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MINISTRY
OF FINANCE
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SOCIALIST
REPUBLIC OF VIET NAM
Independence - Freedom – Happiness
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No.
74/2010/TT-BTC
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Hanoi,
May 14, 2010
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CIRCULAR
AMENDING AND SUPPLEMENTING SOME CONTENTS OF THE FINANCE
MINISTER'S CIRCULAR NO. 116/2008/TT-BTC OF DECEMBER 4, 2008, GUIDING CUSTOMS
PROCEDURES FOR GOODS PROCESSED FOR FOREIGN TRADERS
Pursuant to June 29, 2001 Law
No. 29/2001/QH10 on Customs 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 Law No. 45/2005/ QH11 on Import Duty and Export Duty;
and November 29, 2006 Law No. 78/2006/QH11 on Tax Administration;
Pursuant to the Government's Decree No. 154/2005/ND-CP of December 15. 2005,
detailing a number of articles of the Customs Law regarding customs procedures,
inspection and supervision;
Pursuant to the Government's Decree No. 12/ 2006/ND-CP of January 23, 2006,
detailing the implementation of the Commercial Law regarding international
goods trading and goods trading agency, processing and transit with foreign
parties;
Pursuant to the Government's Decree No. 118/2008/ND-CP of November 27, 2008.
defining the functions, tasks, powers and organizational structure of the
Ministry of Finance;
The Ministry of Finance amends- and supplements a number of contents of
Circular No. 116/2008/TT-BTC of December 4, 2008, guiding customs procedures
for goods processed for foreign traders (below referred to as Circular No.
116/2008/TT-BTC), as follows:
Article 1. Processing
contracts
1. To amend and supplement
Point 1, Clause II, Section I of Circular No. 116/2008/TT-BTC as follows:
"1. Forms of processing
contracts
1.1. A processing contract must
be made in writing of other forms of equivalent validity including telegraph,
telex, fax, data message and other forms prescribed by law.
Regarding signatures and seals
in contracts: Foreign traders shall sign while Vietnamese traders shall sign
and seal contracts as required by Vietnam's law.
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2. To amend Point 2, Clause
II, Section I of Circular No. 116/2008/TT-BTC as follows:
"2. Contents of processing
contracts
A processing contract must have
all details specified in Article 30 of the Government's Decree No.
12/2006/ND-CP of January 23.2006.
In case the principal and
processor conduct transactions via a third party, such must be expressed in the
contract, contract annex or relevant document as proof."
3. To amend and supplement
Point 3.1, Clause II, Section I of Circular No. 116/2008/TT-BTC as follows:
"3. Processing contract
annexes
Annexes of a processing contract
constitute 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 contract annexes which must be notified to the customs office
before or when the enterprise carries out import or export procedures for the
first goods lot subject to such annexes and before the expiration date of the
processing contract. Particularly for the value of raw materials and supplies
imported for processing, the value written on the commercial invoice included
in the import dossier will be accepted and no adjustment annex is
required."
Article 2.
Places of customs clearance
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"1. Customs procedures for
a specific processing contract (including the receipt of the contract,
acceptance of norms, performance of customs procedures for each lot of imports
or exports under the contract and liquidation of the contract) shall be carried
out at a district-level Customs Department under a provincial-level Customs
Department which is selected by the enterprise concerned. Specifically:
a/ The district-level Customs
Department of the locality where the production establishment performing the
processing contract (including reprocessing establishment) is based, or
b/ The district-level Customs
Department of the locality where the enterprise's head office or lawfully
established branch is based.
If there is no customs office in
the locality where its production establishment, head office or branch is
based, the enterprise may select a district-level Customs Department convenient
for customs clearance registration."
Article 3.
Responsibilities of enterprises and customs offices
To amend Clause IV, Section I
of Circular No. 116/2008/TT-BTC as follows:
"1. Enterprises:
1.1. Enterprises shall take
responsibility before law and customs offices when notifying their contracts;
making declarations and carrying out import procedures for raw materials,
supplies and auxiliary materials; notifying and adjusting norms; undertaking
intermediary processing; making declarations and carrying out export procedures
for processed products; and liquidating processing contracts Upon completion or
expiration of a processing contract, they shall liquidate the processing
contract and carry out liquidation procedures at the customs office under
Article 35 of the Government's Decree No. 12/2006/ND-CP of January 23.2006.
1.2. Upon disposing of redundant
raw materials and supplies, scraps, faulty products, wastes and hired or
borrowed machines and equipment under Point 6. Clause XII. Section II of
Circular No. 116/2008AT-BTC, enterprises shall proactively declare them to. and
carry out procedures at, customs offices according to regulations.
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To apply risk management
techniques; arrange officers to monitor enterprises in the performance of
processing contracts; apply information technology to customs supervision and
management and post-customs clearance inspection so as to facilitate and
strictly manage the importation of raw materials and materials, exportation of
products and liquidation of processing contracts."
Article 4.
Procedures for notification of processing contracts
To amend Clause I, Section II
of Circular No. 116/2008/TT-BTC as follows:
"I. Procedures for
notification of processing contracts
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 notify the processing contract to the customs office. A
dossier comprises:
1.1 The processing contract and
its annexes (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 received and 1
Vietnamese version (if the contract is made 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 certified by the enterprise..
1.3 The tax identification
number registration certificate (if carrying out registration procedures for
the first time): To submit 1 copy certified by the enterprise.
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1.5. The certificate of
eligibility for scrap import (in case of importing scraps for use as processing
raw 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/TTLT-BCT-BTNMT of
August 30, 2007. of the Ministry of Industry and Trade and the Ministry of
Natural Resources and Environment, guiding Article 43 of the Law on
Environmental Protection regarding criteria and conditions for scrap import.
1.6. A document explaining and
evidencing its production establishment, for enterprises undertaking the
processing for the first time specifying the address of the enterprise's head
office, the address of the production establishment, equipment line and design
capacity (even for cases of outsourcing); the account number and the name of
the bank with which the enterprise deposits its money: To submit I original.
The enterprise is required to
give explanations only once and make additional explanations only when there
are any changes in the explained contents. In case of change in the legal
person status, address of its working office or production establishment (from
the time of submitting the processing contract to the time of completing the
liquidation of the contract), the enterprise shall promptly notify in writing
these changes to the district-level Customs Department managing the processing
contract.
1.7 The processing outsourcing
contract (for the case of outsourcing the processing of all products): To
submit 1 copy certified by the enterprise and produce the original for
comparison.
1.8 The written registration of
raw materials and supplies for the processing contract or annex, made according
to form No. 01/DKNVL-GC provided in Appendix I to Circular No. 116/2008/
TT-BTC: To submit 2 originals.
2. Tasks of customs offices:
2.1. To receive processing
contracts:
a/ For cases in which inspection
of production establishments is not required: Within 8 working hours after the
enterprise submits a complete and valid dossier, the customs office shall
complete procedures for receiving the processing contract.
b/ For cases in which inspection
of production establishments is required: Within 5 working days after the
enterprise submits a complete and valid dossier, the customs office shall
inspect production establishments and complete the receipt of the processing
contract (or issue a written refusal of the receipt of the processing contract,
if prescribed conditions are not fully met).
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2.3. To check the completeness
and validity of the processing contract.
2.4. To enter in a computer
information related to the processing contract: return to the enterprises 1
original of the processing contract and original documents already produced.
2.5. To inspect production
establishments:
a/ For cases in which inspection
of production establishments is required:
When an enterprise submits its
processing contract or during production, if the customs office has any doubt
about the address of its production establishment or matters related to the
security for the performance of the processing contract, it shall inspect the
enterprise's production establishment.
b/ Time of inspection:
The customs office may conduct
inspection at the following points of time:
b1. After the enterprise submits
a complete dossier of notification of the processing contract; or
b2. In the production process.
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d/ Handling of results of
inspection of a production establishment which show that conditions for the
performance of the processing contract are not satisfied:
d1. If the processing contract
is not yet received: The customs office shall refuse to receive the processing
contract and clearly state the reason.
d2. If the processing contract
has been submitted:
d2.1. If the production
establishment exists but 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 shall suspend import procedures for subsequent lots
of raw materials and supplies under the processing contract until the
enterprise satisfies all conditions as prescribed by law.
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 severity
of the violation, it shall forward the dossier to an anti-smuggling or
post-customs clearance inspection customs unit for verification, investigation
and handling in accordance with law."
Article 5.
Procedures for norm notification, adjustment and inspection:
To amend Clause II, Section
II of Circular No. 116/2008/TT-BTC as follows:
"II. Procedures for norm
notification, adjustment and inspection
1. Notification of norms
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For products (goods items) of
different sizes or different categories, enterprises shall declare norms
applicable to products of each size or each category or the average norm
applicable to each product (goods item). Enterprises shall calculate average
norms by the method guided in form No. 03/TBDM-GC provided in the Appendix to
this Circular (not printed herein) and submit them. together with the written
explanations about the method for calculating average nouns, for use as a basis
for inspection by customs offices when necessary.
1.2. In the course of performing
a processing contract, if its actual norms are changed because of change in raw
material characteristics, processing conditions or requirements of each export
order, the enterprise shall submit a table of adjusted norms applicable to
concerned goods items, enclosed with written explanations for each adjusted
norm.
After exporting processed
products, if an enterprise detects that the actual norms on the use of raw
materials for. export processing are different from the notified ones, it may
adjust these norms before submitting the liquidation dossier but must satisfy
the following conditions:
a/ It still keeps product
samples or technical catalogs and design diagrams of the product or there are
errors in calculating norms (for example, norms applicable to 3-layer jackets
are mistakenly applied to 2-layer ones).
b/ It takes responsibility before
law for the accuracy of adjusted norms.
When adjusting norms applicable
to a goods item, an enterprise is not required to change the code of the goods
item indicated in the processing contract. The enterprise and the customs
office carrying out procedures for the processing contract shall reach
agreement on the addition of a secondary code for the goods item in the table
of adjusted norms and the export declaration for such goods item.
1.3. Units of calculation used
in the table of norms comply with the Finance Ministry's Decision No.
107/2007/QD-BTC of December 25. 2007. promulgating Vietnam's list of imports
and exports and must accord with those used in the notified processing contract
or its annex.
For cases in which the units of
calculation indicated in the notified processing contract or its annex does not
accord with those prescribed in Decision No. 107/2007/QD-TTg. the enterprise
shall convert them to accord with the notified table of norms.
2. Time of norm notification and
adjustment
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2.2. Time of norm adjustment:
Norms shall be adjusted before carrying out customs procedures for the export
of products for which norms need to be adjusted. Particularly, the adjustment
of norms for processed products already exported must comply with the guidance
at Point 1.2 above.
3. Norms already notified or
adjusted and notified to the customs offices shall be used for liquidation of
the processing contract.
4. Inspection of norms
4.1. Norms shall be inspected in
the following cases:
Customs offices have detected
signs of fraud related to norms notified by enterprises that perform processing
contracts for foreign traders or enterprises have been handled for norm-related
frauds in the course of performing processing contracts, specifically:
a/ A processing contract or its
annex which shows signs of fraud is subject to norm inspection. Inspection
shall be carried out on the principles prescribed in Article 3 of the
Government's Decree No. 154/2005/ND-CP of December 15, 2005, and restricted to
the inspection of conformity with the results of information analysis and
evaluation of law observance by the goods owner and the degree of risks of
customs law violation.
b/ For an enterprise which has
been handled for a norm-related violation, the time limit for norm inspection
is 365 days from the date the enterprise is handled for the norm-related violation:
the leader of the district-level Customs Department managing the processing
contract shall decide on the norm inspection. Past this time limit, inspection
will only be carried out upon detecting signs of norm-related fraud.
4.2. Inspection methods:
a/ Inspection at the customs
office.
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c/ Inspection by a specialized
assessment organization.
4.3. Time of inspection:
The customs office shall only
conduct inspection when necessary in the following cases:
a/ Before or upon the
exportation of the first lot of the goods item for which the table of norms has
been submitted; or,
b/ Upon adjustment of norms
applicable to processed products which have been exported under the guidance at
Point 1.2 above: or,
c/ Upon liquidation of the
processing contract; or,
d/ Upon post-customs clearance
inspection.
4.4. Responsibilities of
enterprises in the course of norm inspection:
a/ To give detailed explanations
about the grounds and methods of elaborating norms of goods items already
notified to the customs office, enclosed with product samples and their
technical design documents (e.g.. cutting diagram for garments).
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c/ To comply with the customs
office's decisions related to norm inspection.
4.5. Tasks of customs officers
conducting norm inspection:
a/ To conduct inspection
according to the prescribed process without obstructing the enterprise's
production.
b/ Time limits for inspection:
b.1. For cases of documentary
examination at the customs office: Norm inspection must be completed within 8
working hours after the inspection begins.
b.2. For cases of documentary
examination in combination with physical inspection at the enterprise's
production establishment: Norm inspection must be completed within 3 working
days after the inspection begins. For products with a particular production
process which requires coordination among specialized agencies, the inspection
time limit may be prolonged but must not exceed 5 working days after the
inspection begins.
c/ To make a written record of
the results of inspection upon completion of inspection, which must fully and
truthfully reflect the details of inspection and bear the signature of the
customs officer conducting the inspection and a representative of the inspected
enterprise.
4.6. Competence to decide on
norm inspection: Leaders of the district-level Customs Departments managing
processing contracts and customs departments conducting post-customs clearance
inspection."
Article 6.
Procedures for the import of raw materials, auxiliary materials and supplies
for processing
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"1.3. For finished products
supplied by the principal for attachment to or packaging together with
processed products into complete goods for export abroad, customs procedures
are the same as those applicable to raw materials for processing, provided the
following conditions are met:
a/ The name of the finished
product and the purpose of its supply, namely for attachment to or packaging
together with processed products into complete goods for export abroad, is
specified in the processing contract or its annex;
b/ The quantity of finished
products for attachment to or packaging together with processed products for
export abroad is clearly indicated in the import customs declaration."
2. To amend Point 2, Clause
III, Section II of Circular No. 116/2008/TT-BTC as follows:
"2. For raw materials and
supplies for processing supplied by the principal in the form of on-spot import
and export, customs procedures comply with Article 15 of the Government's
Decree No. 154/200.VND-CP of December 15, 2005, and the guidance in Article 9
of this Circular."
3. To add following Point 3
on the import of raw materials, auxiliary materials and supplies for processing
via the express delivery service to the end of Clause III, Section II of
Circular No. 116/2008/TT-BTC:
"3. For cases in which raw
materials, auxiliary materials and supplies for processing are imported via the
express delivery service and the express delivery service provider has
registered a declaration according to the form of tax payment, the goods owner
shall re-register the declaration at the district-level Customs Department
managing the processing contract according to the form of importation. The
district-level Customs Department managing the processing contract shall
re-register the declaration for the goods owner based on the declaration
improperly filled in and notify such in writing to the district-level Customs
Department managing goods imported via the express delivery service for the
latter to refund lax to the enterprise (if any).
If the goods owner knows in
advance the arrival of his/her goods in Vietnam, he/she shall register a
customs declaration according to the form of importation with the
district-level Customs Department managing the processing contract and then
transfer the dossier to the express delivery service provider for the latter to
carry out customs procedures with the district-level Customs Department
managing goods imported via this service. Border-gate transfer procedures are
the same as those for goods imported via the express delivery service. If
owners of imported goods lots subject to physical inspection make a written
request for physical inspection at the place of inspection of goods imported
via the express delivery service, the district-level Customs Department
managing these goods shall conduct inspection at the request of the enterprise
and the district-level Customs Department managing the processing
contract."
Article 7. Customs
procedures for raw materials, auxiliary materials and supplies supplied by
processors themselves for processing contracts
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"1. For raw materials,
auxiliary materials and supplies produced or purchased in the Vietnamese market
by the processing enterprise:
1.1. The supply must be agreed
upon in the processing contract or its annex. It is prohibited to supply raw
materials, auxiliary materials and supplies on the list of goods banned or
suspended from export.
1.2. For raw materials,
auxiliary materials and supplies on the list of goods subject to export
permits: To submit 1 copy and produce the original for comparison.
1.3. Customs procedures:
a/ Export-processing enterprises
shall carry out customs procedures and procedures for liquidation of raw
materials, auxiliary materials and supplies supplied by themselves according to
current regulations (making declarations in the export customs declaration and
form No. 02/ NVLCU-GC provided in the Appendix to this Circular (not printed
herein).
b/ Other enterprises shall carry
out customs procedures only for raw materials, auxiliary materials and supplies
produced or purchased in the Vietnamese market by themselves which arc liable
to export duty or require licenses. When carrying out export procedures for
processed products, enterprises shall declare and calculate export duty (if
any) in an annex to the export goods declaration (form No. PLTK/2002-XK).
Customs office shall not carry
out procedures for liquidation for raw materials, auxiliary materials and
supplies produced or purchased in the Vietnamese market by enterprises
themselves.
2. To amend Point 2.4, Clause
IV, Section II of Circular No. 116/2008/TT-BTC as follows:
"2.4. When carrying out
export procedures for processed products, enterprises shall declare in form No.
02/NVLCU-GC provided in the Appendix to this Circular - not printed herein -the
names and quantities of raw materials used for the production of the export
lot: and the number and date of the declaration for the import of raw materials
for export production."
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To amend and supplement
Clause VII, Section II of Circular No. 116/2008/TT-BTC as follows:
"VII. Procedures for the
export of processed products abroad
1. When carrying out customs
procedures for the export of processed products, customs declarants shall
submit and produce to customs offices the following documents:
a/ The customs declaration: To
submit 2 originals:
b/ The detailed list of goods,
for goods of different categories or packages: To submit 1 original:
c/ The export permit, for goods
subject to export permits as prescribed by law: To submit 1 original, for cases
of single exportation, or to submit 1 copy and produce the original for
comparison and making of a conciliation slip, for cases of multiple
exportation:
d/ Other relevant documents as
prescribed by law: To submit 1 original.
Customs procedures are the same
as those for commercial exports prescribed in the circular guiding customs
procedures but tax inspection will not be carried out. Specifically as follows:
1.1. If the processed products
for export contain raw materials and supplies supplied by the processor itself,
customs procedures comply with the guidance at Point 2. Clause IV. Section II
of Circular No. 116/2008/T-BTC and Article 7 of this Circular.
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1.3 If the processed products
are exported to a third partner whose name and address, however, are not yet
indicated 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 party.
1.4 For a goods lot subject to
physical inspection, 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 notified.
If the enterprise has lost the
samples or the custom office doubts that to-be-exported products are not
produced from imported processing raw materials, customs officers conducting
physical inspection shall take samples of exported products for assessment (or
photograph the products for examination if sampling is impossible).
1.5. Right after the processing
contract expires, if there remain processed products not yet exported, the
enterprise shall make a commitment to the district-level Customs 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 carry
out procedures for registration of export declarations only for commodity items
for which norms have been notified by enterprises.
2. Customs procedures for
processed export goods lots transported from a border gate to another are the
same as those applicable to goods transported from a border gate to another
provided in Articles 16 and 18 of the Government's Decree No. 154/2005/ND-CP of
December 15. 2005. and the Circular guiding customs procedures."
Article 9.
Customs procedures for on-spot import or export of processed products
1. To amend Point 1.1, Clause
VIII, Section II of Circular No. 116/2008/TT-BTC as follows:
"1. For processed products
imported on spot for use as production raw materials:
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1.1.1. Exporting enterprises
shall:
a/ Fill in all items reserved
for exporting enterprises on 4 on-spot import and export customs declarations,
sign and seal them;
b/ Hand 4 on-spot import and
export customs declarations, goods and added-value invoices (the customer
original showing the name of the foreign trader and the name of the exporting
enterprise) to the importing enterprise.
1.1.2. Importing enterprises
shall:
a/ After receiving 4 on-spot
import and export customs declarations, fill in all items reserved for
importing enterprises on these declarations;
b/ Receive goods delivered by
the exporting enterprise;
c/ 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 district-level
Customs Department at which it carries out import procedures for carrying out
on-spot import procedures according to regulations applicable to each form of
importation;
d/ After completing on-spot
import procedures, keep 1 declaration and hand 2 declarations to the exporting
enterprise.
1.1.3. Customs offices carrying
out on-spot import procedures shall:
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b/ Certify the customs
clearance, sign and seal 4 customs declarations:
c/ Keep I declaration and
documents submitted by the importing enterprise, return to the importing
enterprise 3 declarations and documents produced by the enterprise:
d/ To issue a written notice to
the tax office managing the importing enterprise for monitoring, either in
writing or via the computer network, if available."
2. To add Item 1.3 to the end
of Point 1, Clause VIII, Section II of Circular No. 116/ 2008/TT-BTC as
follows:
"1.3. For cases in which
the delivery and receipt of processed products imported on spot for use as raw
materials for the production of processed products for export are carried out
for several times a day. a week or a month, the enterprise may fill in a single
aggregate declaration on-spot import and export customs declaration based in
documents of each time of goods delivery and receipt such as invoices,
ex-warehousing slips-cum-invoices. provided that the documents used as grounds
for making this aggregate declaration are made for such day. week or month
only. At the time of goods delivery and receipt, if there is any change in lax
policy, a separate on-spot import and export declaration shall be made in
addition to declarations subject to no change in tax policy.
The time of registration of a
daily aggregate customs declaration is the last working hour of the day. The
time of registration of a weekly or monthly aggregate customs declaration is
the last working day of the week or month."
Article 10.
Procedures for delivery and receipt of intermediary processed products
To amend the title of Clause
X, Section II of Circular No. 116/2008/1T-BTC as follows:
"X. Procedures for delivery
and receipt of intermediary processed products:'"
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1. Cases eligible for transfer:
a/ Machines and equipments
already used for the performance of a completed processing contract may be
transferred for use for the performance of the next processing contract with
the same or a different principal.
b/ Raw materials, auxiliary
materials and supplies may be transferred within 2 processing contracts (processing-ordering
contract and processing-undertaking contract) with the same or a different
principal, in case the principal requests a change in designs;
c/ Raw materials, auxiliary
materials and supplies may be transferred within 2 processing contracts with
the same principal, in case the principal has wrongly delivered them to the
processor;
d/ Other cases, if enterprises
make written explanations about plausible reasons which are accepted by the
director of the district-level Customs Department managing the processing
contract, except for cases specified at Point 6.2.3d, Clause XII. Section II of
Circular No. 116/2008/TT-BTC.
2. Customs procedures
Customs procedures are the same
as those for intermediary processed products guided in Clause X. Section II of
Circular No. 116/2008/ TT-BTC.
Article 12.
Procedures for liquidation of processing contracts
Upon termination or expiration
of a processing contract, an enterprise shall liquidate the processing contract
and its annex(es) under Article 35 of the Government's Decree No. 12/
2006/ND-CP of January 23. 2006.
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To amend Point 1, Clause XII,
Section II of Circular No. 116/2008/TT-BTC as follows:
"1.1. The table of imported
raw materials and supplies, made according to form No. 01/HSTK-GC provided in
the Appendix to this Circular -not printed herein: To submit 1 original.
1.2. The table of processed
products for export, made according to form No. 02/HSTK-GC provided in the
Appendix to this Circular - not printed herein: To submit 1 original.
1.3. A list of export
declarations of processed products (including the on-spot import and export
declaration and declaration of delivery of intermediary processed products) for
which customs procedures have been completed under the guidance in the circular
guiding customs procedures, customs inspection and supervision, import duty and
tax administration for imports and exports (made according to form No. 08/
HSTK-GC provided in the Appendix to this Circular - not printed herein).
1.4. The table of raw materials
and supplies to be re-exported back to the foreign party and transferred to
another processing contract in the course of performing the processing
contract, made according to form No. 03/HSTK-GC provided in the Appendix to this
Circular - not printed herein: To submit 1 original.
1.5. The table of raw materials
and supplies supplied by the processor (if any), made according to form No.
04/HSTK-GC provided in the Appendix to this Circular - not printed herein: To
submit 1 original.
1.6. The declaration of raw
materials supplied by the processor (declaration made upon exportation of
products according to form No. 02/NPLCU-GC provided in the Appendix to this
Circular - not printed herein): 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 their purchase invoices and the
principal's documents on payment for these raw materials.
1.7. The table of raw materials
and supplies already used to produce export products, made according to form
No. 05/MSTK-GC provided in Appendix II to Circular No. 116/2008/TT-BTC: To
submit 01 original.
1.8. The processing contract
liquidation document, made according to form No. 06/ HSTK-GC. provided in
Appendix II to Circular No. 116/2008/TT-BTC: To submit 2 originals (one of
which will be returned to the enterprise after liquidation).
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1.10. The declaration of
temporary import of hired 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 lull name
and the identity card's number and place of issue) the above-said tables and
take responsibility before law for the accuracy and truthfulness of liquidation
data."
2. Time limits for receipt,
examination and comparison of liquidation dossiers by customs offices
To amend and supplement Point
3.1, Clause XII, Section II of Circular No. 116/ 2008/TT-BTC as follows:
"3.1. For an enterprise,
which, according to the risk management system of customs offices, has strictly
observed the customs law: Within 7 working days after the enterprise submits a
complete and valid liquidation dossier, the customs office shall check the
completeness and validity of the liquidation dossier and certify the
liquidation for the enterprise.
Priority will be given to
enterprises which apply information technology to managing and monitoring
processed goods and can be connected to customs offices."
3. Handling of cases of late
submission of liquidation dossiers:
To amend and supplement Point
5.1, Clause XII, Section II of Circular No. 116/ 2008/TT-BTC:
"5.1. Handling of cases of
late submission of liquidation dossiers:
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a1. Send a letter inviting the
enterprise's representative to the customs office for making a record of the
violation for handling according lo regulations; send this letter twice, if the
enterprise's representative fails to appear, make a record of this failure by
itself to serve the handling of the violation:
a.2. Apply measures lo seek and
request the enterprise to liquidate the processing contract.
b/ Past 90 days from the
deadline for submission of liquidation dossiers, if the enterprise still fails
to submit a liquidation dossier, the customs office shall calculate and assess
the payable tax amount and a fine for late payment of tax on raw materials,
supplies, machines and equipment under the processing contract not yet
liquidated, counting from the date of registration of the import declaration of
these raw materials under the Circular guiding customs procedures, customs
inspection and supervisions; import duty and export duty and tax administration
for imports and exports. Past the prescribed time limit for tax payment, if the
enterprise still fails to pay tax according to tax assessment by the customs
office, it will be subject to coercive measures under regulations."
4. 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 and faulty products
To supplement Point 5.3,
Clause XII, Section II of Circular No. 116/2008/TT-BTC as follows:
"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 and faulty products:
Extension of the time limit for
submission of liquidation dossiers is permitted in the following eases:
- The enterprise simultaneously
performs many processing contracts which all expire at the same point of time
so it cannot prepare dossiers on time.
-The principal and processor
dispute over the processing contract:
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On the basis of the enterprise's
written explanations, the director of the district-level Customs Department
managing the processing contract shall consider and extend the time limit for
submission of liquidation dossiers specified at Point 2. Clause XII. Section II
of Circular No. 116/2008/TT-BTC on the time limit for submission of liquidation
dossiers. Extension may be given only once and must not exceed 30 days.
Past 90 days from the deadline
for submission of liquidation dossiers, if the enterprise still fails to submit
a liquidation dossier under the guidance in Clause 3. Article 12 of this
Circular but it makes written explanations, the director of the
provincial-level Customs Department shall consider and permit the extension on
a case-by-case basis. The extended duration must not exceed 30 days. Any
troubles must be reported to competent authorities for direction."
5. Customs procedures for
disposal of redundant raw materials and supplies: scraps, faulty products,
wastes and hired and borrowed machines and equipment
1. To amend Point 6.2.1,
Clause XII, Section II of Circular No. 116/2008/TT-BTC as follows:
"6.2.1. Customs procedures
for the sale of redundant raw materials and supplies, scraps, faulty products,
hired or borrowed machinery and equipment in the Vietnamese market are the same
as those applicable to on-spot import and export guided in Article 9 of this
Circular."
2. To amend and supplement
the first paragraph of Point 6.2.3, Clause XII, Section II of Circular No.
116/2008/TT-BTC as follows:
"6.2.3. Customs procedures
for the transfer of redundant raw materials and supplies and hired or borrowed
machines and equipment to another processing contract under the principal's
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. Enterprises are not required to submit added-value invoices and. in
addition, the following shall be performed."
6. Disposal of redundant raw
materials and supplies: hired and borrowed machines and equipment: and
processed products which cannot be re-exported because they arc abandoned by
the principals
To amend Point 7, Clause XII,
Section II of Circular No. 116/2008/TT-BTC as follows:
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The processing enterprise shall
pay taxes for domestic sale according to regulations or carry out procedures
for destruction under the guidance at Point 6.2.5. Clause XII. Section II of
Circular No. 116/2008/TT-BTC. In case of domestic sale, the taxable value shall
be calculated at the time of change of use purposes under Article 97 of the
Finance Ministry's Circular No. 97/2009/TT-BTC of April 20, 2009."
7. Disposal of raw materials and
auxiliary materials used for clearing
To add following Point 8 to
the end of Clause XII, Section II of Circular No. 116/ 2008n'T-BTC:
"8. Enterprises may clear
raw materials and auxiliary materials of the same categories among processing
contracts of the same principal and processor.
Enterprises shall declare and
pay taxes for redundant raw materials and auxiliary materials (if any)
according to regulations after subtracting the ratios of scraps and faulty
products within the norms guided in Articles 100 and 112 of the Finance
Ministry's Circular No. 79/2009/TT-BTC of April 20. 2009. The taxed value shall
be calculated at the time of change of use purposes as guided in Article 97 of
the Finance Ministry's Circular No. 79/2009/TT-BTC of April 20. 2009."
Article 13.
Customs procedures for goods ordered for overseas processing
1. To amend Clause I, Section
III of Circular No. 116/2008/TT-BTC as follows:
"I. Procedures for
notifying processing contracts
I. Responsibilities of
enterprises:
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1.1. The processing contract and
annexes (if any): To submit 2 originals:
1.2. The business registration
certificate or investment license or investment certificate: To submit 1 copy:
1.3. The tax identification
number registration certificate: 1 copy;
1.4. The permit of a competent
agency, if goods exported for the performance of the processing contract and
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 in Article 3 of this Circular."
2. To amend Point 1.6, Clause
V, Section III of Circular No. 116/2008/TT-BTC as follows: '
"1.6. The written
liquidation of the processing contract: To submit 2 originals.
The contents of the above table
are similar to those of corresponding tables included in the dossiers of
liquidation of contracts on goods processing for foreign traders guided at Clause
1. Article 12 of this Circular."
Article 14.
Liquidation forms
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1. Form No. 02/NVLCU-CG:
Declaration of raw materials and supplies supplied by the processors themselves
for the production of products for each export declaration (in replacement of
form No. 02/NVLCU-GC provided in Appendix I to Circular No. 116/2008/TT-BTC).
2. Form No. 03/TBDM-GC: fable of
notification of norms of each commodity item (in replacement of form No.
03/DKDM-GC provided in Appendix I to Circular No. 116/2008/ TT-BTC).
3. Form No. 01/HSTK-GC: Table of
imported raw materials and supplies (in replacement of form No. 01/HSTK-GC
provided in Appendix II to Circular No. 110/2008ATT-BTC).
4. Form No. 02/HSTK-GC: Table of
processed products for export ((in replacement of form No. 02/HSTK-GC provided
in Appendix II to Circular No. 116/2008nT-BTC).
5. Form No. 03/HSTK-GC: Table of
raw materials and supplies exported back to foreign partners or transferred to
other processing contracts (in replacement of form No. 03/HSTK-GC, provided in
Appendix II to Circular No. 116/ 2008ATT-BTC).
6. Form No. 04/HSTK-GC: Table of
raw materials and supplies supplied by the processors by themselves (in
replacement of form No. 04/ HSTK-GC, provided in Appendix II to Circular No.
116/2008/TT-BTC).
7. Form No. 08/HSTK-GC: List of
export declarations of processed products.
Article 15.
Organization of implementation
This Circular takes effect 45
days from the date of its signing. Any problems arising in the course of
implementation should be promptly reported to the Ministry of Finance for
timely settlement.
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FOR
THE MINISTER OF FINANCE
DEPUTY MINISTER
Do Hoang Anh Tuan