Circular No. 124/2007/TT-BTC guiding the printing, issuance, use, and management of cigarette import stamps and cigar import stamps.

CIRCULAR

Guidelines on printing, issuing, using, and managing tax stamps for imported cigarette and cigar products

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Pursuant to Decree No. 77/2003/NĐ-CP dated July 1, 2003 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;

Pursuant to Decree No. 12/2006/NĐ-CP dated January 23, 2006 of the Government detailing the implementation of the Law on Trade regarding international trade activities and agency buying, selling, processing, and transiting goods with foreign countries;

Pursuant to Circular No. 6889/VPCP-KTTH dated November 22, 2006 of the Government Office announcing the Prime Minister's directive on affixing stamps on imported and domestically produced goods; Circular No. 319/VPCP-V.I dated January 16, 2007 of the Government Office announcing the Deputy Prime Minister Nguyen Sinh Hung's directive on destroying smuggled and counterfeit cigarettes;

Pursuant to Decree No. 105/2007/NĐ-CP dated June 21, 2007 of the Government on cigarette production and business;

To combat the consumption of smuggled cigarettes and cigars; to contribute to protecting domestic production and consumer health, the Ministry of Finance hereby provides specific guidelines on affixing and managing stamps for imported cigarettes and cigars as follows:

This technical regulation sets out technical requirements, testing methods, sampling procedures; management requirements; responsibilities of organizations and individuals producing, trading, and importing cigarettes.

Article 1. This Circular regulates the printing, issuance, use, and management of tax stamps for imported cigarettes and cigars (hereinafter referred to as stamps).  import (hereinafter referred to as stamps).

Article 2. Imported cigarettes and cigars into Vietnam must be affixed with stamps, except for the following cases:  

Clause 2.1. Imported cigarettes and cigars within the duty-free allowance as specified in the Law on Export Duties and Import Duties and related implementing regulations.

Clause 2.2. Cases of importing cigarettes and cigars as prescribed in Points 4, 5, 6, and 7 of Section I of Joint Circular No. 01/2007/TTLT-BTM-BCN dated January 10, 2007 of the Ministry of Industry and Trade and the Ministry of Commerce (now the Ministry of Industry and Trade) guiding the detailed implementation of Decree No. 12/2006/NĐ-CP dated January 23, 2006 of the Government on the detailed implementation of the Law on Trade regarding international trade activities and agency buying, selling, processing, and transiting goods with foreign countries.

Article 3. State trading enterprises designated to import cigarettes and cigars according to the guidance at Clause 1, Section II of Joint Circular No. 01/2007/TTLT-BTM-BCN dated January 10, 2007 of the Ministry of Industry and Trade and the Ministry of Commerce (hereinafter referred to as importing enterprises) shall be responsible for:

Clause 3.1. Importing cigarettes and cigars strictly in accordance with the List of Imported Cigarettes and Imported Cigars, ensuring compliance with the requirements set out in Section III of Joint Circular No. 01/2007/TTLT-BTM-BCN dated January 10, 2007 of the Ministry of Industry and Trade and the Ministry of Commerce (now the Ministry of Industry and Trade).

Clause 3.2. Being responsible in case the parties involved in the import contract for cigarettes and cigars fail to comply with the provisions of this Circular.

Clause 3.3. Declaring and handling customs procedures for imported cigarettes and cigars at international border gates (as stipulated in Joint Circular No. 01/2007/TTLT-BTM-BCN dated January 10, 2007) and must comply with the provisions of the Law on Customs.

II. SPECIFIC PROVISIONS

Article 1. Tax stamps for imported cigarettes and imported cigars are uniformly issued by the Ministry of Finance (General Department of Taxation) in two models (two models) presented in Appendix I attached to this Circular.

In case there is a change in the design of the tax stamp for imported cigarettes and imported cigars, the Ministry of Finance will issue a Decision to amend the stamp model.

Article 2. Tax stamps for imported cigarettes and imported cigars are printed, issued, managed, and used in accordance with the regulations on the management and use of tax seals set forth in Decision No. 30/2001/QĐ-BTC dated April 13, 2001 of the Ministry of Finance on the issuance of regulations on printing, issuing, managing, and using tax seals and the provisions of this Circular. the provisions of this Circular.

3.  Affixing Stamps

Clause 3.1. Principles

Imported cigarettes and cigars must be packed into boxes, packages, or containers. Each box, package, or container of imported cigarettes and cigars must have one (01) stamp affixed. If the box, package, or container of imported cigarettes and cigars uses a transparent film cover, the stamp must be affixed before the transparent film is sealed over it.

Clause 3.2. Position of affixing stamps

Clause 3.2.1. Position of affixing cigarette stamps

- Soft pack cigarettes: The imported cigarette stamp should be affixed directly on the top center of the mouth of the soft pack, diagonally across both front and back faces of the cigarette pack (a description of the position of affixing the stamp is presented in Appendix II attached to this Circular).

- Hard pack cigarettes: The imported cigarette stamp should be affixed diagonally from the upper right corner of the back face to the opening edge of the hard pack (a description of the position of affixing the stamp is presented in Appendix II attached to this Circular).

- Cigarettes packaged in wooden boxes, metal boxes, or other packaging materials: The stamp must be affixed diagonally across the joint between the lid and body of the box, package, or container, ensuring that the stamp will tear when the box, package, or container is opened.

Clause 3.2.2. Position of affixing cigar stamps

The position of affixing imported cigar stamps must be diagonally across the joint between the lid and body of the box, package, or container, ensuring that the stamp will tear when the box, package, or container is opened.

Article 4. Issuing tax stamps for imported cigarettes and cigars

Clause 4.1. Responsibility for issuing stamps

The General Department of Taxation is responsible for organizing the printing and distribution of stamps to provincial and municipal tax bureaus so that the tax bureaus can issue them to importing enterprises.distribute stamps to the Tax Departments of provinces and centrally governed cities for the Tax Departments to issue to import enterprises.

Clause 4.2. Procedures and deadlines

Based on the request for stamp issuance submitted by provincial and municipal tax bureaus, within five working days from the date of receipt of the request, the General Department of Taxation will issue tax stamps for imported cigarettes and cigars to the tax bureaus.

Importing enterprises, based on the quantity of imported cigarette packs, packages, and containers according to contracts signed with foreign countries, submit a request for stamp issuance in the format specified in Attachment 01/CVCT of this Circular to the directly managing tax bureau. Within a maximum period of three working days from the date of receipt of the request for stamp issuance, the tax bureau will issue the requested number of stamps to the enterprise based on the quantity of stamps requested.

Article 5. Deadline for registering the expected usage quantity of each type of stamp

Enterprises The importer must register the quantity of each type of stamp expected to be used with the Provincial Tax Department where it registers for tax payment before October 30 each year.

The Provincial Tax Departments shall aggregate the demand for cigarette import stamps and cigar import stamps from enterprises within their jurisdiction and report to the General Department of Taxation.  Before November 15 each year so that the General Department of Taxation can organize printing to ensure usage needs for the year.

Specifically for the year 2007, the Vietnam Tobacco Corporation will forecast the quantity of cigarette import stamps and cigar import stamps and submit them to the General Department of Taxation for printing to meet the usage needs for the year 2007.

6. Exporting Stamps Abroad

Importers must follow customs procedures as stipulated by the Customs Law when exporting stamps abroad.

7. Preparing and Submitting Reports on Stamp Usage and Settlement

7.1. Responsibility for Preparing Reports on Stamp Usage and Settlement

Importers have the responsibility to prepare quarterly reports on stamp usage and annual settlement reports on stamp usage to the tax authority receiving the stamps.

The Provincial Tax Departments have the responsibility to settle stamp accounts annually with the General Department of Taxation.

7.2. Deadline for Submission

7.2.1. For Importers

By the 20th day of the first month of the following quarter, importers must submit the previous quarter's stamp usage report to the directly managing tax authority using Form No. 02/BCT attached hereto. By February 20 of the following year, importers must submit the annual stamp usage settlement report using Form No. 03/QTT attached hereto.

To prepare the usage report and annual settlement report on imported cigarette stamps and cigar stamps with the tax authority, importers must maintain records of received stamps, used stamps, damaged or lost stamps.

7.2.2. For Provincial Tax Departments

Within thirty days from receipt of the annual stamp usage settlement report from importers, the Provincial Tax Departments must prepare the annual stamp usage settlement report and send it to the General Department of Taxation.  The annual stamp usage settlement report must include the following contents: statistics on the number of stamps received from the General Department; the number of stamps issued to enterprises; the number of stamps used by enterprises; the number of damaged, torn, deteriorated, or missing stamps (with reasons); the number of surplus stamps, and attach a copy of the enterprise's annual stamp usage settlement report sent to the Provincial Tax Department.

8. Handling Surplus Stamps After Settlement

After settlement, if there are unused stamps, importers must return the unused stamps to the tax authority. If there is a need to continue using them, this must be clearly stated in the annual stamp usage settlement report or a letter requesting continued use must be submitted to the tax authority.

Importers who lose imported cigarette stamps or cigar stamps without justifiable reasons will be dealt with according to the provisions of the law.

III. RESPONSIBILITIES FOR INSPECTION AND HANDLING OF VIOLATIONS

1. Inspection Responsibilities

1.1. Functional forces within their scope, powers, and duties have the responsibility to strictly inspect and supervise to detect and handle violations related to affixing imported cigarette stamps and cigar stamps as prescribed in this Circular.

1.2. Every six months (6 months once), the General Department of Customs has the responsibility to compile statistics on the number of imported cigarette units and cigar units that require stamping (boxes, packs, packages) by each importing enterprise and send the data to the General Department of Taxation for management of the issued stamps.

2. Disciplinary Actions

2.1. Imported cigarettes and cigars that fall under the category requiring stamping but lack stamps; or stamps are not affixed according to regulations, or fake stamps are affixed are considered to be contraband goods (illegal goods) and will be handled according to the regulations on handling smuggled cigarettes and counterfeit cigarettes.

2.2. Enterprises that have illegal goods; or violate import procedures will be subject to administrative penalties in the field of customs.

2.3. Domestic organizations and individuals engaging in illegal trading or storing illegal goods will be subject to administrative penalties in the field of commerce.

2.4. Importers who fail to comply with the regulations on reporting and settling stamp usage with the tax authority will be penalized according to the law, and the tax authority has the right to suspend the issuance of stamps.

IV. IMPLEMENTATION

1. The General Department of Taxation is responsible for organizing the printing and distribution of stamps to the Provincial Tax Departments and directing the Provincial Tax Departments to inspect the management, use, and settlement of stamps as prescribed in this Circular.

2. Imported cigarette stamps and cigar stamps are provided free of charge to importers. The cost of printing and distributing imported cigarette stamps and cigar stamps is funded from the operational budget according to the current financial system.

3. This Circular takes effect fifteen days after its publication in the Official Gazette.

During implementation, if there are difficulties, please promptly reflect them to the Ministry of Finance for consideration and guidance on amendments and supplements to make it appropriate./.