Joint Circular No. 121/1998/TTLT-BTC-BTM-BCA-TCHQ on affixing labels to imported goods

JOINT CIRCULAR

JOINT CIRCULAR NO. 121/1998/TTLT-BTC-BTM-BCA-TCHQ OF SEPTEMBER 1, 1998 ISSUED BY THE MINISTRIES OF FINANCE, TRADE, PUBLIC SECURITY AND THE GENERAL DEPARTMENT OF CUSTOMS ON STICKING IMPORT STAMPS ON IMPORTED GOODS

Pursuant to Directive No. 853/1997/CT-TTg dated October 11, 1997 of the Prime Minister on combating smuggling under new circumstances;
Pursuant to the conclusion of the Prime Minister as stated in Circular No. 131/TB-VPCP dated July 29, 1998 of the Government Office.
The Joint Ministries of Finance, Trade, Public Security, and the General Department of Customs provide guidance on sticking stamps on two types of imported goods: ceramic tiles and electric water pumps as follows:

A. GOODS REQUIRED TO BE AFFIXED WITH IMPORT LABELS

1. As of 8:00 AM on September 15, 1998, all products listed below that are produced outside Vietnam and imported or circulating in the market, including those in warehouses, on display, or in transit, must be affixed with import stamps in accordance with the regulations:

- All types of ceramic tiles in original packaging, including wall tiles and floor tiles.

- All types of electric water pumps.

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

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

1.2. Organizations and individuals trading in the items specified in Point 1 (including promotional goods and lottery prizes) that remain unsold, as well as other organizations and individuals purchasing such items for installation or construction but not yet used, must inventory and declare (in the prescribed form) to the Market Management Authority for verification and confirmation, and the Tax Authority to affix import stamps according to regulations.

Specifically, for imported ceramic tiles remaining unsold, if removed from their packaging, the quantity removed must be declared.

a. Issuance of declaration forms:

The declaration forms for unsold imported goods must be stamped by the Tax Authority. Trading entities must collect the declaration forms directly from the Tax Authority managing them or at the designated submission location as specified below. The Tax Authority is responsible for printing and distributing sufficient declaration forms to trading entities.

b. Submission locations:

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

- 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.

The Tax Authority and Market Management Authority will assign staff to be present at these locations to distribute and receive declarations promptly. Each declaration form 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. Deadline for submitting declarations:

The deadline for submitting declarations is five days, starting from 8:00 AM on September 15, 1998, and ending no later than 4:00 PM on September 19, 1998.

- After the declaration submission deadline, the Market Management Authority and Tax Authority must prepare records confirming the number of declarations received from trading entities.

d. Deadline for affixing stamps: Starting from September 15, 1998, and ending at 4:00 PM on September 24, 1998. Within this period, the Market Management Authority will arrange staff to conduct inspections to verify the actual quantities against the declared quantities, check valid invoices and supporting documents accompanying the declared goods to facilitate the Tax Authority in affixing stamps quickly, smoothly, and within the stipulated time frame.

e. The Market Management Authority will inspect invoices and supporting documents proving the legitimate origin of the declared goods, sign to confirm the actual goods for the Tax Authority to affix stamps. Invoices and supporting 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 on invoice and document systems for goods circulating in the market, and Joint Circular No. 10/1998/TTLB-BTM-BTC-BCA-TCHQ dated July 22, 1998 of the Joint Ministries on inspection, control, and handling of imported fabrics and ceramic tiles circulating in the market. Trading entities must present invoices and supporting documents upon request by the Market Management Authority and Tax Authority.

1.3. For confiscated imported goods as specified in Point 1 above, before sale, they must be affixed with stamps. The authority issuing the confiscation decision must notify the Tax Authority about the quantity of confiscated goods to be stamped. For goods confiscated by the Customs Authority due to violations, the Customs Authority will affix the stamps directly.

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 exempt from import tax for personal use, if selling such goods, must declare to the Customs Authority to pay import tax and affix stamps before selling.

2.2. Sold at duty-free shops.

2.3. Goods transported in transit, temporarily imported for re-export, or handled by the Customs Authority from the first port of entry to an inland inspection point 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.

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, 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 authorities, and simultaneously announce it through mass media and at sales points or dealerships so that inspection and control forces and the public are aware to avoid misuse.

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, crate). Each box or crate 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 label shall be affixed 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 on 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 is responsible for printing and distributing these labels sufficiently and promptly to localities and customs authorities to organize the affixing of labels in accordance with regulations.

Any acts 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 are managed and used in accordance with Decision No. 529 TC/TCT dated December 22, 1992, regarding the management system of tax stamps, and Decision No. 1124/1998/QĐ-BTC dated September 1, 1998, concerning 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 fees.

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 will be affixed based on the declared quantity, 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, labels will be affixed based on the actual remaining stock, while administrative penalties will also be imposed, with the severity of the penalty depending on the degree of violation.

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

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

1.2. Organizations and individuals engaged in business with imported ceramic tiles that remove tiles from their packaging to evade the labeling policy will 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 profits during circulation will be collected, along with a single fine equivalent to the taxes on turnover and profits during circulation. Labeling of such goods will only be carried out once the business entity complies 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 the taxable value on market prices and the principle of calculating turnover and profit taxes during circulation, applying this uniformly 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. Organizations and individuals engaged in business with goods requiring labels, if such goods are not labeled as required, labels are torn, damaged, covered with another layer of paper, not directly affixed to the goods, or any other form of misuse to facilitate label rotation, will 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 aiding in the sale and legitimization of imported goods specified in point 1, Section A, will be dealt with according to the law.

2. Reward:

Organizations and individuals discovering or assisting inspection forces in identifying and seizing imported goods that should be labeled but are not labeled or have counterfeit labels will 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, using 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 Trade, the Ministry of Public Security, and the General Customs Department are responsible for directing subordinate organizations to implement the provisions of this Circular accurately, promptly resolving any issues faced by ministries, sectors, localities, and business entities to effectively carry out labeling.

2. Chairmen of provincial and municipal People's Committees are responsible for directing relevant departments and levels in their localities to implement the policy of labeling 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, Technology, and Environment are responsible for advising the Joint Ministries in implementing the policy.

4. The Ministry of 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 Trade shall cooperate with central and local news agencies to intensify publicity on the policy of labeling imported goods; provide guidance and explanations of the Circular's contents to enable business organizations 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 toilet seats, 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 sectors and localities shall monitor and compile difficulties to promptly report to the Ministry of Finance and related ministries and sectors. Daily reports on the progress of implementation, urgent issues that need immediate resolution shall be reported to the steering committee's permanent office for affixing import seals for prompt 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 the inspector regarding the actual quantity of remaining goods

Day... month 9 year 1998