CIRCULAR

ON CUSTOMS PROCEDURES, TAX ADMINISTRATION, FEES AND CHARGES WITH RESPECT TO EXPORT AND IMPORT GOODS ACCORDING TO DECREE NO. 14/2018/ND-CP DATED 23 JANUARY, 2018 OF GOVERNMENT ON ELABORATING BORDER TRADE ACTIVITIES

Pursuant to Law on Customs dated June 23, 2014;

Pursuant to Law on Tax Administration dated November 29, 2006; Law on amendments to a number of Articles of Law on Tax Administration dated November 20, 2012; Law on amendments to a number of Articles of Law on Tax dated November 26, 2014; Law on amendments to a number of Articles of Law on Value-Added Tax, Law on Excise Tax and Law on Tax Administration dated April 6, 2016;

Pursuant to Law on Export and Import Duties dated April 6, 2016;

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

Pursuant to Decree No. 08/2015/ND-CP dated January 21, 2015 of Government on elaborating to Law on Customs and Customs Procedures, Customs Examination, Supervision and Control; Pursuant to Decree No. 59/2018/ND-CP dated April 20, 2010 on amendments to a number of Articles of Decree No. 08/2015/ND-CP dated January 21, 2015 of Government on elaborating to Law on Customs and Customs Procedures, Customs Examination, Supervision and Control;

Pursuant to Decree No. 134/2016/ND-CP dated September 1, 2016 of Government on elaborating to a number of Articles and guiding implementation of Law on Export and Import Duties;

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Pursuant to Decree 112/2014/ND-CP dated November 21, 2014 of Government on management of border checkpoint on land;

Pursuant of Decree No. 01/2015/ND-CP dated January 2, 2015 of Government on elaborating customs controlled area; cooperation responsibilities in preventing and countering smuggle and illegally transport of goods across borders; Pursuant of Decree No.12/2018/ND-CP dated January 23, 2018 of Government on amendments to a number of Articles of Decree No. 01/2015/ND-CP dated January 2, 2015 of Government on elaborating customs controlled area; cooperation responsibilities in preventing and countering smuggle and illegally transport of goods across borders;

Pursuant to Decree 14/2018/ND-CP dated January 23, 2018 of Government on elaborating border trade activities;

Pursuant to Decree No. 87/2017/ND-CP on 26th of July 2017 of Government on functions, tasks, powers, and organizational structure of Ministry of Finance;

At the request of General Director of General Department of Customs,

Minister of Finance promulgates Circular on customs procedures, tax administration, fees and charges with respect to export and import goods according to Decree No. 14/2018/ND-CP dated 23 January, 2018 of Government on elaborating border trade activities.

Chapter I

GENERAL PROVISIONS

Article 1. Scope

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Article 2. Regulated entities

1. Traders, organizations and individuals participating in border trade activities;

2. Customs authorities, customs officials and agencies, organizations managing and supervising border trade activities;

3. Other agencies, organizations and individuals involved in border trade activities according to this Circular.

Chapter II

CUSTOMS PROCEDURES, TAX ADMINISTRATION, FEES AND CHARGES APPLIED TO IMPORT AND EXPORT GOODS OF TRADERS

Article 3. Customs procedures, tax administration, fees and charges applied to import and export goods of traders

1. Customs procedures to be adopted with respect to import and export goods of traders travelling across borders shall comply with Decree No. 08/2015/ND-CP dated January 21, 2015 receiving amendments thereto in Decree No. 59/2018/ND-CP dated April 20, 2018 of Government and Circular No. 38/2015/TT-BTC dated March 25, 2015 receiving amendments thereto in Circular No. 39/2018/TT-BTC dated April 20, 2018 of Minister of Finance; traders must fully satisfy obligations relating duties, fees and charges as per the law.

2. Import and export goods of traders travelling across border checkpoints must comply with regulations and law on commodity types, quarantine inspection, and inspection of food safety and quality.

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3. Traders specified in Article 5 of Decree No. 14/2018/ND-CP dated January 23, 2018 of Government while trading and exchanging goods across borders must be issed with TIN before adopting customs procedures.

Article 4. Customs procedures, tax administration, fees and charges applied to import goods of border inhabitants purchased by traders in bulk

1. Traders purchasing in bulk goods of boder inhabitants in border areas as specified in Clauses 1 and 2 Article 14 of Decree No. 14/2018/ND-CP dated January 23, 2018 of Government must produce schedules for bulk purchasing of goods using form BK-MGHCDBG 2019/HQVN under Annex I attached to this Circular.

2. Customs procedures applied to import goods of border inhabitants purchased by traders in bulk shall be the same to those applied to import goods of traders travelling across border checkpoints specified in Article 3 of this Circular; the traders shall submit master declarations of import goods of border inhabitants using form HQ2019/TKNKBG under Annex II attached to this Circular and master manifests of bulk purchasing of goods using form specified in Clause 1 of this Article as substitutes for commercial contracts and agreements; the traders must fully satisfy obligations relating duties, fees and charges applied to import goods as per the law.

Deadline for submission of customs documents is 30 days from the date of bulk purchasing of goods.

3. Customs procedures location: A trader shall conduct customs declaration at a customs department of a border checkpoint that is the nearest from a border market where he/she purchases goods in bulk.

4. Traders purchasing import goods of border inhabitants in bulk shall sell or transport purchased goods out of border markets or areas for goods consolidation and inspection specified in Clause 5 of this Article into the country only after customs procedures, taxes and other charges (if any) are fully satisfied as per the law. The traders may use customs declaration forms that have been granted customs clearance as documents for transporting goods into the country.

5. After finishing customs clearance, goods of border inhabitants purchased in bulk by traders must be consolidated to enable goods inspection in following locations: border checkpoint areas, concentrated inspection areas or areas for goods consolidation and inspection in border areas; other locations recognized or established by customs authorities in border areas.

Article 5. Customs inspection and supervision with respect to import and export goods of traders and import goods of border inhabitants purchased in bulk by traders

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Chapter III

CUSTOMS PROCEDURES, TAX ADMINISTRATION, FEES AND CHARGES APPLIED TO IMPORT AND EXPORT GOODS OF BORDER INHABITANTS

Article 6. Customs procedures, tax administration, fees and charges applied to import and export goods of border inhabitants

1. Trading and exchanging goods across border checkpoints and border gates of border inhabitants are import and export activities as per the law.

Import and export goods of border inhabitants shall be declared on export declaration form for border inhabitants and import declaration form for border inhabitants using forms HQ2019/TKXKBG and HQ2019/TKNKBG under Annex II attached to this Circular. Import and export declaration forms for border inhabitants shall be printed following templates and distributed to border inhabitants by customs authorities.

2. Customs departments of border checkpoints shall verify the declaration forms of border inhabitants as follows: Officials receiving the declaration shall sign and stamp on the upper right corner of the declarations; customs officials calculating and collecting tax shall sign and stamp on the lower part of the declarations where the tax calculation and collection of customs authority section is located.

3. Border inhabitants shall import goods following list of goods specified under Annext I attached to Circular No. 02/2018/TT-BCT dated February 27, 2018 of Minister of Industry and Trade. In case goods value exceeds duty-free allowance specified in Article 13 of Decree No. 14/2018/ND-CP dated January 23, 2018 of Government, customs departments of border checkpoints shall calculate tax based on the import declaration forms of border inhabitants then collect tax and other charges (if any) as per the law immediately at the border checkpoints or border gates.

4. Export goods of border inhabitants must fully comply with regulations and law on duties and commodity types; customs departments of border checkpoints shall calculate tax then collect tax and other charges (if any) as per the law immediately at the border checkpoints or border gates.

5. With respect to border checkpoints and border gates where locations for collection of tax and other charges for submission to state budget are not established by the State Treasury or commercial banks, customs authorities shall collect tax and other charges (if any) as per the law in cash and record in invoices, transfer of tax collected from the payers to state budgets shall comply with Article 3, Clause 3 Article 21 of Circular No. 184/2015/TT-BTC dated November 17, 2015 of Minister of Finance.

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7. A border inhabitant who owns import goods whose value does not exceed tax exemption quotas without using for manufacture or consumption himself/herself while reselling or transferring must include the import declaration form for border inhabitants to enable traders purchasing the goods in bulk to declare according to Article 4 of this Circular.

Article 7. Customs inspection and supervision with respect to import and export goods of border inhabitants

1. Import goods of border inhabitants exceeding the tax exemption quotas specified in Article 13 of Decree N. 14/2018/ND-CP dated January 23, 2018 of Government must be physically inspected during customs procedures.

2. With respect to export goods of border inhabitants, the physical inspection shall be decided by managers of customs departments of border checkpoints on the basis of information relating to the goods as specified in Articles 29 and 30 of Decree No. 08/2015/ND-CP dated January 21, 2015 receiving amendments in Clause 14 Article 1 of Decree No. 59/2018/ND-CP dated April 20, 2018 of Government, Circular No. 38/2015/TT-BTC dated March 25, 2015 receiving amendments in Circular No. 39/2018/TT-BTC dated April 20, 2018 of Minister of Finance and documents relating to customs inspection.

3. In case of physical inspection, customs officials of border checkpoints performing physical inspection shall sign and stamp on the lower part of the declaration form where the physical inspection of customs authority section is located.

4. With respect to customs supervision of import and export goods of border inhabitants: Customs officials shall directly supervise at border checkpoints and border gates and verify the supervision by signing and stamping on the supervision section below the declaration once the goods are granted customs clearance and eligible to be transported out of areas for customs supervision.

Chapter IV

RESPONSIBLITIES FOR STATE MANAGEMENT OF CUSTOMS AUTHORITIES IN BORDER TRADE ACTIVITIES

Article 8. State management of customs authorities in border trade activities

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Article 9. Responsiblities of customs authorities in management of goods trade and exchange of border inhabitants

1. General Department of Customs is responsible for developing software for management, print and receipt of import and export declaration forms of border inhabitants and software for management and calculation of tax with respect to import and export declaration forms of border inhabitants satisfying conditions for management of duty-free import goods specified in Article 13 of Decree No. 14/2018/ND-CP dated January 23, 2018 of Government; the software for management and calculation of tax shall be connected to the software for management of import and export declaration forms of border inhabitants to enable tax calculation and collection.

2. In case software for management of import and export declaration forms of border inhabitants is not available, customs departments of border checkpoints shall register in record for monitor and receipt of import and export declaration forms of border inhabitants using form No. 2019/STDHCDBG 2019/HQVN under Annex III attached to this Circular.

3. General Department of Customs shall develop a data system for price based on lists of traded and exchanged goods of border inhabitants to enable reference and consultation when necessary.

Article 10. Responsiblities in management of transports of individuals and organizations travelling across border areas

1. Customs departments of border checkpoints shall perform customs management, inspection and supervision with respect to transports of individuals and organizations travelling across border areas as specified in Article 81 of Decree No. 08/2015/ND-CP dated January 21, 2015 receiving amendments in Clause 49 Article 1 Decree No. 59/2018/ND-CP dated April 20, 2018 of Government and Circular No. 50/2018/TT-BTC dated may 23, 2018 of Minister of Finance.

2. General Department of Customs shall develop software for management of trasports of individuals and organizations travelling across border areas. In case software for management of transports, customs departments of border checkpoints shall register in records for management of transports (using form QLPT-BG 2019/HQVN under Annex IV attached to this Circular) to manage transports of individuals and organizations travelling across border areas and to ensure compliance with regulations and law.

Chapter V

IMPLEMENTATION

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1. Director General of General Department of Customs shall direct customs entities based on this Circular to jointly implement and ensure favorable conditions for border commercial activities and excellent customs management operation.

2. Competent customs authorities shall adopt customs procedures; conduct customs inspection and supervision; adopt import and export duties and impose tax administration on border trade activities according to this Circular. Difficulties that arise should be reported in details to Ministry of Finance (via General Department of Customs) for consideration and solution.

3. During the implementation of this Circular, if relevant legislative documents mentioned in this Circular are revised or replaced, the new and revised, replaced documents shall prevail.

Article 12. Entry into force

1. This Circular comes into force from January 01, 2020.

2. Annuls Circular No. 217/2015/TT-BTC dated December 31, 2015 of Minister of Finance on customs procedures and tax administration on border trade of traders and border inhabitants according to Decision No. 52/2015/QD-TTg dated October 20, 2015 of Prime Minister.

PP. MINISTER
DEPUTY MINISTER




Vu Thi Mai

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