Circular No. 08/2010/TT-BTC guiding the implementation of Decision No. 93/2009/QD-TTg dated July 10, 2009 of the Prime Minister amending and supplementing Clause 4, Article 21 of Decision No. 33/2009/QD-TTg dated March 2, 2009 of the Prime Minister on financial mechanisms and policies for border economic zones.

CIRCULAR

Guidelines for implementing Decision No. 93/2009/QD-TTg dated July 10, 2009 of the Prime Minister amending and supplementing Clause 4, Article 21 of Decision No. 33/2009/QD-TTg dated March 2, 2009 of the Prime Minister promulgating financial mechanisms and policies for border economic zones

The Prime Minister amends and supplements Clause 4 of Article 21 of Decision No.

33/2009/QD-TTg dated March 2, 2009, promulgating the financial mechanism and policies for border economic zones

and the guidance provided in this Circular.

___________________

Pursuant to Decree No. 29/2008/ND-CP dated March 14, 2008 of the Government on industrial zones, export processing zones, and economic zones;

Pursuant to the Decree No. 118/2008/NĐ-CP dated November 27, 2008 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;

Pursuant to Decision No. 93/2009/QD-TTg dated July 10, 2009 of the Prime Minister amending and supplementing Clause 4, Article 21 of Decision No. 33/2009/QD-TTg dated March 2, 2009 of the Prime Minister promulgating financial mechanisms and policies for border economic zones;

After receiving the unified opinions of relevant ministries, sectors, and localities, the Ministry of Finance provides guidelines for implementing Decision No. 93/2009/QD-TTg dated July 10, 2009 of the Prime Minister as follows:

Article 1. Policy on tax-free sales to tourists visiting duty-free areas within border economic zones:

1. Implement tax-free sales to tourists visiting duty-free areas within border economic zones until December 31, 2012, in accordance with the regulations stipulated in the Prime Minister's Decisions on the operational rules of each border economic zone and the guiding documents of the Ministry of Finance, whereby tourists visiting duty-free areas within border economic zones may purchase imported goods tax-free for personal use up to a value of VND 500,000 per person per day (excluding the value of goods subject to restricted tax-free sales as specified in Article 2 of this Circular); in cases where the value of goods exceeds VND 500,000, the person carrying the goods must pay import duties, value-added tax, and special consumption taxes (if applicable) on the excess amount according to current laws.

2. Tax-free sales policy for tourists visiting duty-free areas within certain border economic zones:

a) Border economic zones include: International Border Economic Zone Bo Y (Kon Tum Province), Border Economic Zone An Giang Province, Border Economic Zone Mo Cay (Tay Ninh Province), Border Economic Zone Lao Cai (Lao Cai Province), Border Economic Zone Adot (Thua Thien Hue Province), Border Economic Zone Dong Dang - Lang Son (Lang Son Province), Border Economic Zone Dong Thap Province shall uniformly implement the provisions of Clause 1 of this Article.

b) For special economic zones and border economic zones with specific conditions different from other border economic zones, they shall implement the provisions stipulated in specific Decisions of the Prime Minister and the guidance provided in this Circular. The Prime Minister and the guidance provided in this Circular.

3. Tourists purchasing goods at duty-free areas within the aforementioned border economic zones who bring them into the domestic market must go through customs procedures and declare payment of taxes on the excess value exceeding the tax-free limit as prescribed in Clause 7, Article 44 of Circular No. 79/2009/TT-BTC dated April 20, 2009 of the Ministry of Finance guiding customs procedures; customs inspection and supervision; export duties, import duties, and tax management for exported and imported goods.

Article 2. List of goods subject to restricted tax-free sales:

1. The list of goods subject to restricted tax-free sales for tourists visiting duty-free areas within border economic zones includes:

- All types of cigarette tobacco.

- All types of beer.

- All types of alcohol.

2. The implementation of tax-free sales for the above restricted goods shall be carried out specifically as follows:

a) Not sold to individuals under 18 years old.

b) For individuals aged 18 and over, tax-free sales shall be limited to a maximum of VND 500,000 per person per month.

Article 3. Responsibilities of Provincial People's Committees where there are border economic zones:

Provincial People's Committees where there are border economic zones shall have the responsibility to:

1. Based on referring to the Regulations on Duty-Free Sales Operations issued together with Decision No. 24/2009/QD-TTg dated February 17, 2009 of the Prime Minister and the guidance provided in Circular No. 120/2009/TT-BTC dated June 16, 2009 of the Ministry of Finance, Provincial People's Committees where there are border economic zones shall develop and promulgate Regulations on duty-free purchases and sales in duty-free areas within border economic zones on their territory, serving management purposes and preventing the abuse of preferential policies for smuggling and tax evasion, illegal business activities. The Regulations need to ensure the following contents and principles: a) Clearly define the tourist customers eligible to enjoy tax-free purchase policies.

b) Conduct duty-free sales accurately to the designated customers (each tourist customer can only make a tax-free purchase based on one identification card of the purchaser, not using another person's identification card to purchase goods, and not conducting duty-free sales through proxy arrangements), within the prescribed limits.

c) Strictly follow the List and restrictions on duty-free sales as specified in Article 2 of this Circular.

2. Develop and organize the coordination of functional forces to implement measures to prevent and handle violations related to illegal business activities and the abuse of policies for smuggling and tax evasion; Direct relevant agencies on the territory (Border Economic Zone Management Board, police, border guard, market administration, taxation, customs, finance) to strengthen cooperation to implement inspection and control measures to combat smuggling and commercial fraud in border economic zones.

Responsibilities of Customs Authorities and Tax Authorities:

Article 4. 1. Customs authorities in the area of border economic zones shall have the responsibility to:

a) Carry out tasks of inspecting and supervising goods and transport vehicles, preventing smuggling, and illegal cross-border transportation of goods.

b) Organize the implementation of tax and customs laws for exported and imported goods in accordance with regulations.

c) Establish appropriate customs stations suitable to the geographical features and conditions of each border economic zone to effectively perform assigned tasks.

c) Establish customs stations appropriate to the geographical features and conditions of each border economic zone to effectively perform assigned tasks.

d) Bi-annually and annually prepare reports on the situation of duty-free sales to tourists for submission to the Ministry of Finance for monitoring. In cases where duty-free goods experience unusual fluctuations (in terms of import quantities, purchases, sales for domestic consumption), timely report them to take appropriate measures.

đ) Strengthen coordination with relevant competent agencies to prevent and handle fraudulent activities and abuse of policies for illegal business operations.

2. Responsibilities of the Tax Authority:

a) Carry out pre-refund inspection procedures for goods and services brought into the duty-free zone within the border economic zone in accordance with Circulars No. 137/2009/TT-BTC dated July 3, 2009, and No. 60/2007/TT-BTC dated June 14, 2007, issued by the Ministry of Finance.

b) Coordinate with customs authorities in the border economic zone to monitor and report the situation of duty-free sales in the duty-free zone within the border economic zone; coordinate with relevant competent agencies to prevent and handle fraudulent activities and abuse of policies for illegal business operations.

Article 5. Responsibilities of businesses engaged in duty-free sales in the duty-free zone within the border economic zone:

1. Conduct duty-free sales in compliance with legal regulations and the duty-free purchase-sale rules issued by the People's Committee of the province.

2. Based on actual conditions and local circumstances, duty-free sales businesses implement computer systems connected to customs authorities to streamline administrative procedures and facilitate management of duty-free sales activities as prescribed.

3. Regularly prepare monthly sales reports for submission to customs authorities for inspection, monitoring, and management purposes.

Article 6. Effective Date:

1. This Circular takes effect 45 days from the date of signature.

2. Repeal Point 1.5 Clause 1 Section II of Circular No. 162/2007/TT-BTC dated December 31, 2007, and Circular No. 8153/BTC-PC dated July 14, 2008, issued by the Ministry of Finance.

3. During implementation, if any difficulties arise, organizations and individuals involved are requested to promptly reflect them to the Ministry of Finance for necessary amendments and supplements to ensure appropriateness./.