vien station, and then being transshipped to a mean of railway transport (1m in width), and thereafter being continuously delivered to Song Than station (Binh Duong, and finally being transshipped to a mean of road transport to Moc Bai checkpoint. In practice, it is likely impossible to deliver the goods in transit from Dong Dang international railway station to Moc Bai checkpoint within 3 days.

Section 6.3 Appendix 2 issued together with Circular No. 39/2018/TT-BTC stipulates as follows: Items allowed for additional declaration after goods are certified by the customs authority that are eligible for departure on the system (BOA) and before the moment that the customs authority updates arrival of goods on the system (BIA): (1) Estimated delivery date; (2) Estimated delivery period

Accordingly, if a declarant makes an additional declaration of the estimated delivery period exceeding 3 days after goods are certified by the customs authority that are eligible for departure on the system (BOA) and before the moment that the customs authority updates arrival of goods on the system (BIA), does customs authority where the goods departs accept this?

 (Lang Son Customs)

In the item 7.17, the estimated delivery date in form No. 07 Appendix I issued together with Circular No. 39/2018/TT-BTC in replacement of Appendix II of Circular No. 38/2015/TT-BTC solely applies to the road and inland waterways, not applying to other modes of transport. Therefore, if goods are delivered using multimodal transport (combination of road and railway), the estimated delivery period shall be registered by the declarant.

Article 56

22

Regarding time limit for prior notification of manufacturing facility given by an export processing enterprise:

Point b Clause 1 Article 37 of Decree No. 08/2015/ND-CP on responsibilities of importers who import goods and materials for processing or manufacturing exported goods: “1. Before carrying out import declaration of the initial shipment of materials, supplies, machinery, equipment for processing or manufacturing exported goods, following documents must be submitted to the Sub-department of Customs where final accounts are

b) A prior notification of facility that processes or manufactures exported goods or a storage place of materials, supplies, machinery, equipment and exported products, using the form promulgated by the Ministry of Finance: 1 original.”

However, Point a Clause 1 Article 56 of Circular No. 38/2015/TT-BTC which is amended in Clause 36 Article 1 of Circular No. 39/2018/TT-BTC also specifies that an export processing enterprise is required to give a prior notification of manufacturing facility but no time limit is mentioned.

Proposal: Before carrying out import declaration of the initial shipment of materials, supplies, machinery, equipment for processing or manufacturing exported goods, the export processing enterprise must give a prior notification of facility that processes or manufactures exported goods or a storage place of materials, supplies, machinery, equipment and exported products.

 (Quang Ngai Customs)

Article 56 generally governs a prior notification of manufacturing facility given by entities engaging in processing and manufacturing of exported goods, including export processing enterprises. Accordingly, before carrying out import declaration of the initial shipment of materials, supplies, machinery, equipment for processing or manufacturing exported goods, the export processing enterprise must give a prior notification of manufacturing facility as prescribed.

23

Pursuant to Clause 36 Article 1 of Circular No. 39/2018/TT-BTC on “Prior notification of processing facility, etc.; processing contract or appendices thereof": Number of processing contract or appendix of processing contract shall be inserted in the box “number of permits on export or import declaration” However, how declaration may be made when the number of processing contract or appendix of processing contract is more than 10? (because the box “number of permits on export or import declaration" only has 5 fields equivalent to 5 numbers).

 (Quang Nam Customs)

According to the design of VNACCS, the item “Import permit/export permit" on the import/export declaration is available for only 5 kinds of permits. From the commencement of VNACCS/VCIS (in 2014), there has been no case in which more than 5 kinds of permits are stated in a declaration, therefore, Customs Department of Quang Nam is requested to send a detailed report in order for the General Department of Customs to provide guidelines promptly.

24

Although sub-point a Point 2 Clause 36 Article 1 of Circular No. 39/2018/TT-BTC stipulates that number of processing contract on export declaration or import declaration shall be declared in the box “Import permit”,

The declarant is unable to do that because the software has no field for inserting number of processing contract. It is known that the software provider has not updated this item.

 (Ho Chi Minh City Customs)

Currently, the end-to-end software provider has designed such as required. Request Customs Departments of provinces to guide enterprises to update the latest version of end-to-end software.

Article 57

25

Circular No. 39/2018/TT-BTC on amendments to Circular No. 38/2015/TT-BTC does not stipulate inspection visit to premises of export processing enterprises. However, Point a Clause 1 Article 39 of Decree No. 08/2015/ND-CP which is amended in Clause 7 Article 1 of Circular No. 08/2015/ND-CP guidance on enforcement of the customs law">59/2018/ND-CP on “Inspection visit to premises of processing and manufacturing facilities, inspection of processing and manufacturing capacity" stipulates cases subject to inspection as follows: “a) Entities initially importing goods for processing or manufacturing exported goods;”.

Proposal: Export processing enterprises must have premises of entities initially importing goods for processing or manufacturing exported goods inspected as prescribed in Clause 7 Article 1 of Decree No. 08/2015/ND-CP guidance on enforcement of the customs law">59/2018/ND-CP .

 (Quang Ngai Customs)

Inspection visit to premises of manufacturing facilities prescribed in Article 57 of Circular No. 38/2015/TT-BTC which is amended in Clause 37 Article 1 of Circular No. 39/2018/TT-BTC generally applies to any entity engaging in processing and manufacturing of exported goods, therefore, initial import in the form of an export processing enterprise is also subject to inspection visit to premises.

26

Currently, final accounts of materials and supplies imported used for manufacturing exported goods shall be inspected as prescribed in Post-customs clearance inspection process issued together with Decision No. 1410/QD-TCHQ dated May 14, 2015 of the General Department of Customs. Request the General Department of Customs to promptly promulgate a customs procedure for inspection of final accounts of materials and supplies imported used for manufacturing exported goods.

 (Ca Mau Customs)

Inspection of materials and supplies in use, inspection of final accounts shall be carried out in accordance with guidelines in Decision No. 1966/QD-TCHQ.

Article 60

27

Inspection of final accounts as to processed or manufactured goods for export: Make amendments to procedure for receipt, inspection and handling related to Clause 39 Article 1 of Circular No. 39/2018/TT-BTC on amendments to Article 60 of Circular No. 38/2015/TT-BTC , including inspection of final accounts; amendments to final accounts.

 (Quang Ngai Customs)

The General Department of Customs acknowledges this proposal to formulate a decision as a substitute of Decision No. 1966/QD-TCHQ.

28

Point 3.a, Clause 39 Article 1 of Circular No. 39/2018/TT-BTC dated April 20, 2018 “on amendments to Article 60 of Circular No. 38/2015/TT-BTC dated March 25, 2015” does not stipulate that any enterprise which submits final accounts for first time shall has its final accounts inspected and transitional provisions does not also mention it.

 (Ho Chi Minh City Customs)

Inspection of final accounts as prescribed in Circular No. 39/2018/TT-BTC must be carried out in accordance with risk management rules. The General Department of Customs will provide guidelines in the procedure as a substitute for the procedure issued together with Decision No. 1966/QD-TCHQ.

Article 64

29

Procedure for treatment for redundant materials and supplies, scrap, waste; leased or borrowed machinery and equipment regarding processing contract:

Circular No. 39/2018/TT-BTC repeals provision on notification of plan on treatment for redundant materials and supplies, scrap, waste; leased or borrowed machinery and equipment.

Proposal: Make amendment to provision on receipt of notification of plans on treatment for redundant materials and supplies, scrap, waste; leased or borrowed machinery and equipment prescribed in Article 19 of Decision No. 1966/QD-TCHQ in accordance with Circular No. 39.

 (Quang Ngai, Ho Chi Minh City Customs)

The General Department of Customs acknowledges this enquiry to formulate a procedure as a substitute for the Decision No. 1966/QD-TCHQ.

III. System-related enquiries

30

- In order to facilitate implementation of e-customs procedures prescribed in new Decree and Circular, request the General Department of Customs to disclose procedures available on the System and meeting e-information transmission requirements; provide road map and tasks to be performed regarding procedures not available on the System or available on the System but not meeting e-information transmission requirements.

 (Thanh Hoa, Hanoi, Ho Chi Minh City Customs)

- According to guidelines prescribed in Appendix II of Circular No. 39/2018/TT-BTC, enterprises are required to make following notifications: Notification of separating bills of lading regarding imported goods (Form No. 12), notification of imported goods’ details in case of absence of a bill of lading (Form No. 13), bill of lading, notification of details about goods to be exported (Form No. 14), notification of consolidation of goods from multiple export declarations into the same container (Form No. 15), etc. However, currently, enterprises are unable to make such a notification on the System.

Forms No. 17, 18, 19 Appendix II issued together with Circular No. 39 solely stipulate e-notifications, not physical notifications. Therefore, request General Department of Customs to provide guidelines for forms of physical notifications.

 (Quang Nam, Can Tho, Quang Ninh Customs)

Currently, the General Department of Customs has cooperated with the software company to improve such a function on the System and put it into operation soon. After improvement, the General Department of Customs shall provide training and guidelines for officials. While awaiting administrative procedures officially put into operation on the System, request units to guide enterprises to use Forms issued together with the Circular or on the online public service portal.

31

Currently, enterprises have successfully declared processing contracts or appendix thereof and sent then to the e-customs system to receive receipt numbers. However, enterprises cannot search information about such processing contracts or appendix thereof on the System.

 (Quang Nam Customs)

In order to search information about processing contracts declared on the system that manages processed and manufactured goods for export, perform the function VI. Search information => 1. Search declared documents => 1.02. Search processing contract.

32

Currently, it is unable to declare the item “permit” on an export declaration because VNACCS has not been upgraded and updated. Whilst pending the System upgrade, Sub-department of Customs temporarily guides enterprises to declare permits associated with coal and bauxite in the notes section in the declaration.

 (Quang Ninh Customs)

Declaration of item “Export permit” prescribed in Point 2.33 Appendix I issued together with Circular No. 39/2018/TT-BTC as a substitute for Appendix II issued together with Circular No. 38/2015/TT-BTC , request units to guide declarants to comply with the regulation.

With regard to goods not subject to export/import permit-based management or in a case where the specialized inspection agency has not issued a notification of specialized inspection result or an equivalent document, while the declarant is only required to submit documentation substantiating goods’ eligibility for export or import (for example supporting particulars for legitimate origin of exported coal, etc.), units shall guide the declarant to declare number and date of documentation in the item “notes” of the customs declaration.

33

Box 2.19 Appendix I of Circular No. 39/2018/TT-BTC as a substitute for Appendix II of Circular No. 38/2015/TT-BTC in terms of guidelines for declaration of importer’s name stipulates as follows: “If a sales contract has a term on delivery of goods to designated consignee in Vietnam (in-country export), insert the foreign buyer’s name in the box “importer’s name”; insert designated consignee’s name (in Vietnam) in the box “import trustor’s name”.

Enquiry: There is no box for declaring import trustor’s name in the export declaration.

Proposal: Add another box for declaring import trustor’s name in the export declaration.

 (Hai Phong Customs)

Pursuant to form No. 02 Appendix I of Circular No. 39/2018/TT-BTC as a substitute for Appendix II of Circular No. 38/2015/TT-BTC in terms of item 2.19 importer’s name as follows: “If a sales contract has a term on delivery of goods to designated consignee in Vietnam (in-country export), the importer’s name is the foreign buyer’s name: insert the designated consignee’s name (in Vietnam) in the box “Notes””. Request Customs Departments of provinces to guide declarants to comply with this regulation.

34

With regard to declaration of quantity with decimal part exceeding 2 decimal places, as prescribed in 1.83 form No. 01 Appendix II “If the actual quantity has a decimal part exceeding 2 decimal places, the declarant must round it to 2 decimal places…, and declare the actual quantity and unit price in the box “Description of goods” according to the following rules: “description of goods&quantity” (do not declare unit in the box “Invoice unit”). According to guidelines, the invoice unit will be declared in box “description of goods", however, specific guidelines for declaration in this box is not mentioned. Alternatively, according to reports from enterprises, when decelerating according to abovementioned rules, description of goods inserted prior to quantity will disappear when being transmitted to the system of customs authority, leading to the fact that the customs authority only receives “&quantity”.

 (Quang Ngai Customs)

- If the quantity has a decimal part exceeding 2 decimal places, the declarant must round it to 2 decimal places…, and declare actual quantity and unit price in the box “Description of goods” according to the following rules: “description of goods&quantity”. The invoice unit is inserted in the box “description of goods” after above declaration and separated by a full stop (.)

- According to the system design, the declarant may insert up to 200 digits in the box “Description of goods”. If information to be inserted in the box “Description of goods” exceeds allowed number of digits, request the declarant to add declaration in the box “Notes” or attach a file (HYS practice).

35

Certain forms are not available although they are prescribed in Circular No. 39/2018/TT-BTC as “Form … of this Circular”. For example, amended Clause 1 Article 18 stipulates “declarant must duly complete customs declaration as prescribed in Form No. 01 or 02 Appendix II issued herewith”, however theses forms are actually in Appendix I issued together with Circular No. 39/2018/TT-BTC; Article 55 stipulates that “consumption rate… determined in Form No. 27 in Appendix II issued together with this Circular”, however this must be form No. 16/DMTT/GSQL in Appendix II.

Circular No. 39/2018/TT-BTC has two kinds of Forms: One category includes forms which are used via the System; the other includes physical forms which are used when the System fails to meet certain requirements or breaks down.

36

Recording the subtraction of e-C/O regarding goods from a foreign country to a bonded warehouse for multiple imports:

Pursuant to Article 23 of Circular No. 38/2018/TT-BTC on recording the subtraction of C/O: “A declarant registers recording of the subtraction of C/O on the e-customs system according to form No. 01/CT/DTTL/GSQL Appendix IV issued herewith, submit a copy of C/O via the e-customs system and 1 original of C/O to Sub-department of Customs that has authority over the bonded warehouse before registering an import customs declaration of initial shipment from the bonded house to inland”.

Proposal: Guideline for recording the subtraction of e-C/O is needed.

 (Ho Chi Minh City Customs)

The General Department of Customs acknowledges this enquiry to build the System, in the short term, request units to record the subtraction of recorded/declared imports from the import quota in physical form.