JOINT CIRCULAR No. 07/1997/TTLT/BTM-BNV-BTC-TCHQ guiding the implementation of anti-smuggling measures pursuant to Government Resolution No. 85/CP and organizing coordination among anti-smuggling forces

JOINT CIRCULAR

Guidelines for implementing anti-smuggling activities pursuant to Resolution 85/CP-m of the Government and organizing coordination among anti-smuggling forces
Implementing Resolution 85/CP-m dated July 11, 1997 of the Government on anti-smuggling and Directive 5670/KTTH dated November 7, 1996 of the Prime Minister regarding the organization of coordination among anti-smuggling forces to prevent smuggled goods circulating domestically, the Ministry of Trade, Ministry of Finance, Ministry of Home Affairs, and General Department of Customs provide specific guidance on the following issues for relevant sectors and localities to implement:
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1. Ministries, agencies equivalent to ministries, government agencies, and People's Committees of provinces and centrally governed cities shall carry out anti-smuggling activities according to their assigned functions, tasks, and authorities in accordance with Decision No. 96-TTg dated February 18, 1995 of the Prime Minister promulgating the Regulation on "responsibilities and coordination relationships in market management and anti-smuggling activities between state management agencies."

I. GENERAL PROVISIONS:

2. Imported goods of organizations and individuals engaged in business circulation on the market, including goods displayed at stores, goods in warehouses, and goods being transported on the road, must have invoices and certificates proving legitimate importation. Imported goods must pass through designated customs checkpoints, declare, and complete all customs procedures. 3- The owners of means of transport, persons involved in transporting smuggled goods, and heads of related units will be dealt with according to current laws depending on the severity of the violation.

4. Competent agencies must strengthen inspection and supervision of anti-smuggling activities, emphasize the role and responsibility of officials, and combat all forms of negative behavior. Procedures for imported goods will only be processed when such goods have valid documents as prescribed by current regulations. Any organization or individual violating these regulations will be dealt with according to the law.

II. SOME SPECIFIC GUIDELINES ON INSPECTION AND VIOLATION HANDLING

1. Smuggled goods referred to in this circular include:

1.1- Goods prohibited from importation under current regulations.

1.2- Goods imported without passing through designated customs checkpoints and without declaring to customs.

1.3- Goods imported and displayed at stores, stored in warehouses, or being transported on the road without invoices and certificates proving legitimate importation or using invalid invoices and certificates as stipulated by the Ministry of Finance.

1.4- Goods that the State requires to be labeled with import labels but are not labeled.

2- Inspection targets and areas:

2.1- Imported goods of organizations and individuals engaged in business across all economic sectors showing signs of violations as specified in Part II, Point 1 of this Circular.

2.2- Transport vehicles suspected of carrying smuggled goods.

2.3- Focus areas include border regions, coastal areas, and concentrated consumption points of smuggled goods, commercial centers, and places storing or hiding smuggled goods.

3- Inspection and handling of violations:

3.1- From December 1, 1997, imported goods for sale without valid invoices and certificates as required will be confiscated and dealt with strictly according to the law.

3.2- Content of inspection:

Inspect compliance with business registration and business license regulations for organizations and individuals engaged in importing goods.

Inspect invoices and certificates of imported goods as stipulated in Part II, Point 1 above.

Inspect goods in transit suspected of smuggling and ensure compliance with current regulations, mainly at departure and arrival points.

For railway, air transport vehicles, and postal consignment carriers, if there is evidence that they are carrying smuggled goods, competent inspection agencies have the right to request specialized management agencies to cooperate in inspections.

3.3- Handling of violations:

When discovering violations, inspection forces must follow the prescribed procedures, penalties, and authority. It is strictly forbidden to use blank paper to record violations in all inspection forces.

In cases where multiple sectors conduct joint inspections, the agency responsible for leading the inspection team will issue the decision on handling. If exceeding its authority, it must report to a higher authority with jurisdiction for resolution. Before issuing a handling decision, there must be a consensus in writing and signatures from representatives of participating agencies.

When temporarily seizing evidence and means of transportation involved in violations, current laws must be followed.

The basis for administrative violations is administrative normative legal documents, while criminal violations are based on criminal normative legal documents.

Regarding means of transportation:

All means of transportation, including those owned by the State, if used to transport smuggled or prohibited goods, will be seized and dealt with according to the severity of the violation.

For owners of means of transportation belonging to state agencies, political-social organizations, and all economic sectors, if they intentionally use their means of transportation to transport smuggled goods, they will have their means of transportation confiscated (except in cases of unintentional use), business licenses revoked (if applicable), and be subject to administrative penalties or criminal prosecution depending on the severity of the violation.

Individuals directly operating means of transportation who intentionally transport smuggled goods will have their driving licenses confiscated and be subject to administrative penalties, or be required to compensate for the value of the confiscated means of transportation, and may face criminal prosecution if the offense is serious.

3.4- Handling of confiscated goods:

Confiscated smuggled goods are the property of the State and must be managed according to current laws.

Narcotics, fireworks, harmful cultural products, dangerous children's toys, goods hazardous to human health or the environment must be destroyed according to the law.

Weapons, military supplies, historical artifacts, medicines for humans and livestock, plant seedlings, rare wild animals and plants must be transferred to specialized management agencies for handling.

Other types of confiscated smuggled goods will be organized for disposal as follows:

Other types of smuggled goods subject to confiscation shall be disposed of as follows:

For goods subject to confiscation and permitted for sale on the market, the auction method shall be applied in accordance with the provisions of Decree No. 86/CP dated December 17, 1996 of the Government and Decision No. 100-TC/QLCS dated January 23, 1997 of the Ministry of Finance regarding the management and disposal of assets when there is a decision to transfer to the State Treasury and establish State ownership rights.

For confiscated foreign cigarettes illegally imported, they shall be handled as follows:

a) Continue to re-export them abroad as stipulated in Circular No. 410/KTTH dated January 24, 1996 of the Prime Minister.

b) Organize their domestic consumption according to Circular No. 4460/VI dated September 6, 1997 of the Prime Minister. The domestic consumption of confiscated foreign cigarettes must comply with the following regulations:

Based on the quantity of confiscated foreign cigarettes, the Departments of Commerce shall develop plans to submit to the People's Committees of provinces and centrally-administered cities for consideration and decision to assign the organization of sales to one to three state-owned stores in the locality that meet the business conditions prescribed by the Ministry of Commerce.

These stores may only accept and sell confiscated foreign cigarettes transferred by functional agencies responsible for inspection, supervision, and anti-smuggling activities, accompanied by the Decision assigning each consignment and must maintain accounting records and issue invoices in accordance with regulations.

When accepting confiscated foreign cigarettes transferred by competent authorities, the store must pay the transferring party through a temporary account at the National Treasury. Prices shall be determined by the Appraisal Committee and approved by the People's Committee of the province or centrally-administered city (the composition of this Committee shall be decided by the People's Committee of the province or centrally-administered city).

The Department of Commerce shall have strict management regulations and direct local Market Management Agencies to regularly monitor and inspect the operations of stores selling confiscated foreign cigarettes.

3.5- All proceeds from inspections, costs for inspection tasks, fines, proceeds from the sale of confiscated items, and rewards for participating forces and individuals shall be collected and remitted to the budget in accordance with the guidance documents of the Ministry of Finance.

The Finance sector is responsible for checking the distribution of rewards and remitting to the budget in accordance with current regulations.

III. ORGANIZATION OF COOPERATION BETWEEN FORCES:

A. CONTENT OF COOPERATION INCLUDES:

1- Developing plans and strategies to combat illegal imports.

2- Exchanging information on smuggling situations, illegal business activities, and market forecasts...

3- Organizing coordination in directing and implementing comprehensive administrative, economic measures, propaganda, and education.

B. TERRITORY

1- AT Along land borders and at sea:

1.1- The implementation of anti-smuggling activities at sea shall continue to be carried out in accordance with Directive No. 701-TTg dated October 28, 1995 of the Prime Minister.

1.2- The People's Committees of provinces and centrally-administered cities, especially border and coastal provinces, shall be responsible for comprehensive state management of anti-smuggling activities within their jurisdiction.

Strictly guiding all sectors, counties, and border and coastal communes to organize campaigns to mobilize the people to commit not to participate in smuggling and transporting contraband goods and tax evasion.

Strictly managing hired porters crossing the border.

Implementing household registration management regulations to prevent bad elements from operating in border areas.

Directing anti-smuggling forces to patrol through back roads, canals, and river mouths.

1.3- Customs forces shall take the lead in coordinating with Border Guard, Police, Market Management, and Navy forces in border provinces and along the coast to strengthen all measures to intercept and pursue smuggled goods entering inland. In necessary cases, organizing joint anti-smuggling forces led by Customs to strictly check export and import goods, properly handle customs procedures, and combat commercial fraud and other corrupt practices.

2- AT Domestic market:

Market Management forces shall take the lead in coordinating with Police, Tax, and when necessary, Customs to ensure compliance with laws in inspection and supervision activities to effectively perform the following tasks:

2.1- On the basis of registration and re-registration of businesses in accordance with the spirit of Directive No. 657/TTg dated September 13, 1996 of the Prime Minister, linking business registration with tax management. All business establishments must operate within the registered business scope and strictly implement accounting and invoice issuance regulations as prescribed by the Ministry of Finance.

2.2- Concentrating forces to closely monitor import businesses. Strengthening inspection, supervision, investigation, prosecution, and handling of individuals involved in smuggling, transporting, storing, and concealing illegal imports, prohibited goods, and imports without valid documentation. Initially focusing on certain imported products such as bicycles, electric fans, electronic goods, motorcycles, cars, construction materials, canned food, cigarette sticks, alcohol, old clothes.

2.3- Severely punishing smuggling activities. Criminal offenses must be handed over to legal authorities for criminal proceedings and not retained for administrative handling.

C. ASSIGNMENT OF RESPONSIBILITIES:

1- AT Central:

Each Ministry and General Administration shall appoint a leader to participate in direction and assign the following agencies to assist in advisory work and serve as liaison points between Ministries and General Administrations in cooperation:

Market Management Bureau - Ministry of Trade.

General Department of Taxation - Ministry of Finance.

Economic Investigation Division (C15) - General Public Security Department - Ministry of Interior.

Anti-Smuggling Investigation Division - General Customs Department.

Responsibilities of Ministries and General Administrations include:

1.1- Ministry of Trade

Summarizing the situation of combating illegal imports circulating in the market provided by Ministries, General Administrations, and localities, informing relevant Ministries and General Administrations, and reporting to the Government.

Proposing necessary policies and measures to combat illegal imports at different times, discussing and reaching consensus with relevant Ministries and General Administrations to propose to the Government and directing localities to implement.

Leading the coordination of inspections and urging localities in this work.

In cases where it is necessary to coordinate with relevant Ministries and General Departments to establish inter-ministerial inspection teams and request these Ministries and General Departments to provide personnel and means to promptly prevent, arrest, and handle smuggling and commercial fraud cases, especially large and complex cases involving multiple localities that individual localities cannot resolve on their own.

Monthly meetings between Ministries and General Departments shall be organized from the 5th to the 10th of each month to review experiences, draw lessons, and discuss measures for coordination and guidance in the subsequent period.

1.2- Ministry of Finance

Shall be responsible for issuing Circulars guiding the implementation of Resolution No. 85/CP dated July 11, 1997, and Decision No. 984-QD-TTg dated December 30, 1996, of the Government regarding the regulations on managing and using funds obtained from anti-smuggling activities, including rewards for individuals and groups with outstanding achievements in anti-smuggling efforts.

The General Department of Taxation shall direct its vertical agencies to cooperate with Market Management Enforcement Units to inspect and compel business establishments to maintain accounting books and issue invoices and supporting documents in accordance with regulations.

1.3- Ministry of Home Affairs

Direct the General Departments and Police at all levels:

To coordinate with market management forces and other inspection and control forces to prevent goods from illegally entering the domestic market through borders, and strictly deal with individuals obstructing public officials in the performance of their duties.

Focus on investigating and identifying major smuggling networks, particularly paying attention to goods that have significant negative impacts on national security and social order.

Participate together with other sectors in directing and guiding localities in combating smuggling.

1.4- General Customs Department

Shall take the lead in implementing the tasks recorded in Point 1.3, Section B, Part III of this Circular; direct local customs offices to coordinate with local authorities to organize the prevention of smuggling through borders in all forms.

2- AT Localities:

Provincial People's Committees bear overall responsibility for the situation of smuggling within their jurisdiction.

Organize effective coordination among market management, tax, police, and customs forces to inspect and control the circulation of smuggled goods within their territory. Each agency of these forces shall send one leader to participate in directing the implementation of the aforementioned regulations.

The Market Management Enforcement Unit serves as the permanent advisory body assisting the Provincial People's Committee in discussing plans and strategies to combat smuggling with relevant sectors and submitting them to the Provincial People's Committee for implementation.

When investigating smuggling networks and warehouses storing smuggled goods related to certain localities, closely coordinate with competent agencies in those localities.

Monthly inter-sectoral meetings shall be held to review experiences, discuss future work measures, compile the situation, report to the Provincial People's Committee and the Ministry of Trade (Market Management Enforcement Bureau) for consolidation and reporting to relevant ministries and the Government.

IV. IMPLEMENTATION

1- Ministries, agencies equivalent to ministries, and government agencies shall proactively inspect units under their management and strictly deal with organizations and individuals directly or indirectly involved in smuggling.

2- The Ministry of Trade shall take the lead in coordinating with the Ministry of Home Affairs, the Ministry of Finance, and the General Customs Department to organize cooperation with mass media outlets in disseminating the Government's policy on combating smuggling according to the spirit of the Government's Resolution and this Circular.

3- Provincial People's Committees shall launch campaigns to mobilize and educate the entire population down to wards and street associations, and traders to implement the State's policy on combating smuggling, creating a mass movement to participate in anti-smuggling efforts, not to assist smugglers, organize mailboxes to promptly provide information about organizations and individuals engaging in smuggling, harboring, selling smuggled goods, violations, and negative behaviors of officials in anti-smuggling work. Strictly handle smuggling cases occurring locally according to the law.

4- Provinces and centrally-administered cities shall monthly and quarterly compile the situation and results of anti-smuggling efforts in their locality and report to inter-ministerial bodies for consolidation and reporting to the Prime Minister.

5- This Circular shall take effect fifteen days after registration. Previous provisions contrary to this Circular are hereby abolished. Any difficulties encountered during implementation shall be reported promptly to higher-level management agencies for resolution./.