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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.
69/2004/QD-BTC
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Hanoi,
August 24,2004
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DECISION
PROMULGATING THE REGULATION ON CUSTOMS PROCEDURES FOR GOODS
PROCESSED UNDER CONTRACTS WITH FOREIGN TRADERS
THE MINISTER OF FINANCE
Pursuant to Customs Law No.
29/2001/QH10 passed on June 29, 2001 by the Xth National Assembly, at its 9th
session;
Pursuant to the Government's Decree No. 77/2003/ND-CP of July 1, 2003 defining
the functions, tasks, powers and organizational structure of the Finance
Ministry;
Pursuant to the Government's Decree No. 101/2001/ND-CP of December 31, 2001
detailing the implementation of a number of the Customs Law's articles on
customs procedures, the customs inspection and supervision regime;
Pursuant to the Government's Decree No. 57/1998/ND-CP of July 31, 1998
detailing the implementation of the Commercial Law's provisions on activities
of export, import, processing and goods purchase and sale agency for foreign
countries, and Decree No. 44/2001/ND-CP of August 2, 2001 amending and
supplementing Decree No. 57/1998/ND-CP;
At the proposal of the General Director of Customs,
DECIDES:
Article 1.-
To promulgate together with this Decision:
a/ The Regulation on customs
procedures for goods processed under contracts with foreign traders;
b/ The declaration forms of
intermediary processed goods, coded HQ/2004-GCCT;
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Article 2.-
This Decision takes effect 15 days after its publication in the Official
Gazette. To annul the General Department of Customs' Circular No.
07/2000/TT-TCHQ of November 2, 2000 and the relevant guiding documents.
Article 3.-
The General Director of Customs and the heads of the units under the Finance
Ministry and the concerned organizations and individuals shall have to
implement this Decision.
FOR THE MINISTER
OF FINANCE
VICE MINISTER
Truong Chi Trung
REGULATION
ON CUSTOMS PROCEDURES FOR GOODS PROCESSED UNDER CONTRACTS
WITH FOREIGN TRADERS
(Promulgated
together with the Finance Minister's Decision No. 69/2004/QD-BTC of August 24,
2004)
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GENERAL PROVISIONS
1. This Regulation shall apply
to carrying out of the customs procedures for goods processed under contracts
with foreign traders by the following subjects:
- Vietnamese enterprises established
and making business registration under the State Enterprises Law and the
Enterprises Law;
- Foreign-invested enterprises
established under the Law on Foreign Investment in Vietnam;
- Cooperatives established and
making business registration under the Cooperatives Law;
- Individual business households
making business registration under the Government's Decree No. 109/2004/ND-CP
of April 2, 2004.
These subjects are hereinafter
referred collectively to as enterprises.
2. Interpretation of terms:
In this Regulation, the
following terms and phrases are construed as follows:
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- Processing raw materials:
including raw materials, auxiliary materials and materials for processing.
- Processing scraps: including
those scraps discarded from processing raw materials; rented or borrowed
machinery and equipment in service of processing, which are damaged, can no
longer be used and must be discarded as scraps.
3. Customs procedures for
processing contracts (reception of contracts, registration of norms, carrying
out of customs procedures for each export or import goods lot, liquidation of
contracts) shall be carried out at a customs sub-department under the Customs
Department of a province or centrally-run city where the production
establishment currently performing the processing contract is located or where
the enterprise is headquartered (the head office of the enterprise or the
office of the enterprise's branch established according to law provisions). In
cases where no customs organization exists in such locality, the enterprise may
choose a customs unit most convenient for carrying out the customs procedures.
4. All export and import goods
of processing contracts must go through customs procedures, be subject to the
customs inspection and supervision, and liable to customs fee as prescribed by
law.
Depending on specific conditions
of each processing contract, enterprises may choose the mode of registering
declarations one by one for each export or import goods lot or the mode of
registering declarations simultaneously at a time for carrying out the customs
procedures for importing raw materials, exporting products for both processing
contracts and their annexes.
5. In cases where Vietnamese
enterprises sign contracts for processing for foreign traders but do not
directly perform the processing and hire other Vietnamese enterprise to process
(sub-processing), the enterprises signing processing contracts with foreign
traders shall carry out the procedures for export, import or liquidation of
processing contracts with the customs offices and take responsibility before
law for the performance of such processing contracts. Goods consigned among
enterprises on the Vietnamese side shall not be subject to the customs
procedures.
6. Processing contracts already
concluded by the parties in writing (via telegraph, telex, fax, e-mail and
other electronic communication modes, which shall also be considered writing
form) with contents prescribed in Article 12 of the Government's Decree No.
57/1998/ND-CP of July 31, 1998 shall serve as basis for the customs offices to
carry out procedures for export and import, and monitor the export and import
related to the processing contracts.
All modifications, supplements
and adjustments to clauses of processing contracts (including change or
adjustment of norms) must be effected through the signing of contract annexes
which must be submitted to the customs offices before or at the time when
enterprises carry out procedures for exporting or importing the first goods lot
under such contract annexes.
7. Surplus raw materials;
discarded materials and defective products; rented or borrowed machinery and
equipment shall, after the termination of processing contracts, be handled
according to the agreements stated in such processing contracts in compliance
with law provisions.
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8. Use and consumption norms
(hereinafter referred collectively to as norms), wastage rates of raw materials
shall be agreed upon by the parties in the processing contracts according to
the provisions of Article 13 of the Government's Decree No.57/1998/ND-CP of
July 31, 1998. If processing contracts do not prescribe the wastage rates of
raw materials, such processing contracts shall be deemed to have the raw
materials' wastage rate of 0%.
Norms and wastage rates of raw
materials registered by enterprises with the customs offices (according to form
10/HQ-GC) must be the actual ones experienced by enterprises. If the norms and
wastage rates of raw materials agreed upon in the processing contracts are
higher than the actual ones, enterprises must register such actual norms and
wastage rates.
The time of registration of
norms and wastage rates of raw materials of goods items is before or coincides
the time when procedures are carried out for exporting (for cases of processing
for foreign traders) or importing (for cases of ordering the processing in
foreign countries) the first goods lot of such goods items.
Norms and wastage rates of raw
materials already registered by enterprises with customs offices at either of
the above-said times shall serve as norms and wastage rate for processing
contract liquidation.
9. Inspection of norms:
9.1. Inspection regime and objects:
9.1.1. Inspection of norms shall
be conducted for all goods items in one of the following cases:
9.1.1.1. Enterprises perform
processing contracts for the first time.
9.1.1.2. Enterprises are
detected having committed norm-related violations:
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- Enterprises are detected
having imported goods in excess of those stated in their customs declarations,
for import goods; or having exported goods in deficit as compared to their
customs declarations, for export goods.
9.1.1.3. Customs offices have
grounds to doubt that the norms registered by enterprises with them are
inaccurate and untruthful;
9.1.1.4. Enterprises fail to
well observe the regime of management and use of invoices and vouchers (as notified
by the local Tax Departments).
After 12 months, if enterprises
do not relapse into violation (for the cases mentioned at Point 9.1.1.2) or are
notified by the local Tax Departments that they have well observed the regime
of management and use of invoices and vouchers (for the cases mentioned at
Point 9.1.1.4), they may shift to apply the inspection regime prescribed at
Point 9.1.2 below.
9.1.2. Probability inspection:
For other cases, the customs office shall conduct the probability inspection of
norms when necessary. If violations are detected, they shall shift to the
regime of inspection of all goods items as prescribed at Point 9.1.1 above.
9.2. Inspection measures:
The General Department of
Customs shall guide the norm inspection measures.
10. The liquidation of
processing contracts or processing contract annexes must be completed within 90
days after the termination thereof (except for the cases prescribed at Point
10.4 below). More concretely as follows:
10.1. Within 45 days after the
termination of processing contracts, processing enterprises shall have to
submit complete dossiers for contract liquidation according to the provisions
of Section VIII, Part 2 of this Regulation (including the plans on disposal of
surplus raw materials, temporarily imported machinery and equipment, discarded
materials and defective products) to the customs offices.
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10.2. Within 15 days after
enterprises submit complete liquidation dossiers, the customs sub-departments
managing processing contracts must complete the inspection and comparison of
liquidation dossiers.
10.3. Within 30 days after
customs offices complete the inspection and comparison of liquidation dossiers,
enterprises shall have to carry out the customs procedures for disposing
surplus raw materials; temporarily imported machinery and equipment; discarded
materials and defective products (if any) according to the provisions of Point
1.3, Section VIII, Part 2 of this Regulation.
10.4. In some special cases, the
time limit prescribed at Points 10.1 and 10.3 shall be extended but the total
extension duration must not exceed 30 days. Such extension shall be considered
and decided by the directors of the provincial/municipal Customs Departments.
10.5. The customs
sub-departments managing the processing contracts must organize the monitoring
of the liquidation of processing contracts/processing contract annexes. If
enterprises violate the time limit prescribed at Point 10.1 or Point 10.3
above, the customs sub-departments shall make written records on administrative
violations in the State management over customs and issue sanctioning
decisions. The sanctioning decisions must contain provisions requesting
enterprises to complete the liquidation of processing contracts within the time
limit prescribed for executing the sanctioning decisions. Past the time limit
for executing decisions on sanctioning administrative violations, if
enterprises still fail to complete the liquidation, they shall be handled as
follows:
10.5.1. If raw materials,
borrowed machinery and equipment, discarded materials and defective products
are not on the list of goods banned from import or temporarily suspended from
import, immediately after the time limit for executing administrative
violation-sanctioning decisions expires, the customs sub-departments managing
the processing contracts shall base themselves on import declarations kept at
the customs offices (for cases of failure to submit liquidation dossiers) or
results of liquidation comparison (for cases where enterprises have already
submitted liquidation dossiers but violated the provisions of Point 10.3 above)
to temporarily calculate import tax and issue tax notices to enterprises.
Within 30 days after the tax notices are issued, if enterprises still fail to
conduct the liquidation of processing contracts/contract annexes, the coercive
measures regarding the customs procedures for importing (including cases of
import for trading purposes) the subsequent goods lots of enterprises shall be
applied.
10.5.2. If raw materials,
borrowed machinery and equipment, discarded materials and defective products
are on the list of goods banned from import or temporarily suspended from
import, the directors of the provincial/municipal Customs Departments managing
the processing contracts shall request in writing the enterprises to conduct
liquidation and re-export their in-stock goods. Within 30 days after receiving
such written requests, if enterprises still fail to do so, they shall be handled
according to the provisions of Clause 4, Article 34 of the Government's Decree
No. 138/2004/ND-CP of June 17, 2004 on sanctioning of administrative violations
in the customs domains.
11. The customs procedures for
import of machinery and equipment rented or borrowed in service of processing;
import of sample goods for processing; import of processed products for
re-processing; re-export of imported raw materials shall be carried out as
follows:
11.1. The customs procedures for
machinery and equipment borrowed in service of processing shall be carried out
as for goods temporarily imported for re-export within the time limit
prescribed in Article 33 of the Customs Law.
11.2. The customs procedures for
rented machinery and equipment shall comply with the legal document guiding the
implementation of the Regulation on renting of machinery and equipment of
foreign countries, promulgated together with the Trade Minister's Decision No.
1447/1999/QD-BTM of December 10, 1999.
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11.4. The customs procedures for
sample goods exported or imported for use as models for processing shall be
carried out as for non-commercial goods (with the use of non-commercial
declaration form HQ/2002/PMD promulgated together with Decision No.
1473/QD-TCHQ of May 24, 2002 of the General Director of Customs).
Sample goods for use as models
for processing must satisfy the following conditions: Appearance of such goods
can only be used as models for processing and have no commercial value; voucher
sets of goods lots are vouchers for sample goods. For each imported sample
goods item, only five units are permitted to be imported.
11.5. The customs procedures for
cases of re-export of imported raw materials in the course of performance of
processing contracts at requests of processees shall be carried out as for
re-export of surplus raw materials after the termination of processing
contracts.
11.6. The customs procedures for
processed products re-imported for re-processing shall comply with the separate
documents prescribing the customs procedures for returned export goods.
Part 2
CUSTOMS PROCEDURES FOR
GOODS PROCESSED FOR FOREIGN TRADERS
I. PROCEDURES
FOR RECEIVING PROCESSING CONTRACTS
1. Responsibilities of
enterprises:
At least one day before filling in
the procedures for importing the first goods lot of a processing contract,
enterprises shall submit and produce customs dossiers for customs offices to
carry out the procedures for receiving the contract.
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- The processing contract and
enclosed contract annexes (if any): one original and one translation (if the
contract is made in a foreign language);
- The business registration
certificate or investment license for foreign-invested enterprises (if
procedures are carried out for first-time reception): one photocopy;
- The certificate of
registration of export and import business code: one photocopy;
- The Trade Ministry's permit,
if the to be-processed goods are on the list of goods banned by the Vietnamese
State from export or import and temporarily suspended from export or import; or
permit of a specialized agency, if the to be-processed goods require such a
permit according to the documents guiding the specialized export and import
management: one photocopy to be submitted and the original to be produced;
The director of the enterprise
or person authorized by him/her shall sign for certification, affix seal and be
held responsible before law for the translations and photocopies mentioned
above and hereinafter.
2. Tasks of customs officers
when receiving contracts:
2.1. To check the completeness
and validity of dossiers as prescribed.
2.2. To compare contents of
processing contracts with the provisions of Article 12 of Decree No.
57/1998/ND-CP of July 31, 1998.
2.3. To inscribe date (day,
month, year) of reception; give their signatures and full names; affix seals of
customs sub-departments (according to form 02 in the Appendix to Decision No.
1200/2001/QD-TCHQ of November 23, 2001) on the contracts and other papers
enclosed therewith; make entries to reception book and monitor performance of
processing contracts.
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2.4. To keep originals and
translations of contracts and contract annexes (if any) enclosed therewith and
photocopies of other papers for monitoring; and return the other papers to
goods owners.
2.5. To load into computers data
of contracts/contract annexes according to the criteria available in computers.
II.
PROCEDURES FOR IMPORTING RAW MATERIALS
1. Customs dossiers when
carrying out the procedures for importing each goods lot:
1.1. Papers which must be
submitted:
- Declaration of import goods:
two originals;
- Bill of lading: one copy of
the original or surrendered version or the original of the bill of lading
inscribed with word "copy";
- Commercial invoice: one
original;
- Detailed list of goods (if packing
materials are not homogenous): one original and one photocopy.
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- Written registration for
quarantine (for goods requiring quarantine): one original;
- The Trade Ministry's permit,
if imported raw materials are on the list of goods banned from import,
temporarily suspended from import or imported under the Trade Ministry's
permit: one photocopy;
- The specialized management
agency's permit, if imported raw materials are goods which, according to the separate
regulations on processed goods, require specialized management agency's permit:
one photocopy.
1.3. Papers which must be
produced:
Permits mentioned at Point 1.2.
above: one original for customs offices to issue cards for monitoring reconciliation
(for import of the first raw materials lot of a contract) or one original
enclosed with reconciliation-monitoring cards (for cases where such cards have
already been issued by customs offices).
2. The customs procedures for
importing lots of processing raw materials shall be carried out as for goods
imported under purchase and sale contracts prescribed in Decision No.
56/2003/QD-BTC of April 16, 2003, but without the step of tax calculation
inspection. Besides, the followings must be additionally performed:
2.1. For customs officers:
2.1.1. Upon registration of
declarations: Customs officers performing this task must fully inscribe the
serial numbers and date of declarations in the declarations list made according
to form 08/HQ-GC. Such list shall be kept at customs offices for comparison
with lists of enterprises when liquidation procedures are carried out.
2.1.2. Upon the inspection of
actual state of goods: Goods inspectors must take samples of principal raw
materials for keeping to the witness of goods owners (except for cases where
goods samples, cannot be taken or kept, due to the goods' nature). Goods
inspectors must inscribe fully and accurately the criteria in sampling cards
according to form 07/HQ-GC and affix customs seals on kept samples together
with their sampling cards; and give certification that samples of raw materials
have been taken (clearly stating the categories of sampled raw materials) in
the customs declarations; then hand over samples of raw materials to
enterprises for preservation.
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2.2. For enterprises:
- To preserve raw materials'
samples till the liquidation of processing contracts;
- To produce such raw materials'
samples to customs offices upon the inspection of export processed products or
in some cases where customs offices so request;
3. The customs procedures for
import goods lots transferred from a border-gate to another must go through
actual goods inspection at the import border-gates and the import goods lots
exempt from inspection shall comply with the provisions of Decision No.
53/2003/QD-BTC of April 16, 2003 and Decision No. 145/2003/QD-BTC of September
12, 2003. Besides, the followings must be additionally performed:
3.1. For customs sub-departments
managing processing contracts: The provisions of Point 2.1.1 above shall apply.
Directors of customs sub-departments shall decide which raw materials need to
be sampled (also applicable to goods lots exempt from actual goods inspection).
3.2. For customs sub-departments
of import border-gates: They shall take samples of raw materials under
decisions of customs sub-departments managing the processing contracts; make
sampling cards, seal up and hand over samples to enterprises for preservation
according to the provisions of Point 2.1.2 above.
3.3. For enterprises: The
provisions of Point 2.2. above shall apply.
4. For customs sub-departments
applying information technology to the management of processed goods:
- Upon registering declarations,
they must load into computers figures of declarations according to the criteria
available in computers or in comparison with the figures transmitted by
enterprises;
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5. The customs procedures for
processing contracts or annexes thereof involving the application of the mode
of single registration of declarations shall comply with the legal documents on
single registration of declarations.
6. The customs procedures for
raw materials imported by mode of on-spot import shall comply with the Finance
Ministry's Decision No. 153/2002/QD-BTC of December 17, 2002.
7. The customs procedures for
finished products supplied by the processees for being affixed on or packed
together with processed products into complete goods items for export to
foreign countries shall be carried out as for processing raw materials, if the
following conditions are met:
- Names of finished products and
purposes of supply thereof for affixture on or packing together with processed
products into complete goods items for export to foreign countries must be
clearly stated in processing contracts or supplementary annexes thereof;
- The list of use norms of raw
materials for processed products must contain norms of such finished products.
III. CUSTOMS
PROCEDURES FOR RAW MATERIALS SUPPLIED BY PROCESSORS THEMSELVES FOR PROCESSING
CONTRACTS
1. For cases where supplied raw
materials are purchased by enterprises in the Vietnamese market:
1.1. Raw materials supplied by
processors must be agreed upon in processing contracts or contract annexes in
terms of names, norms, wastage rates, volumes, unit prices, payment modes and
deadlines.
1.2. When purchasing raw
materials for supply, enterprises shall not have to carry out customs
procedures but have to ask for permits of competent agencies if supplied raw
materials are on the list of export goods requiring permits.
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If at the time of product
export, enterprises fail to make declaration strictly according to this
Regulation, the supplied raw materials shall not be included in the liquidation
of processing contracts. For cases where supplied raw materials are on the list
of export goods requiring permits of competent agencies, if enterprises, when
carrying out procedures for exporting their products, fail to make declaration
or make declaration but cannot produce the permits, they shall, depending on
the seriousness of their violations, be handled according to law provisions.
2. For cases where raw materials
are directly purchased by enterprises from foreign countries for supply for processing
contracts:
2.1. The supply conditions shall
comply with Point 1.1. above.
2.2. The customs procedures:
- The procedures for importing
raw materials shall be carried out as for import thereof for exports
production.
- When carrying out the procedures
for export of processed products, enterprises must clearly state the names;
used volumes; norms and actual wastage rates; serial numbers and dates of
import declarations of raw materials imported for exports production and
already used for production of export processed goods lots.
- Liquidation of import
declarations of raw materials which are imported for production of export
goods; export declarations are processing export declarations; norms of raw
materials are norms of processing contracts; export contracts are processing
contracts.
3. When liquidating processing
contracts or processing contract annexes, enterprises must enumerate all raw
materials already supplied for such processing contracts/processing contract
annexes into the lists made according to form 04/HQ-GC.
IV.
PROCEDURES FOR EXPORTING PROCESSED PRODUCTS:
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1.1. Papers which must be
submitted
- Export declaration: two
originals;
- Detailed list of goods of
export goods lot: two originals;
- Table of norms of each goods
item included in export goods lot (for norms of goods items not yet registered
with the customs offices): two originals;
- Declaration of raw materials
supplied by enterprises themselves (if any) corresponding to the volume of
processed products stated in the export declaration (form 11/HQ-GC): two
originals.
1.2. Papers which must be
additionally submitted:
- Permits of competent agencies
if the processees supply raw materials on the list of export goods requiring
permits: one photocopy.
1.3. Papers which must be
produced:
Permits mentioned at Point 1.2
above: one original for comparison with the photocopy submitted upon the
issuance of reconciliation-monitoring cards, or one original enclosed with
reconciliation-monitoring cards (if such cards have been granted by customs
offices).
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2.1. For customs officers:
- Upon the registration of
export declarations, customs officers registering declarations must inspect the
registration of norms for goods items stated in export declarations (for goods
items without registered norms, enterprises shall be requested to submit tables
of norms for registration); then inscribe serial numbers and dates of
declarations in the export declarations list (according to form 09/HQ-GC) like
when registering import declarations.
- For export goods lots decided
to be subject to actual goods inspection, they shall, when conducting the
inspection, have to compare the kept samples of principal raw materials with
the raw materials constituting the products, and compare the table of norms
with the actually exported products.
2.2. Obligations of enterprises:
- To produce the kept samples of
raw materials and the tables of norms already registered with customs offices
for comparison;
- For export goods lots exempt
from actual goods inspection, or for cases where samples of raw materials
cannot be taken or raw materials are transformed in production process (for
example, woolen fiber must be bleached and dyed before weaving), where customs
offices cannot make the comparison, enterprises shall take responsibility for
the use of right imported raw materials of processing contracts.
3. For customs sub-departments
applying information technology to the management of processed goods:
- Upon registering declarations,
they must load into computers figures of declarations according to the criteria
available in computers or check figures transmitted by enterprises;
- After obtaining the actual
goods inspection results, they must load into computers the actual export
figures.
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5. The customs procedures for
lots of processed products exported by mode of border-gate transfer shall be
carried out as for export goods transferred from one border-gate to another
prescribed in Decision No. 53/2003/QD-BTC of April 16, 2003 and Decision No.
145/2003/QD-BTC of September 12, 2003.
For goods lots subject to the
actual goods inspection at border-gates, enterprises shall produce the kept
samples of raw materials and the tables of norms already registered with
customs offices for comparison; border-gate customs sub-departments shall have
to make the comparison of the kept samples of raw materials and the tables of
norms according to the provisions of Point 2.1 above.
V. PROCEDURES
FOR ON-SPOT EXPORT AND IMPORT OF PROCESSED PRODUCTS
1. The conditions for on-spot
export and import shall comply with the provisions of Clause 11, Article 1 of the
Government's Decree No. 44/2001/ND-CP of August 2, 2001 and Points 1.2 and 1.3,
Part II of the Trade Ministry's Circular No. 20/2001/TT-BTM of August 17, 2001.
Completely processed products imported on spot for direct consumption (not for
use as production raw materials) shall strictly comply with the Regulation on
goods labeling, promulgated together with the Prime Minister's Decision No.
178/1999/QD-TTg of August 30, 1999.
2. Customs procedures:
2.1. For processed products
imported on spot for use as production raw materials:
- The customs declarations and
customs procedures shall comply with the provisions of Points 4 and 5, Section
I and Section III of the Regulation on customs procedures for goods exported,
imported on spot, promulgated together with the Finance Ministry's Decision No.
153/2002/QD-BTC of December 17, 2002.
- The customs dossiers for
on-spot export shall be the same as those for carrying out procedures for
exporting processed products to foreign countries. The customs dossiers for on-spot
import shall be the same as those for carrying out procedures for importing
goods from foreign countries (excluding bills of lading).
2.2. For completely processed
products imported on spot for direct consumption, the customs procedures shall
be carried out at customs sub-departments managing the processing contracts
with products for on-spot export. More concretely as follows:
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- Carry out procedures for
registering on-spot export declarations as for export of processed products to
foreign countries (using declaration form HQ/2002-XK promulgated together with
Decision No. 1257/2001/QD-TCHQ of December 4, 2001).
- Produce goods to customs
offices for inspection.
2.2.2. Importing enterprises
shall carry out the procedures for registering on-spot import declarations
(using declaration form HQ/2002-NK promulgated together with Decision No.
1257/2001/QD-TCHQ of December 4, 2001) and observe the policies on goods import
and tax policies toward import goods in strict compliance with law provisions.
2.2.3. Customs sub-departments
managing processing contracts shall:
- Register on-spot export
declarations for processing enterprises as for the export of processed products
to foreign countries;
- Register on-spot import
declarations for importing enterprises as for lots of goods imported from
foreign countries (customs dossiers do not require bills of lading);
- Conduct the actual goods
inspection as for processed goods exported to foreign countries; then inscribe
the goods inspection results in both the export declarations and the import
declarations;
- Conduct the tax calculation
inspection;
- Give certification of
completion of customs procedures in both the export declarations and the import
declarations;
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- Return the import declarations
(kept by goods owners) to on-spot importing enterprises; and return the export
declarations (kept by goods owners) to processing enterprises. The remaining
dossiers shall be kept by customs sub-departments according to regulations.
VI.
PROCEDURES FOR DELIVERING AND RECEIVING INTERMEDIARY PROCESSED PRODUCTS
1. Tasks of enterprises in
delivering and receiving goods:
- On the basis of written
designations by processees, enterprises delivering intermediary processed
products (deliverers) and enterprises receiving intermediary processed products
(receivers) shall organize by themselves the delivery and reception according
to the steps prescribed at Point 3 below.
- The directors of the
deliverers and the receivers shall be held responsible before law for
delivering and receiving the right products as stated in declarations of
intermediary processed products (hereinafter referred to as intermediary
declarations).
- The directors of the
deliverers shall take responsibility for the production of intermediary
processed products from imported raw materials of processing contracts.
- If processing contracts
turning out intermediary processed products (delivery processing contracts) and
processing contracts using intermediary processed products as processing raw
materials (reception processing contracts) are held by the same processing
enterprise, such enterprise shall perform the tasks of both the deliverer and
the receiver.
2. Intermediary declarations
shall be used as vouchers for liquidation of processing contracts if they meet
the following requirements:
2.1. For delivery processing
contracts:
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- The time for producing
declarations to the deliverer's customs office for its certification thereon
must be within the valid duration of the delivery processing contracts and
within 15 days after the receiver's customs office gives signature for
certification of customs procedure completion in such declarations.
2.2. For reception processing
contracts:
- The criteria in declarations
must be fully declared without being erased and/or crossed out and accompanied
with certifications, signatures and seals of three parties (excluding the
deliverer's customs office).
- The time for producing
declarations to the receiver's customs office for its certification thereon
must be within the valid duration of the reception processing contracts and
within 15 days after the deliverer makes the intermediary declarations.
3. The process of customs
procedures:
Step 1:
- The deliverer shall fully
declare the criteria for declarations by goods deliverers, clearly stating the
date, giving signature and affixing seal on the prescribed box in the four
declarations (form HQ/2004-GCCT printed by the General Department of Customs).
- It shall deliver products
enclosed with four declarations to the receiver.
Step 2:
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- It shall bring the customs
dossiers consisting of four declarations, written designation by the processee
and samples of intermediary processed products to the receiver's customs office
for registration of declarations.
Step 3:
The receiver's customs office
shall:
- Receive customs dossiers and
samples of intermediary processed products.
- Carry out the registration of
declarations; inscribe the serial numbers and dates of declarations in the
import declarations list (form 08/HQ-GC); then make sampling cards and seal up
goods samples according to regulations.
- Certify the customs procedure
completion, give signatures and seals in the four declarations.
- Keep one declaration and the
processee's written designation for goods reception; return three other
declarations to the receiver; hand over goods samples already sealed up by the
customs to the receiver for preservation and production to customs offices when
carrying out procedures for exporting processed products or other cases where
the customs offices so request.
The receiver shall keep one
declaration and transfer two others to the deliverer.
Step 4: The deliverer,
after receiving two customs declarations transferred by the receiver which
contain declared contents, signatures and seals of the receiver and the
receiver's customs office, shall bring them and the written designation for
goods delivery to the deliverer's customs office for registration of
declarations.
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- Receive customs dossiers
(consisting of two customs declarations with full declarations, signatures and
seals of the deliverer, the receiver and the receiver's customs office; and the
processee's written designation for goods delivery).
- Register declarations; fill
the export declarations list (form 09/HQ-GC) according to regulations; certify
the completion of customs procedures; and give signatures and seals in both
declarations.
- Return to the deliverer one
declaration; and keep one declaration and the written designation for goods
delivery.
At the above-said steps, if the
delivery processing contracts and reception processing contracts are managed by
the same customs sub-department, such customs sub-department shall perform the
tasks of both the deliverer's customs office and the receiver's customs office.
The procedures for forwarding
intermediary processed products shall also apply to cases where delivery
processing contracts and reception processing contracts have different
processees.
VII. CUSTOMS
PROCEDURES FOR PROCESSED PRODUCTS USED FOR PAYMENT OF PROCESSING REMUNERATIONS
Customs procedures for receiving
processed products as payment of processing remunerations shall be the same as
those prescribed for on-spot export or import of processed products in Section
V above. The purchase and sale contracts shall be replaced by written
agreements between the processees and processors on payment of processing
remunerations with processed products.
Enterprises must fully observe
the import goods management policies and tax policies for processed products
used for payment of processing remunerations as for goods imported from foreign
countries; comply with the provisions of the Regulation on labeling
domestically circulated goods and export as well as import goods, promulgated
together with the Prime Minister's Decision No. 178/1999/QD-TTg of August 30,
1999. Such processed products shall be included in the liquidation of
processing contracts.
VIII.
PROCEDURES FOR LIQUIDATING PROCESSING CONTRACTS
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1.1. Enterprises submit
liquidation dossiers (Step 1):
Each liquidation dossier comprises
two sets of tables and forms to be submitted, enclosed with originals of
customs declarations (kept by goods owners) to be produced, including:
- The sum-up table of imported
raw materials (form 01/HQ-GC), enclosed with import declarations (including
on-spot import declarations; declarations of reception of intermediary
processed products; declarations of reception of raw materials transferred from
other processing contracts), or single import declarations if the mode of
registration of single declarations is applied.
- The sum-up table of export
processed products (form 02/HQ-GC), enclosed with export declarations of
products (including on-spot export declarations; declarations of delivery of
intermediary processed products; declarations of transfer of raw materials to
other processing contracts in the course of performance of processing
contracts), or single export declarations if the mode of registration of single
declarations is applied.
- The sum-up table of
temporarily imported machinery and equipment (form 03/HQ-GC), enclosed with
temporary import declarations of borrowed machinery and equipment; declarations
of reception of machinery and equipment from other processing contracts (if
any).
- The sum-up table of raw
materials supplied by the processor (if any) (form 04/HQ-GC), enclosed with
declared lists of supplied raw materials upon the export of products and
purchase invoices or import declarations (if they are supplied from imported
sources).
- The sum-up table of raw
materials used for the production of export products (form 05/HQ-GC).
- The written liquidation of
processing contract (form 06/HQ-GC).
Directors of enterprises shall
give their signatures and affix seals (heads of individual business households
shall give their signatures and inscribe their full names, as well as serial
numbers and places of issuance of their identity cards) in tables and forms
prescribed above and take responsibility before law for liquidation dossiers
submitted to the customs offices.
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- Check the completeness and
validity of liquidation dossiers;
- Compare serial numbers and
dates of declarations listed by goods owners in liquidation dossiers with those
listed by customs offices in tables 08/HQ-GC and 09/HQ-GC.
- Check and compare figures in
declarations with figures declared by enterprises in liquidation dossiers.
- Check and compare other
figures in the dossiers (for computerized liquidation of processed products,
comparison shall be made between liquidation forms printed from computers with
those submitted by enterprises).
- Certify checking and
comparison results in the written liquidations of processing contracts (form
06/HQ-GC) and return to enterprises the already produced declarations.
- If detecting frauds in
liquidation dossiers, make written records on such violations for handling
according to law provisions. If detecting signs of frauds related to norms or
other signs of frauds, report such to the heads of the sub-departments for transferring
them to the post-customs clearance inspection sections.
- The time for checking and
comparison shall comply with the provisions of Point 10, Part I of this
Regulation.
1.3. Handling of surplus raw
materials, discarded materials, defective products, borrowed machinery and
equipment (Step 3):
For processing contracts having
surplus raw materials, discarded materials, defective products, borrowed
machinery and equipment, the customs procedures shall be carried out according
to one of the following modes:
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1.3.1.1. The on-spot
export/import conditions shall comply with the provisions of the Government's
Decree No. 44/2001/ND-CP of August 2, 2001 and the Trade Ministry's guidance in
Circular No. 20/2001/TT-BTM of August 17, 2001.
1.3.1.2. Customs procedures:
- Customs procedures shall
comply with the provisions of Point 2.1, Section V above (in cases where the
importing enterprises are concurrently the processors, only one copy of a
customs declaration kept by goods owner and another copy kept by customs office
are required).
For a processing contract split
into many annexes for execution, box 43 of declaration form HQ/2002-TC shall be
inscribed with the serial number and date of the annex having on-spot export
goods.
- After completing the customs
procedures, the customs sub-departments carrying out the on-spot export
procedures shall photocopy declarations and keep such photocopies together with
the dossiers of processing contracts according to current regulations; and
return declarations (versions kept by goods owners) and the produced vouchers
to enterprises.
- On-spot importing enterprises
must pay taxes according to the provisions of the current tax laws as for goods
imported from foreign countries.
1.3.2. Re-export to foreign
countries: The customs procedures shall be carried out as for other re-export
goods lots. Goods inspectors must compare re-exported raw materials with the
kept raw material samples taken upon their import.
1.3.3. Transfer to other
processing contracts as designated by processees:
- The procedures for
transferring surplus raw materials, machinery and equipment to other processing
contracts for further use shall comply with the provisions of Section VI above.
The receiver's customs office shall compare the kept raw material samples taken
upon their import with the transferred raw materials, and if they match, take
new samples for contracts receiving raw materials (for raw materials requiring
sampling, enterprises must not use them before the customs offices make the
comparison of samples).
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- If both processing contracts
are managed by the same customs sub-department, such customs sub-department
shall perform the tasks of both deliverer's customs office and the receiver's
customs office.
- These procedures shall also
apply to cases of transferring raw materials, borrowed machinery and equipment
according to the processees' designations when delivery processing contracts
are being performed, and to cases of different processees.
1.3.4. Donation:
1.3.4.1. The customs dossier
shall comprise:
- Customs declaration form
(non-commercial goods declaration form), clearly stating "goods are under
processing contract No.... date.... processing enterprise...."
- The processee's written pledge
of donation.
- The Trade Ministry's written
consent if donated goods are on the list of goods banned from import,
temporarily suspended from import or requiring the Trade Ministry's permits;
the specialized agencies' permits if import goods require such permits.
1.3.4.2. The customs procedures
and tax policy shall comply with regulations on donated goods. After completing
procedures for a goods lot, the customs office shall duplicate the declaration
and hand the duplicate to the processing enterprise (if the donee is not the
processor), keep one photocopy of the declaration in the processing contract,
and keep the declaration original (the version kept by customs) according to
regulations, and return to the donee the declaration original (the version kept
by goods owner).
1.3.5. Destruction of discarded
materials and defective products if processees request the destruction thereof
in Vietnam:
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1.3.5.2. Before conducting the
destruction, enterprises must ask for the Trade Ministry's permission if the
discard materials and defective products to be destroyed are on the list of
goods banned from import or goods imported with permits; and asks for
permission of the environmental management agency if the destruction of
discarded materials and defective products affects the environment. If the
Trade Ministry or the environmental management agency does not permit the
destruction thereof in Vietnam, enterprises must re-export them to the
processees.
1.3.5.3. The customs procedures
for supervising the destruction shall be as follows:
- Enterprises shall send to
customs sub-departments managing processing contracts written notices of
destruction time and place, enclosed with written agreements of processees and
written approvals of the Trade Ministry (for cases where destruction requires
the Trade Ministry's permission).
- The customs sub-departments
managing processing contracts shall send two customs officers to supervise the
destruction process.
- Enterprises shall organize by
themselves the destruction and be answerable to the environmental management
agency for the impact of the whole destruction process on the environment.
- Upon the completion of the
destruction, the involved parties must make written records certifying the
destruction in compliance with regulations. Such written records must be signed
by directors and affixed with seals of enterprises having their materials or
products destroyed; and contain full names and signatures of customs officers
supervising the destruction and persons assigned by enterprises' directors to
conduct the destruction.
1.4. Certification of completion
of liquidation procedures (Step 4):
- After enterprises complete the
above-prescribed step 3, the customs offices shall give certification of
completion of liquidation procedures in both liquidation forms of processing
contracts (form No. 06/HQ-GC). Certification must clearly state: surplus raw
materials; borrowed machinery and equipment (if any) already transferred to
which processing contracts/annexes thereof and under which declarations; or
re-exported, domestically consumed or donated under which declarations;
discarded materials and defective products already domestically consumed,
donated or re-exported under which declarations or destroyed under which
written records. Then, they shall affix stamps certifying the completion of
liquidation procedures (stamp model No. 05 in the Appendix promulgated together
with Decision No. 1200/2001/QD-TCHQ of November 23, 2001).
- They shall return one
liquidation dossier set to enterprises and keep the other set.
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At customs sub-departments where
the liquidation is currently conducted by the manual method, enterprises shall
be classified. Enterprises falling into the subjects mentioned at Point 9.1.2,
Part 1 of this Regulation and having gone through liquidation without any
faults shall proceed with step 3 and step 4 right after completing step 1.
Within 30 days after enterprises
submit complete liquidation dossiers as prescribed, liquidation sections of
customs offices shall have to complete step 2 in liquidation dossiers kept at
customs offices. If detecting violations, they shall make written records
thereon and handle them according to law provisions.
3. Handling of cases where
enterprises have been dissolved or ceased operation but still have unliquidated
processing contracts:
3.1. For enterprises which have
strictly complied with the regulations on procedures for dissolution but still
have raw materials or machinery and equipment rented or borrowed for processing
but not yet re-exported:
3.1.1. Customs sub-departments
managing processing contracts shall regularly contact local tax departments and
business registration agencies, use press channel and apply other measures to
update information on dissolved enterprises.
3.1.2. They shall calculate
taxes on surplus raw materials, rented and borrowed machinery and equipment
(not on the list of goods banned from import) not yet re-exported for
collection of tax arrears according to the provisions of the Finance Ministry's
Circular No. 66/2002/TT-BTC of August 6, 2002 (if dissolved enterprises are
State enterprises), the Government's Decree No. 24/2000/ND-CP of July 31, 2000
(if dissolved enterprises are foreign-invested enterprises), Article 112 of the
Enterprise Law for other dissolved enterprises and Article 46 of the
Cooperative Law for dissolution of cooperatives.
3.1.3. If enterprises
undertaking to process banned goods fail to fully export them, they may request
the liquidation boards or liquidation teams to do so. Where enterprises consume
such goods without permission, they shall be handled according to the
provisions of Point 3.2 below.
3.2. For enterprises dissolving
themselves but failing to strictly comply with law provisions on the order and
procedures for enterprise dissolution (without notices on enterprise
dissolution, without dissolution decisions, etc.) and still having surplus raw
materials and rented or borrowed machinery and equipment:
Depending on the nature and
seriousness of their violations, persons committing violation acts shall be
disciplined, administratively sanctioned or examined for penal liability
according to law provisions.
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3.3. If the above-said
enterprises still have unliquidated processing contracts though in fact they
have fully re-exported processed products, the customs sub-departments managing
the processing contracts shall base themselves on the dossiers they keep to
make the liquidation by themselves and take responsibility for such
liquidation's figures.
Part 3
CUSTOMS PROCEDURES FOR
ORDERING GOODS PROCESSING OVERSEAS
I.
PROCEDURES FOR RECEIVING PROCESSING CONTRACTS:
1. Responsibilities of
enterprises:
Before filling in the procedures
for exporting the first goods lot of a processing contract, enterprises shall have
to submit and produce dossiers to customs offices for carrying out the
procedures for receiving contracts.
Dossiers to be submitted and
produced include:
- The processing contract and
enclosed annexes (if any): two originals;
- The business registration
certificate or investment license: one photocopy;
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- The permit of the Trade
Ministry or the competent State agency (if the goods exported for performance
of processing contracts and imported processed products are on the list of
goods banned from export or import; temporarily suspended from export or
import; exported or imported with permits of the Trade Ministry or specialized
management agencies): one photocopy to be submitted, the original to be
produced.
- The specialized management
ministry's written certification that the processing stage ordered overseas
cannot be performed in Vietnam or has been performed in Vietnam but with
quality not up to the requirements: one photocopy to be submitted, the original
to be produced.
2. Tasks of customs officers
receiving processing contracts shall comply with Section I, Part 2 of this
Regulation.
II.
PROCEDURES FOR EXPORTING RAW MATERIALS:
1. Customs dossiers shall be the
same as dossiers of export lots of processed products, but permits of competent
agencies (if exported raw materials are on the list of goods banned from
export, temporarily suspended from export or exported with permit of the Trade
Ministry or the specialized management agency) must be additionally produced
for reconciliation by customs offices.
2. The customs procedures shall
comply with the procedural process for export of processed products, prescribed
at Point 2, Section IV, Part 2 of this Regulation, only with taking of samples
of raw materials instead of comparison of samples in the goods inspection.
III.
PROCEDURES FOR IMPORTING PROCESSED PRODUCTS:
1. Customs dossiers shall be the
same as dossiers for mode of import for trading purpose, with customs
declarations registered according to the mode of import for processing.
2. The customs procedures shall
comply with the procedural process for goods imported under purchase and sale
contracts, prescribed in Decision No. 56/2003/QD-BTC of April 16, 2003.
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Upon actual goods inspection,
samples of raw materials taken upon their export must be compared with raw
materials constituting the products.
3. Tax policy shall comply with
the regulations on taxes on products processed overseas.
IV.
PROCEDURES FOR LIQUIDATING PROCESSING CONTRACTS:
Step 1: Enterprises
submit liquidation dossiers, comprising:
- The sum-up list of export raw
materials (two originals) enclosed with export declarations;
- The sum-up list of imported
products (two originals) enclosed with import declarations;
- The sum-up list of raw
materials used for production of imported processed products: two originals;
- The sum-up list of raw
materials purchased overseas for production of imported processed products: two
originals;
- The written liquidation of the
processing contract: two originals.
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This step shall be conducted as
for processing for foreign countries.
Step 3: Calculation of
export tax on processed products sold overseas and handling of surplus raw
materials, machinery and equipment temporarily exported in service of
processing. The handling of surplus raw materials and temporarily exported
machinery and equipment shall be conducted as follows:
1. Re-import into Vietnam:
- For re-import into Vietnam of
raw materials, machinery and equipment previous exported to foreign countries
in service of processing, the procedural steps shall be carried out as for
re-imported goods.
- For raw materials, machinery
and equipment purchased overseas, the procedures shall be carried out as for
goods imported under purchase and sale contracts.
2. Sale in foreign countries:
For raw materials, machinery and equipment exported from Vietnam to foreign
countries in service of processing and sold overseas, export tax shall be
collected.
Step 4: Certification of
completion of liquidation procedures:
This step shall be carried out
as for completion of procedures for liquidating contracts on processing for
foreign traders.
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FOR FINANCE
MINISTER
VICE MINISTER
Truong Chi Trung