Joint Circular No. 12-TTLB/TN-HQ stipulates the organization and business operations of duty-free shops at international seaports and airports.

 JOINT CIRCULAR

OF THE MINISTRY OF TRADE AND CUSTOMS DEPARTMENT DECREE NO. 12-TT/LB/TN-HQ OF NOVEMBER 13, 1990 ON THE ORGANIZATION AND BUSINESS OPERATIONS OF DUTY-FREE SHOPS AT INTERNATIONAL SEAPORTS AND AIRPORTS

Pursuant to the State's regulations on import and export management, to bring the business operations of duty-free shops at ports and international airports into order and unify the activities of this type of foreign currency sales business nationwide.
The Ministry of Trade and General Customs Department stipulate the principles regarding the organization and business operations of the aforementioned shops as follows:

1. At international ports and airports with large volumes of ships, aircraft, and outbound passengers, foreign currency sales shops may be organized. Such shops may only operate after obtaining a business license from the Ministry of Trade.

For the time being, the Ministry of Trade will only consider issuing business licenses for shops at Noi Bai Airport, Tan Son Nhat Airport, Hai Phong Port, Da Nang Port, and Sai Gon Port. Each port or airport mentioned above shall only organize one single foreign currency sales shop.

2.

a) The location and dedicated warehouse for foreign currency sales shops at international ports must be located within the customs-controlled area at the international port.

b) The location of foreign currency sales shops at international airports must be situated in the airport's isolation room (waiting lounge, departure hall) and the dedicated warehouse for these shops must be located within the customs-controlled area at the international airport.

The locations of the shops and warehouses must be approved by the customs authority.

3. Shops may only sell goods to the following categories of outbound individuals:

a) Officers, crew members, pilots, and service staff on foreign ships and aircraft.

b) Outbound passengers traveling by ship or aircraft through international ports and airports.

c) Officers, crew members, pilots, and service staff on Vietnamese ships operating overseas and Vietnamese aircraft on international routes who have completed their outbound procedures and wish to purchase items to take abroad, according to the standard regulations.

d) Foreign nationals working or traveling in Vietnam, overseas Vietnamese visiting their homeland, who request and purchase items to take out of Vietnam.

4.

a) Goods imported for sale at the shops are considered temporary imports for re-export and enjoy tax exemptions similar to those for temporary imports under the Export Tax Law and Import Tax Law for trade goods.

b) Goods purchased by the aforementioned individuals from these shops may not be brought into domestic consumption in Vietnam.

c) If goods from the aforementioned shops remain unsold for a long period and need to be sold domestically, they must obtain permission from the Ministry of Trade and complete customs procedures, paying the import duties for trade goods as prescribed by law.

Specifically, goods prohibited from importation by the state may not be consumed domestically but must be re-exported to a third country.

d) Domestic goods including domestically produced goods and goods from other countries already imported into Vietnam sold at these shops must complete customs procedures and pay export duties for trade or non-trade goods before importing them.

e) The entity responsible must settle each consignment of imported goods sold with the Ministry of Finance.

5. Shops must implement the import of goods and sales from domestic sources according to the annual plan approved by the Ministry of Trade and adjusted once mid-year. For goods subject to quota management, they must obtain export quotas from the Ministry of Trade. Imported goods must have import permits issued by the Ministry of Trade.

6. Goods must be sold strictly to the designated categories as specified in Article 3, and invoices must be retained at the shops.

7.

a) Imported goods and exported goods from the aforementioned shops that have completed customs procedures but have not yet been exported are subject to customs inspection and supervision. Goods left in the dedicated warehouse must comply with customs sealing procedures.

b) The General Customs Department will establish management and supervision systems for the dedicated warehouses containing goods as specified in Article 7, Clause a above, and customs inspection and supervision procedures for goods sold by the aforementioned shops to the designated outbound individuals as specified in Article 3 of this Circular for provincial customs authorities to implement uniformly.

8. Shops must fully comply with the State Bank's regulations on foreign exchange management, corporate tax, income tax, and national accounting and statistics laws.

9. Shops must report their operations to the supervising authorities and the Ministry of Trade, Ministry of Finance, and General Customs Department every three months, six months, and annually, following the guidelines of the Ministry of Trade.

10. Any violation of the provisions of this Circular will be handled according to current regulations based on the nature and severity of the violation by relevant state management agencies.

11. Departments and units under the Ministry of Trade and General Customs Department, direct management authorities of the shops, and duty-free shops at international ports and airports are responsible for implementing this Circular.

12. This Circular takes effect from November 15, 1990.