Thông tư 79/2009/TT-BTC

THE MINISTRY OF FINANCE ------	SOCIALIST REPUBLIC OF VIET NAM Independence - Freedom – Happiness --------
No. 79/2009/TT-BTC	Hanoi, April 20, 2009

 

CIRCULAR

GUIDING CUSTOMS PROCEDURES; CUSTOMS INSPECTION AND SUPERVISION; IMPORT DUTY, EXPORT DUTY AND TAX ADMINISTRATION APPLICABLE TO IMPORTS AND EXPORTS

Pursuant to Customs Law No. 29/2001/QH10 of June 29, 2001, and Law No. 42/2005/QH11 of June 14, 2005, Amending and Supplementing a Number of Articles of the Customs Law;
Pursuant to Law No. 45/2005/QH11 of June 14, 2005, on Import Duty and Export Duty;
Pursuant to Law No. 78/2006/QH10, of November 29, 2005, on Tax Administration;
Pursuant to Law No. 01/2002/QH11 of December 16, 2002, on the State Budget;
Pursuant to the Government's Decree No. 154/2005/ND-CP of December 15, 2005, providing for customs procedures, inspection and supervision;
Pursuant to the Government's Decree No. 149/ 2005/ND-CP of December 8, 2005, detailing the implementation of the Law on Import Duty and Export Duty;
Pursuant to the Governments Decree No. 66/ 2002/ND-CP of July 1, 2002, providing for duty-­free quotas of luggage of passengers on entry and exit and imported donations and gifts;
Pursuant to the Government's Decree No. 12/2006/ND-CP of January 23, 2006, detailing the implementation of the Commercial Law regarding international goods trading and goods trading, processing and transit agency with foreign parties;
Pursuant to the Government's Decree No. 108/2006/ND-CP of September 22, 2006, detailing and guiding a number of articles of the Investment Law;
Pursuant to the Government's Decree No. 85/ 2007/ND-CP of May 25, 2007, detailing the implementation of the Law on Tax Administration;
Pursuant to the Government's Decree No. 29/ 2008/ND-CP of March 14, 2008, providing for industrial parks, export-processing zones and economic zones;
Pursuant to the Prime Minister's Decision No. 33/2009/QD-TTg of March 2, 2009, promulgating financial mechanisms and policies applicable to border-gate economic zones;
Pursuant to the Government's Resolution No. 30/2008/NQ-CP of December 11, 2008, on urgent solutions to curb economic decline, maintain economic growth and ensure social welfare;
Pursuant to the Government's Decree No. 118/2008/ND-CP of November 27, 2008, defining the functions, tasks, powers and organizational structure of the Ministry of Finance;

The Ministry of Finance guides customs procedures; customs inspection and supervision; import duty and export duty and tax administration applicable to imports and exports, and means of transport on entry and exit or in transit as follows:

Part 1

GENERAL GUIDANCE

Article 1. Scope of regulation

This Circular guides customs procedures; customs inspection and supervision; import duty, export duty and tax administration applicable to imports, exports, goods in transit and means of transport on entry and exit or in transit.

Article 2. Objects not liable to import duty and export duty

1. Goods in transit or transported from or to Vietnamese border gate as prescribed by law.

2. Goods specified in Clauses 2, 3 and 4, Article 2, of the Government's Decree No. 149/2005/ND-CP of December 8, 2005, detailing the implementation of the Law on Import Duty and Export Duty.

Article 3. Principles on customs procedures, customs inspection and supervision and tax administration

1. Customs procedures, customs inspection and supervision and tax administration shall be carried out on the principles prescribed in Article 3 of the Government's Decree No. 154/2005/ND-CP of December 15, 2005, providing for customs procedures, customs inspection and supervision; and Article 4 of the Law on Tax Administration.

2. Customs offices shall apply risk management in customs inspection of imports, exports, goods in transit and means of transport on entry and exit and in transit on the basis of the results of information analysis and assessment of the law observance by customs declarants and taxpayers, giving priority to and favoring goods owners who have a good record of observance of the customs law as prescribed in Clause 2, Article 6, of the Government's Decree No. 154/2005/ND-CP

3. Inspection forms and levels shall be determined on the basis of:

a/ Results of information analysis and risk assessment in the management of imports and exports;

b/ Information on signs of violation of the customs law;

c/ Random selection to assess the degree of law observance by entities subject to customs management.

The application of risk management methods complies with the Finance Minister's Decision No. 48/2008/QD-BTC of July 4, 2008, providing for the application of risk management methods in customs professional operations.

4. Goods owners with a good record of observance of the customs law are those who satisfy the following conditions:

a/ Being involved in import or export activities in the period of three hundred and sixty five days by the date of registration of the customs declaration for the imports or exports lot and being certified by the customs office as:

a.1. Not having been handled for acts of smuggling or illegally transporting goods across the border;

a.2/ Not having been handled for acts of tax evasion or fraud;

a.3. Having been handled twice at most for other customs-related violations (including acts of making false declarations leading to a decrease in payable tax amounts or an increase in exempted, reducible or refundable tax amounts) each carrying a fine level falling beyond the competence of district-level Customs Department heads prescribed in the Ordinance on Handling of Administrative Violations:

b/ At the time of customs declaration registration, having no tax arrears which are overdue for more than 90 days counting from the tax payment deadline;

c/ Paying value-added tax by the credit method.

5. Taxpayers satisfying the conditions specified at Point a. Clause 4, Article 42, of the Law on Tax Administration are those who:

a/ Are involved in import or export activities in the period of at least three hundred and sixty five days by the date of customs declaration registration;

b/ Properly observe the customs law as prescribed in Clause 4 of this Article:

c/ Owe no overdue tax and fine arrears at the time of customs declaration registration.

6. Imports and exports of goods owners who have repeatedly violated the customs law are subject to the inspection level specified at Point b, Clause 2, Article 11, of Decree No. 154/2005/ND-CP.

Goods owners who have repeatedly violated the customs law are those who are involved in import or export activities in the period of three hundred and sixty five days by the date of registration of the customs declaration for the import or export lot and have been handled thrice for customs-related administrative violations (including acts of making false declarations leading to a decrease in payable tax amounts or an increase in exempted, reducible or refundable tax amounts) each carrying a fine level falling beyond the sanctioning competence of district-level Customs Department heads prescribed in the Ordinance on Handling of Administrative Violations or have been handled once for a customs-related administrative violations carrying a fine level falling beyond the sanctioning competence of provincial-level Customs Department directors.

Article 4. Post-custom clearance inspection

Imports and exports which have been cleared from customs procedures are subject to post-custom clearance inspection under Chapter VI of Decree No. 154/2005/ND-CP and Part VI of this Circular.

Article 5. Rights and obligations of customs declarants and taxpayers; responsibilities and powers of customs offices and officers

1. Customs declarants and taxpayers shall exercise the rights and perform the obligations specified in Article 23 of the Customs Law; Articles 6, 7 and 30 of the Law on Tax Administration; Article 56 of Decree No. 154/2005/ND-CP; and Article 4 of the Government's Decree No. 85/2007/ ND-CP of May 25, 2007, detailing the implementation of the Law on Tax Administration.

2. Customs declarants and taxpayers shall make certification, sign and seal on vouchers and documents compiled by themselves in customs dossiers, additional declaration dossiers, liquidation dossiers, tax finalization dossiers, dossiers of request for tax exemption, reduction, refund and non-collection, dossiers of request for handling of overpaid tax amounts, dossiers of request for tax payment delay and dossiers of request for clearance of tax and fine debts, and papers being copies, translation versions and other documents submitted to customs offices under the guidance in this Circular, and take responsibility before law for the accuracy, truthfulness and lawfulness of these papers.

3. Customs offices and officers shall perform the responsibilities and exercise the powers specified in Article 27 of the Customs Law; Articles 8 and 9 of the Law on Tax Administration and Article 57 of Decree No. 154/2005/ND-CP.

4. Customs-offices may consider and agree to conduct physical inspection of goods and make customs clearance out of working hours on the basis of prior written registration of customs declarants and their practical conditions.

5. Coordination between customs offices and customs declarants and taxpayers

a/ Customs offices shall guide customs procedures, supply information and documents and publicize customs and tax procedures for customs declarants and taxpayers to strictly abide by the customs and tax laws, excise their rights and perform their obligations in accordance with law.

b/ Customs declarants and taxpayers shall promptly supply to customs offices information on imports, exports, goods in transit, means of transport on entry and exit and in transit and violations of the customs law in order to contribute to ensuring a fair competition environment for commercial activities.

c/ The coordination and exchange of information between customs offices and customs declarants and taxpayers may be effected under memorandums of understanding to ensure fulfillment of obligations and responsibilities by signatories.

Part II

CUSTOMS PROCEDURES; CUSTOMS INSPECTION AND SUPERVISION; AND TAX ADMINISTRATION OF COMMERCIAL IMPORTS AND EXPORTS

Chapter 1.

GENERAL GUIDANCE ON CUSTOMS PROCEDURES AND TAX ADMINISTRATION

Article 6. Commercial imports and exports

Commercial imports and exports defined in Section 1, Chapter II of Decree No. 154/2005/ND-CP include:

1. Goods imported or exported under goods trading contracts;

2. Goods temporarily imported for re-export;

3. Goods transported from or to border gate;

4. Goods imported or exported by mode of importing raw materials for export production;

5. Goods imported or exported for the performance of processing contracts signed with foreign traders;

6. Goods imported or exported for the implementation of investment projects;

7. Goods imported or exported across the land borders;

8. Goods imported or exported for commercial purposes by organizations (without tax identification 9. numbers or import/export business codes) or individuals;

9. Goods imported or exported by export-processing enterprises;

10. Goods brought into or out of tax suspension warehouses;

11. Goods temporarily imported for re-export or temporarily exported for re-import for participation in trade fairs or exhibitions;

12. Goods temporarily imported for re-export or temporarily exported for re-import which are machinery, equipment and means of transport hired or leased for work construction or investment projects.

Article 7. Prior classification of imports and exports

The procedures for, order of, and competence to conduct, prior classification of imports and exports comply with the Finance Ministry's circular guiding the classification of imports and exports.

Article 8. Prior certification of origin of imports

1. Procedures for prior certification of origin of imports specified in Article 14 of the Government's Decree No. 19/2006/ND-CP of February 20, 2006, detailing the implementation of the Commercial Law regarding origin of goods, are guided as follows:

a/ A dossier of application for prior certification of origin comprises:

a.1.  An application for prior certification of origin (made according to a form set by the General Department of Customs), indicating goods' appellations and HS codes, the producing, processing or assembling country and establishment, the exporting country, the FOB price, the expected time of arrival to Vietnam and the route of transportation;

a.2.  A list of raw materials and supplies used for goods production, covering such information as goods' appellations and HS codes, origin of raw materials and supplies constituting products and C1F prices of raw materials and supplies:

a.3.  Invoices on the sale and purchase of raw materials and supplies used for goods production;

a.4.  Other documents: the brief description of the goods production process, the survey certificate, the processing and assembly certificate, the certificate of composition analysis, catalogue, goods samples and photographs to be produced if the above papers do not contain sufficient information for prior certification of origin.

b/ The General Department of Customs shall consider and issue the paper of prior certification of origin as soon as possible within one hundred and fifty working days after the receipt of a complete and valid dossier.

2. A paper of prior certification of origin is valid for one year from the date of issuance and may also apply to goods of the same category of the same producer or exporter for which import procedures are carried out by the applicant for prior certification of origin.

3. Within the validity duration of a paper of prior certification of origin of imports, the customs office may re-consider or annul the validity of this paper and notify the applicant in one of the following cases:

a/ Relevant legal documents are amended or supplemented;

b/ Elements for assessment of goods origin are changed;

c/ There is a disparity between the results of prior certification of origin and the actual origin of goods;

d/ The applicant supplies distorted or false information;

dd/ There are different results of prior certification of origin of goods with regard to origin of goods of the same category of the same producer.

4. The applicant shall notify the customs office which has made prior certification of origin of goods of any change of elements used for assessment of goods origin.

5. The dossier and documents of prior certification of origin shall be kept for 3 yeas after the date of issuance of the paper of prior certification of origin of imports.

6. The prior certification of origin of goods eligible for special preferential tax rates under free trade agreements concluded by Vietnam shall be carried out on the principles on identification of origin laid down for the implementation of these agreements.

7. The collection and payment of charges for prior certification of origin of goods comply with the Finance Ministry's regulations.

8. In case applicants for prior certification of origin fail to supply sufficient necessary information, customs offices shall refuse to make prior certification of origin and notifying in writing their refusal.

9. Information on prior certification of origin of goods shall be archived and kept confidential by customs offices under Article 16 of Decree No. 19/2006/ND-CP.

10. Papers of prior certification of goods origin are only valid for carrying out procedures for customs clearance but not valid for enjoying particularly preferential tax rates.

Article 9. Prior look at goods before customs declaration

Prior look at goods before customs declaration specified at Point b. Clause 1, Article 23 of the Customs Law proceeds as follows:

1. The goods owner sends to the goods keeper a written request for prior look before carrying out customs procedures and, at the same time, notify thereof to the district-level Customs Department for supervision as prescribed.

2. The taking of a prior look at goods is subject to approval of the goods keeper and customs supervision.

3. The goods keeper shall make a written record of the prior look at goods and have it certified by himself/herself, the goods owner and the customs supervisor.

4. Custom offices shall seal up goods after goods owners take a look at goods.

Article 10. Customs declaration

1. Customs declaration (including tax declaration upon carrying out customs procedures) shall be made on the customs declaration form.

For imports, customs declaration shall be made before or within 30 days after the date of goods arrival to a border gate. The date of goods arrival to a border gate is the date indicated on the customs office's stamp appended to the goods declaration (manifest) included in the dossier of means of transport on entry (by sea. air or rail) or the date written on the declaration of means of transport running through the border gate or the mean of transport-monitoring book.

Customs declaration for goods imported or exported by different modes and/or subject to different tax payment time limits shall be made on different imports or exports declaration forms corresponding to their importation or exportation modes or tax payment time limits.

For imports or exports eligible for tax rate reduction, when declaring their tax rates, it is required to indicate the tax rate before reduction and the reduction percentage. For example, automobile tires and tube-tire sets of 900-20 or larger in size are eligible for a reduction of 50% of the value-added tax rate under the Finance Ministry's Circular No. 13/2009/TT-BTC of January 22, 2009, guiding the reduction of value-added tax for a number of commodities and services in which enterprises face business difficulties, therefore, when making customs declaration, it is required to write: 10% x 50% in the "tax rate" column.

2. Responsibilities of customs declarants and taxpayers in making customs declaration and using goods for declared purposes:

a/ To make sufficient, accurate and truthful declaration of elements used as grounds for tax calculation, tax exemption, consideration for tax exemption, reduction or refund or non-collection of import duty, export duty, excise tax and value-added tax:

b/ To determine by themselves and take responsibility before law for the declaration of payable tax amounts, exempted tax amounts, tax amounts considered for exemption, reduction or refund and non-collection of import duty, export duty, excise tax and value-added tax in accordance with law;

c/ To properly use goods not liable to tax and goods eligible for tax exemption, consideration for tax exemption, refund or non-collection of import duty, export duty, excise tax or value-added tax.

In case goods are imported or exported by entrustment or export or through bidding, persons entrusting or soliciting bids for import or export shall use goods for proper purposes as prescribed at Point c of this Clause.

3. Goods identified as being not liable to tax or being exempted or considered for exemption from import duty, export duty, excise tax or value-added tax of which the use purpose is changed or is permitted for change (for cases requiring a competent authority's permission for use purpose change) shall be handled as follows:

a/ Taxpayers shall send to customs offices which have carried out import or export procedures a written notification of the quantity, quality and category of goods of which the use purpose is to be changed;

b/ Within 10 days after the receipt of the written notification from taxpayers, customs offices shall conduct physical inspection and check the actual state of goods notified by taxpayers to have their use purpose changed. Taxpayers may only change the use purpose of goods only after customs offices conduct physical inspection and check the actual state of goods;

c/ Within 10 days after the use purpose of goods is actually changed, taxpayers shall declare payable tax and fine amounts for late payment (if any) according to Form No. 01 in Appendix VI to this Circular to customs offices;

d/ Taxpayers shall fully pay taxes and fines for late payment and fines for administrative violations (if any) for goods which have been identified as being not liable to tax, exempted or considered for exemption from import duty, export duty, excise tax or value-added tax but later have their use purpose changed, within the time limit guided at Point h, Clause 3, Article 18 of this Circular.

dd/ In case taxpayers change the use purpose of goods but fail to make a written notification to custom offices, fail to declare the change within the prescribed time limit or deliberately fail to declare the change to customs offices or the use purpose change is detected by customs offices or other functional agencies through examination, taxpayers will be subject to assessment of payable tax and fine amounts and. depending on the severity of their violations, be handled in accordance with current regulations. Taxpayers shall fully pay deficit tax and fine amounts (if any) according to decisions of customs offices.

Article 11. Customs dossiers

1. When carrying out customs procedures for exports, customs declarants shall submit or produce to customs offices a customs dossier comprising the following papers:

a/ The customs declaration: to submit 2 originals;

b/ The goods trading contract or papers of equivalent legal validity (except for goods specified in Clauses 5,7 and 8, Article 6 of this Circular): to submit 1 copy; and the export entrustment contract (for cases of entrusted export): to submit 1 copy;

The goods trading contract must be in Vietnamese or English; if it is made in another language, customs declarants shall also submit its Vietnamese version and take responsibility for translation.

c/ In each of the following specific cases, customs declarants shall additionally submit or produce the following documents:

c.1. The detailed list of goods, for goods of different categories or goods packed differently: to submit 1 original;

c.2. The export permit, for goods requiring such permit: to submit 1 original in case of single exportation or to submit 1 copy and produce the original for comparison or making of a reconciliation-monitoring slip, in case of multiple exportation;

c.3. Other relevant documents as prescribed by law: to submit I original each;

c.4. For goods exempt from export duty, apart from the above papers, the following papers are required:

c.4.1. The list of goods exempt from export duty, enclosed with the reconciliation-monitoring slip already registered with the custom office, for cases subject to registration of such list as guided at Point 1, Article 101 of this Circular: to submit 1 copy and produce the original for comparison and reconciliation;

c.4.2. The written notification of the winning bid or contractor designation, enclosed with the goods supply contract, clearly stipulating that the winning price or goods-supplying price is exclusive of export duty (for organizations and individuals with winning bids for export); or the export entrustment contract, clearly stipulating that the price for goods supply under the entrustment contract is exclusive of export duty (for cases of entrusted export): to submit 1 copy and produce the original for comparison;

c.4.3.  Other papers evidencing exports' eligibility for duty exemption;

c.4.4. The list of documents included in the dossier of request for duty exemption.

2. When carrying out customs procedures for imports, customs declarants shall submit and produce to customs offices a customs dossier comprising the following documents:

a/ The customs declaration: to submit 2 originals;

b/ The goods trading contract or papers of equivalent legal validity: to submit 1 copy (except for goods specified at Clauses 5, 7 and 8, Article 6 of this Circular); the import entrustment contract (for cases of entrusted import): to submit 1 copy;

The goods trading contract must be in Vietnamese or English, if it is made in another language, customs declarants shall also submit its Vietnamese version and take responsibility before law for the translation.

c/ Commercial invoices (except for goods specified in Clause 8, Article 6, of this Circular): to submit 1 original;

d/ Bill of lading (except for goods specified in Clause 7, Article 6 of this Circular, goods sold and purchased between non-tariff zones and the inland): to submit 1 copy of the original or the master copy bearing the word "copy" or "surrendered";

For goods imported by international post, if no bill of lading is available, customs declarants shall write codes of postal parcels or items on customs declarations or submit the list of postal parcels or items made by the post.

For goods imported for oil and gas exploration and exploitation and transported on service ships (other than commercial ships), the cargo manifest shall be submitted in replacement of the bill of lading.

e/ In each of the following specific cases, customs declarants shall additionally submit or produce the following papers:

e.1. The detailed list of goods, for goods of different categories or goods packed differently: to submit 1 original or copy of equivalent validity such as telegraph, fax, telex, data message or other formats as prescribed by law;

e.2. The written examination registration, notice of examination exemption or notification of examination results issued by a technical organization designated to carry out quality examination, the agency in charge of food hygiene and safety examination or the quarantine agency (below referred to as examination agency), for imports on the list of products and goods subject to examination of quality and food hygiene and safety, animal quarantine or plant quarantine: to submit 1 original;

e.3. The certificate of survey, for goods cleared from customs procedures on the basis of survey results: to submit 1 original;

e.4. The declaration of imports' value, for goods subject to value declaration under the Finance Minister's Decision No. 30/2008/QD-BTC of May 21, 2008, promulgating declaration forms of the dutiable value of imports and exports and providing declaration guidance: to submit 2 originals;

e.5. The import permit, for goods requiring such permit: to submit 1 original, for single importation, or submit 1 copy and produce the original for comparison and making of a reconciliation-monitoring slip, for multiple importation;

e.6. The certificate of origin (C/O): to submit 1 original in the following cases:

e.6.1. Goods originated from countries or groups of countries which have concluded agreements on the application of particularly preferential tax rates with Vietnam (except for imports with an FOB value not exceeding USD 200) as prescribed by Vietnamese laws and treaties which Vietnam has signed or acceded to, if the importer wishes to enjoy these preferential regimes;

e.6.2. Imports which Vietnam and international organizations announce to be presently likely to cause harms to social safety, public health or environmental sanitation and need to be controlled;

e.6.3. Goods imported from countries against which Vietnam announces to apply anti-dumping tax, countervailing duty, anti-discrimination tax, safeguard measures or tariff quotas;

e.6.4. Imports subject to import management prescribed by Vietnamese laws or bilateral or multilateral treaties to which Vietnam is a contracting party;

The C/O already submitted to a customs office may neither be modified nor replaced, except for modification or replacement made by the agency or organization competent to issue this C/O within a law-prescribed time limit.

e.7. For goods exempt from import duty specified in Article 100 of this Circular, the following papers are required:

e.7.1. The list of goods exempt from import duty, enclosed with the reconciliation-monitoring slip already registered with the custom office, for cases subject to registration of such list as guided at Point 1, Article 101 of this Circular: to submit 1 copy and produce the original for comparison and reconciliation;

e.7.2. The written notification of the winning bid or contractor designation, enclosed with the contract on goods supply, clearly stipulating that the winning price or goods-supplying price is exclusive of import duty (for organizations and individuals with winning bid for import); or the import entrustment contract, clearly stipulating that the price for goods supply under the entrustment contract is exclusive of import duty (for cases of entrusted import): to submit 1 copy and produce the original for comparison;

e.7.3. For projects in sectors eligible for investment incentives and employing a regular workforce of between 500 and 5,000 laborers, the following papers are required:

- The project's feasibility study report showing that when the project is put into operation, it will employ a regular workforce of between 500 and 5.000 laborers;

- A commitment to take responsibility before law for the employment of a regular workforce of between 500 and 5,000 laborers.

e.7.4. Other papers evidencing imports' eligibility for duty exemption;

e.7.5. The list of papers and documents included in the dossier of application for duty exemption.

e.8. The declaration for certification of non­refundable aid. made by a finance agency according to the Finance Ministry's Circular No. 82/2007/TT-BTC of July 12,2007, guiding the state financial management applicable to foreign non-refundable aid belonging to state budget and non-refundable aid goods which are not liable to import duty, excise tax or value-added tax: to submit 1 original:

In cases the owner or principal contractor of a non-refundable ODA-funded project is not liable to import duty, export duty, value-added tax or excise tax as prescribed by law. the written notification of the winning bid or contractor designation, enclosed with the goods supply contract clearly stipulating that the winning price or goods-supplying price is exclusive of import duty (for organizations and individuals with winning bid for import); the import entrustment contract, clearly stipulating that the goods-supplying price under the entrustment contract is exclusive of import duty (for cases of entrusted import): to submit 1 copy and produce the original for comparison.

e.9. The certificate of registration for trading in animal breeds or plant varieties, granted by a state management agency, for animal breeds or plant varieties not liable to value-added tax: to submit 1 copy and produce the original for comparison;

e.10. For goods not liable to value-added tax being domestically unavailable machinery, equipment and supplies which need to be imported for use in scientific research and technological development activities; domestically unavailable machinery, equipment, spare parts, special-use vehicles and supplies which need to be imported to conduct oil and gas survey, exploration and development activities; domestically unavailable aircraft, drilling platforms and ships which need to be imported to create fixed assets of enterprises or hired from foreign countries for use in production and business activities and for lease, the following papers are required:

e.10.1. The written notification of the winning bid or contractor designation and the contract on the sale of goods to enterprises according to bidding results (clearly stating that the payment price is exclusive of value-added tax), for goods not liable to value-added tax and imported by the winning bidder or the establishment designated to supply goods: to submit 1 copy and produce the original for comparison;

e.10.2. The import entrustment contract, clearly stating that the goods-supplying price under the entrustment contract is exclusive of value-added tax (for cases of entrusted import): to submit 1 copy and produce the original for comparison;

e.10.3. The document made by a competent agency assigning the tasks of implementing scientific research and technological development programs, projects or schemes to organizations or the contract between the party ordering the performance of scientific and technological tasks and the party performing these tasks, enclosed with the written certification of the enterprise's representative or the head of the scientific research agency and written commitments on the use of imports for scientific research and technological development, for cases of importing goods for scientific research and technological development: to submit 1 original;

e.10.4. The written certification and commitment of the enterprise's representative on the use of domestically unavailable machinery, equipment, spare parts, special-use vehicles and supplies which need to be imported to conduct oil and gas survey, exploration and development: to submit 1 original;

e.10.5. The written certification and commitment of the enterprise's representative on the use of domestically unavailable aircraft, drilling platforms and ships which need to be imported to create fixed assets of the enterprise or hired from foreign countries for use for production and business and for sub-lease: to submit 1 original;

e.10.6. The lease contract signed with a foreign party, for cases of hiring domestically unavailable aircraft, drilling platforms and ships which need to be hired from foreign countries for production and business activities or for sub-lease: to submit 1 original;

e.11. The certification of the use of imports for defense purposes, made by the Ministry of Defense, or for security purposes, made by the Ministry of Public Security, for weapons and special-use ammunitions imported in direct service of defense or security which are not liable to value-added tax: to submit 1 original;

e.12. The written registration of supplies and materials imported for export production (to be submitted upon registration of materials and supplies used for export production under the guidance in Article 32 of this Circular. When carrying out customs procedures, enterprises are not required to submit this registration; customs offices shall use its copy filed at their offices);

e.13. The written registration of supplies and materials imported for producing goods for domestic consumption, for the case of importing goods on the list of consumer goods promulgated by the Ministry of Industry and Trade but using these goods as supplies and materials for directly producing goods for domestic consumption (if enterprises wishing to apply the tax payment time limit of 30 days for these goods, before importing these goods, they shall make registration with customs offices as for materials and supplies used for export production under the guidance in Article 32 of this Circular. When carrying out customs procedures, enterprises are not required to submit this registration; customs offices shall use its copy filed at their offices).

3. The dossier used for identification of non-dutiable commercial imports or exports is the customs dossier specified in this Article.

Article 12. Modification of customs declarations and making of additional declarations in customs dossiers

1. The modification of customs declarations and making of additional declarations in customs dossiers may be carried out in the following cases:

a/ Modifying customs declarations before the time of conducting physical inspection of goods or making a decision to waive the physical inspection with respect to errors which do not affect payable tax amounts;

b/ Making additional declarations in the customs dossier before the time the customs office conducts physical inspection of goods or making a decision on physical inspection exemption;

c/ Making additional declarations to the customs dossier within 60 days from the date of customs declaration registration with respect to errors which affect payable tax amounts, provided that following conditions are fully met:

c.1. Errors are detected and declared by the taxpayer or customs declarant himself/herself to the customs office;

c.2. Errors are declared within 60 days after the date of customs declaration registration but before the customs office carries out tax examination or inspection at the taxpayer's office;

c.3. There are errors in the calculation of payable tax amounts; errors in the value, origin, code, tax rate and payable tax amounts declared in the customs dossier already submitted to the customs office;

c.4. The customs declarant or taxpayer has sufficient grounds to prove and the customs office has adequate grounds and conditions to examine and certify the truthfulness, accuracy and lawfulness of additional declarations.

2. Contents of modification and additional declarations include:

a/ Additional declaration of information used as grounds for determining tax calculation elements and bases or identifying objects not liable to tax or objects eligible for tax exemption, consideration for tax exemption, reduction, refund or non-collection;

b/ Additional declaration of payable tax amounts, paid tax amounts, deficit tax amounts or overpaid tax amounts (if any), fines for late payment of tax amounts to be paid under additional declaration (if the taxpayer has failed to pay tax under the additional declaration within the prescribed time limit) for each goods item and the whole customs declaration; commitments on the accuracy and lawfulness of documents and the additional declaration dossier;

c/ Modifying and additionally declaring other information on the customs declaration form.

3. A dossier of modification or additional declaration comprises:

a/ A document on modification or additional declaration (made according to Form No. 02 in Appendix VI to this Circular): to submit 2 originals;

b/ Enclosed papers to prove the modification or additional declaration.

4. Processing of modification or additional declaration dossiers:

a/ Responsibilities of customs declarants:

a.1. To accurately, truthfully and adequately declare additional elements and grounds in the additional declaration document;

a.2. To calculate taxes and fines for late payment (if any) to be paid as a result of additional declaration;

a.3. To submit a complete dossier to the customs office within the time limit for modification or additional declaration prescribed in Article 34 of the Law on Tax Administration and Clause 2, Article 22 of the Customs Law;

a.4. To abide by the customs office's request written in the modification or additional declaration document;

a.5. In case the additional declaration leads to an increase in payable tax amounts, taxpayers shall fully pay taxes and fines for late payment (if any) within the prescribed time limit;

a.6. In case the additional declaration leads to an decrease in payable tax amounts, taxpayers may request customs offices to which additional declarations are made to handle the overpaid tax amount under the guidance in Article 24 of this Circular.

b/ Responsibilities of customs offices:

b.1. To clearly write the hour and date of receipt of modification or additional declaration dossiers, for cases of modification or additional declaration under Point a. Clause 2, Article 34 of the Law on Tax Administration and Clause 2, Article 22 of the Customs Law. To clearly write the date of receipt of additional declaration dossiers, for cases of additional declaration under Point b. Clause 2, Article 34 of the Law on Tax Administration:

b.2. To check the completeness and accuracy of modification or additional declaration dossiers and write the results on the modification or the additional declaration document and return one copy thereof to the customs declarant and keep one copy;

b.3. To notify the results of examination of modification or additional declaration dossiers within the following time limits:

b.3.1. Within 8 working hours after the receipt of a complete dossier of modification or additional declaration, for cases of modification or additional declaration before the customs office conducts physical inspection of goods or makes a decision on physical inspection exemption;

b.3.2. Within 5 working days after the receipt of a complete dossier of additional declaration, for cases of making additional declaration within 60 days after the date of customs declaration registration but before the custom office conducts tax examination or inspection at the taxpayer's head office.

5. In case customs declarants or taxpayers detect by themselves errors in the submitted tax declaration dossier (errors in the calculation of the payable tax amount and errors in the value, origin, code, tax rate or payable tax amount); make declaration before customs offices conduct tax examination or inspection at their head offices but beyond the time limit of 60 days from the date of custom declaration registration; or customs declarants or taxpayers have sufficient grounds to evidence and customs offices obtain adequate grounds and conditions to examine and certify the accuracy and lawfulness of the declaration:

a/ Customs declarants or taxpayers shall make declaration as in the case of additional declaration guided in Clauses 2 and 3, and Point a, Clause 4, of this Article; fully pay the deficit tax amount within the time limit as for tax amounts declared and calculated by themselves when carrying out customs procedures and fines for late payment (if any) and comply with the customs-offices decision on sanctioning administrative violations;

b/ Customs offices shall receive and examine declaration dossiers of customs declarants or taxpayers as in the case of additional declaration guided at Point b. Clause 4 of this Article; handle administrative violations under regulations and take notes of the sanctioning on the additional declaration document.

Article 13. Replacement of customs declarations

Customs declarations may only be replaced upon change of the importation or exportation mode and before the time of conducting physical inspection of goods or making a decision or, exemption from the physical inspection of goods Customs procedures shall be carried out as follows:

1. The customs declarant shall send to the district-level Customs Department with which the customs declaration was registered a written explanation on the replacement of the registered declaration;

2. The head of the district-level Customs Department with which the customs declaration was registered shall consider the explanations given by the customs declarant; if considering that they are reasonable and detecting no signs of trade fraud, he/she shall approve the request of the customs declarant and assign a customs officer to:

a/ Withdraw the registered declaration;

b/ Cancel the registered declaration: crossing out the declaration with a red-ink pen. signing and appending his/her seal to 2 copies of the cancelled declaration;

c/ Register a new customs declaration. The new custom dossier comprises the new customs declaration, documents accompanying the goods lot and the cancelled customs declaration (the copy kept by the customs declarant);

d/ Take notes in the system: This declaration is replaced with declaration No... dated...;

e/ File the cancelled customs declaration (the copy filed by the customs office), and the customs declarant's written request for replacement of the customs declaration by registration number of the customs declaration.

Article 14. Customs inspection in the process of carrying out customs procedures

1. Inspecting in the process of carrying out customs procedures includes: examination of customs dossiers, tax examination and physical inspection of goods.

2. Contents of inspection in the process of carrying out customs procedures

a/ Examining goods appellations and codes as prescribed in the Finance Ministry's circular guiding the classification of imports and exports.

b/ Examining the quantity of goods. For goods items of which the quantity cannot be determined by manual methods or equipment of customs offices (such as goods in liquid form, bulk goods or goods lots of large quantity), customs offices shall base themselves on survey results of traders providing survey services (below referred to as survey traders) to identity their quantity.

c/ Examination of goods quality (including examination of food hygiene and safety), specifically:

c.1. For goods on the list of those subject to quality examination

c.1.1 . For imports: Custom offices shall carry out customs procedures on the basis of the written registration for quality examination, the notice of examination exemption for the goods lot or the written conclusion on the goods lot's conformity with import quality standards made by an examination agency.

c.1.2 . For exports: customs offices shall carry out customs procedures on the basis of the written conclusion on the goods lot's conformity with export quality standards made by an examination agency.

c.2 . For goods outside the list of those subject to quality examination

c.2.1 . If customs offices, with their devices and equipment, cannot determine goods quality for the management of imports and exports, they shall, together with goods owners, take samples of goods or request goods owners to supply technical documents (catalogs) and reach agreement with goods owners in the selection of a survey trader to conduct a survey. The conclusions of the survey trader are binding on involved parties.

c.2.2 . If customs declarants and custom offices fail to reach agreement on the selection of a survey trader, customs offices shall select a designated technical organization to conduct examination in service of the state management or a survey trader (in case the technical organization designated to conduct the examination issues a written refusal). Conclusions of the technical organization designated to conduct examination in service of state management or survey trader are binding on involved parties. If customs declarants disagree with such conclusions, they may lodge complaints in accordance with law.

d . Examination of origin of goods on the basis of the actual state of goods, customs dossiers and information on goods under Article 15 of the Government's Decree No. 19/2006/ND-CP of February 20. 2006. and other relevant guiding documents.

Examination results shall be processed as follows:

d.1. If the actual origin of imports differs from that declared by customs declarants but still belongs to the group of countries or territories giving the most favored nation treatment to Vietnam, customs offices shall still apply preferential duty rates as prescribed and. depending on the nature and severity of violations, handle violators in accordance with law;

d.2. If doubting about the origin of goods, customs-offices may request customs declarants to supply more documents to evidence the origin of goods or request a competent agency of the exporting country to give certification. The examination and verification of the origin of goods must be completed within 150 days after customs declarants submit a complete and valid dossier set. Pending the availability of examination results, goods ineligible for tariff incentives but allowed for enjoy customs clearance under ordinary customs procedures;

The time limit for consideration and settlement of problems related to the origin of goods or for consideration and acceptance of a C/O is three hundred and sixty five days after the date of submission of the C/O to customs offices or the date customs offices have doubts about violations related to the origin of goods.

If customs declarants submit a C/O granted for the whole goods lot but import only part of the goods lot, customs offices shall accept this C/O for the volume of actually imported goods.

e/ Tax examination, covering the following contents:

e.1. Examining conditions for application of coercive measures and tax payment time limit as prescribed;

e.2. Examining grounds used to determine that goods are not liable to tax in case customs declarants declare that goods are not liable to import duty, export duty, value-added tax or excise tax;

e.3. Examining grounds used to determine that goods are eligible for tax exemption, consideration for tax exemption or reduction in case customs declarants declare that goods are eligible for tax exemption or consideration for tax exemption or reduction;

e.4. Examining tax bases used for determining payable tax amounts and calculating payable tax amounts in case imports or exports are liable to tax on the basis of examination results specified at Points a. b. c and d of this Clause or the results of examination and determination of tax calculation values under the guidance in the Finance Ministry's Circular No. 40/2008/TT-BTC of May 21, 2008. guiding the implementation of the Government's Decree No. 40/2007/ND-CP of March 16, 2007. providing for customs valuation of imports and exports, and other relevant grounds.

3. The competence to determine the form and level of examination shall be decided by directors of provincial-level Customs Departments or heads of district-level Customs Departments which receive and process customs dossiers.

4. In the process of carrying out customs procedures for an import or export lot, based on the actual state of the goods lot and newly collected information, directors of provincial-level Customs Departments or heads of district-level Customs Departments shall decide to change the form and level of inspection already decided and take responsibility for the change.

5. After the physical inspection of goods completes, customs officers who conduct the inspection shall record inspection results under the guidance of the General Department of Customs.

Article 15. Sampling, sample storage and archival of photographs of imports

1. Samples of imports shall be taken in the following cases:

a/ Customs declarants request the sampling in service of customs declaration;

b/ Goods must be sampled to meet customs management requirements, including: raw materials and supplies imported for export processing or production; processed products for export; exports which are returned for re-processing (except for goods which cannot be sampled, fresh and live goods, precious metals and gems);

c/ Imports of which samples must be taken for analysis or assessment at the request of customs offices.

2. The sampling shall be decided by heads of district-level Customs Departments on a case-by-case basis.

3. Sampling procedures

a/ Samples shall be taken on the basis of written request of the customs declarant or the customs office. A written request for the taking of samples shall be made in two copies, one to be kept together with the sample and the other kept at the requesting unit. The General Department of Customs shall provide for the form of this written request.

b/ Samples shall be taken in the presence of representatives of the goods owner and customs office, and be signed and sealed up by the two parties.

c/When handing over samples, it is required to make a hand-over record signed by involved parties.

4. Samples shall be taken at the minimum necessary level.

5. Places of sample storage

a/ Samples analyzed by the Imports and Exports Analysis and Classification Center shall be stored at this Center.

b/ Samples taken by district-level Customs Departments to serve related professional operations shall be stored at these Customs Departments.

c/ Samples of raw materials imported for export processing or production and samples of re­processed goods shall be stored by enterprises according to regulations.

6. Duration of sample storage

a/ Samples shall be stored at the Imports and Exports Analysis and Classification Center or district-level Customs Departments for 90 days after the date of customs clearance. If any dispute or complaint arises, samples shall be stored until this dispute or complaint is settled.

b/ Samples of raw materials for export processing or production shall be stored at enterprises until customs offices complete the liquidation of processing contracts and import declarations for raw materials.

7. The archival of photographs of imports shall be decided on a case-by-case basis by heads of district-level Customs Departments in order to meet customs management requirements. Archived photographs must have the numbers of customs declarations, be signed and sealed up by customs officers and signed by goods owners on their back and filed together with customs dossiers.

Article 16. Supervision of imports, exports and goods in transit; and means of transport on entry, exit or in transit

1. Customs supervision of imports, exports and goods in transit; and means of transport on entry and exit or in transit shall be carried out under Article 26 of the Customs Law and Articles 13 and 14 of Decree No. 154/2005/ND-CP.

2. The General Director of Customs shall provide specific guidance on measures and duration of supervision applicable to each type of imports, exports and goods in transit; and means of transport on entry and exit or in transit.

Article 17. Tax payment currencies

Taxes on imports and exports shall be paid in Vietnam dong. In case of paying taxes in a foreign currency, taxpayers shall pay taxes in a freely convertible foreign currency as prescribed. Foreign currencies shall be converted into Vietnam dong at the average exchange rate on the inter-bank foreign currency market announced by the State Bank of Vietnam at the time of tax calculation.

Article 18. Tax payment time limits

1. For goods exported under sale and purchase contracts, the time limit for tax payment is 30 days from the date of customs declaration registration (except for exported crude oil for which the time limit for tax payment complies with the Finance Ministry's Circular No. 32/2009/TT-BTC of February 19. 2009, guiding taxes applicable to organizations and individuals conducting oil and gas survey, exploration and exploitation under the Petroleum Law).

2. For imports

a/ For imports on the list of consumer goods promulgated by the Ministry of Industry and Trade, taxes must be fully paid before receiving goods, except the following cases:

a.1/ If taxpayers have obtained a guarantee for payable tax amounts, the time limit for tax payment coincides with the guarantee term but must not exceed 30 days from the date of customs declaration registration;

The provision of guarantee complies with Article 19 of this Circular.

a.2/ For goods on the list of consumer goods promulgated by the Ministry of Industry and Trade imported for security, defense, scientific research, education or training purposes eligible for tax exemption, pending the performance of tax exemption procedures, the tax payment time limit is 30 days from the date of goods receipt.

In case goods are identified through examination as ineligible for tax exemption, taxpayers shall re-count the tax payment time limit from the date of goods receipt and determine and pay fines for late payment according to regulations.

b/ In case taxpayers satisfy the conditions specified in Clause 5. Article 3 of this Circular

b.1/ For supplies and materials imported for export production (including goods on the list of consumer goods promulgated by the Ministry of Industry and Trade used as supplies and materials for export production), the time limit for tax payment is two hundred and seventy five days, counting from the date of customs declaration registration.

In special cases in which the production circle or the reserve duration of supplies and materials must last for more than two hundred and seventy five days such as shipbuilding; manufacture of mechanical products, rearing of aquatic animals or pearl oysters; and processing of seasonally harvested agricultural products, the tax payment time limit may extend to more than two hundred and seventy five days. The extension duration must not exceed the deadline for goods delivery indicated in the contract on export of products produced from imported materials or supplies for which the tax payment time limit is proposed for extension of the production circle.

To enjoy a tax payment time limit exceeding two hundred and seventy five days, apart from the customs dossier guided in Clause 2, Article 11 of this Circular, taxpayers shall submit to customs offices with which customs declarations have been registered the following papers:

- The original written request for application of a tax payment time limit exceeding two hundred and seventy five days in each specific case in conformity with the practical reserve of materials and supplies, clearly stating the reason, the proposed tax amount, the proposed extension duration, description of the production process and time;

- A copy of the paper evidencing the extension of the time limit for goods delivery stated in the product export contract, if the extension of the tax payment time limit is attributed to the fact that the time limit for goods delivery stated in the product export contract must be prolonged.

District-level Customs Departments with which customs declarations of imports have been registered shall receive, preliminarily examine and process dossiers as follows:

- If the dossier is complete and valid, they shall report the case to the provincial-level Customs Department for the latter to consider and approve the prolongation of the tax payment time limit to more than two hundred and seventy five days. In case of ineligibility for application of a tax payment time limit exceeding two hundred and seventy five days, they shall make a written reply to the taxpayer;

- In case of necessity to carry out examination to identify the production circle or reserve duration of supplies and raw materials, provincial-level Customs Departments shall coordinate with tax offices and relevant agencies in conducting examination. Examination results must be presented in a written record, clearly stating the production circle which necessitates the prolongation of the tax payment time limit.

b.2. For goods imported by mode of temporary import for re-export, the time limit for tax payment is 15 days from the deadline for temporary import for re-export (applicable also to cases of extension).

b.3. In case taxpayers import materials and supplies for export production but re-export or use them for domestic consumption or fail to export products; or import goods by mode of temporary import for re-export but later use them for domestic consumption, they shall pay tax within the time limit as required for consumer goods (if such goods are consumer goods) or within 30 days and pay fines for late payment (if any).

In case taxpayers import materials and supplies for export production but fail to export products within the tax payment time limit or import goods by mode of temporary import for re-export but fail to re-export these goods within the tax payment time limit, fines for late payment shall be imposed for the period from the tax payment deadline to the date of actual export/re­-export or to the date of actual tax payment (if the date of actual tax payment preceeds the date of actual export/re-export).

b.4. For other cases (including goods on the list of consumer goods promulgated by the Ministry of Industry and Trade and imported for use as production supplies and materials), the tax payment time limit is 30 days from the date of customs declaration registration.

Conditions for imports to be identified as being on the list of consumer goods promulgated by the Ministry of Industry and Trade and imported for use as production supplies or materials:

- Being imported directly by enterprises themselves;

- Being conformable with enterprises' production lines and demands in terms of product quantity and categories. For example, confectionery enterprises import sugar and milk; garment enterprises import fabrics.

c/ In case taxpayers fail to satisfy the conditions specified in Clause 5. Article 3 of this Circular

c.1. If obtaining a guarantee for the payable tax amount, the tax payment time limit will accord with the guarantee term but must not exceed the time limit prescribed for each case guided at Point b of this Clause.

The provision of guarantee complies with Article 19 of this Circular.

c.2. If obtaining no guarantee for the payable tax amount, taxpayers shall fully pay tax before receiving goods.

c.3. For goods imported in direct service of security, defense, scientific research and education and training and eligible for import duty exemption, the tax-payment time limit is 30 days from the date of customs declaration registration by taxpayers.

In case goods are identified through examination as being ineligible for tax exemption, the tax payment time limit shall be counted from the date of goods receipt and taxpayers shall pay fines for late payment according to regulations.

3. For other imports or exports

a/ For goods imported or exported not under trading contracts and goods imported and exported by border inhabitants, taxes must be fully paid before goods are exported abroad or imported into Vietnam.

b/ For imports or exports still under customs supervision but seized by a competent state agency for investigation and handling, the tax payment time limit in each specific case will comply with this Article and be counted from the date the competent state agency issues a written permission for the lease of temporarily seized goods.

c/ For imports and exports for which customs declarations are registered once for several importations or exportations, the tax payment time limit in each specific case will comply with this Article and be counted from the date goods are actually imported or exported.

d/ In case it is required to survey technical standards, goods quality, quantity and category (identifying goods' appellations and tariff codes, goods quality and quantity, technical standards and current state) to ensure accurate tax calculation, the time limit for payment of tax amounts under declaration will comply with this Article.

e/ For tax amounts assessed by customs offices

e.1/ In case goods have been cleared from customs procedures, the time limit for payment of the difference between the tax amount assessed by customs offices and the tax amount calculated and declared by taxpayers when carrying out customs procedures is 10 days after customs offices sign a document on assessment of the payable tax amount.

e.2/ In case goods have not yet been cleared from customs procedures, the time limit for payment of the assessed tax amount (including the difference between the tax amount assessed by customs offices and the tax amount calculated and declared by taxpayers when carrying out customs procedures) will comply with this Article.

f/ In case of making additional declarations to tax declaration dossiers and declaration and payment of deficit tax amounts under the guidance in Article 12 of this Circular, the tax payment time limit will comply with this Article as for the tax amount declared when carrying out customs procedures.

g/ For non-dutiable imports and exports (except goods imported from abroad into non-tariff zones and then imported into the domestic market which are subject to the tax payment time limit guided in Clause 2 of this Article) or imports or exports exempted from duty or already allowed for duty exemption but later used or permitted for use (in case permission of competent agencies is required) for purposes other than those determined as non-dutiable or eligible for duty exemption or duty exemption consideration, the time limit for payment of tax amounts not yet collected, already exempted or allowed for exemption and fines (if any) is 10 days after the deadline for declaration of payable tax amounts due to use purpose change under Clause 3, Article 10 of this Circular.

If having no grounds to identify the time when the use purpose of goods is changed, the time limit for tax payment and determination of fines for late payment shall be counted from the date of first-time registration of customs declarations.

Past the tax payment time limit, if taxpayers still fail to fully pay taxes into the state budget, they shall be fined for late payment. If, past 90 days from the tax payment deadline, taxpayers still fail to fully pay taxes, they will, apart from being fined for late payment, be subject to coercive measures according to regulations.

Article 19. Guarantee for payable tax amounts

1. Guarantee for payable tax amounts may be provided in either of the following forms: single guarantee or multiple guarantee.

a/ Single guarantee means commitment to make full tax payment for a single import declaration.

b/ Multiple guarantee means commitment to make full tax payment for two or more import declarations registered at a district-level Customs Department.

2. Customs offices shall accept guarantee if the following conditions are fully met:

a/ The guarantor is a credit institution set up and operating under the Law on Credit Institutions which shall take responsibility for its eligibility for guarantee provision as prescribed by law;

b/ Having a contract on the provision of guarantee for the payable tax amount (signed between the guarantor and the taxpayer) and a letter of guarantee issued by the guarantor to the concerned customs office to affirm its capability and commitment to pay tax and fine for late payment for the taxpayer if. past the tax payment deadline, the taxpayer still fails to fully pay tax;

c/ The letter of guarantee clearly states the guaranteed tax amount.

3. Procedures for provision of single guarantee

a/ When carrying out procedures for an import lot, the taxpayer shall submit a copy and produce the original guarantee provision contract and submit the original written request for acceptance of guarantee and the letter of guarantee issued by the guarantor.

b/ The letter of guarantee must have the following principal details:

b.1/ Names, tax identification numbers, addresses, telephone numbers and fax numbers of the guaranteed taxpayer, the guarantor and the guarantee-accepting customs office.

b.2/ Purpose of guarantee.

b.3/ The scope of guarantee: the guaranteed customs declaration or the number of the contract, invoice, bill of lading of the goods lot under guarantee, in case of providing guarantee before customs procedures are carried out.

b.4/ The date of guarantee provision and the guaranteed amount.

b.5/ Commitments of the guarantor, clearly stating that the guarantor shall pay tax and fine for late payment for the taxpayer under the guidance at Point b. Clause 2 of this Article.

b.6/ The time limit for payment of the guaranteed tax amount.

c/ Customs offices shall examine guarantee conditions under the guidance in Clause 2 above and deal with the guarantee as follows:

c.1/ To determine the tax payment time limit for goods under guarantee according to regulations which must not exceed the tax payment time limit guided at Point a or b. Clause 2. Article 18 of this Circular;

c.2/ In case the guaranteed tax amount is smaller than the payable tax amount, the customs office shall effect customs clearance for the goods volume corresponding to the guaranteed tax amount, if the taxpayer wishes to have the whole goods lot cleared from customs procedures, he/she shall pay the difference between the guaranteed tax amount and the payable tax amount before receiving goods;

c.3/ In case the guarantee conditions are not fully met, the customs office shall send to the taxpayer a written notification of the refusal of guarantee. If having doubts about the truthfulness of the letter of guarantee or guarantee provision contract, the customs office shall send a document to the guarantee-providing credit institution for verification.

d/ Monitoring and handling the guarantee

d.1/ Past the tax payment time limit, if the taxpayer still fails to fully pay the guaranteed tax amount, the guarantor shall pay tax and fine for late payment (if any) for the taxpayer.

d.2/ If the guarantor fails to pay tax and fine (if any) for the taxpayer, the customs office shall send a document to the guarantor to request the latter to perform guarantee obligations (made according to Form No. 04. Appendix VI to this Circular) and. at the same time, reject guarantee provided by that guarantor for subsequent import lots of all organizations and individuals nationwide; the guarantor shall be sanctioned according to regulations.

The customs office which detects violations committed by the guarantor shall notify these violations in writing or through the electronic data system (if such a system exists) to other customs units nationwide for handling according to regulations.

d.3/ If both the taxpayer and the guarantor pay tax and fine, the overpaid tax amount shall be refunded to the guarantor.

4. Procedures applicable to multiple guarantees

a/ Before carrying out customs procedures for imports, the taxpayer shall send to the district-level Customs Department a written request for acceptance of multiple guarantee for imports, made according to Form No. 03. Appendix VI to this Circular.

b/ The letter of guarantee must have the following details:

b.1/ Names, tax identification numbers, addresses, telephone numbers and fax numbers of the guaranteed taxpayer, the guarantor and the guarantee-accepting custom office;

b.2/ Purpose of guarantee;

b.3/ The guaranteed tax amount;

b.4/ The scope of guarantee: clearly stating that guarantee is provided for the taxpayer's import lot with customs declarations registered from .. to...:

b.5/ The date of guarantee provision;

b.6/ The district-level Customs Department accepting the guarantee;

b.7/ Commitments of the guarantor as guided at Point b. Clause 2 of this Article.

c/ The customs office shall examine guarantee conditions guided in Clause 2 of this Article, If guarantee conditions are fully met. it shall accept multiple guarantee for imports declarations registered by the taxpayer within the guarantee term stated in the letter of guarantee as proposed by the taxpayer and. at the same time, determine the tax payment time limit for each goods lot as prescribed.

In case guarantee conditions are not fully met, the customs office shall send to the taxpayer a written notification of the refusal of guarantee.

If having doubts about the truthfulness of the letter of guarantee or guarantee provision contract, the customs office may consult in writing the guarantor for verification and handling.

d/ The monitoring and handling of guarantee shall be carried out under Point d. Clause 3 of this Article and reconciliation must be made to ensure the balance between the guaranteed tax amount and the total payable tax amount. If the remaining guaranteed amount is smaller than the payable tax amount, the custom office shall effect customs clearance for the goods volume corresponding to the guaranteed tax amount and. at the same time, suspend the multiple guarantee and notify the taxpayer and the guarantor thereof. If the taxpayer wishes to have the whole goods lot cleared from customs procedures, he/she shall pay the deficit tax amount not yet guaranteed before receiving goods.

Article 20. Places and modes of tax payment

1. Taxpayers shall pay taxes for imports and exports directly to the State Treasury or via commercial banks, credit institutions or other service organizations according to Article 44 of the Law on Tax Administration.

2. In case taxpayers pay taxes in cash but the State Treasury does not set up tax collection counters at places of carrying out customs procedures, customs offices with which customs declarations are registered shall collect taxes from taxpayers and transfer the whole collected tax amounts to the State Treasury according to regulations.

3. In case taxpayers still owe tax or fine arrears to other customs offices at the time of customs declaration registration and wish to pay these arrears at the customs office which is carrying out customs procedures, taxpayers shall make declaration by themselves and remit money at tax collection counters set up by the State Treasury or to the customs office which is carrying out customs procedures (if no tax collection counter is set up by the State Treasury).

4. The State Treasury, commercial banks, credit institutions and other service organizations shall issue papers on remittance into the state budget to taxpayers according to a form issued by the Ministry of Finance.

Customs offices shall issue receipts to taxpayers, made according to a form prescribed by the Ministry of Finance, in case of collecting taxes in cash. In case a district-level Customs Department collects taxes for others, it shall fax tax receipts to district-level Customs Departments to which enterprises owe tax arrears for the latter to make a document to designate the collection and disposal of tax arrears as prescribed.

5. Within 8 working hours after collecting tax from taxpayers, the State Treasury, commercial banks, credit institutions, other service organizations or customs offices shall transfer collected tax amounts into customs offices' deposit accounts opened at the State Treasury, with regard to tax amounts collected for raw materials imported for export production, goods temporarily imported for re-export and goods temporarily exported for re-import, or remit these tax amounts into the State Treasury as for other cases.

For taxes collected in cash in deep-lying and remote areas, islands and areas difficult to access, the above time limit is extended to 5 working days after taxes are collected from taxpayers.

For tax amounts already remitted into customs offices' deposit accounts opened at the State Treasury, past 35 days from the date of actual tax collection, if taxpayers still fail to submit liquidation dossiers, customs offices shall carry out procedures to transfer these amounts into the state budget according to regulations.

Article 21. Tax payment for goods subject to survey

When necessary to survey technical standards or goods quality, quantity and category (identifying goods appellations and tariff codes, quality, quantity, technical standards and current state of imports) to ensure accurate tax calculation, taxpayers shall still pay tax under their declarations at the time of customs declaration registration; the tax payment time limit will comply with Point d, Clause 3, Article 18 of this Circular. If survey results are different from taxpayers" declarations, leading to a change in the payable tax amount, taxpayers shall pay tax according to survey results and the time limit for payment of the difference between the payable tax amount under survey results and the declared tax amount shall comply with Point e. Clause 3, Article 18 of this Circular.

Article 22. Order of tax payment

1. The order of tax payment is prescribed as follows:

1.1. When the Government's Resolution No. 30/2008/NQ-CP of December 11,2008, on some urgent measures to curb economic decline, maintain economic growth and ensure social welfare remains effective, the order of tax payment complies with Appendix II to this Circular;

1.2. When the Government's Resolution No. 30/2008/NQ-CP of December 11.2008. on some urgent measures to curb economic decline, maintain economic growth and ensure social welfare is no longer effective, the order of tax payment complies with Article 45 of the Law on Tax Administration and applies to due tax and fine amounts.

2. The State Treasury and customs offices shall coordinate with one another in sharing information on tax and fine collection in order to determine the order of collection and collect taxes in the prescribed order, specifically as follows:

a/ Customs offices shall monitor tax arrears of taxpayers, guide taxpayers to pay taxes in the prescribed order and develop a data system for reference by taxpayers to pay taxes in the prescribed order;

b/ Based on taxpayers' tax payment vouchers, the State Treasury shall account tax amounts as state budget revenues and transfer vouchers and supply information on paid amounts to customs offices for monitoring and management;

c/ In case taxpayers pay taxes in contravention of the prescribed order, customs offices shall make and send an order on adjustment of the collected tax amounts to the State Treasury for adjustment and, at the same time, notify taxpayers of adjusted tax and fine amounts;

d/ If taxpayers do not clearly write on tax payment vouchers the amount of each tax. customs offices shall account collected tax amounts in the prescribed order and. at the same time, notify the State Treasury thereof for the latter to account them as state budget revenues and inform such to taxpayers.

Article 23. Tax assessment

1. Tax assessment under this Circular means that customs offices exercise their powers to identify tax calculation factors and tax bases, calculate tax and notify and request taxpayers to pay tax amounts determined by customs offices in the cases specified in Clause 2 of this Article.

2. Customs offices shall conduct tax assessment in the cases specified in Article 39 of the Law on Tax Administration, in which:

a/ Taxpayers have based themselves on unlawful documents to declare tax bases or to calculate and declare payable tax amounts; fail to declare or have incompletely and inaccurately declared tax bases;

b/ Taxpayers refuse to supply or delay the supply of documents related to the determination of payable tax amounts to customs offices upon the expiration of the prescribed time limit;

c/ Customs offices have sufficient grounds to believe that the transaction value declared by taxpayers differ from the actual transaction value;

d/ Taxpayers have declared factors used as tax bases but cannot calculate payable tax amounts by themselves and request customs offices to do so.

3. Tax assessment shall be made on the principles prescribed in Article 36 of the Law on Tax Administration.

4. Bases for customs offices to conduct tax assessment are the quantity, taxed value and origin of, import duty, export duty, excise tax and value-added tax rates applicable to, goods actually imported or exported; the exchange rate used for tax calculation; prescribed tax calculation methods and other information and databases prescribed in Clause 2, Article 39 of the Law on Tax Administration, Article 27 of Decree No. 85/2007/ ND-CP and the guidance in Section 1, Part V of this Circular.

5. The competence to conduct tax assessment rests with the General Director of Customs; directors of the Customs Departments of provinces, inter-provinces or centrally run cities, heads of district-level Customs Departments and the director of the Department for Post-Customs Clearance Inspection.

6. Order of and procedures for tax assessment

a/ Assessment of taxes on imports and exports shall be made in the process of carrying out customs procedures or after goods are cleared from customs procedures.

b/ When conducting tax assessment, customs offices shall assess payable tax amount or each relevant factor (goods quantity, taxed value, code, tax rate, origin, exchange rate and norm) which are used as grounds for the determination of the total payable tax amount and tax amounts to be exempted, reduced or refunded for each goods item or customs declaration according to Articles 25 and 26 of Decree No. 85/2007/ND-CP.

In case of assessing each factor related to the determination of the payable tax amount, customs offices shall calculate the payable tax amount corresponding to the assessed factors and notify taxpayers thereof together with the results of assessment of factors related to the determination of the payable tax amount.

c/ Specific procedures and order:

- Identifying goods subject to tax assessment under the guidance in Clause 2 of this Article;

- Determining the method of tax assessment according to Articles 25 and 26 of Decree No. 85,' 2007/ND-CP for taking the following steps:

c.1/ In case of assessment of the total payable tax amount:

c.1.1/ Examining and determining tax bases (goods quantity, value, exchange rate, origin, code and tax rates) according to tax laws and relevant laws;

c.1.2/ Calculating the total payable tax amount: the difference between the payable tax amount and the tax amount declared, calculated and paid by the taxpayer (if tax has been paid);

c.1.3/ Issuing a decision on tax assessment and a decision on sanctioning of administrative violations (if any);

c.2/ In case of assessment of each relevant factor used as a ground for the determination of the total payable tax amount:

c.2.1/ Examining and determining relevant factors in an accurate and lawful manner;

c.2.2/ Determining the time of tax calculation and/or tax bases (goods quantity, value, tax rates) on the basis of relevant factors assessed by themselves or prescribed by tax laws and other relevant laws. If it is impossible to determine the time of tax calculation and/or tax bases for goods of similar categories under different customs declarations of which the use purposes have been changed, the assessed tax amount will be the average tax amount calculated according to legal documents which are effective at the time of customs declaration registration and the time of tax assessment;

c.2.3/ Calculating the payable tax amount and the difference between the payable tax amount and the tax amount declared, calculated and paid by the taxpayer (if tax has been paid);

c.2.4/ Issuing a decision on tax assessment and a decision on sanctioning of administrative violations (if any).

7. Responsibilities of customs offices:

a/ When conducting tax assessment, customs offices shall send to taxpayers a tax assessment decision, made according to Form No. 05, Appendix VI to this Circular (not printed herein), within 8 working hours after its signing;

b/ In case the tax amount assessed by customs offices is larger than the actual payable tax amount as prescribed, customs offices shall return the overpaid amount and pay compensation to taxpayers according to regulations, competent state agencies' decisions on settlement of complaints or court judgments or rulings.

8. Responsibilities of taxpayers:

a/ Taxpayers shall fully pay deficit, evaded and cheated tax amounts as assessed by customs offices, regardless of the statutes of limitations prescribed in Articles 107, 108 and 110 of the Law on Tax Administration;

Taxpayers who commit violations of tax laws shall be sanctioned according to regulations. The statute of limitations for sanctioning violations of tax laws is prescribed in Article 110 of the Law on Tax Administration and Decree No. 97/2007/ND-CP of June 7, 2007, on handling of administrative violations and coercive application of administrative decisions in the customs domain.

b/ If taxpayers disagree with tax assessment decisions of customs offices, they shall still pay the assessed tax amount and, at the same time, may request explanations from customs offices, make a complaint or initiate a lawsuit against tax assessment in accordance with the laws on complaints and initiation of lawsuits.

Article 24. Handling of overpaid tax or fine amounts

1. Tax or fine amounts for imports and exports are considered overpaid in the cases specified in Clause 1. Article 22 of Decree No. 85/2005/ND-CP.

2. The dossier of and procedures for the handling of overpaid tax and fine amounts specified at Point b, Clause 1, Article 22 of Decree No. 85/ 2005/ND-CP are guided in Section 6, Part V of this Circular.

3. In case taxpayers have paid an import duty, export duty, excise tax or fine amount larger than the payable tax or fine amount prescribed at Point a, Clause 1. Article 22 of Decree 85/2005/ND-CP the overpaid tax or fine amount shall be handled under the following guidance:

a/ A dossier comprises:

a.1/ The written request for the handling of the overpaid tax or fine amount, clearly stating the overpaid tax or fine amount, the payable tax or fine amount, actually paid tax or fine amount, reason for overpaid payment and proposed handling method: to submit 1 original;

a.2/ The customs dossier and other papers and documents related to the overpaid tax or fine amount: to submit 1 copy;

a.3/ Tax and fine payment vouchers: to submit 1 copy and produce the original for comparison.

b/ The customs office to which the taxpayer has overpaid taxes or fines shall receive and check the dossier submitted by the taxpayer and compare it with the original customs dossier kept at its office in order to determine its validity, accuracy and lawfulness, and proceed with the following:

b.1/ If determining that the actually paid tax or fine amount is larger than the payable tax or fine amount and the taxpayer's declarations are correct, the customs office shall issue a decision on handling of the overpaid tax or fine amount as the paid tax or fine amount is larger than the payable tax or fine amount under the taxpayer's declarations;

b.2/ If determining that the actually paid tax or fine amount is larger than the payable tax or fine amount but the taxpayer's declarations of the overpaid tax or fine amount are incorrect, the customs office shall send a written notification to the taxpayer and issue a decision on the handling of the overpaid tax or fine amount as the paid tax or fine amount is larger than the payable tax or fine amount in accordance with regulations:

b.3/ If determining that there is no actually overpaid tax or fine amount, the customs office shall send a written notification to the taxpayer, clearly stating grounds for determining that no tax or fine amount has been overpaid.

c/ Within 5 working days after the receipt of a complete dossier of request for refund of the overpaid tax or fine amount, the customs office shall issue a decision on handling of the overpaid tax or fine amount as the paid tax or fine amount is larger than the payable tax or fine amount or notify the taxpayer of his/her incorrect declarations of the overpaid tax or fine amount or the non-existence of the overpaid tax or fine amount.

d/ On the basis of the decision on handling of the overpaid tax or fine amount as the paid tax or fine amount is larger than the payable tax or fine amount, the customs office to which taxpayers have overpaid taxes or fines shall liquidate the overpaid tax or fine amount and write on the original customs declaration kept at its office and the original customs declaration kept by the taxpayer: "Handling of the overpaid tax or fine amount of VND... under Decision No.... dated... of..." and follow the order guided in Article 30 of this Circular.

4. Overpaid value-added tax amounts shall be handled under the guidance at Point c. Clause 2. Article 130 of this Circular.

Article 25. Customs clearance

1. In case goods are cleared from customs procedures under Clause 1. Article 25 of the Customs Law, and Clause 1. Article 12 of Decree No. 154/2005/ND-CP competent customs officers (prescribed by the General Director of Customs) shall decide on customs clearance after taxes are fully paid (for goods for which taxes must be fully paid before customs clearance) and complete customs procedures.

Particularly for imports subject to quality examination:

a/ In case the customs declarant has submitted a notice of quality examination exemption or a notice of goods' conformity with import quality standards made by an examination agency, the competent customs officer (as prescribed by the General Director of Customs) shall sign and append the stamp "Cleared from customs procedures" to the customs declaration before customs clearance;

b/ In case the customs declarant has only submitted the written registration for quality examination, the head of the district-level Customs Department shall write "Goods awaiting quality examination results" on the customs declaration. The goods owner shall keep the original state of goods until obtaining the examination agency's conclusions on goods quality and add these conclusions to the customs dossier within 30 days after the date when goods are brought to the place of examination (stated in the written registration for examination of imports quality) for examination.

The customs office shall monitor and receive examination results; sign and append the stamp "Cleared from customs procedures" to the customs declaration on the basis of the examination agency's conclusions on goods quality. Past the 30-day time limit, if the goods owner fails to submit or supplement the examination agency's conclusions on goods quality to the customs dossier, the customs office shall make a written record thereof and handle the violation in accordance with law.

2. Conditional customs clearance cases specified in Clause 2. Article 25. of the Customs Law, Clause 15, Article 1, of the Law Amending and Supplementing a Number of Articles of the Customs Law, and Clauses 2 and 3, Article 12, of Decree No. 154/2005/ND-CP are guided as follows:

a/ For imports or exports awaiting survey results to determine whether they can be imported or exported, if goods owners request to receive them back for preservation, heads of district-level Customs Departments may accept customs clearance only when they satisfy customs supervision conditions;

b/ For goods permitted for import or export but valuation, survey, analysis and classification need to be conducted to accurately determine payable tax amounts, customs clearance may only be accepted if goods owners pay taxes on the basis of tax self-declaration, calculation and payment or obtain guarantee for the payable tax amount from a credit institution or another institution licensed to conduct some banking activities, except for imports and exports subject to the tax payment time limit guided in Clause 1 and Point b, Clause 2, Article 18, of this Circular.

3. In case goods are cleared from customs procedures on the basis of survey results, these survey results will also apply to goods lots of the same category for which import procedures are carried out by enterprises at the same district-level Customs Department. This guidance does not apply to results of survey conducted to determine goods quantity.

Article 26. Certification of actual exportation of exports

1. For goods exported through border gates by sea, air, rail or inland waterway: Border-gate customs offices shall base themselves on the bills of lading and commercial invoices to certify that goods have been actually exported.

2. For goods exported through land or riverway border gates and Van Gia transshipment port, Quang Ninh province: The border-gate customs offices shall base themselves on the results of supervision of exports through border gates to certify that goods have been actually exported.

3. For exports consigned in bonded warehouses: The bonded warehouse customs offices shall certify as follows "Goods consigned into bonded warehouses."

4. For goods exported from Vietnam inland into export-processing zones, to export-processing enterprises or into non-tariff zones: The customs offices managing export-processing zones/export-processing enterprises/non-tariff zones shall certify as follows "Goods brought into the export-processing zone." "Goods exported to export-processing enterprises" or "Goods brought into non-tariff zone."

5. For on-spot imports or exports, customs offices will not give certification of actual exportation. The actual exportation of goods shall be determined on the basis of the completion of customs procedures for on-spot export declarations.

Article 27. Cancellation of customs declarations

1. Cases of cancellation of customs declarations:

a/ The customs declaration has been registered and goods are exempt from physical inspection but past the time limit of 15 days from the date of customs declaration registration, no imports or exports are available. Specifically:

a.1/ Past the time limit of 15 days from the date of registration of the export declaration, the custom declarant still fails to bring goods to the border gate of exportation:

a.2/ Past the time limit of 15 days from the date of registration of the import declaration, the customs declarant has received no goods.

b/ Past the time limit of 15 days from the date of customs declaration registration but the customs declarant still fails to produce imports or exports which are subject to physical inspection to the customs office for inspection.

2. The order of and procedures for cancellation of a customs declaration are prescribed as follows:

a/ Canceling the custom declaration: The customs officer shall cross out the to-be-cancelled customs declaration with a red-ink pen. sign and seal the cancelled declaration:

b/ Taking notes on the system: This declaration is cancelled.

c/ Filing the cancelled declaration by its registration number.

In case the customs declarant requests cancellation of a registered declaration, apart from the cancellation procedures prescribed above, the customs office shall withdraw the customs declaration (the copy kept by the customs declarant) and file it by its registration number (if the customs declarant does not register a new customs declaration) or file it together with the new customs dossier (if the customs declarant registers a new customs declaration).

Article 28. Review of customs dossiers

The review of customs dossiers may be conducted after goods lots have been cleared from customs procedures, and completed within 60 days from the date of signing the decision on customs clearance for these goods lots.

Article 29. Post-customs clearance inspection

Post-customs clearance inspection complies with Part VI of this Circular.

Chapter 2.

 SOME OTHER GUIDANCE ON CUSTOMS PROCEDURES FOR IMPORTS AND EXPORTS

Section 1. CUSTOMS PROCEDURES FOR GOODS IMPORTED AND EXPORTED BY MODE OF IMPORTING MATERIALS AND SUPPLIES FOR EXPORT PRODUCTION

Article 30. Materials and supplies imported for export production

Materials and supplies imported for export production include:

1. Materials, semi-finished products, parts and assemblies to be directly used in the production process, constitute exported products;

2. Materials and supplies directly used in the process of export production but neither being transformed into nor constituting products;

3. Finished products imported by enterprises for attachment to or packaging together with exports produced from imported materials and supplies or packaging together with exports produced from materials and supplies bought in the domestic market into complete goods for export abroad:

4. Supplies for use as packing or packing for exports;

5. Materials and supplies imported for the maintenance, repair or re-processing of exports;

6. Samples imported for export production which must be re-exported to foreign customers after completion of contracts.

Article 31. Products exported by mode of export production

1. Exports managed under the mode of export production include:

a/ Products which are wholly produced from materials and supplies imported for export production;

b/ Products which are produced from materials and supplies of two sources:

b.1/ Materials and supplies imported for export production;

b.2/ Materials and supplies of domestic origin or imported for domestic consumption.

2. Materials and supplies which are imported for domestic consumption may be used as materials and supplies imported by mode of export production, provided the duration from the date of registration of the customs declaration for the import of such materials and supplies to the date of actual exportation of products does not exceed 2 years.

3. Products produced from materials imported by mode of export production may be exported directly by importing enterprises or sold to other enterprises for export.

Article 32. Customs procedures for import of materials and supplies

1. Enterprises shall register materials and supplies imported for export production and carry out customs procedures for their import according to the list already registered at a district-level Customs Department (which is most convenient for enterprises).

2. Procedures for registration of imported materials and supplies

a/ Enterprises shall base on their export production plans to register with customs offices materials and supplies imported for export production according to a set form (Form No. 06/DMNVL-SXXK in Appendix VI to this Circular).

b/ Registration shall be made when carrying out import procedures for the first lot of raw materials and supplies listed in the registration document.

c/ Enterprises shall fully fill in the registration of imported materials and supplies, in which:

c.1/ Appellations are the appellations of all materials and supplies used for export production. These materials and supplies may be imported under one or several contracts.

c.2/ HS codes are codes of materials and supplies according to the current Import Tariff.

c.3/ Codes of materials and supplies shall be identified by enterprises under the guidance of the district-level Customs Department which carries out import procedures. These codes may only apply when enterprises carry out procedures for the import of materials and supplies at district-level Customs Departments applying information technology in monitoring and liquidating goods imported by mode of export production.

c.4/ Units of calculation comply with Vietnam's list of imports and exports.

c.5/ Major materials are those constituting the main composition of products.

Enterprises shall make uniform declarations in all items on appellations of materials and supplies. HS codes and major materials in the registration of imported materials and supplies and customs dossiers from the stage of importing materials and supplies till the liquidation, tax refund and non-collection of import duty.

3. Customs procedures comply with regulations applicable to commercial imports guided in Chapter I, Part II of this Circular.

Article 33. Procedures for registration and adjustment of norms of materials and supplies and registration of exported products

1. The registration and adjustment of norms and registration of exported products shall be carried out at the district-level Customs Department which has carried out procedures for the import of materials and supplies.

2. Registration of norms of raw materials and supplies

a/ Enterprises shall register norms of products exported by mode of export production in strict accordance with actual norms.

b/ Norms must be registered for each product code according to Form No. 07/DKDM-SXXK in Appendix VI to this Circular.

c/ Norms must be registered with customs offices before carrying out customs procedures for export of the first goods lot of product codes listed in the norm registration document.

d/ Norms of materials and supplies are those actually used in export production, including the proportion of scraps and discarded products within consumption norms collected in the process of producing exports from imported materials and supplies. Enterprises' directors shall declare and take responsibility before law for the import and use of materials and supplies imported for export production and the actual norms used in export production, including the proportion of scraps and discarded products within consumption norms collected in export production, upon declaration of actual use norms to customs offices. If making inaccurate declarations, taxpayers shall, apart from having to fully pay deficit tax amounts, be sanctioned according to regulations.

Methods for calculation of norms:

d.1/ For materials constituting or being transformed into products: Material use norm is the amount of materials constituting or being transformed into a product unit; wastage rate is the proportion (%) of material wastage (including the amount of materials constituting scraps and discarded products) to materials constituting or being transformed into products;

d.2/ For materials and supplies used directly in export production but neither constituting nor being transformed into products: Material and supplies norm is the amount of materials and supplies consumed in the process of producing a product unit; wastage rate is the proportion (%) of material and supplies to materials and supplies consumed in the production process.

3. Adjustment of norms

a/ During production, if there is any change in actual norms, enterprises may adjust norms applicable to goods codes already registered with customs offices to suit new actual norms but shall give written explanations for each adjustment.

b/ The adjustment of norms must be carried out before carrying out export procedures for the lot of products with adjusted norms.

In case due to change in models or categories of exports, other raw materials and supplies imported for export production with consumption norms different from registered ones are used in the process of production, enterprises shall adjust norms and declare them to the customs office within 15 days before carrying out procedures for export of products.

4. In case of carrying out procedures for import of materials and supplies at district-level Customs Departments applying information technology to liquidation, enterprises shall register exported products according to Form No. 08/DMSP-SXXK in Appendix VI to this Circular. The place and time of registration are similar to those for registration of norms.

5. Tasks of customs offices:

a/ To receive enterprises' registration of norms and registration of exported products;

b/ To examine norms registered by enterprises under the guidance on examination of norms applicable to exported products in the Finance Ministry's Circular No. 16/2008/TT-BTC hướng dẫn thủ tục hải quan hàng hoá gia công thương nhân nước ngoài">116/2008/TT-BTC of December 4, 2008, guiding customs procedures for goods processed for foreign traders.

6. In case materials and supplies are imported for production of goods for domestic consumption but enterprises later find out export outlets and use these materials and supplies for export production and goods have been actually exported abroad, the registration and adjustment of norms will comply with this Circular.

Article 34. Customs procedures for export of products

1. Customs procedures for export of products shall be carried out at the district-level Customs Department which has carried out procedures for import of raw materials or at other district-level Customs Departments provided that before carrying out export procedures, enterprises shall send a written notification (made according to Form No. 09/HQXKSP-SXXK in the Appendix VI to this Circular) to the district-level Customs Department which has carried out procedures for import of materials and supplies, for monitoring and liquidation.

2. Customs procedures are the same as those applicable to commercial exports guided in Chapter I, Part II of this Circular.

When conducting physical inspection of goods, enterprises shall produce samples of materials taken upon importation and the table of norms registered with customs offices to customs officers for inspection and comparison with exported products.

Article 35. Liquidation of import declarations

1. The procedures for liquidation of import declarations shall be carried out at the district-level Customs Department which has carried out procedures for import of materials and supplies.

2. Liquidation principle:

a/ Import declarations and export declarations which are registered first must be liquidated first; in case an import declaration is registered first, but as materials and supplies imported under this declaration have not yet been used for production, it cannot be liquidated. Enterprises shall give written explanations to customs offices when carrying out liquidation procedures.

b/ Import declarations for materials and supplies must be registered before export declarations for products;

c/ A declaration for the import of raw materials and supplies may be liquidated several times.

d/ An export declaration shall be liquidated only once.

Particularly in some cases in which a single goods lot is liquidated several times or goods exported by mode of export production are produced with raw materials imported for commercial purposes for which import procedures have been carried out at other district-level Customs Departments, one export declaration may be liquidated in part. The customs office shall, when carrying out liquidation, append the stamp "already liquidated' to the export declaration, the original import declaration kept at its office and the original customs declaration kept by the customs declarant. In case of partial liquidation, it is necessary to make an annex clearly stating the liquidated contents (import declaration, materials and tax amount) for use as a basis for the liquidation of the subsequent part.

3. Liquidation dossiers and time limit for submission of liquidation dossiers are guided in Article 117 and Clause 2, Article 131 of this Circular.

4. District-level Customs Departments carrying out liquidation procedures shall receive and process liquidation dossiers and handle violations (if any) in accordance with law.

5. In case goods being materials imported for export production are not used for production and enterprises wish to use them for domestic consumption, they shall send a document to the district-level Customs Departments which has carried out import procedures, for changing the use purpose to domestic consumption and conduct liquidation on the basis of the import declaration for materials. Enterprises are not required to register new declarations but declare and pay import duty, excise tax and value-added tax (if any) according to regulations. The time limit for payment of taxes and fines for late payment comply with Clause 2, Article 18 of this Circular.

Article 36. Procedures applicable to cases in which products are sold to other enterprises for direct export

1. Enterprises importing materials and supplies for export production shall carry out procedures for import, registration of norms and liquidation under this Circular.

2. Enterprises directly exporting products shall carry out export procedures under this Circular. Export declarations shall be registered for the mode of export production, with the phrase "Products produced from materials and supplies imported for export production" and the name of the selling enterprise.

Section 2. FOR GOODS TEMPORARILY IMPORTED FOR RE-EXPORT AND TRANSPORTED FROM OR TO BORDER GATE

Article 37. Customs procedures for goods temporarily imported for re-export

Customs procedures for goods temporarily imported for re-export shall be carried out similarly to those applicable to commercial imports and exports. Besides, due to particular characteristics of this mode, some contents are further guided as follows:

1. Places of customs clearance

a/ Customs procedures for goods temporarily imported for re-export may only be carried out at border gates.

b/ When goods are re-exported, customs procedures shall be carried out at border gates of importation or border gates of re-exportation.

c/ Goods temporarily imported for re-export which are on the list of goods banned from import shall be stored in the area of the border gate of importation and customs procedures shall be carried out at the district-level Custom Department of the border gate through which they have been temporarily imported. In case goods are permitted to be re-exported through a border gate other than the border gates through which they have been temporarily imported, in the process of transportation to the border gate of exportation, they will be subject to supervision like goods transported from or to border gate.

2. Management of goods temporarily imported for re-export

a/ When carrying out re-export procedures, apart from documents as required for commercial goods, customs declarants shall submit a copy and produce the original declaration of temporarily imported goods;

b/ Temporarily imported goods are subject to customs supervision and may be divided into several goods lots for re-export. When re-exporting goods, enterprises shall re-export the whole volume of goods declared on a re-export declaration.

c/ Re-exported goods for which customs procedures have been completed must be exported through border gates within 8 working hours after the goods arrival to the border gate of exportation. In case there are plausible reasons accepted by heads of district-level Customs Departments of border gates of exportation, re-exported goods may be stored at border gates of exportation for a duration which must not exceed the validity duration of re-export declarations.

3. Liquidation of temporary import declarations

a/ District-level Customs Departments which have carried out procedures for temporary import shall conduct liquidation of temporary import declarations.

b/ Liquidation dossiers comply with the guidance in Clause 2, Article 131 of this Circular.

c/The time limit for submission of liquidation dossiers comply with the guidance in Clause 2, Article 131 of this Circular.

d/ In case goods are temporarily imported but not wholly re-exported, if enterprises wish to use the remainder for domestic consumption, they shall send a request to customs offices. District-level Customs Departments which have carried out procedures for temporary import shall consider and permit enterprises to use them for domestic consumption and conduct liquidation on the basis of the temporary import declarations. Enterprises are not required to register new declarations but shall declare and pay import duty, excise tax and value-added tax (if any) according to regulations. The time limit for payment of taxes and fines for late tax payment complies with Clause 2, Article 18 of this Article.

Temporarily imported goods which are used for domestic consumption must comply with the tax policy and import management policy like goods imported for commercial purposes.

Article 38. Customs procedures for goods transported from or to border gate

1. If goods transported from or to border gate are transferred directly from the exporting country to the importing country without going through a Vietnamese border gate, customs procedures are not required to be carried out.

2. If goods transported from or to border gate are transported directly from the exporting country to the importing country through a Vietnamese border gate but not consigned in bonded warehouses or transshipment areas at Vietnamese ports, customs offices shall supervise goods until they are actually exported out of Vietnam.

3. If goods are transported from the exporting country to the importing country through a Vietnamese border gate and consigned in bonded warehouses or transshipment areas at Vietnamese ports, customs procedures shall be carried out as for goods brought into and out of bonded warehouses and cargo transshipment areas at Vietnamese ports.

4. Goods traded by mode of transportation from or to border gate must be brought out of the Vietnamese territory through the border gate of importation.

5. Goods traded by mode of transportation from or to border gate are exempt from inspection. In case of detecting signs of violation, customs inspection shall be conducted under Article 14 of this Circular.

Section 3. OTHER CASES

Article 39. Customs procedures for imports and exports for the performance of processing contracts with foreign traders

Customs procedures for imports and exports for the performance of processing contracts with foreign traders comply with the Finance Ministry's Circular No. 16/2008/TT-BTC hướng dẫn thủ tục hải quan hàng hoá gia công thương nhân nước ngoài">116/2008/TT-BTC of December 4, 2008. guiding customs procedures for goods processed for foreign traders.

Article 40. Customs procedures for imports and exports subject to single registration of customs declarations

1. Single registration of declarations is applicable to imports and exports of all types which meet the following conditions:

a/ Names of goods on customs declarations are unchanged within the validity duration of single-registered declarations;

b/ Goods declared on declarations are under the same contract; the goods trading contract has a term on multiple delivery of goods;

c/ Enterprises being goods owners have a good record of customs law observance.

2. Validity of a registered declaration

a/ A declaration is valid within the validity duration of a contract. For processed goods indicated in a contract annex, the declaration is valid within the annex's validity duration.

b/ A declaration's validity will terminate ahead of time in the following cases:

b.1/ There is a change in duty policy or import and export management policy applicable to the goods items indicated on the declaration;

b.2/ The import or export permit or the contract expires;

b.3/ The enterprise has fully imported or exported the volume of goods indicated on the declaration;

b.4/ The enterprise notifies its discontinuation to carry out procedures for the import or export of the whole volume of goods indicated on the declaration;

b.5/ The enterprise imports or exports each time goods with names or codes which are different from those indicated on the single-registered customs declaration;

b.6/ The enterprise is subject to a coercive measure within the validity duration of the single-registered declaration;

b.7/ Within the validity duration of a single-registered declaration, the enterprise commits a violation of law. failing to satisfy the condition mentioned at Point c. Clause 1 of this Article.

3. Import or export procedures in the form of single registration of declarations shall be carried out at district-level Customs Departments.

4. Procedures for single registration of declarations

a/ The customs declarant shall fill in the customs declaration and the imports or exports monitoring book. Some items on the declaration for each importation or exportation (transportation documents, means of transport) need not to be filled in.

b/ A customs dossier comprises:

b.1/ The customs declaration of imports or exports: to submit 2 originals;

b.2/ The goods trading contract or paper of equivalent legal validity: to submit 1 copy;

b.3/ The import or export permit issued by a competent state management agency (for goods for which import or export permit is required under law): to submit 1 copy and produce the original for comparison and issuance of a slip for monitoring and reconciliation, or submit 1 original (if goods indicated on the single-registered declaration are all allowed to be imported or exported under the permit);

b.4/ The imports or exports monitoring book: 2 books (made according to a form provided by the General Department of Customs).

c/ The direct-level Customs Department shall receive dossiers, register declarations and return one declaration and one imports or exports monitoring book to the enterprise.

5. Procedures to be carried out upon each importation or exportation

a/ The customs declarant shall submit papers in the customs dossier prescribed for each mode of importation or exportation (except those already submitted upon declaration registration); produce the registered customs declaration and the imports or exports monitoring book.

b/ The head of the district-level Customs Department shall, based on the form and extent of inspection notified through the risk management system upon customs declaration registration and on the practical situation at the time of each importation or exportation, decide on the form and extent of customs inspection appropriate to each importation or exportation.

6. Procedures for liquidation of declarations

a/ Responsibilities of the enterprise:

a.1/ Within 15 working days after a customs declaration expires, to carry out procedures for liquidation of the declaration with the district-level Customs Department;

a.2/ To submit the liquidation dossier, comprising the customs declaration and the imports or exports monitoring book.

b/ The district-level Customs Department shall check, compare and certify the total volume of actually imported or exported goods in the customs declaration.

Article 41. Customs procedures for on-spot imports and exports

1. Interpretation of terms

a/ On-spot imports or exports means goods exported by Vietnamese traders (including also foreign-invested traders and export-processing enterprises) to foreign traders that designate other Vietnamese traders to receive those goods in Vietnam.

b/ On-spot exporter (below referred to as exporting enterprise) means an entity designated by a foreign trader to deliver goods in Vietnam.

c/ On-spot importer (below referred to as importing enterprise) means an entity that purchases goods from a foreign trader which are designated by that foreign trader to be received goods in Vietnam from an exporting enterprise.

2. Bases for determining on-spot imports or exports

a/ For processed products; hired or borrowed machinery and equipment; redundant raw materials, auxiliary materials and supplies; and scraps and discarded products under processing contracts: Clause 3, Article 33 of the Government's Decree No. 12/20067ND-CP of January 23. 2006. detailing the Commercial Law regarding goods international trading and goods trading agency, processing and transit with foreign parties.

b/ For goods of foreign-invested enterprises: the guidance of the Ministry of Industry and Trade.

c/ For goods of other types: Clause 2. Article 15 of Decree No. 154/2005/ND-CP.

3. Customs procedures for on-spot import or export shall, depending on the mode of importation or exportation, be carried out at the district-level Customs Department of the locality which is the most convenient as selected by the enterprise.

4. A customs dossier comprises:

a/ The on-spot import or export declaration (made according to Appendix IV with use instructions provided in Appendix V to this Circular): to submit 4 originals;

b/ The goods trading contract or processing contract designating the delivery of goods in Vietnam (for exporters); the goods trading contract or processing contract designating the receipt of goods in Vietnam (for importers); and the hiring or borrowing contract: to submit 1 copy;

c/ The added-value invoice issued by the exporting enterprise (the original handed to customer): to submit 1 copy;

d/ Other papers prescribed for each mode of importation or exportation (except the bill of lading).

5. Within 30 days after the exporting enterprise signs 4 customs declarations for certification of the delivery of goods to the importing enterprise, the on-spot importing enterprise and on-spot exporting enterprise shall carry out customs procedures.

Past the above time limit, if the on-spot importing enterprise has completed customs procedures while the on-spot exporting enterprise has not yet carried out customs procedures, the customs office carrying out on-spot export procedures shall make a written record and administratively sanction the on-spot exporting enterprise, and carry out customs procedures without canceling the customs declaration.

6. Customs procedures for on-spot import

a/ Responsibilities of the exporting enterprise:

a.1/ To fully fill in the items in 4 declarations reserved for exporting enterprises, sign and append its seal;

a.2/ To hand 4 customs declarations, goods and the added-value invoice (the original handed to customer, indicating the foreign trader's name, the importing enterprise's name and Vietnam-based place for goods delivery) to the importing enterprise.

b/ Responsibilities of the importing enterprise:

b.1/ After receiving 4 customs declarations, to completely fill in the items in these declarations as required;

b.2/ To receive and preserve goods delivered by the on-spot exporting enterprise pending the decision of the district-level Customs Department carrying out on-spot import procedures on the form and extent of customs inspection;

Goods exempt from physical inspection may be immediately put into production; goods subject to physical inspection may be put into production only after inspection.

b.3/ To submit the customs dossier and samples of on-spot imports (for those used as raw materials for export processing and production) to the district-level Customs Department of the locality where the enterprise carries out import procedures, in order to carry out on-spot import procedures under regulations, depending on each mode of importation;

b.4/ After completing on-spot import procedures, to keep one declaration and hand 2 others to the exporting enterprise.

c/ Responsibilities of the district-level Customs Department carrying out on-spot import procedures:

c.1/ To receive and register declarations, decide on the form and extent of inspection under regulations, depending on each mode of importation, and inspect duty calculation (for dutiable goods) for imports under current regulations. To seal and hand samples (if any) to the enterprise for preservation and production to the customs office upon request;

c.2/ To inspect goods subject to inspection;

c.3/ To certify the completion of customs procedures, sign and append an officer seal to the 4 declarations;

c.4/ To keep one declaration and documents submitted by the enterprise and return to the importing enterprise 3 declarations and documents produced by the enterprise;

c.5/ To send a written notice to the tax agency directly managing the on-spot importing enterprise for monitoring or an electronic notice if network connection is available between the district-level Customs Department and the local tax agency.

7. Customs procedures for on-spot export

a/ After receiving 2 on-spot import-export declarations certified by the customs office carrying out import procedures, the exporting enterprise shall submit the customs dossier to the district-level Customs Department of the locality where the enterprise carries out export procedures, in order to carry out on-spot export procedures.

b/ Responsibilities of district-level Customs Departments carrying out on-spot export procedures:

b.1/ To receive customs dossiers of on-spot export;

b.2/ To take the steps of declaration registration under regulations, suitable to each mode of importation or exportation: and inspect duty calculation (if any). To certify the completion of customs procedures, sign and append an officer seal to customs declarations;

b.3/ To keep one declaration and documents submitted by the enterprise and return to the enterprise one declaration and documents produced by the enterprise.

8. In case the on-spot exporting enterprise and on-spot importing enterprise carry out procedures at the same district-level Customs Department, this Customs Department shall sign for certification in both sections for the customs office carrying out export procedures and customs office carrying out import procedures.

9. For on-spot imported processed products for trading in the inland, customs procedures shall be carried out under Circular No. 16/2008/TT-BTC hướng dẫn thủ tục hải quan hàng hoá gia công thương nhân nước ngoài">116/2008/TT-BTC rather than the guidance of this Article.

10. The liquidation and duty refund (non-collection) comply with Section 6, Part V of this Circular.

Article 42. Customs procedures for imports or exports for the implementation of investment projects

1. Customs procedures for imports or exports for enterprises' activities comply with regulations applicable to each mode of importation or exportation guided in this Circular.

2. Customs procedures for imports for the formation of fixed assets; and raw materials, supplies, parts or semi-finished products to serve production under projects eligible for investment incentives:

a/ To register lists of duty-exempt imports with the customs office in case of importation of goods for the formation of fixed assets; duty-exempt raw materials, supplies, parts or semi-finished products to serve production under projects eligible for investment incentives;

Registration procedures are guided in Article 101 of this Circular.

b/ Import procedures

b.1/ The enterprise shall carry out customs procedures for importation at the district-level Customs Department of the locality where the goods are imported or the district-level Customs Department of the locality where an investment project is formulated.

b.2/ Customs procedures are similar to those for commercial imports or exports specified in Chapter I, Part II of this Circular. In addition, some other jobs shall be done under Articles 101, 102 and 103 of this Circular.

3. Liquidation of imports

a/ Forms of liquidation, goods subject to liquidation, liquidation conditions and dossiers of liquidation of duty-exempt imports are guided in the Trade Ministry's Circular No. 04/2007/TT-BTM of April 4, 2007, guiding import, export, processing and liquidation of imports and sale of products of foreign-invested enterprises.

The liquidation of duty-exempt imports of domestic investment enterprises is guided in Circular No. 04/2007/TT-BTM.

b/ Liquidation procedures shall be carried out at the customs office where the list of duty-exempt imports is registered.

c/ Liquidation procedures

c.1/ The enterprise or liquidation board shall prepare a document stating the liquidation reason, names, codes and volumes of to-be-liquidated goods under import declaration No .... dated .... and send it to the customs office where the list of duty-exempt imports is registered.

c.2/ In case of liquidation in the form of export, the enterprise shall make an export declaration, In case of liquidation in the form of sale in the Vietnamese market, or donation, duty declaration and calculation complies with the guidance in this Circular, and a new declaration is not required to be made.

c.3/ In case of destruction, the enterprise shall comply with regulations of the environment management agency and the customs office's supervision.

Article 43. Customs procedures for goods brought out of and into ports of transshipment

1. Customs procedures for goods brought out of and into ports of transshipment for transportation
abroad

a/ Customs declaration shall be made for goods brought into and out of ports of transshipment in the same declaration according to a form provided by the General Department of Customs. Customs declaration shall be made by transshipment service providers.

b/ A customs dossier comprises the original declaration of transshipped goods.

c/ For inspection-exempt goods brought into and out of ports of transshipment, the customs office shall only check the quantity of containers and compare numbers and markings of containers with the declared ones. If detecting violations, the customs office shall conduct inspection under regulations.

d/ For goods transshipped via the Vietnamese territory, customs procedures are similar to those for goods in transit.

2. Liquidation of declarations of transshipped goods

a/ Within 10 days after all goods are brought out of a port of transshipment, the transshipment service provider shall liquidate declarations of transshipped goods.

b/ Quarterly, within 15 days after the reporting period, the transshipment service provider shall report on and compare the quantity of goods brought into and out of and kept in the transshipment area to the customs office of the transshipment area.

3. Goods left stuck at ports of transshipment shall be handled like imports left stuck at seaports under the Finance Ministry's Circular No. 05/2003/TT-BTC of January 13,2003, guiding the handling of goods left stuck at Vietnamese seaports.

Article 44. Customs procedures for goods brought into or out of non-tariff zones in economic zones or border-gate economic zones; means of transport on entry, exit or in transit via non-tariff zones

1. Goods brought into or out of non-tariff zones are subject to customs clearance, inspection and supervision.

Goods of a certain type are subject to the process of customs procedures currently applicable to that type.

2. When bringing goods from abroad into a non tariff zone, the customs declarant shall properly fill in the customs declaration required for each mode of importation and submit it to the customs office managing this non-tariff zone, stating that the goods are duty-exempt (except goods items ineligible for duty incentives for imports).

Non-tariff zone enterprises importing raw materials or supplies for production and business shall register with the customs office names of to-be-produced products, names of imported raw materials or supplies and norms of raw materials and supplies imported for production. Norms of raw materials and supplies imported for producing goods for sale in non-tariff zones shall be registered before reporting on liquidation. The registration of norms of raw materials and supplies imported for export processing and production complies with relevant regulations.

In case non-tariff zone enterprises import raw materials, supplies or parts for producing goods for sale on the inland market, the customs declarant shall, when registering import declarations, register and declare names and volumes of goods, kinds and value of each imported raw material, supply or part: names of products produced in non-tariff zones from imported raw materials, supplies or parts for sale on the inland market.

3. Customs procedures for goods brought from the inland into non-tariff zones

a/The inland enterprise shall carry out customs procedures according to regulations applicable to each mode of exportation at the customs office in the inland or the customs office managing the non-tariff zone. If customs procedures are carried out at the customs office in the inland, the transportation of goods into the non-tariff zone complies with regulations applicable to exports transported from or to border gate.

Non-tariff zone enterprises shall carry out customs procedures according to regulations applicable to each mode of importation at the customs office managing the non-tariff zone.

b/ Physical inspection of goods complies with regulations applicable to goods exported abroad. If procedures for goods brought into a non-tariff zone are carried out by a customs office other than the customs office managing the non-tariff zone, the customs office managing the non-tariff zone shall, when detecting violations, re-inspect goods under regulations.

4. Customs procedures for goods exported abroad from non-tariff zones

a/ Customs procedures for goods exported abroad from non-tariff zones shall be carried out under regulations applicable to each mode of exportation.

b/ For goods imported from abroad or the inland by non-tariff zone enterprises for exporting them in their original state abroad, when carrying out export procedures, the enterprise shall fill in the export declaration "export of goods imported from abroad in their original state in declaration No. ..." or "export of goods imported from the inland in their original state in declaration No. enclosed with the initial import declaration and manifest of goods (if any).

5. Customs procedures for goods brought from non-tariff zones into the inland

a/ Non-tariff zone enterprises shall carry out export procedures under regulations applicable to each mode of exportation. Inland enterprises shall carry out import procedures under regulations applicable to each mode of importation. Import and export procedures shall be carried out at head offices of customs offices managing non-tariff zones.

b/ To help inland enterprises calculate payable duty amounts upon carrying out import procedures, non-tariff zone enterprises shall:

b.1/ Before carrying out export procedures, register with the customs office norms of imported raw materials, supplies or parts constituting the products, if exports are produced in non-tariff zones.

When carrying out export procedures, fill in export declarations the names and types of imported raw materials, supplies or parts constituting the products.

b.2/ In case goods are imported from abroad or the inland by non-tariff zone enterprises for exporting them in their original state into the inland, when carrying out export procedures, fill in the export declaration "export of goods importedfrom abroad in their original state in declaration No. ..." or "export of goods imported from the inland in their original state in declaration No. enclosed with the initial import declaration and manifest of goods (if any).

b.3/ Supply inland enterprises with adequate dossiers and data for calculating payable duty amounts.

6. Goods processing between non-tariff zone enterprises and inland enterprises

a/ In case inland enterprises undertake to process goods for non-tariff zone enterprises: Inland enterprises shall register processing contracts and carry out customs procedures for those contracts at customs offices managing non-tariff zones. Customs procedures are similar to those for processing for foreign traders.

b/ In case inland enterprises order goods processing by non-tariff zone enterprises: Inland enterprises shall register processing contracts and carry out customs procedures for those contracts at customs offices managing non-tariff zones or customs offices in the inland. Customs procedures are similar to those applicable to inland enterprises placing overseas processing orders.

7. Customs procedures for goods purchased at shops or department stores in non-tariff zones and
brought into the inland

a/ Persons who purchase goods at shops or department stores in non-tariff zones and bring them into the inland shall pay import duty thereon under regulations before bringing the goods out of non-tariff zones.

For those entitled to purchase duty-free goods within quotas in non-tariff zones in border-gate economic zones under the Prime Minister-issued Regulation on operation of non-tariff zones, they shall pay duty on the volumes of goods in excess of duty-free quotas brought into the inland.

b/ When purchasing goods at shops or department stores in non-tariff zones, purchasers shall produce identity cards or passports (for foreigners) to goods sellers and to gate-control customs offices when bringing goods out of non-tariff zones.

c/ When selling goods to customers, sellers shall issue sale invoices and record every sale in the sale monitoring books indicating names, addresses and numbers of identity cards or passports of purchasers; quantity, unit price and value of goods sold to each purchaser.

d/ Depending on specific conditions in each non-tariff zone, duty on goods purchased in non-tariff zones and brought into the inland shall be collected in either of the following ways:

d.1/ Purchasers declare and pay duty at non-tariff zones' control-gate customs offices:

- Before bringing goods out of non-tariff zones, purchasers shall declare duty-liable goods in non­commercial declarations; submit declarations, produce identity cards, goods and sale invoices (originals handed to purchaser) to non-tariff zones' gate customs offices;

- Non-tariff zones' gate customs offices shall check the identity cards against their holders who bring the goods and the goods against their customs declarations and sale invoices, and. if all details match, issue duty receipts, collect duty amounts and remit them into the state budget according to law.

d.2/ Customs offices managing non-tariff zones authorize goods sellers to collect duty:

- The authorization of goods sellers to collect duty complies with Clause 2. Article 3 of Decree No. 85/2007/ND-CP Responsibilities of authorized duty collectors and tax administration agencies are defined in Clauses 3 and 4. Article 3 of Decree No. 8572007/ND-CP;

- When bringing goods out of non-tariff zones, purchasers shall produce their identity cards, goods, sale invoices and duty receipts to non-tariff zones* gate-control customs offices;

- Non-tariff zones' gate customs offices shall check the identity cards against their holders who bring the goods and the goods with their sale invoices and duty receipts. If detecting any disparity between goods bringers and photos in the identity cards, between the identity cards' numbers indicated on sale invoices or duty receipts and those of the identity cards produced by goods bringers. or between goods brought out of non-tariff zones and those indicated on sale invoices or duty receipts, customs offices shall make records thereof and handle the violations in accordance with law.

8. Customs supervision of goods brought out of, into or via non-tariff zones

a/ Non-tariff zones must have fences separating them from the outside, and customs control gates for supervising goods brought out of and into the areas.

b/ Goods brought out of or into non-tariff zones and goods transported via non-tariff zones to be imported into the inland or exported abroad must go through customs control gates and are subject to customs supervision at these gates.

c/ Goods imported from abroad into the inland or goods exported abroad from the inland via non-tariff zones must follow the routes jointly prescribed by customs offices managing non-tariff zones and non-tariff zone management boards.

9. Customs procedures and supervision of means of transport on entry, exit or in transit via non-tariff zones (for non-tariff zones with road border gates) comply with regulations applicable to means of transport on entry, exit or in transit via Vietnam.

10. Liquidation reporting procedures

a/ Biannually production and business enterprises in a non-tariff zone shall, within 15 days after the reporting period, report to the customs office on imports and exports in the period and on ex-warehoused, warehoused and in-stock goods according to a form provided by the General Department of Customs.

Reporting dossiers include:

a.1/ Dossiers to be submitted:

- General list of raw materials and supplies imported in the reporting period: 2 originals;

- General list of raw materials and supplies purchased in the non-tariff zone in the reporting period (if any): 2 originals;

- General list of products exported in the reporting period: 2 originals;

- General list of products sold in the non-tariff zone in the reporting period (if any): 2 originals:

- General list of raw materials and supplies used for export production and sold in the non-tariff zone in the reporting period: 2 originals:

- Report on raw materials and supplies ex-warehoused, warehoused and left in stock in the reporting period: 2 originals;

- Copies of invoices of raw materials and supplies purchased in the non-tariff zone in the reporting period (if any):

- Copies of invoices of products sold in the non-tariff zone in the reporting period (if any).

a.2/ Dossiers to be produced:

- Declarations of raw materials or supplies imported in the reporting period:

- Declarations of products exported in the reporting period:

- Originals of invoices of raw materials or supplies purchased in the non-tariff zone in the reporting period (if any);

- Originals of invoices of products sold in the non-tariff zone in the reporting period (if any).

b/ Monthly, commercial business enterprises in a non-tariff zone shall, not later than the 15th of the subsequent month, report on imports and exports in the period and on ex-warehoused, warehoused and in-stock goods to the customs office managing the non-tariff zones

Reporting dossiers include:

b.1/ Dossiers to be submitted:

- General list of goods imported from abroad in the reporting period: 2 originals;

- General list of goods imported from the inland in the reporting period (if any): 2 originals;

- General list of goods purchased in the non-tariff zone in the reporting period (if any): 2 originals;

- General list of goods sold in the non-tariff zone in the reporting period: 2 originals;

- General list of goods exported in the reporting period (if any): 2 originals;

- Report on goods ex-warehoused, warehoused and left in stock in the reporting period: 2 originals:

- Copies of invoices of goods purchased and sold in non-tariff zones in the reporting period (if any).

b.2/ Dossiers to be produced:

- Declarations of goods imported or exported in the reporting period;

- Originals of invoices of goods sold or purchased in the non-tariff zone in the reporting period (if any);

c/ For processed goods, liquidation procedures comply with regulations on liquidation of processing contracts.

d/ For enterprises conducting production and business, commercial business and goods processing simultaneously, liquidation shall be conducted according to the form of production, business or processing.

e/ Customs offices managing non-tariff zones shall examine and compare enterprises' reports, and inspect goods left in stock when necessary; and handle violations of illegally taking imports in non-tariff zones into the inland.

If detecting that goods brought from the inland into non-tariff zones are brought back into the inland, customs offices managing non-tariff zones shall notify provincial-level Tax Departments of localities where inland enterprises bringing goods into non-tariff zones are headquartered, for coordinated handling.

Article 45. Customs procedures for imports and exports of export-processing enterprises

1. General principles

a/ Customs procedures for imports and exports of export-processing enterprises are applicable to export-processing enterprises inside and outside export-processing zones.

b/ Export-processing enterprises' imports and exports must go through customs procedures under regulations applicable to each mode of importation or exportation. Particularly, the purchase of stationery and goods in the inland market for export-processing enterprises' day-to-day activities complies with Article 21 of the Government's Decree No. 29/2008/ND-CP of March 14, 2008, on industrial parks, export-processing zones and economic zones.

c/ Goods transferred internally within an export-processing enterprise are not subject to customs procedures.

d/ Export-processing enterprises' imports shall be transported from border gates of importation to export-processing enterprises, while their exports shall be transported from export-processing enterprises from or to border gates of exportation.

e/ Customs offices managing export-processing zones and export-processing enterprises shall conduct direct supervision at entrances of export-processing zones and at export-processing enterprises only when necessary as decided by directors of provincial-level Customs Departments.

2. Places for customs clearance

a/ For imports and exports: Customs procedures shall be carried out at customs offices managing export-processing enterprises.

b/ For goods processed between export-processing enterprises and inland enterprises:

Inland enterprises shall carry out customs procedures at customs offices managing export-processing enterprises or district-level Customs Departments of localities where inland enterprises are headquartered.

c/ For goods processed between two export-processing enterprises: Processing enterprises shall register processing contracts and carry out customs procedures at their managing customs offices.

3. Customs procedures for export-processing enterprises' imports and exports

a/ For imports from abroad

a.1/ For imports for the formation of fixed assets, customs procedures shall be carried out according to regulations applicable to duty-exempt goods imported for the formation of fixed assets under Point b, Clause 2, Article 42 of this Circular.

a.2/ For raw materials and supplies imported for export production, export-processing enterprises shall carry out import procedures under regulations applicable to commercial imports, except for duty declaration and calculation.

a.3/ Goods processed for foreign traders comply with the guidance in Circular No. 16/2008/TT-BTC hướng dẫn thủ tục hải quan hàng hoá gia công thương nhân nước ngoài">116/2008/TT-BTC.

b/ For export-processing enterprises' goods exported abroad, these enterprises shall carry out export procedures under regulations applicable tc commercial exports, except for duty declaration and calculation.

c/ For export-processing enterprises' goods sold into the inland

c.1/ For products produced and sold into the inland by export-processing enterprises, export-processing enterprises and inland enterprises shall carry out customs procedures like those for commercial imports or exports.

c.2/ Scraps and discarded products collected during production shall be handled as follows:

- For scraps and discarded products of commercial value which are allowed for sale into the inland, inland enterprises shall carry out import procedures under regulations applicable to commercial imports:

- Scraps and discarded products of no commercial value shall be destroyed under law and supervision of customs offices managing export-processing enterprises.

d/ For goods exported from the inland into export-processing enterprises, inland enterprises and export-processing enterprises shall carry out customs procedures as for commercial imports or exports.

e/ For processed goods (except those processed for foreign parties)

e.1/ For goods processed by inland enterprises for export-processing enterprises, inland enterprises shall carry out customs procedures under regulations on goods processing for foreign traders.

e.2/ For goods processed by export-processing enterprises for inland enterprises, inland enterprises shall carry out customs procedures under regulations on overseas processing ordering.

e.3/ For goods processed between export-processing enterprises, processing enterprises shall carry out customs procedures under regulations on goods processed for foreign traders.

g/ For goods traded between export-processing enterprises, customs procedures shall be carried out under the guidance on customs procedures for on-spot imports or exports under Clauses 6 and 7, Article 41 of this Circular (except regulations on on-spot import or export conditions).

4. Procedures for liquidation of export processing enterprises' raw materials or supplies

a/Export-processing enterprises' raw materials or supplies shall be liquidated only in terms of quantity according to each type of imports or exports.

b/ Time limit and place for liquidation

b.1/ In case of processing, liquidation shall be conducted within the time limit for liquidation of processing contracts at district-level Customs Departments of localities where processing contracts are registered.

b.2/ In case of export production, liquidation shall be conducted on a quarterly basis, not later than the 15th of the first month of the subsequent quarter at customs offices managing export-processing enterprises. Enterprises may request to conduct liquidation on a monthly basis, before the 15* of the subsequent month.

c/ Liquidation dossiers

c.1/ In case of processing, liquidation dossiers comply with regulations on liquidation of goods processed for foreign traders.

c.2/ In case of export production, a liquidation dossier comprises:

- General list of declarations of raw materials and supplies imported for export production to be liquidated (form No. 10/HSTK-CX provided in Appendix VI to this Circular): to submit 1 original and produce the customs declarations for comparison;

- General list of declarations of export products to be liquidated (form No. 11/HSTK-CX provided in Appendix VI to this Circular): to submit 1 original and produce the customs declarations for comparison;

- List of norms (form No. 07/DKDM-SXXK provided in Appendix VI to this Circular) of each goods code: to produce 1 original;

- Report on imported raw materials and supplies warehoused, ex-warehoused and left in stock (form No. I2/HSTK-CX provided in Appendix VI to this Circular): to submit 2 originals (one of them to be returned to the enterprise when inspection finishes).

d/ In case export-processing enterprises are transformed into normal enterprises or vice versa, their imported assets and goods shall be handled as follows:

d.1/ In case export-processing enterprises are transformed into enterprises ineligible for export-processing incentives:

- To liquidate imported assets and goods;

- To identify imported assets and goods left in stock;

- To collect duty under regulations;

- Liquidation and identification of imported assets or goods shall be conducted before enterprise transformation.

d.2/ In case enterprises ineligible for export-processing incentives are transformed into export-processing enterprises:

- Enterprises shall report on the quantity of raw materials and supplies still left in stock; customs offices shall inspect these raw materials and supplies and settle tax-related matters under regulations;

- Before transformation, enterprises shall fully pay outstanding duty and fine amounts to customs offices. Customs offices shall apply duty and customs policies to export-processing enterprises only after enterprises have fulfilled tax and customs obligations towards customs offices.

5. Liquidation of machinery, equipment and means of transport for the formation of fixed assets

a/ Forms of liquidation, goods to be liquidated, liquidation conditions, and dossiers of liquidation of duty-exempt imports comply with the guidance in Circular No. 04/2007/TT-BTM.

b/ Liquidation procedures shall be carried out at customs offices managing export-processing enterprises.

c/ Liquidation procedures

c.1/ The enterprise or liquidation board shall prepare a document stating liquidation reasons, names, codes and volumes of goods to be liquidated under import declaration No …. dated.... and send it to the customs office managing export-processing enterprises.

c.2/ In case of liquidation in the form of export, the enterprise shall make an export declaration. In case of liquidation in the form of sale in the Vietnamese market, or donation, it shall make a declaration according to the form of liquidation and pay duty under regulations.

c.3/ In case of destruction, enterprises shall comply with regulations of environment management agencies and customs supervision.

Article 46. Customs procedures for goods brought into and out of tax-suspension warehouses

1. Goods that may be brought into and out of tax-suspension warehouses are imported raw materials for which duty is not yet required to be paid for the production of exports by the enterprises having these tax-suspension warehouses.

Enterprises shall compile separate customs dossiers for imported raw materials put into tax-suspension warehouses and register volumes of exported products in a plan year.

2. Customs procedures for imported raw materials put into tax-suspension warehouses comply with regulations applicable to raw materials imported for export production. Goods stored in tax-suspension warehouses which are damaged or deteriorated in quality, failing to meet production requirements, shall be handled under Article 29 of Decree No. 154/2005/ND-CP.

3. Liquidation procedures:

a/ At the year-end (December 31 every year), not later than January 31 of the subsequent year, enterprises shall make general lists of import customs declarations and total volumes of imported raw materials put into tax-suspension warehouses, general lists of export customs declarations and total volumes of raw materials constituting products already exported, re-exported or destroyed, and send them to customs offices.

b/ Procedures for liquidation and duty payment and refund for imports put into tax-suspension warehouses

- Procedures for liquidation of raw materials or supplies stored in tax-suspension warehouses are similar to those for liquidation of export-processing enterprises' raw materials or supplies guided in Clause 4. Article 45 of this Circular.

- If the quantity of raw materials constituting exported and re-exported products is smaller than the quantity of imported raw materials put into tax-suspension warehouses, enterprises shall pay duty on the not-yet-exported quantity of raw materials under import customs declarations after the period of 365 days, counting from the date of registration with customs offices to the date of liquidation. The quantity of raw materials for which duty payment has not yet become due may be transferred to the subsequent fiscal year for liquidation.

- The quantity of raw materials on which duty has been paid but which is then put into production and exported is eligible for duty refund applicable to raw materials imported for export production as guided in Article 117 of this Circular.

Article 47. Customs procedures for goods brought into and out of container freight stations (CFS)

1. Imports brought into CFS are goods not yet cleared from customs procedures and being subject to customs supervision and management.

2. Exports brought into CFS are goods which have been cleared from customs procedures or for which customs declarations have been registered at outside-border gate customs offices but which will be physically inspected at CFS.

3. Customs procedures for the transportation of goods brought into or out of CFS are similar to those for the transportation of goods lots transported from or to border gate as guided by the General Director of Customs.

4. Bases for certifying the actual exportation of goods consigned in CFS are bills of lading for loading goods onto means of transport on exit. Actual exportation shall be certified by customs offices of border gates of exportation.

Article 48. Customs procedures for machinery and equipment temporarily imported for re-export or temporarily exported for re-import for work construction or investment projects, and rent and leased assets

Customs procedures for machinery and equipment temporarily imported for re-export or temporarily exported for re-import for work construction or investment projects, and rent and leased assets comply with regulations applicable to commercial imports or exports.

Article 49. Customs procedures in other cases of temporary import for re-export or temporary export for re-import

1. For parts or spare parts temporarily imported without contracts for repair of foreign seagoing ships or aircraft

a/ Customs declarants

a.1/ For temporarily imported parts or spare parts carried by the aircraft or seagoing ships upon entry, customs declarants are aircraft or ship operators.

a.2/ For parts or spare parts consigned to addresses of shipping agents, customs declarants are those agents.

b/ Customs procedures

b.1/ Declaration shall be made on the form of non-commercial declaration.

b.2/ Temporarily imported parts or spare parts which have not been used up must be re-exported out of Vietnam. If they are sold in Vietnam, they must comply with regulations on imports and exports management policies and tax policies like imports from abroad. Shipping agents or purchasers shall carry out import procedures with customs offices.

b.3/ Parts or spare parts disassembled upon repair or replacement must be re-exported out of Vietnam or disposed of under law.

2. For parts or spare parts temporarily imported for repair of seagoing ships or aircraft under contracts signed between foreign ship owners and Vietnam-based ship repair factories, customs procedures shall be carried out under regulations applicable to processing for foreign parties.

3. Customs procedures for goods temporarily imported for re-export or temporarily exported for re-import for display at trade fairs or exhibitions comply with regulations applicable to commercial imports or exports and the following specific regulations:

a/ Customs dossiers: Apart from papers required for commercial imports or exports, there must be also:

a.1/ A written invitation to a fair or exhibition;

a.2/ A competent agency's decision on the fair or exhibition organization.

b/ Customs procedures for goods temporarily imported for re-export or temporarily exported for re-import for display at fairs or exhibitions shall be carried out at district-level Customs Departments of localities where fairs or exhibitions are organized or at border-gate customs offices.

c/ Time limit for re-export or re-import

c.1/ Goods temporarily imported for display at a trade fair or exhibition in Vietnam must be re­exported within 30 days after the end of the fair or exhibition.

c.2/ The time limit for temporary export of goods for display at an overseas trade fair or exhibition is one year after the goods are temporarily exported. Past this time limit, goods which are not re-imported will be liable to duty and other financial obligations under Vietnamese law.

d/ The sale and donation of goods at fairs or exhibitions comply with Articles 136 and 137 of the Commercial Law.

4. Liquidation of declarations of temporary import for re-export or temporary export for re­-import

a/ District-level Customs Departments of localities where temporary import or temporary export procedures are carried out shall monitor, manage and liquidate declarations of temporarily imported or temporarily exported goods.

b/ The time limit for liquidation is specified in Clause 1, Article 131 of this Circular.

c/ A liquidation dossier comprises:

c.1/ A written request for liquidation of the temporary import or temporary export declaration, specifying the temporary import declaration-re-­export declaration, the quantity of temporarily imported and re-exported goods, which are similar in the case of temporary export for re-import:

c.2/ A temporary import declaration and re-­export declaration or temporary export declaration and re-import declaration;

c.3/ Other relevant papers.

Article 50. Customs procedures in case of temporary import or temporary export of goods containers by rotation mode

1. These containers include:

a/ Empty containers with or without special-purpose suspension hooks;

b/ Flex tanks.

2. Customs procedures

a/ For transporters containers

a.1/ Upon importation, the transportation agent shall submit a manifest of transported cargo, listing imported containers.

a.2/ Upon exportation, the transportation agent shall submit a list of empty containers before loading them onto means of transport. The transporter or transportation agent shall submit a manifest of transported cargo.

b/ If the above containers do not belong to transporters, customs declarants (having goods already or to be contained in these containers) shall make written explanations in order to apply procedures for this mode.

Article 51. Customs procedures for returned exported goods

1. Forms of re-importing returned exported goods (below referred to as re-import of returned goods) include:

a/ Re-import of returned goods for repair or re-processing (collectively referred to as re­processing) then re-export;

b/ Re-import of returned goods for sale in the inland (not applicable to goods processed for foreign traders);

c/ Re-import of returned goods for destruction in Vietnam (not applicable to goods processed for foreign traders);

d/ Export of goods to other foreign partners.

2. Places for carrying out procedures for re-importing returned goods:

a/ District-level Customs Departments which have carried out procedures for exporting those goods;

b/ In case a returned goods lot contains goods of different export lots, re-import procedures shall be carried out at any of district-level Customs Departments which have carried out procedures for exporting those goods.

3. Re-processed goods may go through re-export procedures at district-level Customs Departments which have carried out procedures for their re-import. In case outside-border gate customs offices (other than border-gate customs offices) carry out procedures for temporary import and temporary export of goods, procedures for these goods are similar to those for imports or exports transported from or to border gate.

4. Procedures for re-import of returned goods

a/ A customs dossier comprises:

a.1/ Written request for goods re-import, indicating which export declaration the goods belong to. whether or not tax refund or non-collection has been permitted by the customs office, and whether or not input value-added tax credit has been declared to the tax office (stating the number of the tax refund or non-collection decision), and the reason for re-import (for re­processing, sale in the inland or destruction; if goods are imported for re-processing, the reprocessing place, time and method and wastage after re-processing must be indicated): to submit 1 original:

a.2/ The customs declaration of imports, manifest of goods and bill of lading are similar to those for commercial imports;

a.3/ The previous customs declaration of exports: to submit 1 copy:

a.4/ The foreign party's written notice of the return of goods: to submit 1 original.

b/ Customs offices shall carry out customs procedures like for commercial imports. Re-imported goods are subject to physical inspection. Goods-inspecting customs officers shall compare imports with kept samples of raw materials (if exported products are processed or produced for export and their samples have been taken: and raw materials have not been mutated in the course of production) and goods described in export declarations so as to ascertain whether goods re-imported back to Vietnam and previously exported goods are the same; and take samples or photos of re-imported goods (if samples cannot be taken) for comparison upon re-export.

c/ For goods re-imported for re-processing, the re-processing time limit must not exceed 30 days from the date re-import customs procedures are completed. Past this time limit, if goods are not yet re-exported, customs offices shall handle their tax-related matters under Point c. Clause 7. Article 112 of this Circular.

5. Procedures for re-exporting re-processed goods

a/ A customs dossier comprises:

a.1/ The exports declaration: to submit 2 originals;

a.2/ The declaration of imports (for re­processing): to submit 1 copy.

b/ Customs offices shall carry out procedures like for commercial exports. For goods lots subject to physical inspection, goods-inspecting customs officers shall compare actually re-exported goods with samples of goods taken upon re-import (or photos of goods when re-import procedures are carried out).

c/ If re-processed goods cannot be re-exported, enterprises shall explain in writing the failure to re-export to district-level Customs Departments carrying out re-import procedures and request them to consider and accept the following forms of handling:

c.1/ For re-processed products being processed goods:

- To carry out customs procedures like in the case of on-spot import or export for sale in the inland if conditions for on-spot import or export of processed products are fully met under Decree No. 12/2006/ND-CP; or.

- To destroy them if the processee requests their destruction in Vietnam and such destruction is permitted by provincial-level Natural Resources and Environment Services.

c.2/ Re-processed products other than processed goods shall be sold in the inland like goods re-imported for sale in the inland.

6. In case re-imported goods are exported products produced from imported raw materials or supplies; or procured goods eligible for import duty refund, customs offices carrying out re-­import procedures shall notify customs offices carrying out import-duty refund procedures (if these customs offices are not the same) of the cases falling under Points b and c. Clause 1, and Point c. Clause 5, of this Article, or the case beyond the time limit specified at Point c. Clause 4 of this Article, for handling their tax-related matters under Point c, Clause 7, Article 112 of this Circular.

Article 52. Customs procedures for imported goods which must be returned to foreign customers or re-exported to third countries or into non-tariff zones

1. Forms of returning goods include:

a/ Returning goods to their foreign sellers;

b/ Exporting goods to other foreign partners.

2. Goods-returning procedures shall be carried out at district-level Customs Departments that have carried out import procedures for those goods lots.

3. A customs dossier comprises:

a/ The enterprise's written explanation of the return of goods;

b/ The export declaration: to submit 2 originals;

c/ The previous import declaration: to submit 1 copy and produce the original;

d/ The foreign goods owner's written acceptance to receive back the goods (if goods are returned to their sellers): to submit 1 original; and the contract on sale of goods to a third country or re-export of goods into a non-tariff zone (if goods are re-exported to third countries or into non-tariff zones): to submit 1 copy.

4. Customs procedures shall be carried out like those for goods lots exported under commercial contracts. Returned goods are subject to physical inspection. Goods-inspecting customs officers shall compare goods samples taken upon import (if any); compare goods described in import declarations with actually re-exported goods; and indicate the quantity, quality and types of exports and the matching between actually exported goods and previously imported goods.

Article 53. Customs procedures for goods sold at duty-free shops

Customs management of goods sold at duty-­free shops complies with the Finance Ministry's separate guidance.

Article 54. Customs procedures for mailers, postal parcels, imports and exports consigned by post and imported and exported articles and goods consigned by express mail

Customs procedures for mailers, postal parcels, imports and exports consigned by post and imported and exported articles and goods consigned by express mail comply with the Finance Ministry's separate guidance.

Article 55. Customs procedures for goods brought into and out of bonded warehouses

1. Customs procedures for goods brought from abroad into bonded warehouses:

a/ For goods brought from abroad into bonded warehouses established within areas mentioned in Clause 2. Article 22 of Decree No. 154/2005/ND-CP the bill of lading must indicate: "Goods consigned in bonded warehouses";

Imports brought into bonded warehouses within industrial parks, hi-tech parks, export-processing zones or other exclusive economic zones outside border gates (collectively referred to as industrial parks) are goods used for activities of enterprises in these industrial parks, enterprises in industrial parks and neighboring export-processing enterprises.

b/ A dossier to be submitted to the bonded warehouse-controlling customs office comprises:

b.1/ The declaration of warehousing/ex-warehousing: 2 originals;

b.2/ The bonded warehouse rent contract already registered with the customs office: 1 copy certified and sealed by the warehouse owner:

In case the goods owner is concurrently the bonded warehouse owner, a bonded warehouse rent contract is not required. The time limit for goods to be stored in bonded warehouses is the same as the case of having a bonded warehouse rent contract, counting from the date of registration of the declaration of warehousing to the date of expiration written in box 2 of the declaration of warehousing/ex-warehousing (form HQ/2002-KNQ).

b.3/ The written authorization for goods receipt (if authorization is not made in the bonded warehouse rent contract): 1 original; if the authorization is sent by fax. it must be signed and sealed by the warehouse owner;

b.4/ The bill of lading: 1 copy;

b.5/ The manifest of goods (particularly for cars and motorcycles, their frame and engine numbers must be indicated): 2 originals.

c/ Customs procedures for warehoused goods

c.1/ To register warehousing declarations.

c.2/ The bonded warehouse-controlling customs office shall compare the numbers of containers and seals, for goods in containers, or numbers and codes of goods bales, for baled goods, with those indicated in accompanying documents. If they all match and the seals and bales are unbroken, the customs office shall carry out warehousing procedures. If detecting the goods owner's violation of the customs law, the customs office shall conduct physical inspection of goods.

c.3/ Customs officers supervising warehoused goods shall sign warehousing/ex-warehousing customs declarations for certification that goods have been warehoused, and enter data in the computer for monitoring warehoused/ex-warehoused goods.

d/ Customs procedures for goods transported from border gates of importation to bonded warehouses in industrial parks comply with Article 57 of this Circular.

2. Customs procedures for goods coming from the inland to be put into bonded warehouses

a/ Goods coming from the inland may be put into bonded warehouses in the following cases:

a.1/ Export procedures for goods have been completed and goods are designated by foreign customers to be stored in bonded warehouses;

a.2/ The time limit for temporary import for re-­export of goods has expired;

a.3/ Goods re-export is coerced by a competent state agency;

a.4/ Goods in bonded warehouses have been brought into the inland for processing or re­processing, then brought back into the warehouses as designated by foreign customers.

b/ Customs procedures and dossiers

b.1/ Before putting goods into bonded warehouses, inland enterprises shall complete customs procedures under regulations applicable to each mode of exportation.

b.2/ To carry out procedures for border-gate transfer (if any) for goods transported from border gates to bonded warehouses.

b.3/ To register declarations and carry out warehousing procedures like for goods coming from abroad and put into bonded warehouses.

3. Customs procedures for goods in bonded warehouses to be exported

a/ A customs dossier comprises:

a.1/ The declaration of warehousing/ex-warehousing: to submit I original:

a.2/ The customs declaration of exports (except goods coming from abroad and put into bonded warehouses): to submit 1 copy (if an exports declaration is used for multiple ex-warehousing, to produce its original to the customs office for conciliation):

a.3/ The written authorization for ex-warehousing (if the authorization is not indicated in the warehouse rent contract);

a.4/ The ex-warehousing bill, made according to a form provided by the Ministry of Finance.

b/ The bonded warehouse-controlling customs office shall compare declaration documents submitted upon ex-warehousing with those used for carrying out warehousing procedures and actual goods lots. If they all match, the customs office shall carry out ex-warehousing procedures.

c/ Goods indicated in the warehousing/ex-warehousing declaration per warehousing may be ex-warehoused once or many times.

4. Customs procedures for goods in bonded warehouses to be brought into the inland

a/ Goods in bonded warehouses may be brought into the inland in the following cases:

a.1/ Imports are sold in the Vietnamese market as specified at Point b. Clause 2. Article 26 of Decree No. 154/2005/ND-CP;

a.2/ Goods are brought into the inland for processing or re-processing;

a.3/ Goods being machinery or equipment hired from abroad which, upon contract completion, have been re-exported and are stored in bonded warehouses, are brought into the inland for the performance of subsequent rent contracts:

a.4/ With plausible reasons, directors of provincial-level Customs Departments of localities with bonded warehouses may accept the carrying out of procedures for importing into the inland goods which have been exported and are stored in bonded warehouses as mentioned at Point a.l, Clause 2 of this Article. Customs procedures are similar to those for re-importing goods returned from abroad.

b/ Goods owners or their lawful representatives shall carry out procedures for importing goods into the inland like those for importing goods from abroad under regulations applicable to each mode of importation.

c/ The bonded warehouse-controlling customs office shall supervise the ex-warehousing of goods and give certification in warehousing/ex-warehousing declarations.

5. Procedures for transportation of goods from a bonded warehouse to another within the Vietnamese territory

a/ The goods owner or his/her/its lawful representative shall submit an application to the provincial-level Customs Department (of the locality with the goods-storing bonded warehouse) for decision:

b/ Customs procedures for the transportation of goods from a bonded warehouse to another comply with regulations applicable to goods lots transported from or to border gate.

c/ The term of the bonded warehouse rent contract starts on the date goods are put into the first warehouse.

6. Customs procedures for goods undergoing ownership transfer while in bonded warehouses

a/ Goods owners shall transfer the ownership of their goods stored in bonded warehouses when they take goods trading acts under Clause 8, Article 3 of the Commercial Law.

b/ After transferring goods ownership, (old) goods owners or bonded warehouses' owners (if authorized) shall submit to district-level Customs Departments managing bonded warehouses the following documents:

b.1/ A written notice of the transfer of ownership of goods stored in the warehouse from the old owner to the new owner (indicating names and addresses of the transferor and transferee: names and volumes of goods with transferred ownership: serial numbers and dates of warehousing and ex-warehousing declarations; and date of transfer);

b.2/ The goods trading contract between the new and old owners of the goods lot stored in the warehouse;

b.3/ The new owner's warehouse rent contract.

District-level Customs Departments managing bonded warehouses shall keep the above documents together with the goods lots' warehousing dossiers for monitoring and liquidation of warehoused and ex-warehoused goods.

7. Procedures for the liquidation of goods in bonded warehouses comply with the Finance Ministry's Circular No. 36/20O3ATT-BTC of April 17, 2003, guiding the handling of goods stockpiled in bonded warehouses.

8. Customs management of goods stored in bonded warehouses

a/ Goods transported from border gates of importation to bonded warehouses, from bonded warehouses from or to border gates of exportation, or from a bonded warehouse to another, goods stored in bonded warehouses and services in bonded warehouses are subject to inspection and supervision by bonded warehouse-controlling customs offices.

b/ Bonded warehouse-controlling customs offices and bonded warehouse owners must have a software for monitoring and managing warehoused and ex-warehoused goods.

c/ Biannually. within 15 days after the end of a reporting period, bonded warehouse owners shall send written reports on the actual state of goods in and the operation of their warehouses, made according to forms provided by the General Department of Customs, to directors of provincial-level Customs Departments of localities where their bonded warehouses are located.

d/ Upon completion of a bonded warehouse rent contract, the bonded warehouse owner and goods owner shall liquidate this contract. The bonded warehouse owner shall carry out procedures for liquidating warehoused and ex-warehoused goods under this contract with the bonded warehouse-controlling customs office.

Within 15 days after ex-warehousing the whole volume of goods under the declaration of warehoused goods, the bonded warehouse owner shall carry out procedures for liquidating warehoused and ex-warehoused goods under the declaration of warehoused and ex-warehoused goods with the bonded warehouse-controlling customs office.

e/ Annually, provincial-level Customs Departments shall inspect the operation of bonded warehouses and the observance of the customs law by their owners, then report inspection results to the General Department of Customs. If detecting any violations of law. provincial-level Customs Departments shall conduct extraordinary inspection of bonded warehouses.

Article 56. Customs procedures for cross-border imports and exports

Customs procedures for cross-border imports and exports comply with Joint Circular No. 01/ 2008/TTLT-BCT-BTC-BGTVT-BNNPTNT-BYT-NHNN of January 31, 2008, of the Ministry of Industry and Trade, the Ministry of Finance, the Ministry of Transport, the Ministry of Agriculture and Rural Development, the Ministry of Health and the State Bank, guiding the implementation of the Prime Minister's Decision No. 254/2006/QD-TTg of November 7, 2006, on management of border trading activities.

Article 57. Customs procedures for imports or exports transported from or to border gate

Customs procedures for imports or exports transported from or to border gate comply with Articles 16 and 18 of Decree No. 154/2005/ND-CP and are additionally guided as follows:

1. For imports eligible for transportation from border gate, the enterprise shall submit 2 copies of an application for transportation from border gate (made according to a form provided by the General Department of Customs) to the outside-border gate customs office.

2. For imports eligible for transportation from border gate and exports eligible for transportation to border gate which belong to enterprises located in geographical areas under management by provincial-level Customs Departments of localities without outside-border gate customs offices, directors of provincial-level Customs Departments shall select and assign appropriate district-level Customs Departments to carry out procedures for transportation from or to border gate.

3. For enterprises' office equipment, such as desks, chairs, cabinets and stationery, which are put into the same containers of imported raw materials for export processing and production, enterprises may register customs declarations at outside-border gate customs offices in order to carry out procedures for transportation from border gate.

4. For imports eligible for transportation from border gate which, under regulations of specialized management agencies, are subject to physical inspection at border gates of importation, and imports of which declarations have been registered with outside-border gate customs offices but which fail to satisfy sealing conditions for transportation from border gate to places of inspection, border-gate customs offices shall conduct physical inspection of these goods at the request of outside-border gate customs offices.

For exports for which procedures are carried out by outside-border gate customs offices and which are subject to physical inspection but fail to satisfy sealing conditions for transportation from or to border gates of exportation, border-gate customs offices shall conduct physical inspection of these goods at the request of outside-border gate customs offices.

5. Imports of which bills of lading indicate ports of destination being inland clearance depots (ICDs)

a/ Imports of which bills of lading indicate ports of destination being ICDs must not be transported from border gate to outside-border gate places for customs clearance or physical inspection, except ICDs under the Sai Gon port border-gate customs office - Region IV of the Customs Department of Ho Chi Minh City as permitted by the'Prime Minister in the Government Office's Official Letter No. 7178/VPCP-KTTH of October 24, 2008.

b/ Goods shall be carried from border gates of importation to ICDs by multimodal transportation under the Finance Ministry's Circular No. 125/2004/TT-BTC of December 24. 2004, guiding customs procedures for goods subject to international multimodal transportation.

c/ Imports other than those mentioned at Points a, b, c, d and e, Clause 3, Article 18 of Decree No. 154/2005/ND-CP must not be transported from border gate to bonded warehouses at ICDs.

6. Supervision of imports or exports transported from or to border gate

a/ Imports or exports transported from or to border gate must be kept in containers or on means of transport satisfying customs sealing requirements under Article 14 of Decree No. 154/ 2005/ND-CP.

b/ For exports transported to border gate, customs declarants must indicate in written registrations the time and places for gathering exports for loading in containers or onto means of transport, serial numbers of containers and seals and routes of transportation (according to forms provided by the General Departments of Customs). Customs sealing is not required for exports transported to border gate which are exempt from physical inspection.

c/ For imports eligible for transportation from border gate, border-gate customs offices shall seal up the goods (including those exempt from physical inspection), write numbers of seals and the state of goods in delivery records, seal dossiers and hand them to goods owners for submission to outside­border gate customs offices. When the goods arrive at places registered in applications for transportation from border gate, enterprises shall submit dossiers sealed by border-gate customs offices to outside-border gate customs offices for further carrying out customs clearance procedures for goods lots.

7. Customs procedures for imports transported from border gates of importation to non-tariff zones and exports from non-tariff zones from or to border gates of exportation are similar to those for goods transported from or to border gate.

8. Declaration registration procedures for imports or exports shall be carried out at outside-border gate customs offices. If detecting violations, border-gate customs offices shall conduct physical inspection of goods at border gates.

The General Director of Customs shall specify customs procedures for imports or exports transported from or to border gate.

Chapter 3.

 PROCEDURES FOR ESTABLISHMENT OF OUTSIDE-BORDER GATE CLEARANCE PLACES AND INLAND PLACES FOR INSPECTION OF IMPORTS AND EXPORTS; AND PROCEDURES FOR ESTABLISHMENT, RELOCATION, EXPANSION OR NARROWING OF BONDED WAREHOUSES

Section I. PROCEDURES FOR ESTABLISHMENT OF INLAND CLEARANCE DEPOTS AND OUTSIDE-BORDER GATE CLEARANCE PLACES

Article 58. Establishment procedures

1. Areas where inland clearance depots will be established must satisfy the following conditions:

a/ They have been included in the inland clearance depot planning publicized by the Ministry of Transport under Clause 2. Article 4 of Decree No. 154/2005/ND-CP for handling imports and exports exceeding the capacity of international seaports;

b/ They are at least 10 ha large each;

c/ They assure working conditions for customs offices, such as working offices, places for goods inspection, places for installing equipment (electronic scales, screeners, etc.), and warehouses to store exhibits used in violations;

d/ Warehouses and storing yards have fences separating them and surrounding areas and are furnished with cameras, electronic scales and other equipment for fast customs clearance. Goods brought out of and into warehouses and storing yards must be managed with the aid of computers connected to the customs supervision system.

2. Areas where outside-border gate clearance places will be established must satisfy the following conditions:

a/ They have been included in the Finance Ministry's planning on outside-border gate clearance places;

b/ They are in geographical areas with industrial parks, export-processing zones, non-tariff zones or other exclusive economic zones or with many industrial production factories with regular and stable import and export activities;

c/ These areas are convenient and suitable for transportation of goods in containers;

d/ They are at least 1 ha large each:

e/ They satisfy other conditions specified at Points c and d. Clause 1 of this Article.

Article 59. Establishment dossiers

A dossier of application for the establishment of an inland clearance depot or outside-border gate clearance place (below collectively referred to as clearance depot) comprises:

1. A written application for such establishment: 1 original:

2. The Transport Ministry's written approval of such establishment (except clearance depots under planning publicized by the Ministry of Transport), or the written approval of the provincial-level People's Committee of the locality where the clearance depot is planned to be located: 1 original:

3. The business registration certificate showing the business line of delivering, receiving and transporting imports and exports and/or dealing in warehouses and storing yards: 1 copy;

4. The construction econo-technical study: 1 copy;

5. The operation regulation: 1 original.

Article 60. Dossier processing order

1. Enterprises shall submit dossiers of application for the establishment of clearance depots to provincial-level Customs Departments of localities where the depots are planned to be located.

2. Within 15 working days after receiving a complete and valid dossier, the provincial-level Customs Department shall:

a/ Examine the dossier;

b/ Conduct field survey of warehouses and storing yards:

c/ Assess the satisfaction of conditions specified in Clause 2. Article 4 of Decree No. 154/2005/ND-CP and guided in Article 58 above; and send recommendations and a report enclosed with the dossier to the General Department of Customs.

3. Within 30 working days after receiving the report enclosed with the dossier, the General Department of Customs shall complete the evaluation, report on evaluation results and submit them to the Ministry of Finance in order to decide on the establishment of a clearance depot. In case establishment conditions are not fully met, the Ministry of Finance shall issue a written reply to the enterprise.

Article 61. Customs management of clearance depots

1. The General Department of Customs shall inspect the observance of the customs law by enterprises licensed to establish and deal in clearance depots. Any violations shall be handled under law or reported to the Minister of Finance in order to revoke decisions establishing clearance depots.

2. The Minister of Finance shall decide to revoke a decision establishing a clearance depot in the following cases:

a/ The enterprise requests in writing termination of the depot's operation;

b/ Past 6 months after the issuance of the decision, the enterprise fails to put the depot into operation without plausible reasons;

c/ The licensed enterprise fails to maintain the conditions specified in Clause 2. Article 4 of Decree No. 154/2005/ND-CP or guided at Points c and d. Clause 1, Article 58 of this Circular;

d/ Within 6 months from the effective date of this Circular, the enterprise fails to take solutions for satisfying the conditions specified at Point c above for its established depot.

3. The expansion or narrowing of clearance depots shall be considered and decided by directors of provincial-level Customs Departments at the proposal of enterprises provided that establishment conditions specified in Article 58 of this Circular are satisfied.

Section 2. PROCEDURES FOR ESTABLISHMENT OF INLAND PLACES FOR PHYSICAL INSPECTION OF IMPORTS AND EXPORTS

Article 62. Establishment conditions

1. Inland places for physical inspection of imports and exports include:

a/ Inland concentrated inspection places and container freight stations;

b/ Border places for exports inspection within border-gate economic zones;

c/ Places for goods inspection at construction sites or construction sites' warehouses and production places.

2. Establishment conditions

a/ A concentrated inspection places or container freight station in the inland may be established if satisfying the following conditions:

a.1/ For a container freight station in the inland: The enterprise registers the business line of delivering, receiving and transporting imports and exports;

a.2/ Such a place is located in an area with regular import and export activities and convenient and suitable for transportation of goods in containers; and is not more than 20 km from the managing district-level Customs Department;

a.3/ Other conditions specified at Points c and d, Clause 1, Article 58 of this Circular.

b/ A border place for exports inspection within a border-gate economic zone must be located in the border-gate economic zone.

c/ For an inspection place being a construction site or construction site's warehouse or production place:

c.1/ The construction site or construction site's warehouse is the place for gathering imported equipment, machinery or supplies for the construction of a factory or work.

c.2/ The production place is the enterprise's production plant or factory (applicable to imports and exports subject to specific preservation, packaging, sanitation, technology and safety requirements).

Enterprises shall furnish equipment for inspection at construction sites or production places.

Article 63. Establishment dossiers

Dossiers for the establishment of inland places for physical inspection of imports and exports comply with the guidance in Article 59 of this Circular (except the written request of the provincial-level People's Committee and the Ministry of Transport's written approval).

Article 64. Order of establishment

1. Within 15 working days after receiving an enterprise's complete dossier, the provincial-level Customs Department shall:

a/ Examine the dossier:

b/ Conduct field inspection at warehouses and storing yards:

c/ Assess the satisfaction of establishment conditions and report thereon to the General Department of Customs.

2. Within 15 working days after receiving a report from the provincial-level Customs Department, enclosed with the establishment dossier, the General Director of Customs shall issue a decision establishing the inspection place or a written reply if the enterprise fails to fully satisfy the required establishment conditions.

3. The General Director of Customs shall decide to revoke decisions establishing inspection places in the cases specified in Clause 2, Article 61 of this Circular.

3. For inspection places being construction sites or construction sites warehouses or production places: Directors of provincial-level Customs Departments shall decide to recognize them based on written proposals of enterprises.

Section 3. PROCEDURES FOR ESTABLISHMENT, RELOCATION, EXPANSION AND NARROWING OF BONDED WAREHOUSES

Article 65. Procedures for establishment of bonded warehouses

1. Conditions for the establishment of bonded warehouses are specified in Clause 3. Article 22 of Decree No. 154/2005/ND-CP The area of a bonded warehouse must be at least l.(XX) m: (particularly for gold, silver and gem warehouses; or warehouses for goods which must be preserved by refrigeration, this area may be smaller). Before putting a bonded warehouse into operation, its owner must install a warehouse supervising system with computers and cameras connected to the network of the bonded warehouse-controlling customs office in order to manage warehoused and ex-warehoused goods.

2. An enterprise that fully satisfies the above conditions and requirements for establishing a bonded warehouse and wishes to establish such a warehouse shall make and send a dossier to the provincial-level Customs Department of the locality where it plans to establish the warehouse, for consideration. The dossier comprises:

a/ An application for warehouse establishment (made according to a form provided by the General Department of Customs);

b/ The business registration certificate, which indicates the warehouse and storing storing yard business: a copy;

c/ The design plan of the warehouse and storing yard zone, showing its boundary with the outside, locations of warehouses, routes of internal transportation, fire and explosion prevention and fighting systems, security system, the warehouse office and working place of the customs office (when requested by the customs office);

d/ Lawful documents proving the right to use warehouses and storing yards.

3. Within 15 days after receiving an enterprise's complete and valid dossier, the provincial-level Customs Department shall:

a/ Examine the dossier;

b/ Conduct field survey of warehouses and storing yards;

c/ Report on results to and make proposals with the General Director of Customs.

4. Within 15 days after receiving the report and proposal of the provincial-level Customs Department and the dossier of application for the establishment of a bonded warehouse, the General Director of Customs shall decide to establish the bonded warehouse or issue a written reply if the enterprise fails to fully satisfy the conditions specified in Clause 3. Article 22 of Decree No. 154/2005/ND-CP and requirements set in Clause 1, Article 65 of this Circular.

Article 66. Termination of operation of bonded warehouses

The General Director of Customs may decide to terminate the operation of a bonded warehouse in the following cases:

1. The enterprise requests in writing termination of the warehouse's operation;

2. Within a year, the warehouse owner has thrice committed customs-related administrative violations and paid fines at a level beyond the sanctioning competence of the head of a district-level Customs Department under the Ordinance on Handling of Administrative Violations, or is examined for penal liability.

3. After 6 months, the enterprise fails to put its bonded warehouse into operation or has no goods consigned in its warehouse without a plausible reason.

4. For established bonded warehouses, after 6 months from the effective date of this Circular, the warehouse owner fails to take solutions for fully satisfying conditions and requirements specified in Clause 1, Article 65 of this Circular.

Article 67. Procedures for relocation, expansion and narrowing of bonded warehouses

1. An enterprise that wishes to expand the area of warehouses or storing yards at the place for building a bonded warehouse the establishment of which has been decided by the General Department of Customs, or wishes to relocate a bonded warehouse from the place of establishment already decided by the General Department of Customs to a new place in the same area in which the bonded warehouse is allowed to be established shall make and send a dossier to the provincial-level Customs Department managing the bonded warehouse. The dossier comprises:

a/ An application for relocation, expansion or narrowing of the bonded warehouse;

b/ The plan of warehouses and storing yards to be relocated, expanded or narrowed;

c/ Lawful documents proving the right to use warehouses and storing yards to be relocated or expanded.

2. After receiving the enterprise's complete and valid dossier, the provincial-level Customs Department shall:

a/ Examine the dossier;

b/ Conduct field survey of warehouses and storing yards;

c/ Within 15 days after receiving a complete and valid dossier, the director of the provincial-level Customs Department shall decide to relocate, expand or narrow the bonded warehouse or issue a written reply to the enterprise in case conditions for relocating, expanding or narrowing the warehouse are not fully satisfied.

3. In case an established bonded warehouse is relocated to another place outside its present area, the enterprise shall request in writing termination of the operation of the old warehouse and carry out procedures for the establishment of a new warehouse, then send the request to the provincial-level Customs Department for consideration and reporting to the General Department of Customs in order to decide to terminate the operation of the old warehouse and establish a new warehouse.

Article 68. Change of bonded warehouse owners

Procedures for the change of a bonded warehouse owner shall be carried out as follows:

1. The warehouse's old owner shall make an application for the change of warehouse owner;

2. The warehouse's new owner shall carry out procedures for changing warehouse owner. Change dossiers comply with Clause 2. Article 65 of this Circular, except the design plan specified at Point c. Clause 2 of Article 65 if the current state of the warehouse sees no change;

3. Provincial-level Customs Departments shall receive warehouse owners' dossiers of application for the change of warehouse owner and report and propose them to the General Department of Customs for decision without having to conduct field survey of warehouses and storing yards again if the actual state of warehouses sees no change.

Part III

CUSTOMS PROCEDURES FOR NON­COMMERCIAL IMPORTS AND EXPORTS

Article 69. Non-commercial imports and exports

Non-commercial imports and exports (below referred to as non-commercial goods) include:

1. Overseas organizations' and individuals' donations and gifts to Vietnam-based organizations and individuals; or those consigned by Vietnam-based organizations and individuals to overseas organizations and individuals;

2. Goods of Vietnam-based diplomatic representative missions and international organizations and their staff;

3. Goods supplied as humanitarian aid;

4. Temporarily imported and exported goods of individuals entitled to tax exemption by the Vietnamese State;

5. Free sample goods;

6. Temporarily imported and exported working tools and equipment of agencies, organizations or people who enter or leave the country for a specified period;

7. Movable assets of organizations and individuals;

8. Personal luggage of people on entry consigned under bills of lading, and hand luggage of people on entry which is in excess of duty-free quota.

Article 70. Customs declarants

For non-commercial goods, customs declarants may be any of the following:

1. Goods owners.

2. Clearance agents, if goods owners sign contracts with agents. 3. Persons authorized in writing by goods owners.

3. In case of authorization, authorized persons may, in their names, declare, sign and append seals to customs declarations.

Article 71. Customs dossiers for imports

1. Papers to be submitted include:

a/ The declaration of non-commercial goods: 2 originals;

b/ The bill of lading (except for hand luggage in excess of duty-free quota as prescribed at Point 8, Article 69 of this Circular): 1 copy;

c/ The written authorization prescribed in Clause 3. Article 70 of this Circular: 1 original;

d/ The competent agency's certification of humanitarian aid, in case of import of goods as humanitarian aid: 1 original;

e/ The police office's decision or notice allowing overseas Vietnamese to return to settle in Vietnam; or Vietnamese passport or its substitute paper which remains valid for these people to return to permanently reside in the country, with the entry certification stamp of the border-gate immigration management agency: 1 notarized copy enclosed with the original for comparison (under the Finance Ministry's Circular No. 16/2008ATT-BTC of February 13, 2008. guiding non-commercial import and temporary import of motorbikes);

f/ The competent state agency's written • permission for the transfer of the organization's assets from abroad into Vietnam: 1 copy:

g/ The import permit (in case of import of banned goods or goods subject to conditional import): 1 original;

h/ The certificate of origin for cases specified at Point e.6, Clause 2, Article 11 of this Circular: 1 original;

i/ The notice or decision or the agreement to give or donate goods: 1 copy;

j/ Other papers required by law on a case-by-case basis.

2. Papers to be produced include:

a/ The carrier's notice of goods receipt (except for hand luggage in excess of duty-free quota as prescribed in Clause 8, Article 69 of this Circular);

b/ The contract signed with the customs agent (applicable to the case specified in Clause 2. Article 70 of this Circular);

c/ The duty-free goods quota book for diplomatic missions, international organizations and their foreign staff.

3. Dossiers for identifying non-commercial imports not liable to duty are customs dossiers specified in this Article.

Article 72. Customs dossiers for exports

1. Papers to be submitted include:

a/ The declaration of non-commercial goods: 2 originals;

b/ The written authorization prescribed in Clause 3. Article 70 of this Circular: 1 original;

c/ The competent agency's written permission for export of goods as humanitarian aid and the certification of humanitarian aid. in case of export of goods as humanitarian aid: 1 original:

d/ The competent state agency's written permission for overseas settlement (in case of export of movable assets of individuals and families): 1 notarized copy:

e/ The competent state agency's written permission for the transfer of the organization's assets abroad: 1 notarized copy:

f/ The export permit (in case of export of banned goods or goods subject to conditional export): 1 original:

g/ Other papers required by law on a case-by-case basis.

2 Papers to be produced are contracts signed with customs agents (in the case specified in Clause 2. Article 70 of this Circular).

3. Dossiers for identifying non-commercial exports not liable to duty are customs dossiers specified in this Article.

Article 73. Customs procedures

1. Customs declarants shall declare and submit customs dossiers. Customs offices shall receive, register and carefully examine dossiers.

2. The forms and extent of physical inspection of non-commercial goods comply with inspection principles under the Customs Law and Decree No. 154/2005/ND-CP as decided by heads of district-level Customs Departments.

3. Particularly, goods eligible for privileges and immunities comply with Article 38 of Decree No. 154/2005/ND-CP.

4. Duties, fees and other charges comply with current law.

Customs clearance for non-commercial goods

a/ The customs officer shall sign and append a seal "cleared from customs procedures" to the customs declaration at the final stage.

b/ Particularly for goods subject to conditional import or export, the head of a district-level Customs Department shall sign and append a seal of certification "cleared from customs procedures ".

Customs procedures shall be completed and goods shall be released from customs procedures after the above jobs have been done.

Part IV

CUSTOMS PROCEDURES FOR MEANS OF TRANS TORT ON ENTRY, EXIT. IN TRANSIT OR MOVING FROM PORT TO TORT

Section 1. FOR CARS ON ENTRY, EXIT OR IN TRANSIT VIA BORDER GATES FOR COMMERCIAL PURPOSES

Article 74. Customs procedures for foreign cars upon entry (temporary import)

1. Customs declarants shall declare, submit and produce the following papers:

a/ The declaration of road means of transport temporarily imported for re-export (made according to form HQVN/2006/01-PTVT.DB): to submit 2 originals;

b/ The list of passengers (for passenger cars): to submit 1 original;

c/ The entry/exit declaration of the operator: to produce the original:

d/ The permit granted by a competent agency to produce the original:

e/ The vehicle registration paper: to produce the original;

f/ The declaration of imports and goods in transit: to produce the original.

2. Customs offices shall receive and examine dossiers and carry out customs procedures according to the process prescribed by the General Department of Customs.

Article 75. Customs procedures for foreign cars upon exit (re-export)

1. Customs declarants shall declare, submit and produce the following papers:

a/ To additionally declare the extension of temporary import and other changes against those declared upon temporary import (if any) in the declarations of road means of transport temporarily imported for re-export;

b/ To submit the original of the declaration of road means of transport temporarily imported for re-export (form HQVN/2006/01-PTVT.DB) with temporary import certification of the border-gate customs office carrying out temporary import procedures;

c/ To submit the original list of passengers (for passenger cars);

d/ To submit 1 copy and produce the original of the written extension of temporary import (if any);

e/ To produce the original declaration of exports or goods in transit.

2. Customs offices shall receive and examine dossiers and carry out customs procedures according to the process prescribed by the General Department of Customs.

Article 76. Customs procedures for Vietnamese cars upon exit (temporary export) and exit (re-­import)

Customs procedures for Vietnamese cars upon exit (temporary export) and exit (re-import) comply with Articles 74 and 75 of this Circular. Particularly for customs declarations, the declaration of road means of transport temporarily exported for re­-import, use form HQVN/2006/02-PTVT.DB.

Section 2. FOR MEANS OF TRANSPORT SPECIFIED IN ARTICLE 46 OF DECREE No. 154/2005/ND-CP

Article 77. Mechanism for managing rudimentary means of transport

1. Rudimentary means of transport is means moved by human power or drawn by animals (e.g.. rickshaw, pedicab. cart drawn by horse or ox).

2. Upon entry or exit of rudimentary means of transport, their owners or operators are not required to apply for permits or fill in declarations of means of transport. Border-gate customs offices shall monitor these means through books or computers.

Article 78. Customs procedures

For rudimentary means of transport upon entry or exit, their owners or operators shall declare in. and submit to customs offices, the following papers:

1. The declaration of imports and exports (if any);

2. The declaration of luggage of the operator and passengers (if any).

Section 3. FOR MEANS OF TRANSPORT OF INDIVIDUALS, AGENCIES AND ORGANIZATIONS WHICH ARE TEMPORARILY IMPORTED FOR RE­EXPORT OR TEMPORARILY EXPORTED FOR RE-IMPORT FOR NON-COMMERCIAL PURPOSES UNDER ARTICLE 47 OF DECREE No. 154/2005/ND-CP

Article 79. Customs procedures for cars on entry or exit via border gates

1. For foreign cars upon entry (temporary import), customs declarants shall declare, submit and produce the following papers:

a/ The declaration of road means of transport temporarily imported for re-export (form No. HQVN/2006/01-PTVT.DB): to submit 2 originals;

b/ The competent agency's written permission (except for re-import of cars for circulation in border-gate areas): 1 copy:

c/ The entry/exit declaration of the operator;

d/ The car registration paper: to produce the original.

2. For foreign cars upon exit (re-export), customs declarants shall declare, submit and produce the following papers:

a/ To additionally declare the extension of temporary import and other changes against those declared upon temporary import (if any) on the declaration of road means of transport temporarily imported for re-export;

b/ To submit the original of the declaration of road means of transport temporarily imported for re-export (form HQVN/2006/02-PTVT.DB) with temporary import certification of the border-gate customs office carrying out temporary import procedures;

c/ To submit 1 copy and produce the original of the written extension of temporary import (if any).

3. For Vietnamese cars upon exit (temporary export) or entry (re-import), customs dossiers are similar to those prescribed in Clauses 1 and 2 above. Particularly for customs declarations, the declaration of road means of transport temporarily exported for re-import (form HQVN/2006/02-PTVT.DB) should be filled in.

4. Customs offices shall receive and examine dossiers and carry out customs procedures according to the process prescribed by the General Department of Customs.

Article 80. Customs procedures for other means of transport (motor vehicles and motor or non-motor boats; and speed boats) temporarily imported for re-export or temporarily exported for re-import

1. Operators shall submit and produce the following dossiers and documents:

a/ To produce entry or exit permits or papers of equivalent validity granted by competent agencies;

b/ To submit 1 copy of the declaration of road means of transport temporarily imported for re­export or temporarily exported for re-import;

c/ To produce the originals of the declarations of their entry or exit.

2. Customs offices shall receive and examine dossiers and carry out customs procedures according to the process prescribed by the General Department of Customs.

Article 81. Specific regulations applicable to means of transport of individuals and organizations in border areas that regularly travel across the border

1. These means include:

a/ Foreign trucks which enter Vietnamese border-gate areas for not more than 2 days for delivering imports or receiving exports then return to their countries:

b/ Vietnamese trucks which go across the border for not more than 2 days for delivering exports or receiving imports then return to Vietnam;

c/ Means of transport of individuals, agencies and organizations in border areas that regularly travel across the border in their daily-life activities.

2. These means may be temporarily imported for export or temporarily exported for re-import via the same border gate.

3. Neither permits nor declarations are required for these means. Border-gate customs offices shall manage and monitor these means through books or computers.

Section 4. FOR VIETNAMESE SEAGOING SHIPS AND FOREIGN SEAGOING SHIPS ON ENTRY, EXIT, IN TRANSIT AND MOVING FROM PORT TO PORT

Article 82. Customs declarants

Captains' or carriers' lawful representatives (below collectively referred to as captains) shall declare and carry out customs procedures for seagoing ships on entry, exit, in transit or moving from port to port.

Article 83. Customs clearance places

Customs procedures for Vietnamese seagoing ships and foreign seagoing ships on entry, exit or in transit shall be carried out at head offices or representative offices of port authorities, except the cases specified at Point b. Clause 2. Article 27 of the Government's Decree No. 71/2006/ND-CP of July 25, 2006, on management of seaports and marine navigable channels.

Article 84. Time limits for customs clearance

Customs declarants shall declare and submit customs dossiers within the following time limit:

1. Within 2 hours, for seagoing ships on entry, after the ships have safely anchored at places designated by directors of port authorities.

2. At least 2 hours before the ships leave ports, for seagoing ships on exit. Particularly for passenger ships and liners, right before the time the ships leave ports.

3. With plausible reasons, the above time limit may be changed provided that captains shall notify such in writing at least 30 minutes in advance to seaport customs offices.

Article 85. Customs declaration

1. Imports declaration must be fully, specifically and clearly filled in terms of description of goods; general declaration such as groceries, office equipment, electronic products, electric articles for family use, children's toys, etc., is not accepted. If general declaration is made for certain commodities, attached lists of these commodities must be additionally declared and submitted.

2. For luggage of crewmembers

a/ To declare luggage of the whole crew in the crewmember luggage declaration:

b/ Each crewmember shall declare their goods on the declaration of non-commercial go(xls.

3. Luggage in excess of prescribed limits and goods of passengers on entry or exit comply the Government's Decree No. 66/2002/ND-CP of July 1. 2002. prescribing limits of luggage of people on entry and exit and duty-free imported donations and gifts; and the Finance Ministry's Decision No. 29/2006/QD-BTC of May 8.2006. promulgating the regulations on forms, use instructions, printing, issue and management of arrival/departure declarations.

Article 86. Customs dossiers

1. For seagoing ships on entry, captains shall submit to port customs offices a dossier comprising:

a/ The general declaration: 1 original;

b/ The goods declaration: 1 original;

c/ The declaration of dangerous goods (if any): 1 original;

d/ The ship's provisions declaration: 1 original;

e/ The list of crewmembers: 1 original:

f/ The list of passengers (if any): 1 copy;

g/ The declaration of crewmembers' goods and luggage: 1 original;

h/ The declaration of goods transferred from or to port, transited or transshipped (if any): 1 original.

2. For foreign seagoing ships on exit, if there is no change in the declared contents upon entry, captains are not required to submit papers specified in Clause 1 of this Article, except the general declaration, goods declaration and list of passengers (if any). In case of any change, captains shall submit papers specified in Clause 1 of this Article, except the declaration of goods transferred from or to port, transited or transshipped, and also the following papers:

a/ The purchase invoice of seagoing ship goods:

b/ The duty-free goods purchase invoice (under goods orders).

3. For Vietnamese seagoing ships on exit, captains shall submit to port customs offices adossier comprising:

a/ The general declaration: 1 original;

b/ The goods declaration: 1 original:

c/ The ship's provisions declaration: 1 original;

d/ The list of crewmembers: 1 original;

e/ The declaration of crewmembers' goods and luggage: 1 original;

f/ The list of passengers (if any): 1 copy.

4. For seagoing ships in transit

a/ When carrying out entry procedures, captains shall submit dossiers specified in Clause 1 of this Article to customs offices of ports where ships enter.

Customs offices of ports where ships enter shall seal up dossiers (comprising one goods manifest and one ship dossier transfer slip) and hand them to captains for transfer to customs offices of ports where ships exit.

b/ When carrying out exit procedures, captains shall submit to customs offices of ports where ships exit the general declaration (1 original) and dossiers transferred by customs offices of ports where ships enter.

5. For seagoing ships moving from port to port

a/ At ports of departure:

a.1/ Captains shall submit to port customs offices the general declaration, declaration of imports transported to another port, declaration of exports already loaded onto ships, declaration of transited and transshipped goods (if any): 1 copy each.

a.2/ Port customs offices shall seal up port-to-port dossiers and hand them to captains for submission to customs offices of ports of arrival.

b/ At ports of arrival, captains shall submit the general declaration (1 original) and sealed port-to-port dossiers transferred by customs offices of ports of departure.

Article 87. Procedures for modification and adjustment of goods declarations

The modification or adjustment of goods declarations after customs clearance for seagoing ships on entry under Clause 3, Article 42 of Decree No. 154/2005/ND-CP is guided as follows:

1. The modification or adjustment of goods declarations must stem from the modification or adjustment of bills of lading at the request of goods consigners to carriers (ship owners or ship owner agents). The request for modification or adjustment of bills of lading which results in the modification or adjustment of goods declarations covers modification of the consignee's name: name of goods; volume of goods; number of the ship firm's seal; number of container; and name of the port of destination indicated in the bill of lading.

2. A dossier of request for modification or adjustment of an imports declaration (already submitted to the customs office) comprises:

a/ The overseas consignor's request for modification or adjustment of the bill of lading:

b/ The telegram of certification of adjustments, of the overseas ship owner or ship owner agent (Vietnamese and English translations: 1 copy each):

c/ The ship owner's or ship owner agent's application for adjustment;

d/ The adjusted declaration of goods;

e/ The ship owner's or ship owner agent's written authorization for the authorized person to work with the customs office to request adjustment of the goods declaration;

f/ Particularly for a straight bill of lading indicating the name of goods consignee, if this name is adjusted, the goods consignee's written refusal to receive goods in the bill of lading is required.

3. Places and time limit for receiving dossiers of modification or adjustment of imports declarations

a/ Border-gate customs offices which have carried out entry procedures for ships shall receive dossiers of modification or adjustment of imports declarations;

b/ Dossiers of modification or adjustment of goods declarations may be received only before goods consignees carry out procedures for registration of customs declarations. The General Department of Customs shall decide on the modification after declaration registration.

4. Order of receiving and processing dossiers of modification or adjustment of imports declarations

a/ Heads of district-level Customs Departments shall assign customs officers to receive and examine declarations and compare notified modifications or adjustments with goods declarations submitted by captains upon entry of means of transport;

b/ Dossier-receiving customs officers shall propose acceptance or non-acceptance (stating the reasons for non-acceptance) of modifications or adjustments of goods declarations (form No. 20. Appendix IV to this Circular);

c/ Customs officers shall transfer dossiers to heads of district-level Customs Departments for decision, who shall decide to accept or not to accept modifications or adjustments (stating the reasons for non-acceptance for notification to ship owners or ship owner agents) in dossier receipt slips, sign (together with full names) and append seals of the Customs Departments and seals of their titles.

d/ Dossier-receiving customs officers shall certify and append operational seals to adjusted goods declarations, sign and append officer seals, seal up adjusted goods declarations and copies of dossier receipt slips transferred by heads of district-level Customs Departments to persons working with customs offices on the modification or adjustment of goods declarations, and transfer them to district-level Customs Departments where imports procedures are carried out.

The time limit for performing the above job is 4 working hours after a custom officer receives a dossier of modification or adjustment of a goods declaration from the ship owner or ship owner agent.

Section 5. CUSTOMS PROCEDURES FOR AIRCRAFT ON ENTRY, EXIT, IN TRANSIT OR TRANSFERRED FROM AIRPORT TO AIRPORT

Article 88. Responsibilities of airport authorities, air carriers and aircraft operators

1. At least 24 hours (or one hour, for irregular flights) before the entry of an aircraft or before aviation authorities complete aviation procedures for passengers on exit and exports, the airport authority shall supply the customs office with the following information:

a/ The flight's number;

b/ The aircraft's nationality:

c/ The type of aircraft;

d/ The flight's itinerary;

e/ The time of the aircraft's arrival and departure;

f/ The aircraft's parking place;

g/ The arrival gate for passengers;

h/ The time of loading and unloading goods onto and from the aircraft.

The airport authority shall notify one hour in advance (upon the entry or exit of an aircraft) to the customs office of any change in the above information.

2. At least 3 hours before the entry of an aircraft or before aviation authorities complete aviation procedures for passengers on exit and exports, the air carrier shall supply the customs office with the following information:

a/ Goods imported, exported, transited or transferred from airport to airport;

b/ Consigned luggage;

c/ The list of passengers;

d/ The list of crewmembers and attendants working aboard the aircraft.

3. Right after aviation authorities complete aviation procedures for exported goods and luggage and passengers on exit and right after an aircraft on entry parks at the designated place, the pilot or his/her lawful representative shall submit to the customs office a customs dossier comprising:

a/ The aircraft's general declaration: 1 original:

b/ The manifest of goods: 2 originals;

c/ The manifest of consigned luggage: 2 originals;

d/ The list of passengers: 1 original;

e/ The list of crewmembers and attendants working aboard the aircraft: 1 original.

Article 89. Responsibilities of customs offices

Customs offices shall receive and process information and data mentioned in Clauses 1 and 2, Article 88 of this Circular supplied by airport authorities and air carriers; and receive customs dossiers mentioned in Clause 3, Article 88 of this Circular from pilots or their lawful representatives in order to carry out customs procedures for aircraft under law.

Article 90. Customs procedures for aircraft on international entry and exit in combination with inland transportation and aircraft for inland transportation in combination with transportation of imports and exports

1. Customs procedures for aircraft on international entry and exit in combination with inland transportation are similar to those for aircraft flying from airport to airport. Imports or exports in a flight must undergo customs procedures applicable to their kinds.

2. For aircraft for inland transportation in combination with transportation of imports and exports, carriers shall arrange imported or exported goods and luggage in separate places in cargo holds for customs sealing.

Section 6. CUSTOMS PROCEDURES FOR INTERNATIONAL TRAINS ON ENTRY AND EXIT

Article 91. Customs procedures for trains on entry

1. At border stations

a/ Right after a train enters a border station, the guard or his/her representative (below collectively referred to as the guard) shall submit to the border station's border-gate customs office the following papers:

a.1/ The list or manifest of imports: 1 original:

a.2/ The bill of lading: 1 original (the third copy):

a.3/ The carriage hand-over and receipt paper (for cargo trains): 1 original;

a.4/ The list of passengers and slips of consignment of their unaccompanied luggage (for passenger trains): 1 original;

a.5/ The list of goods to be unloaded at each inland station: 2 originals (made according to a form provided by the General Department of Customs).

b/ The border station's border-gate customs office shall:

b.1/ Receive and examine papers submitted by the guard:

b.2/ Compare and conduct physical inspection of locomotives, quantity and number of each consigned goods or luggage carnage;

b.3/ Check the carrier's seal of each consigned goods or luggage carriage;

b.4/ Seal up each goods carriage or each goods lot to be unloaded at the inland station. If goods cannot be sealed up. such as extra-long or extra-heavy goods or bulk goods, the guard is responsible for preserving the goods in their original state;

b.5/ Supervise during the time the train stops at each station the unloading of consigned goods and luggage to warehouses and storing yards for carrying out import procedures at the station;

b.6/ Make a record of the hand-over of imports to be transported to another station to the inland station's border-gate customs office: 2 copies;

b.7/ Append the operational seal to papers submitted by the guard and seal up a customs dossier comprising 1 original of the list of goods unloaded to the inland station; 1 original of the bill of lading of goods unloading at the inland station and 1 copy of the hand-over record, and hand them to the guard for submission to the inland station's border-gate customs office.

2. At inland stations

a/ Right after the goods train arrives at an inland station, the guard shall submit to the inland station's border-gate customs office the following:

a.1/ Papers already sealed up by the border station's border-gate customs office;

a.2/ The carriage hand-over and receipt paper: 1 original;

a.3/ The transited goods hand-over and receipt paper (if any): 1 original.

b/ The inland station's border-gate customs office shall:

b.1/ Receive and examine papers submitted by the guard;

b.2/ Compare and physically inspect the quantity of consigned goods and luggage carriages and the number of each carriage;

b.3/ Examine the carrier's seal and seal of the border station's border-gate customs office (if any) of each goods and consigned luggage carriage:

b.4/ Conduct supervision during the time the train stops at each station;

b.5/ Append the operational seal to and return papers submitted by the border station's border-gate customs office.

Article 92. Customs procedures for trains on exit

1. At inland stations

a/ Before an exports train leaves an inland station, the guard shall submit to the inland station's border-gate customs office the following papers:

a. 1/ The train composition form: 1 original;

a.2/ The manifest of exports: 1 original;

a.3/ The bill of lading: 1 original (the third copy):

a.4/ The transited goods hand-over and receipt paper (if there are international goods in transit): 1 original.

b/ The inland station's border-gate customs office shall:

b.1/ Receive and examine papers submitted by the guard;

b.2/ Seal up each exports carriage or each exports lot, If goods cannot be sealed up. such as extra-long or extra-heavy goods or bulk goods, the guard will be responsible for preserving the goods in their original state;

b.3/ Make a record of the hand-over of exports to the border station's border-gate customs office: 2 copies;

b.4/ Append the operational seal to papers submitted by the guard;

b.5/ Seal up the customs dossier comprising 1 copy of the hand-over record; 1 copy of the manifest of exports and 1 original of the bill of lading, and hand them to the guard for submission to the border station's border-gate customs office.

2. At border stations

a/ When an exports train arrives at a border station, the guard shall submit to the border station's border-gate customs office the following:

a.1/ Papers already sealed up by the inland station's border-gate customs office;

a.2/ The declaration of the train's composition; list of crewmembers and employees working on the train and declaration of their luggage: 1 original;

a.3/ The declaration of exports, including transited goods, and the carriage hand-over and receipt paper (for cargo trains): 1 original.

a.4/ The list of passengers and slips of consignment of unaccompanied luggage (for passenger trains): 1 original

b/ The border station's border-gate customs office shall:

b.1/ Receive and examine papers submitted by the guard;

b.2/ Compare and physically inspect locomotives and the quantity of consigned goods and luggage carriages and number of each carriage;

b.3/ Supervise the loading of goods and luggage already cleared from customs procedures onto each carriage;

b.4/ Seal up each consigned goods and luggage carriage or each goods lot. If goods cannot be sealed up, such as super-long or super-heavy goods or bulk goods, the guard will be responsible for preserving the goods in their original state until the train's exit;

b.5/ Conduct supervision during the time the train stops at each station;

b.6/ Append the operational seal to papers submitted by the guard;

b.7/ Append the seal to and return papers submitted by the inland station's border-gate customs office.

Part V

EXPORT DUTY, IMPORT DUTY AND OTHER REGULATIONS ON TAX ADMINISTRATION OF EXPORTS AND IMPORTS

Section 1. EXPORT DUTY AND IMPORT DUTY BASES AND CALCULATION METHODS

Article 93. Tax bases for goods subject to proportional tax

For goods subject to proportional tax, tax bases are as follows:

1. Quantity of units of each goods item actually exported or imported and indicated in a customs declaration:

2. Taxed value which complies with the Customs Law. the Tax Administration Law and June 14, 2005 Law No. 45/2005/QH11 on Export Duty and Import Duty; the Government's Decree No. 40/2007/ND-CP of March 16, 2007, prescribing the customs valuation of exports and imports; and the Ministry of Finance's Circular No. 40/2008AT-BTC of May 21,2008, guiding Decree No. 40/2007/ND-CP.

3. Tax rates:

a/ Export duty rates for exports are specified for a number of goods items in the Export Tariff promulgated by the Minister of Finance.

b/ Import duty rates for imports are specified for each goods item, including preferential tax rate, particularly preferential tax rate and ordinary tax rate:

b.1/ Preferential duty rates are applicable to imports originating from countries or groups of countries or territories which give the most favored nation treatment in trade relations with Vietnam. The list of countries and groups of countries or territories giving the most favored nation treatment to Vietnam is promulgated by the Ministry of Industry and Trade.

Preferential tax rates are specified for each goods item in the Preferential Import Tariff promulgated by the Minister of Finance.

Taxpayers shall make declarations by themselves and be held responsible before law for the origin of goods to serve as a basis for determination of preferential import duty rates.

b.2/ Particularly preferential tax rates are specified for each goods item in the Minister of Finance's decisions and guided in the Ministry' of Finance's Circular No. 45/2007/TT-BTC of May 7, 2007, guiding the application of particularly preferential import rates.

b.3/ Ordinary tax rates are applicable to imports originating from countries or groups of countries or territories which do not give the most favored nation treatment or particular import duty incentives to Vietnam. All ordinary tax rates are equal to 150% of preferential tax rates for corresponding goods items specified in the Preferential Import Tariff.

Ordinary tax rate = Preferential tax rate x 150%

The classification of goods for determination of tax rates specified in Clause 3 of this Article must adhere to the goods classification principles set forth in the Government's Decree No. 06/ 2003/ND-CP of January 22, 2003. on classification of exports and imports, and the Ministry of Finance's Circular No. 85/2003/TT-BTC of August 29, 2003, guiding the classification of goods.

c/ Apart from being taxed under Point b.1, b.2 or b.3 of this Clause, goods excessively imported into Vietnam with subsidies or dumped or subject to discrimination between them and Vietnamese exports are subject to countervailing tax. anti-dumping tax. anti-discrimination tax or protective tax and governed by separate guiding legal documents.

Article 94. Tax calculation methods for goods subject to proportional tax

1. Export duty or import duty amounts payable for goods subject to proportional tax are determined based on the quantity of units of each goods item actually exported or imported as indicated in a customs declaration, taxed value and tax rate for each goods item according to the following formula:

Payable export duty or import duty amount

=

Quantity of units of each goods item actually exported or imported as indicated in a customs declaration

x

Taxed value of a unit of goods

x

Tax rate for each goods item

The determination of payable export duty amounts for crude oil or natural petroleum complies with the Ministry of Finance's Circular No. 32/ 2009/TT-BTC of February 19. 2009. guiding the implementation of regulations on taxes on organizations and individuals conducting petroleum exploration and exploitation under the Petroleum Law.

2. In case the actually exported or imported goods quantity is different from that indicated in the commercial invoice due to the characteristics of the goods but satisfies delivery and payment requirements under the goods trading contract, the payable export or import duty amount shall be determined based on the value actually paid for the exported or imported goods and tax rate for each goods item.

For example: An enterprise importing under a contract 1.000 tons of tobacco shreds at a unit price of USD 100/ton and a water content of ± 2%. The commercial invoice indicates 1.000 tons x USD 100 = a payment value of USD 100,000. If upon importation the customs scaling inspection shows that the actually imported volume weighs 1,020 or 980 tons, the payment value for tax calculation will be USD 100.000.

Article 95. Tax bases for goods subject to specific tax

Tax bases for goods subject to specific tax are determined as follows:

1. Quantity of units of each actually exported or imported goods item indicated in a customs declaration and specified in the list of goods subject to specific tax.

2. Specific tax amount prescribed for a unit of goods.

Article 96. Tax calculation methods for goods subject to specific tax

Payable export duty or import duty amounts for goods subject to specific tax are determined according to the following formula:

Payable export duty or import duty amount

=

Quantity of units of each actually exported or imported goods item as indicated in a customs declaration

x

Specific tax amount prescribed for a unit of goods

Article 97. Application of tax bases in some special cases

1. For goods used for a purpose different from that already determined for which these goods are eligible for non-taxation, tax exemption or consideration for tax exemption, tax bases are taxed value, tax rate and exchange rate at the time of change or the use purpose, in which:

a/ Value for import duty calculation complies with Circular No. 40/2008/TT-BTC.

b/ Tax rate for import duty calculation, regardless of initially imported goods being brand-new or used, is the one applicable to brand-new goods at the time of a change of the use purpose.

c/ Bases for determining the time of change of the use purpose

c.1/ In case a competent agency's written permission for use purpose change is required, this time is the date of such written permission.

c.2/ In case a competent agency's written permission for use purpose change is not required: The customs declarant shall produce such documents as a written notice on the tentative time for use purpose change sent to the customs office, a tax declaration made with the customs office within 10 days after the date of use purpose change as guided in Clause 3, Article 10 of this Circular, and other documents showing the duration of use purpose change to serve as a basis for determining the time of use purpose change.

c.3/ In case a competent agency's written permission for use purpose change is not required but the customs declarant has insufficient documents for determining the time of use purpose change to serve as a basis for tax calculation, this time will be the date of previous customs declaration registration. In case exports or imports for changed use purposes are of the same category but indicated in different customs declarations, but the customs declarant has insufficient documents evidencing the time of use purpose change while the customs office has insufficient bases for determining this time, the guidance of Point c.2.2, Clause 6, Article 23 of this Circular applies.

2. For goods produced, processed, reprocessed or assembled in non-tariff zones from foreign material and part imports specified in Clause 17, Article 100 of this Circular, tax bases shall be determined as follows:

a/ In case organizations and individuals that import these goods into inland Vietnam have registered with customs offices lists of imports used as materials, parts or semi-finished products for production of goods for import into inland Vietnam and norms of those materials, parts or semi-finished products, payable import duty amounts thereon shall be determined based on volumes, tax rates and tax calculation prices for the imported materials, parts or semi-finished products constituting these goods specifically:

a. 1/ Quantity of imports for tax calculation is the quantity of actually imported materials or parts constituting goods produced in non-tariff zones and imported into inland Vietnam.

a.2/ Applicable import duty rates are those prescribed for each type of materials or parts in the current Preferential Import Tariff at the time of registration of declarations of goods imported for the first time into non-tariff zones. In case the conditions specified in the Ministry of Finance's circulars guiding the application of particularly preferential tax rates are fully satisfied, particularly preferential tax rates under the Particularly Preferential Import Tariff effective at the time of registration of declarations of goods imported into non-tariff zone markets apply.

a.3/ Taxed values shall be determined according to values of imported materials or parts constituting these goods under Circular No. 40/2008/TT-BTC.

b/ If impossible to determine import duty amounts under Point a of this Clause, import duty shall be calculated at tax rates and taxed values of goods items produced, processed, reprocessed or assembled, and imported into inland Vietnam at the time of registration of customs declarations.

Section 2. TIME OF AND EXCHANGE RATES FOR TAX CALCULATION

Article 98. Time of and exchange rates for tax calculation for exports and imports

1. Time of export duty or import duty calculation is the date of registration of a customs declaration. Export duty or import duty shall be calculated at tax rate, taxed value and exchange rate effective at the time of tax calculation.

2. In case a taxpayer makes a declaration before the date of customs declaration registration, the applicable exchange rate for tax calculation is that of the date when the taxpayer makes the declaration but within three days before the date of customs declaration registration.

3. In case taxpayers make e-declarations. the time of tax calculation complies with regulations on e-customs procedures.

Article 99. Time of tax calculation for exports or imports subject to single registration of customs declarations

For exports or imports subject to single registration of customs declarations for multiple exportation or importation, export duty or import duty shall be calculated at tax rates, taxed values and exchange rates for tax calculation on dates of export or import and based on quantity of each actually exported or imported goods item.

Section 3. TAX EXEMPTION CASES AND PROCEDURES

Article 100. Cases of tax exemption

Exports or imports exempt from export duty or import duty under Article 16 of Decree No. 149/ 20O5/ND-CP are specifically guided as follows:

1. Goods temporarily imported for re-export or temporarily exported for re-import for participation in trade fairs, exhibitions or product expositions: professional machinery, equipment and tools temporarily imported for re-export or temporarily exported for re-import for conferences, seminars, scientific research, sport tournaments, cultural or art performances, medical examination and treatment, etc., for a duration of up to 90 days (except for machinery and equipment temporarily imported for re-export and eligible for consideration for tax refund as guided in Clause 9, Article 112 of this Circular). Upon the expiration of this duration, goods shall be imported back into Vietnam, for temporarily exported goods, or exported abroad, for temporarily imported goods.

2. Goods being movable assets of Vietnamese or foreign organizations and individuals brought into or from Vietnam within prescribed limits, including:

a/ Goods being movable assets brought into Vietnam by foreign organizations and individuals permitted to reside and work in the country at the invitation of competent state agencies or brought abroad upon the expiration of their stay or work in Vietnam.

b/ Goods being movable assets allowed to be brought abroad by Vietnamese organizations and individuals for business or working purposes and imported back into Vietnam upon their return home.

c/ Goods being movable assets brought into Vietnam by overseas Vietnamese or Vietnamese households permitted to return home for permanent residence or brought abroad by these entities upon their permitted exit for overseas permanent residence; goods being movable assets brought into Vietnam by foreigners upon their permitted entry for permanent residence in the country or brought abroad by these persons upon their permitted exit for permanent residence overseas.

Particularly, automobiles and motorcycles currently in use and brought into Vietnam by households or individuals upon their permitted entry for permanent residence in the country are exempt from import duty within the limit of one unit of a kind for each household.

The identification of goods to be movable assets complies with Clause 5, Article 5 of the Law on Export Duty and Import Duty.

3. Exports or imports of foreign organizations and individuals enjoying diplomatic privileges and immunities in Vietnam are governed by the Ordinance on Privileges and Immunities for Diplomatic Missions, Consular Offices and Representative Offices of International Organizations, and its detailing and guiding documents.

4. Goods exported or imported for processing are exempt from tax under Clause 4, Article 16 of Decree No. 149/2005/ND-CP under registered processing contracts.

a/ Types of goods eligible for tax exemption under processing contracts:

a.1/ Materials imported or exported for processing;

a.2/ Supplies imported or exported for use in production or processing (paper, chalk, drawing pen. marker pen, clothes pin, printing ink, adhesive brush, lithographic frame, eraser, polishing oil) in case enterprises can elaborate consumption norms and wastage;

a.3/ Goods imported or exported as processing samples;

a.4/ Machinery and equipment imported or exported in direct service of processing under processing contracts. Upon the expiration of the processing contract term, these machines and equipment shall be re-exported or re-imported. If they are not re-exported or re-imported, tax declaration and payment shall be made under regulations, In case they are retained for use as gifts or presents, they are exempt from import duty under Clause 4, Article 104 of this Circular.

a.5/ Processed products exported for return to processees (if they are liable to export duty);

a.6/ Finished products imported to be fitted on processed products or put together with processed products to form a complete goods item for export: and parts and spare parts imported for warranty for exported processed products, will be exempt from tax like materials and supplies imported for processing if they fully satisfy the following conditions:

- They are indicated in processing contracts or annexes thereof;

- Their norms are included in the table of norms of materials and supplies imported for processing;

- They are managed as materials and supplies imported for processing.

b/ For export duty-exempt goods exported for processing for Vietnamese parties, and then imported back into Vietnam, import duty shall be paid for processed products (tax is not imposed on the value of materials and supplies already used in processing under signed processing contracts; import duty rates are applicable to imported processed products; and origin of products are determined under the Ministry of Industry and Trade's rules of origin).

c/ Imported equipment, machinery, materials, supplies and processed products provided by foreign parties as processing remunerations are liable to import duty under regulations.

d/ Processing norms

Directors of processing enterprises shall be responsible for use and consumption norms and wastage (below collectively referred to as consumption norms) of goods imported for processing under processing contracts. Violations shall be handled under law.

The elaboration and registration of these norms must comply with Circular No. 116/2008AT-BTC.

Scraps and discarded products within the use and consumption norms and wastage applicable to processing forms satisfying the conditions specified in Article 31 of the Government's Decree No. 12/2006/ND-CP of January 23. 2006, which are agreed upon in processing contracts and registered with customs offices under Circular No. 16/2008/TT-BTC hướng dẫn thủ tục hải quan hàng hoá gia công thương nhân nước ngoài">116/2008/TT-BTC are liable to import duty like those for export production under Point c.3, Clause 5, Article 112 of this Circular.

5. Goods exported or imported within the tax-free luggage limit applicable to persons on exit or entry

a/ For persons on exit: Articles included in their luggage other than those on the list of goods banned from export or subject to conditional export are subject to no limit.

b/ For persons on entry:

b.1/ Duty-free limit applicable to these persons complies with the Government's Decree No. 66/2002/ND-CP of July 1, 2002, prescribing luggage limits for persons on exit or entry and tax-free imported gifts and donations.

b.2/ For goods imported in excess of tax-free quotas, importers shall pay tax on excessive quantity. If the total payable tax amount for the excessive quantity is less than VND 50,000. this tax amount is exempted. Persons on entry may choose articles among their luggage to be taxed.

6. Goods purchased, sold or exchanged among border inhabitants are exempt from export duty or import duty within set norms. Tax shall be paid for any quantity of goods in excess of these norms.

Regulations on border inhabitants and tax-free norms for goods purchased, sold or exchanged among border inhabitants comply with the Prime Minister's Decision No. 254/2006/QD-TTg.

7. Goods imported to create fixed assets of investment promotion projects specified in List A or List B of Appendix I or Appendix II to the Government's Decree No. 108/2006/ND-CP of September 22. 2006, detailing and guiding a number of articles of the Investment Law, and investment projects funded with official development assistance (ODA) are exempt from import duty, including:

a/ Equipment and machinery;

b/ Special-use means of transport in technological lines certified by the Ministry of Science and Technology; vehicles to carry workers to or from working places, including cars of 24 seats or more and waterway vehicles;

c/ Parts, details, knocked down parts, spare parts, fittings, molds, models and accessories for complete assembly or synchronous use with equipment, machinery and special-use means of transport specified at Points a and b of this Clause;

d/ Materials and supplies used for manufacturing equipment and machinery included in technological lines or manufacturing parts, details, knocked down parts, spare parts, fittings, molds, models and accessories for complete assembly or synchronous use with equipment and machinery specified at Points a and b of this Clause;

e/ Construction materials which cannot be produced at home.

The list of construction materials which can be produced at home to serve as a basis for tax exemption specified at this Point is promulgated by the Ministry of Planning and Investment.

8. Plant varieties and livestock breeds permitted to be imported for implementation of investment projects in agriculture, forestry or fisheries. The list of plant varieties and livestock breeds permitted to be imported to serve as a basis for tax exemption specified in this Clause complies with regulations of the Ministry of Agriculture and Rural Development.

9. Goods imported by enterprises making investment in the form of build-operate-transfer (BOT) and sub-contractors for implementation of investment projects under BOT contracts, build-transfer-operate (BTO) contracts or build-transfer (BT) contracts, including:

a/ Equipment and machinery imported to create fixed assets (including also equipment, machinery and spare parts used for survey, designing and construction of works);

b/ Special-use means of transport in technological lines to create fixed assets certified by the Ministry of Science and Technology; and vehicles to carry workers to or from working places, including cars of 24 seats or more and waterway vehicles;

c/ Parts, details, knocked down parts, spare parts and fittings, molds, models and accessories for complete assembly or use synchronously with equipment, machinery, special-use means of transport and vehicles to carry workers to or from working places specified at Points a and b of this Clause, even in case they are used for replacement, maintenance or warranty in the course of work operation:

d/ Materials and supplies imported for project implementation, including those used for production or operation of works.

10. Import duty exemption for imports specified in Clauses 7, 8 and 9 of this Article also applies to project expansion or technological replacement or renewal.

11. First-time tax exemption is given to goods being equipment and devices on the list specified in Appendix III to the Government's Decree No. 149/2005/ND-CP which are imported to create fixed assets of encouraged investment projects or investment projects funded with ODA sources on hotels, offices, apartments for lease, houses, trade centers, technical services, supermarkets, golf courses, tourist resorts, sport facilities, entertainment centers, medical examination and treatment establishments, training, culture, finance, banking, insurance, audit or consultancy services.

12. Goods imported to serve petroleum activities, including:

a/ Equipment, machinery and special-use means of transport necessary for petroleum activities as certified by the Ministry of Science and Technology: vehicles to carry workers to and from working places, including cars of 24 seats or more and waterway vehicles, including also parts, details, knocked down parts, spare parts for fitting and replacement, molds, models and accessories for complete assembly or synchronous use with above equipment, machinery, special-use means of transport and vehicles to carry workers;

b/ Domestically unavailable supplies necessary for petroleum activities;

The list of domestically available supplies necessary for petroleum activities to serve as a basis for tax exemption specified at this Point is promulgated by the Ministry of Planning and Investment;

c/ Medical instruments and equipment and first-aid medicines for use on oil rigs and floating works as certified by the Ministry of Health;

d/ Office equipment for petroleum activities;

e/ Other goods temporarily imported for re­-export for petroleum activities.

In case goods specified in this Clause are imported by sub-contractors and other organizations or individuals directly or through entrustment, bidding or rent for sub-lease, and subsequently supplied to organizations and individuals conducting petroleum exploration and exploitation under petroleum service contracts or goods supply contracts, these goods are also exempt from import duty.

13. Shipbuilders are exempt from export duty for exported seagoing ships and from import duty for:

a/ Machinery and equipment of all kinds imported to create their fixed assets;

b/ Means of transport in technological lines as certified by the Ministry of Science and Technology which are imported to create their fixed assets;

c/ Domestically unavailable materials, supplies and semi-finished products for shipbuilding.

The list of domestically available materials, supplies and semi-finished products for shipbuilding to serve as a basis for tax exemption specified at this Point is promulgated by the Ministry of Planning and Investment.

14. Import duty exemption for domestically unavailable materials and supplies which are imported in direct service of software production.

The list of domestically available materials and supplies in direct service of software production to serve as a basis for tax exemption specified at this Point is promulgated by the Ministry of Planning and Investment.

15. Import duty exemption for goods imported for direct use for scientific research and technological development, including domestically unavailable machinery, equipment, spare parts, supplies and means of transport and technologies; scientific documents, books, newspapers and magazines and online information on science and technology.

The list of domestically available machines, equipment, spare parts, supplies, means of transport and technologies directly used in scientific research and technological development activities to serve as a basis for tax exemption specified in this Clause is promulgated by the Ministry of Planning and Investment.

16. Import duty exemption for 5 years from the date of production commencement for the cases specified in Clauses 15and 16.Article 16 of Decree No. 149/2005/ND-CP Goods exempt from tax under these Clauses include:

a/ Materials, supplies and parts imported for production under projects on the list of domains eligible for particular investment promotion (List A) in Appendix I or the list of geographical areas with particularly difficult socio-economic conditions in Appendix II to the Government's Decree No. 108/2006/ND-CP and specifically guided in the Ministry of Trade's Circular No. 02/ 2007/TT-BTM of February 2,2007, classifying in detail production materials, supplies and parts exempt from import duty under Clause 15. Article 16 of the Government's Decree No. 149/2005/ND-CP of December 8. 2005. detailing the Law on Export Duty and Import Duty:

b/ Materials, supplies and parts imported for projects on production of mechanical, electric and electronic parts and spare parts as specifically guided in Circular No. 02/2007^-6™;

c/ Domestically unavailable materials, supplies and semi-finished products for production under projects on the list of domains eligible for investment promotion (List B) provided in Appendix I to Decree No. 108/2006/ND-CP;

d/ Domestically unavailable semi-finished products imported for production under projects on the list of domains eligble for particular investment promotion (List A) provided in Appendix I. or the list of geographical areas with particularly difficult socio-economic conditions provided in Appendix II, to Decree No. 108/2006/ND-CP.

The date of production commencement to serve as a basis for import duty exemption for 5 years under this Clause is the date when an enterprise actually commences production activities as certified by the management board of the industrial park, export processing zone, hi-tech park or economic zone where the enterprise is operating or certified by the provincial-level Industry and Trade Service of the locality where the project is implemented in case the enterprise does not operate in the above park or zone.

17. Goods produced, processed, reprocessed or assembled in non-tariff zones without using foreign material or part imports are exempt from import duty when being imported into the domestic market. In case these goods use imported materials or parts, they are subject to import duty when being imported into the domestic market. Bases and methods for import duty calculation comply with Clause 2, Article 97 of this Circular.

18. Machinery, equipment and means of transport temporarily imported into Vietnam for re-export by foreign contractors for construction of works or ODA-funded projects are exempt from import duty and export duty. Upon the expiration of the duration of work or project construction, foreign contractors shall re-export these goods. If foreign contractors do not re-export these goods but liquidate or transfer them in Vietnam, they shall obtain permission of competent state agencies and make import duty declaration and payment under regulations.

Particularly for cars of less than 24 seats and automobiles designed to carry both people and cargo and equivalent to cars of less than 24 seats, the mode of temporary import for re-export will not apply. Foreign contractors wishing to import these automobiles into Vietnam shall pay import duty under regulations. Upon completion of construction of works, foreign contractors shall re-export the imported automobiles and get paid import duty amounts refunded. The tax refund level complies with Clause 9, Article 112 of this Circular.

19. Goods being domestically unavailable materials, supplies and semi-finished products imported for production under investment projects in border-gate economic zones are exempt from tax under the Prime Minister's Decision No. 33/2009/QD-TTg of March 2, 2009, promulgating financial mechanisms and policies for border-gate economic zones, and guiding documents.

20. Tax exemption in special cases under Clause 20, Article 16 of Decree No. 149/2005/ND-CP.

21. Other guidance

a/ If exports and imports eligible for tax exemption as guided in Clauses 7 thru 18 of this Article satisfy two or more tax exemption conditions, taxpayers may choose to enjoy the highest tax exemption level.

b/ Total value of goods imported to create fixed assets in the cases specified in this Article must not exceed the capital amount used to purchase machinery and equipment to create fixed assets for enterprises.

Cases eligible for import duty exemption for goods imported to create fixed assets specified in this Article, in which goods are not imported from abroad but enterprises are permitted to receive import duty-free goods transferred in Vietnam from other enterprises, receiving enterprises will be exempt from import duty and concurrently import duty will not be retrospectively collected from transferring enterprises, on the condition that transfer prices indicated in trading contracts are exclusive of import duty.

c/ Goods being materials, supplies, parts, details, knocked down parts, spare parts for fitting, molds, models and accessories for complete assembly or synchronous use with equipment and machinery, which are exempt from tax under Points c and d. Clause 7. Point c. Clause 9. and Point a. Clause 12 of this Article, will enjoy tax exemption for their quantities enough for installation, connection or use for normal operation of machinery and equipment systems. Excessively imported quantities are subject to import duty under regulations.

Enterprises shall make declarations themselves, be responsible for their declarations, and supply written explanations or diagrams for installation and use of these goods in order to evidence the completeness of materials, supplies, parts, details, knocked down parts, spare parts for fitting, molds, models and accessories for complete assembly or synchronous use with equipment and machinery, which are exempt from tax under Points c and d, Clause 7, Point c, Clause 9, and Point a, Clause 12 of this Article, at the request of customs offices.

d/ Organizations and individuals that carry out entrusted import or win biddings for import of goods (at import duty-exclusive prices under entrustment contracts or winning bids under bid-winning decisions) for supply to entities eligible for import duty exemption under Clauses 7 thru 19 of this Article will also be exempt from import duty for these goods.

e/ Projects eligible for investment promotion which obtain investment licenses or investment incentive certificates before January 1. 2006. and are eligible for export duty and import duty incentives higher than those guided in this Circular, may continue enjoying these incentives if they fully satisfy the following conditions:

- Their investment licenses or investment incentive certificates are still valid and no change is made to provisions on investment incentives;

- Incentives stated in investment licenses or investment incentive certificates are compliant with law at the time of grant of these licenses or certificates.

In case investment licenses or investment incentive certificates provide export duty or import duty incentives lower than those provided in this Circular, these projects may enjoy incentives provided in this Circular for their remaining incentive duration.

For projects licensed before January 1, 2006, which have been granted by a competent state agency a list of tax-exempt goods, customs offices shall give tax exemption according to the granted list (if enterprises have not yet imported goods, they may import for the first time; if they have partially imported goods, they may continue importing these goods according to tax incentives under investment licenses or investment incentive certificate, on the condition that the approved list of goods is still valid and compliant with law at the time of grant of these licenses or certificates).

In case enterprises have not yet been granted a list of tax-exempt goods by a competent state agency, they shall draw up a list of tax-exempt exports and imports and be held responsible before law for the accuracy and truthfulness of this list under Article 101 of this Circular. If any untruthful detail is detected, tax shall be retrospectively collected and violators shall be handled under law.

The basis for identifying projects eligible for investment promotion licensed from January 1, 2006, to the effective date of Decree No. 108/2006/ ND-CP is Appendix I or Appendix II to Decree No. 149/2005/ND-CP.

Article 101. Registration of lists of tax-exempt exports and imports

1. Taxpayers shall register a list of tax-exempt exports and imports (made according to a form provided in Appendix VI to this Circular) before carrying out procedures for exporting or importing goods in the cases eligible for tax exemption specified in Article 16 of Decree No. 149/2005/ ND-CP and Article 13 of Decision No. 33/2009/ QD-TTg, including the following cases:

a/ Goods imported to create fixed assets of projects eligible for investment promotion as specified in Appendix I or Appendix II to Decree No. 108/2(X)6/ND-CP, or ODA-funded investment projects;

b/ Plant varieties and livestock breeds permitted to be imported for implementation of investment projects in agriculture, forestry or fisheries;

c/ Goods imported by BOT enterprises or sub­contractors for implementation of BOT, BTO or BT projects;

d/ Goods being equipment and tools imported for the first time and on the list specified in Appendix III to Decree No. 149/2005/ND-CP to create fixed assets of projects eligible for investment promotion or ODA-funded investment projects on hotels, offices, apartments for lease, houses, trade centers, technical services, supermarkets, golf courses, tourist resorts, sport facilities, entertainment centers, healthcare establishments, training, culture, finance, banking, insurance, audit and consultancy services;

e/ Goods imported for petroleum activities;

f/ Seagoing ships for export, machinery, equipment and tools for creating fixed assets; means of transport in technological lines for creating fixed assets of shipbuilding establishments as certified by the Ministry of Science and Technology. Domestically unavailable materials, supplies and semi-finished products imported by shipbuilding establishments for shipbuilding activities.

g/ Domestically unavailable materials and supplies used in direct service of software production.

h/ Goods imported for direct use in scientific research and technological development;

i/ Materials, supplies and parts imported for production under projects on the list of domains eligible for particular investment promotion (List A) in Appendix I or the list of geographical areas with particularly difficult socio-economic conditions in Appendix II to Decree No. 108/2006/ND-CP; or in the domain of manufacture of mechanical, electric or electronic parts and spare pans, are exempt from import duty for five years from the date of production commencement;

j/ Domestically unavailable materials, supplies and semi-finished products imported for production under projects on the list of domains eligible for investment promotion (List B) in Appendix I; domestically unavailable semi­-finished products imported for production under projects in domains eligible for particular promotion for investment (List A) in Appendix I or the list of geographical areas with particularly difficult socio-economic conditions in Appendix II to Decree No. 108/2006/ND-CP are exempt from import duty for five years from the date of production com me nee me n t;

k/ Domestically unavailable materials, supplies and semi-finished products imported for production under investment projects in border-gate economic zones specified in Decision No. 33/2009/QD-TTg must be included in lists of tax-exempt imports to be registered under this Article.

2. Places for registration of lists: District-level Customs Departments which manage processed goods and are under provincial-level Customs Departments in localities where enterprises implement investment projects, for provincial-level Customs Departments which set up district-level Customs Departments to manage processed goods.

In case provincial-level Customs Departments in localities where enterprises implement investment projects do not set up district-level Customs Departments to manage processed goods, customs offices for registration of lists are these provincial-level Customs Departments, which may not authorize other agencies to do so.

3. A registration dossier comprises:

a/ One original of a written request for registration of a list of goods exempt from import duty, clearly stating quantities of goods and reason for tax exemption, made according to form No. 14. for immovable assets, or form No, 15, for other cases, provided in Appendix VI to this Circular:

b/ Two originals of a list of tax-exempt exports and imports enclosed with 2 conciliation-monitoring slips (made according to form No. 16 provided in Appendix VI to this Circular, in which:

The list of tax-exempt exports and imports and conciliation-monitoring slips shall be made once for the whole project, or for each stage of project implementation or each project item (if the investment license granted by a competent agency or the econo-technical study and scientific and technical documents of the project describe the project by each stage or each item);

In case quantities or values of tax-exempt exports and imports stated in the list are erroneous or different from the initial registration, the enterprise may supplement or adjust the list provided that added goods must meet the project's needs and comply with provisions on total value of Point b, Clause 21, Article 100 of this Circular.

c/ Two originals of a written explanation and/ or diagram for installation and use of tax-exempt exports and imports stated in the to be-registered list, for goods being materials, supplies, parts, details, knocked down parts, spare parts for fitting or replacement, molds, models and accessories for complete assembly or synchronous use with equipment and machinery eligible for tax exemption specified at Points c and d. Clause 7: Point c, Clause 9, and Point a. Clause 12, Article 100 of this Circular, at the request of the customs office;

d/ The investment license or investment incentive certificate (also for cases of project expansion and domestic investment projects capitalized at less than VND 15 billion and not in domains subject to conditional investment, or BOT, BTO or BT projects): to produce the original and submit one copy;

e/ A written permission of a competent agency for expansion of the project eligible for investment incentives, or technological replacement or renewal, for the cases specified in Clause 10, Article 100 of this Circular;

f/ An econo-technical study and documents on detailed technical designs of the project and the expanded project (at the request of the customs office): to produce the original and submit one copy;

g/ A shipbuilding contract, for materials, supplies and semi-finished products imported for shipbuilding: to produce the original and submit one copy;

h/ A software production project, for goods imported for software production: to produce the original and submit one copy;

i/ A scientific research and technological development project or scheme approved by a competent authority, for goods imported for scientific research and technological development: to produce the original and submit one copy:

j/ Certification by an agency competent to issue lists of tax-exempt goods for projects licensed before January 1, 2006, to these projects, which have not been issued this list: to produce the original and submit one copy;

k/ One original of a list of documents included in the dossier for registration of the list of tax-exempt goods.

In case there is a problem in identification of domains or geographical areas eligible for investment incentives, equipment and tools imported for the first time to create fixed assets, taxpayers shall request in writing guidance of agencies granting investment incentive certificates. Taxpayers' written requests for guidance and written guidance of agencies granting investment incentive certificates must be enclosed with the list of tax-exempt imports to be registered with the customs office.

4. Bases for customs declarants to make declaration and registration and customs offices to inspect the declaration and registration of lists of tax-exempt imports include:

a/ Papers and documents guided at Points from d thru j. Clause 3 of this Article;

b/ Domains and geographical areas eligible for investment incentives specified in Appendices I and II to Decree No. 108/2006/ND-CP of September 22, 2006; equipment and tools imported for the first time to create fixed assets specified in Appendix III and Article 16 of Decree No. 149/2005/ND-CP on tax-exempt objects as guided in Article 100 of this Circular:

c/ Lists of goods promulgated by competent agencies, depending on each of the following specific cases:

c.1/ List of domestically available construction materials to serve as a basis for determination of goods being domestically unavailable construction materials; and the Ministry of Science and Technology's certification of goods being special-use means of transport in technological lines imported to create fixed assets as specified at Point a. Clause 1 of this Article;

c.2/ List of plant varieties and livestock breeds permitted for import, which is promulgated by the Ministry of Agriculture and Rural Development, for goods specified at Point b. Clause 1 of this Article;

c.3/ The Ministry of Science and Technology's certification of goods being special-use means of transport in technological lines imported to create fixed assets as specified at Point c. Clause 1 of this Article;

c.4/ List of groups of equipment and tools exempt from import duty only for the first time of importation as specified in Appendix III to Decree No. 149/2005/ND-CP of December 8, 2005, for the cases specified at Point d. Clause 1 of this Article;

c.5/ List of domestically available supplies necessary for petroleum exploration and exploitation to serve as a basis for determination of goods being supplies necessary for petroleum exploration and exploitation; the Ministry of Science and Technology's certification of special-use means of transport necessary for petroleum exploration and exploitation: the Ministry of Health's certification of medical instruments and equipment and first-aid medicines for use on oil rigs and floating works in the cases specified at Point e. Clause 1 of this Article;

c.6/ List of domestically available materials, supplies and semi-finished products for shipbuilding to serve as a basis for determination of goods to be used for shipbuilding: and the Ministry of Science and Technology's certification of goods being special-use means of transport in technological lines imported to create fixed assets as specified at Point f. Clause 1 of this Article;

c.7/ List of domestically available materials and supplies in direct service of software production, for imports specified at Point g. Clause 1 of this Article;

c.8/ List of domestically available machinery, equipment, spare parts, supplies, means of transport and technologies directly used in scientific research and technological development to serve as a basis for determination of goods used in scientific research and technological development as specified at Point h. Clause 1 of this Article:

c.9/ The Ministry of Trade's written detailed guidance on classification of materials, supplies and parts for production under projects eligible for particular investment promotion, geographical areas with particularly difficult socio-economic conditions or domains of manufacture of mechanical, electric and electronic spare parts, for imports specified at Points i and k, Clause 1 of this Article;

c.10/ List of domestically available materials, supplies and semi-finished products, promulgated by the Ministry of Planning and Investment, for imports specified at Points j and k. Clause 1 of this Article.

5. Time of registration of lists: before registration of the first export or import declaration.

6. Responsibilities of taxpayers:

a/ To determine their use needs and draw up by themselves lists of tax-exempt exports and imports under provisions on tax-exempt objects of the Law on Export Duty and Import Duty. Decree No. 149/ 2005/ND-CP Article 13 of Decision No. 33/2009/ QD-TTg this Circular and other relevant documents;

b/ To make written explanations and/or draw diagrams for installation and use of tax-exempt exports and imports on lists of tax-exempt exports and imports to be registered under law, needs of their projects or programs at the request of customs offices;

c/To be held responsible before law for accurate and truthful declaration of import items declared in tax-exempt lists and written explanations of installation and use of tax-exempt imports, and for the proper use of these tax-exempt goods.

7. Customs offices shall receive, examine and handle dossiers as follows:

a/ In case dossiers are incomplete or goods are ineligible for tax exemption, they shall request in writing the modification of lists or return dossiers to taxpayers and clearly state reasons for dossier return:

b/ In case dossiers are complete, they shall, on a case-by-case basis, examine and compare documents in these dossiers with the provisions of Article 16 of Decree No. 149/2005/ND-CP Article 13 of Decision No. 33/2009/QD-TTg and Articles 100 and 101 of this Circular, so as to identify tax-exempt objects, the consistency and accuracy of dossiers for registration of lists of tax-exempt goods, record registrations in monitoring books and append seals for certification in 2 original lists of tax-exempt exports and imports and 2 original conciliation-monitoring slips (they shall keep one original and give to taxpayers the other original to be produced to customs offices for effecting the conciliation upon carrying out customs procedures for actually exported or imported goods) under regulations.

Article 102. Tax exemption dossiers and procedures

1. Tax exemption dossiers are customs dossiers as guided in this Circular.

For taxpayers that meet with difficulties caused by objective reasons and other cases eligible for exemption from export duty and import duty as specified in Clause 20. Article 16 of Decree No. 149/2005/ND-CP written certifications of objective reasons, for which export duty and import duty exemption is requested, by provincial-level People's Committees, ministries or ministerial-level agencies, are also required.

2. Tax exemption procedures

a/ For cases in which lists of tax-exempt exports and imports are not required to be registered:

a.1/ Taxpayers shall calculate by themselves and declare tax amounts to be exempted for each goods item or customs declaration as for cases liable to tax payment. Customs offices shall compare tax exemption dossiers and tax amounts requested to be exempted with current regulations before carrying out tax exemption procedures for each customs declaration under regulations.

a.2/ In case customs offices inspect and determine that exports or imports are ineligible for tax exemption against taxpayers' declarations, they shall assess tax and sanction violations (if any) under regulations.

a.2/ In case taxpayers meet with difficulties caused by objective reasons and other circumstances and become eligible for export duty and import duty exemption under Clause 20, Article 16 of Decree No. 149/2005/ND-CP:

- Taxpayers shall determine by themselves tax amounts from which they request to be exempt and send written requests (enclosed with relevant dossiers) to the General Department of Customs for reporting the requested tax exemption to the Ministry of Finance for subsequent submission to the Prime Minister for consideration of tax exemption.

- The General Department of Customs shall re­examine all dossiers. If dossiers are incomplete or reasons for tax exemption must be further clarified, it shall request in writing the supplementation of these dossiers. Upon obtaining sufficient objective grounds, the General Department of Customs shall submit draft reports to the Ministry of Finance for subsequent submission to the Prime Minister.

- The Ministry of Finance shall send written notices on the Prime Minister's directing opinions to concerned taxpayers and customs offices for implementation.

- Customs offices carrying out goods export and import procedures shall exempt export duty and import duty for goods quantities, which have been permitted for tax exemption by the Prime Minister or fully collect taxes strictly according to the Prime Minister's directing opinions.

b/ Tax exemption procedures for cases subject to compulsory registration of lists of tax-exempt exports and imports

b.1/ Apart from customs procedures guided at Point a. 1. Clause 2 of this Article, the customs office shall compare the tax exemption dossier with current regulations and update the quantity and value of actually exported or imported goods in the taxpayer's original conciliation-monitoring slip and give a signature for certification under regulations, then file one copy of the list of tax-exempt imports and the conciliation-monitoring slip clearly showing the quantity and value of exports or imports exempt from export duty or import duty in the export or import dossier.

b.2/ When the goods quantity stated in the list is fully exported or imported, the leader of the district-level Customs Department where final procedures are carried out shall give a certification in the original conciliation-monitoring slip of the taxpayer, and send its copy to the provincial-level Customs Department where the list has been registered as a ground for post-customs clearance inspection of the use of tax-exempt exports or imports.

b.3/ Customs offices shall exempt taxes for cases in which customs declarations are registered after the registration of lists. Cases in which customs declarations are registered before the registration of lists shall be reported to by the Ministry of Finance for consideration and handling on a case-by-case basis.

Article 103. Reporting, inspection and financial settlement of export, import and use of tax-exempt goods

1. For cases subject to compulsory registration of lists of tax-exempt exports and imports, apart from using tax-exempt goods for proper purposes, once every 6 months from the date of registration of the first declaration for export or import of tax-exempt goods to the date of completion of construction or installation and use of tax-exempt goods on these lists, taxpayers shall report to customs offices on export, import or use of tax-exempt goods on lists already registered with these offices for management, monitoring and inspection of use of all tax-exempt goods from the first date of export or import to the reporting date.

2. Customs offices where tax-exempt goods lists are registered shall monitor and inspect taxpayers' export, import and proper use of tax-exempt goods. In case goods are used for improper purposes, tax shall be fully collected and fines imposed under regulations.

3. Financial settlement of use of tax-exempt according to registered lists of tax-exempt exports and imports:

a/ Cases subject to financial settlement

For the cases of importation specified at Point d, Clause 7; Point d, Clause 9: Clause 12; Point c, Clause 13; Clauses 14, 16 and 19 of Article 100. financial settlement of use of imported goods shall be made with customs offices.

b/ Responsibilities of taxpayers

b.1/ Within 45 days after the termination of shipbuilding contracts, for cases specified in Clause 13, the completion of software production, for cases specified in Clause 14, the completion of production and manufacture, for cases specified at Point d. Clause 7 and Point d. Clause 9, or the end of a fiscal year, for cases specified in Clauses 16 and 19, Article 100 of this Circular, taxpayers shall report to customs offices where lists have been registered on the importation and use of tax-exempt imports, under shipbuilding contracts or for software production or in the fiscal year, with the following details:

- Quantities of tax-exempt imported materials, supplies, parts and semi-finished products;

- Actual consumption norms of tax-exempt imported materials, supplies, parts and semi­-finished products;

- Quantities of tax-exempt imported materials, supplies, parts and semi-finished products which have been used for production;

- Quantities of products;

- Quantities of tax-exempt imported materials supplies, parts and semi-finished products which have been used for other purposes;

- Quantities of tax-exempt imported materials supplies, parts and semi-finished products in stock to be carried forward to the next year.

b.2/ Upon the expiration of goods supply contracts or service provision contracts, for cases specified in Clause 12, Article 100 of this Circular, sub-contractors or other organizations and individuals shall make financial settlements with customs offices where their lists of tax-exempt goods have been registered and notify organizations and individuals that carry out petroleum exploration and exploitation of quantities and values of import duty-exempt goods. For quantities of import duty-­exempt goods which are not used for petroleum exploration and exploitation, previously exempted import duty amounts shall be fully paid under regulations.

c/ Responsibilities of customs offices

Within 60 days after receiving complete dossiers of financial settlement reports from taxpayers, customs offices where lists of tax-exempt goods have been registered shall assume the prime responsibility for, and coordinate with local Tax Departments in. inspecting enterprises' importation and use of goods and financial settlement of used quantities of import duty-exempt materials and supplies for production, and collect taxes and impose fines for failure to strictly comply with regulations on financial settlement reporting and/or improper use of tax-exempt goods.

Particularly for imports eligible for tax exemption for 5 years, within 10 days after making the financial settlement for the fifth year (the last year of tax exemption), import duty, value-added tax and excise tax (if any) shall be declared and fully paid under regulations for all materials and semi-finished products imported in excess of production demands and remaining in stock.

Section 4. CASES TO BE CONSIDERED FOR TAX EXEMPTION AND PROCEDURES FOR TAX EXEMPTION CONSIDERATION

Article 104. Cases to be considered for tax exemption

Exports or imports in the following cases may be considered for export duty or import duty exemption:

1. Imports being special-use goods directly used for security and defense which are on specific lists approved by line ministries and registered with the Ministry of Finance right from the beginning of the year (the deadline for annual registration of import plans by line ministries is March 31);

2. Imports being special-use goods directly used for scientific research (except for the cases specified in Clause 14. Article 16 of Decree No. 149/2005/ ND-CP) which are on a specific list approved by the line ministry;

3. Imports being special-use goods directly used for education and training which are on a specific list approved by the line-managing ministry:

4. Goods allowed for export or import as gifts, donations or sample goods, including the following specific cases and norms of tax exemption consideration:

a/ For exports:

a.1/ Goods of domestic organizations and individuals allowed for export as gifts or donations for overseas organizations and individuals;

a.2/ Goods allowed for export of overseas organizations and individuals which are given as gifts or donations by domestic organizations and individuals during the former's working periods, tourist stays or visits to their relatives in Vietnam;

a.3/ Goods of domestic organizations and individuals allowed for export to participate in trade fairs or exhibitions or for advertisement, then to be used as gifts or donations for overseas organizations and individuals;

a.4/ Organizations and individuals sent by the State to work or study overseas or Vietnamese tourists on foreign tours may enjoy, apart from personal luggage quotas applicable to persons on exit, export duty -exempt quotas for goods they carry along for use as gifts or donations for foreign organizations and individuals.

a.5/ Sample goods sent by domestic organizations and individuals to overseas organizations and individuals;

Goods being gifts, donations or sample goods valued at up to VND 30 million, for organizations considered for export duty exemption.

Goods being gifts, donations or sample goods valued at up to VND 1 million, for individuals, or valued at more than VND 1 million with their total payable tax amount of less than VND 50,000 are exempt from export duty (exempt from procedures for export duty exemption consideration).

b/ For imports:

b.1/ Goods valued at up to VND 30 million which are given as gifts or donated by overseas organizations and individuals to Vietnamese organizations may be considered for tax exemption;

Vietnamese organizations are state agencies, political organizations, socio-political organiza­tions, social organizations, socio-professional organizations and people's armed forces units.

b.2/ Goods given as gifts or donated by overseas organizations and individuals to Vietnamese individuals, which are valued at up to VND 1 million or at more than VND 1 million but their total payable tax amount is less than VND 50,000, are exempt from tax (exempt from procedures for import duty exemption consideration).

For goods which are indicated as gifts for individuals but have actually been sent to organizations (with written certification of these organizations) and managed and used by these organizations, the tax level to be considered for exemption is that applicable to goods given as gifts or donated by overseas organizations and individuals to Vietnamese organizations.

b.3/ For goods permitted to be temporarily imported into Vietnam by overseas organizations and individuals to participate in trade fairs or exhibitions or to be used as sample goods or for advertisement but later used as gifts, donations or souvenirs for Vietnamese organizations and individuals instead of re-export, tax exemption will be considered for goods used as gifts or souvenirs for trade fair or exhibition visitors which are valued of less than VND 50.000 each included in an import lot valued at up to VND 10 million.

b.4/ For goods permitted to be imported into Vietnam by overseas organizations and individuals as prizes for sport, cultural or artistic competitions, tax exemption will be considered for goods used as prizes and valued at up to VND 2 million each (for individuals) or VND 30 million (for organizations) and included in an import lot with a total value not exceeding total of values of prizes in kind:

b.5/ Individuals on entry in Vietnam may, apart from personal luggage quotas, be exempt from tax for quantities of goods they carry along as gifts, donations or souvenirs which are valued at up to VND 1 million or at more than VND 1 million but their total payable tax amount is less than VND 50.000 (they are exempt from procedures for import duty exemption consideration);

b.6/ Goods in other cases specified in Clauses 1, 3, 4 and 18, Article 100 of this Circular subject to re-export which have not been re-exported but are used by foreign organizations and individuals as gifts or donations for Vietnamese organizations and individuals (if these goods are subject to conditional import, permission of a competent state agency is required) and valued at up to VND 30 million, for organizations, or up to VND 1 million, for individuals, may be considered for tax exemption. For goods as gifts or donations for individuals valued at up to VND 1 million or valued at more than VND 1 million with their total payable tax amount worth less than VND 50.000, procedures for import duty exemption consideration are not required.

b.7/ Sample goods sent by overseas organizations and individuals to Vietnamese organizations and individuals valued at up to the limit eligible for tax exemption consideration, which is VND 30 million, for organizations, or VND 1 million, for individuals, or valued at more than VND 1 million, for individuals, but the total payable tax amount is less than VND 50.000.

c/ For goods being gifts or donations with a value exceeding the above limit eligible for tax exemption consideration or tax exemption, tax shall be paid for the excessive quantity. In the following cases, tax exemption may be considered for the whole value of the goods lot:

c.1/ Recipients of gifts or donations which are non-business administrative agencies and mass organizations funded by the state budget and permitted by their managing agencies to receive these goods may be considered for tax exemption on a case-by-case basis. In these cases, recipients shall record an increase in their state budget-allocated assets, inclusive of taxes and values of gift or donation goods lots and manage and use these goods under current regulations on management of assets allocated by the state budget;

c.2/ Goods being gifts and donations for humanitarian, charity or scientific research purpose;

c.3/ Medicines sent by overseas Vietnamese to their relatives in Vietnam who are members of families with meritorious services to the revolution, war invalids, fallen heroes or helpless elderly people as certified by local administrations.

5. Goods imported for sale at duty-free shops under the Prime Minister's regulations and the Ministry of Finance's separate guidance.

Goods for sales promotion or trial use which are supplied free of charge by foreign parties to duty-free shops for sale together with other goods at these shops, are not liable to import duty. All goods for sales promotion or trial use are subject to customs supervision and management like imports for sale at duty-free shops.

6. Tax-exempt goods under treaties to which Vietnam is a contracting party.

Article 105. Dossiers for tax exemption consideration

A dossier for tax exemption consideration comprises:

1. One copy of a customs dossier made under the guidance in this Circular;

2. Other papers, depending on the following specific cases:

a/ An original written request for tax exemption consideration of the user of exports and imports (except for the case specified at Point b of this Clause), clearly indicating the type and value of goods, tax amount, reason for tax exemption and customs declaration. In case there are different types of goods in different customs declarations, these goods and customs declarations for tax exemption consideration shall be enumerated with a commitment to making accurate declaration, supplying proper documents and using goods for proper purpose.

b/ An original written request for tax exemption consideration of the Ministry of Defense or the Ministry of Public Security or a unit authorized by the Ministry of Defense or the Ministry of Public Security, and a specific list of quantities and types of imports approved by the Ministry of Defense or the Ministry of Public Security after reaching agreement with the Ministry of Finance right at the beginning of the year (the Ministry of Defense or the Ministry of Public Security shall register annual import plans with the Ministry of Finance no later than the end of March 31) and enclosed with 2 original conciliation-monitoring slips for goods imported for exclusive use in security and defense.

c/ One copy of an entrusted import contract (for entrusted import) or a bid-winning notice enclosed with the goods supply contract (for import through bidding), clearly indicating the payment price exclusive of import duty.

d/ An original decision approving a scientific research project and 2 copies of a list of goods to be imported for implementation of this project issued by a line ministry for goods imported for special use in scientific research, enclosed with the original for comparison (for multiple import, a conciliation-monitoring slip is required).

e/ Two originals of a decision approving an equipment investment project and a list of equipment to be imported under the project, issued by a line ministry for goods imported for special use in education and training (for multiple import, a conciliation-monitoring slip is required).

f/ One copy of a treaty to which Vietnam is a contracting party, for cases in which tax exemption consideration is requested under this treaty.

g/ For goods being gifts, donations or samples:

g.1/ One copy of a notice or decision or agreement on donation or presentation of goods: or a notice or agreement on sending of sample goods;

g.2/ An original written certification of the commune-level People's Committee in case relatives of an overseas Vietnamese are members of a family with meritorious services to the revolution, war invalids, fallen heroes or helpless elderly people and receive gifts or donations being medicines from this overseas Vietnamese:

g.3/ One copy of a letter of authorization to earn out customs procedures made by an organization or individual that is given gifts or donations or receives sample goods in case customs procedures for goods as gifts, donations or samples are carried out by an authorized person;

g.4/ One copy of a written permission of a competent state agency for non-re-export of temporarily imported goods for use as gifts or donations for Vietnamese organizations or individuals (in case permission is required): an invoice or ex-warehousing bill for those gifts or donations; and a written record of delivery and receipt of goods between the donor and donee in case goods are given as gifts or donations by a tax-exempt importer by mode of temporary import for re-export:

g.5/ A certification by a superior managing agency of the permission for receipt of tax-exempt goods, for goods being gifts or donations for non-­business administrative agencies or mass organizations funded by the state budget valued in excess of the limit eligible for tax exemption consideration.

h/ One copy of a certificate of eligibility for duty-free shop business, for goods imported for sale at duty-free shops.

i/ One copy of other documents related to the determination of tax amount considered for exemption.

j/ A list of documents in the dossier of request for tax exemption consideration.

Article 106. Procedures and order for tax exemption consideration

1. Submission and receipt of dossiers for tax exemption consideration

a/ Taxpayers shall determine by themselves tax amounts eligible for exemption in cases they are eligible for tax exemption consideration; and submit dossiers to customs offices competent to consider tax exemption. In case the Ministry of Finance is competent to consider tax exemption, taxpayers shall determine tax amounts eligible for exemption and submit dossiers of request for tax exemption consideration to the General Department of Customs.

b/ In case dossiers for tax exemption consideration are submitted directly to customs offices, customs officers shall receive dossiers and append seals for certification of receipt, record the time of receipt and number of documents included in dossiers.

c/ In case dossiers for tax exemption consideration are submitted by post, customs officers shall append seals showing dales of receipt and record them in their incoming-mail books.

d/ In cases dossiers for tax exemption consideration are submitted though computer networks, the receipt, examination and acceptance of these dossiers shall be conducted by customs offices through their electronic data processing systems.

2. Customs offices shall examine dossiers for tax exemption consideration submitted by taxpayers and handle them as follows:

a/ If these dossiers are incomplete, they shall notify such to taxpayers for dossier completion within 3 working days after the dossier receipt:

b/ They shall issue tax exemption decisions under regulations or notify taxpayers of reasons for their ineligibility for tax exemption consideration and payable tax amounts within 30 days after the receipt of dossiers, and handle violations (if any) under current regulations. In case physical inspection is required to have sufficient grounds for handling dossiers, that time limit may be extended to 60 days after the receipt of complete dossiers.

3. Based on tax exemption decisions, customs offices where customs declarations have been registered shall liquidate tax amounts considered for exemption and clearly indicate them in original customs declarations filed at their offices and those kept by taxpayers: "goods are considered for tax exemption under decision No…. dated ... issued by...."

Article 107. Competence to consider tax exemption

1. The Ministry of Finance shall consider tax exemption for:

a/ Goods being gifts or donations for non-­business administrative agencies or mass organizations vaiued in excess of the limit eligible for tax exemption:

b/ Goods being gifts or donations for humanitarian, charity or scientific research purpose.

2. The General Department of Customs shall consider tax exemption for:

a/ Goods imported for security, defense, scientific research or education and training purpose;

b/ Goods exported or imported under treaties.

3. District-level Customs Departments shall exempt taxes for goods valued at up to VND 1 million, for individuals, or goods valued at more than VND 1 million with their total payable tax amount valued at less than VND 50,000, as specified at Points b.2, b.5 and b.6, Clause 4, Article 104 of this Circular.

4. Provincial-level Customs Departments shall consider tax exemption for other cases.

Section 5. CASES ELIGIBLE AND PROCEDURES FOR TAX REDUCTION CONSIDERATION

Article 108. Cases eligible for tax reduction consideration

Exports and imports currently under customs supervision which are damaged or lost as assessed and certified by competent agencies or organizations may be considered for tax reduction corresponding to the rate of their actual damage.

Taxed values of goods eligible for tax reduction shall be determined under Point 8.c, Clause VIII. Part II of Circular No. 40/2008/TT-BTC.

Article 109. A dossier for tax reduction consideration comprises

1. One copy of a custom dossier made under the guidance in this Circular;

2. The taxpayer's original written request for tax reduction consideration, clearly indicating type, quantity and value of goods, tax amount and reason for tax reduction and customs declaration. In case there are different types of goods in different customs declarations, goods and customs declarations eligible for tax reduction shall be enumerated with a commitment to making accurate declaration and supplying proper documents in the dossier;

3. An assessment service provider's original assessment certificate of lost quantity or actual damage rate of exports or imports;

4. One copy of an insurance policy:

5. One copy of a contract/written agreement on payment of indemnity by the insurer;

6. A list of documents in the dossier of request for tax reduction consideration.

Article 110. Order and procedures for tax reduction consideration

Order and procedures for tax reduction consideration are the same as those for tax exemption consideration.

Article 111. Competence to consider tax reduction

Provincial-level Customs Departments where customs declarations are registered are competent to consider tax reduction.

Section 6. CASES ELIGIBLE AND PROCEDURES FOR TAX REFUND

Article 112. Cases eligible for tax refund consideration

The following cases may be considered for tax refund:

1. Imports for which import duty has been paid but which are still in warehouses or storing yards and currently subject to customs supervision and allowed to be re-exported;

2. Exports and imports for which export duty or import duty has been paid but have not yet been actually exported or imported;

3. Goods for which export duty or import duty has been paid but have been actually exported or imported in smaller quantities;

4. Goods imported for delivery or sale to foreign parties by Vietnam-based agents; goods imported for sale to foreign companies' vehicles or vessels on international routes through Vietnamese ports and Vietnamese vehicles or vessels on international routes under the Government's regulations;

5. Goods imported for production of exports for which import duty has been paid are eligible for import duty refund in proportion to actually exported products and shall be specifically determined as follows:

a/ Materials and supplies eligible for import duty refund, including:

a.1/ Imported materials and supplies (including also parts for assembly, semi-finished products and packaging materials) physically constituting export products;

a.2/ Materials and supplies directly used in export production but are not turned into or do not physically constitute these products, such as paper, chalk, drawing pen, marker pen, clothes pin, printing ink, adhesive brush, lithographic frame, eraser, polishing oil, etc;

a.3/ Finished products imported by enterprises for fitting on export products (contained in the same package with export products made from imported materials and supplies or from domestically purchased materials and supplies) to form complete; goods for export;

a.4/ Parts and spare parts imported for use as warranty items for export products;

a.5/ Sample goods imported for production of exports which are re-exported to foreign customers upon completion of contracts.

b/ Cases eligible for tax refund consideration include:

b.1/ Enterprises importing materials and supplies for export production; or organizations hiring processing at home (including hired processing at non-tariff zones) or overseas, or associated production of exports and receipt of products for subsequent export;

b.2/ Enterprises importing materials and supplies for production of goods for domestic sale but later finding export markets, putting these materials and supplies into production of exports, and having actually exported products (within 2 years from the date of registration of declarations of imported materials and supplies to the date of registration of export declaration of the last product using materials and supplies indicated in import declarations for which tax refund is requested):

b.3/ Enterprises importing materials and supplies (except for finished products) for performance of processing contracts (not supplied by foreign processes but imported by processing enterprises themselves for performance of processing contracts signed with foreign customers), when actually exporting products, may be considered for tax refund as for materials and supplies imported for production of exports;

b.4/ Enterprises importing materials and supplies for production of products, which are used for processing of exports under processing contracts with foreign parties;

b.5/ Enterprises importing materials and supplies for production of products to be sold to other enterprises for direct production or processing of exports may. after the actual export of enterprises producing or processing exports, enjoy import duty refund in proportion to quantities of imported materials and supplies used by other enterprises for production of actually exported products, if they fully satisfy the following conditions:

b.5.1/ Selling and purchasing enterprises pay value-added tax by the credit method; enterprises have made business registration and had tax identification numbers; and there are invoices for the sale and purchase of goods between the two enterprises:

b.5.2/ Payment for exports is made via banks under regulations of the State Bank of Vietnam;

b.5.3/ The date of import of materials and supplies (the date of registration of customs declaration of imports) to the date of actual export of products (the date of registration of customs declaration of exports) is within one year (three hundred and sixty five days).

b.6/ Enterprises importing materials and supplies for production of products to be sold to other enterprises for direct export in assemblies may be considered for tax refund in proportion to the ratio of exported products (part sets), if the conditions specified at Point b.5 of this Clause and the following conditions are fully satisfied:

b.6.1/ Products produced from materials and supplies imported by enterprises constitute a detail or part of an assembly;

b.6.2/ Enterprises purchase products for fitting with details or parts produced by themselves to make up export assemblies.

b.7/ Enterprises importing materials and supplies for production of products to be sold to other enterprises for direct export may. after the actual export of products by the latter, enjoy import duty refund in proportion to quantities of actually exported products if they full satisfy the conditions specified at Point b.5 of this Clause;

b.8/ Enterprises importing materials and supplies for production of goods to be sold to foreign traders but delivering these goods to other enterprises designated by foreign traders may enjoy import duty refund if the following conditions are fully satisfied:

b.8.1/ On-the-spot imported goods are further used for export production or processing under processing contracts with foreign parties;

b.8.2/ An on-the-spot export or import declaration must satisfy the following conditions:

- For exporting enterprises: The customs declaration must be fully filled in with certifications, signatures and seals of 4 parties including the exporting enterprise, importing enterprise and customs offices carrying out export procedures and import procedures;

- For importing enterprises: The customs declaration must be fully filled in with certifications, signatures and seals of 3 parties including the exporting enterprise, importing enterprise and customs office carrying out import procedures. The form of the declaration upon registration of on-the-spot import is that for export production or processing.

b.9/ Goods being materials and supplies imported for export production specified at Points b.1 thru b.7 of this Clause, which have been exported but not yet actually sold to foreign customers and are still stored in overseas warehouses of enterprises or consigned to overseas bonded warehouses or kept at overseas entrepot ports.

b. 10/ Goods being materials and supplies imported for export production specified at Points b.1 thru b.7 of this Clause, which have not been exported abroad but exported into non-tariff zones and are determined by customs offices which carry out inspection and supervision procedures as having been actually further exported abroad or used within non-tariff zones, may be refunded paid import duty amounts in proportion to quantities of goods actually used within non-tariff zones or further exported abroad.

c/ Norms of imported materials and supplies eligible for consideration for import duty refund or non-collection are norms of those actually used for production of actually exported products, including the portion of scraps and discarded products within the consumption norm recovered in the production of exports from imported materials and supplies.

c.1/ Procedures for registration of the norm of materials and supplies imported for export production and registration of exports comply with Article 33 of this Circular.

c.2/ In case different kinds of products are turned out from the same type of imported materials or supplies (for example, from wheat imported for production of wheat flour, wheat flour and wheat bran are obtained; or from condensate imported for oil refinery, petrol and diesel are obtained) but only one kind of product is exported, enterprises shall declare and pay taxes (if any) with customs offices for quantities of materials and supplies imported for production of unexported products.

To-be-refunded import duty amount shall be determined by the distribution method according to the following formula:

To-be-refunded import duty amount (in proportion to actually exported products)	=	Value of exported product	x	Total import duty amount of imported materials and supplies
		Total value of obtained products

In which:

- Value of exported products is the quantity of actually exported products multiplied (x) by the taxed value of exports;

- Total value of obtained products is the total value of exported products and sales of products (including also recovered scraps and discarded products) (exclusive of output value-added tax) for domestic sale.

In case an enterprise imports a type of materials or supplies for production but obtains two or more different kinds of products (for example, import of wheat for production of wheat flour, bran and husk), of which a kind is used for further production of exports while the other kind is for domestic sale (for example, wheat bran and husk obtained from this process are domestically sold while wheat flour is further used for production of instant noodles for export):

+ Upon calculation of the value of exported products and total value of obtained products, the portion of domestically purchased auxiliary materials (for example, flavors, spices and packaging materials) shall be excluded;

+ To exclude the portion of auxiliary materials in export products, enterprises shall elaborate their own norm of the auxiliary material portion in an export product and register it with customs offices carrying out import procedures and take responsibility for the accuracy and reliability of the registered norm. When doubtful of this norm, the agency considering tax refund may invite expert assessment by a specialized management agency or coordinate with the local tax office (which grants the tax identification number to the enterprise) in organizing an inspection at the enterprise to re­-determine the norm for use as a basis for consideration of tax refund for the enterprise.

c.3/ Domestically consumed scraps and discarded products shall be handled as follows:

- The portion of scraps and discarded products within the consumption norm recovered in the production of exports from imported materials and supplies is exempt from import duty In case these scraps and discarded products are still of commercial value, taxpayers that sell these scraps and discarded products on the market are also exempt from import duty but shall declare and pay other taxes such as value-added tax and enterprise income tax under regulations;

- The portion of materials and supplies not included in the norm guided at Points c. 1 and c.2 of this Clause is liable to import duty. The tax declaration and payment comply with Clause 3, Article 10 of this Circular.

d/ Materials and supplies imported for export production, which are actually exported within the tax payment time limit, are not liable to import duty for the quantity of materials and supplies used for production of the actually export products.

6. Goods temporarily imported for re-export; goods temporarily exported for re-import and goods imported under entrustment by foreign parties and subsequently re-exported (except for the case of tax exemption specified in Clause 1, Article 100 of this Circular) may be considered for import duty and export duty refund and exemption from import duty or export duty upon their re-import or re-export.

In case goods temporarily imported for re-export or temporarily exported for re-import are actually re-exported or re-imported within the tax payment time limit, import duty or export duty is not required to be paid in proportion to actually re-exported or re-imported goods quantities.

7. Exported goods which must be subsequently imported back into Vietnam may be considered for refund of paid export duty amounts and exemption from import duty.

a/ Conditions for being considered for refund of paid export duty amounts and exemption from import duty include:

a. 1/ Goods are actually imported back into Vietnam within 365 days from the date of actual exportation;

a.2/ Goods have not yet gone through production, processing, repair or use abroad;

a.3/ Goods imported back into Vietnam are required to go through customs procedures at places where export procedures therefore have been carried out.

For exported goods which must be imported back into Vietnam, if their dossiers are eligible for tax refund first and subject to inspection later but fail to satisfy the conditions specified at Points a.1 and a.3 of this Clause, customs offices shall conduct inspection first, refund export duty later and will not collect import duty under Clause 5, Article 127 of this Circular.

b/ In case exports being goods processed by Vietnamese enterprises for foreign parties for which import duty has been exempted for materials and supplies must be imported back into Vietnam for repair or reprocessing and subsequent export back to foreign parties, customs offices which manage and settle processing contracts shall continue monitoring and managing until reprocessed goods are fully exported and liquidate customs declarations of goods imported for reprocessing. If reprocessed goods are not exported, they shall handle them as follows:

b. 1/ If these goods are domestically consumed, tax declaration and payment shall be made as for processed products exported or imported on the spot:

b.2/ If these goods must be destroyed or are allowed to be destroyed in Vietnam and they are destroyed under customs supervision, they are exempt from tax like destroyed scraps and discarded processed products.

c/ Exports being goods produced from imported materials and supplies; goods traded by the mode of temporary import for re-export (eligible for tax refund upon exportation) which must be imported back into Vietnam but have not been reprocessed or re-exported, shall be handled as follows:

c.1/ Enterprises will not be considered for tax refund (or for tax exemption if they have not yet paid tax) for portions of materials imported for production of exports or re-exported goods which must be imported back into Vietnam:

c.2/ In case customs offices have refunded or issued decisions on tax exemption for portions of materials imported for production of exports or re­-exported goods which must be imported back into Vietnam, taxpayers shall repay refunded tax amounts or pay exempted tax amounts.

d/ In case the time limit for export duty payment for exports which must be imported back into Vietnam has not yet expired, export duty payment is not required for quantities of goods actually imported back into Vietnam.

8. Imports which must be re-exported for return to foreign goods owners or to third countries or into non-tariff zones (for use in these zones or export abroad) may be considered for refund of import duty already paid in proportion to quantities of actually re-exported goods and for which export duty payment is not required.

a/ Conditions for being considered for refund of paid import duty amounts and export duty exemption:

a. 1/ Goods are re-exported abroad or into non-tariff zones within 365 days from the date of actual importation;

a.2/ Goods which have not yet gone through production, processing, repair or use in Vietnam;

a.3/ Goods for which procedures for their export back to countries of origin are carried out at district-level Customs Departments which have carried out import procedures for these goods;

a.4/ In case imports do not match with those indicated in contracts, there must be written notices of results of goods assessment by agencies or organizations with the function or competence to assess exports and imports. For quantities of goods sent by foreign parties in substitution for those already exported back to countries of origin, enterprises shall make import declaration and payment under regulations;

a.5/ Goods already exported into non-tariff zones which are determined by customs offices carrying out procedures for goods inspection and supervision, as having actually been used in non-tariff zones or further exported abroad.

For imported goods which must be re-exported for return to foreign owners or to third countries or into non-tariff zones, if their dossiers are eligible for tax refund first and subject to inspection later but fail to satisfy the conditions specified at Points a.1 and a.3 of this Clause, customs offices shall conduct inspection first, refund export duty later and will not collect import duty under Clause 5, Article 127 of this Circular.

b/ If the import duty payment time limit for imports which must be re-exported has not expired, import duty payment is not required for actually re-exported goods quantities.

9. For machinery, equipment, tools and means of transport temporarily imported for re-export by organizations and individuals with permission (including those borrowed for re-export) for implementation of investment projects, construc­tion and installation of works or production, import duty shall be declared and paid under regulations upon their importation and will be refunded upon their re-exportation out of Vietnam.

To-be-refunded import duty amounts shall be determined based on the remaining useful value of these machinery, equipment, tools and means of transport upon their re-exportation calculated according to the duration of their use and retention in Vietnam (from the date of registration of temporary import declaration to the date of registration of re-export declaration). In case these goods are no longer useful in reality, tax will not be refunded, specifically as follows:

a/ In case these goods are brand-new (unused) when being imported:

Duration of use and retention in Vietnam	To-be-refunded import duty amount
6 months or less	90% of paid import duty amount
Between over 6 months and 1 year	80% of paid import duty amount
Between over 1 year and 2 years	70% of paid import duty amount
Between over 2 years and 3 years	60% of paid import duty amount
Between over 3 years and 5 years	50% of paid import duty amount
Between over 5 years and 7 years	40% of paid import duty amount
Between over 7 year and 9 years	30% of paid import duty amount
Between over 9 years and 10 years	15% of paid import duty amount
Over 10 years	Non-refundable

b/ In case these goods are second-hand when being imported:

Duration of use and retention in Vietnam	To-be-refunded import duty amount
6 months or less	60% of paid import duty amount
Between over 6 months and 1 year	50% of paid import duty amount
Between over 1 year and 2 years	40% of paid import duty amount
Between over 2 years and 3 years	35% of paid import duty amount
Between over 3 years and 5 years	30% of paid import duty amount
Over 5 years	Non-refundable

In case the duration of temporary import expires but importers of machinery, equipment, tools and means of transport fail to re-export them and are permitted by the Ministry of Industry and Trade (or another competent state agency) to transfer them to other entities in Vietnam for further management and use, the transferred goods are not regarded as exports and are ineligible for import duty refund while recipients or purchasers of these goods are not obliged to pay import duty. When these goods are actually re-exported out of Vietnam, initial importers may enjoy import duty refund under this Clause.

10. For exports or imports sent by overseas organizations and individuals to domestic organizations and individuals through postal services or international express delivery services and vice versa, with service providers having paid lax therefor but failing to deliver them to indicated recipients and obliged to re-export or re-import or have these goods confiscated and destroyed under law, paid tax amounts will be refunded under Joint Circular No. 01/2004/TTLT-BBCVT-BTC of May 25, 2004, of the Ministry of Post and Telematics and the Ministry of Finance, guiding responsibilities for and coordination in customs inspection and supervision of mails, postal parcels and items for export or import sent through postal services or mail delivery services.

11. For goods being material evidence of violations of customs regulations committed by organizations and individuals, currently under customs supervision or management and confiscated under decisions of competent state agencies, paid export duty or import duty amounts will be refunded.

12. Exports and imports for which tax has been paid but are later eligible for tax exemption or tax refund under decisions of competent suite agencies may enjoy tax refund.

13. For exports and imports still under customs supervision or management, if their customs declarations have been registered but they are detected by customs offices through customs clearance inspection to be involved in violations and have been forcibly destroyed, decisions on exemption from export duty or import duty (if any) shall be issued. The sanctioning of acts of exporting or importing goods in contravention of regulations and forcible destruction of these goods comply with current laws. Customs offices where customs declarations of exports or imports are registered shall keep dossiers of destroyed goods and coordinate with functional agencies in supervising the destruction in accordance with current laws.

14. For cases eligible for export duty or import duty refund as guided in this Article in which to be-refunded tax amounts are less than VND 50,000 upon each time of completion of tax refund procedures for each tax refund dossier, customs offices will not refund this tax amount.

Article 113. Tax refund dossiers for imports allowed for re-export for which import tax has been paid but which are still kept in warehouses or storing yards at border gates and currently under customs supervision

1. A written request for refund of the paid tax amount, clearly indicating type of goods, tax amount, reason for tax refund, and the customs declaration. In case there are different types of goods in different customs declarations, customs declarations involved in tax refund request shall be enumerated: to submit one original;

2. The customs declaration of taxed imports: to submit one original;

3. The customs declaration of exports for which customs procedures have been carried out, with the customs office's certification of actual export and certification that exports have been indicated in the import customs declaration and are still kept in warehouses or storing yards at a border gate and under customs supervision or have been actually exported: to submit one original;

4. A tax payment receipt in case tax has been paid: to submit one copy and produce the original for comparison;

5. A list of documents included in the tax refund dossier.

Article 114. Tax refund dossiers for exports or imports for which export duty or import duty has been paid but which are not exported or imported

1. The papers guided in Clauses 1, 4 and 5, Article 113 of this Circular;

2. The customs declaration of exports with the customs office's certification that goods have not been actually exported, for cases of non-exportation: to submit one original;

3. The customs declaration of imports with the customs office's certification that goods have not been actually imported, for cases of non-­importation: to submit one original.

Article 115. Tax refund dossiers for goods for which export duty or import duty has been paid but which have been actually exported or imported in smaller quantities

1. The papers guided in Clauses 1, 4 and 5. Article 113 of this Circular;

2. The customs declaration of exports for which customs procedures have been carried out and results of goods inspection by the customs office obtained, clearly indicating actually exported quantities and enclosed with the customs office's certification of actual export: to submit one original:

3. The customs declaration of imports for which customs procedures have been carried out and results of goods inspection by the customs office obtained, clearly indicating actually imported quantities and enclosed with the customs office's certification of actual import: to submit one original;

4. The commercial invoice under the goods trading contract: to submit one copy;

5. Other papers showing that goods have been actually imported or exported in smaller quantities.

Article 116. Tax refund dossiers for goods imported for delivery or sale for foreign parties by their agents in Vietnam; goods imported for sale to means of transport of foreign companies operating on international routes through Vietnamese ports and Vietnamese means of transport operating on international routes under the Government's regulations

1. For general cases:

a/ The papers guided in Clauses 1. 4 and 5, Article 113 of this Circular;

b/ The Ministry of Industry and Trade's written import permission (for goods items subject to import permits of the Ministry of Industry and Trade): to produce one original for comparison;

c/ The customs declaration of imports for which customs procedures have been carried out: to submit one original;

d/ Goods sale invoice: to submit one copy of each invoice;

e/ The customs declaration of exports for which customs procedures have been carried out with the customs office's certification of actual export: to submit one original;

f/ The goods delivery or sale agency contract and goods supply contract or agreement: to submit one copy of each contract;

g/ The voucher of payment for exports: to submit one copy and produce the original for comparison. For goods lots for which installment payment is made, one original of the list of payment vouchers is additionally required.

2. For imports being drinks catered on international flights:

a/ The papers guided at Points a, b and c, Clause 1 of this Article;

b/ The slip of drink delivery and receipt for an international flight with the airport border-gate customs office's certification: to submit one copy.

3. For goods imported by licensed major enterprises (e.g.. petrol and oil) and allowed to be sold to seagoing ship chandlers for subsequent sale to foreign seagoing ships and for which import duty has been paid, import duty will be refunded after these goods are sold to foreign seagoing ships:

a/ The papers guided in Clause 1 of this Article;

b/ The contract and invoice on sale of goods to the seagoing ship chandler: to submit one copy;

c/ The seagoing ship chandler's certification of quantity and value of goods purchased from the licensed major importer and actually supplied for foreign seagoing ships, enclosed with a list of payment vouchers of foreign shipping companies: to submit one original. The chandler shall be held responsible before law for its certification.

Article 117. Liquidation and tax refund dossiers for goods imported for production of goods for export abroad or into non-tariff zones, which have been actually used in these zones or exported abroad and for which import duty has been paid

1. In case enterprises import materials and supplies for export production or hire processing at home (including processing in non-tariff zones) or abroad; or enterprises associate with one another in producing exports and receiving products for export:

a/ A general dossier comprises:

a.1/ A written request for liquidation, refund of or exemption from import duty for materials and supplies imported for production of exports, clearly indicating the quantity and value of imported materials and supplies used for production of exports; paid import duty amount; quantity of exports; import duty amount requested for refund or exemption. In case there are different types of goods in different customs declarations, customs declarations involved in tax refund request shall be enumerated: to submit one original;

a.2/ The customs declaration of imported materials and supplies for which customs procedures have been carried out: to submit one original;

a.3/ Tax payment receipt, if tax has been paid: to submit one copy and to produce the original for comparison;

a.4/ The customs declaration of exports for which customs procedures have been carried out. with the customs office's certification of actual export; and the export contract: to submit one original each;

a.5/ The import contract, entrusted export or import contract in case of entrusted export or import: The customs office shall submit the copy it keeps;

a.6/ The voucher of payment for exports: to submit one copy and produce the original for comparison. For a goods lot for which payment is made in installments, one original of the list of via-bank payment vouchers is required:

a.7/ The contract on associated production of exports, for case of associated production of exports: to submit one copy:

a.8/ The registration of norms: The customs office shall submit the copy it keeps;

a.9/ A list of declarations of exports to be liquidated (made according to form No. 17/HSTK-SXXX provided in Appendix VI to this Circular): to submit one original;

a. 10/ A graphic report on warehoused, ex-warehoused and in-stock imported materials and supplies (made according to form No. 18/HSTK-SXXX provided in Appendix VI to this Circular): to submit one original:

a.11/ A report on taxation of imported materials and supplies (made according to form No. 19/HSTK-SXXX provided in Appendix VI to this Circular);

a.12/ A list of documents included in the tax refund request dossier.

b/ In addition to papers specified at Point a of this Clause, a dossier for goods imported for production of exports which are not used directly in the production but exported into non-tariff zones or exported abroad for processing for subsequent receipt of processed products for further production and/or export must additionally contain the following:

b.1/ The customs declaration of exports to be used as materials and supplies for processing for which customs procedures have been carried out, with the customs office's certification of actual export: one original;

b.2/ The customs declaration of imports being products from a non-tariff zone or a foreign country for which customs procedures have been carried out: to submit one original:

b.3/ The tax payment receipt for imported processed products, in case tax has been paid and is requested to be refunded: to submit one copy and produce the original for comparison;

b.4/ The processing contract with an enterprise in a non-tariff zone or a foreign party: to submit one copy.

2. In case an enterprise imports materials and supplies for production of goods for domestic sale but later finds an export market and puts these materials and supplies into export production, then actually exports its products abroad within 2 years from the date of registration of the customs declaration of imported materials and supplies: A dossier for liquidation, tax refund or exemption will be similar to that guided in Clause 1 of this Article.

3. For materials and supplies (except for finished products) imported for performance of processing contracts by processing enterprises themselves and not supplied by foreign processes, a dossier comprises:

a/ A written request for liquidation, refund of or exemption from import duty for materials and supplies imported for processing of exports, specifically indicating items, quantities and values of imported materials and supplies; paid import duty amount: quantity of exported products: import duty amount requested for refund or exemption. In case there are different types of goods in different customs declarations, customs declarations involved in tax refund request shall be enumerated: to submit one original;

b/ The customs declaration of processed exports for which customs procedures have been carried out. with the customs offices certification of actual export: to submit one original;

c/ The processing contract signed with the foreign processes, clearly indicating the list and quantities of materials and supplies supplied by the processing enterprise: one copy;

d/ The papers guided at Points a.2, a.3, a.5, a.6, a.8, a.9, a.l0, a.11, and a.12, Clause 1 of this Article.

4. In case enterprises import materials and supplies for production of products which are used for processing of exports under processing contracts with foreign parties:

A dossier will be the same as that guided in Clause 1 of this Article, particularly:

a/ The export contract is replaced with the processing contract signed with the foreign processee. The contract on purchase of products used for processing and the processing contract with the foreign processee may be consolidated in a sole contract (one copy);

b/ The table of consumption norms of imported materials and supplies for production of products to be used in processing and consumption norms of materials for production of exports under the signed processing contract (the customs office shall submit the copy it keeps);

c/ The graphic declaration of actual quantities of products produced by the enterprise and used for processing: to submit one original.

5. In case enterprises which import materials and supplies for production of products to be sold to other enterprises for direct production or processing of exports and these exports have been actually exported, a dossier comprises:

a/ A written request for liquidation, refund of or exemption from import duty, specifically indicating quantities and values of imported materials and supplies used in production of products to be sold to other enterprises for direct production or processing of exports; quantity of sold products; quantity of exported products; paid import duty amount; import duty amount requested for refund or exemption. In case there are different types of goods in different customs declarations, customs declarations involved in tax refund request shall be enumerated: to submit one original;

b/ The customs declaration of exports with the customs office's certification of actual export; the export contract: to submit one original each;

c/ Goods sale invoices between two enterprises: to submit one copy; the list of goods sale invoices: one original;

d/ The economic contract on goods trading between the importing enterprise and the producer or processor of exports, clearly indicating goods used for production or processing of exports; the voucher of payment for purchased goods: to submit one copy each;

e/ The processing contract or export contract between the producer or processor of exports with the foreign customer: to submit one copy;

f/ The exporting enterprise's graphic declaration of actual quantity and norm of products purchased for direct production of an export product unit;

g/ The import contract signed between the on-spot importing enterprise and the foreign trader;

h/ The papers guided at Points a.2, a.3, a.5, a.6, a.8, a.9, a.10, a.11 and a.12, Clause 1 of this Article.

6. In case enterprises import materials and supplies for production of products to be sold to other enterprises for direct export and the purchasing enterprises have exported these products abroad, a dossier comprises:

a/ A written request for liquidation, refund of or exemption from import duty, specifically indicating quantities and values of imported materials and supplies; paid import duty amount; quantity of products sold to the exporting enterprise; quantity of exported products; import duty amount requested for refund or exemption. In case there are different types of goods in different customs declarations, customs declarations involved in tax refund request shall be enumerated (one original);

b/ The trading contract; the seller's invoice for sale of products to the exporting enterprise: to submit one copy;

c/ The papers guided at Points a.2, a.3, a.4, a.5, a.6, a.8, a.9, a.10, a.11 and a.12, Clause 1 of this Article.

7. In case enterprises import materials and supplies for production of goods to be sold to foreign traders but these goods are delivered to other Vietnam-based enterprises as designated by foreign traders for use as materials for further production or processing of exports, a dossier comprises:

a/ A written request for liquidation, refund of or exemption from import duty, specifically indicating quantities and values of imported materials and supplies used for production ofgoods to be sold to foreign customers, which match types and quantities of export items indicated in customs declarations of on-the-spot exports, and containing the following details: number of customs declarations of imports; items, quantities and values of imported materials and supplies; quantity of exported products; paid import duty amount; and import duty amount requested for refund or exemption. In case there are different types of goods in different customs declarations, customs declarations involved in tax refund request shall be enumerated: to submit one original;

b/ The added-value invoice made by the exporting enterprise (the original to be handed to the customer): to submit one copy;

c/ The declaration of on-the-spot exports and imports for which customs procedures have been carried out: to submit one original;

This declaration is valid for liquidation, consideration of tax refund or exemption only when the on-the-spot importing enterprise registers it for further production or processing for export abroad.

d/ The goods trading contract with designated delivery of goods in Vietnam (for the exporting enterprise), or the goods trading contract or processing contract with designated receipt of goods in Vietnam (for the importing enterprise): to submit one copy;

e/ The papers guided at Points a.2, a.3, a.5, a.6, a.8, a.9, a.10, a.11 and a.12. Clause 1 of this Article.

8. For enterprises which import materials and supplies for production of exports which have been exported abroad but still retained in these enterprises' overseas warehouses or consigned into overseas bonded warehouses or entrepot ports, a dossier comprises:

a/ The papers specified in Clause 1 of this Article:

b/The declaration of goods exported abroad and customs declaration of imports issued by the importing country's customs office, showing the importer's name being the overseas warehouse of the enterprises or the overseas bonded warehouse or entrepot port, into which goods are consigned: one copy and the original for comparison;

c/ In addition to above papers, a dossier must also have:

c.1/ The contract of consignment of goods into an overseas bonded warehouse, for goods being consigned into overseas bonded warehouses: one copy and the original for comparison;

c.2/ The goods ex-warehousing bill or voucher showing the transport mode of transit: one copy and the original for comparison;

9. For goods being materials and supplies imported for production of goods to be exported into non-tariff zones, apart from the papers guided in Clauses 1, 2, 3, 4, 5 and 6 of this Article, customs declarants or taxpayers shall additionally submit the following papers:

a/ The declaration of products exported abroad by enterprises in non-tariff zones which use products produced from imported materials and supplies of enterprises requesting tax refund: one copy certified as true copy;

b/ The table summing up product quantities actually used in non-tariff zones and quantities of goods actually further exported abroad by enterprises in non-tariff 7.oues as certified managing customs offices or results of liquidation guided in Clause 10, Article 44 and Article 45 of this Circular: one copy certified as true copy;

c/ Production norms of products for export and use in non-tariff zones by enterprises in these zones with certification by customs offices managing these enterprises.

Article 118. Dossiers for liquidation and tax refund for goods temporarily imported for re­-export by the business mode of temporary import for re-export; goods temporarily exported for re­-import and goods imported under entrustment by foreign parties and subsequently re-exported (except for goods temporarily imported for re-­export or temporarily exported for re-import for participation in trade fairs, exhibitions, product display; professional machinery, equipment and tools temporarily imported for re-export or temporarily exported for re-import for conferences, seminars, scientific research, sport tournaments, cultural and artistic performances, medical examination and treatment, which are eligible for tax exemption)

1. A written request for refund of paid tax or tax exemption, clearly indicating the type of goods, tax amount, reason for liquidation, tax refund or exemption, serial number of the customs declaration. In case there are different types of goods in different customs declarations, customs declarations involved in the tax refund request shall be enumerated: to submit one original;

2. The goods trading contract signed with the seller and the purchaser, or the entrusted import contract signed with the foreign party: to submit one copy;

3. The customs declaration of imports for which customs procedures have been carried out: to submit one original;

4. The customs declaration of exports for which customs procedures have been carried out with the customs office's certification of actual export: to submit one original:

5. The papers guided at Point a.3, a.5, a.6 and a.12, Clause 1, Article 117 of this Circular.

Article 119. Tax refund dossiers for goods already exported which must be imported back into Vietnam

1. A written request for consideration of tax refund and exemption, clearly indicating the tax amount, reason for the request, the customs declaration, guaranty that goods have not yet gone through overseas production, processing, repair or use. In case there are different types of goods in different customs declarations, customs declarations involved in the tax refund request shall be enumerated: to submit one original;

2. A notice from or an agreement with the foreign customer on receipt back of goods, clearly stating reason, quantity and type of returned goods, for goods being returned by customers: to submit one copy. In case taxpayers discover by themselves that goods are faulty and import them back into Vietnam, they are not required to make this document but shall clearly state the reason for the import.

3. The customs declaration of exports for which customs procedures have been carried out, with certification by the customs office and the set of documents of exports: to produce the original for comparison (particularly for the customs declaration, to submit one original);

4. The customs declaration of goods imported back into Vietnam, clearly indicating the quantity of goods previously exported with an export dossier and results of specific customs inspection of goods, certifying that goods imported back into Vietnam are those previously exported by the enterprise: to submit one original;

For previously exported goods which have been exempt from physical inspection, the customs office shall compare results of inspection of goods actually imported back into Vietnam with the dossier of the export lot for certification that goods imported back into Vietnam are truly those previously exported;

5. The papers guided at Points a.3, a.5, a.6 and a.12. Clause 1, Article 117 of this Circular (except for cases in which payment has not yet been made and vouchers of payment for exports are not required).

6. Other papers evidencing the reason for tax refund or exemption.

Article 120. Tax refund dossiers for goods already imported which must be re-exported back to their foreign owners or to a third country or into non-tariff zones

1. A written request for consideration of tax refund or exemption, clearly indicating the tax amount, reason and customs declaration (clearly indicating the quantity, type and value of to-be-re-exported goods). In case there are different types of goods in different customs declarations, these declarations shall be enumerated: to submit one original;

2. A written agreement on return of goods to the foreign party (for cases of return of goods to foreign parties) or export contract (for cases of export to a third country or re-export into non-tariff zones); clearly indicating reason, quantity, quality, type and origin of goods: to submit one copy;

3. The customs declaration of exports, clearly indicating results of goods inspection and the customs office's certification of actual export, stating the quantity, quality and type of exports and the import dossier set under which these goods are exported and enclosed document set of the export lot: to produce the original for comparison (particularly for the customs declaration, one original is required);

For previously imported goods which have been exempt from physical inspection, the customs office shall compare results of inspection of goods actually exported with the dossier of the import lot for certification that re-exported goods are truly those previously imported.

4. The invoice-cum-ex-warehousing bill: to submit one copy;

5. The papers guided at Points a.3, a.5, a.6 and a. 12, Clause 1, Article 117 of this Circular. If payment has not yet been made, vouchers of payment for exports are not required.

6. For goods already imported into Vietnam which must be re-exported into non-tariff zones, apart from above papers, the following are also required:

a/ Results of liquidation as guided in Clause 10, Article 44 of this Circular: to submit one copy and produce the original for comparison:

b/ The declaration of products exported abroad by the enterprise in a non-tariff zone: one copy certified as true copy by the export processing enterprise;

c/ The table summing up the quantity of products actually used in a non-tariff zone and the quantity of goods actually further exported abroad by the enterprise in the non-tariff zone as certified by the managing customs office;

d/ Production norms of products for export and use in non-tariff zones by enterprises in these zones with certification by customs offices managing these enterprises (for cases enterprises in non-tariff zones put products purchased from domestic enterprises into further production, export or use in these zones).

7. Papers evidencing the reason for tax refund or exemption.

Article 121. Tax refund dossiers for machinery, equipment, tools and means of transport of organizations and individuals permitted for temporary import for re-export (including those borrowed for re-export) for implementation of investment projects, construction and installation of works, or production

1. A written request for consideration of tax refund or exemption, clearly indicating type of goods, tax amount and reason for tax refund, and the customs declaration. In case there are different types of goods in different customs declarations, customs declarations involved in the tax refund request shall be enumerated: to submit one original;

2. The contract (or written agreement) on import or borrowing of machinery, equipment, tools and means of transport: to submit one copy;

3. The import permit for imports required of such permit: to submit one copy;

4. The customs declaration of exports and imports with the customs office's certification of quantity and type of goods actually imported and actually re-exported and the enclosed document set of exports and imports: to produce the original for comparison (particularly for the customs declaration, to submit one original);

5. The papers guided at Point a.3, a.5 and a.12, Article 117 of this Circular.

Article 122. Tax refund dossiers for temporarily imported machinery, equipment, tools and means of transport which must be re-exported upon the expiration of the temporary import duration but have not yet been re-exported and are permitted by competent state agencies to be transferred to other entities in Vietnam for further management and use, then actually exported out of Vietnam by transferees or purchasers

In addition to the papers guided in Article 121 of this Circular, the following are required:

1. A written permission of the Ministry of Industry and Trade (or a competent state agency) for transfer and receipt of temporarily imported machinery, equipment, tools and means of transport (in case such permission is required): to submit one original;

2. The trading contract or the written record of handover of machinery, equipment, tools and means of transport between the two parties: to submit one copy;

3. The invoice-cum-ex-warehousing bill or sale invoice handed by the importer to the purchaser or transferee: to submit one copy.

Article 123. Tax refund dossiers for exports and imports sent by overseas organizations and individuals to domestic organizations and individuals through postal or international express delivery services and vice versa; service providers that have paid tax but failed to deliver goods to recipients and have to re-export or re-­import or have these goods confiscated and destroyed under law

1. A written request for consideration of refund of paid tax, clearly indicating the type of goods, tax amount, reason for tax refund, and the customs declaration. In case there are different types of goods in different customs declarations, customs declarations involved in the tax refund request shall be enumerated: to submit one original;

2. The trading contract or the written record of handover of machinery, equipment, tools and means of transport between the two parties: to submit one copy;

3. The invoice-cum-ex-warehousing bill or sale invoice handed by the importer to the purchaser or transferee: to submit one copy.

Article 123. Tax refund dossiers for exports and imports sent by overseas organizations and individuals to domestic organizations and individuals through postal or international express delivery services and vice versa; service providers that have paid tax but failed to deliver goods to recipients and have to re-export or re­-import or have these goods confiscated and destroyed under law

1. A written request for consideration of refund of paid tax. clearly indicating the type of goods, tax amount, reason for tax refund, and the customs declaration. In case there are different types of goods in different customs declarations, customs declarations involved in the tax refund request shall be enumerated: to submit one original;

2. Dossiers and documents related to exports and imports: to submit one copy each;

3. The customs declaration of exports and imports with the customs office's certification of the quantity, type and value of confiscated and destroyed goods: to submit one original:

4. Tax payment receipt: to submit one copy and produce the original for comparison;

5. A list of documents included in tax refund request dossiers.

Article 124. Tax refund dossiers for exports or imports currently under customs supervision and management, for which export duty or import duty and other taxes (if any) have been paid, and which have been confiscated and remitted into the state budget for violations of customs regulations under decisions of competent state agencies

1. A written request for tax refund consideration, clearly indicating the type of goods, tax amount, reason for the tax refund request, and the customs declaration. In case there are different types of goods in different customs declarations, customs declarations involved in the tax refund request shall be enumerated: to submit one original;

2. The customs declaration of exports or imports: to submit one original;

3. The goods purchase and sale invoice: to submit one copy;

4. The written record of violation: to submit one copy:

5. The decision of a competent state agency on confiscation and remittance into the state budget: to submit one copy;

6. The tax payment receipt: to submit one copy and produce one original for comparison;

7. A list of documents included in the tax refund request dossier.

Article 125. Tax refund dossiers for exports or imports for which tax has been paid but which are later eligible for tax exemption under decisions of competent state agencies

1. A competent state agency's decision on tax exemption: to submit one copy;

2. The papers guided in Clauses 1, 2, 3, 6 and 7, Article 124 of this Circular.

Article 126. Tax exemption dossiers

For goods eligible for tax refund and for which the tax payment time limit has not expired and tax has not been paid, and which have been actually exported or imported, a tax exemption dossier for each case is the same as a tax refund dossier exclusive of the tax payment receipt.

Article 127. Procedures for submission, receipt and handling of dossiers for liquidation, tax refund consideration and tax exemption

1. The submission, receipt and handling of dossiers for liquidation, tax refund consideration and tax exemption comply with Article 59 of the Law on Tax Administration.

2. Dossiers for liquidation, tax refund consideration and tax exemption are divided into two types: dossiers subject to inspection first and eligible for tax refund later and dossiers eligible for tax refund first and subject to inspection later.

3. Dossiers subject to inspection first and eligible for tax refund later shall be made by taxpayers in any of the following cases:

a/ Tax refund or tax exemption is requested under treaties to which the Socialist Republic of Vietnam is a contracting party;

b/ Taxpayers request first tax refund or tax exemption by district-level Customs Departments where they file their requests;

c/ Taxpayers commit tax evasion or tax fraud within two years prior to the time of tax refund request;

d/ Dossiers of request for tax refund or exemption or cases not making via bank payment under regulations;

Via-bank payment vouchers comply with the guidance in Appendix I to this Circular.

e/ Enterprises are undergoing procedures for merger, consolidation, split-up, dissolution, bankruptcy, ownership transformation, operation termination; assignment, sale, contracting or lease of state enterprises;

f/ The time limit notified by customs offices expires but taxpayers fail to explain information and documents or to supplement tax refund or tax exemption dossiers as requested;

g/ Import duty has been declared and paid for goods at ordinary or preferential import duty rates and is now requested to be re-calculated at preferential or particularly preferential import duty rates and the tax difference will be refunded: imports are automobiles, parts and spare parts thereof: motorcycles (motorbikes), parts and spare parts thereof; petrol, oil, steel and iron; imports specified in Articles 8 and 10 of Decree No. 12/ 2006/ND-CP; and other imports subject to state management under law:

h/ Export duty or import duty refund dossiers for goods already exported which must be imported back into Vietnam or goods imported which must be re-exported for return to their foreign owners or export to a third country or re-­export into non-tariff zones, for which customs procedures have been carried out at places other than places for carrying out initial export or import procedures.

4. Dossiers eligible for tax refund first and subject to inspection later shall be made by taxpayers other than those subject to inspection first and eligible for tax refund later specified in Clause 3 of this Article.

5. For dossiers subject to liquidation or inspection first and eligible for tax refund or tax exemption, customs offices shall perform the following jobs:

a/ Preliminarily examining dossiers and their consistency and validity;

b/ Examining accounting books and documents, warehousing and ex-warehousing bills, vouchers of payment for goods; accounting activities conducted by concerned units; consumption nonns of materials and supplies; actual inspection of production and business activities of concerned units;

c/ Inspecting, verifying and comparing business transactions with other concerned organizations and individuals if complicated cases are detected through inspection which need further inspection;

d/ If taxpayers are determined, through inspection, to be ineligible for tax refund or tax exemption, customs offices shall notify these taxpayers of reason(s) for their ineligibility;

e/ If taxpayers are determined, through inspection, to be eligible for tax refund or tax exemption and their declarations are accurate, customs offices shall issue decisions on tax refund or tax exemption according to taxpayers* declarations within 60 days after receiving complete tax refund or tax exemption dossiers.

6. For dossiers eligible for tax refund or tax exemption first and subject to liquidation and inspection later, customs offices shall preliminarily examine dossiers and their consistency and legality, and handle them as follows:

a/ If taxpayers are eligible for tax refund or tax exemption and their declarations are accurate, they shall conduct liquidation and issue tax refund or tax exemption decisions according to these taxpayers' declarations within 15 days after receiving complete tax refund dossiers;

b/ If taxpayers are determined to be ineligible for tax refund or tax exemption, customs offices shall base themselves on relevant legal documents to notify these taxpayers of reason(s) for their ineligibility within 15 days after receiving tax refund dossiers;

c/ If they have grounds to believe that taxpayers' declarations are inaccurate or bases for tax refund are insufficient, they shall notify taxpayers of the fact that their dossiers are now subject to inspection first and eligible for liquidation, tax refund or tax exemption later within 15 days after receiving tax refund dossiers;

d/ In case via-bank payment vouchers are required but taxpayers fail to produce these vouchers upon submitting dossiers for liquidation or tax refund:

d.1/ Customs offices shall coordinate with tax offices managing taxpayers in checking accounting books and documents, warehousing and ex-warehousing bills and warehouse cards. When necessary, they shall inspect, verify and compare business transactions of taxpayers with concerned organizations and individuals;

d.2/ The inspection shall be completed within 15 days after receiving dossiers. If the inspection shows that goods have been actually exported and all relevant documents are valid, customs offices shall make liquidation or refund tax for enterprises.

d.3/ The tax payment time limit and measures to coerce tax payment for cases in which tax liquidation or tax refund dossiers have been submitted to customs offices but still lack via-bank payment vouchers apply as follows:

- Within the effective duration of the Government's Resolution No. 30/2008/ND-CP of December 11, 2008, on urgent measures to curb the economic decline, maintain the economic growth and assure the social welfare. Appendix III to this Circular must be complied with;

- When the Government's Resolution No. 30/ 2008/ND-CP of December 11, 2008, on urgent measures to curb the economic decline, maintain the economic growth and assure the social welfare ceases to be effective. Articles 42 and 93 of the Law on Tax Administration and Decree No. 97/ 2007/ND-CP and Article 18 of this Circular must be complied with.

7. After issuing tax refund or tax exemption decisions, customs offices shall examine in detail tax refund or tax exemption dossiers. If determining that conditions for tax refund or tax exemption are not fully satisfied, they shall revoke these decisions and conduct tax assessment and sanctioning under regulations. In case taxpayers owe tax or fine amounts, they shall issue tax refund decisions and budget revenue collection orders.

8. Upon the expiration of the above duration, if the issuance of tax refund or tax exemption decisions is still delayed at customs offices' faults, these customs offices shall, apart from refunding paid tax amounts, pay interests on these amounts calculated from the date they are obliged to issue tax refund decisions to the date they actually issue these decisions.

Article 128. Competence to decide on liquidation, tax refund or tax exemption

Heads of district-level Customs Departments where customs declarations are registered shall decide on liquidation, tax refund or tax exemption for taxpayers under Article 127 of this Circular, except for cases of tax refund from the state budget or tax refund for exported goods which must be imported back into Vietnam or imported goods which must be re-exported for return to their foreign owners or to a third country or into non-tariff zones, and for which customs procedures have been carried out at places other than those for carrying out initial export or import procedures, in which directors of provincial-level Customs Departments are competent to decide on tax refund.

Article 129. Declaration of the tax refund or tax exemption in original customs declarations

1. Based on tax refund decisions, customs offices where taxpayers have paid refundable tax amounts shall liquidate to-be-refunded tax amounts and clearly write in original customs declarations submitted by taxpayers the following phrase "Tax refund (tax exemption) of VND.... under Decision No.... dated.... issued by....," and keep one copy of each of these liquidated declarations in a tax refund dossier, and return original customs declarations to taxpayers.

2. In case a declaration is subject to multiple liquidation, the customs office shall:

a/ Make a list for monitoring each time of tax refund (or tax exemption) and clearly indicating in the list the sum of money of each time of tax refund or tax exemption;

b/ Clearly state in the declaration that a list for monitoring tax refund has been made;

c/ Append the tax refund (tax exemption) seal to original customs declarations kept at the enterprise when tax refund (tax exemption) procedures are last carried out.

d/ Keep one copy of the liquidated declaration in the tax refund dossier and return the original customs declaration to the taxpayer as for the above single liquidation.

Article 130. Handling of overpaid tax and fine amounts after issuance of tax refund decisions or decisions on handling of overpaid tax and fine amounts (paid tax amounts are larger than payable tax and fine amounts)

1. In case sources for refund of overpaid tax and fine amounts are from deposit accounts, customs offices where taxpayers have paid refundable tax amounts or overpaid tax and flue amounts shall check these amounts on the computer network for monitoring tax arrears and handle them as follows:

a/ If taxpayers owe no tax and fine amount, tax and fine amounts shall be refunded to taxpayers under regulations:

In case taxpayers make written requests for non-refund of overpaid tax and fine amounts but have them cleared against tax amounts due for exports and imports of the next time, customs offices where taxpayers have overpaid these amounts shall make the clearing as requested by taxpayers.

When clearing taxpayers' overpaid tax and fine amounts against payable tax amounts of the next time, customs offices shall clearly write in customs declarations (original customs declarations kept by customs declarants and those kept at customs offices) eligible for tax clearing the following phrase "Tax amount to be cleared is VND... under lax refund/overpaid tax and fine amount handling decision No....dated.....issued by.... and clearing decision No....dated.....issued by...."; and at the same time write the cleared tax and fine amounts and serial numbers and dates of customs declarations involved in the clearing in original tax refund decisions, customs declarations eligible for tax refund or involving overpaid lax and fine amounts, and tax payment receipts of customs declarations for which tax has been refunded, for monitoring.

b/ In case taxpayers still owe tax and fine amounts for goods lots of the same import mode, customs offices shall clear refundable overpaid tax or fine amounts against those owed by taxpayers.

c/ In case taxpayers still owe tax and fine amounts for goods lots of different import modes which are remittable into the state budget, customs offices shall issue state budget or account remittance papers and pay these amounts on the behalf of taxpayers:

d/ If after the above-said clearing, there is a remainder of refundable overpaid tax and fine amounts, customs offices shall carry out procedures for refunding this remainder to taxpayers.

In case taxpayers do not want the refund of refundable tax amounts or remainder of overpaid tax and fine amounts after payment of all debts according to the tax payment order but request in writing the clearing thereof against tax amounts due for exports and imports of the next time, customs offices where taxpayers have refundable tax amounts or overpaid tax and fine amounts shall make the clearing as requested by taxpayers under Point a of this Clause.

2. In case sources for refund of overpaid tax and fine amounts come from the state budget:

a/ In case taxpayers no longer owe tax and fine amounts and do not request the clearing of these amounts against payable tax amounts of the next time, customs offices shall send written requests for tax refund/handling of overpaid tax and fine amounts to the State Treasury where tax refund is to be carried out. In case customs offices have partially cleared amounts of the same tax in the same locality of state budget revenue collection, these written requests must clearly indicate the remainder of tax amounts requested for refund under tax refund decisions. Based on decisions on tax refund/handing of overpaid tax and fine amounts issued by customs offices, the State Treasury shall refund this remainder to taxpayers.

The accounting of refunded amounts is conducted as follows:

- For unsettled revenue amounts, the State Treasury shall return them according to the state budget index.

- For settled revenue amounts, the State Treasury shall account them as state budget expenditures and send tax refund vouchers (one for each amount) to customs offices which have issued decisions on tax refund/handling of overpaid tax and fine amounts for monitoring and management.

b/ In case taxpayers eligible for tax refund/ handling of overpaid tax and fine amounts have to make up for clearing deficits for other taxes: After customs offices make partial clearing of amounts of the same tax in the same locality of state budget revenue collection, taxpayers shall send written requests for tax refund/handling of overpaid tax and fine amounts together with decisions on tax refund/handling of overpaid tax and fine amounts and state budget revenue collection orders to the State Treasury where tax refund is made for the latter to account under regulations.

The accounting of refunded amounts is conducted as follows:

- In case the State Treasury offices where tax is refunded are those where tax has been collected, the accounting of refunded amounts complies with Point a of this Clause. The accounting of collected state budget revenues must comply with collection orders of customs offices, with the remainder of overpaid tax and fine amounts (if any) paid to taxpayers.

- In case the State Treasury where tax is refunded are other than those where tax has been collected, the former shall account refunded tax amounts under Point a of this Clause and transfer these amounts together with customs offices" budget collection orders to the State Treasury offices where tax has been collected for accounting state budget revenues strictly according to collection orders and refunding remaining tax and fine amounts (if any) to taxpayers.

c/ The handling of overpaid tax and fine amounts under this Article does not apply to value-added tax amounts for imports wrongly pair or overpaid by taxpayers to customs offices (customs offices will not refund value-added tax).

In case taxpayers wrongly pay or overpay value-added tax amounts for imports to customs offices, these customs offices shall certify these wrongly paid or overpaid amounts for tax offices to refund them to taxpayers under regulations. The certification shall be made as follows:

- Taxpayers shall compile and send dossiers of request for certification of wrongly paid or overpaid value-added tax amounts to customs offices where customs declarations have been registered. Such a dossier comprises:

+ A written request for certification of a wrongly paid or overpaid value-added tax amount and reason for wrongful payment or overpayment: one original;

+ The customs declaration of the wrongly paid or overpaid value-added tax amount: to produce one original and to submit one copy;

+ The tax payment receipt: one original.

- Customs offices shall compare originals and copies of customs declarations and tax payment receipts, return original declarations to taxpayers and give certification of wrongly paid or overpaid value-added tax amounts.

- In case wrongly paid or overpaid value-added tax amounts are detected by customs offices themselves, taxpayers are not required to send dossiers of request for certification. Customs offices shall notify taxpayers and tax offices managing taxpayers of these amounts and give certifications thereof under regulations.

Article 131. Time limit for dossiers for liquidation, tax refund or tax exemption

1. Taxpayers shall submit tax refund (tax exemption) dossiers in the cases specified in Articles 116. 119. 120 and 121 of this Circular to customs offices competent to refund tax within 45 days after the date of registration of customs declarations of exports or import for requests for import duty or export duty refund respectively.

2. For cases specified in Articles 117 and 118 of this Circular (also applicable to cases eligible for import tax or export tax rate of 0%)

a/ If taxpayers actually export goods within the tax payment time limit, the time limit for submission of tax refund dossiers is 45 days after the expiration of the tax payment time limit indicated in import declarations for which tax refund or tax exemption is requested.

b/ If taxpayers do not actually export goods within the tax payment time limit:

- They shall declare and pay import tax and value-added tax (if any) after the expiration of the tax payment time limit. Customs offices shall inspect and collect import tax and value-added tax under regulations;

Taxpayers will be refunded paid tax amounts under regulations upon actually exporting goods produced from imported goods for which taxes have been paid.

- The time limit for submission of tax refund or tax exemption dossiers is 45 days after the date of registration of export declarations.

c/ If enterprises fail to produce via-bank payment vouchers upon the submission of tax refund dossiers for the reason that the payment time limit indicated in export contracts or annexes thereof is longer than 45 days from the date of registration of export declarations or the date of expiration of the tax payment time limit, the time limit for submission of dossiers for liquidation, tax refund or tax exemption still complies with Clause 1 and Points a and b. Clause 2 of this Article, but enterprises shall make written commitments to produce payment vouchers within 15 days from the date of expiration of the payment time limit indicated in these contracts or annexes thereof, except for the case specified at Point d. Clause 6. Article 127 of this Circular.

d/ The time limit for submission of tax refund dossiers for goods being materials and supplies imported for production of exports which have been exported abroad but not yet actually sold to foreign traders and are still in these enterprises' overseas warehouses or consigned into overseas bonded warehouses or kept at overseas entrepot ports as specified in Clause 8, Article 117 of this Circular complies with Clause 2 of this Article.

In case enterprises have no export contracts by the time of submission of dossiers of request for tax refund, they shall make a written commitment to producing export contracts with foreign parties within 15 days after signing these contracts.

When at the time of submission of tax refund dossiers, enterprises fail to produce payment vouchers, the time limit for submission of payment vouchers is 15 days from the date of expiration of the payment time limit indicated in contracts or annexes thereof. Enterprises shall make written commitments to producing payment vouchers under above regulations, except for the case specified at Point d. Clause 6, Article 127 of this Circular.

3. If past the time limit specified in Clauses 1 and 2 of this Article, taxpayers fail to submit liquidation dossiers, they shall be sanctioned for administrative violations of customs regulations.

4. District-level Customs Departments carrying out procedures for liquidation shall receive and handle liquidation dossiers and handle violations (if any) under law.

Section 7. PROLONGATION OF TAX PA YMENT TIME LIMIT; REMISSION OF TAX AND FINE ARREARS

Article 132. Prolongation of the tax and fine payment time limit

1. Taxpayers may be considered for prolongation of the tax and fine payment time limit, for the case specified in Clause 1, Article 24 of Decree No. 85/2007/ND-CR

2. A dossier for prolongation of the tax and fine payment time limit complies with Clause 2, Article 51 of the Law on Tax Administration, comprising:

a/ A written request for prolongation of the tax and fine payment time limit, clearly stating the reason for the request, requested prolonged time limit and tax and fine amounts requested to be paid within this time limit. In case tax and fine amounts requested to be paid within a prolonged time limit are indicated in different customs declarations, customs declarations involved in the time limit prolongation request shall be enumerated with a commitment to make accurate declaration and supply proper dossier of request for prolongation and a plan and commitment to pay tax and fine amounts requested to be paid within a prolonged time limit: to submit one original;

b/ A tax declaration dossier for the tax and fine amounts requested to be paid within a prolonged time limit: to submit one copy;

c/ A written record of the damage level and value made by a competent state agency, enclosed with certification by the provincial-level Police Department or People's Committee of the locality where exists the reason for which time limit prolongation is requested, for case of natural disaster, fire or accident: to submit one original;

d/ A written certification by the local tax office directly managing the taxpayer of the level of direct damage caused by relocation of the business place or a change in state policies or other special reasons: to submit one original;

e/ A competent state agency's decision, for the case of relocation of the business place: to submit one copy;

f/ Documents on changing policies, for the case of damage caused by a change in state policies: to submit one copy;

g/ Papers evidencing the reason for prolongation of the time and fine payment time limit, for cases of other special reasons: to submit one original;

h/ A report on payable and owed tax and fine amounts: to submit one original.

3. In case the prolongation of the tax and fine payment time limit falls within the competent of directors of provincial-level Customs Departments, apart from the documents specified in Clause 2 of this Article, there must be written certifications of payable tax and fine amounts by district-level Customs Departments where these tax and fine amounts are requested to be paid within a prolonged payment time limit.

4. In case the prolongation of the tax and fine payment time limit is proposed by the Minister of Finance to the Prime Minister for decision or falls within the competence of the General Director of Customs, apart from the documents specified in Clause 2 of this Article, there must be written certifications of payable tax and fine amounts by provincial-level Customs Departments where these tax and fine amounts are requested to be paid within a prolonged payment time limit.

5. Tax and fine amounts allowed to be paid within a prolonged time limit comply with Clause 2. Article 24 of Decree No. 85/2007/ND-CP.

6. Prolonged tax and fine payment time limits comply with Clause 3, Article 24 of Decree No. 85/2007/ND-CP.

7. Procedures for prolongation

a/ Taxpayers eligible for a prolonged tax and fine payment time limit under Points a. b and c. Clause 1. Article 24 of Decree No. 85/2007/ND-CP shall compile and send tax payment time limit prolongation dossiers to competent customs offices.

b/ Taxpayers that encounter other particular objective difficulties and subject to the Prime Minister's decisions on tax and fine payment time limit prolongation at the request of the Minister of Finance shall compile and send tax payment time limit prolongation dossiers to the General Department of Customs.

c/ Customs offices competent to prolong tax payment time limit shall receive and handle dossiers under Article 52 of the Law on Tax Administration.

d/ The General Department of Customs shall receive dossiers of request for tax payment time limit prolongation in the cases specified at Point d. Clause 1. Article 24 of Decree No. 85/2(X)7/ND-CP. report them to the Minister of Finance for submission thereof to the Prime Minister for consideration and decision on a case-by-case basis.

8. Competence to prolong tax and fine payment time limit:

a/ Heads of district-level Customs Departments are competent to prolong tax and fine payment time limit for the cases in which a taxpayer is unable to pay tax and fine amounts within a set time limit specified at Points a. b and c. Clause 1, Article 24 of Decree No. 85/2007/ND-CP but his/her/its tax and fine amounts requested to be paid within a prolonged time limit arise in only one district-level Customs Department.

b/ Directors of provincial-level Customs Departments are competent to prolong tax and fine payment time limit for the cases in which a taxpayer is unable to pay tax and fine amounts within a set time limit specified at Points a. b and c. Clause 1. Article 24 of Decree No. 85/2007/ND-CP but his/ her/its tax and fine amounts requested to be paid within a prolonged time limit arise in different district-level Customs Departments under the same provincial-level Customs Department.

c/ The General Director of Customs is competent to prolong tax and line payment time limit for the cases in which a taxpayer is unable to pay tax and fine amounts within a set time limit specified at Points a. b and c. Clause 1. Article 24 of Decree No. 85/2007/ND-CP but his/her/its tax and fine amounts requested to be paid within a prolonged time limit arise in different provincial-level Customs Departments.

d/ Cases in which taxpayers encounter other particular objective difficulties specified at Point d. Clause 1, Article 24 of Decree No. 85/2007/ND-CP shall be decided by the Prime Minister at the request of the Minister of Finance.

Article 133. Remission of tax and fine arrears

1. Cases specified in Article 65 of the Law on Tax Administration are eligible for remission of tax and fine arrears.

2. A dossier of request for remission of tax and fine arrears comprises:

a/ A written request for remission of tax and fine arrears, made by the district-level Customs Department to which the taxpayer owes tax and fine amounts eligible for remission, clearly stating the reason for remission and tax and fine amounts requested for remission: to submit one original;

b/ The customs dossier for the tax and fine arrears requested for remission: to submit one copy;

c/ A competent state agency's decision and the declaration for tax finalization for cases in which an enterprise declared bankrupt has made payments under the bankruptcy law and has no more asset for tax and fine payment: to submit one original;

d/ A court's ruling or judgment declaring an individual dead, missing or having lost the civil act capacity without any asset to pay tax and fine arrears: to submit one original;

e/ Documents related to the requested tax and fine remission: to submit one copy.

3. Competence and procedures for remission:

a/ District-level Customs Departments to which taxpayers owe tax and fine amounts shall compile dossiers of request for tax and fine remission under regulations and send them to provincial-level Customs Departments.

b/ Provincial-level Customs Departments shall examine and verify the accuracy and completeness of these dossiers and handle them as follows:

b.1/ If dossiers are incomplete, within 10 working days from the date of dossier receipt, to notify district-level Customs Departments which have compiled these dossiers for completion thereof. Written notices must clearly indicate improper documents and documents to be added;

b.2/ If dossiers are complete, within 10 working days from the date of dossier receipt, to send these dossiers and written reports on dossier examination results to the General Department of Customs for consideration of remission plans.

c/ Within 50 days after receiving complete dossiers sent by provincial-level Customs Departments, the General Department of Customs shall propose plans on tax and fine remission to the Ministry of Finance.

d/ The Ministry of Finance shall issue decisions on tax and fine remission or notify in writing district-level Customs Departments of taxpayers' ineligibility for tax and fine remission within 10 days after receiving dossiers for tax and fine remission reported by the General Department of Customs.

4. To-be-remitted tax and fine amounts are total amounts owed by enterprises by the time of bankruptcy declaration which have made payments under the bankruptcy law and have no more assets for tax and fine payment or individuals who are declared dead, mission or having lost the civil act capacity and have no asset for tax and fine arrear payment.

Section 8. FULFILLMENT OF THE TAX PA YMENT OBLIGATION

Article 134. Fulfillment of the tax payment obligation by persons on exit

1. Vietnamese who leave the country for overseas permanent residence and overseas Vietnamese and foreigners who have tax or fine arrears on exports or imports shall fulfill the tax payment obligation before their exit from Vietnam.

2. Customs offices shall notify in writing immigration management agencies of the performance of the tax payment obligation by individuals with tax or fine arrears on exports or imports. Such a notice must specify full names, dates of birth, nationalities and numbers of identity cards or passports of persons who fail to fulfill the tax payment obligation and customs offices which manage arising tax arrears.

3. Immigration management agencies shall stop the exit of individuals who fail to fulfill the tax payment obligation specified in Clause 1 of this Article in accordance with Article 53 of the Tax Administration Law.

Article 135. Fulfillment of the tax payment obligation in cases of dissolution, bankruptcy and operation termination

1. Fulfillment of the tax payment obligation in cases of dissolution, bankruptcy and operation termination complies with Article 54 of the Tax Administration Law and the laws on enterprises, cooperatives and bankruptcy. Responsibilities of fulfilling the tax payment obligation in cases of dissolution and bankruptcy are as follows:

a/ Owners of private enterprises, member councils or owners of limited liability companies, boards of directors of joint-stock companies or enterprise liquidation organizations shall be responsible for fulfilling dissolved enterprises' tax payment obligation.

b/ Councils for dissolution of cooperatives shall be responsible for fulfilling dissolved cooperatives' tax payment obligation.

c/ Asset management and liquidation teams shall be responsible for fulfilling bankrupt enterprises' tax payment obligation.

2. Responsibilities of fulfilling the tax payment obligation in case taxpayers terminate operation without carrying out dissolution or bankruptcy procedures under law:

a/ If enterprises which terminate operation not according to dissolution or bankruptcy procedures fail to fulfill the tax payment obligation, tax arrears shall be paid by owners of private enterprises, chairmen of member councils or owners of limited liability companies, chairmen of boards of directors of joint-stock companies or heads of managing boards of cooperatives.

b/ If households or individuals that terminate business activities fail to fulfill the tax payment obligation, tax arrears shall be paid by owners of those households or those individuals.

c/ If cooperative groups which terminate operation fail to fulfill the tax payment obligation, tax arrears shall be paid by heads of cooperative groups.

Article 136. Fulfillment of the tax payment obligation by reorganized enterprises

1. Prior to reorganization, a to-be-reorganized enterprise shall fulfill the tax payment obligation for its exports or imports.

2. When a to-be-reorganized enterprise fails to fulfill the tax payment obligation prior to its reorganization, it shall issue a document determining the tax payment obligation of each enterprise to be established from its reorganization. Newly established enterprises shall make written commitments with customs offices to fulfilling the tax payment obligation transferred from the reorganized enterprise.

3. Tax agencies may not grant tax identification numbers to enterprises established from an enterprise's reorganization if these enterprises fail to produce customs offices' written certifications of their compliance with provisions of Clause 2 of this Article.

4. The time limit of tax payment for enterprises established from an enterprise's reorganization complies with Clause 4, Article 55 of the Tax Administration Law.

Article 137. Certification of fulfillment of the tax payment obligation

1. A taxpayer wishing to have his/her/its fulfillment of the tax payment obligation certified shall make a written official request with the following details:

a/ His/her/its name and tax identification number;

b/ Information to be certified;

c/ Documents evidencing the information to be certified.

2. Customs offices shall examine and certify taxpayers' fulfillment of the tax payment obligation when taxpayers make a written request in accordance with law.

In case of refusal, customs offices shall issue a written reply specifically stating the reason;

When examination or comparison of information on a taxpayer's performance of the tax payment obligation is required prior to certification, a customs office shall send the taxpayer a notice thereof;

The time limit for replying taxpayers is 5 (five) working days from the date of receiving taxpayers' complete dossiers of request for certification.

Part VI:

POST-CUSTOMS CLEARANCE EXAMINATION AND TAX INSPECTION

Chapter 1.

 GENERAL GUIDANCE ON POST-CUSTOMS CLEARANCE EXAMINATION AND TAX INSPECTION

Article 138. Principles for post-customs clearance examination and tax inspection

1. The risk management method shall be applied to post-customs clearance examination to decide on examination or non-examination, pre-examination or post-examination, scheduled examination, sample examination or examination based on signs of violation of examined entities;

2. Tax inspection complies with the Tax Administration Law and the inspection law.

Article 139. Purposes of post-customs clearance examination and tax inspection

Post-customs clearance examination and tax inspection aim to determine the accuracy and truthfulness of goods declaration, tax calculation and payment and law observance by enterprises, providing a basis for retrospective collection or refund of tax amounts, determination of priority in customs management of enterprises* exports and imports and handling of violations of the tax and customs laws.

Article 140. Scope of post-customs clearance examination and tax inspection

1. Depending on the requirements of each post-customs clearance examination, such examination may be conducted in a comprehensive or intensive manner, covering:

a/ Examination of all export and import activities of an enterprise in a certain period:

b/ Examination of the export or import of a goods item of one or many enterprises in a certain period;

c/ Examination of one or many exports or imports items of an enterprise in terms of one or many aspects (e.g.. value) in a certain period;

d/ Examination of one or many modes of export or import of an enterprise in a certain period.

2. Customs offices shall only conduct tax inspection at enterprises and may not inspect other activities.

Article 141. Subjects of post-customs clearance examination and tax inspection

Goods exporters or importers: persons entrusted to export or import goods; agents to clear customs procedures, postal and express delivery service providers; and persons authorized by goods owners to clear customs procedures are subject to post-customs clearance examination and tax inspection.

Article 142. Objects of post-customs clearance examination and tax inspection

Objects of post-customs clearance examination and tax inspection include:

1. Customs dossiers filed at enterprises and customs offices where concerned goods arc cleared.

2. Vouchers and documents related to cleared exports and imports, such as accounting books and documents, financial statements and related documents and data, filed by enterprises in hard or soft copies.

3. Goods and places of production, when necessary and where conditions permit.

Article 143. Contents of post-customs clearance examination and tax inspection

1. A post-customs clearance examination covers:

a/ The completeness, lawfulness and validity of customs dossiers;

b/ The accuracy of tax bases and declarations of payable, exempt and refunded tax amounts and tax amounts not to be collected;

c/ The observance of other tax regulations:

d/ The observance of the customs law.

2. Tax inspection covers the contents specified at Points a. b and c. Clause 1 of this Article.

Article 144. Explanation in post-customs clearance examination and tax inspection

1. Explanation means an enterprise's clarification of questionable or unreasonable issues or signs of violation of law as required by post-customs clearance examination or tax inspection.

2. Explanation requesters include directors of Sub-Departments for Post-Customs Clearance Examination, the director of the Department for Post-Customs Clearance Examination and heads of post-customs clearance examination teams and tax inspection teams.

3. Form of explanation request: in writing, specifying issues to be explained, time for explanation and documents to be supplied.

4. Form of explanation: Enterprises may choose to give written explanations or verbal explanations directly with customs offices.

When an enterprise chooses to give written explanation, it shall enclose with this explanation supporting documents and vouchers, which shall be sent to the explanation requester within the time limit specified in the written request for explanation.

When an enterprise chooses to make verbal explanation, the venue for such explanation can be the office of the customs or the enterprise at the choice of the latter. The verbal explanation shall be recorded in a working minutes, enclosed with supporting documents and vouchers. This minutes serves as a basis for considering the case.

Article 145. Verification in post-customs clearance examination and tax inspection

1. Verification means a customs office's request for concerned or capable organizations and individuals to clarify questionable or unreasonable issues or signs of violation of law.

2. Verification deciders include directors of Sub-Departments for Post-Customs Clearance Examination, directors of provincial-level Customs Departments, the director of the Department for Post-Customs Clearance Examination and heads of post-customs clearance examination teams and tax inspection teams.

3. Subject to verification are concerned organizations and individuals.

4. Verification may be requested and replied in writing: or verifiers may work directly with verified persons according to letters of reference of leaders of verifying organizations. Verification results shall be recorded in a working minutes which serves as a basis for considering the case.

5. In case of direct verification, units wishing to make verification may do so on their own or request customs offices with favorable conditions to do so.

Article 146. Assignment of responsibilities for post-customs clearance examination at offices of enterprises and tax inspection

1. The General Department of Customs shall conduct post-customs clearance examination at offices of enterprises and tax inspection nationwide for:

a/ A problem arising in many localities;

b/ An issue being implemented inconsistently by localities;

c/ Issues related to the implementation of major policies, sensitive issues and modes of export and import and export and import items of high risks:

d/ Cases showing signs of violation which local customs offices fail to detect or examine:

e/ Typical cases which can be case-study for guidance in the entire sector;

f/ Other cases approved by the General Director of Customs.

2. Provincial-level Customs Departments shall conduct post-customs clearance examination at offices of enterprises and tax inspection within localities under their management.

When a customs office detects signs of violation by an enterprise which carries out customs procedures at this customs office, but is not based in the locality under its management, it shall:

a/ Conduct post-customs clearance examination at its office. If such examination involves goods lots which have been cleared at customs offices of other localities, it may request concerned units to supply information and data or may even directly go to those customs offices to study and copy dossiers.

b/ Report to the General Director of Customs for assignment of a unit to conduct examination at the office of the enterprise when necessary.

Article 147. Powers of heads of examination or inspection teams

The head of an examination or inspection team may perform a number of tasks of the examination or inspection team, specifically:

1. To sign letters of reference and invitations;

2. To sign written requests for supply of dossiers, documents and data by organizations and individuals involved in the case under examination:

3. To discuss directly or in writing with concerned state management agencies on policies and laws related to the case:

4. To have other powers under law.

Chapter 2.

 SPECIFIC GUIDANCE

Section 1. POST-CUSTOMS CLEARANCE EXAMINATION

Article 148. Post-customs clearance examination at customs offices

1. Post-customs clearance examination at customs offices is a regular activity of customs offices to evaluate enterprises' observance of the tax and customs laws. When conducting post-customs clearance examination at customs offices, customs offices will issue no examination decisions.

2. Post-customs clearance examination at customs offices shall be conducted according to schedules planned for each period or of each unit or when there is information on or signs of violation of the customs and tax laws related to exports or imports.

3. Post-customs clearance examination at customs offices shall be conducted by collecting, reviewing, analyzing and processing information from the customs service's databases on enterprises, goods items and modes of export or import to be examined. When there are insufficient grounds for evaluation and conclusion:

a/ To examine customs dossiers and relevant vouchers and documents filed at customs offices where procedures have been cleared for exports or imports.

b/ To request enterprises to explain unclear or questionable issues.

c/ To verify unclear or questionable issues at concerned organizations and individuals.

d/ To assess questionable vouchers and goods when necessary and where conditions permit.

When an examination requires professional expertise and skills beyond the capacity and conditions of post-customs clearance examination units, these units may request assessment by specialized assessment agencies or organizations. Conclusions of those agencies or organizations serve as a basis for conclusion of post-customs clearance examination.

4. Upon completion of post-customs clearance examination at customs offices, civil servants or groups of civil servants who conduct post-customs clearance examination shall report on the examination scope, contents, process and results and propose examination conclusions and handling measures to competent persons for consideration and decision, specifically:

a/ When a customs office finds sufficient grounds to conclude tax underpayment, fraud or evasion committed by an enterprise, it shall notify such to the enterprise:

a.1/ If the enterprise makes explanation and additionally supplies information and documents proving its proper export or import and tax payment, its customs dossier will be accepted.

a.2/ If the enterprise agrees with the customs office's conclusions, the customs office shall issue decisions to assess payable tax amounts and handle administrative violations (if any).

a.3/ If the enterprise does not make explanation or its explanation fails, the customs office shall assess payable tax amounts and handle administrative violations (if any) or decide on post-customs clearance examination at the enterprise's office.

b/ When a customs office detects no violations, it shall complete the examination and file dossiers according to regulations.

5. Examination results shall be handled according to Section 3 of this Chapter.

Article 149. Post-customs clearance examination at offices of enterprises

1. Cases of post-customs clearance examination at offices of enterprises include:

a/ Scheduled examination;

Scheduled examination means examination conducted by customs offices at offices of enterprises according the schedule planned for each year. Each year, a certain number of enterprises shall be examined. Enterprises to be examined shall be identified according to the criteria set by the General Department of Customs.

b/ Sample examination;

Sample examination means customs offices' selection, based on the situation of tax evasion and trade frauds in each period, of typical enterprises, modes of export and import and exports and imports for examination at offices of enterprises.

c/ Post-customs clearance examination at offices of enterprises when there are signs of or possibilities for violation of the tax and customs laws.

2. Decisions and notice of decisions on post-customs clearance examination at offices of enterprises shall be issued as follows:

a/ The General Director of Customs and directors of provincial-level Customs Departments shall decide on post-customs clearance examination at offices of enterprises;

b/ Decisions on scheduled post-customs clearance examination at offices of enterprises and sample examination shall be notified to enterprises directly or by registered mail at least five working days before an examination:

Post-customs clearance examination based on signs of violation shall be conducted immediately after decisions are announced without prior notice. In this case, examination decisions shall be directly handed over to enterprises in working hours.

c/ A decision on post-customs clearance examination at the office of an enterprise must cover the following basic contents:

c.1/ Legal grounds for examination;

c.2/ Subjects of examination (when the enterprise has member units, the decision must specify member units to be examined):

c.3/ Examination contents, scope and tasks;

c.4/ Examination duration;

c.5/ Names of the head and other members of the examination team.

d/ When an enterprise fails to observe an examination decision, a written record of violation shall be made to serve as a basis for sanctioning administrative violations under law.

3. Durations for post-customs clearance examination at offices of enterprises are as follows:

a/ Fifteen working days, for scheduled post-customs clearance examination and sample examination.

b/ Five working days, for post-customs clearance examination when there arc signs of or possibilities for violation of the tax and customs laws.

c/ In complicated cases, examination deciders may extend the examination duration which musi not exceed the above durations. To-be-examined enterprises shall be notified of the reason and time for extended examination duration.

The starting and ending of the examination duration specified at Points a. b and c of this Clause shall be indicated in the examination decision.

d/ Working days means consecutive workdays other than holidays under law (weekends, holidays and new year holiday).

4. An examination team shall conduct post-customs clearance examination at the office of an enterprise as follows:

a/ To commence the examination, the examination team head shall announce the decision on post-customs clearance examination and explain the decision for the enterprise's information and compliance.

b/ The examination order and procedures comply with Clause 2, Article 78 of the Tax Administration Law.

c/ Examination contents and methods:

- Examination contents comply with Article 143 of this Circular;

- To examine vouchers and documents related to cleared exports or imports, accounting books and vouchers, financial statements and related documents and data filed by the enterprise in hard or soft copies or in other forms.

d/ To propose competent persons to decide on tax inspection when detecting signs of tax evasion or fraud committed by the enterprise.

e/ To apply the measures specified in Section 4. Chapter X of the Tax Administration Law and Articles 39,40 and 41 of Decree No. 85/2007/ND-CP when detecting signs of tax evasion or fraud committed by the enterprise.

5. Written conclusion on post-customs clearance examination at the office of an enterprise shall be made specifically as follows:

a/ Within one working day after completing the examination at the office of the enterprise, the examination team head shall send the draft examination conclusion to the enterprise.

b/ Within 2 working days after receiving the draft examination conclusion from the examination team head, the enterprise shall complete its explanation. Past this time limit, if the enterprise fails to submit a written explanation, it will be regarded as having no opinions divergent from the draft examination conclusion of the examination team head.

c/ Within 2 working days after the time limit for the enterprise's explanation, the examination team head shall issue a written conclusion on post-customs clearance examination at the office of the enterprise.

d/ A written conclusion on examination covers the following principal contents:

d.1/ Introduction: legal grounds for examination:

d.2/ Content: examined issues and examination results;

d.3/ Conclusion: Conclusion on each examined issue and each violation committed by the enterprise (if any), the severity of violation, handling measures applied within the team's competence and its recommendations on handling measures.

e/ The written examination conclusion shall be signed by the examination team head and sent to the examination decider and examined enterprise.

6. The handling of results of post-customs clearance examination at offices of enterprises complies with Section 3 of this Chapter.

Section 2. SPECIFIC GUIDANCE ON TAX INSPECTION

Article 150. Cases of tax inspection

Customs offices shall conduct tax inspection in the cases specified in Clause 2, Article 36 of Decree No. 85/2007/ND-CP specifically when taxpayers commit one of the following violations of the tax law:

1. Repeated violations of the tax law;

2. Violations committed in different localities;

3. Violations involving many organizations and individuals (customs offices have grounds to believe that taxpayers have been in collusion or cahoots with many organizations and individuals to commit tax fraud or evasion);

4. Signs of tax evasion;

5. Signs of dispersal of documents and exhibits to commit tax evasion or fraud during customs offices' post-customs clearance examination at offices of enterprises;

6. Signs of new violations after customs offices complete post-customs clearance examination at offices of enterprises;

7. Complicated and serious cases such as big appropriated tax amounts; taxpayers' use of unlawful or fake vouchers and documents for tax declaration; delayed implementation of decisions on retrospective collection of taxes.

The above violations and signs of violation can be detected during post-customs clearance examination at customs offices or offices of enterprises.

Article 151. Competence to decide on tax inspection

The General Director of Customs and directors of provincial-level Customs Departments may decide on tax inspection.

Article 152. Collection of information on inspected subjects

1. Information on signs of tax law violation serves as a basis for deciding on inspection. Therefore, such information must be specific and directly related to to-be-inspected persons or cases.

2. Information sources to be exploited and collected

a/ Official information sources of the customs service (the system of databases on taxpayers, export-import dossiers and exports and imports; results of re-examination of dossiers, results of post-customs clearance examination and tax inspection; signs of violation reported by customs offices).

b/ Information outside the customs service (from other agencies and units related to export-import activities such as tax administration agencies, banks, transport, insurance and assessment organizations, associations of businesses, the media's coverage and written complaints and denunciations of organizations and individuals).

c/ Other information collected by post-customs clearance examination forces (from informants, information sellers, international cooperation activities and other information).

Article 153. Making evaluation reports and inspection plans

1. To study and analyze selected information to make evaluation reports with the following
principal contents:

a/ General situation and statistics of enterprises and their export or import activities (main export or import items, number of customs declarations, type of business, export or import turnover, tax amounts due. annual performance of the tax payment obligation and observance of law);

b/ Review and evaluation of emerging problems, signs of tax law violation and nature and level of revenues risks;

c/ Proposal of inspection contents and plans which must specify focal and key issues; concerned organizations and individuals to be examined or verified.

2. To formulate inspection plans with the following principal contents:

a/ Signs of tax law violation;

b/ Inspection purposes and requirements:

c/ Subjects of inspection;

d/ Scale and scope of inspection;

e/ Inspection contents;

f/ Tentative time for inspection.

An inspection plan must detail each issue to be inspected, specifying jobs to be done, implemen­tation methods, places to go and time to start and complete these jobs, personnel of the inspection team and tasks of inspection team members.

In the course of inspection, if finding it necessary to modify and supplement the inspection plan, the inspection team head shall make a written request therefor to the inspection decision issuer for consideration and decision. Such a request must clearly state the reason and contents to be modified and supplemented and other contents (if any). When the inspection decision issuer issues a written approval of such modification and supplemen­tation, the inspection team head shall modify and supplement the inspection plan based on this approval.

3. Inspection plans of provincial-level Customs Departments shall be sent to the General Department of Customs for coordination for cases of coincidence among units and for professional direction and guidance.

Article 154. Inspection teams

An inspection team is composed of a head and members. When necessary, an inspection team may have a deputy head who shall assist the head in performing the assigned tasks and take responsibility to the head for the performance of his/her assigned tasks. An inspection team must have at least one member being a tax inspector.

Article 155. Inspection duration

The duration of an inspection must not exceed 30 days, from the announcement of the inspection decision to the completion of the inspection at the place of inspection. When necessary, the inspection decider may extend the inspection duration once for no more than 30 days.

Article 156. Inspection decisions

1. An inspection decision must cover the following contents:

a/ Legal grounds for inspection:

b/ Subjects, contents, scope and tasks of inspection;

c/ Inspection duration;

d/ Head of inspection team and other team members.

2. Within 3 working days from the date of its signing, an inspection decision shall be sent directly or by registered mail to the inspected subject.

3. Within 15 days from the date of signing an inspection decision, the inspection team head shall announce such decision to the inspected subject. When an inspection decision is issued during post-customs clearance examination at the office of an enterprise, such decision shall be announced and implemented immediately after its signing.

For an enterprise which fails to observe an inspection decision, an inspector or inspection team head shall make a record on administrative violation and issue a decision on sanctioning of administrative violation or refer the case to a competent person for handling under law.

Article 157. Inspection

When conducting an inspection, an inspection team shall perform the following jobs:

1. Announcement of the inspection decision:

a/ The inspection team head shall introduce inspection team members, read the full text of inspection decision; specifically explain inspection purposes, requirements and contents for the inspected subject to understand and comply with this decision; announce the working agenda for the inspection team and the inspected subject and other inspection-related jobs. When the scope of a tax inspection also covers member units, branches and attached units of an inspected enterprise, the inspection team head shall specifically announce the list of to-be-inspected units, inspection times and contents, and rights and obligations of involved parties to enable proactive compliance by the inspected subject;

b/ Discussion with the inspected subject's representative to reach agreement on the working plan, times and places; lists of dossiers, vouchers and documents to be supplied by the inspected subject; and staff and sections of the enterprise that shall work with the inspection team;

c/ To have additional information for the inspection, the inspection team head shall request the inspected subject's representative to report on the enterprise's general situation, including its business line; organizational structures, functions, tasks and forms of accounting of its member units, branches and attached units; production and business modes; applied accounting standards and year; number of officials and employees and their salaries; partners in joint ventures or associations (if any);

d/ A written record on announcement of the inspection decision shall be made.

2. Receipt of dossiers, documents, accounting vouchers and books and financial statements (below collectively referred to as documents) related to cleared exports and imports supplied by the enterprise. When these documents are stored in computers or other media, the enterprise shall also hand over these media to the inspection team. The inspection team shall check, count, preserve, exploit and use dossiers and documents properly and may not lose them. When necessary to retain the status of dossiers, papers and documents, the inspection team head shall decide to seal up part or all of the documents. The sealing up of documents, removal of seals for exploitation of documents or cancellation of the sealing up complies with law.

3. Detailed examination, compilation of dossiers of proofs

To-be-examined contents include:

a/ The completeness, lawfulness, validity consistency, accuracy and truthfulness of customs dossiers filed at the enterprise as compared with customs dossiers filed at the customs office;

b/ Dossiers, documents, accounting vouchers and books, financial statements and other papers related to inspection contents;

c/ The enterprise's observance of the laws on taxes and tax administration and other relevant laws;

d/ Production lines, machinery, equipment, materials and supplies related the production and processing of exports or imports; and physical inspection of imports or goods produced by sub­contract mode, manufactured or processed from imports being stored by the enterprise, when necessary and conditions permit;

e/ In the course of examination, if detecting violations by the inspected subject, to make a working record to confirm those violation; if detecting signs of tax evasion or fraud, to apply the measures specified in Articles 89 thru 91 of the Tax Administration Law and Articles 39 thru 41 of Decree No. 85/2007/ND-CP.

4. Consolidation of proofs and legal grounds, covering:

a/ Request for explanation by the inspected subject:

For unclear issues with insufficient grounds for conclusion, an inspector or the inspection team head shall request explanation by the enterprise. If the enterprise's written explanation is not clear enough, a dialogue or question-and-answer session will be held:

Completing the dialogue or question-and-answer session, a written record shall be made, fully and accurately reporting on contents discussed by the two parties. When necessary, audio or visual recording of such dialogue or question-and-answer session may be made.

b/ Examination and verification

b.1/ Unclear proofs and explanations provided by the enterprise shall be verified at concerned organizations and individuals or those having the capacity and conditions to clarify those issues. A report on examination and verification results shall be made, enclosed with supporting documents. The examination and verification report serves as a basis for carrying out subsequent steps.

b.2/ The tax inspection team head shall specifically notify verifying organizations of contents to be examined and verified and documents to be supplied and give them sufficient time to make full and accurate preparations.

c/ Assessment request

For issues that require professional expertise and skills beyond the inspection team's capacity and conditions for conclusion, the inspection team head shall decide to request assessment in accordance with law.

5. After clarifying issues of inspection, the inspection team shall finalize dossiers of proofs, supplement documents and statistics, sign with the inspected subject working minutes or written certifications of documents and statistics, and compile inspection dossiers.

An inspection dossier, which is the basic document to make the inspection record, comprises:

a/ Examination result reports, working minutes:

b/ Documents and reports made by the enterprise at the request of the inspection team;

c/ Lists of documents and statistics jointly made by the inspection team and enterprise;

d/ Copies of related documents;

e/ Written explanations;

g/ Verification results.

6. Sanctioning of administrative violations

In the course of inspection, when detecting violations subject to administrative sanctioning under law. inspectors or the inspection team head shall make written records of administrative violations, issue decisions on administrative sanctioning or refer them a competent person for handling according to the law on sanctioning of administrative violations.

7. Hand-over of dossiers and documents

Completing an inspection, each inspection team member shall:

a/ Hand over working minutes, written certifications of statistics and all collected proofs to the inspection team head; make lists of documents and number them; make a brief report on the case, propose conclusions and handling measures and provide grounds for such proposal:

b/ Return unnecessary dossiers and documents to the enterprise; keep dossiers and documents necessary for subsequent steps. Written records on return or keeping of dossiers and documents shall be made.

Article 158. Inspection records

1. Completing an inspection, an inspection team head shall draft an inspection record. Before this record is officially signed with the inspected subject, the inspection team head shall hold a meeting with inspection team members to approve the inspection record or request team members to give their written opinions on the draft inspection record.

An inspection record shall be made and signed within 5 working days after completing an inspection.

2. An inspection record must specify results of each inspection content, violations and grounds for conclusion, consisting of the following parts:

a/ Introduction: to provide legal grounds for making the inspection record;

b/ Content: to specify inspected issues, results of comparison by the inspection team with statistics declared and reported by the taxpayer; to explain reasons and causes; and give inspection proofs;

c/ Conclusion: To specify each inspected issue and determine the severity of violation by the taxpayer on the basis of specific regulations; and handling measures applied within the inspection team's competence, and propose handling measures.

3. An inspection record shall be signed by the inspection team head and the taxpayer (or his/her/its lawful representative) on every page and appended with seal of the taxpayer (if any). Issues agreed and disagreed between the inspection team and taxpayer shall all be specified in the inspection record.

4. An inspected subject may receive the tax inspection record and request explanation of this record and have other rights under Clause 2. Article 86 of the Tax Administration Law:

5. When necessary to extend the inspection duration, an inspection team head shall report on such extension to the inspection decision issuer for decision and may only conduct extended inspection when a decision is issued.

Article 159. Inspection result reports and draft inspection conclusions

1. Within 15 working days after an inspection, the inspection team head shall submit an inspection result report and a draft inspection conclusion to the inspection decision issuer. An inspection result report must cover the following contents:

a/ Specific reporting on every inspected issue:

b/ Clear determination of the nature and severity of violation, reasons and responsibilities of violators (if any);

c/ Divergent opinions of inspection team members and the inspection team head on contents of the inspection result report (if any);

d/ Handling measures applied according to competence and proposed handling measures;

e/ Regulations to serve as a basis for determining the nature and severity of violation and proposing handling measures;

2. An inspection team head may discuss and seek opinions of concerned agencies and organizations on problems arising in the drafting of the inspection report and conclusion to ensure accurate and objective inspection conclusion.

3. An inspection result report (signed by the inspection team head) must fully cover inspected issues, issues which have not been inspected according to, or which have been inspected outside, the approved inspection decision and plan, and reasons therefor; disagreements of the enterprise; and propose management policies and regulations. Each conclusion content must specify the issue, grounds for right and wrong doings, causes, responsibilities and form of handling.

4. An inspection result report and draft inspection conclusion submitted to the inspection decision issuer must fully include written opinions of inspection team members. Team members" opinions must confirm whether or not to agree with the report and draft conclusion made by the inspection team head on the job directly performed by themselves and by other members. In case of disagreement, the reason must be suited clearly. If inspection team members hold divergent opinions on the inspection result report and draft inspection conclusion, the inspection team head shall make his/her own decision and take responsibility for this decision.

Article 160. Inspection conclusion

1. Within 15 days after receiving an inspection result report, the inspection decision issuer shall issue an inspection conclusion. An inspection conclusion must cover the following contents:

a/ Evaluation of the inspected subject's observance of the tax law concerning inspected issues;

b/ Conclusion on inspected issues;

c/ Determination of the nature, severity and causes of violation and responsibilities of violators (if any):

d/ Handling of administrative violations according to competence or proposing to competent persons for handling under law.

2. When issuing an inspection conclusion, the inspection decision issuer may request the head and members of the inspection team and the inspected subject to explain issues necessary for making inspection conclusion. When necessary, the inspection decision issuer shall request the inspection team to conduct additional inspection to clarify a number of issues. Additional inspection results shall be reported in writing and serve as a basis for making the inspection conclusion.

3. An inspection conclusion shall be sent to the inspected subject, the General Director of Customs (when a provincial-level Customs Department issues the inspection decision) or a provincial-level Customs Department (when the General Director of Customs issues the inspection decision).

4. When, through tax inspection, acts of tax evasion are detected to show criminal signs, within 10 working days after such detection, customs offices shall forward dossiers to competent agencies for investigation according to the criminal procedure law. Customs offices shall coordinate with investigative agencies in investigating into tax-related crimes under law.

Article 161. Rights and responsibilities of inspected subjects

Inspected subjects have the obligations and rights specified in Article 86 of the Tax Administration Law.

Section 3. IMPLEMENTATION OF CONCLUSIONS ON POST-CUSTOMS CLEARANCE EXAMINATION AND TAX INSPECTION

Article 162. Jobs to be done after the issuance of conclusions on post-customs clearance examination or tax inspection

After the issuance of conclusions on post-customs clearance examination or tax inspection, the following jobs shall be done:

1. Issuing tax assessment decisions (if any).

2. Issuing decisions on handling of administrative violations (if any) and supervising, urging and enforcing the implementation of these decision under law.

3. When detecting acts of tax evasion showing criminal signs, complying with Clause 2, Article 76 of the Tax Administration Law, and the criminal procedure law.

4. Updating information on tax examination and inspection results into the database system for later management.

5. Proposing competent authorities to amend, supplement or promulgate legal documents to stop and prevent violations.

6. Collecting taxes and urging enterprises to pay taxes according to tax assessment decisions and fining delayed tax payment cases (if any) under law.

7. Monitoring and inputting data into the KT559 accounting system and issuing decisions and enforcing tax payment by enterprises under law.

8. Reporting on tax collection results to tax assessment decision issuers.

Article 163. Assignment of implementation

1. When provincial-level Customs Departments decide on and conduct post-customs clearance examination or tax inspection, they shall perform all the jobs specified in Article 162 of this Circular.

2. When the General Department of Customs conducts post-customs clearance examination or tax inspection:

a/ The General Director of Customs shall perform the job specified in Clause 1, Article 162 of this Circular.

b/ The Department for Post-Customs Clearance Examination shall perform the jobs specified in Clauses 2 thru 5, Article 162 of this Circular.

After the General Director of Customs issues tax assessment decisions, the Department for Post-Customs Clearance Examination shall:

- Send to every Customs Department which clears customs procedures for exports and imports 1 copy of the tax assessment decision enclosed with a detailed list of tax assessment declarations and assessed tax amounts for these Departments to collect taxes under Clauses 6 and 7, Article 162 of this Circular;

- Supervise the tax collection by Customs Departments according to its tax assessment decisions;

- Coordinate with the Customs Departments which handle and settle problems related the implementation of tax assessment decisions;

c/ Customs Departments which clear customs procedures for exports and imports shall organize the performance of, and direct Sub-Departments for Post-Customs Clearance Examination in performing, the jobs specified in Clauses 6, 7 and 8, Article 162 of this Circular.

Part VII

ORGANIZATION OF IMPLEMENTATION

Article 164. Implementation responsibilities

1. The General Director of Customs shall, pursuant to this Circular, promulgate customs procedures and guide customs offices in uniformly carrying out these procedures to facilitate export-import activities while ensuring proper customs management.

2. Competent customs offices shall carry out customs procedures; conduct customs examination and supervision; consider and give tax exemption, reduction and refund and non-collection, extend tax payment time limit, remit tax arrears, assess taxes, apply tax payment time limits and perform other tax administration jobs in strict accordance with current regulations and this Circular. In the course of implementation, customs offices, customs declarants and taxpayers shall specifically report arising problems to the Ministry of Finance (the General Department of Customs) for consideration and guidance for settlement on a case-by-case basis.

Article 165. Effect

1. This Circular takes effect 45 days from the date of its signing and replaces the Finance Ministry's Circulars No. 112/2005/TT-BTC of December 15. 2005, No. 114/2005/TT-BTC of December 15.2005, No. 59/2007/TT-BTC of June 14,2007, and No. 05/2009/TT-BTC of January 13, 2009, and the Finance Ministry's previous guiding documents which are contrary to this Circular.

2. In the course of implementation, if relevant documents mentioned in this Circular are amended, supplemented or replaced, the amended, supplemented or replaced documents apply.

 

FOR THE MINISTER OF FINANCE VICE MINISTER Do Hoang Anh Tuan

 

APPENDIX I

VIA-BANK PAYMENT VOUCHERS
(To the Finance Ministry's Circular No. 79/2009/TT-BTC of April 20, 2009)

1. Via-bank payment vouchers for consideration of tax refund (or tax non-collection) comply with this Appendix.

2. Via-bank payment means the transfer of money from the importer's bank to the exporter's bank to pay the exporter for goods or services by modes under their contract and the banks' regulations.

Payment vouchers mean notice of the exporter's bank to the exporter on the receipt of payment for exports. In case of deferred payment, such payment must be stated in the export contract. When payment is due, the exporter must produce via-bank payment vouchers. In case of export entrustment, the entrusted party must be paid by the foreign party via bank.

3. Currency for payment of exported petrol and oil or those temporarily imported for re-export must be a currency which is freely converted via bank in accordance with current regulations on foreign exchange management, except cases in which Vietnamese traders sell petrol and oil to traders in separate customs zones within the Vietnamese territory such as export-processing zones, export-processing enterprises, tax suspension zones, commercial-industrial zones and other economic zones established under the Prime Minister's decisions, which define the goods trading relation between these zones and the inland as export and import relation, and Vietnamese airlines providing international services and Vietnamese traders with international service seagoing ships which are permitted to make payment in Vietnam dong.

4. The following cases are also regarded as via-bank payment:

4.1. When payment for exports is cleared against foreign loans, the exporter must satisfy the conditions, procedures and dossiers below:

a/ Having a loan contract (for under-one-year financial loans): or a written certification of loan registration of the State Bank of Vietnam (for over-one-year loans);

b/ The foreign party's voucher on via-bank money transfer to Vietnam;

The payment for exports to be cleared against foreign loans must be stated in the export contract.

c/ The foreign party's written certification of the clearing against the loan;

d/ When there is a difference after the value of exports is cleared against the foreign loan, the different amount shall be paid via bank. Via-bank payment vouchers comply with this Appendix.

4.2. When an exporter receives via-bank payment for its exports, but the foreign party authorizes a third party being an overseas organization or individual to make this payment, apart from payment vouchers, such authorized payment must be shown in writing (in the export contract, contract annex or payment adjustment document).

4.3. When a foreign importer makes payment from a current account in Vietnam, such payment shall be made via bank. Payment voucher is the notice of the exporter's bank to the exporter on the receipt of payment for exports from the current account of the importer or the party authorized by the foreign importer to make payment.

4.4. When an exporter of goods to be sold at an overseas fair or exhibition sells those goods in the currency of the country where the fair or exhibition is held and remit sales in this currency, it shall produce a customs declaration on the foreign-currency cash amount as remittance of sales from overseas and vouchers on deposit thereof at a bank in Vietnam.

4.5. When goods are exported as the Government's payment of foreign loans, there must be the foreign trade bank's certification that those exports are accepted by the foreign party as payment of the loans or that the set of vouchers has been sent to the foreign party for deduction to the loan.

4.6. When payment between a Vietnamese exporter and a foreign party is made by offsetting the value of exports or the pay for sub-contract production of exports with the value of goods and services bought from the foreign party, the exporter must satisfy the conditions, procedures and dossiers below:

a/ The payment mode for goods traded between the exporter and the foreign party must be specified in the export contract;

b/ There must be the foreign party's written certification of the amount of offset payment for exported goods and goods and services imported from the foreign party;

c/ When there is a difference after the offset payment for exports and imports and services, such different amount must be paid via bank. Via-bank payment vouchers comply with this Appendix.

4.7. When the paid amount indicated in the payment voucher, which is in the name of the payer,
does not match the payable amount under the contract or contract annex, the case shall be handled
as follows:

a/ If the paid amount indicated in the payment voucher is smaller than the payable amount under the contract or contract annex, the exporter shall clearly explain the reason, such as bank transfer charges, reduced prices due to poor quality or inadequate goods (in this case, there must be a written agreement on price discount between the seller and buyer);

b/ If the paid amount indicated in the payment voucher is larger than the payable amount under the contract or contract annex, the exporter shall clearly explain the reason, such as lump-sum payment for different contracts and advances for goods, and undertake to take responsibility before law for its declaration.

4.8. When the payment mode is changed from that under the export contract, the exporter shall issue a notice on the change of payment mode by the foreign buyer.

4.9. When the payment voucher does not indicate the name of the bank of payment specified in the contract, but clearly indicates the names of the payer and payee, number of the export contract and the payment value matches the signed export contract, this voucher is regarded as valid.

4.10. When under import and export contracts, an enterprise trading in goods temporarily imported for re-export or temporarily exported for re-import may only receive commissions for a batch of goods temporarily imported for re-export or temporarily exported for re-import while the buyer will directly pay the seller, payment vouchers in the tax refund dossier may be replaced with vouchers on payment of commissions to the Vietnamese enterprise.

4.11. When an exporter fails to provide customs offices with payment vouchers because the buyer fails to make payment due to bankruptcy or abscondence, it shall make a written explanation thereof enclosed with supporting documents and undertake to take responsibility before law for such explanation.

4.12. For cases of payment of exports in foreign-currency cash, the exporter shall produce the State Bank's permit for collection of foreign-currency cash from export, which is granted by the State Bank's Foreign Exchange Management Department, at the central level, or by State Bank branches of border provinces, at local level. Foreign currencies shall be collected and remitted according to the time limit set in the State Bank's permits. The State Bank's permit for collection of foreign-currency cash amount from export and certification of remittance of foreign-currency cash earned from export by the bank where the exporter opens account are regarded as valid payment vouchers for the export contract.

4.13. When goods are sold to foreign traders, but are delivered, as designated by foreign traders, to other business establishments in Vietnam to be used as materials for production or sub-contract production of exports, foreign traders shall make via-bank payment in freely convertible foreign currencies.

 

APPENDIX II

GUIDANCE ON ORDER OF TAX PAYMENT
(To the Finance Ministry's Circular No. 79/2009/TT-BTC of April 20, 2009)

1. The guidance of this Appendix only applies within the effective duration of the Government's Resolution No. 30/2008/NQ-CP of December 11, 2008, on urgent measures to curb economic decline, maintain economic growth and ensure social welfare.

2. The order of tax payment complies with Article 45 of the Tax Administration Law. specifically as follows:

a/ Due taxes and fines shall be paid according to the order specified in Article 45 of the Tax Administration Law;

b/ If, at the time of registering the import declaration, a taxpayer has tax arrears which are still within 90 days from the date of tax payment deadline, he/she/it may clear customs procedures for goods if meeting the following conditions:

- The taxpayer makes a written commitment with the customs office to completing payment of overdue taxes on a monthly basis to the provincial-level Customs Department where he/she/it has tax arrears. Each payment must be at least 20% of the tax arrear amount but must not be less than VND 200 million.

- The tax amount registered for scheduled payment must be guaranteed by a credit institution or another institution operating under the Law on Credit Institutions. Such guarantee complies with Article 19 of this Circular.

- The taxpayer shall pay taxes on goods under current customs declaration before receiving those goods.

c/ During the time of delayed payment of taxes according to the schedule registered with the customs office, the tax amount of delayed payment are still subject to fines on delayed payment according to regulations, but are not subject to coercive measures under Article 93 of the Tax Administration Law.

d/ The taxpayer shall fully pay taxes and fines on delayed payment according to the committed schedule. When breaching commitment, the customs office shall request him/her/it to pay taxes according to the order under the Tax Administration Law.

 

APPENDIX III

GUIDANCE ON APPLICATION OF TAX PAYMENT TIME LIMITS AND ENFORCEMENT OF TAX PAYMENT
(To the Finance Ministry's Circular No. 79/2009/TT-BTC of April 20, 2009)

1. The guidance of this Appendix only applies within the effective duration of the Government's Resolution No. 3G/2008/NQ-CP of December 11, 2008, on urgent measures to curb economic decline, maintain economic growth and ensure social welfare.

2. The application of tax payment time limits and measures to enforce tax payment for cases of having submitted tax liquidation or refund dossiers to customs offices but still lacking via-bank payment vouchers is carried out specifically as follows:

2.1. Pending customs offices' verification for their eligibility for tax refund, taxpayers are subject to the tax payment time limit for taxpayers meeting the conditions specified at Point a. Clause 4, Article 42 of the Tax Administration Law and temporarily are not subject to measures to enforce tax payment under Article 93 of the Tax Administration Law if they fully meet the following conditions:

- Taxpayers only have tax arrears for imported materials and supplies for export production for which tax liquidation and refund dossiers have been submitted to customs offices but those dossiers still lack via-bank payment vouchers;

- Taxpayers make written commitments to implementing final decisions of customs offices.

2.2. When results of examination, verification and comparison of related business transactions show that goods are ineligible for tax liquidation or refund or non-collection, taxpayers may not be applied the time limit of tax payment for taxpayers meeting the conditions under Point a. Clause 4. Article 42 of the Tax Administration Law and are subject to enforcement of measures under Article 93 of the Tax Administration Law.-

* Note: Except Appendices I, II and III above, other appendices are not printed herein.