JOINT CIRCULAR No. 121/1998/TTLT/BTC-BTM-BCA-TCHQ ON STICKING LABELS TO IMPORTED GOODS

JOINT CIRCULAR OF THE MINISTRIES OF FINANCE - TRADE - PUBLIC SECURITY AND THE GENERAL DEPARTMENT OF CUSTOMS

Pursuant to Directive No. 853/1997-CT-TTg dated October 11, 1997 of the Prime Minister on combating smuggling under new circumstances;

Regarding the affixing of import labels on imported goods

Pursuant to the conclusion of the Prime Minister stated in Official Letter No. 131/TB-VPCP dated July 29, 1998 of the Government Office.

The Ministries of Finance, Trade, Public Security, and the General Department of Customs hereby guide the affixing of import labels on two types of imported goods: ceramic tiles and electric water pumps as follows:

As of 8:00 AM on September 15, 1998, all products listed below that are produced outside Vietnam and imported or circulated in the market, including those in storage, on display for sale, or in transit, must be affixed with import labels in accordance with the regulations:

A. GOODS REQUIRED TO BE AFFIXED WITH IMPORT LABELS

Ceramic tiles of all kinds in original packaging, including wall tiles and floor tiles.

Electric water pumps of all kinds.

For imported ceramic tiles and electric water pumps purchased by organizations and individuals for installation or construction projects but not yet used, they must also be affixed with import labels.

1.1. For the products specified in point 1 from September 15, 1998, when importing, customs authorities shall affix the labels at the place where goods are inspected and must complete the labeling before completing customs procedures. Organizations and individuals engaged in importing must create favorable conditions for customs authorities to carry out labeling procedures smoothly, quickly, and safely in accordance with this Circular.

1.2. Organizations and individuals engaged in the business of the products specified in point 1 above (including promotional items and lottery prizes) that remain unsold, as well as other organizations and individuals who have purchased such products for installation or construction but have not yet used them, must inventory and declare (in the prescribed form) to the Market Management Authority for verification and confirmation, and the Tax Authority to affix import labels according to regulations.

For imported ceramic tiles remaining in stock, if removed from their packaging, the quantity removed must be declared.

Declarations for remaining imported goods must be affixed with labels issued by the Tax Authority. Businesses dealing with these products must collect the declarations directly from the managing Tax Authority or at the designated declaration submission location as stipulated below. The Tax Authority is responsible for printing and distributing sufficient declarations to businesses.

a. Issuance of declaration forms:

- State-owned enterprises and foreign-invested enterprises submit declarations to the Provincial Tax Bureau.

b. Submission locations:

Limited Liability Companies, private enterprises, Joint Stock Companies, and Cooperatives submit declarations to the District Tax Branch.

Individual traders submit declarations to the People's Committee of the commune, ward, or town.

Tax Authorities and Market Management Authorities will assign staff to be present at these locations to distribute and receive declarations promptly. Each declaration consists of three copies: one copy returned to the declarant, one copy submitted to the Tax Authority, and one copy submitted to the Market Management Authority. To prevent abuse, when receiving declarations, Market Management Authority staff must check the contents and sign to confirm the declaration.

c. Declaration deadline: Starting from 8:00 AM on September 15, 1998, and ending no later than 4:00 PM on September 19, 1998. After the declaration deadline, the Market Management Authority and Tax Authority must prepare a record confirming the number of declarations received from businesses.

d. Labeling deadline: Starting from September 15, 1998, and ending at 4:00 PM on September 24, 1998. During this period, the Market Management Authority will arrange staff to conduct inspections to verify the actual quantities against the declared quantities, check invoices and valid documents accompanying the declared goods to facilitate the Tax Authority's labeling process quickly, smoothly, and within the specified timeframe.

e. The Market Management Authority will inspect invoices and documents proving the legitimate origin of the declared goods, sign to confirm the actual goods for the Tax Authority to label. Invoices and documents proving the legitimate origin of the declared goods must comply with Section B Part II of Circular No. 73 TC/TCT dated October 20, 1997 of the Ministry of Finance guiding the invoice and document system for goods circulating in the market, and Joint Circular No. 10/1998/TTLB-BTM-BTC-BCA-TCHQ dated July 22, 1998 of the Ministries guiding the inspection, control, and handling of imported fabrics and ceramic tiles circulating in the market. Businesses must provide invoices and documents upon request of the Market Management Authority and Tax Authority.

1.3. Imported goods subject to confiscation must be labeled before being sold. The authority issuing the confiscation decision must notify the Tax Authority about the confiscated goods to be labeled. For goods confiscated by the Customs Authority due to violations, the Customs Authority will directly affix the labels.

2.1. Organizations and individuals eligible for tax exemption on imports for personal use, if selling such goods, must declare to the Customs Authority to pay import taxes and affix labels before selling.

2.3. Goods transported in transit, temporarily imported for re-export, or handled by Customs for delivery from the first port of entry to an inland inspection site must be accompanied by the required documentation as per Customs regulations, and the goods must be sealed with lead seals or escorted by Customs officers when necessary.

3. To distinguish domestically produced goods from imported goods, organizations and individuals permitted to import raw materials, components, parts, and accessories for production and assembly of finished products for domestic consumption must publicly announce the registered brand name of the product to the competent state agency, and simultaneously announce it through mass media and at sales points or retail outlets so that inspection and supervision forces and the public can be aware to avoid misuse.

2. Imported goods specified in Point 1 do not need to be affixed with labels in the following cases:

2.1. Organizations and individuals importing goods that are exempted from import tax for personal use shall declare to the Customs authority to pay the import tax if they sell such goods and must affix a stamp before selling them.

2.2. Sold at duty-free shops.

2.3. Goods transported in transit, temporarily imported for re-export, or escorted by customs officers from the first port of entry to an out-of-port inspection location must be accompanied by documentation as prescribed by the Customs authority, and the goods must be sealed with lead seals or accompanied by a customs officer when necessary.

2.4. Goods imported into bonded warehouses or export processing zones.

3. To distinguish domestically produced goods from imported goods, organizations and individuals permitted to import raw materials, components, spare parts, and accessories for manufacturing finished products for domestic consumption must publicly announce the registered product trademark to the competent state authorities, and simultaneously announce on mass media and at sales locations or retail outlets so that supervisory forces and the public are aware to prevent abuse.

B. IMPORT LABELS AND AFFIXING

1. Regulations on affixing labels:

Goods specified in Point 1 of Section A are required to be affixed with labels as follows:

1.1. Ceramic tiles: Only affix labels to ceramic tiles that are still in their original packaging (box, carton). Each box or carton of tiles shall be affixed with one import construction material label and one inspection label on top of the packaging. The position for affixing the import construction material label shall cross the junction point between two edges of the packaging at the upper right side. The position for affixing the inspection label shall cross the junction point between two edges of the packaging at the upper left side.

1.2. Water pumps: Each water pump shall be affixed with one label. The position for affixing the label shall be on the front part of the pump head. In cases where the pump head is too small or not visible externally, the label shall be affixed to the edge of the pump's nameplate.

2. Issuance and management of labels:

2.1. Import goods labels and inspection labels are uniformly issued by the Ministry of Finance. The General Department of Taxation shall be responsible for printing, distributing sufficiently and promptly to localities and customs authorities to organize the affixing of labels in accordance with regulations.

Any act of printing, issuing, and selling counterfeit labels, or using counterfeit labels shall be subject to legal sanctions.

2.2. Import goods labels and inspection labels shall be managed and used in accordance with Decision No. 529 TC/TCT dated December 22, 1992 on the management system of tax stamps and Decision No. 1124/1998/QĐ-BTC dated September 1, 1998 on the issuance of labels and the printing, management, and use of import goods labels by the Ministry of Finance.

It is strictly prohibited to hand over stamps to organizations and individuals engaged in business for self-affixing.

2.3. When affixing import goods labels and inspection labels, businesses and individuals do not have to pay any labeling costs.

C. VIOLATION HANDLING AND REWARD:

1. Violation handling:

1.1. Organizations and individuals engaged in the sale of goods specified for stamping who declare inaccurately shall be handled as follows:

If declared quantities are lower than actual stock, only labels corresponding to the declared quantity shall be affixed, and undeclared quantities will be subject to administrative penalties and confiscation of goods. In serious cases, criminal responsibility may be pursued.

If declared quantities exceed actual stock, only labels corresponding to the actual remaining stock shall be affixed, while administrative penalties shall also be imposed, the severity of which depends on the degree of violation.

To ensure normal business operations, organizations and individuals who have declared quantities may continue to buy and sell but must provide valid invoices and supporting documents to explain discrepancies from the declared quantities.

Organizations and individuals exploiting the policy of affixing import goods labels by declaring domestically produced or assembled goods as imports to obtain labels for fraudulent purposes shall be subject to administrative penalties and confiscation of goods. In serious cases, criminal responsibility may be pursued.

1.2. Businesses and individuals dealing with imported ceramic tiles that remove tiles from their packaging to evade the labeling policy shall be subject to administrative inspections, administrative fines, and confiscation of all removed tiles.

1.3. For remaining imported goods that have been declared but lack valid invoices and supporting documents proving legitimate origin, taxes on turnover and income during circulation shall be collected, along with a one-time fine equivalent to the turnover and income taxes during circulation. Labeling of these goods can only be carried out once the business entity has complied with the decision on handling. Failure to comply with the decision will result in administrative penalties and confiscation of goods.

Provincial and municipal tax bureaus shall base prices on market conditions and principles for calculating turnover and income taxes during circulation to determine uniform tax calculation prices within their jurisdictions.

1.4. From September 25, 1998, imported goods specified in point 1, Part A, circulating in the market including inventory, on display, and in transit without affixed labels as required shall be considered illegal imports and subject to administrative penalties and confiscation of goods. In serious cases, criminal responsibility may be pursued.

1.5. Businesses and individuals dealing with goods requiring labels if such goods are not labeled as required, labels are torn, damaged, covered with another layer of paper, or not directly affixed to the goods, or any other form of misuse to facilitate label recycling shall be subject to administrative inspections and confiscation of goods. In serious cases, criminal responsibility may be pursued.

Organizations and individuals violating the labeling requirements or assisting in the consumption and legitimization of imported goods specified in point 1, Section A shall be dealt with according to the law.

2. Reward:

Organizations and individuals discovering or assisting enforcement agencies in detecting and seizing imported goods that should be labeled but are not labeled or have counterfeit labels shall be rewarded according to current regulations.

3. Management of confiscated goods:

Authorities responsible for confiscating imported goods violating labeling requirements must manage and organize the sale of confiscated goods and use proceeds from sales in accordance with current government regulations and guidelines from the Ministry of Finance.

D. IMPLEMENTATION ORGANIZATION

1. The Ministry of Finance, the Ministry of Industry and Trade, the Ministry of Public Security, and the General Customs Department shall be responsible for directing subordinate organizations to implement this Circular correctly, promptly resolving any difficulties faced by ministries, sectors, localities, and business entities to effectively carry out labeling.

2. Chairmen of provincial and municipal People's Committees shall be responsible for directing relevant departments and levels in their localities to implement the policy of affixing labels on imported goods, inspecting and supervising the circulation of goods in the market in accordance with regulations.

3. The Ministry of Industry, the Ministry of Construction, and the Ministry of Science and Technology and Environment shall assist the Joint Ministries in implementation.

4. The Ministry of Industry and Trade (Market Management Department) shall lead coordination with relevant departments and levels to inspect and supervise the circulation of imported goods specified to be labeled in the domestic market.

5. The Ministry of Finance and the Ministry of Industry and Trade shall cooperate with central and local media agencies to intensify publicity on the policy of affixing labels on imported goods; guide and explain the contents of this Circular to enable business entities and individuals to understand and comply, and gain public support.

6. Labeling of ten types of imported goods including bottled alcohol, complete bicycles, various electric fans, television receivers, video players, refrigerators, air conditioners, internal combustion engines, porcelain toilets, and porcelain washbasins shall continue to be implemented in accordance with Joint Circular No. 77/1997/TTLT-BTC-BTM-BNV-TCHQ dated November 1, 1997, and Joint Circular No. 30/1998/TTLT-BTC-BTM-BNV-TCHQ dated March 16, 1998.

7. During the implementation process, relevant ministries and localities shall monitor and compile difficulties to promptly report to the Ministry of Finance and related ministries and sectors. Daily reports on the implementation results, urgent issues arising that need prompt resolution shall be reported to the steering committee's permanent office for affixing import seals for timely guidance.

This Circular takes effect from September 15, 1998.

SOCIALIST REPUBLIC OF VIETNAM

Independence - Freedom - Happiness

IMPORT DECLARATION FORM FOR GOODS REQUIRING AFFIXING OF SEALS STILL IN EFFECT UNTIL .../9/1998

Name of business entity (or individual):...

Address of headquarters or place of business:...

(Number of ceramic tiles removed...)

Confirmation by inspection officer regarding quantity

of actual remaining goods

Day... month 9 year 1998