Thông tư 222/2009/TT-BTC

THE MINISTRY OF FINANCE -------	SOCIALIST REPUBLIC OF VIET NAM Independence - Freedom - Happiness ----------
No. 222/2009/TT-BTC	Hanoi, November 25, 2009

 

CIRCULAR

GUIDING THE PILOT IMPLEMENTATION OF E-CUSTOMS PROCEDURES

THE MINISTRY OF FINANCE

Pursuant to June 29, 2001 Customs Law No. 29/2001/QH10 and June 14, 2005 Law No. 42/2005/QH11 Amending and Supplementing a Number of Articles of the Customs Law;
Pursuant to June 14, 2005 Import Duty and Export Duty Law No. 45/2005/QH11;
Pursuant to November 29, 2006 Tax Administration Law No. 78/2006/QH10;
Pursuant to November 29, 2005 E-Transaction Law No. 51/2005/QHU;
Pursuant to the Governments Decree No. 79/ 2005/ND-CP of June 16, 2005, prescribing the conditions for registration and operation of agents carrying out customs procedures;
Pursuant to the Government's Decree No. 149/2005/ND-CP of December 8, 2005, derailing the Import Duty and Export Duty Law;
Pursuant to the Government's Decree No. 12/2006/ND-CP of January 23, 2006, detailing the Commercial Law regarding international purchase and sale of goods, and agency, purchase, sale, processing and transit of goods 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. 23/2007/ND-CP of February 12, 2007, detailing the Commercial Law regarding goods purchase and sale activities or goods purchase and sale-related activities of foreign-invested enterprises in Vietnam;
Pursuant to the Government's Decree No. 27/2007/ND-CP of February 23, 2007, on e-transactions in financial activities;
Pursuant to the Government's Decree No. 85/2007/ND-CPofMay25 2007, detailing the T

Chapter I

GENERAL GUIDANCE

Article 1. Subjects of application

1. Organizations and individuals that import or export goods subject to e-customs procedures;

2. Customs offices and customs officers;

3. Agencies, organizations and individuals responsible for providing relevant information within the scope of application of e-customs procedures.

Article 2. Scope of application

1. Pilot e-customs procedures apply to:

1.1. Goods imported or exported under goods purchase and sale contracts;

1.2. Goods imported or exported for the performance of processing contracts with foreign traders or of overseas processing contracts;

1.3. Goods imported and exported as imported raw materials for export production;

1.4. Goods brought in or taken out of export processing enterprises and priority enterprises;

1.5. Goods brought in or taken out of bonded warehouses;

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

1.7. Goods traded in the form of temporary import for re-export;

1.8. Goods imported or exported on the spot;

1.9. Exported goods which are returned;

1.10. Imported goods which must be exported back to their countries of origin;

1.11. Imports or exports in border-gate transfer.

2. Based on the practical conditions, the General Director of Customs shall decide on the pilot implementation roadmap.

3. Importers and exporters of goods shall carry out e-customs procedures under this Circular or current relevant regulations on goods import and export in cases not governed by this Circular.

Article 3. Interpretation of terms

In this Regulation, the following terms are construed as follows:

1. E-customs procedures means customs procedures whereby the declaration, receipt and processing of customs declaration information and issuance of decisions are made through the e-customs data processing system.

2. E-customs data message means information created by, sent and received through and stored in electronic equipment in the standard format for the performance of e-customs procedures.

3. E-document means a document created under Clause 1. Article 3, Chapter I of Decree No. 27/2007/ND-CP of February 23, 2007, on e-transactions in financial activities and used for the performance of e-customs procedures.

4. E-customs data processing system means an information system under the centralized and uniform management of the General Department of Customs which is used for the performance of e-customs procedures.

5. E-cusioms declaration system means an information system managed and used by customs declarants for the performance of e-customs procedures.

6. Backup e-customs declaration system means an information system managed by the General Department of Customs at customs offices and used for the performance of e-customs procedures by customs declarants upon occurrence of problems, in addition to the e-customs declaration system.

7. Customs clearance of goods means the customs office's permission for the goods to be imported, exported or placed under another customs management regime upon completion of necessary customs procedures.

8. Release of goods means the customs office's permission for the goods in the customs clearance process to be placed at the disposal of the customs declarant.

9. Transport of goods to a place for preservation means the customs office's permission for the goods in the customs clearance process to be taken out of the zone of customs supervision upon their satisfaction of customs supervision conditions prescribed by the General Department of Customs or to be assigned to customs declarants for the preservation of their original conditions before customs clearance.

10. Goods which have gone through the zone of customs supervision means imports or exports already brought into or taken out of customs operation areas, including road border gates, international railway stations, international seaports, international river ports, international civil airports, inland clearance depots (ICD), bonded warehouses and international post offices.

Article 4. Principles for carrying out customs procedures, inspection and supervision

1. Customs procedures, inspection and supervision and tax administration shall be carried out under Article 15 of the Customs Law and Article 4 of the Tax Administration Law.

2. Principles for customs inspection and supervision.

2.1. Subject to customs inspection and supervision are imports and exports; customs dossiers and documents relevant to imports and exports.

2.2. Customs inspection shall be conducted in the process of carrying out customs procedures and after the customs clearance.

3. Customs offices shall apply the risk management to customs inspection of imports and exports, customs dossiers and documents relevant to imports and exports on the basis of results of analysis of information and assessment of law observance by customs declarants and taxpayers, giving priority to and create favorable conditions to an extent that customs clearance will be given based on information in the e-customs declaration for those not falling into any of the following cases :

3.1. Failing to comply with the customs law;

3.2. Showing signs of violation of the customs law;

3.3. Analysis and assessment results showing a high risk level.

4. Grounds and competence for deciding on forms and levels of inspection:

4.1. Grounds for deciding on forms and levels of inspection:

a/ Legal provisions on customs inspection of imports and exports;

b/ Results of information analysis and assessment of risks in the management of imports and exports; results of analysis of information and assessment of observance of the customs law by organizations and individuals conducting or involved in import and export activities;

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

d/ Random selection for assessment of law compliance by entities subject to customs management.

4.2. Competence to decide on forms and levels of inspection:

Directors of district-level Customs

Departments where e-customs procedures are carried out shall, within the ambit of their vested powers, decide on forms and levels of inspection, or, upon receiving information on signs of violation of the customs law, decide to change forms and levels of inspection suggested by the e-customs data processing system;

The decision on forms and levels of inspection by directors of district-level Customs Departments where e-customs procedures are carried out shall be expressed by deciding on updating or acceptance of risk files or made directly on the e-customs data processing system.

5. Imports or exports of owners that have repeatedly violated the customs law are subject to the level of inspection that all their customs dossiers must be examined and whole of goods lots be inspected.

6. Upon carrying out e-customs procedures, customs declarants shall uniformly use e-declarations and forms provided in Appendices I and II to this Circular (not printed herein).

Article 5. Risk management

1. Customs offices shall apply the risk management to the channeling of and decision on forms and levels of inspection of dossiers and physical inspection of imports and exports.

2. On the basis of risk management, documents required to be enclosed with e-customs declarations may be exempt from submission or production or must be produced or submitted to customs offices.

3. The application of risk management complies with the Minister of Finance's Decision No. 48/2008/QD-BTC of July 4, 2008, on application of risk management to professional customs operations.

The General Department of Customs shall specify the risk management in the channeling of and decision on forms and levels of inspection of dossiers and physical inspection of imports and exports and some other professional operations in support of the channeling of and decision on forms and levels of inspection regarding e-customs procedures, covering:

3.1. Preliminary verification of information in e-customs declarations;

3.2. Decision on imports or exports in border-gate transfer:

3.3. Permission for delayed submission of documents of customs dossiers;

3.4. Conversion of paper documents into electronic ones;

3.5. Sampling of imports or exports;

3.6. Inspection of norms of raw materials for processing or export production.

Article 6. E-customs declarants

1. E-customs declarants include:

1.1. Import or export owners (including foreign traders not present in Vietnam but having certificates of registration of the right to import or export goods under law);

1.2. Organizations entrusted by import or export owners;

1.3. Agenis carrying out customs procedures.

2. Registration for participation in e-customs procedures

2.1. Customs declarants shall register their participation in e-customs procedures in the form "Registration for participation in e-customs procedures" and submit it to district-level Customs Departments where e-customs procedures are carried out.

Agents carrying out e-customs procedures may register participation in e-customs procedures for import or export owners that authorize them to do so.

2.2. Within 8 working hours after receiving properly completed forms of registration, district-level Customs Departments where e-customs procedures are carried out shall notify their acceptance of these registrations; in case of rejection, they shall clearly state the reason.

The transmission of information on accounts for access to the e-customs data processing system to customs declarants must follow a confidential process.

2.3. Customs declarants shall keep these accounts confidential for use in conducting transactions with customs offices through the e-customs declaration system or the backup e-customs declaration system.

2.4. Accounts for access to the e-customs data processing system are valid for conducting transactions or carrying out customs procedures with all district-level Customs Departments where e-customs procedures are carried out.

Article 7. Rights and obligations of customs declarants and taxpayers

1. To exercise the rights and perform the obligations provided in Article 23 of the Customs Law; Articles 6, 7 and 30 of the Tax Administration Law; tax laws; Article 4 of the Government's Decree No. 85/2007/ND-CP of May 25, 2007, detailing the Tax Administration Law; Decree No. 27/2007/ND-CP of February 23, 2007, on e-transactions in financial activities; and Clause 3, Article 1 of the Prime Minister's Decision No. 103/2009/QD-TTg of August 12, 2009.

2. When carrying out e-customs procedures, customs declarants shall use digital signatures.

In case digital signatures are unavailable, customs declarants may use accounts for access to the e-customs data processing system to carry out e-customs procedures and take responsibility for e-transactions under law.

3. To provide information and create conditions for customs offices to access the e-customs declaration system for examination and inspection purposes.

4. To pay the fee for completion of customs procedures and other charges to be collected by customs offices on behalf of associations and organizations right before the customs clearance of goods or within the first 10 days of the month following the month of customs clearance of goods.

Article 8. Responsibilities and powers of customs offices and officers

1. To perform the responsibilities and exercise the powers provided in Article 27 of the Customs Law; Articles 8 and 9 of the Tax Administration Law; tax laws; and the Government's Decree No. 27/2007/ND-CP of February 23, 2007, on e-transactions in financial activities.

2. Customs officers who carry out customs procedures, or conduct inspection or supervision of imports and exports will bear no personal liability if they have strictly complied with this Circular and the General Department of Customs' guidance but detected no violation of the customs law.

Article 9. Customs dossiers

1. A customs dossier comprises:

1.1. An e-customs declaration (this declaration may be in paper form);

1.2. Enclosed documents, either in electronic or paper form.

2. E-documents:

2.1. E-documcnts are valid for the performance of e-customs procedures like their paper form;

2.2. E-documents may be converted from the paper form if the following conditions are satisfied: fully reflecting the contents of the paper document; the paper document bearing the certification "ALREADY CONVERTED INTO ELECTRONIC FORM" using the "specimen seal of certification of conversion into electronic form" to be appended on documents converted from paper form into electronic form, with signatures and full names of customs declarants. If customs declarants are legal entities, their lawful representatives shall sign paper documents already converted into e-documents.

When effecting the conversion, apart from required documents in customs dossiers, customs declarants shall keep converted e-documents under regulations.

3. E-customs declarations and enclosed documents in electronic form stored in the e-customs data processing system are legally valid for carrying out customs procedures or settling disputes when customs declarants use accounts for access to the e-customs data processing system for carrying out c-customs procedures.

Article 10. Time limits for filling in e-customs declarations and carrying out e-customs procedures

1. The time limit for a customs declarant to fill in an e-customs declaration for imports or exports is prescribed in Clauses 1 and 2, Article 18 of the Customs Law.

For imports, the date of their arrival at a border gate is the date indicated on the customs office's seal appended on the goods declaration (the manifest) in the dossier of means of transport on entry (by sea. air or railway) or the date indicated on the declaration of means of transport going through the border gate or the monitoring book of the means of transport.

2. The e-customs data processing system shall receive e-customs declarations 24 hours a day and 7 days a week. Customs offices shall examine and register e-customs declarations within working hours. The performance of customs procedures beyond working hours shall be considered and decided (on the basis of customs declarants' prior registrations) by directors of district-level Customs Departments where e-customs procedures are carried out.

3. Within the validity duration of their customs declarations specified in Clauses 1 and 2, Article 18 of the Customs Law, imports and exports are eligible for import and export management policies and tax policies applicable to imports and exports effective at the time customs offices accept registrations and grant customs declaration numbers.

Chapter II

CUSTOMS PROCEDURES FOR, CUSTOMS INSPECTION AND SUPERVISION OF, GOODS IMPORTED AND EXPORTED UNDER PURCHASE AND SALE CONTRACTS

Article 11. E-customs dossiers for goods imported and exported under purchase and sale contracts

1. E-customs dossier for exports:

1.1. E-customs declaration in electronic form;

When it is necessary to produce and submit the paper declaration at the request of competent agencies, the e-customs declaration and some enclosed documents, including the e-customs declaration of exports, annexes to the e-customs declaration of exports (if any) and a list (if any), shall be printed out according to set forms (not printed herein);

1.2. The purchase and sale contract or documents of equivalent legal validity: One original in electronic form or one copy in paper form; and one copy of export entrustment contract (in case of entrusted export);

The purchase and sale contract must be in Vietnamese or English. In case it is written in another language, the customs declarant shall enclose the Vietnamese translation and take responsibility before law for the content of this translation.

1.3. In the following specific cases, an e-customs dossier for exports must additionally comprise the following documents:

a/ Official bill of lading (the last document received by the consignor from the carrier. In case of credit payment, this document is accepted by banks for payment): One copy of the original or master copy of the bill of lading or the financial invoice for goods sold to an export processing enterprise in case the customs declarant requests the customs office to certify actual exportation;

b/ Detailed list of goods, for goods of different kinds or packages: One original;

c/ Export permit issued by a competent state management agency, for goods subject to export licensing as prescribed by law: One original for a single exportation, or one copy for multiple exportation, together with the original for comparison and making of a conciliation monitoring slip;

d/ In case of goods exempt from export tax, there must be:

d.1/ A list of tax-free goods enclosed with a conciliation monitoring slip already registered with the customs office. For cases subject to list registration under Clause I. Article 101 of Circular No. 79/2009/TT-BTC of April 20, 2009: To submit one copy and produce the original for comparison and conciliation;

d.2/ A bid wining or contractor appointment notice enclosed with a goods supply contract, indicating the bid-winning price or price of goods to be supplied exclusive of export duty (for winners of an export bidding); and a contract on entrusted export of goods, indicating the price of goods to be supplied under this contract exclusive of export duty (in case of entrusted export): To submit one copy and produce the original for comparison;

d.3/ Other papers evidencing the eligibility of exports for tax exemption;

d.4/ A list of documents in the dossier of application for tax exemption.

e/ Other documents as prescribed by relevant laws: One copy each.

2. E-customs dossier for imports:

2.1. E-customs declaration: One in electronic form;

When it is necessary to produce and submit the paper declaration at the request of competent agencies, the e-customs declaration and some enclosed documents, including the e-customs declaration of exports, annexes to the e-customs declaration of exports (if any) and a list (if any), shall be printed out according to set forms (not printed herein);

2.2. The purchase and sale contract or documents of equivalent legal validity: One original in electronic form or copy: and one copy of the import entrustment contract (in case of entrusted import) to be submitted;

The purchase and sale contract must be in Vietnamese or English. In case it is written in another language, the customs declarant shall enclose the Vietnamese translation and take responsibility before law for the content of this translation.

2.3. Invoice in electronic form or one original;

2.4. Official bill of lading (except for goods purchased or sold between non-tariff areas and the inland): One electronic copy converted from the paper form; and one copy of the original or master copy on which appears the word "copy";

For goods imported via international post, if there is no bill of lading, the customs declarant shall provide information on the code of the postal parcel or item or use a list of postal parcel or item drawn up by the post office.

For goods imported for petroleum exploration and exploitation and transported by service ships other than commercial ships, cargo manifests shall be used instead of bills of lading.

2.5. In the following specific cases, an e-customs dossier for imports must additionally comprise the following documents:

a/ Detailed list of goods, for goods of different kinds or packages: One electronic copy or one original or one facsimile, telex or telegraph copy or one copy in another form prescribed by law;

b/ For imports on the list of products and goods subject to quality inspection, food hygiene and safety inspection or animal and plant quarantine: One original of the paper of registration for or the notice of exemption from inspection or the notice of results of inspection issued by a competent state inspection agency:

c/ Certificate of assessment, for goods cleared on the basis of assessment results: The electronic copy or one original;

d/ Import value declaration, for goods subject to value declaration: The e-declaration;

e/ Import permit issued by a competent state agency, for goods subject to import licensing as prescribed by law: One original for a single importation, or a copy for multiple importation, together with the original for comparison and making of u conciliation monitoring slip;

f/ Certificate of origin (C/O), the electronic copy or one original in the following cases:

f.1/ Goods originating from a country or a group of countries signing an agreement on application of particularly preferential tax rates with Vietnam (except for imports of a FOB value not exceeding USD 200) under Vietnamese law and under treaties to which Vietnam is a contracting party, in case importers wish to enjoy these preferential tax rates;

f.2/ Imports announced by Vietnam and international organizations to likely harm the social safety, community health or environmental sanitation and required to be placed under control;

f.3/ Goods imported from countries announced by Vietnam to be subject to application of anti-dumping tax, anti-subsidy tax. anti-discriminatory treatment tax, countervailing tax, tariff quotas;

f.4/ Imports subject to import management under the Vietnamese law or bilateral or multilateral treaties to which Vietnam is a contracting party.

C/Os already submitted to customs offices may neither be modified nor replaced, unless they are modified or replaced by agencies or organizations competent to issue these C/Os within a time limit prescribed by law. In case agreements on origin require C/O copies to be additionally submitted, these agreements shall be complied with.

g/ For goods eligible for import tax exemption as specified in Article 100 of Circular No. 79/2009/TT-BTC of April 20, 2009, there must be:

g.1/ A list of tax-free goods enclosed with a conciliation monitoring slip already registered with the customs office. For cases subject to list registration under Clause 1, Article 101 of Circular No. 79/2009AT-BTC of April 20, 2009: To submit one copy and produce the original for comparison and conciliation;

g.2/ A bid wining or contractor appointment notice enclosed with a goods supply contract indicating the bid-winning price or price of goods to be supplied exclusive of import duty (for winners of the import bidding); and a contract on entrusted import of goods indicating the price of goods to be supplied under this contract exclusive of import tax (for entrusted import): To submit one copy and produce the original for comparison upon first-time importation;

g.3/ Other papers evidencing the eligibility of imports for tax exemption;

g.4/ A list of documents of the dossier of application for tax exemption.

h/ The declaration certifying non-refundable aid issued by a finance agency defined in the Ministry of Finance's Circular No. 82/2007/TT-BTC of July 12,2007, guiding the state financial management of foreign non-refundable aid constituting a state budget revenue, for non­refundable aid goods free from import tax, excise tax and value-added tax: To submit one original.

In case the owner of a non-refundable ODA project or the principal contractor implementing a non-refundable ODA project is not liable to import duty, export duty, value-added tax and excise tax under tax laws, there must additionally be a bid wining or contractor appointment notice enclosed with a goods supply contract indicating the bid-winning price or price of goods to be supplied exclusive of import tax (for winners of the import bidding); and a contract on entrusted import of goods indicating the price of goods to be supplied under this contract exclusive of import tax (for entrusted import): To submit one copy and produce the original for comparison.

i/ The paper of registration of livestock breed or plant variety trading issued by a state management agency for livestock breeds or plant varieties not liable to value-added tax: To submit one copy and produce the original for comparison;

j/ For goods not liable to value-added tax which are domestically unavailable machinery, equipment and supplies and need to be imported for direct use in scientific research and technological development; domestically unavailable machinery, equipment, spare parts, special-use means of transport and supplies which need to be imported for oil and gas search, exploration and field development; domestically unavailable aircraft, drilling platforms and ships which need to be imported to create fixed assets of enterprises or hired from foreign parties for use in production or business or for sub-lease, there must be:

j.1/ A bid winning notice or contractor appointment notice and contracts on sale of goods to enterprises according to bidding results (clearly indicating the prices of goods to be paid exclusive of value-added tax) for goods not liable to value-added tax imported by the bid winner or appointed contractor: To submit one copy and produce the original for comparison upon first-time importation;

j.2/ A competent agency's document assigning the task to organizations to implement programs, projects, scientific research and technological development schemes, or a scientific and technological contract between the party placing and the party undertaking the order of the contract performance enclosed with a written certification of the representative of the enterprise or the head of the scientific research institution and a commitment to directly using imported goods for scientific research and technological development in case goods are imported for scientific research and technological development: To submit one original;

j.3/ The certification and commitment by the representative of the enterprise of the use of domestically unavailable machinery, equipment, spare parts, special-use means of transport and supplies which need to be imported for oil and gas search, exploration and field development: To submit one original;

j.4/ The certification and commitment by the representative of the enterprise of 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 parties for use in production or business and for sublease: To submit one original.

j.5/ Hire contract with the foreign party in case of hire of an aircraft, drilling platform or ship which is domestically unavailable for use in production or business or sublease: To produce one original.

k/ The written certification that goods are imported in direct service of national defense by the Ministry of National Defense or of public security by the Ministry of Public Security, for imports being weapons or special-use military equipment for direct use in national defense or public security and not liable to value-added tax: To submit one original;

l/ The paper of registration of supplies and raw materials imported for direct use in production of goods for domestic consumption, for import of goods on the list of consumer goods promulgated by the Ministry of Industry and Trade but to be used as supplies and raw materials for the production of goods for domestic consumption. Enterprises wishing to be eligible for the 30-day tax payment time limit shall, before importation, make registration according to a set form with district-level Customs Departments where e-customs procedures are carried out. Upon carrying out customs procedures, the customs declarant is not required to submit this registration paper but the customs office shall use the one it keeps;

m/ Other necessary documents required by relevant laws: The electronic copy or one copy each.

3. For copies of documents specified in this Article, the trader head or his/her authorized person shall certify them by signing their names and appending the seal to and take responsibility before law for the legality of these papers.

Article 12. E-customs declaration

When making e-customs declaration, customs declarants shall:

1. Create information on e-customs declaration and value declaration (for goods subject to value declaration under current regulations) on the e-customs declaration system strictly according to the specified items and standard format and take responsibility before law for the declared information.

If customs declarants are customs procedure agents, they shall clearly declare the jobs they are authorized to perform.

Goods imported or exported by different modes shall be declared on the import or export declaration corresponding to each mode.

For imports and exports eligible for lower tax rates against regulations or for particularly preferential tax rates, customs declarants shall clearly declare the regulations under which these lower tax rates or particularly preferential tax rates are applicable. This shall be declared in the item "other notes" of the e-customs declaration.

2. Send the e-customs declaration to the customs office.

3. Receive feedback from the customs office and comply with its guidance:

3.1. Receive the "notice of rejection of the e-customs declaration." and modify and supplement the e-declaration under the guidance of the customs office, and re-send the modified and supplemented declaration to the customs office.

3.2. Receive the "decision on the form and level of inspection" and the "notice of instructions on customs procedure performance" in any of the following forms and perform the following jobs:

a/ Accepting the information in the e-customs declaration permitting "customs clearance" or "release of goods" or "transport of goods to the place of preservation."

a.1/ The customs declarant shall print out the declaration, sign and append a seal thereon (2 copies) (below referred to as the printed e-customs declaration) based on the e-customs declaration accepted by the customs office; the annex to the e-customs declaration (2 copies), if the imports or exports are of 4 or more different kinds; and lists (2 copies, if any);

a.2/ The customs declarant shall produce to the district-level Customs Department where e-customs procedures are carried out 2 printed e-customs declarations for certification of "customs clearance" or "release of goods" or "transport of goods to the place of preservation," and receive back one printed e-customs declaration for production together with goods in the zone of customs supervision for certification that "goods have gone through the zone of customs supervision" for further carrying out procedures;

The customs declarant may produce one printed e-customs declaration together with goods for certification that "goods have gone through the zone of customs supervision" at the zone of customs supervision connected with the e-customs data processing system. Printed e-customs declarations containing the certification that "goods have gone through the zone of customs supervision" shall be used as negotiable documents for imports and further carrying out procedures for exports.

Within a time limit prescribed by the law on archive of customs dossiers for imports and exports, if wishing to obtain the certification of "customs clearance" on the printed e-customs declaration, the customs declarant shall produce 2 printed e-customs declarations (one with the certification that "goods have gone through the zone of customs supervision") to the district-level Customs Department receiving and processing e-customs dossiers for certification of customs clearance.

b/ Submitting e-documents in e-customs dossiers for inspection before customs clearance is permitted

The customs declarant shall create information in e-customs documents as requested on the e-customs declaration system and transmit it to the customs office via the e-customs data processing system and receive the "decision on the form and level of inspection" and the "notice of instructions on customs procedure performance" in any of the following forms and perform the following jobs:

b. 1/ "Customs clearance" or "release of goods" or "transport of goods to customs declarant's place for preservation": The customs declarant shall perform the jobs specified in Items a.1 and a.2. Paragraph a. Point 3.2, Clause 3 of this Article;

b.2/ Producing or submitting paper documents in the e-customs dossier for inspection: The customs declarant shall perform the jobs specified in Item c. Point 3.2, Clause 3 of this Article;

b.3/ Producing or submitting paper documents in the e-customs dossier and goods for inspection: The customs declarant shall perform the jobs specified in Item d, Point 3.2, Clause 3 of this Article;

c/ Producing or submitting paper documents in the e-customs dossier for inspection before customs clearance is permitted:

To submit or produce 2 printed e-customs declarations together with documents in the customs dossier to the district-level Customs Department where e-customs procedures are carried out for inspection as requested; to receive one printed e-customs declaration for which a decision on "customs clearance" or "release of goods" or "transport of goods to customs declarant's place for preservation" has been issued and one slip showing results of inspection of paper documents for production together with the goods at the zone of customs supervision for inspection and certification that "goods have gone through the zone of customs supervision" and further carrying out procedures.

d/ Producing or submitting paper documents in the e-customs dossier for inspection:

To submit or produce 2 printed e-customs declarations together with documents in the customs dossier as requested; and imports or exports for inspection by the district-level Customs Departments where e-customs procedures are carried out, then receive them back and perform the following jobs:

d.1/ One printed e-customs declaration for which a decision on "permission for imports or exports to be transferred from border gate" has been issued and one slip showing results of inspection of paper documents to be produced together with the goods at the zone of customs supervision for inspection and certification that "goods have gone through the zone of customs supervision" for use as negotiable documents for imports in border-gate transfer.

d.2/ One printed e-customs declaration for which a decision on "customs clearance" or "release of goods" or "transport of goods to customs declarant's place for preservation" has been issued and one slip showing results of inspection of paper documents and one slip showing results of physical inspection of goods to be produced together with the goods at the zone of customs supervision (except for goods specified in Item d.l. Point d. Clause 3 of this Article) for inspection and certification that "goods have gone through the zone of customs supervision" for use as negotiable documents, for imports which have been physically inspected at the border gate, and further carrying out procedures for exports, or for keeping by the customs declarant.

e/ For goods permitted by the district-level Customs Department where e-customs produces are carried out for "release of goods" or "transport of goods to customs declarant's place for preservation" as specified in Items a. b, c and d of this Point, the customs declarant shall, after the clearance of goods or transport of goods to a place of transport, further satisfy requests of the customs office for completion of customs clearance procedures.

4. In case the certification of actual exportation is required for an export lot, the customs declarant shall additionally declare information on the official bill of lading or the financial invoice (for exports brought into export processing enterprises) and receive the "notice of actual exportation" from the customs office.

5. The customs declarant may delay the submission/production of the originals of some documents in the customs dossier, except the export or import permit for goods subject to export or import licensing as prescribed by law. and shall declare the late submission on the e-customs declaration. The customs declarant shall declare or submit or produce documents at the request of the customs office within 30 days from the date of registration of e-customs declarations.

The director of the district-level Customs Department where e-customs procedures are carried out shall decide whether to permit late submission of documents.

6. Making of incomplete e-customs declarations

6.1. The customs declarant may make an incomplete e-customs declaration (according to the items and standard format specified in Clause 1 of this Article) for carrying out customs procedures when fully meeting the following conditions:

a/ The customs declarant shall still declare incomplete information on the basis of existing documents in the e-customs dossier;

b/ The commodity code identified in the incomplete declaration must be the same as that to be filled later in the complete e-customs declaration. If the identification of commodity codes requires analysis and survey of imports or exports, the director of the district-level Customs Department where e-customs procedures are carried out may make decision on a case-by-case basis;

c/ Information directly relating to the goods which must be fully declared includes: information on the import permit or export permit, if the imported or exported goods are subject to such permit, and on the satisfaction of import or export conditions on goods subject to conditional import or export as prescribed by law; information on animal and plant quarantine, food safety and hygiene and quality standards subject to inspection by specialized state management agencies before customs clearance.

6.2. The customs declarant shall complete the e-customs declaration under Clause 1 of this Article immediately after obtaining full information on the imported or exported goods on the basis of documents in the customs dossier which must be available within the time limit prescribed by law, for completing e-customs procedures.

6.3. Directors of district-level Customs Departments where e-customs procedures are carried out shall decide whether to accept incomplete e-customs declarations on a case-by-case basis.

Article 13. Modification of declarations and supplementation of customs dossiers

1. Modification of declarations and supplementation of customs dossiers shall be made in the following cases:

1.1. Modification or supplementation of a customs dossier before the physical inspection of goods is conducted or before a decision on exemption from physical inspection is issued;

1.2. Modification or supplementation of an e-customs declaration after the "clearance of goods" or "release of goods" or "transport of goods to customs declarant's place for preservation" but no later than 60 days before the customs office conducts post-customs clearance inspection, provided such modification or supplementation does not affect the application of the import and export management policy and tax policy to the imported or exported goods;

1.3. Additional declaration of a customs dossier within 60 days from the date of registration of the customs declaration with respect to erroneous details affecting the payable tax amount, provided the following conditions are fully satisfied:

a/ Errors are detected and voluntarily reported by the taxpayer or the customs declarant to the customs office;

b/ The additional declaration is made within 60 days after the date of registration of the customs declaration and before the customs office conducts tax examination or inspection at the taxpayer's office;

c/ The errors are related to the calculations of the payable tax amount, the value, origin, code, tax rate or payable tax amount in the customs dossier submitted to the customs office;

d/ The customs declarant or taxpayer has sufficient grounds to prove, and the customs office has sufficient grounds and conditions for inspection and verification of, the truthfulness, accuracy and legality of the additional declaration.

2. Modification or supplementation of declarations covers:

2.1. Additional declaration of information to serve as a basis for identifying bases and elements for tax calculation or tax-free goods; or identifying goods eligible for tax exemption, consideration for tax exemption, reduction, refund or non-collection;

2.2. Additional declaration of the payable tax amount, paid tax amount, underpaid or overpaid tax amount (if any), fine amount for delayed payment of the additionally declared tax amount (if the taxpayer pays the additionally declared tax amount beyond the tax payment time limit) for each goods item and for the whole customs declaration; guarantee for the accuracy and legality of additionally declared documents and dossier;

2.3. Modification or additional declaration of other information on the customs declaration.

3. Procedures for modification or supplementation:

When making modification or supplements under Clause 1 of this Article, the customs declarant shall fill modified and supplemented information in the e-customs declaration, clearly stating the reason for modification or supplementation, and send it to the customs office, receive the "notice of instructions on e-customs procedure performance," and comply with requests in this notice.

In case the production or submission of paper copies is requested by competent agencies, the e-customs declaration and some documents shall be printed out according to set forms, including:

- The e-customs declaration and annexes thereto (if any) and a list (if any);

- The additional e-customs declaration in case the customs office has certified that "the goods have gone through the zone of customs supervision" or "customs clearance" or "release of goods" or "transport of goods to customs declarant's place for preservation" or "goods in border-gate transfer."

4. Processing of modified or supplemented dossiers:

Upon receiving modified or additionally declared information, the customs office shall perform the channeling by either of the following modes:

4.1. Permission for modification or supplementation based on the declared information;

4.2. Examination of the modified or supplemented dossier before deciding whether to permit the modification or supplementation.

Upon receiving a modified or supplemented dossier, a customs officer shall:

a/ Check the completeness and accuracy of the modified or supplemented dossier and notify checking results on a "notice of instructions on e-customs procedure performance". In case the additionally declared information is printed out on paper documents, the customs office shall return one copy to the customs declarant and keep another copy;

b/ Notify results of checking the modified or supplemented dossier within the following time limit:

b.1/ Within 8 working hours after receiving the complete modified or supplemented dossier in case the modification or supplementation is made before the customs office inspects the goods or decides to exempt the goods from physical inspection.

b.2/ Within 5 working days after receiving the complete supplemented dossier in case the supplementation is made within 60 days after the date of registration of the customs declaration and before the customs office conducts tax examination or inspection or post-customs clearance inspection at the office of the customs declarant or taxpayer.

Directors of district-level Customs Departments where e-customs procedures are carried out shall consider and decide whether to permit the modification or supplementation of e-customs dossiers.

5. If the customs declarant or taxpayer detects by him/herself errors in the submitted customs dossier (related to the calculation of the payable tax amount, the value, origin, code, tax rate or payable tax amount or information in the declaration) and voluntarily reports these errors to the customs office before the latter conducts tax examination or inspection or post-customs clearance inspection at the office of the customs declarant or taxpayer but after 60 days from the date of registration of the customs declaration; or the customs declarant or taxpayer has sufficient grounds to prove, and the customs office has sufficient grounds and conditions for inspection and verification of, the truthfulness, accuracy and legality of the declaration, the case shall be dealt with as follows:

5.1. The customs declarant or taxpayer shall make the declaration as in the case of additional declaration guided in Clause 1 of this Article; and perform the jobs specified in Clause 3 of this Article, and abide by the customs office's sanctioning decision:

5.2. The customs office shall receive and examine the declaration dossier of the customs declarant or taxpayer as in the case of additional declaration guided at Point 4 of this Article; and sanction the administrative violation under regulations and further carry out prescribed procedures.

Article 14. Cancellation of customs declarations

1. Cases of cancellation of a customs declaration:

1.1. The e-customs declaration has been registered but past 15 days after the date of registration of the customs declaration no e-customs dossier is produced in case the production of an e-customs dossier is required;

1.2. Past 15 days after the date of registration of the customs declaration, the customs declarant fails to produce his/her imports or exports which are subject to physical inspection to the customs office for inspection.

1.3. The customs declaration has been registered and the goods are exempt from physical inspection but past 15 days after the date of registration of the customs declaration, no goods is imported or exported, specifically:

a/ Past 15 days after the date of registration of the customs declaration of exports, the customs declarant fails to bring the goods to the zone of customs supervision for export (or to the border gate of exportation);

b/ Past 15 days after the date of registration of the customs declaration of imports, no goods have arrived at the border gate of importation.

1.4. The e-customs declaration has been registered but the e-customs data processing system encounters a problem or there are problems outside the e-customs data processing system, rendering it impossible to further carry out e-customs procedures;

1.5. The customs declarant requests cancellation of the registered customs declaration.

2. Upon canceling the declaration in the cases specified in Clause 1 of this Article, the customs declarant shall create information on declaration cancellation according to the standard format provided in the form of information on declaration cancellation, clearly stating the reason, then send it to the customs office and receive the "notice of instructions on e-customs procedure performance," and comply with requests in this notice.

Directors of district-level Customs Departments where e-customs procedures are carried out shall consider and decide whether to permit the cancellation of e-customs declarations.

3. Order and procedures for cancellation of customs declarations:

3.1. The customs office shall effect the cancellation and retain all data of the registered declaration on the e-customs data processing system;

3.2. The customs declarant shall submit to the customs office one customs declaration: annexes of the declaration, manifests, slip of examination of the paper dossier and slip of inspection of goods (if any) in case the printed e-customs declaration has obtained the certification of "customs clearance" or "release of goods" or "transport of goods to customs declarant's place for preservation" or "goods in border gate transfer";

To cancel a printed e-customs declaration, customs officers shall cross it out in red ink, sign and append the officer seal thereon.

3.3. The customs office shall keep cancelled printed e-customs declarations (if any) according to their registration serial numbers.

Article 15. Replacement of customs declarations

1. Replacement of customs declarations shall be made only in case the mode of import or export changes and before the declared goods are brought out of the zone of customs supervision.

2. Upon the replacement of a customs declaration under Clause 1 of this Article, the customs declarant shall create information on declaration replacement according to the standard format provided in the form of information on declaration replacement, clearly stating the reason, then send it to the customs oflice and receive the "notice of instructions on e-customs procedure performance," and comply with requests in this notice.

Directors of district-level Customs Departments where e-customs procedures are carried out shall consider and decide whether to permit the replacement of e-customs declarations.

3. Order and procedures for replacement of customs declarations:

3.1. The customs office shall cancel the registered declaration on the e-customs data processing system under Clause 3. Article 14 of this Circular;

3.2. The customs declarant shall fill in a new e-customs declaration with another mode of import or export in replacement of the cancelled declaration.

Article 16. Examination and receipt of registration of e-customs declarations

1. The e-customs data processing system shall check and receive registration of e-customs declarations.

If so requested by the system, a customs officer shall preliminarily check the information declared by the customs declarant, specifically:

1.1. Checking the goods name, unit of calculation and code:

a/ The goods name must be complete and fully contain the sign, code, brand and origin of goods. The goods name to be declared is the ordinary trade name accompanied with the basic features of the goods, such as composition, material(s), ingredient, concentration, capacity, size, design, utility and brand, enabling the classification and identification of elements affecting or relating to the determination of the taxable value of the goods.

For example: For a motorcycle or car. there must be information on its brand, manufacturer, country of manufacture, design, cylinder capacity, model and other signs and codes;

b/ Unit of calculation: The goods must be clearly quantified according to units of measurement (m, kg, etc.). In case the goods cannot be quantified (carton, box, etc.), they shall be converted into an equivalent unit of calculation (number of boxes in a carton, number of kilos, packs or pieces in a box. etc.);

c/ Checking the compatibility between names and codes of imports or exports.

1.2. Checking the full declaration of items on an e-customs declaration.

The customs officer shall base him/herself on results of examination to decide whether to accept the registration via the e-customs data processing system.

2. In case of rejection, the customs office shall send a "notice of rejection of e-customs declaration" clearly stating the reason.

3. In case of acceptance, the customs office shall issue an e-customs declaration number and channel the declaration in one of the following forms:

3.1. Acceptance of declared e-customs information and permission for "customs clearance" or "release of goods" or "transport of goods to customs declarant's place for preservation".

3.2. Submission of e-documents in the e-customs dossier for examination before permitting the customs clearance of goods. Customs officers shall receive and examine the documents, upload results of examination in the e-customs data processing system; and decide on the customs clearance of goods or forward these documents to other stages of professional operation under regulations.

3.3. Production or submission of paper documents in the e-customs dossier for examination prior to permission for the customs clearance of goods. Customs officers shall receive and check paper documents and upload results of examination in the e-customs data processing system; print out 2 slips of results of examination of paper documents according to the form "slip of results of examination of paper documents," sign and append the officer seal thereon and request the customs declarant to sign and write his/her full name on these slips; and hand one slip to the customs declarant together with one printed e-customs declaration and keep the other slip in the dossier. They shall decide on customs clearance of goods or forward the dossier to other stages of professional operation under regulations.

3.4. Production or submission of paper documents in the e-customs dossier and goods for inspection

Customs officers shall receive and examine paper documents in the e-customs dossier under Clause 3.3 of this Article.

Customs officers shall inspect goods and upload results of inspection in the e-customs data processing system; print out 2 slips of results of inspection of goods according to the form "slip of results of inspection of goods," sign, append the officer seal and request the customs declarant to sign and write his/her full name on these slips; and hand one slip to the customs declarant together with one printed e-customs declaration and keep the other slip in the dossier. They shall decide on customs clearance of goods or forward the dossier to other stages of professional operation under regulations.

Article 17. Management of import permits or export permits

1. E-customs declarants may choose the mode of producing permits to district-level Customs Departments where e-customs procedures are carried out for management, examination and conciliation monitoring directly on these permits or for management, examination and conciliation monitoring on the e-customs data processing system.

2. Management, examination and conciliation monitoring of import permits or export permits on the e-customs data processing system

2.1. Before, or when filling in an e-customs declaration for importing or exporting the first goods lot under an import or export permit (or an extract of the import or export permit already registered at another district-level Customs Department), the customs declarant shalI declare the permit according to the items and standard format in a set form provided in Appendix I to this Regulation (not printed herein).

When declaring an import or export permit, the customs declarant shall provide the codes of all goods stated in the permit according to the Import and Export Tariffs. If the permit does not specify each kind of goods according to the Import and Export Tariffs, the customs declarant shall determine reference codes for the goods in the permit. These reference codes shall be used for all import or export declarations under the permit until the permit expires. When filling in an e-customs declaration for imports or exports, the customs declarant shall declare reference codes for relevant imports or exports.

If requested by customs offices, customs officers shall check permits. If accepting these permits, they shall give certification in the e-customs data processing system and keep these permits at district-level Customs Departments where e-customs procedures are carried out. for single import or export permits, or give certification "E-customs procedure performance registered, not for use for performance of customs procedures at another district-level Customs Department," sign and append the officer seal on the import or export permits, then return them to customs declarants for multiple import or export permits.

Import or export permits already registered at a district-level Customs Department where e-customs procedures are carried out must not be used for the performance of customs procedures at another district-level Customs Department. If they have to perform customs procedures at another district-level Customs Department, customs declarants shall use a permit extract. A permit extract may be used for a specific goods lot or for the whole period, depending on the customs declarant's import and export plan. The other district-level Customs Department shall monitor permit extracts, issue monitoring slips and make conciliation under current regulations.

When they need permit extracts, customs declarants shall fill in these permit extracts and send them to district-level Customs Department where e-customs procedures are carried out. In case the declared information is accepted, custosm declarants shall print out permit extracts according to the form "permit extract", sign and append the seal thereon and produce these extracts to customs offices which receive and process e-declarations.

2.2. District-level Customs Departments where e-customs procedures are carried out shall monitor import or export permits of customs declarants based on codes of goods according to the Import and Export Tariffs or reference codes identified by customs declarants and the contents of these permits.

Heads of customs procedure teams shall decide on acceptance of permit extracts, sign and append the officer seal thereon.

If rejecting declared information or a permit extract, customs offices shall issue a reply clearly stating the reason.

Article 18. Examination of e-customs dossiers

1. Form and extent of examination

1.1. Form of examination of a customs dossier: Examining paper documents on the e-customs data processing system (including those converted from paper documents); and examining paper documents;

1.2. Extent of examination: Exemption from examination; examination of one content of a dossier (for instance, code, customs value, etc.), one or all documents;

1.3. The form and extent of examination are determined under Clause 4, Article 4 of this Circular.

2. Examination contents

Examining declared contents on the e-customs declaration and documents in the e-customs dossier, comparing them with documents in the e-customs dossier; and checking their compliance with legal provisions.

Article 19. Physical inspection of goods

1. Form and extent of inspection

1.1. Form of physical inspection: inspection directly conducted by customs officers, by machines, technical devices and other professional measures;

1.2. Extent of inspection: exemption from inspection; inspection of part or the whole of goods lot;

1.3. The form and extent of inspection shall be determined under Clause 4. Article 4 of this Regulation.

2. Physical inspection contents

Checking the names, codes, quantities and weights, categories, quality and origin of goods; and checking I he compatibility of the actual status of goods with e-customs dossiers.

Article 20. Examination contents in the customs clearance process

1. Examination to identify names and codes of goods: Examination of names and codes of goods shall be conducted under the Ministry of Finance's Circular guiding the classification of imports and exports.

2. Examination to identify the quantity of goods

2.1. For ordinary goods items, the customs office shall use devices and equipment to check the quantity of goods. If detecting signs of a violation related to quantity and weight of goods, customs officers shall personally inspect the goods for accurate identification.

2.2. For goods items of which the quantity cannot be identified by the customs office's devices and equipment (container scanners, electronic scales and other measurement devices) or by inspecting customs officers (liquid and bulky goods, goods in massive quantities, etc.) or when there are grounds for ascertaining that examination cannot be conducted by the customs office's devices and equipment or by customs officers themselves, the customs office may use the results of assessment conducted by an assessment service provider to identify the quantity of goods.

Assessment service providers must meet all capability conditions prescribed by the Commercial Law and specific assessment requirements and shall take responsibility before law for their assessment results.

3. Examination to identify the quality of goods

3.1. For imports on the list of products and goods subject to quality inspection:

Customs offices shall carry out customs procedures on the basis of quality inspection registration papers or written notices of goods lots eligible for exemption from inspection (subject to documentary inspection only) or notices of quality inspection results, food hygiene and safety inspection results or quarantine results which are satisfactory for import.

3.2. For goods not on the list of products and goods subject to quality state inspection:

a/ If, though having used their means and equipment, the customs office cannot identify the quality of goods for the purpose of applying goods import and export management policies, or when there are grounds for ascertaining that examination cannot be conducted by the customs office's machines and technical equipment or by customs officers themselves, the customs office may reach agreement with the customs declarant on the selection of an assessment service provider to conduct assessment. The assessment service provider's conclusions are binding on the parties. Assessment may be conducted on samples or technical documents (catalogs, etc);

Assessment service providers must satisfy all capability conditions prescribed by the Commercial Law and specific assessment requirements and shall take responsibility before law for their assessment results.

b/ If the customs declarant and the customs office cannot reach agreement on selecting an assessment service provider, the customs officer may select a technical organization designated to conduct inspection in service of state management or an assessment service provider (in case the technical organization designated to conduct inspection makes a written refusal). Conclusions made by that technical organization or assessment service provider are binding on the parties. If the customs declarant does not agree with these conclusions, he/she may lodge a complaint in accordance with law.

4. Examination to identify the origin of goods

The examination of the origin of goods must be based on the actual conditions of goods, e-customs dossiers and information relating to goods and the provisions of Article 15 of the Government's Decree No. 19/2006/ND-CP of February 20, 2006, and relevant guiding documents. Examination results shall be handled as follows:

4.1. In case the actual origin of imports is different from that registered by the customs declarant but still within the country or territory which grants the most favored nation treatment to Vietnam, the customs office shall still apply the preferential tax rate under regulations but consider and handle the violation under law depending on its nature and severity;

4.2. If doubting the origin of goods, the customs office may request the customs declarant to supply additional documents as proof or request a competent authority of the country of exportation to give certification. The verification of the origin of goods must be completed within 150 days from the date the customs declarant submits a complete and valid dossier on the origin of goods. Pending the availability of verification results, the goods are not eligible for preferential tariffs but ordinary customs procedures may still be carried for their customs clearance.

The time limit for consideration and settlement of problems related to the origin of goods, consideration and acceptance of C/O is 365 days after the C/O is submitted to the customs office or after the customs office doubts about a fraud in the declaration of the origin of goods.

4.3. In case the customs declarant submits a C/O issued for the whole goods lot but imports only a part of this goods lot. the customs office shall accept this C/O for the part of actually imported goods.

5. Tax examination covers the following:

5.1. Examining the conditions for application of the tax payment time limit or tax enforcement measures under tax laws;

5.2. Examining the grounds for determining that the goods are tax-free in case the customs declarant declares that the goods is not subject to import tax. export tax, value-added tax or excise tax;

5.3. Examining the grounds for determining the goods' eligibility for tax exemption or reduction in case the customs declarant declares that the goods are entitled to tax exemption or tax reduction or exemption consideration.

5.4. Checking the tax bases so as to determine the payable tax amount and the calculation of the payable tax amount in case of imports or exports are liable to taxes on the basis of examination results specified in Clauses 1, 2, 3 and 4 of this Article, results of examination and determination of the taxable value under Article 21 of this Circular, current regulations on customs valuation for imports and exports and other relevant grounds.

Article 21. Customs value

Customs value of imports or exports shall be identified under the Ministry of Finance's Circular No. 40/2008/TT-BTC of May 21, 2008, guiding the Government's Decree No. 40/2007/ND-CP of March 16, 2007, prescribing the customs valuation of imports and exports. Particularly, the inspection of taxable value shall be conducted under the following provisions:

1. Inspection of taxable value in the customs clearance process

1.1. Principles on and objects of inspection:

a/ Subject to inspection are e-customs dossiers and documents related to the identification of taxable value of goods subject to examination of paper documents or physical inspection of goods.

b/ Inspection principles:

b.1/ Inspection principles are provided for at Point b. Clause 1, Section I. Part III of the Ministry of Finance's Circular No. 40/2008/TT-BTC of May 21, 2008.

b.2/ Form and extent of inspection:

On the basis of risk management, the form and extent of inspection of taxable value shall be decided at any of the following levels:

b.2.1/ Inspection of taxable value on the basis of information in the e-customs declaration or the value declaration.

b.2.2/ Inspection of taxable value on the basis of the printed e-customs declaration and enclosed paper documents.

b.3/ Competence to decide on the form and extent of inspection of taxable value, application of security amounts, consultation and implementation organization.

Directors of district-level Customs Departments where e-customs procedures are carried out shall decide on the form and extent of inspection of taxable value, application of security amounts, consultation and implemen­tation organization.

The decision by directors of district-level Customs Departments where e-customs procedures are carried out shall adhere to the principle for value risk management on the basis of the list of goods subject to price risk management and the list of key goods items promulgated together with the Ministry of Finance's Circular No. 40/2008/TT-BTC of May 21, 2008, or information available at the time of decision, which takes the following form:

- Decision on updating of the list of goods subject to price risk management and the list of key goods items in the e-customs data processing system for channeling customs dossiers; or

- Direct decision on the system when there is doubt about the taxable value.

1.2. Inspection of value:

a/ Inspection of the taxable value on the basis of information in the e-customs declaration, the value declaration and the price database at the time of value inspection.

a.1/ Inspection contents:

Inspection of all items in the e-customs declaration and the value declaration, especially the following items:

The goods name, which must fully contain the sign, code and brand, and be ordinary trade name, accompanied with the basic features of the goods, such as composition, materials, ingredient, concentration, capacity, size, design, utility, brand, origin, etc., enabling the classification and identification of elements affecting and related to the identification of the taxable value of goods in accordance with the items in the value declaration.

For example: For a motorcycle or car, there must be information on its brand, manufacturer, country of manufacture, design, cylinder capacity, model and other signs and codes.

Units of calculation: The goods must be clearly quantified according to units of measurement (m. kg, etc.). In case the goods cannot be clearly quantified (cartons, boxes, etc.), they shall be converted into equivalent units of calculation (number of boxes in a carton, number of kilos or packs or pieces in a box, etc.).

Inspection of the accuracy and truthfulness of the declared value under Point e, Clause 2, Section I, Part III of the Ministry of Finance's Circular No. 40/2008/TT-BTC of May 21, 2008.

a.2/ Handling of inspection results:

a.2.1. Acceptance of value

The customs office shall accept the taxable value when inspection results do not fall into the cases specified in Item a.2.2 of this Point.

In case inspection results lead to a doubt about a violation under Items a.4, a.5 and a.6. Point a. Clause 3, Section I, Part III of the Ministry of Finance's Circular No. 40/2008m--BTC of May 21, 2008, but there are insufficient grounds for making conclusions and there is no doubt about the price, the customs office shall still accept the price and forward its doubts about violation to the post-customs clearance stage.

a.2.2. Change of the channel of inspection of the taxable value to the level of inspection based on the printed e-customs declaration and enclosed paper documents in any of the following cases:

- The declared name of goods is unspecific or unclear under the above regulations;

- Violations are detected under Items a.4, a.5 and a.6, Point a, Clause 3, Section I, Part III of the Ministry of Finance's Circular No. 40/2008/TT-BTC of May21, 2008;

- There is a doubt about the price.

b/ Inspection of the taxable value on the basis of the printed e-customs declaration and enclosed paper documents shall be conducted under Section I, Part III of the Ministry of Finance's Circular No. 40/2008/TT-BTC of May 21, 2008.

2. Post-customs clearance inspection of the taxable value:

The post-customs clearance inspection of the taxable value shall be conducted under Section II, Part III of the Ministry of Finance's Circular No. 40/2008/TT-BTC of May 21, 2008.

Article 22. Taking of samples, preservation of samples, preservation of photos of imports or exports

1. Forms of sampling: Taking samples, photographing.

2. Cases in which sampling is required:

2.1. At the request of customs officers for customs declaration;

2.2. When it is necessary to take samples of raw materials and materials imported for export processing or production; processed products for export; returned exports for reprocessing (except for goods which cannot be sampled, hardly to be sampled, live or fresh goods, raw materials denatured after production process, precious metals and stones), for customs management purposes;

2.3. Samples of imports must be taken for analysis and testing at the request of the customs office.

3. The sampling shall be decided on a case-by-case basis by directors of district-level Customs Departments where e-customs procedures are carried out.

4. Sampling procedures:

4.1. Sampling shall be based on the customs declarant's or the customs office's written request. A sampling card shall be made in two copies, one to be kept together with the taken sample and the other kept by the sampling requester. The General Department of Customs shall set the form of sampling cards.

4.2. Samples shall be taken in the presence of representatives of the goods owner and the customs office; and signed by these representatives for certification and sealed up. In case of photographing, photos shall bear on their back side the serial number of the customs declaration, signed by the customs officer and be appended with a seal showing his/her identification number and be signed by the goods owner, and be filed in the customs dossier.

4.3. Upon handover of samples, a handover written record must be made and signed for certification.

4.4. Raw materials and materials imported for export processing or production which are permitted for border-gate transfer and are exempt from physical inspection but are subject to sampling must have samples taken at border-gate customs offices or manufacture plants, factories or establishments. The sampling shall be indicated in the printed e-customs declaration.

4.5. If the customs declarant requests sampling at a border gate, the district-level Customs Department or border-gate Customs Department shall take samples under regulations.

4.6. If the enterprise requests sampling at a manufacture plant, factory or establishment, it shall carry out procedures for border-gate transfer under regulations. The customs department receiving and processing the e-declaration shall take samples.

Samples shall be taken in a minimum necessary number

5. Samples shall be preserved at:

5.1. The analysis and classification center (for samples analyzed by the center):

5.2. The district-level Customs Department (for samples taken by the district-level Customs Department where e-customs procedures are carried out for performing sample-related operations; if samples are images, paper photos shall be preserved while e-photos stored in the e-customs data processing system);

5.3. The enterprise (for raw materials imported for exported processing and production; reprocessed goods).

6. Sample preservation duration

6.1. At the import and export analysis and classification center and district-level Customs Department where e-customs procedures are carried out, samples shall be preserved for 90 days from the date of customs clearance of goods. In case there is a dispute or complaint, they shall be preserved till the dispute or complaint is completely settled.

6.2. Samples of raw materials for export processing or production shall be preserved at the enterprise until the customs office completely liquidate the processing contract and the declaration of raw materials imported for export production.

Article 23. Transport of goods to the customs declarant's place for preservation

1. Cases in which goods are permitted to be transported to the customs declarant's place for preservation:

1.1. For goods subject to appraisal for determining whether they can be imported or exported and requested by their owners to be transported to the place for preservation, the customs office may accept such request only when all customs supervision conditions are satisfied;

1.2. For goods subject to animal and plant quarantine, food hygiene and safety inspection, goods quality inspection according to quality standards before their customs clearance and requested by their owners to be transported to the place for preservation, the customs office may accept such request, unless it is rejected by specialized state management agencies. Within 30 days from the date of transport of goods to the preservation place, the goods owner shall additionally declare in the customs dossier the notice of results of inspection or quarantine conducted by competent state inspection agencies.

2. The customs declarant shall fill in the item "other notes" in the e-customs declaration to request transport of goods to his/her place for preservation, and take responsibility for preserving the goods in their original conditions at his/her place.

3. The head of the customs procedure team of the district-level Customs Department where e-customs procedures are carried out shall decide whether to permit the customs declarant to transport goods to the latter's place for preservation. The decision shall be made on the e-customs data processing system.

4. Pursuant to decisions on transport of goods to places for preservation made on the e-customs data processing system, customs officers of the district-level Customs Department where e-customs procedures are carried out shall sign and append the officer seal in the box of certification of goods transported to preservation places on the printed e-customs declaration.

Article 24. Release of goods

1. Cases in which goods are permitted to be released:

Goods which are permitted for import or export but are subject to valuation, assessment, analysis and classification for determining payable tax amounts when their owners perform the tax obligations on the basis of self-assessment (added with the tax amount expected to be adjusted by the customs office, if any) in the case imports or exports are entitled to a tax payment grace period under tax laws or credit institutions or other institutions operating under the Law on Credit Institutions provide guarantee for payable tax amounts.

2. Heads of customs procedure teams of district-level Customs Departments where e-customs procedures are carried out shall decide on release of goods under Clause I of this Article. The decision shall be made on the e-customs data processing system.

3. Pursuant to goods release decisions made on the e-customs data processing system, customs officers of district-level Customs Departments where e-customs procedures are carried out shall sign and append the officer seal in the box of certification of release of goods on the printed e-customs declaration.

Article 25. Customs clearance of goods

1. Goods are cleared after customs procedures are completed

For goods on the list of those subject to animal and plant quarantine (announced by the Ministry of Agriculture and Rural Development), food hygiene and safety inspection (announced by the Ministry of Health) or goods quality inspection according to quality standards (announced by the

Ministry of Science and Technology) prior to customs clearance, they shall be cleared when there are written notices of results of quality inspection, food hygiene and safety inspection or quarantine showing that they satisfy all import conditions;

For other goods on the list of those subject to state quality inspection which are not required to obtain inspection results showing that they satisfy all import conditions before customs clearance, they shall be cleared when there are papers of registration for state quality inspection. Customs offices are not responsible for the quality of imported goods after customs clearance.

2. Goods for which customs procedures have not yet been completed may be cleared in any of the following cases:

2.1. The customs dossier lacks some original documents but the customs office agrees that they can be submitted later;

2.2. The payable tax amount is not yet paid or fully paid within the prescribed time limit but a credit institution or another institution operating under the Law on Credit Institutions provides guarantee for the payable tax amount, except for imports or exports eligible for a tax payment grace period as prescribed by tax laws.

3. Deciding competence:

3.1. Directors of customs offices receiving and processing e-customs declarations may make decision on customs clearance for goods lots exempt from customs inspection by deciding to upload the risk item in the e-customs data processing system within their decentralized competence.

3.2. Customs officers conducting examination of dossiers and physical inspection of goods may decide on customs clearance in the following cases:

a/ Results of dossier examination show that dossiers are lawful, for goods lots subject to inspection of e-customs dossiers.

b/ Results of physical inspection of goods show that the goods are consistent with declared information, for goods lots subject to physical inspection.

3.3. Heads of customs procedure teams of customs offices receiving and processing e-declarations may decide on customs clearance for goods lots not specified at Points 3.1 and 3.2 of this Article.

4. When requested by customs declarants, pursuant to decisions made on the e-customs data processing system, customs officers of customs offices receiving and processing e-declarations shall sign and append the officer seal in the box of certification of customs clearance on the printed e-customs declaration.

Article 26. Supervision of imports and exports subject to pilot implementation of e-customs procedures

1. Principles: Goods subject to customs super-vision and methods of customs supervision of exports and imports subject to pilot implementation of e-customs procedures comply with current regulations on supervision of exports and imports.

Customs declarants may search information on places of customs supervision already connected to the e-customs data processing system on the General Department of Customs website: http://www.customs.gov.vn.

2. Responsibilities of customs declarants

For exports and imports brought into or taken out of the zone of customs supervision, customs declarants shall:

2.1. For exports:

a/ Produce 01 printed e-customs declaration with the customs office's decision on or certification of "customs clearance":

b/ Produce the goods:

c/ Receive back 01 printed e-customs declaration with the certification that "goods have gone through the zone of customs supervision";

2.2. For imports:

a/ Produce 01 printed e-customs declaration with the customs office's decision on or certification of "customs clearance" or "release of goods" or "transport of goods to customs declarant's place for preservation" or "goods in border-gate transfer"; and the ex-warehousing slip of the enterprise;

b/ Produce the goods;

c/ Receive back 01 printed e-customs declaration with the certification that "goods have gone through the zone of customs supervision" and the documents produced.

3. Responsibilities of supervising customs offices

3.1. Border-gate Customs Departments shall supervise exports and imports under regulations. When detecting export or import lots showing signs of violation of the customs law, heads of border-gate Customs Departments shall decide to conduct physical inspection of the goods.

3.2. For exports and imports brought into or taken out of border gates, border-gate Customs Departments shall conduct inspection as follows:

a/ To check the validity of e-customs declarations:

b/ If the printed e-customs declaration does not have the certification of "customs clearance" or "release of goods" or "transport of goods to customs declarant's place for preservation" or "goods in border-gate transfer", customs officers shall compare the details in the printed e-customs declaration with those in the e-customs declaration in the e-customs data processing system.

c/ To check the actual state of the customs seal (if any) and the numbers of goods packages and bales against the e-customs declaration with the decision on or certification of "customs clearance" or "release of goods" or "transport of goods to customs declarant's place for preservation" or "goods in border-gate transfer" and the documents produced by customs declarants;

3.3. To process inspection results

If inspection results are satisfactory, inspecting officers shall give the certification that "goods have gone through the zone of customs supervision" in the import or export declarations; sign and append the officer seal thereon; and return them to customs declarants;

If inspection results are unsatisfactory, border-gate Customs Departments shall, on a case-by-case basis, guide customs declarants in making modifications or supplementations or handle the cases under current regulations.

For expired printed e-customs declarations, border-gate Customs Departments shall request customs declarants to come to the district-level Customs Departments where e-customs declarations are opened for carrying out procedures to cancel these declarations.

Article 27. Certification of actual export

1. Bases for certification of actual export:

1.1. Export e-customs declarations

1.2. Customs declarants shall, on a case-by case basis, produce any of the following documents:

a/ Official bill of lading of exports, for exported goods;

b/ Financial invoice or document certifying that goods have been brought into a non-tariff zone, for goods sold to export-processing enterprises or into a non-tariff zone;

c/ Results of border-gate Customs Departments' supervision of the export of goods through border gates.

2. Upon request of customs declarants, customs officers of the district-level Customs Departments where e-customs procedures are carried out shall conduct inspection and certify the actual export in the e-customs data processing system and in the printed e-customs declarations.

3. Customs offices receiving and processing e-declarations shall provide information on actual export according to the items and standard format to tax offices and competent agencies upon request.

4. Customs offices shall not certify the actual export of on-the-spot exports and imports. On-the-spot export and import declarations already cleared from customs procedures serve as a basis for ascertaining the actual export of goods.

Article 28. Re-inspection of customs dossiers

The re-inspection of customs dossiers may be conducted after goods lots have been cleared from customs procedures and shall be completed within 60 days from the date of issuance of decisions on customs clearance for the goods lots in the e-customs data processing system.

Article 29. Provisions on border-gate transfer

1. Goods in border-gate transfer

1.1. Exports in border-gate transfer mean exports currently subject to customs inspection and supervision which are transported from an outside-border-gate place of customs clearance or inland place of inspection to the border gate of exportation;

Exports exempt from physical inspection are not subject to border-gate transfer procedures.

1.2. Imports in border-gate transfer mean imports currently subject to customs inspection and supervision which are transported from the border gate of importation to an outside-border-gate place of customs clearance or to an inland place of goods inspection;

Imports exempt from physical inspection are not subject to border-gate transfer procedures (except those subject to sampling at outside-border-gate places).

1.3. Imports in border-gate transfer include:

a/ Equipment, machinery and supplies imported for building plants and works, which are brought to inland places of goods inspection which may be within construction sites or be warehouses in construction sites;

b/ Materials, supplies, details, machinery, equipment and accessories used for manufacture, which are brought to outside-border-gate places of customs clearance or places of goods inspection being plants or factories where manufacture is carried out;

c/ Imports of many owners sharing the same bill of lading, which are brought to a place of goods inspection or an inland container freight station;

d/ Goods temporarily imported for display at fairs and exhibitions, which are transported from a border gate of importation to the venue of a fair or exhibition; goods having been on display at a fair or exhibition, which are re-exported and transported from the venue of the fair or exhibition to the border gate of exportation;

e/ Goods being office equipment of enterprises, such as desks, chairs, cabinets and stationery packed in the same containers with materials imported for export processing and production, which are assets serving the operation of these enterprises, for which customs declarations have been registered with the customs offices where e-customs procedures are carried out for performing border-gate transfer procedures. Customs procedures comply with relevant regulations. Goods subject to inspection shall be physically inspected at the places indicated in the written requests for border-gate transfer.

f/ Imports of export-processing enterprises in export-processing zones, which are transported from the border gate of importation to an export-processing zone; and exports of export-processing enterprises in an export-processing zone, which are transported from the export-processing zone to the border gate of exportation;

g/ Imports brought into a bonded warehouse, which are permitted to be transported from the border gate of importation to a bonded warehouse, and goods consigned to a bonded warehouse which are exported and transported from the bonded warehouse to the border gate of exportation, provided they do not bear counterfeit marks or have names of Vietnamese origin; are not dangerous or polluting or are not banned from export or import, except the cases permitted by the Prime Minister.

h/ Imports with a bill of lading indicating a port of destination being an inland container depot (ICD)

h.1/ These goods may not be transported to a place of customs clearance or an outside-border gate place of goods inspection, except ICDs under the Region IV Sai Gon Port Customs Office of the Ho Chi Minh City Customs Department as permitted by the Prime Minister under the Government Office's Official Letter No. 7178/VPCP-KTTH of October 24, 2008.

h.2/ For imports of export-processing enterprises; materials, supplies, machinery and equipment imported for the performance of processing contracts; and materials and supplies imported for export production with bills of lading indicating a port of destination being an ICD, enterprises may carry out procedures for transporting them to district-level Customs Departments managing export-processing enterprises, district-level Customs Departments with which enterprises have registered processing contracts or district-level Customs Departments with which enterprises have registered import declarations for export production, to further carry out customs procedures. For goods subject to physical inspection, if enterprises request such inspection to be conducted right at the ICD, the ICD Customs Department shall inspect the goods after obtaining the request of district-level Customs Departments managing export-processing enterprises, district-level Customs Departments with which enterprises have registered processing contracts or district-level Customs Departments with which enterprises have registered import declarations for export production.

i/ Other goods in border-gate transfer as provided for by law.

2. Border-gate Customs Departments shall conduct physical inspection of goods in the following cases:

2.1. Upon detecting signs of violation of the customs law, or for facilitating customs management. Heads of border-gate Customs Departments shall decide on the form and level of physical inspection of goods.

2.2. Imports are eligible for border-gate transfer but subject to physical inspection at the border gate of importation under regulations of specialized management agencies.

2.3. At the request of the district-level Customs Departments where e-customs procedures arc carried out.

2.4. Results of inspection mentioned at Points 2.1, 2.2 and 2.3 shall be uploaded in the e-customs data processing system or, when connection to the e-customs data processing system fails, notified in writing to the district-level Customs Departments where e-customs procedures are carried out.

3. Registration of and decision on border-gate transfer of exports and imports

3.1. The registration of border-gate transfer of exports and imports shall be made simultaneously with or after e-customs declarations are made for goods export or import. Customs declarants shall fill relevant information in the declaration form "Request for border-gate transfer."

3.2. Decision permitting border-gate transfer (showing the place and time) or disallowing such transfer shall be expressed in the "notice of instructions on performance of customs procedures" in the system and in the printed e-customs declarations.

4. Supervision of exports and imports in border-gate transfer

4.1. Exports and imports in border-gate transfer must be kept in containers, cartons or bales or on vehicles satisfying customs sealing requirements.

For imports of which customs sealing is impossible (extra-long and extra-heavy goods) and which cannot be physically inspected at a border gate (goods with special preservation requirements), the district-level Customs Department of the border gate from which goods are transferred shall notify the district-level Customs Department of the place to which goods are transferred that goods are transported unsealed.

4.2. For small or individual goods lots which are not kept in containers or on vehicles satisfying customs sealing requirements, each bale of them shall be sealed.

5. Customs declarants shall use printed e-customs declarations with the customs office's permission for border-gate transfer as documents for en route transport of goods. They shall preserve the original conditions of goods and customs and carrier seals and ensure that the goods are transported according to the registered routes, places, border gates and time. They shall produce and submit customs dossiers and goods in border-gate transfer to the border-gate Customs Departments for carrying out procedures under regulations.

Article 30. E-customs procedures for exports and imports in case of suspended operation of the e-customs data processing system due to incidents occurring within or outside the system

1. Identification of incidents

1.1. Incident means a case in which the e-customs data processing system and the e-customs declaration system fail to make e-transactions between them, which is possibly caused by either or both of the systems or due to other problems rendering e-customs procedure performance impossible.

1.2. When impossible to carry out e-customs procedures in the e-customs declaration system, customs declarants shall notify the incidents to the district-level Customs Departments where e-customs procedures are carried out.

1.3. The district-level Customs Departments where e-customs procedures are carried out shall inspect and classify the incidents as occurring within or outside the e-customs data processing system, and notify and guide customs declarants in overcoming these incidents.

2. E-customs procedures upon occurrence of incidents outside the e-customs data processing system

2.1. Responsibilities of customs declarants

a/ To perform all jobs of e-customs declaration for exports and imports in the backup e-customs data processing system at district-level Customs Departments where e-customs procedures are carried out.

b/ To receive back the declared data after the incidents have been addressed.

2.2. District-level Customs Departments where e-customs procedures are carried out shall support and guide customs declarants in carrying out e-customs procedures in the backup e-customs data processing system and carrying out customs procedures for exports and imports under this Circular.

3. Customs procedures upon occurrence of incidents suspending the operation of the e-customs data processing system

3.1. Responsibilities of customs declarants

a/ To create e-customs declaration information in the e-customs data processing system. To print out, sign and append a seal on the e-customs declarations according to a set form. To produce and submit the complete customs dossiers to the district-level Customs Departments where e-customs procedures are carried out.

b/ To transmit and synchronize data with the e-customs data processing system upon request.

3.2. Responsibilities of customs offices

a/ District-level Customs Departments where e-customs procedures are carried out shall carry out customs procedures for exports and imports under this Circular. Heads of the district-level Customs Departments where e-customs procedures are carried out shall decide on the form and level of examination of dossiers and physical inspection of goods.

b/ To update information in the e-customs data processing system upon its operation resumption. To inspect and synchronize data with the customs declaration systems of customs declarants.

Chapter III

CUSTOMS PROCEDURES FOR EXPORTED AND IMPORTED PROCESSED GOODS

Section 1. CUSTOMS PROCEDURES FOR GOODS PROCESSED FOR FOREIGN TRADERS

Article 31. Processing contracts

1. Form and terms of a processing contract

1.1. A processing contract must be made in a written form or in another form of equivalent validity such as telegram, telex, fax or data message;

1.2. The terms of a processing contract comply with Article 30 of the Government's Decree No. 12/2006/ND-CP of January 23,2006;

1.3. Signatures and seals in a contract: For foreign traders, their signatures are required; for Vietnamese traders, their signatures and seals are required under Vietnamese law;

For processing contracts or enclosed documents electronically issued by processees being foreign traders, if customs offices request the production of printed contracts or documents, Vietnamese processors shall sign and append their seal on these documents for certification and take responsibility before law for the accuracy of these documents.

2. Annexes to a processing contract

Annexes to a processing contract constitute an integral part of the contract.

2.1. Any modifications, supplementations or adjustments to the terms of a processing contract must be made before the expiration of the contract and expressed in annexes to be registered with the customs office before or when the enterprise performs procedures for export or import of the lirst goods lot under these annexes. Particularly for the value of materials or supplies imported for processing, the value indicated in the commercial invoice of the import dossier shall be accepted, not requiring an adjustment annex to be made.

2.2. If a processing contract has a validity term of more than one year, it must be divided into different annexes for performance each year. The duration of each annex must not exceed one year. In special cases in which the processing of a product takes more than one year, the processing contract/contract annex shall be made for each product (e.g., ship repair).

3. In case a Vietnam-based processors signs a contract to process products for a foreign trader but does not directly undertake the processing and hires another trader to do so (sub-processing) under Point b. Clause 2, Article 33 of the Government's Decree No. 12/2006/ND-CP of January 23, 2006, the enterprise signing the processing contract with the foreign trader shall carry out procedures for export and import and liquidation of the processing contract with the customs office and take responsibility before law for the performance of this contract. Goods delivered and received between Vietnamese enterprises themselves are not subject to customs procedures.

4. Processing in trade is a commercial activity thereby the processor uses part or the whole of raw materials and materials supplied by the processee for the performance of one or more than one stage in the production process at the request of the processee for enjoying remuneration.

5. Materials used for processing include main materials and auxiliary materials and supplies used for processing.

5.1. Main materials are materials constituting main components of a product.

5.2. Auxiliary materials used for processing are materials which are used in creating, but are not main components of, a processed product.

5.3. Supplies used for processing are products and semi-finished products used in producing but not directly constituting a processed product. Supplies used for processing include packings or packing materials containing processed products.

6. Wastes, discarded products and scraps from processing include:

6.1. Wastes from processing are discarded substances or removed parts of materials in the course of processing a product; machinery and equipment hired or borrowed for processing which are broken and discarded during production or processing.

6.2. Discarded products from processing are products failing to satisfy technical standards (specifications, size, quality, utility, etc.) as agreed in processing contracts/contract annexes, which are discarded during processing.

6.3. Scraps from processing are materials and auxiliary materials discarded during processing which are no longer usable.

7. Norms for producing processed products as agreed in a contract include:

7.1. Use norm of materials is the quantity of materials necessary and rational for producing a unit of processed product.

7.2. Consumption norm of supplies is the quantity of supplies used for producing a unit of processed product.

7.3. Norm of component materials separated from original materials is the quantity of component materials separated from a unit of original materials.

7.4. Wastage of materials or supplies is the waste quantity of materials or supplies (including wastage when they become wastes, discarded products or scraps from processing) calculated in a percentage of the quantity of materials necessary for producing a unit of processed product (for materials) or of the consumed quantity of supplies for a unit of processed product (for supplies).

For component materials separated from original materials: The wastage is the waste quantity of original materials calculated in a percentage while going through the stage of separation into component materials.

8. Specimen goods used for processing are processed products supplied by the processee to the processor for use as specimens for producing processed products.

Specimen goods used for processing must satisfy the following conditions: They will be used only as specimens but not for other purposes; documents of the goods lot must indicate that these goods are specimens and for goods of each code, and a maximum of 5 units may be imported.

Article 32. Procedures for registration and modification of processing contracts and contract annexes

1. Customs clearance places: Customs declarants may register processing contracts with customs offices where e-customs procedures are carried out which are most convenient to them.

2. Procedures for registration of processing contracts

2.1. Responsibilities of enterprises

a/ Before carrying out procedures for the import of the first goods lot under a processing contract, the customs declarant shall declare information on the processing contract together with information on the goods list, norms and permits (if any) according to the items and standard format provided in Appendix I to this Circular (not printed herein) and take responsibility for before law for the declared information.

The customs declarants shall consistently declare all information on the appellations and codes of materials, supplies, machinery and specimen goods; HS codes; and their units of calculation from the time of import of materials to the time of liquidation of processing contracts;

In case an initial material is separated into different materials for producing different products (e.g., fishery products), the initial material will be below referred to as original material; materials processed from the original material will be below referred to as component materials; and end-products are products made up of component materials themselves or from the combination of component materials and other materials. Both original and component materials must be registered on the list of imported materials.

b/ Receipt of feedback from customs offices:

b.1/ To receive "notices of rejection of processing contract", made according to the form of processing notice, and modify and supplement information on the processing contracts as requested by customs offices.

b.2/ To receive "notices on instructions on registration of processing contract", made according to the form of notice of processing, and proceed with the jobs below:

b.2.1/ For processing contracts accepted to be registered based on e-customs declaration information, customs declarants shall base on these accepted contracts to perform import and export procedures;

b.2.2/ If customs offices request the submission/production of dossiers for examination, the customs declarant shall submit/ produce a dossier comprising:

- The processing contract and contract annexes (if any): To submit 02 copies (01 copy to be kept by the customs office and another one to be returned to the enterprise after the contract registration). A processing contract which is made in neither English nor Vietnamese must be translated into Vietnamese and the processing enterprise shall take responsibility for the truthfulness of such translation: To submit 01 copy;

- The competent agency's permit for processed goods on the list of goods subject to import or export permit: To submit 01 copy and produce the original;

- The written certification of eligibility for the import of scraps (in case of import of scraps for use as processing materials), issued by the provincial-level Natural Resources and Environment Department of the locality where the enterprise's production establishment is based under Joint Circular No. 02/2007/TT-LT-BCT-BTNMT of August 30, 2007, of the Ministry of Industry and Trade and the Ministry of Natural Resources and Environment;

- Enterprises performing processing contracts for the first time shall submit:

One copy of the business registration certificate or investment license or investment certificate, for foreign-invested enterprises;

One copy of the tax identification number registration certificate;

Document explaining their capacity to perform processing contracts and the commitment to take responsibility before law.

2.2. Tasks of customs offices

a/ To examine and receive registrations of processing contracts via the e-customs data processing system and based on dossiers submitted/produced by enterprises.

b/ To conduct inspection at production establishments

b.1/ Cases in which inspection at production establishments is required:

When an enterprise registers the processing contract for the first time or in the process of production, if the customs office has no clear information on its production establishment and production capacity, the customs office shall conduct inspection at such production establishment.

b.2/ Heads of district-level Customs Departments managing processing contracts may decide whether to conduct inspection at enterprises' production establishments.

b.3/ When results of inspection at production establishments show that conditions for performance of processing contracts are not fully met:

b.3.1/ In case contracts are not yet registered, the customs offices will not register processing contracts.

b.3.2/ In case processing contracts have been registered:

When an enterprise has no production establishment or its production establishment fails to satisfy all conditions for production (even the production establishment of the sub-processor), the customs office shall cease to carry out procedures for the import of materials and supplies for the performance of the processing contract, request the enterprise to give explanations and. depending on the nature and severity of violations, sanction it under law.

b.4/ In case the processing contract has been registered with a customs office managing processing contracts while the production establishment or head office of the enterprise is based in a locality of another district-level Customs Department, the inspection of such production establishments shall be decided by the General Department of Customs.

3. Registration of processing contract annexes

3.1. Types of processing contract annex to be declared with customs offices

a/ Group of annexes modifying a contract:

a.1/ Annex modifying general information of the contract;

a.2/ Annex canceling the contract.

b/ Group of annexes supplementing lists:

b.1/ Supplementing the list of materials and supplies;

b.2/ Supplementing the list of exported products;

b.3/ Supplementing the list of equipment temporarily imported for processing;

b.4/ Supplementing the list of imported specimen goods.

c/ Group of annexes modifying lists:

c.1/ Modifying codes of goods (imported materials and supplies; exported products; temporarily imported equipment; and imported specimen goods);

c.2/ Modifying units of calculation (imported materials and supplies; exported products; temporarily imported equipment; and imported specimen goods).

3.2. Responsibilities of enterprises

a/ After the registration of a processing contract and before the expiration of this contract, customs declarants shall create and declare information according to the items in the set form of contract annex;

b/ To receive feedback from customs offices;

c/ To submit/produce dossiers or documents related to the modification and supplementation of processing contracts at the request of customs offices.

3.3. Tasks of customs offices are the same as those in the case of performing procedures for registration of processing contracts.

4. Modification or supplementation of processing contracts/contract annexes

4.1. Modification or supplementation based on written agreements between enterprises and the processees:

a/ General information of processing contracts/contract annexes may be modified or supplemented from the time of registration of this contract/contract annex until its expiration;

b/ Other details of processing contracts/ contract annexes may be modified and supplemented through contract annexes before performing import or export procedures related to such modification or supplementation;

c/ If detecting errors in the declared contracts/ contract annexes beyond the above point of time, customs declarants may modify the declared details if having grounds for doing this, and obtaining approval of heads of the district-level Customs Departments managing the contracts;

d/ The procedures for modification or supplementation of contracts/contract annexes are the same as those for registration of processing contracts/contract annexes.

4.2. Modification or supplementation to correct enterprises' mistaken declaration or to meet customs offices' management requirements:

a/ After a processing contract is registered and before the expiration of this contract, customs declarants shall create and declare information according to the items in the form of contract annex;

b/ Enterprises shall produce documents related to the modified details at the request of customs offices;

c/ The procedures for modification or supplementation are similar to those for registration of processing contract annexes specified in Clause 3 of this Article.

Article 33. Customs procedures for materials and supplies used for processing

1. For materials and supplies used for processing which are supplied by processees:

1.1. Customs procedures for the import of materials and supplies used for processing which are supplied from overseas by the processees are the same as those for goods imported under purchase and sale contracts specified in Chapter II of this Circular, but tax payment declaration is not required.

1.2. For finished products supplied by processees for being attached to or packed together with processed products to form complete commodities for export, customs procedures are the same as those for materials used for processing if the following conditions are satisfied:

a/ The names of finished products and purposes of supplying finished products for being attached to or packed together with processed products to form complete commodities for export must be indicated in processing contracts/ contract annexes;

b/ The norms of these finished products are indicated in the table of use norms of materials for these processed products.

1.3. Customs procedures for materials and supplies used for processing supplied by processees in the form of on-the-spot export or import are the same as those for on-the-spot exports and imports under Article 71 of this Circular.

1.4. The sampling of raw materials and supplies used for processing complies with Article 22 of this Circular.

2. For materials and supplies supplied by processors themselves for processing contracts

2.1. For raw materials and supplies produced or purchased on the Vietnamese market by processors:

a/ When purchasing and supplying materials and supplies for processing contracts, customs declarants are not required to carry out customs procedures but both parties shall reach agreement on the names, specifications and quantities of these materials and supplies in the processing contracts/contract annexes;

b/ Before supplying materials and supplies for processing contracts, customs declarants shall obtain permission from a competent agency if these materials and supplies are on the list of goods subject to export permit; it is not allowed to supply raw materials and supplies on the list of goods banned or suspended from export;

2.2. For raw materials and supplies directly purchased by processors from overseas for processing contracts:

a/ Conditions for supply: When purchasing and supplying raw materials and supplies for processing contracts, both parties shall reach agreement on the names, specifications and quantities of these materials and supplies in the processing contracts/contract annexes.

b/ Customs procedures:

b.1/ Import procedures, tax policies and import duty refund procedures comply with regulations applicable to the import of materials for export production; export procedures comply with regulations applicable to the export of processed products;

b.2/ When carrying out procedures for the export of processed products, customs declarants shall declare the names; quantities; numbers and dates of the import declarations of materials imported for export production, which were used for producing lots of processed goods for export, •lccording to the items in the form used for processed materials supplied by processors themselves.

Article 34. Customs procedures for machinery and equipment imported for the performance of processing contracts

1. The import of machinery and equipment hired or borrowed for the performance of processing contracts must comply with goods import management policies.

2. The import of machinery and equipment hired or borrowed for the performance of processing contracts by foreign-invested enterprises comply with Circular No. 04/2007/TT-BTM of April 4, 2007, of the Ministry of Trade (now the Ministry of Industry and Trade).

3. For machinery and equipment hired or borrowed for processing which are exempt from import duty in the form of temporary import for re-export, customs procedures shall be performed at customs offices managing processing contracts as those for goods exported and imported under purchase and sale contracts as specified in Chapter II of this Circular.

Article 35. Procedures for registration and adjustment of norms

1. Use and consumption norms and wastage of materials and supplies (below collectively referred to as norms):

1.1. The norms shall be agreed by the parties in processing contracts under Article 31 of the Government's Decree No. 12/2006/ND-CP of January 23. 2006. If a processing contract stipulates no wastage of materials, the wastage of materials shall be regarded to be 0%.

1.2. The norms of exported products must be registered for each code of product. The norms of component materials separated from original materials must be registered for each code of original materials.

1.3. Materials of a specified type which are used to turn out products of different types (e.g., fishery products) or materials discarded in the process of producing products of a specified type which are used as materials for producing another product forexport will be neither treated as scraps nor included in the wastage of materials and will be treated as component materials as specified at Item a. Point 2.1, Clause 2, Article 32 of this Circular.

1.4. The norms registered and adjusted by customs declarants and accepted by customs offices serve as norms for the liquidation of processing contracts.

2. Time of registration and adjustment of norms

2.1. Time of registration of norms:

The time of registration of processing norms for a code of a product for export is before or simultaneously with the time of exporting the first lot of products of such code;

2.2. Time of adjustment of norms

a/ Enterprises may adjust processing norms for a code of product before carrying out customs procedures for the export of the first lot of products of such code.

b/ If detecting errors in the norm declaration beyond the point of time specified at Point a. Point 2.2 of this Article, enterprises may adjust the registered norms if they can give plausible reasons. Heads of district-level Customs Departments managing processing contracts shall, based on the registered norms, customs dossiers of goods lots already exported, samples under Article 22 of this Circular (if samples have been taken) or the enterprises' explanations, consider the adjustment of norms and handle violations under regulations.

3. Procedures for registration and adjustment of norms

3.1. Responsibilities of enterprises

a/ To declare information on norms according to the items and standard format specified in the form for actual norms of processed products or the form of information on actual norms of materials directly used in exported products, which are separated from original materials (component materials).

b/ To receive feedback from customs offices

b.1/ To receive "notices of rejection of the norm registration", made according to the form of processing notice, and modify or supplement information on processing norms at the request of customs offices.

b.2/ To receive "notices of instructions on carrying out procedures for norm registration or acceptance", made according to the form of processing notice, and perform the following jobs:

b.2.1/ For norms accepted on the basis of e-customs declaration information by customs offices for registration, customs declarants shall perform export procedures using the accepted norms;

b.2.2/ If customs offices request the submission/production of dossiers and product samples (if so required) for examination, enterprises shall submit/produce such dossiers and product samples.

c/ A dossier to be submitted/produced to the customs office upon request comprises:

c.1/ The Table of processing norms, made according to the form of table of registration of norms: To submit 2 originals;

c.2/ Written explanations about bases for and methods of calculating norms of goods of each code, enclosed with technical design documents of products (e.g., cutting diagrams for garments): To submit one copy;

c.3/ Records and documents (to be produced) related to the determination of norms of products of each code already registered by the enterprise (applicable only to cases of physical inspection of norms).

3.2. Tasks of customs offices

a/ To receive norm registrations via the e-customs data processing system.

b/ To check norms:

b.1/ Customs offices shall apply risk management to selecting norms for checking.

b.2/ Places and forms of inspection:

b.2.1/ Inspection at customs offices;

b.2.2/ Inspection at enterprises' production establishments;

b.2.3/ Inspection by customs offices themselves or by a specialized assessment organization.

c/ Time of norm inspection:

c.1/ Before or simultaneously with the time of exporting the first lot of products of the registered codes;

c.2/ After exporting products of the registered codes;

c.3/ Upon the liquidation of processing contracts.

d/ Tasks of customs officers in inspecting norms:

d.1/ To conduct inspection according to procedures and in a quick and proper manner, neither troubling nor hindering production activities of enterprises.

d.2/ To make records certifying inspection results upon completing the inspection. Such a record must fully and truthfully reflect the inspection and be signed by the inspecting customs officer and the representative of the inspected enterprise.

e/ Competent to decide on norm inspection are heads of district-level Customs Departments managing processing contracts. In case enterprises give written plausible reasons, heads of district-level Customs Departments managing processing contracts may consider and permit the enterprises to carry out procedures for the export of products and take product samples first, and then inspect norms later.

3.3. The procedures for norm adjustment are similar to those for norm registration specified at Points 3.1 and 3.2 of this Article.

Article 36. Customs procedures for export of processed products abroad

1. Customs procedures for the export of processed products to abroad are the same as those for goods exported under purchase and sale contracts as specified in Chapter II of this Circular. In addition, the following provisions must be complied with:

1.1. If exported processed products contain materials supplied by processors themselves, customs declarants shall, when registering export declarations, declare information according to the items and format in the form used for materials for processing which are supplied by processors themselves (domestically purchased or imported); and calculate export duty (if any) on materials and supplies purchased in Vietnam for processing in an annex to the export declarations;

1.2. Enterprises shall declare information to customs offices if processed products are exported to a third party;

1.3. Production of samples of materials (in case samples are taken) of export lots subject to physical inspection

a/ Customs officers inspecting the goods shall compare samples of materials with materials constituting products and the list of norms (printed and certified by customs offices with which norms are registered) with actually exported products;

b/ If it is impossible to identify the compatibility of exported products and samples, a sample of exported products shall be taken for assessment. Pending assessment results, customs offices shall proceed with procedures under regulations.

2. Upon the expiration of a processing contract, if processed products have not yet been completely exported, the enterprise shall make a commitment with the district-level Customs Department managing processing contracts to export all of these products within 30 days after the expiration of the contract. The customs office shall carry out procedures for registration of export declarations only for product codes with their norms already registered by the enterprise.

3. Customs procedures for processed goods lots exported from/to border gate are the same as those for goods in border-gate transfer under Article 29 of this Circular.

Article 37. Procedures for delivery and receipt of products in intermediary processing

1. Based on written designations of processees, enterprises delivering products in intermediary processing (deliverers) and enterprises receiving products in intermediary processing (recipients) shall themselves organize the delivery and receipt of goods under Clause 2 below.

The deliverer must be present at the deliverer's customs office for carrying out customs procedures within the validity term of the delivery processing contract and not later than 15 days from the date the recipient's customs office signs the declaration form for certification of completion of customs procedures. Past this time, if such declaration form has been certified by the recipient's customs office as having been cleared from customs procedures, a record thereof shall be made for handling the violation under regulations and the customs office may proceed with customs procedures without canceling the declaration form.

2. Customs procedures

2.1. In case the deliverer performs e-customs procedures while the recipient performs conventional customs procedures:

a/ Responsibilities of the deliverer's enterprise

a.1/ To fully fill in the items reserved for itself on 04 declaration forms HQ/2008/GCCT -Appendix 1 to Circular No. 116/2008/TT-BTC (below referred to as form HQ/2008-GCCT), sign and append a seal thereon;

a.2/ To deliver products enclosed with 4 customs declaration forms HQ/2008-GCCT and the original value-added invoices (originals for handing to customers). For export-processing enterprises, value-added invoices may be replaced with ex-warehousing bills for the recipient. The delivery and receipt shall be carried out at the recipient's processing establishment or warehouse:

a.3/ After receiving 02 declarations with the recipient's customs office's certification of having gone through customs procedures, the deliverer shall carry out customs procedures like those for exported processed products. A dossier to be submitted/produced at the request of the customs office comprises:

- Printed e-customs declaration form HQ/2009/TKDTXK: To submit 02 originals;

- The customs declaration received from the recipient: To submit 01 original;

- Written designation for goods delivery: To submit one copy and produce one original;

- Ex-warehousing bill: To submit 01 copy and produce 01 original.

b/ Responsibilities of the deliverer's customs office

Upon receiving information in the intermediary processing declarations, the customs office shall channel it in 01 of the following ways:

b.1/ Giving its acceptance of customs clearance right on the intermediary processing declarations of the enterprise: or,

b.2/ Examining dossiers before deciding to permit customs clearance.

Upon receiving dossiers, customs officers shall:

b.2.1/ Receive customs dossier sets submitted by enterprises and carry out customs procedures like those for exported processed products; certify customs clearance, sign and append the officer seal on 2 printed e-customs declaration forms HQ/2009-TKDTXK;

b.2.2/ Keep one declaration together with documents submitted by enterprises and return to the enterprises one declaration and documents produced by the enterprises.

2.2. In case the deliverer performs conventional customs procedures while the recipient performs e-customs procedures

a/ Responsibilities of the enterprise (the deliverer):

a.1/ To fully fill in the items reserved for the deliverer, sign and append a seal on 2 declaration forms HQ/2008/GCCT;

a.2/ To deliver products together with 2 customs declaration forms HQ/2008-GCCT and the originals of value-added invoices - original for handing to customers (for processed products). For export-processing enterprises, value-added invoices may be replaced with ex-warehousing bills for the recipient. The delivery and receipt shall be conducted at the recipient's processing establishment or warehouse;

a.3/ After receiving 2 customs declarations (fully filled in. signed and sealed by the recipient and the recipient's customs office) submitted by the recipient, the deliverer shall register customs declarations with the deliverer's customs office.

b/ Responsibilities of the recipient's enterprise

After receiving sufficient products and 2 declaration forms HQ/2008-GCCT fully filled in. signed and sealed by the deliverer, the recipient shall:

b.1/ Fully fill in the items reserved for the consignee, sign and append a seal on 2 declaration forms HQ/2008/GCCT. and carry out customs procedures as for imported materials supplied from overseas by processees. A customs dossier to be submitted/produced comprises:

- Printed e-customs declaration form HQ/ 2009/TKDTNK: To submit 2 originals;

- Customs declaration form HQ/2008-GCCT: To submit 2 originals;

- Value-added invoice (or ex-warehousing bill of the deliverer if the deliverer is an export-processing enterprise, or warehousing bill of the recipient if the recipient is an export-processing enterprise): To submit 01 copy and produce 01 original;

- Records and documents (to be produced) related to the receipt of goods upon request of the customs office.

b.2/ Receive and preserve goods delivered by the enterprise (the deliverer) until the customs office performing import procedures decides on the form and level of customs inspection;

b.3/ Produce samples of products in intermediary processing or goods to the customs office for inspection upon request;

b.4/ After completing procedures for receiving products in intermediary processing, keep one declaration form HQ/2009-TKDTNK and forward 2 declaration forms HQ/2008-GCCT to the deliverer's enterprise.

c/ Responsibilities of the recipient's customs office:

c.1/ To carry out customs procedures like those for imported materials and supplies supplied from overseas by processees; to make slips of sampling and seal up the goods samples under regulations:

c.2/ To certify the customs clearance, sign and append a seal on all 4 declarations (2 declaration forms HQ/2008-GCCT and 2 printed e-customs declarations);

c.3/ To keep one printed e-customs declaration and documents submitted by the enterprise; to return to the recipient's enterprise 3 declarations and documents produced by the enterprise; to deliver the sealed samples to the recipient for preservation and production to the customs office upon carrying out procedures for the export of processed products or in other cases upon request of the customs office.

d/ Responsibilities of the deliverer's customs office: To carry out customs procedures under current regulations.

2.3. In case both the deliverer and recipient carry out e-customs procedures

a/ Responsibilities of the deliverer's enterprise:

a.1/ To deliver products and the originals of added-value invoices (originals for handing to customers). For export-processing enterprises, added-value invoices may be replaced with ex-warehousing bills for the recipient. The delivery and receipt shall be conducted at the recipient's processing establishment or warehouse.

a.2/ After receiving 2 declarations (one original and one copy) with the recipient's customs office's certification of having gone through customs procedures, to provide in the e-customs declarations information on the delivery of products in intermediary processing in the e-customs declaration system, and carry out customs procedures as for exported processed products. A dossier to be submitted/ produced upon request of the customs office comprises:

- Printed e-customs declaration form HQ/2009/TKDTXK: To submit 2 originals;

Customs declaration received from the recipient: To submit 01 copy and produce 01 original;

- Written designation for goods delivery: To submit 01 copy and produce 01 original;

- Ex-warehousing bill: To submit 01 copy and produce 01 original.

b/ Responsibilities of the recipient's enterprise:

b.1/ To perform the tasks defined at Item b, Point 2.2 of this Article. The enterprise is not required to make and submit declaration forms HQ/2008/GCCT;

b.2/ After completing procedures for the receipt of products in intermediary processing, to transfer the declarations with the recipient's customs office's certification as having gone through customs procedures together with one copy to the deliverer's enterprise.

c/ Responsibilities of the recipient's customs office: To carry out customs procedures as for imported materials and supplies supplied from overseas by processees.

d/ Responsibilities of the deliverer's customs office: To carry out e-customs procedures as for exported processed products.

2.4. If products in intermediary processing are delivered and received at the same enterprise, this enterprise is not required to produce value added invoices.

2.5. The above procedures for delivery and receipt of products in intermediary processing also apply to cases involving different processees.

3. Procedures for the delivery and receipt of materials, auxiliary materials, machinery and equipment hired or borrowed in the course of performing processing contracts to other processing contracts as designated by processees are similar to those for the delivery and receipt of products in intermediary processing under Clause 2 of this Article, but enterprises are not required to produce value added invoices.

Article 38. Customs procedures for processed products used for payment of processing remuneration or for domestic sale

1. Processed products used for payment of processing remuneration are specified at Point d. Clause 2, Article 33 of the Government's Decree No. 12/2006/ND-CP of January 23, 2006;

2. Customs procedures shall be carried out in the same way as those applicable to on-the-spot export or import. In case processed products are used for payment of remuneration, purchase and sale contracts shall be replaced with written agreements on payment of processing remuneration in processed products between processees and processors.

3. Enterprises shall fully observe import management and tax policies like for goods imported from overseas and comply with the Government's Decree No. 89/2006/ND-CP of August 30. 2006, on goods labeling. These processed products will be counted for liquidation of processing contracts.

4. In case enterprises conducting processing for foreign traders are concurrently enterprises conducting on-the-spot import of processed products, these enterprises shall carry out both procedures for on-the-spot export and on-the-spot import of processed products.

Article 39. Procedures for liquidation of processing contracts

1. A liquidation dossier comprises:

1.1. General list of imported materials and supplies, made according to a set form: To submit 01 original:

1.2. General list of exported processed products, made according to a set form: To submit one original;

1.3. General list of materials and supplies re­exported overseas and transferred to other processing contracts during the performance of processing contracts, made according to a set form: To submit one original;

1.4. General list of materials and supplies supplied by the processor (if any), made according to a set form: To submit 01 original;

1.5. General list of materials and supplies already used for producing exported products, made according to a set form: To submit 01 original;

1.6. List of liquidation of the processing contract, according to a set form: To submit 2 originals (one to be returned to the enterprise after liquidation):

1.7. General list of machinery and equipment temporarily imported for re-export, made according to a set form: To submit 01 original.

Enterprise directors shall sign and append a seal on the above lists and take responsibility before law for the accuracy and truthfulness of liquidation data.

2. Liquidation time limit:

Within 45 working days from the date a processing contract and annexes thereto terminates or expires, the processing enterprise shall send a "liquidation request", made according to the items and standard format in the form of processing liquidation request, to the district-level Customs Department managing processing contracts. It shall work out measures to handle the quantities of surplus materials and supplies; temporarily imported machinery and equipment; and wastes and discarded products (if any);

For a processing contract with a term of more than one yean it must have a separate annex for each year. The time limit for liquidation of each annex is the same as that for liquidation of the processing contract.

3. Time limit for receipt, examination and comparison of liquidation dossiers

Within 30 working days from the date of receipt of a "liquidation request" from a customs declarant, the customs office managing processing contracts shall complete the examination and comparison of liquidation results directly in the e-customs data processing system and, when necessary, request the enterprise to submit a complete liquidation dossier for examination and checking, and issue to the enterprise a "notice of acceptance of liquidation results" or "notice of rejection of liquidation results" enclosed with a reason for such rejection, made according to the form of processing notice.

4. Time limit for carrying out customs procedures for surplus materials; temporarily imported machinery and equipment; and wastes and discarded products

Within 30 working days from the date the custom office issues to the enterprise a "notice of acceptance of liquidation results" or "notice of rejection of liquidation results" enclosed with a reason for such rejection, the customs declarant shall fully comply with the customs office's requests indicated in such notice, including completing customs procedures for dealing with surplus materials; imported machinery and equipment; and wastes and discarded products (if any).

5. Handling of late sending of liquidation requests and late performance of procedures for surplus materials, auxiliary materials and supplies and temporarily imported machinery and equipment

5.1. Handling of late sending of liquidation requests or submission of liquidation dossiers:

a/ Within 90 working days after the expiration of the liquidation time limit, customs offices managing processing contracts shall handle violations under regulations; calculate and assess duty amounts and fines for late payment for the quantities of materials, supplies and machinery under processing contracts not yet liquidated, counting from the date of registration of declarations, as for goods imported under purchase and sale contracts.

b/ Enterprises shall pay duty and fines for late payment of duties for imports not yet liquidated under such contracts into a temporary deposit account according to the assessment of customs offices and comply with administrative sanctioning decisions under law.

c/ Past 90 days after the expiration of the time limit for sending liquidation requests, if enterprises fail to declare/submit liquidation dossiers and/or fail to pay duty amounts according to the assessment of customs offices, they will be subject to coercive measures under regulations.

5.2. Handling of late performance of customs procedures for surplus materials, auxiliary materials and supplies and temporarily imported machinery and equipment:

a/ Customs offices managing processing contracts shall:

a.1/ Make records of violations for handling under regulations;

a.2/ Calculate and assess duty amounts for surplus materials, auxiliary materials and supplies and temporarily imported machinery and equipment under processing contracts not yet liquidated, counting from the date they complete procedures for checking liquidation dossiers.

b/ Enterprises shall pay the duty amounts according to the assessment of customs offices into a time deposit account and comply with administrative sanctioning decisions under law.

c/ Past the time limit for duty payment, if enterprises fail to pay duties, they will be subject to coercive measures under regulations.

5.3. Enterprises that submit dossiers and complete liquidation after paying duties and fines for late payment of duties may carry out procedures for the refund of the paid duties and fines under current regulations;

Enterprises that submit dossiers and complete liquidation within the time limit for duty payment and have not yet paid duties may carry out procedures for non-payment of duties under current regulations.

5.4. Extension of the liquidation time limit and the time limit for carrying out customs procedures for surplus supplies; temporarily imported machinery and equipment; and wastes and discarded products

Cases eligible for extension of the liquidation time limit:

a/ Enterprises concurrently perform different processing contracts which cease to be effective at the same point of time, so they have cannot prepare dossiers in time;

b/ There arise disputes related to processing contracts between processees and processors;

c/ Enterprises cannot conduct liquidation within the prescribed time limit for other force majeure reasons.

Based on customs declarants' annex on extension of the liquidation time limit, heads of district-level Customs Departments managing processing contracts shall extend the liquidation time limit specified in Clause 2. Such extension may be made only once and must not exceed 15 days, for the time limit specified at Item a. or 30 days, for the time limit specified at Item b or c, of this Point.

Article 40. Customs procedures for disposal of surplus materials and supplies; wastes, discarded products, scraps; and hired or borrowed machinery and equipment

As agreed in processing contracts and pursuant to law, customs declarants may decide on the methods of disposing of surplus materials and supplies, wastes, discarded products and hired or borrowed machinery and equipment through:

1. Selling on the Vietnamese market: Customs procedures are the same as those applicable to the on-the-spot export or import under Article 71 of this Circular. On-the-spot export or import conditions are specified in Clause 3, Article 33 of the Government's Decree No. 12/2006/ND-CP of January 23, 2006

2. Re-exporting: Customs procedures for re-exporting surplus materials and supplies, wastes and discarded products, and hired or borrowed machinery and equipment are the same as those for goods lots exported under purchase and sale contracts. Customs officers conducting physical inspection of goods shall compare to be-re-exported materials with their samples taken upon import: and compare the types and codes of machinery and equipment indicated in the latest temporary import declarations or intermediary processing declarations with to be-re-exported machinery and equipment.

3. Transfer to other processing contracts performed in Vietnam: Customs procedures for transferring surplus materials and supplies and machinery and equipment to other processing contracts arc the same as those for the delivery and receipt of products in intermediary processing as guided in Article 37 of this Circular. In addition, the following provisions must be complied with:

3.1. Customs declarants shall transfer surplus materials and supplies and hired or borrowed machinery and equipment to other processing contracts after customs offices send to enterprises a "notice of acceptance of liquidation results", made according to the form of processing notice.

3.2. In case of transferring surplus materials and supplies and hired or borrowed machinery and equipment to processing contracts to be performed by other enterprises:

a/ Recipients shall produce materials received from other contracts and their samples taken upon import to the recipients' customs offices for comparison:

b/ Recipients' customs offices shall compare samples of materials taken upon import with the transferred materials; if they are consistent, the customs offices shall take new samples for material-receiving contracts (sample comparison and new sampling shall be conducted at enterprises);

c/ Heads of customs offices managing processing contracts may decide to conduct physical inspection of goods if detecting that enterprises make untruthful declarations. If inspection results show that enterprises make untruthful declarations, they shall handle these enterprises under law.

3.3. In case of transferring surplus materials and supplies and hired or borrowed machinery and equipment to other processing contracts to be performed by the same enterprises:

a/ When carrying out customs procedures for transferring surplus materials to other processing contracts, enterprises shall produce samples of materials under material-delivering processing contracts;

b/ Customs offices managing processing contracts shall transfer these samples of materials to new processing contracts through making slips of taking new samples and seal them up together with these slips. Visits to enterprises to take and compare samples are not required;

c/ Customs offices managing processing contracts shall conduct inspection at enterprises if having doubts about improper transfer of goods indicated in customs declarations.

4. Donation in Vietnam:

4.1. Customs procedures are the same as procedures for on-the-spot exports and imports as guided in Article 71 of this Circular (in this case processing contracts and contract annexes are treated as purchase and sale contracts).

4.2. In case customs offices request to examine documents, a customs dossier to be submitted/produced comprises:

a/ Printed e-customs declaration, made according to the import e-customs declaration form: To submit 2 originals;

b/ The processee's document on donation: To submit one original;

c/ The Industry and Trade Ministry's written approval if donated goods are on the list of goods subject to import permission by the Ministry; the specialized agency's written permission if such permission is required for imports: To submit 01 original.

4.3. Customs procedures and duty policies comply with regulations applicable to donated goods. After completing procedures for goods lots, processors shall hand over to donees the originals of printed e-customs declarations as documents to be produced at the request of other functional agencies.

5. Destruction of scraps and discarded products in Vietnam:

5.1. Scraps and discarded products shall be destroyed upon completion of processing contracts/contract annexes or in the course of performing processing contracts. The destruction also applies to processed products proposed by processes to be destroyed in Vietnam.

5.2. Customs procedures for destruction supervision are as follows:

a/ Customs declarants shall create information "Request for supervision of destruction of wastes and discarded products from processing or processed products and semi-finished products," enclosed with the provincial-level Natural Resources and Environment Department's written permission for destruction in Vietnam, made according to the standard format specified in the form of request for supervision of destruction of wastes and discarded products from processing or processed products and semi­finished products, and send it to the customs office managing processing contracts;

b/ Enterprises shall themselves organize the destruction and take responsibility before law for the environmental impacts of the entire destruction process;

c/ Customs offices managing processing contracts shall assign customs officers to supervise the destruction process;

d/ Upon finishing the destruction, the related parties shall make a record of the destruction under regulations. Such a record must bear the signature of the director and seal of the enterprise having the goods destroyed; and full names and signatures of the customs officer supervising destruction and persons assigned by the enterprise director to conduct the destruction.

Article 41. Procedures for shifting between conventional and electronic management and monitoring of currently performed contracts

1. Shifting principles

1.1. District-level Customs Departments of localities in which enterprises are performing processing contracts (below referred to as shifting Customs Departments) shall monitor and liquidate the quantity of goods having gone through export or import procedures at the Customs Departments from the time the enterprises start registering processing contracts/ contract annexes to the time of shifting;

1.2. District-level Customs Departments of localities to which enterprises plan to shift the performance of processing contracts (below referred to as receiving Customs Departments) shall monitor and liquidate goods having gone through export or import procedures at the Customs Departments from the time of shifting to the time of finishing processing contracts/ contract annexes.

2. Shifting procedures

2.1. Shifting between different district-level Customs Departments

a/ Responsibilities of enterprises:

a.1/ To send a written request for shifting to the receiving Customs Department indicating the serial number and date of the contract and date of its expiration; name of the processee; processed products: the district-level Customs Department currently managing and monitoring the processing contract; time of stopping the performance of customs procedure at the shifting Customs Department and time of starting to perform customs procedures at the receiving Customs Department;

a.2/ To register the processing contract/ contract annexes at the receiving Customs Department;

a.3/To submit a dossier of request for shifting to the shifting Customs Department. Such as dossier comprises:

A written request for shifting, containing the certification of the receiving Customs Department: 01 original;

A record of goods left in stock, made according to a set form, with the certification of the enterprise director: 01 original.

a.4/ To carry out procedures for shifting materials, supplies, machinery and equipment from the contract being monitored by the shifting Customs Department to the contract to be monitored by the receiving Customs Department like customs procedures for delivery and receipt of products in intermediary processing;

a.5/ To liquidate the processing contract at the shifting Customs Department and complete shifting procedures under regulations.

b/ Responsibilities of shifting Customs Departments:

b.1/ To stop carrying out customs procedures for materials, supplies, machinery, equipment and processed products of the processing contract/contract annexes proposed to be shifted, upon receiving a written request for shifting which contains the certification of the recipient's customs office;

b.2/ To carry out customs procedures for shifting materials, supplies, machinery and equipment from the contracts being monitored by the shifting Customs Department to the contract to be monitored by the receiving Customs Department like customs procedures for delivery and receipt of products in intermediary processing;

b.3/ To liquidate shifted processing contracts under current regulations;

b.4/ To certify, sign and append the officer seal on the record of goods left in stock, made according to a set form;

b.5/ To complete shifting procedures, including reaching agreement with the recipient's customs office on modifying or supplementing information in the transitional declaration; to proceed with procedures for shifting the materials, supplies, machinery, equipment and processed products left in stock, after finalizing the fixation of goods left in stock together with enterprises.

c/ Responsibilities of receiving Customs Departments:

c.1/ To certify the approval to receive the processing contract in the enterprises' written request for shifting. To provide enterprises with guidance on how to perform procedures for registration of processing contracts/contract annexes and start to perform customs procedures for exports and imports from the time of shifting:

c.2/ To carry out procedures for shifting materials, supplies, machinery and equipment from the contract being monitored by the shifting Customs Department to the contracts to be monitored by the receiving Customs Department like customs procedures for delivery and receipt of products in intermediary processing.

2.2. Shifting within the same district-level Customs Department:

a/ Responsibilities of enterprises: To perform all the jobs specified at Item a. Point 2.1 of this Article. The enterprise's written request for shifting must indicate that the shifting shall take place within the same district-level Customs Department. Certification of the district-level Customs Department in which the shifting takes place is not required for this request.

b/ Responsibilities of customs offices:

b.1 / To provide enterprises with guidance on how to perform procedures for registration of processing contracts/contract annexes under new management regulations and reach agreement with enterprises in certifying the goods left in stock under processing contracts being performed;

b.2/ To certify, sign and append the officer seal on the record of goods left in stock, made according to a set form;

b.3/ To upload information on the materials, supplies, machinery and equipment already fixed as left in stock on the e-customs data processing system.

Section 2. CUSTOMS PROCEDURES FOR GOODS ORDERED FOR OVERSEAS PROCESSING

Article 42. Procedures for registration of processing contracts

1. Responsibilities of enterprises

1.1. Before carrying out procedures for the export of the first goods lot under processing contracts, customs declarants shall create on the computer information on processing contracts for e-customs declaration according to the items and standard format provided in the form of this processing contract and take responsibility before law for the declared information. Information details to be declared include:

a/ Information on the processing contract and annexes (if any);

b/ List of materials (if any);

c/ List of products (if any);

d/ List of equipment (if any);

e/ List of specimen goods (if any);

f/ List of norms (if any);

g/ The competent agency's permit, if goods exported for the performance of processing contracts and imported processed products are on the list of goods subject to export or import permit; lists of goods enclosed with permits.

Particularly for customs declarants being customs clearance agents, the contents of authorization must be declared.

1.2. To send the declared e-customs information to customs offices:

1.3. To receive feedback from customs offices and perform the jobs as in the procedures for receiving contracts on processing for foreign enterprises.

2. Customs offices' examination, receipt and registration of processing contracts: Procedures are the same as those for receipt of contracts on processing for foreign enterprises.

Article 43. Procedures for export of materials for overseas processing orders Customs procedures are the same as those for the export of goods under purchase and sale contracts as guided in Chapter II of this Circular. Customs declarations shall be opened like those applicable to the export of processed products. Upon physical inspection of goods, samples of materials shall be taken instead of sample comparison.

Article 44. Procedures for registration, adjustment and inspection of norms of overseas processing orders

1. Time of registration and adjustment of norms:

1.1. Before carrying out procedures for the import of products, if processed products are re-imported into Vietnam;

1.2. Upon carrying out procedures for the liquidation of processing contracts, if processed products are sold overseas.

2. The procedures for registration, adjustment and inspection of norms are the same as those for processing for foreign partners.

Article 45. Procedures for import of overseas processed products

1. Customs procedures are the same as those for goods imported under purchase and sale contracts as guided in Chapter II of this Circular. Customs declarations shall be opened like those applicable to the import of processed products. In addition, customs declarants shall:

1.1. Declare the quantities of materials and supplies constituting imported processed products of foreign origin according to the form for materials used for processing which are supplied by processors themselves (domestically purchased or imported);

1.2. Upon physical inspection of goods, compare samples of materials taken upon export with materials constituting the products.

2. Duty policies are the same as those for overseas processed products which are re-imported into Vietnam under the tax laws.

Article 46. Procedures for liquidation of contracts to order overseas processing

The time limit for customs declarants to submit liquidation dossiers or re-import into Vietnam surplus materials and supplies and temporarily exported machinery and equipment for processing; and the time limit for customs offices to examine liquidation dossiers and handle processing contracts which expire but are not liquidated are the same as those for contracts on processing for foreign enterprises.

Chapter IV

CUSTOMS PROCEDURES FOR MATERIALS AND SUPPLIES IMPORTED FOR EXPORT PRODUCTION

Article 47. Customs procedures for materials and supplies used for export production

1. Materials and supplies used for export production include:

1.1. Materials, semi-finished products, accessories, details and spare parts directly involved in the production process to constitute exported products or to be transformed into exported products;

1.2. Materials and supplies directly involved in producing exported products but neither constituting exported products nor being transformed into exported products;

1.3. Finished products (e.g., ties, hooks, etc.) imported by enterprises for attachment to exported products, packed together with exported products produced from imported materials and supplies, or packed together with exported products produced from domestically purchased materials and supplies into complete commodities for export;

1.4. Supplies used as packings, or packings used for packing exported products;

1.5. Materials and supplies imported for warranty, repair or reprocessing of exported products;

1.6. Specimen goods imported for export production which must be re-exported to foreign customers upon completion of contracts.

2. Procedures for registration, modification and supplementation of the list of materials and supplies

2.1. Registration of the list of materials and supplies

a/ Registration time:

Customs declarants shall declare the list of imported materials and supplies before carrying out procedures for the import of the first lot of materials and supplies.

All information on the appellations; HS codes and codes of materials and supplies; and units of calculation registered in the list must be declared consistently from the time of import of materials to the time enterprises terminate export or import activities in this form.

b/ Registration procedures

Customs declarants shall:

b.1/ Declare information on the list of materials and supplies according to the items and standard format specified in the Table of imported materials and supplies, in the e-customs data processing system;

b.2/ Send information to the 'e-customs data processing system of customs offices;

b.3/ Receive registration acceptance or rejection notices and modify and supplement information under the guidance of customs offices, then send the modified and supplemented information to customs offices.

2.2. Modification or supplementation of the list of materials and supplies:

Customs declarants may modify all informa­tion in the list of imported materials and supplies before carrying out procedures for the import of the first lot of materials and supplies or before registering relevant norms, whichever comes first.

If detecting errors in the declared list of imported materials and supplies beyond the above-said point of time, customs declarants may modify the declared information if they can invoke a plausible reason accepted by the customs office but may not modify the codes and units of calculation of materials and supplies.

Information modifying or supplementing the list of imported materials and supplies shall be declared according to procedures for registration of the list of materials and supplies under Point 2.1 above.

3. Customs procedures for import of materials and supplies

3.1. Customs procedures for the import of materials and supplies on the registered list of imported materials and supplies are the same as those for the import of goods under purchase and sale contracts as specified in Chapter II of this Circular to be performed at customs offices with which the list of imported materials and supplies is registered.

3.2. For lots of imported materials and supplies in border-gate transfer, e-customs procedures for goods in border-gate transfer under Article 29 of this Circular will apply.

Article 48. Customs procedures for exported products produced from imported materials and supplies

1. Exports produced from imported materials and supplies include:

1.1. Products produced from all imported materials and supplies in the form of export production;

1.2. Products produced from imported materials and supplies in the form of export production, and materials and supplies of other origins, such as those purchased on the Vietnamese market or imported under purchase and sale contracts.

2. Procedures for the registration, change and supplementation of use norms of materials, consumption norms of supplies, wastage percentage of materials and supplies (referred to as wastage norms of materials and supplies) are the same as those for the registration of norms of materials and supplies used for processing goods for foreign traders as guided in Article 35 of this Circular.

3. Customs procedures for export of products

3.1. Customs clearance places

a/ Customs procedures for the export of products produced from imported materials and supplies shall be performed at district-level Customs Departments most convenient to customs declarants.

b/ In case e-customs procedures for the export of products are not performed at the district-level Customs Department with which the list of materials and supplies has been registered, when registering customs declarations for the export of products in the form of import for export production, customs declarants shall produce customs declarations for the import of materials and supplies already used for producing products.

3.2. Customs procedures for the export of products are the same as those for the export of goods under purchase and sale contracts under Chapter II of this Circular.

For export lots subject to physical inspection, customs declarants shall produce goods samples if samples of imported materials and supplies have been taken.

Inspecting customs officers shall compare product samples with materials constituting the products; and norms of materials and supplies with actually exported products. If samples are not identical to exported products, customs officers shall take samples of exported products for assessment. Pending assessment results, customs offices shall proceed with customs procedures for the export of goods.

4. When carrying out customs procedures for the export of products, if customs declarants have used materials and supplies imported under goods purchase and sale contracts to produce such products for export and wish to have duty amounts paid for the quantities of these materials and supplies refunded, they shall declare information according to the standard format specified in the list of materials and supplies imported under goods purchase and sale contracts.

Article 49. Liquidation of declarations of imported materials and supplies

1. Liquidation principles

1.1. All materials and supplies imported for export production must be liquidated.

1.2. Customs declarants shall select import declarations and export declarations to be liquidated.

In case materials and supplies have been imported but are not yet put into export production, making import declarations impossible to be liquidated, customs declarants shall declare information on materials not yet liquidated according to the items and standard format specified in the Table of materials not yet liquidated.

1.3. An export declaration shall be liquidated only once.

If products for export contain materials under imports purchase and sale contracts at other district-level Customs Departments, an export declaration may be partially liquidated.

Upon conducting liquidation, customs offices shall:

a/ Certify the liquidated quantity in the e-customs declarations in the e-customs data processing system.

b/ Append the "liquidated" seal on the export declarations at other district-level Customs Departments (which are kept by customs declarants).

c/ To be used for liquidation at other district-level Customs Departments, export declarations of district-level Customs Departments where e-customs procedures are carried out must contain the certification of such district-level Customs Departments of the quantity of products not yet used for liquidation.

1.4. If materials and supplies imported for export production are used for producing exported products under processing contracts, the quantity of these materials and supplies shall be liquidated under processing export declarations.

2. Liquidation dossiers

2.1. Liquidation dossiers comply with current regulations on tax administration of goods used for export production, except the following documents already declared by customs declarants upon carrying out e-customs procedures:

a/ Customs declarations for the import of materials and supplies already cleared from customs procedures;

b/ Customs declarations of exports already cleared from customs procedures;

c/ List of registered norms of materials and supplies;

d/ List of export declarations to be liquidated.

2.2. Procedures for comparing liquidation data: Before submitting liquidation, duty refund or duty non-payment dossiers, enterprises shall declare in the e-customs declaration system the following information:

a/ General information:

b/ List of liquidated import declarations (including import declarations under goods purchase and sale contracts);

c/ List of liquidated export declarations (including export declarations made at border gates other than places of importation and processing export declarations);

d/ List of documents on payments for goods produced for export;

e/ Detailed information on the quantity of imported materials and supplies under import declarations to be liquidated for the following purposes (if any):

e.1/ List of materials and auxiliary materials exported through products under processing contracts;

e.2/ List of imported materials and supplies not yet liquidated (if enterprises use only part but not the whole of materials and supplies for production, then use materials and supplies of subsequent import declarations for liquidation);

e.3/ List of materials and auxiliary materials not exported on which duties are proposed to be paid;

g/ Report on warehousing, ex-warehousing and stockpiling of imported materials and supplies;

h/ Report on duty calculations for imported materials and supplies.

3. Procedures for submission, receipt and processing of liquidation dossiers

3.1. District-level Customs Departments where e-customs procedures are carried out shall receive liquidation information, examine and compare liquidation data and give feedback to enterprises via the e-customs data processing system.

3.2. Based on the results of data examination and comparison under Item 3.1 above, and dossiers submitted and/or produced by enterprises, district-level Customs Departments carrying out liquidation procedures shall carry out procedures for duty refund or non-collection under current regulations on tax administration of goods used for export production.

Article 50. Procedures for shifting manual to electronic management and monitoring of declarations of materials imported for export production

1. Enterprises that wish to shift the management of declarations of materials imported for export production already registered and cleared from import customs procedures at district-level Customs Departments applying conventional methods (shifting Customs Departments) to district-level Customs Departments where e-customs procedures are carried out (receiving Customs Departments) shall submit a written request to both shifting and receiving Customs Departments.

2. Enterprises shall, together with the shifting Customs Department, liquidate shifted import declarations and send liquidation results to the receiving Customs Department;

3. The shifting Customs Department shall continue performing the tax administration of shifted import declarations until tax-related liquidation is completed. Upon receiving liquidation decisions for shifted declarations from the receiving Customs Department, the shifting Customs Department shall continue carrying out tax-related procedures for enterprises.

4. The receiving Customs Department shall monitor and liquidate shifted import declarations and notify its liquidation decisions to the shifting Customs Department.

5. Enterprises shall perform tax obligations related to shifted declarations with the shifting Customs Department after obtaining liquidation results.

6. If the receiving and shifting Customs Departments are one, it shall perform the jobs of both receiving and shifting Customs Departments.

Chapter V

CUSTOMS PROCEDURES FOR GOODS BROUGHT IN OR TAKEN OUT OF EXPORT-PROCESSING ENTERPRISES

Section 1. CUSTOMS PROCEDURES FOR GOODS OF ORDINARY EXPORT-PROCESSING ENTERPRISES

Article 51. Principles on customs inspection and supervision

1. Customs procedures for goods brought in or taken out of export-processing enterprises specified in this Circular apply to export-processing enterprises located inside or outside export-processing zones and are carried out at district-level Customs Departments managing export-processing enterprises;

2. Goods transferred within an export-processing enterprise are not subject to customs procedures;

3. Stationery and goods brought from the domestic market to export-processing enterprises in service of their daily-life activities comply with Article 21 of the Government's Decree No. 29/2008/ND-CP of March 14, 2008, providing for industrial parks, export-processing zones and economic zones;

4. Goods brought in or taken out of export-processing enterprises must be consistent with warehousing and ex-warehousing bills and be recorded and monitored according to each declaration or document on goods brought in or taken out of export-processing enterprises. In case of disparity between the quantity, category and unit of calculation of goods brought to or taken out of and those declared in declarations and documents, enterprises shall make additional declarations to customs dossiers according to regulations right after goods are warehoused or ex-warehoused;

Customs inspection and supervision of goods brought in or taken out of export-processing enterprises shall be conducted on the basis of import declarations, export declarations, documents of goods brought in or taken out of export-processing enterprises, warehousing documents, ex-warehousing documents, norms and goods actually kept in stock;

5. In case export-processing enterprises have been licensed by competent state agencies to exercise the import or export right, they may do so under the Government's Decree No. 23/2007/ND-CP of February 12, 2007, on goods sale and purchase activities and goods purchase and sale-related activities of foreign-invested enterprises in Vietnam, Circular No. 09/2007ATT-BTM of July 17, 2007, of the Ministry of Trade (now the Ministry of Industry and Trade), and Circular No. 09/2007/TT-BTM hướng dẫn Nghị định 23/2007/NĐ-CP vốn đầu tư nước ngoài tại Việt Nam">05/2008/TT-BCT of January 14, 2008, of the Ministry of Industry and Trade, guiding the implementation of Decree No. 23/2007/ND-CP and Decision No. 10/2007/QD-BTM of May 21, 2007, of the Ministry of Trade (now the Ministry of Industry and Trade).

6. Export-processing enterprises shall declare and take responsibility for the use of goods imported or brought in export-processing enterprises which are not liable to import duty or export duty underArticle2ofDecreeNo. 149/ 2005/ND-CP of December 8,2005, value-added tax under Article 3 of Decree No. 123/2008/ND-CP of December 8, 2008, and excise tax under Article 3 of Decree No. 26/2009/ND-CP of March 16, 2009.

Article 52. Registration, modification and supplementation of lists of goods brought in or taken out of export-processing enterprises

1. Time of registration, modification or supplementation:

1.1. Time of registration of a list:

a/ For a list of goods brought in an export-processing enterprise: before carrying out procedures for the import of the first goods lot;

b/ For a list of goods taken out of an export-processing enterprise:

b.1/ For products produced from imported raw materials by the export-processing enterprise: before carrying out procedures for norm registration;

b.2/ For goods other than products produced from imported raw materials by the export-processing enterprise: before carrying out procedures for taking goods out of the export-processing enterprise.

1.2. Time of modification or supplementation of a list:

a/ Modification or supplementation of a list of goods brought in an export-processing enterprise:

a.1/ For raw materials and supplies for export production: The customs declarant may modify all information in this list before carrying out procedures for the import of the first goods lot or before registering norms, whichever comes first;

a.2/ For goods other than raw materials and supplies for export production: The customs declarant may modify all information in this list before carrying out procedures for the import of the first goods lot;

b/ Modification and supplementation of a list of goods taken out of an export-processing enterprise:

b.1/ For products produced from imported raw materials: The customs declarant may modify this list before carrying out procedures for the registration of norms;

b.2/ For goods other than products produced from imported raw materials: The customs declarant may modify this list before carrying out procedures for taking these goods out of the export-processing enterprise.

1.3. If detecting errors in the declaration of these lists after the points of time specified at Points a and b. Clause 1.2 above, the customs declarant may modify declared contents if he/she has a plausible reason accepted by the customs office but may not modify commodity codes and units of calculation.

2. Procedures for registration, modification and supplementation

2.1. The customs declarant shall create information strictly according to the specified items and standard format regarding goods appellations. HS headings, commodity codes and units of calculation as registered in the current lists of imports and exports. Information must be consistently declared from the time of bringing goods in an export-processing enterprise till the export-processing enterprise terminates import or export activities. The customs declarant shall create information according to forms "List of goods brought in export-processing enterprise" and "List of goods taken out of export-processing enterprise";

The registration and receipt of feedback by export-processing enterprises comply with Article 47 of this Circular;

2.2. The examination of information declared in these lists by customs offices complies with Article 47 of this Circular.

Article 53. Registration and adjustment of norms and wastage of raw materials and supplies with regard to products taken out of export-processing enterprises

1. If goods taken out of export-processing enterprises are produced or made up of raw materials and supplies brought in export-processing enterprises, their norms must be registered before goods are taken out of export-processing enterprises;

2. The procedures for registration and adjustment of norms comply with those prescribed for the registration and adjustment of norms of processed goods prescribed in Article 35 of this Circular.

Norms shall be registered and adjusted in the form "Information on actual norms of products taken out of export-processing enterprise."

Article 54. Customs procedures for goods brought in export-processing enterprises

When goods are imported or brought in export-processing enterprises from the inland, other export-processing enterprises or bonded warehouses, their use purposes must be clearly declared, including production, formation of fixed assets, consumption, other production and business activities of enterprises or sale and purchase under Decree No. 23/2007/ND-CP.

1. For goods imported from foreign countries:

Procedures for import of goods brought from foreign countries in export-processing enterprises comply with those applicable to sale and purchase contracts (except tax declaration) prescribed in Chapter II of this Circular.

2. For goods brought in export-processing enterprises from the inland, other export-processing enterprises or bonded warehouses:

2.1. Responsibilities of the export-processing enterprises:

a/ To fill in the document of goods brought in export-processing enterprises

a.1/ Before receiving goods, to fill in the form "Document of goods brought in export-processing enterprise or document on the receipt of goods from an other export-processing enterprise" or the import declaration (if it is not yet eligible for the implementation of e-customs procedures and complies with the procedures prescribed for sale and purchase contracts);

a.2/ To send information in the e-customs declaration to the customs office;

a.3/ To receive feedback from the customs office:

a.3.1/ To receive the "notice of refusal for bringing goods in export-processing enterprises", made according to the form "Notice of permission/refusal for bringing goods to the inland or in export-processing enterprise" and modify and supplement the declaration at the request of the customs office;

a.3.2/ To receive the "notice of permission for bringing goods in export-processing enterprises", made according to the form "Notice of permission/refusal for bringing goods to the inland or in export-processing enterprise", in case goods are permitted by the customs office to be brought in the export-processing enterprise;

a.3.3/ To print out the document of goods brought in export-processing enterprises and hand it over to the domestic enterprise or the other export-processing enterprise for carrying out procedures for certification of actual exportation (if any).

b/ In case the customs office requests the submission or production of dossiers, a dossier to be submitted or produced by the export-processing enterprise to the customs office comprises:

b.1/ The sale and purchase or processing contract between the export-processing enterprise and the domestic enterprise or another export-processing enterprise;

b.2/ Financial invoices (if any);

b.3/ The export declaration of the domestic enterprise or the document of goods taken out of the export-processing enterprise or the export declaration (if not eligible for the implementation of e-customs procedures) of another export­processing enterprise delivering goods for which customs procedures have been completed.

c/ Modification and supplementation of documents of goods brought in an export-processing enterprise

c.1/ In case of modification or supplementation of contents declared in documents before receiving goods, the export-processing enterprise shall send the modified document of goods brought in, made according to the form "Notice of permission/refusal for bringing goods to the inland or in export-processing enterprise," to the customs office;

c.2/ The modified and supplemented information must comply with the prescribed items and standard format as specified in the form "Document of goods brought in export-processing enterprise and document of goods received from another export-processing enterprise";

c.3/ The sending of information and receipt of feedback follow the procedures for declaration of goods brought in export-processing enterprises.

2.2. Responsibilities of the district-level Customs Department managing the export-processing enterprise

a/ To check and receive the document of goods brought in the export-processing enterprise as well as modified and supplemented documents.

The e-customs data processing system will check and accept registration and grant reference numbers for documents of goods brought in and send feedback to the export-processing enterprise.

When requested, customs officers shall personally examine information in the system and, based on examination results, decide on the registration and grant of reference numbers for documents of goods brought in export-processing enterprises via the e-customs data processing system.

b/ When the system requests the submission or production of a dossier, customs officers shall personally examine the dossier.

c/ When it is necessary to conduct physical inspection of goods, the district-level Customs Department managing the export-processing enterprise shall conduct the physical inspection before goods are brought in the export-processing enterprise.

2.3. Time limit for declaration: The export-processing enterprise shall make declarations and bring goods in within 30 days after the domestic enterprise registers the export declaration or another export-processing enterprise fills in the document of goods taken out or the export declaration (if not eligible for the implementation of e-customs procedures);

2.4. Goods shall be delivered after the export-processing enterprise fills in the document of goods brought in the export-processing enterprise and obtains approval from the customs office. Involved parties shall ensure the original conditions of goods and transport goods to the place of goods delivery for deliver)' to the export-processing enterprise.

Article 55. Customs procedures for goods taken out of export-processing enterprises

The origin of goods taken out of export-processing enterprises for export or bringing to the inland, other export-processing enterprises or bonded warehouses must be clearly declared to identify whether they are products, semi­finished products, scraps or wastes from the production process, machinery or equipment for formation of fixed assets awaiting liquidation, or other goods in service of production and business activities of enterprises which are to be taken out. or goods sold and purchased under Decree No. 23/2007/ND-CP.

1. Goods exported from export-processing enterprises to foreign countries:

Procedures for goods exported from export-processing enterprises to foreign countries comply with those applicable to sale and purchase contracts (except tax declaration) prescribed in Chapter II of this Circular.

2. Goods brought from export-processing enterprises to the inland, other export-processing enterprises or bonded warehouses

2.1. Responsibilities of the export-processing enterprise

The export-processing enterprise shall fill in a document of goods taken out of the export-processing enterprise according to the form "Document of goods brought to the inland or document of goods delivered to another export-processing enterprise" or the export declaration (if it is not eligible for the implementation of e-customs procedures and complies with procedures applicable to goods sale and purchase contracts).

a/ The e-customs data processing system shall check and accept registration and issue the reference number for documents of goods brought to the inland.

When requested, customs officers shall personally examine information in the system and, based on the examination results, decide on the registration and issuance of the reference number for documents of goods taken out via the e-customs data processing system.

b/ When the system requests the submission or production of a dossier, customs officers shall personally examine the dossier and. based on the examination results, decide on the registration and issuance of the reference number for documents of goods taken out via the e-customs data processing system. A dossier to be submitted or produced to the customs office comprises:

b.1/ The sale and purchase or processing contract between the export-processing enterprise and the domestic enterprise;

b.2/ Financial invoices (if any).

2.2. Responsibilities of the district-level Customs Department managing the export-processing enterprise

a/ To check and receive documents of goods taken out.

The e-customs data processing system shall check and accept the registration and issue the reference number for documents of goods taken out and send feedback to the export-processing enterprise.

When requested, customs officers shall personally examine information in the system and. based on examination results, decide on the registration and issuance of the reference number for documents of goods taken out via the e-customs data processing system.

b/ When the system requests the submission or production of a dossier, customs officers shall personally examine the dossier and, based on the examination results, decide on the registration and issuance of the reference number for documents of goods brought to the inland via the e-customs data processing system.

c/ In case physical inspection of goods is required:

The district-level Customs Department carrying out procedures for import of goods by the domestic enterprise or another export-processing enterprise shall conduct the physical inspection of goods under regulations.

2.3. The validity term of a document of goods brought to the inland or to another export-processing enterprise is 30 days from the date of its registration.

2.4. The export-processing enterprise shall deliver goods only after the domestic enterprise registers the import declaration or another export-processing enterprise declares the document of goods brought in or the import declaration (if not eligible for the implementation of e-customs procedures). Involved parties shall ensure the original conditions of goods and transport them from the export-processing enterprise to the place of goods delivery for delivery to the domestic enterprise, export-processing enterprise or bonded warehouse.

Article 56. Procedures for liquidation of goods

The forms of liquidation, goods subject to liquidation and liquidation conditions and dossiers applicable to goods imported or brought in export-processing enterprises comply with Circular No. 04/2007/TT-BTM of April 4, 2007, of the Ministry of Trade (the Ministry of Industry and Trade).

1. Procedures for liquidation through export comply with those applicable to sale and purchase contracts defined in Chapter II of this Circular;

2. Procedures for liquidation through sale in the Vietnamese market comply with Clause 2, Article 55 of this Circular;

3. Procedures for liquidation thought donation in Vietnam comply with regulations on donation prescribed in Clause 4, Article 40 of this Circular.

4. Procedures for destruction of goods:

4.1. Responsibilities of the export-processing enterprise

Before destroying goods, the export-processing enterprise shall declare information on the destruction of raw materials, supplies, products, scraps or wastes to the customs office, enclosed with the written permission for destruction in Vietnam, issued by the provincial-level Natural Resources and Environment Department, according to the items and standard format specified in the form "Information on destruction of raw materials, products, scraps and wastes." The export-processing enterprise must abide by current tax regulations applicable to destroyed raw materials, supplies, products, scraps and wastes.

4.2. Responsibilities of the district-level Customs Department managing the export-processing enterprise:

a/ To receive, inspect and give feedback to the export-processing enterprise's proposal for the supervision of destruction of raw materials, supplies, products, scraps or wastes.

b/ To supervise the destruction under regulations.

5. After goods are completely destroyed, involved parties must make a minutes on supervision of destruction. Such a minutes must bear the signature of the director of the export-processing enterprise (or authorized person), seal of the export-processing enterprise and signatures of the custom officer conducting the supervision and concerned parties.

Article 57. Reporting on and inspection of goods brought in and taken out of export-processing enterprises and inspection of in-stock goods

1. Responsibilities of export-processing enterprises:

1.1. Export-processing enterprises shall send a report on goods brought in, taken out, liquidated, destroyed or left in stock in the preceding quarter to their managing district-level Customs Departments in the period between the Is1 and the 15,h of the subsequent month at the request of customs offices.

Export-processing enterprises shall make reports on goods brought in, taken out, liquidated, destroyed or left in stock according to the items and standard format specified in the form "Report on in-stock goods of export-processing enterprise."

1.2. Annually, enterprises shall conduct inspection of in-stock goods; make a report on results of the physical inspection and compare goods actually kept in stock against data shown in books kept at customs offices.

Enterprises shall notify customs offices of the time and place of inspection 15 days in advance and coordinate with the latter in conducting the inspection. Custom offices shall consider and decide to coordinate with enterprises in conducting the inspection and notify thereof to enterprises.

1.3. Enterprises shall produce dossiers and documents related to the inspection conducted by customs offices upon request.

1.4. In the process of inspection, export-processing enterprises shall explain about concerned matters at the request of customs offices.

2. Responsibilities of district-level Customs Departments managing export-processing enterprises:

2.1. District-level Customs Departments managing export-processing enterprises shall balance data on goods brought in, taken out, liquidated or destroyed and consider reports of export-processing enterprises to determine the quantity of goods actually brought in and taken out of enterprises and in-stock goods of these enterprises on a quarterly basis (3 months) or any time when having doubts.

2.2. Examination of dossiers of export-processing enterprises

Based on information analysis results, cross­checked data and doubtful information (if any), customs offices shall decide to examine dossiers of export-processing enterprises. The decision on examination of dossiers shall be made according to the form "Notice of physical inspection of in-stock goods." The examination may be conducted at customs offices or enterprises' headquarters.

2.3. Examination of dossiers and physical inspection of in-stock goods

When necessary, district-level Customs Departments managing export-processing enterprises shall identify cases subject to dossier examination and physical inspection of in-stock goods and send notices, made according to the form "Notice of physical inspection of in-stock goods" to export-processing enterprises. The physical inspection of in-stock goods shall be conducted at export-processing enterprises.

Export-processing enterprises shall produce dossiers and documents prescribed at Point 1.3, Clause 1 and in-stock goods for inspection by customs offices.

If detecting errors through examination of dossiers or physical inspection of in-stock goods, customs offices shall take any of the following measures: post-custom clearance inspection, handling of customs administrative violations or tax assessment under regulations.

Section 2. CUSTOMS PROCEDURES FOR GOODS OF PRIORITY ENTERPRISES

Article 58. Subject of application

1. Export-processing enterprises for which the Government has committed to create favorable conditions in the performance of customs procedures or export-processing enterprises which conduct production activities in hi-tech domains, have properly observed the customs law. or have a transparent accounting system.

2. Enterprises conducting production and business activities in Vietnam and supplying goods in service of production activities of priority enterprises. Enterprises supplying goods to priority enterprises must have properly observed the customs law.

3. Customs procedures for priority enterprises are prescribed in Section 2. Chapter V; procedures not yet prescribed in this Section are specified in Section 1, Chapter V.

Article 59. Procedures for recognition of priority enterprises

1. Enterprises shall submit dossiers of application for recognition of export-processing enterprises eligible for priority. Such a dossier comprises:

1.1. An application for recognition of priority enterprise;

1.2. A copy of the Government's permission for creation of favorable conditions for the performance of customs procedures. The original thereof must be produced for examination and comparison;

1.3. A copy of the business registration certificate or investment license of the export-processing enterprise;

2. The order of receiving registration dossiers and consideration for recognition of priority enterprises:

The General Department of Customs shall receive a registration dossier and consider the recognition of a priority enterprise according to the following order:

2.1. Receiving and checking the validity of the registration dossier. If rejecting the dossier, it shall issue a written reply clearly stating the reason;

2.2. Within 30 days after the dossier is accepted, the priority enterprise shall supply information to evidence that it satisfies all conditions prescribed in Clause 1, Article 58 of this Circular. In case the priority enterprise fails to prepare sufficient information on time as requested, it may make a written request to the General Department of Customs for consideration and extension of this time limit for another 30 days.

If the priority enterprise fails to supply sufficient information as requested or clarify supplied information, or refuses to supply information, the General Department of Customs shall issue a written notice of refusal to consider the recognition of priority enterprise;

3. The General Department of Customs and enterprises satisfying the above conditions shall conclude a memo of understanding, specifying rights and obligations of priority enterprises in the process of carrying out customs procedures; responsibilities and powers of customs offices managing enterprises. The memo of understanding between the General Department of Customs and enterprises will serve as a basis for the performance of customs procedures for goods of priority enterprises.

Article 60. Rights and obligations of priority enterprises

Apart from rights and obligations specified in Article 7 of this Circular, priority enterprises have the following rights and obligations:

1. Rights of priority enterprises:

1.1. To cary out e-customs procedures 24 hours a day and 7 days a week;

1.2. To make customs declaration of goods imported from or exported to foreign countries on abridged e-declarations and monthly e-declarations according to the items and standard format specified in the form "Abridged/monthly e-declaration:"

1.3. Within the first 5 days of every month, to fill in monthly e-declarations to declare the total quantity of goods received in the previous month from each partner, for goods brought in priority enterprises (from the inland, ordinary export-processing enterprises, other priority enterprises or bonded warehouses);

1.4. To be given with priority in registering norms of raw materials and supplies for export production, for raw materials subject to norm-based management;

1.5. To have their registrations received, inspected and accepted by customs offices via the e-customs data processing system on the basis of simplified e-customs declarations, monthly declarations and registered norms of raw materials and supplies. Such a notice shall be made according the form "Notice of acceptance/ refusal for bringing goods to the inland or in export-processing enterprise";

1.6. To have documentary examination or physical inspection of goods conducted at their offices or other places registered by them and accepted by customs offices;

1.7. To use the customs clearance order printed out from the e-customs data processing system according to the form of the goods release slip already registered with customs offices (seals of enterprises and signatures of enterprises' representatives are not required) for the customs clearance of goods and use as the document of carriage, for goods lots accepted by customs offices to be cleared from customs procedures via the e-customs data processing system;

1.8. To use invoices printed out from the e-customs data processing system, which bear seals of enterprises and signatures of enterprises' representatives for the customs clearance of goods in case the e-customs data processing system breaks down and temporarily suspends from operation.

2. Obligations of priority enterprises:

2.1. To register norms of raw materials and supplies subject to norm-based management in accordance with actual norms and take responsibility for the registered norms;

2.2. For raw materials not subject to norm-based management, to notify in writing customs offices of their use and management and methods of calculation of wastage for customs offices to manage them on the basis of the actual management by enterprises;

2.3. To supply sufficient and accurate information at the request of customs offices for consideration and evaluation of enterprises' compliance;

2.4. To observe requests for periodical inspection and appraisal of compliance according to plans notified in advance or unexpected requests of customs offices;

2.5. To work out a regulation on close coordination between store-management sections and import/export procedure sections so as to promptly make additional declaration with customs offices if there is an inconsistency between declared information and goods actually received;

2.6. To compare their partners' declarations which are reflected by customs offices against goods actually received. When detecting any inconsistency, to notify such to the customs offices within 1 day. To work with their partners to clarify these contents and request panners to make additional declarations to customs offices within 2 days after detecting the inconsistency;

2.7. To supply and regularly update the list of their partners and send this list to customs offices for consideration and approval. To request partners to carry out customs procedures at their managing district-level Customs Departments:

2.8. To coordinate with customs offices in controlling the observance of the customs law by their partners;

2.9. To properly and fully abide by commitments in the memo of understanding already signed with customs offices. To ensure the compliance with management requirements of customs offices in the process of carrying out simplified customs procedures.

Article 61. Procedures for annulment of recognition of priority enterprises

1. For priority enterprises

1.1. Cases of annulment:

Priority enterprises which breach any of obligations defined in the memo of understanding or fail to satisfy the conditions specified in Article 58 of this Circular or fail to maintain conditions specified in Article 60 of this Circular will no longer be recognized as priority enterprise.

1.2 Annulment procedures:

a/ When having sufficient grounds for determining that a priority enterprise has breached the prescribed obligations of priority enterprises, the customs office that has made a written record of the breach shall decide to suspend the enterprise's rights to enjoy customs procedure priorities in the area under its management and send a report, enclosed with the relevant dossier, to the General Department of Customs.

The General Department of Customs shall consider and decide to suspend the priority enterprise's rights to enjoy customs procedure priorities nationwide. If ascertaining that the enterprise has breached the conditions for enjoying procedure priorities, the General Department of Customs shall issue a decision to annul the recognition of the export-processing enterprise's rights to enjoy customs procedure priorities.

b/ When receiving information on signs of breach of obligations of priority enterprises, the customs office shall immediately send a report, enclosed with the relevant dossier, to the General Department of Customs for the latter to promptly take measures to verify the information and conduct unexpected inspection when necessary;

If finding that the priority enterprise does not breach obligations, the General Department of Customs shall issue a written notice thereon to the reporting customs office;

If ascertaining that the priority enterprise has breached the obligations, the General Department of Customs shall carry out procedures prescribed at Point a of this Clause.

2. For enterprises conducting production and business activities in Vietnam in service of production activities of priority enterprises

If they breach any of the obligations specified in Article 62 of this Circular, they shall be excluded from the list of those eligible for customs procedure priorities.

Article 62. Rights and obligations of suppliers of priority enterprises

1. Rights of suppliers of priority enterprises:

1.1. To carry out e-customs procedures 24 hours a day and 7 days a week for goods supplied to priority enterprises;

1.2. To make customs declarations on the abridged e-customs declaration according to the items and standard format specified in the form "Abridged e-customs declaration/monthly e-customs declaration", for goods supplied to priority enterprises;

1.3. To have their registrations received, inspected and accepted by customs offices via the e-customs data processing system on the basis of simplified e-customs declarations, for goods supplied to priority enterprises. Such a notice shall be made according to the form "Notice of acceptance/refusal for bringing goods to the inland or in export-processing enterprise."

2. Obligations of suppliers of priority enterprises:

2.1. To declare and take responsibility for the performance of simplified customs procedures. To enjoy the rights specified in Clause 1 of Article 62 only for goods supplied for operations of priority enterprises;

2.2. To report on results of the working session with priority enterprises to district-level Customs Departments managing these priority enterprises and make additional declarations (if any) within the prescribed time limit, if there is any inconsistency between information declared by them and goods actually received by priority enterprises.

Article 63. Responsibilities of customs offices in managing priority enterprises

1. To check and accept norms of raw materials and supplies declared by priority enterprises;

2. To check and receive abridged e-customs declarations; accept the customs clearance for goods imported from and exported to foreign countries or brought from goods-delivering export-processing enterprises or bonded warehouses; and send the notice of acceptance of customs clearance to customs declarants and priority enterprises;

3. To check and receive registrations and issue a notice of acceptance of information declared in monthly e-customs declarations of priority enterprises;

4. To receive priority enterprises' notices of inconsistent declarations made by their partners. Within 3 days after receiving a notice, if district-level Customs Departments managing priority enterprises receive no report on results of the working session between priority enterprises and their partners, they shall request priority enterprises and their partners to come to their offices to work and handle the cases under regulations.

If a partner fails to make additional declarations within the prescribed time limit without any plausible reason more than twice, district-level Customs Departments managing priority enterprises may request the General Department of Customs to disallow this partner to carry out simplified customs procedures;

5. Directors of district-level Customs Departments managing priority enterprises where e-customs procedures are carried out shall decide to conduct physical inspection of goods of priority enterprises, if detecting signs of violation of the customs law;

6. To notify priority enterprises of any breakdown or temporary suspension of the e-customs data processing system;

7. To permit the release of goods on the basis of documents produced by customs declarants in case the e-customs data processing system breaks down and temporarily suspends from operation. District-level Customs Departments managing priority enterprises shall examine and compare information in documents against information updated by priority enterprises to the e-customs data processing system after the system resumes operation;

8. Within 15 days after receiving documents from priority enterprises, the General Department of Customs shall notify priority enterprises of their partners which are allowed and those which are disallowed to carry out simplified customs procedures, clearly stating the reason.

Chapter VI

CUSTOMS PROCEDURES FOR GOODS BROUGHT IN OR TAKEN OUT OF BONDED WAREHOUSES

Article 64. Procedures for registration, modification and supplementation of lists of goods

1. Customs clearance places: Customs declarants shall carry out customs procedures for goods brought in or taken out of bonded warehouses at customs offices managing these bonded warehouses.

2. All goods brought in or taken out of bonded warehouses must be registered. For unregistered goods, customs declarants shall make additional declaration to these lists.

3. Time of registration, modification and supplementation of lists

3.1. Time of registration of lists: before goods are brought in bonded warehouses.

3.2. Time of modification and supplemen­tation of lists

a/ Before the customs declarant carries out procedures for bringing goods in bonded warehouses, he/she may modify or supplement all information in the list of goods brought in or taken out bonded warehouses;

b/ If detecting errors in the declaration of the list after the point of time specified in Item a of this Point, the customs declarant may modify the declared contents if he/she invokes plausible reasons accepted by the custom office, but may not modify commodity codes and units of calculation.

4. Procedures for registration of lists

4.1. The declaration, modification and supplementation of the list of goods brought in or taken out of bonded warehouses shall be made according to the form "List of goods brought in or taken out of bonded warehouse".

4.2. All items regarding the appellation of goods, commodity code, unit of calculation and origin of goods registered in the list must be consistently declared from the time goods are brought in bonded warehouses to the time the enterprise terminates bonded warehousing activities.

5. For goods brought from foreign countries to bonded warehouses, the bill of lading must be clearly inscribed "goods consigned to bonded warehouses." Imported goods brought in bonded warehouses in industrial parks, hi-tech parks, export-processing zones and other special economic zones outside border-gate areas (below collectively referred to as industrial parks) are goods imported by enterprises located in industrial parks, enterprises in nearby industrial parks without bonded warehouses and export-processing enterprises outside these industrial parks (including enterprises in industrial parks and export-processing enterprises of nearby provinces and cities) in service of their production, business and service activities.

Article 65. Customs procedures for goods brought in bonded warehouses

1. A customs dossier of goods brought in bonded warehouses comprises:

1.1. The e-customs declaration of goods brought in or taken out of bonded warehouses, made according to a set form;

1.2. The bonded warehouse-hire contract: one in electronic form or 01 copy:

In case the goods owner is also the owner of the bonded warehouse, the bonded warehouse-hire contract is not required.

1.3. The paper of authorization for goods receipt (if the receipt of goods is not authorized in the warehouse-hire contract): one in electronic form or 01 original or 01 facsimile copy signed and sealed by the owner of the bonded warehouse;

1.4. The detailed list of goods, for goods of different kinds or packages (particularly for cars and motorbikes, frame numbers and engine numbers must be inscribed): one original;

1.5. Documents proving goods' eligibility for being brought in bonded warehouses: one in electronic form or 01 copy

2. Customs procedures for goods brought in bonded warehouses:

2.1. Creating e-customs declaration information in the declaration of goods brought in or taken out of bonded warehouses according to the specified items and standard format.

2.2. Sending the e-customs declaration to the customs office:

2.3. Receiving feedback from the customs office and complying with its guidance:

a/ Receiving a "notice of rejection of the e-customs declaration" and modify or supplement the e-customs declaration at the request of the customs office and send the modified or supplemented declaration to the customs office;

b/ Receiving a "notice of instructions on performance of e-customs procedures" in any of the following forms and performing the following jobs:

b.1/ Accepting the information in the e-customs declaration of goods brought in or taken out of bonded warehouses and permitting the warehousing of goods on the basis of the declaration:

b.1.1/ The customs declarant shall print out the declaration of goods brought in or taken out of bonded warehouses, sign and append a seal thereon (02 copies) (below referred to as printed e-customs declaration of goods brought in or taken out of bonded warehouses) based on the e-customs declaration accepted by the customs office;

b.1.2/ The customs declarant shall produce to the district-level Customs Departments where e-customs procedures are carried out 02 printed e-customs declarations for certification of "customs clearance"; receive back 01 printed e-customs declaration for production, together with goods, to the customs office supervising the bonded warehouse for certification of "goods already brought in bonded warehouses": or.

He/she shall produce 01 printed e-customs declaration of goods brought in or taken out of bonded warehouses, together with goods, to the customs office supervising the bonded warehouse which is connected to the e-customs data processing system for certification of "goods already brought in bonded warehouses". Within the time limit prescribed by the law for archive of customs dossiers for goods brought in or taken out of bonded warehouses, if the customs declarant wishes to obtain the certification of "customs clearance", he/she shall produce 02 printed e-customs declaration of goods brought in or taken out of bonded warehouses (one with the certification "goods already brought in bonded warehouses") to the district-level Customs Department receiving and processing e-customs dossiers for certification of customs clearance.

b.2/ Submitting e-documents in the e-customs dossier for inspection before customs clearance is permitted. The customs declarant shall create information in e-customs documents as requested on the e-customs data processing system, transmit them to the customs office via the system, and receive a "notice of instructions for the performance of e-customs procedures" in any of the following forms and performing the following jobs:

b.2.1/ "Customs clearance": The customs declarant shall perform the jobs specified at Points b.1.1 and b.1.2, Item b of this Clause;

b.2.2/ Producing or submitting paper documents in the e-customs dossier for examination: The customs declarant shall perform the jobs specified in Item b.3 of this Clause.

b.3/ Submitting paper documents in the e-customs dossier for inspection before customs clearance is permitted.

The customs declarant shall submit 02 printed e-customs declarations of goods brought in or taken out of bonded warehouses, together with documents in the customs dossier, to the district-level Customs Department where e-customs procedures are carried out for examination as requested; receive 01 printed e-customs declaration with the certification of "customs clearance" and 01 slip showing results of examination of paper documents for production, together with goods, to the customs office supervising the bonded warehouse for inspection and certification of "goods already brought in bonded warehouses".

2.4. If having any doubt in the process of supervising goods brought in bonded warehouses, the customs office may request physical inspection of goods and the customs declarant shall produce goods for inspection by the customs officer supervising bonded warehouses.

2.5. Customs procedures for goods in border-gate transfer which are transferred from the border gate of import to bonded warehouses or from the inland to bonded warehouses comply with Article 29 of this Circular.

Article 66. Customs procedures for goods taken out of bonded warehouses

1. A customs dossier for goods taken out of bonded warehouses comprises:

1.1. The e-document of goods taken out of bonded warehouses, made according to a set form;

1.2. The paper of authorization for goods delivery (if the delivery of goods is not yet authorized in the warehouse-hire contract): one in the electronic form or 01 original or 01 facsimile copy signed and sealed by the owner of the bonded warehouse;

1.3. The detailed list of goods, for goods of different kinds or packages (particularly for cars and motorbikes, frame and engine numbers must be inscribed): one original;

1.4. Documents proving goods' eligibility for being taken out of bonded warehouses: one in electronic form or 01 copy.

2. Customs procedures for goods taken out of bonded warehouses

2.1. Creating e-customs declaration information on the declaration of goods taken out of bonded warehouses according to the specified items and standard format.

2.2. Sending the e-customs declaration to the customs office;

2.3. Receiving feedback from the customs office:

a/ Receiving a "notice of rejection of the e-customs declaration" and modify or supplement the customs declaration at the request of the customs office and send the modified or supplemented customs declaration to the customs office;

b/ Receiving a "notice of instructions on performance of e-customs procedures" in any of the following forms and performing the following jobs:

b.1/ Accepting information declared in the e-document of goods taken out of the bonded warehouse and permitting the ex-warehousing of goods based on the document of goods taken out of bonded warehouses:

b.1.1/ The customs declarant shall print out the e-customs declaration of goods taken out of bonded warehouses, sign and append a seal thereon (01 copies) (below referred to as printed e-customs declaration of goods taken out of bonded warehouses) based on the e-customs declaration accepted by the customs office;

b.1.2/ The customs declarant shall produce to the district-level Customs Department where e-customs procedures are carried out 02 printed e-customs declarations for certification of "customs clearance"; receive back 01 printed e-customs declaration for production, together with goods, to the customs office supervising the bonded warehouse for certification of "goods already brought in bonded warehouses," and further carry out procedures for taking goods out of bonded warehouses; or.

He/she shall produce 01 printed e-customs declaration, together with goods, to the customs office supervising the bonded warehouse which is connected to the e-customs data processing system for certi fication of "goods already brought in bonded warehouses". Within the time limit prescribed by the law for archive of customs dossiers for goods brought in or taken out of bonded warehouses, if the customs declarant wishes to obtain the certification of "customs clearance", he/she shall produce 02 printed e-customs declarations (one with the certification of "goods already taken out of bonded warehouses") to the district-level Customs Department receiving and processing the e-customs dossier for certification of customs clearance.

b.2/ Submitting e-documents in the e-customs dossier for inspection before customs clearance is permitted. The customs declarant shall create information in e-customs documents as requested on the e-customs data processing system, transmit them to the customs office via the system and receive a "notice of instructions on the performance of e-customs procedures" and performing the following jobs:

b.2.1/ Customs clearance: The customs declarant shall perform the jobs specified at Sub-items b.1.1 and b.1.2. Item b of this Clause;

b.2.2/ Producing or submitting paper documents in the e-customs dossier for examination: The customs declarant shall perform the jobs specified in Item b.3 of this Clause.

b.3/ Submitting paper documents in the e-customs dossiers for examination before customs clearance is permitted:

The customs declarant shall submit 02 printed e-customs declarations of goods taken out of bonded warehouses, together with documents in the e-customs dossier, to the district-level Customs Department where e-customs procedures are carried out for examination as requested; receive 01 printed e-customs declaration with the certification of "customs clearance" and 01 slip showing results of inspection of paper documents for production, together with goods, to the customs office supervising the bonded warehouse for inspection and certification of "goods already taken out of bonded warehouses" and further carry out procedures for taking goods out of bonded warehouses.

4. Customs procedures for goods in border-gate transfer which are taken out of bonded warehouses to the border gate of export or from the bonded warehouses to the inland comply with Article 29 of this Circular.

Article 67. Customs inspection and supervision in other cases

1. For goods transported from one bonded warehouse to another in the Vietnamese territory

1.1. The customs declarant shall make declaration as prescribed in the customs procedures for goods taken out of bonded warehouses. In addition, he/she shall perform the following jobs:

a/ Printing out the document of goods taken out of bonded warehouses, signing and appending a seal thereon (03 copies) based on the e-document of these goods accepted by the customs office:

The customs declarant shall produce to the district-level Customs Department where e-customs procedures are carried out 03 printed e-documents of goods taken out of bonded warehouses for certification of "customs clearance." receive back 02 printed e-documents for production to the customs office supervising the bonded warehouse for certification of "goods already taken out of the bonded warehouses" and further carry out procedures for taking goods out of bonded warehouses; or.

He/she shall produce 02 printed e-documents to the customs office supervising the bonded warehouse which is connected to the e-customs data processing system for the latter to make certification of "goods already taken out of bonded warehouses". Within a time limit prescribed by the law for archive of customs dossiers for goods brought in or taken out of bonded warehouses, if the customs declarant wishes to obtain the certification of "customs clearance" in the printed e-document, he/she shall submit 02 printed e-document (01 with the certification of "goods already taken out of bonded warehouses") to the customs office receiving and processing the customs dossier for certification of customs clearance.

b/ Receiving 01 record of goods delivery and 02 printed e-documents of goods taken out of bonded warehouses bearing the certification of "goods already taken out of bonded warehouses";

c/ Packaging goods to be transported from one bonded warehouse to another in accordance with customs sealing requirements prescribed by law. Transporting goods, accompanied with 02 e-documents of goods taken out of bonded warehouses, in strict accordance with the itinerary and time schedule registered in the record of goods delivery to the bonded warehouse of destination;

d/ When goods are transported to the bonded warehouse of destination, the customs declarant shall produce 02 printed e-documents of goods taken out of bonded warehouses to the customs office supervising the bonded warehouse of destination.

1.2. Customs officers supervising the bonded warehouse of destination shall:

Check goods against the printed e-document of goods taken out of bonded warehouses and the record of goods delivery, if these goods are consistent with the record, permit goods to be brought in the bonded warehouse and record it in the e-customs data processing system; write down the number of the declaration of goods brought in or taken out of bonded warehouses in the printed e-document of goods taken out of bonded warehouses and return 01 copy to the customs declarant and keep 01 copy.

The printed e-documem of goods taken out of bonded warehouses which bears the number of the declaration of goods brought in or out of the bonded warehouse of destination may also be used as the ex-warehousing document in the bonded warehouse of departure and the warehousing document in the bonded warehouse of destination when carrying out subsequent customs and liquidation procedures.

1.3. The term of a bonded warehouse-hire contract is counted from the date goods are brought in the first bonded warehouse.

2. Customs procedures for goods subject to ownership transfer while being kept in bonded warehouses

After transferring the ownership of goods, the former goods owner and the new goods owner shall perform the following jobs:

2.1. The former goods owner shall carry out customs procedures as for goods taken out of bonded warehouse and transfer 01 printed e-document of goods taken out of bonded warehouses which bears the certification of "customs clearance" to the new goods owner.

2.2. The new goods owner shall carry out customs procedures as for goods brought in bonded warehouses.

Article 68. Liquidation and inspection of goods brought in or taken out of bonded warehouses

1. Liquidation of declarations of goods brought in or taken out of bonded warehouses

1.1. Liquidation principles

a/ Goods brought in a bonded warehouse which are declared in a declaration of goods brought in or taken out of bonded warehouses may be taken out of the bonded warehouse for once or several times.

b/ For declarations of goods brought in or taken out of bonded warehouses under which all goods are taken out of the warehouse within the term of the warehouse-hire contract, the c-custom data processing system shall automatically make comparison and liquidation and issue a reply to the customs declarant.

When requested by the customs declarant, the customs officer of the customs office receiving and processing customs declarations or the custom officer supervising the bonded warehouse shall, based on information in the e-customs data processing system, sign and append a seal in the reply issued to the customs declarant.

c/ For declarations of goods brought in or taken out of bonded warehouses under which goods has not been completely taken out of the warehouse within the term of the warehouse-hire contract, within 15 days after the expiration date of the warehouse-hire contract, the owner of the bonded warehouse shall send a "request for liquidation of the declaration of goods brought in or taken out of bonded warehouses." made according to the items and standard format specified in the form "Request for liquidation of the declaration of goods brought in or taken out of bonded warehouses" to the customs office to which the declaration of goods brought in bonded warehouse has been registered.

1.2. A liquidation dossier comprises:

a/ A request for liquidation of the e-declaration of goods brought in or taken out of bonded warehouses, made according to a set form;

b/ Proposals on the disposal of in-stock goods upon the expiration of the warehouse-hire contract.

1.3. Time limit for receipt, inspection and comparison of liquidation dossiers by customs offices

Within 10 days after the customs office receives the "request for liquidation of the declaration of goods brought in or taken out of bonded warehouses" from the customs declarant, it shall complete the inspection and comparison of liquidation results on the e-customs data processing system and issue a "notice of acceptance of liquidation results'* or a "notice of rejection of liquidation results", clearly stating the reason.

2. The procedures for liquidation of goods left in bonded warehouses comply with the Finance Ministry's Circular No. 36/2003/TT-BTC of April 17, 2003, guiding the handling of goods left in bonded warehouses.

3. Inspection of goods in bonded warehouses

Customs offices may inspect goods left in bonded warehouses on a regular basis or at any time when having doubts. Enterprises shall produce dossiers and in-stock goods when receiving inspection requests of customs offices.

Chapter VII

CUSTOMS PROCEDURES IN SOME OTHER CASES

Article 69. Customs inspection and supervision of goods imported to create fixed assets; raw materials, supplies, components and semi-finished products in service of production activities of projects eligible for investment incentives

1. Registration of lists of duty-free imports with customs offices in case goods are imported to create fixed assets or goods are raw materials, supplies, components or semi-finished products in service of production activities of projects eligible for investment incentives which are exempted from import duty: The registration procedures comply with Article 101 of the

Finance Ministry's Circular No. 79/2009/TT-BTC of April 20, 2009, guiding customs procedures, customs inspection and supervision, import duty, export duty and tax administration of imports and exports.

2. Import procedures: The customs procedures comply with the guidance for goods imported or exported under goods sale and purchase contracts prescribed in Chapter II of this Circular. In addition, it is required to conduct the registration of lists of duty-free imports to customs offices under Clause 1 of this Article. Tax exemption procedures and regulations on reporting, inspection and finalization of the import, export and use of duty-free goods comply with Articles 102 and 103 of the Finance Ministry's Circular No. 79/2009/TT-BTC of April 20, 2009, guiding customs procedures: customs inspection and supervision; import duty and export duty and tax administration of imports and exports.

3. Liquidation of imports:

3.1. Forms of liquidation, goods subject to liquidation, liquidation conditions and dossiers of liquidation of duty-free imports comply with the Trade Ministry's Circular No. 04/2007/BTM of April 4, 2007, guiding the import, export, processing and liquidation of imports and consumption of products by foreign-invested
enterprises.

The liquidation of duty-free imports of domestic enterprises complies with the Trade Ministry's Circular No. 04/2007/TT-BTM of April 4, 2007.

3.2. Liquidation procedures shall be carried out at the customs office with which the list of duty-free imports has been registered.

3.3 Liquidation procedures:

a/ The enterprise or liquidation board shall send to the customs office with which the list the duty-free imports has been registered a document clearly stating the reason for liquidation, appellations, codes and quantity of goods to be liquidated, and the serial number and date of the import declaration.

b/ In case of liquidation through export, the enterprise shall open an export declaration. In case of liquidation through sale in the Vietnamese market or through donation, tax shall be declared and calculated under regulations and the opening of a new declaration is not required.

c/ In case goods are destructed, the enterprise shall abide by regulations of environmental management agencies and conduct the destruction under the supervision by the customs office.

Article 70. Customs procedures for goods traded by mode of temporary import for re-export

1. General principles

Customs procedures for goods traded by mode of temporary import for re-export comply with those prescribed for goods imported and exported under goods sale and purchase contracts. In addition, due to particular characteristics of this mode of business, some contents are additionally guided as follows:

1.1. Customs procedures for goods traded by mode of temporary import for re-export shall only be carried out at border gates.

1.2. Customs procedures for re-export shall be carried out at the border gate of import or the border gate of re-export.

1.3. Goods temporarily imported for re-export which are goods on the list of those banned from import must be kept in the area of the border gate of import and procedures for re-export must be carried out at the district-level Customs Department of the border gate of temporary import. In case re-exported goods are allowed to be transported via a border gate other than the border gate of temporary import, the supervision of goods in the process of transport to the border gate of export shall be carried out as for goods in border-gate transfer.

2. Management of goods temporarily imported for re-export

2.1. When carrying out re-export procedures, apart from documents as prescribed for goods exported under a goods sale and purchase contract, the customs declarant shall submit 01 copy and produce the original of the temporary import declaration;

2.2. Temporarily imported goods will be subject to customs supervision and may be divided into several lots for re-export;

2.3. Re-exported goods for which customs procedures have been completed must be exported within 8 working hours after goods are brought to the border gate of export. If having plausible reasons accepted by the leadership of the district-level Customs Department of the border gate of export, re­exported goods may be kept at the border gate of export within the validity duration of the re­export declaration.

3. Liquidation of temporary import declarations

3.1. The district-level Customs Department carrying out temporary import procedures shall liquidate temporary import declarations.

3.2. The liquidation dossier complies with Article 118 of Circular No. 79/2009/TT-BTC.

3.3. The time limit for submission of the liquidation dossier complies with Clause 2, Article 131 of Circular No. 79/2009/TT-BTC.

3.4. In case temporarily imported goods are not fully re-exported, if the enterprise wishes to use goods for domestic consumption, it shall send a written request to the district-level Customs Department where import procedures are carried out shall consider and allow the enterprise to consume goods in the domestic market and conduct liquidation on the basis of the temporary import declaration. In this case, the enterprise is not required to register a new declaration but declare and pay import duty, excise tax and value-added lax (if any) according to form No. 01 in Appendix VI to Circular No. 79/2009/TT-BTC The time limit for payment of tax or fines for late tax payment complies with Clause 2, Article 18 of Circular No. 79/2009/TT-BTC.

Temporarily imported goods which are consumed in the domestic market must comply with tax policies and import management policies like goods imported under goods sale and purchase contracts.

Article 71. Customs procedures for goods imported or exported on the spot

1. Interpretation of terms

1.1. "Goods imported or exported on the spot" are goods exported by Vietnamese traders (including foreign-invested traders and export-processing enterprises) to foreign traders that designate the delivery of these goods in Vietnam to other Vietnamese traders.

1.2. "On-the-spot exporters" (below referred to as exporting enterprises) are those who are designated by foreign traders to deliver goods in Vietnam.

1.3. "On-the-spot importers" (below referred to as importing enterprises) are those who purchase goods from foreign traders but are designated by foreign traders to receive goods in Vietnam from on-the-spot exporters.

2. Grounds for identification of goods imported or exported on the spot

2.1. The export contract, processing contract or hire/borrowing contract with a term stating that goods will be delivered to a goods recipient in Vietnam;

2.2. The import contract, processing contract or hire/borrowing contract with a term stating that goods will be received from a goods deliverer in Vietnam;

2.3. Processed products; hired or borrowed machinery and equipment; unused raw materials, auxiliary materials and supplies; and scraps and discarded products belonging to processing contracts comply with Clause 3, Article 33 of the Government's Decree No. 12/2006/ND-CP of January 23, 2006, detailing the Commercial Law regarding international goods sale and purchase and goods sale and purchase agency, processing and transit with foreign parties;

2.4. For goods of foreign-invested enterprises: The Industry and Trade Ministry's guidance shall be complied with.

3. Customs procedures for on-the-spot import and export shall be carried out at the district-level Customs Department which is most convenient to enterprises according to regulations applicable to each type of on-the-spot import or export.

Within 30 days after the date the customs office makes certification of completion of e-customs procedures in the on-the-spot import customs declaration, the exporting enterprise shall complete export procedures. Past the above time limit, if the importing enterprise has completed customs procedures but the exporting enterprise still fails to carry out customs procedures, the customs office which has carried out procedures for on-the-spot export shall make a record, impose sanctions against administrative violations in the customs domain committed by the exporting enterprise and further carry out customs procedures without canceling the declaration.

4. Customs procedures

4.1. In case the exporting enterprise is eligible for e-customs procedures but the importing enterprise is subject to traditional customs procedures:

a/ Responsibilities of the exporting enterprise:

a.1/ To fully fill in items reserved for exporting enterprises in 04 on-the-spot import or export declarations, made according to form HQ/2009-TC - Appendix IV to Circular No. 79/2009/TT-BTC (below referred to as form HQ/ 2009-TC), sign and append a seal thereon;

a.2/ To hand over to the importing enterprise 04 customs declarations, together with goods and the value-added invoice (the original to be handed over to customers, clearly stating names of the foreign trader and the importing enterprise and the place of goods delivery in Vietnam).

a.3/ To declare information in the on-the-spot export declaration after receiving 02 on-the-spot import or export declarations which bear the certification of the customs office carrying out import procedures. A dossier to be submitted/ produced comprises:

a.3.1/ The e-customs declaration, made according to form HQ/2009-TKDTXK: to submit 02 originals;

a.3.2/ The customs declaration received from the goods recipient: To submit 01 original;

a.3.3/ Other documents to be submitted/ produced at the request of the customs office:

- The goods sale and purchase contract designating the delivery of goods in Vietnam (for the exporter); the goods sale and purchase contract or processing contract designating the receipt of goods in Vietnam (for the importer), hire or borrowing contract: to submit 01 copy;

- The value-added invoice issued by the exporting enterprise (the original to be handed over to customers): to submit 01 copy;

- Other papers as prescribed for imports and exports (except the bill of lading - B/L).

b/ Responsibilities of the importing enterprise: To carry out customs procedures under current regulations.

c/ Responsibilities of the customs office carrying out on-the-spot import procedures: To perform customs procedures under current regulations.

d/ Responsibilities of the customs office carrying out export procedures:

d.1/ To receive the customs dossier from the enterprise; conduct registration of the declaration according to regulations prescribed for each type of on-the-spot import or export, inspect the calculation of tax (if any): make certification of customs clearance, sign and append the officer seal on 02 e-customs export declarations, form HQ/2009-TKDTXK;

d.2/ To keep one 01 declaration, together with documents submitted by the enterprise, and return to the enterprise 01 declaration, together with documents produced by the enterprise.

4.2. In case the exporting enterprise is subject to traditional customs procedures while the importing enterprise is eligible for e-customs procedures

a/ Responsibilities of the exporting enterprise:

a.1/ To fully fill in all items reserved for exporting enterprises in 02 on-the-spot import or export declarations, which are made according to form HQ/2009-TC, sign and append the a thereon;

a.2/ To hand over to the importing enterprise 02 declarations, form HQ/2009-TC. goods and the value-added invoice (the original to be handed over the customers, clearly stating names of the foreign trader and the importing enterprise and the place of goods delivery in Vietnam);

a.3/ After fully receiving 02 customs declarations (bearing the signatures and seals of the importing enterprise and the customs office carrying out import procedures) from the importing enterprise, to register the declaration with the customs office carrying out export procedures.

b/ Responsibilities of the importing enterprise:

After receiving sufficient products and 02 customs declarations, form HQ/2009-TC, already filled in, signed and sealed by the exporting enterprise:

b.1/ To fill in all items reserved for importing enterprises in 02 declarations, form HQ/2009-TC, and at the same time fill in the e-declaration of on-the-spot import and carry out procedures under regulations. A customs dossier to be submitted/produced comprises:

b.1.1/ The printed e-customs declaration, form HQ/2009-TKDTXK: to submit 02 originals;

b.1.2/ The customs declaration, form HQ/ 2009-TC: to submit 02 originals;

b.1.3/ Other documents to be submitted/ produced at the request of the customs office:

- The goods sale and purchase contract designating the delivery of goods in Vietnam (for the exporter); the goods sale and purchase contract or processing contract designating the receipt of goods in Vietnam (for the importer), or the hire or borrowing contract: to submit 01 copy;

- The value-added invoice issued by the exporting enterprise (the original to be handed over to customers): to submit 01 copy;

- Other papers as prescribed for imports and exports (export the bill of lading -B/L).

b.2/ To receive and preserve goods delivered by the exporting enterprise until the customs office carrying out import procedures decides on the form and level of customs inspection;

b.3/ To produce samples of goods imported on the spot (for goods imported on the spot for use as raw materials for export processing and production) for inspection by the customs office upon request;

b.4/ After completing procedures for on-the-spot import, the importing enterprise shall keep 01 declaration, form HQ/2009/TKDTNK, and hand over 02 declarations, form HQ/2009/TC, to the exporting enterprise.

c/ Responsibilities of the customs office carrying out import procedures:

c.1/ To receive and register the declaration, decide on the form and level of inspection suitable to each type of on-the-spot import or export and inspect tax calculation (for taxable goods) under current regulations applicable to imports. To seal samples (if any) and hand them over to the enterprise for preservation and submission to the customs office upon request;

c.2/ To inspect goods which are subject to inspection;

c.3/ To certify the completion of customs procedures, sign and append the officer sea! on 04 declarations (02 declarations made according to form HQ/2009-TC and 02 printed e-customs declarations):

c.4/ To keep 01 printed e-customs declaration and documents submitted by the importing enterprise, return to the enterprise 03 declarations and documents produced by the enterprise;

c.5/ To notify the tax office directly managing the importing enterprise of information on the on-the-spot import declaration in writing or via the computer network between the district-level Customs Department carrying out import procedures and the local tax office.

d/ Responsibilities of the customs office carrying out export procedures: to perform customs procedures under current regulations.

4.3. In case where both the importer and the exporter are eligible for the implementation of e-customs procedures

a/ Responsibilities of the exporting enterprise:

a.1/ To deliver goods and hand over the value-added invoice (the original to be handed over to customers, clearly stating the names of the foreign trader and the importing enterprise and the place of goods delivery in Vietnam) to the exporting enterprise.

a.2/ Upon receiving 02 declarations (01 original and 01 copy) which bear the certification of the custom office carrying out import procedures, to fill in the on-the-spot export declaration and carry out export procedures at the customs office carrying out export procedures under regulations. A dossier to be submitted/ produced comprises:

a.2.1/ The e-customs declaration, made according to form HQ/2009-TKDTXK: to submit 02 originals;

a.2.2/ The e-customs declaration received from the importing enterprise: To submit 01 copy certified as true copy by the importing enterprise and produce the original;

a.2.3/ Other documents to be submitted/ produced at the request of the customs office:

- The goods sale and purchase contract designating the delivery of goods in Vietnam (for the exporter); the goods sale and purchase contract or processing contract designating the receipt of goods in Vietnam (for the importer), the hire or borrowing contract: to submit 01 copy;

- The value-added invoice issued by the exporting enterprise (the original to be handed over to customers): to submit 01 copy;

- Other papers as prescribed for imports and exports (except the bill of lading - B/L).

b/ Responsibilities of the importing enterprise:

b.1/ To perform tasks specified in Item b. Point 5.2 of this Article without having to fill in and submit a declaration according to form HQ/ 2009-TC;

b.2/ After completing import procedures, to hand over the original declaration which bears the certification of the customs office carrying out import procedures, together with a copy signed and appended with the "true copy" stamp to the exporting enterprise.

c/ Responsibilities of the customs office carrying out import procedures:

c.1/To perform tasks specified in Item b. Point 5.2 of this Article but only make certification of customs clearance in the e-customs declaration;

c.2/ To keep 01 printed e-customs declaration and documents submitted by the enterprise, return to the enterprise 01 printed-e declaration and documents produced by the enterprise;

c.3/ To notify the customs office carrying out export procedures of the declaration for which customs procedures have been completed via the e-custom data processing system (if the system responses).

d/ Responsibilities of the customs office carrying out export procedures:

d.1/ To receive the customs dossier set transferred from the enterprise; to conduct registration of the declaration according to regulations prescribed for each type of on-the-spot import or export; inspect tax calculation (if any); make certification of customs clearance, and sign and append an officer seal on 02 e-customs export declarations;

d.2/ To make the certification of "completion of on-the-spot export procedures according to the declaration No …… dated...." in the printed e- customs import declaration produced by the enterprise, sign and append an officer seal thereon:

d.3/ To keep 01 declaration and documents submitted by the enterprise and return to the enterprise 01 declaration and produced documents;

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

Article 72. Customs procedures for goods which have been exported but are returned

1. Cases in which goods which have been exported but are returned include:

1.1. Returned goods are temporarily imported for repair or re-processing (collectively referred to as re-processing) and then re-export;

1.2. Returned goods are re-imported for domestic consumption (not applicable to goods processed for foreign enterprises);

1.3. Returned goods are re-imported for destruction in Vietnam (not applicable to goods processed for foreign enterprises).

2. Customs clearance places:

2.1. The customs office which has carried out procedures for the export of these goods;

2.2. In case a returned goods lot consists of goods from several lots of exports, the re-import procedures shall be carried out at any of the district-level Customs Departments which have carried out procedures for the export of these goods lots;

2.3. Procedures for the re-export of re-processed goods will be carried out at the district-level Customs Department which has carried out procedures for the re-import of these goods. In case district-level Customs Departments carrying out re-import or re-export procedures are located outside the border gates (other than border-gate Customs Departments), procedures shall be carried out as for imports and exports in border-gate transfer.

3. Re-processing time limit:

Within 30 days after customs procedures for temporary import of returned goods for re­processing are completed, the customs declarant shall carry out customs procedures for re-export of all re-processed products. If having plausible reasons, the director of the district-level Customs Department carrying out temporary import procedures shall consider the extension of this time limit for no more than twice with each extension not exceeding 30 days.

Past this time limit, if goods are not yet re­exported, the customs office shall impose taxes under Points b and c. Clause 7, Article 112 of Circular No. 79/2009/TT-BTC.

4. Procedures for the import of returned goods

4.1. A customs dossier comprises:

a/ A written request for the re-import of goods, clearly stating the export declaration to which goods belong to, whether goods have been considered for tax refund or non-collection by the customs office and input value-added tax has been declared for withholding with the tax office (inscribing the number of the decision on tax refund or non-collection), the reason for re-import (for re-processing, domestic consumption or destruction; for goods imported for re-processing, the re-processing place, time and methods and wastage in the re-processing process must be stated): to submit 01 original;

b/ The import customs declaration (the temporary import declaration must provide reference information about the previous export declaration), detailed list of goods and the bill of lading: as prescribed for goods imported under sale and purchase contracts;

c/ The previous export customs declaration: to submit 01 copy;

d/ The foreign party's written notice of the return of goods: to submit 01 original.

4.2. The customs office shall carry out customs procedures as for goods imported under goods sale and purchase contracts. Re-imported goods are subject to physical inspection. The customs officer conducting the physical inspection of goods shall check imports against samples of raw materials (if exported products are those processed or produced for export and samples thereof have been taken; and raw materials remain unchanged during the process of production) and descriptions of goods in the export declaration so as to determine the conformity between goods re-imported into Vietnam and goods already exported; take samples of re-imported goods or take photos thereof (for lots of temporarily imported goods which cannot be sampled) for comparison upon re-export.

5. Procedures for re-export of re-processed goods

5.1. A customs dossier comprises:

a/ The export declaration (the re-export declaration must show reference information about the previous temporary import declaration): to submit 02 originals;

b/ The import declaration (for re-processing): to submit 01 copy.

5.2. The customs office shall perform procedures as for goods exported under goods sale/purchase contracts. Re-exported goods are subject to physical inspection. The customs officer conducting the physical inspection of goods shall check the actual conditions of re-exported goods against samples of re-imported goods (or photos taken when carrying out re-import procedures).

5.3. If failing to re-export re-processed goods, the enterprise shall send a written explanation to the district-level Customs Department carrying out re-import procedures for consideration and handling in any of the following forms:

a/ For re-processed products which are processed goods :

a.1/ Carrying out customs procedures by mode of on-the-spot import and export for domestic consumption, if the conditions for on-the-spot import and export of processed products prescribed in Decree No. 12/2006/ND-CP are fully met; or,

a.2/ Destroying goods, if the processing-ordering party requests for destruction of goods in Vietnam and the destruction is approved by the provincial-level Natural Resources and Environment Department.

b/ Re-processed products other than processed goods may be used for domestic consumption like goods re-imported for domestic-consumption.

6. In case re-imported goods are exported products produced from imported raw materials and supplies or goods eligible for refund of import duty, the customs office carrying out re­import procedures shall notify the customs office carrying out procedures for import duty refund (if these two customs offices are two different district-level Customs Departments) of cases specified at Points 1.2 and 1.3, Clause 1 and Point 5.3. Clause 5 of this Article and cases of failure to conduct re-export within the time limit specified in Clause 3 of this Article for taxation under Points b and c. Clause 7, Article 112 of Circular No. 79/2009/TT-BTC

Article 73. Customs procedures for goods which have been imported but must be re­exported

1. Forms of re-exporting imported goods:

1.1. Exporting goods back to the goods owner who has sold this goods lot;

1.2. Exporting goods to another foreign partner.

2. Place of performance of re-export procedures: The district-level Customs Department which has carried out import procedures for the goods lot.

3. A customs dossier comprises:

3.1. The enterprise's written explanation about the re-export of the goods:

3.2. The export declaration (the export declaration must show reference information about the previous import declaration): to submit 02 originals;

3.3. The previous import declaration: to submit 01 copy and produce the original.

3.4. The foreign goods owner's document agreeing to receive back goods (if goods are exported back to the goods owner): to submit 01 original; the contract on the sale of goods to a third country or re-export to a non-tariff zone (if goods are re-exported to a third country or a non-tariff zone): to submit 01 copy.

4. Customs procedures shall be carried out as for goods lots exported under goods sale and purchase contracts. Re-exported goods are subject to physical inspection. The customs officer conducting the inspection of goods shall check the actual conditions of re-exported goods against samples taken upon import (if samples have been taken) and descriptions of goods in the import declaration; clearly inscribing the quantity, quality and kinds of exported goods and determine the consistency of goods actually exported with goods previously imported.

Chapter VIII

ORGANIZATION OF IMPLEMENTATION

Article 74. Implementation responsibilities

1. The General Director of Customs shall, based on the guidance in this Circular, promulgate the process of e-customs procedures and provide guidance to customs units for unified implementation.

2. Customs offices, customs declarants and taxpayers should report any problems arising in the course of implementation of this Circular to the Ministry of Finance (the General Department of Customs) for consideration and settlement on a case-by-case basis.

Article 75. Effect

This Circular takes effect on December 1. 2009, and replaces the Finance Ministry's Decision No. 52/2007/QD-BTC of June 20, 2007.-

 

FOR THE MINISTER OF FINANCE DEPUTY MINISTER Do Hoang Anh Tuan