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THE
MINISTRY OF FINANCE
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SOCIALIST
REPUBLIC OF VIET NAM
Independence - Freedom - Happiness
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No.
116/2008/TT-BTC
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Hanoi,
December 4, 2008
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CIRCULAR
GUIDING CUSTOMS PROCEDURES FOR GOODS PROCESSED FOR FOREIGN
TRADERS
Pursuant to Customs Law No.
29/2001/QH10 of June 29, 2001, and Law No. 42/2005/QH11 of June 14, 2005,
Amending and Supplementing a Number of Articles of the Customs Law;
Pursuant to Import Tax and Export Tax Law No 45/2005/QH11 of June 14, 2005, and
Tax Administration Law No. 78/2006/QH11 of November 29, 2006;
Pursuant to the Governments Decree No. 149/2005/ND-CP of December 8, 2005,
detailing the implementation of the Import Tax and Export Tax Law;
Pursuant to the Governments Decree No. 85/2007/ND-CP of May 25, 2007, detailing
the implementation of the Tax Administration Law;
Pursuant to the Government s Decree No. 154/2005/ND-CP of December 15, 2005,
detailing the implementation of a number of articles of the Customs Law on
customs procedures and customs inspection and supervision;
Pursuant to the Governments Decree No. 12/2006/ND-CP of January 23, 2006,
detailing the implementation of the Commercial Laws provisions on international
purchase and sale of goods and agency for purchase, sale, processing and transit
of goods with foreign partners;
Pursuant to the Governments Decree No. 77/2003/ND-CP of July 1, 2003, defining
the functions, tasks, powers and organizational stricture of the Ministry of
Finance;
The Ministry of Finance guides customs procedures for goods processed for
foreign traders as follows:
Section I.
GENERAL PROVISIONS
I.
INTERPRETATION OF TERMS
1. Processing raw materials include
principal raw materials and auxiliary materials for the creation of a processed
product.
2. Principal materials are
materials constituting the principal component of a product.
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4. Processing supplies are products
and semi-finished products used in the process of producing a processed product
but not directly constituting the product. Processing supplies include also
packages or materials for making packages containing processed product.
5. Processing scraps are discarded
or trimmed parts of raw material in the process of processing a raw material or
semi-finished product; leased or borrowed machines and equipment used in the
processing which are damaged and put out of production or processing.
6. Discarded processed products are
products failing to meet technical standards (specifications, size, quality,
utility, etc.) agreed upon in the processing contract/its annex and discarded
during processing.
7. Processing wastes are raw
materials and auxiliary materials discarded during processing and having no
utility.
8. Processed product norm agreed in
a contract includes:
8.1. Raw material use norm, which
is the amount of raw material constituting a processed product unit.
8.3. Consumed supplies norm, which is
the amount of supplies consumed in order to produce a processed product unit.
8.3. Raw material and supplies
wastage percentage, which is the amount of raw material and supplies wastage
(including also wastage in the creation of processing scraps, discarded
processing products and processing wastes) calculated in a percentage (%) of
raw materials constituting a product (for raw material wastage percentage) or
of the amount of supplies consumed during processing (for supplies wastage
percentage).
9. Processing machines, equipment
and instruments are those included in a technological line to turn out
processed products, which are leased or lent by the principal to the processor
for the performance of the processing contract.
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1. Form of processing contract
A processing contract must be made
in writing or other forms of equivalent validity, including telegraph, telex,
fax, data message and other forms prescribed by law.
2. Contents of processing
contract
A processing contract must have all
details as specified in Article 30 of the Governments Decree No. 12/2006/ND-CP
of January 23, 2006.
3. Processing contract annexes
Annexes of a processing contract
are an integral part of the processing contract.
3.1. Any modifications, supplements
or adjustments to the terms of a processing contract must be expressed in a
contract annex, which is to be registered with the customs office before or
when the enterprise carries out export or import procedures for the first goods
lot subject to that contract annex. Particularly for the value of imported raw
materials and supplies for processing, the value indicated on the commercial
invoice of the import dossier will be accepted and an adjustment annex is not
required.
3.2. A processing contract which is
valid for more than one year may be split into different annexes for
performance. The period of performance of each annex must not exceed one year.
In special cases in which the time of processing a product lasts for more than
one year, the processing contract/its annex may be performed for each product
(e.g., seagoing ship repair).
III. CUSTOMS
CLEARANCE PLACES
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If there is no customs office in
the locality where its production establishment is located, the enterprise may
select a customs sub-department most convenient for customs clearance
registration.
2. In case raw materials imported
for processing are to be physically inspected at the border gate of importation
at the request of a specialized state management agency but their processing
contract and import declaration have been registered at an outside-border gate
customs sub-department, the customs sub-department of the border gate of
importation shall conduct physical inspection at the request of the
outside-border gate customs sub-department.
IV.
RESPONSIBILITIES OF ENTERPRISES AND CUSTOMS OFFICES
1. Enterprises:
1.1. To accurately and fully comply
with regulations on processing contracts. Upon completion or expiration of a
processing contract, to liquidate the processing contract and carry out
liquidation procedures at the customs office under Article 35 of the
Governments Decree No. 12/2006/ND-CP of January 23, 2006.
1.2. To use processing management
software for their computer networks connected to the customs office.
1.3. To produce documents on
payment of processing charges by the foreign partner to the customs office for
liquidation and post-customs clearance inspection upon request.
1.4. When disposing of redundant
raw materials and supplies, scraps, discarded products and leased or borrowed
machines and equipment guided at Point 6, Clause XII, Section II of this
Circular, to proactively declare them to and carry out procedures at the
customs office according to regulations.
2. Customs offices:
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Section II.
CUSTOMS PROCEDURES FOR
GOODS RECEIVED FOR PROCESSING IN VIETNAM FOR FOREIGN TRADERS
I. PROCEDURES
FOR PROCESSING CONTRACT REGISTRATION
1. Responsibilities of
enterprises:
At least 1 day before carrying out
import procedures for the first goods lot under the processing contract, the
enterprise shall register the processing contract with the customs office. A
registration dossier comprises:
1.1. The processing contract and its
annex (if any): To submit 2 originals (1 to be kept by the customs office and 1
to be returned to the enterprise after the contract is registered) and 1 copy
of the Vietnamese version (if in a foreign language other than English).
1.2. The business registration
certificate or investment license or investment certificate, for
foreign-invested enterprises (if carrying out registration procedures for the
first time): To submit 1 copy.
1.3. The import and export business
code or tax identification number registration certificate (if carrying out
registration procedures for the first time): To submit 1 copy.
1.4. The permit of the Ministry of
Industry and Trade, for processed goods on the list of imports and exports
subject to permits: To submit 1 copy and produce the original.
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1.6. A document explaining and
evidencing its production establishment(s), for enterprises undertaking
processing for the first time, specifying the address of the enterprises head
office, the address of the production establishment, management and production
capacities, products, equipment line and design capacity (even in the case of
processing hire); the account number and the name of the bank with which the
enterprise deposits its money: To submit 1 original.
For the document explaining and
evidencing its production establishment(s), the enterprise only needs to give explanation
once and shall make additional explanation only when there are any changes in
the explained contents.
From the time of registration to
the time of complete liquidation of a processing contract, if there is any
change in the legal person status, working office and address of its production
establishment, the enterprise shall promptly notify in writing such change to
the customs sub-department managing the processing contract.
1.7. The processing hire contract
(for the case of hiring the processing of all products): To submit 1 copy and
produce the original.
1.8. The document on registration
of raw materials and supplies for the processing contract or annex, made
according to a set form (applicable only to customs procedures carried out at a
customs sub-department applying information technology to managing and
liquidating processing contracts): To submit 2 originals.
2. Tasks of customs offices:
2.1. To receive and examine
dossiers.
2.2. To make registration for
processing contracts.
2.3. To return to enterprises 1
original of the processing contract and original documents already produced.
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a/ Inspection shall be conducted in
the following cases:
When an enterprise registers its processing
contract or during production, if the customs office has any doubt about the
production establishments address, management capacity, production capacity and
matters related to the assurance of the performance of the processing contract,
it shall inspect the enterprises production establishment.
b/ Time of inspection:
The customs office may conduct
inspection when necessary at the following points of time:
b1. After the enterprise submits a
complete dossier of registration of the processing contract to the customs
office; or
b2. In the course of production of
registered products by the enterprise.
c/ Leaders of the customs
sub-department managing the processing contract are competent to decide on the
inspection of an enterprises production establishment.
d/ Handling of results of
inspection of a production establishment which show that conditions for the
processing contract performance are not satisfied:
d1. In case a processing contract
is not yet registered: The customs office refuses to make registration for the
processing contract.
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d2.1. If the production
establishment fails to satisfy all conditions for production according to the
prescribed production process, the customs office shall request the enterprise
to make a written commitment to redress the problem within a certain period and
suspend the clearance of import procedures for subsequent raw material and
supplies lots under the processing contract until the enterprise redresses the
problem.
d2.2. If there is no establishment
production, the customs office shall stop clearing import procedures for raw
materials and supplies for the performance of the processing contract and
request explanation from the enterprise. Depending on the seriousness of the
violation, it shall forward the dossier of the violation to an anti-smuggling
or post-customs clearance inspection customs unit for verification,
investigation and handling in accordance with law.
II. PROCEDURES
FOR REGISTRATION, ADJUSTMENT AND EXAMINATION OF NORMS:
1. Registration of use norms,
consumption norms and raw material and supplies wastage percentages (below
collectively referred to as norms)
1.1. On the basis of norms agreed
upon by the parties in their processing contract under Article 31 of the
Governments Decree No. 12/2006/ND-CP of January 23, 2006, the enterprise shall
register such norms with the customs office according to a set form. These
norms must accord with those actually effected by the enterprise. When the
processing contract does not specify a raw material and supplies norm, this
norm is regarded as 0%.
1.2. In the course of performing a
processing contract, if its actual norms are changed because of changed raw
material characteristics, processing conditions or requirements of each export
order, the enterprise may adjust the norms applicable to the goods item
concerned and already registered with the customs office to suit new actual
norms, and shall give written explanations for each adjusted norm. Adjusted
norms are not applicable to products already exported.
When adjusting a norm of a goods
item, the enterprise is not required to change the code of the goods item
indicated in the processing contract. The enterprise and the customs office
earning out procedures for the processing contract shall reach agreement on the
addition of a secondary code for the goods item concerned in the table of
adjusted norms and the export declaration for such goods item.
1.3. The units of calculation used
in the table of registered norms must comply with Vietnamese laws and accord
with those used in the registered processing contract.
2. Time of registration and
adjustment of norms of goods items:
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Registration of norms should be
made at the same time with the registration of the processing contract or
registration of the customs declaration for the first imported raw material and
supplies lot under the processing contract.
2.2. Time of adjustment of norms:
Before carrying out customs procedures for the exported products for which
norms need to be adjusted.
3. Norms already registered
or adjusted and registered with the customs office shall be used for processing
contract liquidation.
4. Examination of norms:
4.1. Norms must be examined in the
following cases:
Customs offices have doubts about
registered norms of enterprises that perform processing contracts for foreign
traders or about those that have been handled for norm-related frauds in the
course of processing.
4.2. Methods of norm examination:
a/ Examination at the customs
office;
b/ Examination at the enterprises
production establishment;
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4.3. Time of norm examination:
a/ After the enterprise submits a norm
registration dossier to the customs office, or
b/ During the production of
products subject to the registered norms; or
c/ After exportation of the first
lot of the product subject to the registered norms, or
d/ When the processing contract is
liquidated, or
e/ When the post-customs clearance
inspection is conducted (if there are grounds for inspection).
4.4. Responsibilities of
enterprises in the course of norm examination:
a/ To give detailed explanations
about the grounds and methods of elaborating norms of goods items already
registered with the customs office, enclosed with product samples and their
technical design documents (e.g., cutting diagram for garments);
b/ To produce accounting books and
documents to the customs office upon request and create favorable conditions
for the customs office to conduct norm examination in a quick and accurate
manner;
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4.5. Tasks of customs officers
conducting norm examination:
a/ To conduct examination quickly
and strictly according to the prescribed process, without harassing or
obstructing the enterprises production;
b/ To make a written record of the
results of examination upon completion of examination, which must fully and
truthfully reflect the facts of examination, and sign, together with a
representative of the examined enterprise, the record.
4.6. Competence to decide on norm
examination: Leaders of customs sub-departments managing processing contracts
and customs sub-departments conducting post-customs clearance inspection.
III.
PROCEDURES FOR IMPORTATION OF PROCESSING RAW MATERIALS AND SUPPLIES
1. For processing raw materials and
supplies provided from abroad by the principal:
1.1. The customs procedures for
importation of these raw materials and supplies are the same as those for
commercial imports guided in the Finance Ministry’s Circular guiding customs
procedures; customs inspection and supervision; import and export duties and
tax administration with regard to imports and exports (below referred to as the
Circular guiding customs procedures), without checking duty calculations.
1.2. For raw materials and supplies
purchased by the principal and sent by a third party designated by the
principal to the processor, the customs dossier of the imported lot must also
contain a document of the principal notifying the processor of the receipt of
such goods from the third party.
1.3. For finished products supplied
by the principal for attachment to or packaging together with processed products
into complete goods for export abroad, the customs procedures for these
finished products are the same as those applicable to processing raw materials,
provided the following conditions are met:
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b/ The table of use norms of raw
materials for the processed product contains the norm of this finished product.
1.4. Sampling and sample storage:
The taking and storage of samples
of raw materials and processed products comply with the guidance in the
Circular guiding customs procedures and specific guidance of the General
Department of Customs.
2. For processing raw materials and
supplies supplied by the principal in the form of on-spot import or export,
applicable customs procedures comply with Article 15 of the Governments Decree
No. 154/2005/ND-CP of December 15, 2005, and Clause VIII of Section II below.
IV. CUSTOMS
PROCEDURES FOR RAW MATERIALS AND SUPPLIES SUPPLIED BY PROCESSORS THEMSELVES FOR
PROCESSING CONTRACTS
1. For raw materials and supplies
produced or purchased in the Vietnamese market by the processing enterprise:
1.1. Their names, norms, wastage
percentages, quantities, unit prices and payment method and schedule must be
agreed upon in the processing contractor its annex.
1.2. No customs procedures need to
be carried out (except for export processing enterprises).
1.3. Before signing the processing
contract, permission of a competent agency must be obtained, for raw materials
and supplies supplied by the processing enterprise itself which are on the list
of exports subject to permit. Enterprises may not supply raw materials and
supplies on the list of goods banned or suspended from export.
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2. For raw materials and supplies
directly purchased by the enterprise from abroad for processing contracts:
2.1. Their names, norms, wastage
percentages, quantities, unit prices and payment method and schedule must be
agreed upon in the processing contract or its annex.
2.2. Before signing the processing
contract, permission of a competent agency must be obtained, for raw materials
and supplies supplied by the processing enterprise itself which are on the list
of exports subject to permit. Enterprises may not supply raw materials and
supplies on the list of goods banned or suspended from export.
2.3. The import procedures and
import duty policy and refund procedures are the same as those applicable to
raw materials imported for export production.
2.4. When carrying out export
procedures for processed products, the enterprise shall declare in a set form
the names and quantities of raw materials used for the production of the
processed goods lot for export and the number and date of the import
declaration of raw materials for export production.
V. CUSTOMS
PROCEDURES FOR IMPORTED MACHINES AND EQUIPMENT FOR THE PERFORMANCE OF
PROCESSING CONTRACTS
1. The import of leased or borrowed
machines and equipment for the performance of a processing contract must comply
with regulations and policies on import and export management.
2. For foreign-invested
enterprises, the import of leased or borrowed machines and equipment for the
performance of a processing contract must comply with the guidance in Circular
No. 04/2007/TT-BTM of April 4, 2007, of the Ministry of Trade (now the Ministry
of Industry and Trade).
3. Customs procedures:
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3.2. For machines and equipment
leased or lent by the principal but not directly used for processing, customs
procedures applicable to commercial imports and exports prescribed in the
Circular guiding customs procedures shall be carried out.
VI. CUSTOMS
PROCEDURES FOR GOODS IMPORTED OR EXPORTED FOR USE AS PROCESSING SAMPLES (SAMPLES
NOT FOR SALE)
1. For goods imported or exported
for use as processing samples, customs procedures shall be carried out as for
non-commercial imports and exports as guided in the Circular guiding customs
procedures.
2. Goods used as processing samples
must meet the following conditions:
2.1. They may only be used as
processing samples and are of no commercial value (e.g., perforated goods or
goods bearing the sample product mark, single shoes, one-sleeved shirts);
2.2. The goods lot document set
evidences that they are sample goods;
2.3. For each sample goods
category, only five product units may be imported or exported.
VII. PROCEDURES
FOR EXPORTATION OF PROCESSED PRODUCTS ABROAD
1. The customs procedures comply
with regulations on customs procedures for commercial exports provided in the
Circular guiding customs procedures, without checking duty calculations. In
addition, the following must be also carried out:
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1.2. If the processed products are
exported to a third partner whose name and address, however, are not yet
specified in the processing contract, when registering the export declaration,
the processing enterprise shall submit to the customs office a copy of the
principals document designating the delivery of goods to a third partner and
produce the original document for comparison.
1.3. For a goods lot which is
subject to physical inspection before export, the enterprise shall produce,
upon request, to the customs office the stored raw material samples (in case
samples were taken) and the table of norms already registered.
If the enterprise has lost the
samples or the custom office doubts that to be-exported products are produced
from raw materials other than imported ones, the inspecting customs officers
shall take samples of such products for assessment (or photograph the products
for examination if sampling is impossible).
1.4. Immediately after the
processing contract expires, if there remain processed products not yet
exported, the enterprise shall make a commitment to the customs sub-department
managing the processing contract that it will export all of these products
within 30 days from the date of expiration of the processing contract.
The customs office shall register
export declarations only for goods items with registered norms.
2. The customs procedures for
processed goods lots transported from a border gate to another under customs
supervision for export are the same as those applicable to goods transported
from a border gate to another under customs supervision provided in Articles 16
and 18 of the Governments Decree No. 154/2005/ND-CP of December 15, 2005, and
the Circular guiding customs procedures.
VIII. CUSTOMS
PROCEDURES FOR ON-SPOT IMPORT AND EXPORT OF PROCESSED PRODUCTS
The conditions for on-spot export
and import comply with the Governments Decree No. 127/2006/ND-CP of January 23,
2006. The specific customs procedures are as follows:
1. For processed products
imported on spot for use as raw materials:
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1.1.1. For exporting enterprises:
a/ To fill in all sections reserved
for exporting-enterprises on 4 customs declarations, sign and seal them;
b/ To hand 4 customs declarations,
goods and added-value invoices (customer original showing the name of the
foreign trader, name of the exporting enterprise and place of delivery in
Vietnam) to the importing enterprise.
1.1.2. For importing enterprises:
a/ After receiving 4 customs
declarations, to fill in all sections reserved for importing enterprises on
these declarations;
b/ To receive goods from the
exporting enterprise at the place of delivery and preserve them until the
customs sub-department carrying out on-spot import procedures decides on the
form and level of inspection.
For goods exempt from physical
inspection, to promptly put them into production; for those subject to physical
inspection, to put them into production only after inspection;
c/ To submit the customs dossier
together with samples of goods imported on spot (for goods imported on spot for
use as raw materials for export processing or production, to the customs
sub-department at which the enterprise carries out import procedures for
carrying out on-spot import procedures according to regulations applicable to
each form of import;
d/ After completing on-spot import
procedures, to keep 1 declaration and hand 2 declarations to the exporting
enterprise.
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a/ To receive and register customs
declarations, decide on the form and level of inspection according to relevant
regulations, check duty calculations (for dutiable goods) according to current
regulations applicable to imports. To seal up goods samples (if any) and hand
them over to the enterprise for preservation and presentation to the customs
office upon request;
b/ To certify customs clearance,
sign and seal 04 customs declarations;
c/ To keep 1 declaration and
documents submitted by the enterprise, return to the importing enterprise 3
declarations and documents already produced by the enterprise;
d/ To issue a written notice to the
tax agency directly managing the importing enterprise for information or
monitoring, either in writing or via the computer network, if available.
1.2. On-spot export procedures:
1.2.1. After receiving 2 on-spot
import/export declarations containing the certification of the customs office
carrying out customs procedures, the exporting enterprise shall submit the
customs dossier to the customs sub-department at which it carries out export
procedures for carrying out on-spot export procedures.
1.2.2. The customs office carrying
out on-spot export procedures:
a/ To receive the on-spot export
customs dossier;
b/ To register the customs
declaration according to the prescribed steps suitable to each form of import
or export; to check duty calculations (if any). To certify the customs
clearance, and sign and seal the customs declaration;
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2. For completely processed
products imported on spot for local sale:
2.1. The customs procedures shall
be carried out at the customs sub-department managing the processing contract
with products for on-spot export. Specifically:
a/ The processing enterprise shall
carry out on-spot export procedures as for export of processed products abroad;
b/ The enterprise importing on spot
processed products shall carry out on-spot import procedures as for commercial
goods and observe the policies on import duty and import of goods in full
accordance with law. Its customs dossier is not required to include a bill of
lading;
c/ The customs sub-department
shall:
- Register on-spot export
declarations as for export of processed products abroad (this declaration is
valid for liquidation);
- Register on-spot import declarations
as for commercial imports from abroad;
- Conduct physical inspection of
goods only once during carrying out on-spot import procedures, in case physical
inspection is necessary.
2.2. Completely processed goods
imported on spot for local sale must comply with the Governments Decree No.
89/20067ND-CP of August 30, 2006, on goods labels.
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3. For processed products used
for paying processing charges:
The customs procedures shall be
carried out as for on-spot import, with the sale and purchase contract replaced
by the written agreement between the principal and the processor on the payment
of processing charges in the form of processed products.
The enterprise shall fully comply
with the policies on import and export management and taxation applicable to
goods imported from abroad and the provisions of the Governments Decree No.
89/2006/ND-CP of August 30, 2006, on goods labels. These processed products are
allowed to be used for liquidating the processing contract.
4. On-spot import/export
declarations are valid for liquidation when:
4.1. For exporting enterprises: The
customs declaration has been fully filled in and bears the certification,
signatures and seals of the four parties: exporting enterprise, importing
enterprise, customs office carrying out export procedures and customs office
carrying import procedures.
4.2. For importing enterprises: The
customs declaration has been fully filled in and bears the certification,
signatures and seals of the three parties: exporting enterprise, importing
enterprise and customs office carrying import procedures.
4.3. If the exporting and importing
enterprises carry out procedures at the same customs sub-department, this
customs-sub-department shall sign and give certification in both the sections
reserved for customs office carrying out export procedures and customs office
carrying import procedures.
IX. CUSTOMS
PROCEDURES FOR PROCESSING HIRE:
In case the Vietnam-based processor
signs a processing contract with a foreign trader but hires another trader to
undertake the processing (processing hire) under Point b, Clause 2, Article 33
of the Governments Decree No. 12/2006/ND-CP of January 23, 2006, the enterprise
signing a processing contract with a foreign trader shall carry out the
procedures for export, import and liquidation of the processing contract with
the customs office and take responsibility for the performance of this
processing contract. The enterprise that hires another trader shall notify in
writing the name, office address and production establishment address of the
processing-undertaking trader to the customs office for inspection when
necessary.
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X. PROCEDURES
FOR DELIVERING AND RECEIVING INTERMEDIARY PROCESSED PRODUCTS OR RAW AND
AUXILIARY MATERIALS:
1. Responsibilities of
enterprises:
1.1. On the basis of the written
designations by the principals, the enterprise delivering intermediary
processed products (deliverer) and the enterprise receiving intermediary processed
products (recipient) shall organize by themselves the delivery and receipt
under Point 2 below.
1.2. The directors of the deliverer
and the recipient are responsible before law for delivering and receiving the
exact products as stated in the declaration of intermediary processed products
(below referred to as intermediary declaration).
1.3. The director of the deliverer
is responsible before law for the production of intermediary processed products
from imported raw materials of the processing contract. The director of the
recipient is responsible before law for the proper use of intermediary
processed products for the processing purpose.
1.4. If the processing contract
involving intermediary processed products (deliverers processing contract) and the
processing contract using intermediary processed products as processing raw
materials (recipients processing contract) are possessed by the same processing
enterprise, such enterprise shall perform the tasks of both deliverer and
recipient.
2. Process of carrying out
customs procedures:
2.1. The deliverer fills in the
customs declaration and delivers the goods to the recipient:
a/ The deliverer shall fully fill
in all sections reserved for declaration by goods deliverer, sign and seal on 4
declarations (form HQ/2008-GCCT-Annex I).
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2.2. After fully receiving products
and 4 customs declarations already filled in, signed and sealed by the
deliverer, the recipient shall:
a/ Fully fill in all sections
reserved for goods recipient, sign and seal on all 4 declarations.
b/ Register the customs
declarations with the recipients customs office; a registration dossier
comprises:
- Customs declaration: To submit 4
originals;
- The written designation issued by
the principal: To submit 1 copy and produce 1 original;
- The added-value invoice (or
ex-warehousing slip of the deliverer if the deliverer is an export processing
enterprise or the warehousing slip of the recipient, if the recipient is an export
processing enterprise): To submit 1 copy and produce 1 original;
- Samples of intermediary processed
goods;
- Producing goods or records and
documents related to the receipt of goods to the customs office for examination
upon request.
2.3. The recipients customs office
shall:
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b/ Register the declarations; make
out a sampling card and seal up sample goods according to regulations;
c/ Physically inspect goods: only
when doubting that the enterprises deliver and receive goods other than those
declared on the intermediary processing declarations; if the enterprise has put
goods into production, check records and documents related to the enterprises
goods receipt;
d/ Certify the customs clearance,
sign and seal all 4 declarations;
e/ Keep 1 declaration and copies of
documents; return 3 declarations and the original to the recipient; hand over
goods samples already sealed up by the customs to the recipient for
preservation and production to the customs office when carrying out procedures
for exporting processed products or in other cases upon the customs offices
request.
2.4. After receiving 3 customs
declarations bearing the customs clearance certification from the recipients
customs office, the recipient shall keep 1 declaration and transfer the other
two to the deliverer.
2.5. Immediately after receiving 2
customs declarations (already completely filled in, signed and sealed by the
recipient and the recipients customs office) from the recipient the deliverer
shall register the customs declaration with its customs office. A registration
dossier comprises:
a/ Customs declaration: To submit 2
originals;
b/ The written designation issued
by the principal: To submit 1 copy and produce 1 original;
c/ The ex-warehousing slip: To
submit 1 copy and produce 1 original.
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a/ Receive the customs dossiers;
b/ Register the declarations;
certify the customs clearance; and sign and seal both declarations;
c/ Return to the deliverer-one
declaration and original documents; and keep 1 declaration and copies of
documents.
If the deliverers processing
contracts and recipients processing contracts are managed by the same customs
sub-department, such customs sub-department shall perform the tasks of both
deliverers customs office and recipients customs office.
The procedures for delivering and
receiving intermediary processed products above also apply to cases where the
principals are different.
3. Intermediary processing
declarations may be used as payment documents for liquidating processing
contracts if meeting the following conditions:
3.1. For deliverers processing
contracts:
a/ All the declarations sections
are completely filled in, no erasure is permitted; the declaration bears the
certification, signatures and seals of all 04 parties: recipient; deliverer;
customs office managing the delivery processing contract (deliverers customs
office); customs office managing the receipt processing contract (ilk recipients
customs office);
b/ The deliverer visits its customs
office to carry out customs procedures when the deliverers processing contract
remains valid and within 15 days from the date the recipients customs office
signs and certifies the customs clearance on the declaration. Past this time
limit, if the declaration bears the customs clearance certification of the
recipients customs office, the customs office shall make a written record of
the violation and handle the violation according to regulations before further
carrying out customs procedures without destroying the declaration.
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a/ All sections in die declaration
are completely filled in, no erasure is permitted; the declaration bears the
certification, signatures and seals of 3 parties (excluding the deliverers
customs office);
b/ The recipient visits its customs
office to carry out customs procedures when the recipients processing contract
remains valid and within 15 days from the date the deliverer signs for certification
on the intermediary processing declaration.
XI. PROCEDURES
FOR RE-EXPORTING PROCESSING RAW MATERIALS AND SUPPLIES ABROAD DURING THE TIME
OF PERFORMING PROCESSING CONTRACTS
1. A customs dossier:
1.1. The customs declaration: To
submit 2 originals;
1.2. The enterprises written
explanation (stating the reason for re-export; numbers and dates of the import
declaration and the processing contract involving returned goods): To submit 1
original enclosed with a copy of the corresponding import declaration;
1.3. The principals written request
for the return of goods : To submit the original.
2. Customs procedures: similar to
those applicable to the re-export of redundant processing raw materials as
guided in Clause XII.6.2.2, Section II below.
3. The customs procedures for
exported processed goods which are returned for repair or reprocessing are as
guided in the Circular guiding customs procedures.
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1. Liquidation dossier:
1.1. The general table of imported
raw materials and supplies (made according to a set form): To submit 1
original.
1.2. The general table of exported
processed products (made according to a set form): To submit 1 original.
1.3. The export declaration of
products (including the on-spot export declaration; declaration of delivery of
intermediary processed products) ensuring that the goods have been actually
exported under the Circular guiding customs procedures: To produce the original
(kept by the goods owner).
Documents on the principals payment
of processing charges (except when the principal pays processing charges in the
form of processed goods): To produce the original and submit a copy. If it has
been agreed upon in the processing contract on a payment deadline beyond 45
days after the expiration of the contract, liquidation shall be still made for
the processing contract and the leadership of the customs sub-department
managing the processing contract shall consider and permit the late submission
of payment documents, as agreed upon in the processing contract, within 30
days.
If a processing charge payment
document is issued for more than one processing contract/annex, the enterprise
shall enclose a document explaining in detail the sum of money paid for each
contract/annex with a copy of the payment document
1.4. The general table of raw
materials and supplies re-exported back to the foreign partner and transferred
to another processing contract in the course of performance of the processing
contract, made according to a set form: To submit 1 original.
1.5. The general table of raw
materials and supplies supplied by the processor (if any), made according to a
set form: To submit 1 original.
1.6. The declaration of
self-supplied raw materials (declaration upon export of products, made according
to a set form): To produce 1 original. If the customs office has doubts about
the local origin of purchased raw materials, it may request the enterprise to
additionally produce the purchase invoice and the principals payment documents
of the supplied raw materials.
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1.8. The processing contract
liquidation document, made according to a set form: To submit 2 originals (one
of which will be returned to the enterprise after liquidation).
1.9. The general table of machines
and equipment temporarily imported for re-export, made according to a set form:
To submit 1 original.
1.10. The declaration of temporary
import of leased or borrowed machines and equipment; the declaration of receipt
of machines and equipment from another processing contract (if any); the
declaration of re-export of machines and equipment: To produce the original
(kept by the goods owner).
The enterprise director shall sign
and seal (for private business households, sign and write the full name and the
identity cards number and place of issue) on the above tables and take
responsibility before law for the accuracy and truthfulness liquidation data.
2. Time limit for submission of
liquidation dossiers:
Within 45 working days, counting
from the date of completion or expiration of the processing contract (or its
annex), the enterprise shall submits complete processing contract liquidation
dossier (comprising also a plan to dispose of redundant raw materials,
temporarily imported machines and equipment, scraps, faulty products and
discarded products) to the customs sub-department managing the processing
contract.
For a processing contract with different
annexes to be performed separately the time limit for submission of the
liquidation dossier for each annex is the same as for submission of processing
contract liquidation dossiers.
3. Time limit for receiving,
checking and comparing liquidation dossiers by customs office
3.1. For enterprises, which,
according to the risk management system of the customs have office strictly
observed the customs law: With 15 working days from the date the enterprise
submits a complete and valid liquidation dossier the customs office shall check
the completes and validity of the liquidation dossier and certify liquidation
for the enterprise.
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3.3. Examination of liquidation
dossiers submitted and produced by enterprises mentioned at Points 3.1 and 3.2
above shall be conducted at customs offices. If an enterprise has many
liquidation dossiers and files a written request for the examination of
liquidation dossiers at its head office, the customs sub-department shall
consider and make decision on a case-by-case basis.
4. Time limit for carrying out
customs procedures for redundant raw materials, temporarily imported machines
and equipment, scraps, faulty products and discarded products:
Within 30 working days after the
customs office completes the examination and comparison of a liquidation
dossier, the enterprise shall carry out customs procedures for handling
redundant raw materials, temporarily imported machines and equipment, scraps,
faulty products and discarded products (if any).
5. Handling of cases of failing to
submit .liquidation dossiers or carry out procedures for redundant raw and
auxiliary materials and supplies and temporarily imported machines and
equipment within prescribed time limits:
5.1. Handling of cases of late submission
of liquidation dossiers:
a/ Within 20 working days from the
expiration of the time limit for submission of liquidation dossiers, the
customs office managing a processing contract shall:
a1. Send a letter inviting the
enterprise director to the customs office for making a record of the violation
for handling according to regulations; send such a letter only once, if the
director fails to appear, make a record by itself to serve the handling of the
violation;
a2. Calculate and fix the payable
tax amount and a fine for late tax payment for the amounts of raw materials and
supplies and machines under the processing contract not yet liquidated,
counting from the date of registration of the import declaration of these raw
materials as for commercial imports.
b/ The enterprise shall pay the tax
and a fine for late tax payment for imported goods of the processing contract
not yet liquidated, into a temporary collection account indicated in the
customs offices tax payment notice, and comply with the administrative
sanctioning decision according to law;
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d/ If the enterprise submits a
dossier and completes the liquidation after having paid the tax amount and a
late tax payment fine, it will be refunded the tax amount and fine under the
guidance in the Circular guiding customs procedures.
5.2. Handling of cases of failing
to carry-out procedures for redundant raw and auxiliary materials and supplies
and temporarily imported machines and equipment:
a/ The customs office managing the
processing contract shall:
a1. Make a record of the violation
as a basis for handling according to regulations;
a2. Calculate and fix the tax
amount for redundant raw and auxiliary materials and supplies and temporarily
imported machines and equipment under the processing contract not yet
liquidated, counting from the date the customs office completes liquidation
comparison procedures.
b/ The enterprise shall pay the tax
amount into a temporary collection account indicated in the customs offices tax
payment notice, and comply with the administrative sanctioning decision
according to law;
c/ Past the tax payment deadline,
the enterprise that fails to pay tax will be subjected to coercive measures as
prescribed by law.
5.3. Extension of the time limits
for submission of liquidation dossiers, and carrying out of customs procedures
for redundant raw materials, temporarily imported machines and equipment,
scraps, faulty products and discarded products:
Extension of the time limit for
submission of liquidation dossiers is given in the following cases:
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- There is a dispute between the
principal and processor over the processing contract;
- There arises a force majeure
event that makes the enterprise unable to observe the liquidation deadline.
On the basis of the enterprises
written explanation, the director of the customs sub-department managing the
processing contract shall consider and extend the time limit for submission of
liquidation dossiers specified at Point 2 of this Clause. Extension may be
given only once and must not exceed 30 days.
6. Customs procedures for disposing
of redundant raw materials, scraps, faulty products, discarded products, leased
or borrowed machines and equipment
6.1. Forms of disposal:
Pursuant to the agreement in the
processing contract and Vietnamese laws, redundant raw materials, scraps,
faulty products, discarded products, leased or borrowed machines and equipment
for processing shall be disposed of as follows:
a/ Selling on the Vietnamese market
(on-spot import and export);
b/ Re-export to foreign parties;
c/ Transfer to another processing
contract in Vietnam;
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e/ Destruction in Vietnam.
6.2. Customs procedures:
6.2.1. Customs procedures for the
sale of redundant raw materials and supplies, scraps, faulty products, leased or
borrowed machinery and equipment in the Vietnamese market are the same as those
applicable to on-spot import and export under the guidance in Clause VIII,
Section II of this Circular.
6.2.2. The customs procedures for
the re-export abroad under the principals designation are the same as those
applicable to commercial exports. When carrying out customs procedures, customs
officers shall physically inspect goods lots, compare raw materials re-exported
abroad with the samples taken upon importation (if samples were previously
taken); and compare the categories and codes of machines and equipment shown on
the temporary import declaration, for re-exported machines and equipment.
6.2.3. The customs procedures for
the transfer of redundant raw materials and supplies and leased or borrowed
machines and equipment to another processing contract under the principals
designation are the same as those applicable to the delivery and receipt of
intermediary processed products guided in Clause X, Section II of this Circular.
In addition, the following shall be performed:
a/ The procedures for the transfer
of redundant raw materials and supplies and leased or borrowed machines and
equipment to another processing contract may be carried out after the
leadership of the customs sub-department managing the processing contract gives
certification in the enterprises written request upon processing contract
liquidation;
b/ In case of transfer of redundant
raw materials and supplies and leased or borrowed machines and equipment to another
processing contract performed by another enterprise:
b1. The recipient shall produce raw
materials received from another processing contract and raw material samples
taken upon importation to the recipients customs office for comparison;
b2. The recipients customs office
shall compare the raw material samples taken upon importation with the
transferred raw materials. If they are the same, it shall take new samples for
the raw material-receiving contract (the sample comparison and sample taking
will take place at the enterprise). In the course of comparison, if detecting
signs of sham delivery and receipt or delivery of insufficient raw materials
compared to data on the intermediary processing declaration, it shall examine
the whole goods lot and handle violations (if any) according to law;
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c/ In case of transfer of redundant
raw materials and supplies and leased or borrowed machines and equipment from
one processing contract to another performed by the same enterprise:
c 1. When carrying out customs
procedures for transferring redundant raw materials from one processing
contract to another, the enterprise shall produce the raw material samples
under the deliverers processing contract;
c2. The customs sub-department
managing the processing contract shall transfer these samples to the new
processing contract by making a new sample-taking card and seal up the
transferred samples together with this card;
c3. The customs sub-department
managing the processing contract shall inspect the enterprise when detecting
signs of untruthful transfer of the goods stated on the customs declaration.
d/ Transfer of raw materials and
supplies to another processing contract is disallowed in the following cases:
d1. The enterprise has imported raw
materials and supplies but does not perform any processing contract and applies
for permission to transfer these raw materials and supplies to another
enterprise;
d2. The enterprise has received raw
materials and supplies from the previous processing contract but does not put
them into processing and further applies for permission to transfer them to
another processing contract.
6.2.4. Customs procedures for
donation of leased or borrowed machines and equipment; redundant raw materials
and supplies; scraps and faulty products:
A customs dossier comprises:
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b/ The principals donation
document: To submit 1 original;
c/ The Industry and Trade
Ministry’s written consent if the donated goods are on the list of imports
subject to the Ministry’s permit or a line agency’s permit if the imported
goods are subject to such agency’s permit: To submit 1 original.
The customs procedures and tax
policy are the same as those applicable to donated goods. After completing customs
procedures for a goods lot, the customs office shall duplicate the declaration,
keep one duplicate and hand over another to the processing enterprise (if the
done is not the processor).
6.2.5. Customs procedures for
supervising the destruction of scraps and faulty products in Vietnam:
a/ The destruction shall be
conducted during the performance or after the expiration of the processing
contract/annex, including the case of destruction of processed products in
Vietnam as requested by the principal;
b/ Customs procedures for
supervising the destruction:
b1. The enterprise shall send to
the customs sub-department managing the processing contract a written notice of
the destruction time and place, enclosed with a written agreement of the
principal and, if the enterprise directly destroys its products, a written
approval of a competent environmental management agency.
If the enterprise hires another
trader with the function of disposing of scraps and discarded products, there
must be a destruction contract (1 original) and a competent agency’s written
permission of this trader (1 copy);
b2. The enterprise shall organize
the destruction and take responsibility before law for the environmental
impacts of the destruction process;
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b4. Upon completion of the
destruction, the involved parties shall make a written record certifying that
the destruction has been conducted in accordance with regulations. Such a
written record must bear the signature of the director and the seal of the
enterprise having their goods destroyed; and the full names and signatures of
the customs officers supervising the destruction and persons assigned by the enterprise
director to conduct the destruction.
7. Cases in which redundant raw
materials and supplies, leased or borrowed machines and equipment; or processed
products cannot be re-exported because they are abandoned by the principals
The processing enterprise shall pay
taxes for domestic sale according to regulations or carry out procedures for
destruction as guided at Point 6.2.5, Clause XII of this Section.
Section III.
CUSTOMS PROCEDURES FOR
ORDERING GOODS PROCESSING OVERSEAS
I. PROCEDURES
FOR REGISTERING PROCESSING CONTRACTS
1. Responsibilities of enterprises:
Before filling in the procedures
for exporting the first goods lot under the processing contract, the enterprise
shall register the contract. A dossier comprises:
1.1. The processing contract and
annexes (if any): To submit 2 originals;
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1.3. The export/import business
code or tax identification number registration certificate: 1 copy;
1.4. The permit of a competent
agency, if the goods exported for the performance of the processing contract
and the imported processed products are on the list of imports and exports
subject to permit: To submit 1 copy and produce the original.
2. Tasks of the customs office: As
specified at Point 2, Clause IV, Section I of this Circular.
II. PROCEDURES
FOR EXPORTING RAW MATERIALS
1. Customs dossiers are the same as
dossiers of exported processed products; in addition, if raw materials are on
the list of exports subject to permits of the Industry and Trade Ministry or a
line management agency, a permit of the relevant competent agency must be
produced to the customs office for reconciliation purposes.
2. The customs procedures are the
same as those applicable to commercial exports guided in the Circular guiding
customs procedures.
III.
PROCEDURES FOR REGISTERING, ADJUSTING AND EXAMINING NORMS
1. Use norms, consumption norms of
supplies and wastage percentages of processing raw materials and supplies must
be specified in the processing contract and consistent with its actual
performance.
2. Time of registration and
adjustment of norms:
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2.2. Before carrying out procedures
for liquidating the processing contract, if processed products are sold abroad.
3. The procedures for registering,
adjusting and examining norms are the same as those applicable to the case of
processing for foreign traders.
IV. PROCEDURES
FOR IMPORTING PROCESSED PRODUCTS
1. Customs dossiers are the same as
those required for commercial imports while customs declarations are registered
like those required for goods imported for processing.
2. The customs procedures are the
same as those applicable to commercial imports.
Upon physical inspection of goods,
raw material samples taken upon their exportation must be compared with raw
materials constituting the products.
V. PROCEDURES
FOR LIQUIDATING PROCESSING CONTRACTS
1. A liquidation dossier
comprises:
1.1. The general table of exported
raw materials: To submit 1 original and produce the export declaration.
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1.3. The general table of processed
products sold abroad: To submit 1 original.
1.4. The general table of raw
materials used for the production of already imported processed products: To
submit 1 original.
1.5. The general table of raw
materials purchased overseas (if any) for the production of already imported
processed products: To submit 1 original.
1.6. The written liquidation of the
processing contract: To submit 2 originals.
The contents of the above lists are
similar to these of the corresponding ones in the dossier of liquidation of
processing contract for foreign trader guided in Clause XII, Section II of this
Circular.
2. Liquidation procedures:
The time limit for the enterprise
to submit a liquidation dossier, disposal of redundant raw materials and
supplies, machines and equipment temporarily exported for the processing; and
the time limit for the customs office to examine and certify liquidation
dossier are as the same as those applicable to processing contracts for foreign
traders.
Section IV.
ORGANIZATION OF
IMPLEMENTATION
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2. This Circular takes effect 15
days after its publication in CONG BAO and replaces the Finance Ministry’s
Circular No. 69/2004/QD-BTC of August 24, 2004, and other documents contrary to
this Circular.
3. The General Director of Customs,
heads of units under and attached to the Ministry of Finance, and concerned
organizations and individuals shall implement this Circular.
FOR
THE MINISTER OF FINANCE
VICE MINISTER
Do Hoang Anh Tuan