Circular No. 148/2013/TT-BTC guiding the implementation of the Business Operation Regulation on Duty-Free Sales issued together with Decision No. 24/2009/QĐ-TTg dated February 17, 2009 of the Government Prime Minister and Decision No. 44/2013/QĐ-TTg dated July 19, 2013 amending and supplementing some articles of the Business Operation Regulation on Duty-Free Sales issued together with Decision No. 24/2009/QĐ-TTg dated February 17, 2009 of the Government Prime Minister

CIRCULAR

Guidelines for implementing the Business Operation Regulation on Tax-Free Sales issued together with

Decision No. 24/2009/QĐ-TTg dated February 17, 2009 of the Prime Minister and Decision

No. 44/2013/QĐ-TTg dated July 19, 2013 amending and supplementing certain articles of

the Business Operation Regulation on Tax-Free Sales issued together with Decision

 No. 24/2009/QĐ-TTg dated February 17, 2009 of the Prime Minister

________________________

Pursuant to the Customs Law No. 29/2001/QH10 dated June 29, 2001 and the Law Amending and Supplementing Certain Articles of the Customs Law No. 42/2005/QH11 dated June 14, 2005 amending and supplementing certain articles of the Customs Law;

Pursuant to Decree No. 66/2002/NĐ-CP dated July 1, 2002 of the Government stipulating the allowance for luggage of persons exiting and entering the country and gifts and presents imported duty-free;

Pursuant to Decree No. 154/2005/NĐ-CP dated December 15, 2005 of the Government detailing certain provisions of the Customs Law regarding customs procedures and customs inspection and supervision;

Pursuant to Decision No. 24/2009/QĐ-TTg dated February 17, 2009 of the Prime Minister promulgating the Business Operation Regulation on Tax-Free Sales;

Pursuant to Decision No. 44/2013/QĐ-TTg dated July 19, 2013 of the Prime Minister amending and supplementing certain articles of the Business Operation Regulation on Tax-Free Sales issued together with Decision No. 24/2009/QĐ-TTg dated February 17, 2009 of the Prime Minister;

Pursuant to 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;

At the proposal of the Director General of the General Department of Customs,

The Minister of Finance issues this Circular guiding the implementation of the Business Operation Regulation on Tax-Free Sales issued together with Decision No. 24/2009/QĐ-TTg dated February 17, 2009 of the Prime Minister and Decision No. 44/2013/QĐ-TTg dated July 19, 2013 amending and supplementing certain articles of the Business Operation Regulation on Tax-Free Sales issued together with Decision No. 24/2009/QĐ-TTg dated February 17, 2009 of the Prime Minister as follows:

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

This Circular guides the implementation of the Business Operation Regulation on Tax-Free Sales issued together with Decision No. 24/2009/QĐ-TTg dated February 17, 2009 of the Prime Minister (referred to as the Regulation issued with Decision No. 24/2009/QĐ-TTg) and Decision No. 44/2013/QĐ-TTg dated July 19, 2013 amending and supplementing certain articles of the Regulation issued with Decision No. 24/2009/QĐ-TTg dated February 17, 2009 of the Prime Minister (referred to as Decision No. 44/2013/QĐ-TTg); it does not regulate tax-free sales business activities in border economic zones.

Article 2. Applicability

Agencies, traders, organizations, and individuals related to the contents prescribed in the Regulation issued with Decision No. 24/2009/QĐ-TTg and Decision No. 44/2013/QĐ-TTg.

Chapter II

REGULATIONS FOR TRADERS ENGAGED IN TAX-FREE SALES AND CUSTOMS AUTHORITIES MANAGING TAX-FREE SALES

TAX-FREE SALES MANAGEMENT

Article 3. Responsibilities of traders engaged in tax-free sales

1. Traders engaged in tax-free sales (referred to as traders) may engage in tax-free sales after fully meeting the conditions stipulated in Article 2 and Article 3 of the Regulation issued with Decision No. 24/2009/QĐ-TTg and Clause 2 of Article 1 of Decision No. 44/2013/QĐ-TTg and being confirmed by the General Department of Customs to meet the conditions for customs inspection and supervision as provided in Chapter III of this Circular.

2. Goods sold at tax-free shops shall be stored at tax-free shops including tax-free goods warehouses during the time specified in Points b, c, and d of Clause 3 of Article 1 of the Regulation issued with Decision No. 24/2009/QĐ-TTg. The arrangement and storage of goods in tax-free goods warehouses must be divided by type of goods to facilitate customs inspection and supervision.

3. Traders engaged in tax-free sales shall use invoices in accordance with current regulations on printing, issuance, use, and management of invoices.

4. Cash (Vietnamese dong, foreign currency) collected from tax-free sales activities when taken out of tax-free shops located at places specified in Clause 1 and Clause 3 of Article 3 of the Regulation issued with Decision No. 24/2009/QĐ-TTg and Clause 2 of Article 1 of Decision No. 44/2013/QĐ-TTg must be accompanied by relevant documents (such as lists, payment receipts, tracking records...) and be subject to supervision by the Customs Sub-department managing tax-free sales.

5. Tax-free goods transported from tax-free goods warehouses to tax-free shops must be accompanied by warehouse exit slips to facilitate customs inspection and supervision.

6. Documents related to export and import of goods at tax-free shops and tax-free goods warehouses such as temporary import declarations, re-export declarations, warehouse exit slips, lists, and liquidity reports must be stored according to Point d of Clause 1 of Article 23 of the Law Amending and Supplementing Certain Articles of the Customs Law No. 42/2005/QH11 dated June 14, 2005 (five years). For documents regulated by accounting laws, the retention period shall comply with corresponding regulations.

7. Traders must maintain record books for tracking the import and export of goods, their entry and exit, and the inventory of tax-free shops, and use software programs to manage tax-free shops. The software program for managing tax-free sales must comply with the technical standards for connection to the General Department of Customs and have the following main functions:

a) Inputting information, searching, and statistics on the quantity of exported and imported goods, goods remaining in tax-free shops and tax-free goods warehouses, by product, customer, temporary import declaration, temporary export declaration, and over time.

b) Backing up and exporting data for reporting, statistical purposes, and storage.

c) Connecting online with the Customs Sub-department managing tax-free sales to facilitate inspection and control.

8. Affix "VIETNAM DUTY NOT PAID" labels on products that require labeling before they are displayed for sale in tax-free shops or before they are delivered to customers purchasing them directly from tax-free goods warehouses.

a) The position for affixing labels on tobacco, alcohol, and beer products shall be carried out in accordance with the provisions set forth in the Appendix attached to this Circular.

b) The position for affixing labels on other products shall be specifically guided by the General Department of Customs and the Ministry of Finance.

9. In case goods sold at duty-free shops exceed the temporary import and export period as stipulated in Clause 2 of this Article, before re-exporting, re-importing, or transferring for domestic consumption, traders must remove and destroy the "VIETNAM DUTY NOT PAID" labels affixed to each item under the supervision of the Customs Sub-Department managing duty-free sales.

10. Goods entering or leaving duty-free warehouses; entering or being sold from duty-free shops must be entered into the duty-free sales management program immediately upon occurrence.

11. Provide information to buyers about tax exemption standards for goods purchased for entry; advise duty-free buyers to purchase within the standard quantity allowed for personal effects under Decree 66/2002/NĐ-CP dated July 1, 2002; notify the Customs Sub-Department's border gate management unit at the International Airport for cases where customers exceed the tax-exempt quantity standard so that customs authorities can collect taxes as prescribed.

12. Regularly extract data monthly and send it to the Customs Sub-Department managing duty-free sales to report on sales transactions occurring in the month. The reporting deadline is before the 5th day of the following month (using Form 01/BCBHPS - Sales Report).

13. Summarize reports on the operation of duty-free sales activities and submit them to the General Department of Customs. The reporting deadlines are before July 15 annually for the six-month activity report, and before January 15 annually for the annual activity report (using Form 02/BCTHHDKDBHMT - Duty-Free Sales Operation Report).

Article 4. Responsibilities of Customs Authorities

1. Responsibilities of the General Department of Customs:

a) Organize and direct customs management and supervision over duty-free sales activities nationwide.

b) Announce lists of traders who fail to comply with periodic reporting requirements to relevant customs units for appropriate inspection and supervision measures.

c) Organize confirmation of customs inspection and control conditions for duty-free shop locations and duty-free storage warehouse locations.

d) Develop and issue technical standards for connecting the customs computer system with the trader's computer system; develop software for managing and supervising duty-free sales activities at shops and warehouses to meet customs inspection and supervision requirements and facilitate trader operations.

2. Responsibilities of Provincial/City Customs Departments:

a) Implement customs management and supervision duties for duty-free sales activities within their jurisdiction.

b) Based on the application files of traders as stipulated in Article 6 of this Circular, conduct on-site inspections at duty-free shop and warehouse locations, and report results to the General Department of Customs.

c) Handle violations according to authority.

3. Responsibilities of the Customs Sub-Department managing duty-free sales (hereinafter referred to as Customs):

a) Implement customs management and supervision duties for duty-free sales activities within their jurisdiction.

b) Process customs procedures for duty-free sales goods according to regulations applicable to commercial imports and exports and manage under the temporary import and re-export regime.

c) Collect taxes as prescribed for cases where customers exceed the tax-exempt quantity standard as stipulated in Decree 66/2002/NĐ-CP dated July 1, 2002.

d) On the basis of applications from duty-free sales traders to extend the retention period as stipulated in Point d, Clause 3, Article 1 of the Regulation issued with Decision No. 24/2009/QĐ-TTg.

đ) Monitor and urge duty-free sales traders to settle export and import declarations.

Settle import and export declarations for duty-free goods of duty-free sales traders.

e) The Customs Sub-Department Director decides on inspection and supervision measures in accordance with customs laws and suitable for customs management requirements.

g) Customs manages imported and exported goods for sale at duty-free shops through the trader's duty-free sales management program connected to the customs authority (or through the trader's tracking ledger in case the management software program stops functioning due to damage, repair, or maintenance).

h) Prepare a record confirming the removal of labels as stipulated in Clause 9, Article 3 of this Circular (the record includes: name of the item, serial number of each label affixed, total number of labels removed, time and location of execution); the record must have signatures confirming from both the trader and Customs.

i) Regularly organize work to inspect and settle customs declarations for imports and exports; during the management and monitoring process, if violations by traders are discovered, they will be handled according to the nature and severity of the violation as prescribed by law.

k) Organize inspection and supervision work in accordance with the law for traders' duty-free sales activities; or for inventory at duty-free shops and warehouses; or check and compare customer lists who have purchased duty-free goods and passenger lists of international flights arriving in Vietnam.

Article 5. Responsibilities of Tax-Free Purchasers

1. When purchasing tax-free goods, the purchaser must present and provide the information specified in Chapter IV of this Circular when buying tax-free goods and may not allow others to use their passport or tax-free quota.

2. Declare and pay taxes to the customs authority for the amount exceeding the tax-free limit as prescribed in Decree No. 66/2002/NĐ-CP dated July 1, 2002 of the Government.

Chapter III

PROCEDURES FOR CONFIRMATION OF ELIGIBILITY FOR CUSTOMS INSPECTION AND CONTROL

 CUSTOMS INSPECTION AND CONTROL

Article 6. Documents for Requesting Confirmation of Eligibility for Customs Inspection and Control at Duty-Free Shop Locations and Tax-Free Goods Warehouses

Prior to operating duty-free sales, the trader shall submit two sets of documents requesting confirmation of eligibility for customs inspection and control at the duty-free shop location to the Provincial/City Customs Office (where the duty-free shop and warehouse are located). The request documents include:

1. A request letter: one original copy;

2. Business registration certificate, enterprise registration certificate/investment certificate: one copy with the trader's seal;

3. Design layout of the duty-free shop area (including sales points and warehouses) and locations for customs inspection and supervision activities, installation documentation of equipment at the duty-free shop such as lighting systems, cameras, fire prevention and extinguishing systems: one copy with the trader's seal;

4. Documentation describing the business management software program; computer system serving the monitoring and management functions of the duty-free shop, network connection system with the customs authority: one original copy;

5. Internal management procedures of the trader regarding import and export of goods at the tax-free goods warehouse, delivery of goods from the tax-free goods warehouse to the duty-free shop, management of sales at the duty-free shop, money collection from duty-free sales, and delivery of duty-free goods: one original copy;

6. Documents proving the right to use the duty-free shop location: one copy with the trader's seal;

Article 7. Procedures for Confirmation

1. The trader submits the request documents for confirmation to the Provincial/City Customs Office where the duty-free shop and tax-free goods warehouse are located.

2. Within ten working days from the date of receipt of complete and valid documents, the Provincial/City Customs Office shall perform:

a) Review the documents;

b) Conduct on-site inspections of the duty-free shop and tax-free goods warehouse locations;

c) Evaluate compliance with conditions stipulated in Article 3 of the Regulation issued together with Decision No. 24/2009/QĐ-TTg, Clause 2 of Article 1 of Decision No. 44/2013/QĐ-TTg, and Point 7 of Article 3 of this Circular. Propose opinions and report clearly on the organization plan and customs inspection and supervision work to the General Department of Customs along with one set of the trader’s confirmation request documents.

3. Within ten working days from the date of receipt of the report and documents, the General Department of Customs shall issue a document confirming the eligibility for customs inspection and supervision at the duty-free shop location of the trader, or eligibility for duty-free sales on outbound flights, or respond if the conditions are not fully met as prescribed.

Chapter IV

REGULATIONS ON OBJECTS, CONDITIONS, AND QUANTITIES OF TAX-FREE PURCHASES

LIMITS ON TAX-FREE PURCHASES

Article 8. The subject is a person exiting the country, transiting to purchase tax-free goods at the exit port duty-free shop, or on the aircraft specified in points a and b, Clause 1, Clause 2, Article 5 and Clause 1, Article 6 of the Regulation issued together with Decision No. 24/2009/QĐ-TTg, Clause 2, Article 1 of Decision No. 44/2013/QĐ-TTg.

1. At the time of sale, the salesperson requests the buyer to present the Passport, Boarding Pass, and is responsible for entering the following information into the computer:

a) Full name of the buyer as stated in the Passport/travel document.

b) Passport number or travel document number;

c) Flight number (flight), date of departure (date) recorded on the Boarding Pass (Boarding pass) for those exiting or transiting by air; or the departure date of the means of transport for those exiting or transiting by land, rail, or sea port.

d) Name of the item and unit of measurement must be accurately recorded according to the declared name of the item on the import declaration form.

đ) Quantity and value.

In cases where the total value of tax-free goods purchased by the person exiting the country exceeds the threshold specified by the State Bank of Vietnam for customs declaration, the person exiting the country must present to the salesperson proof of origin of the currency used in the transaction according to the regulations of the State Bank of Vietnam and provide a copy of the proof of origin of the currency used in the transaction to be presented in the settlement file as stipulated in Chapter VII of this Circular.

2. Retain the sales invoice according to the date of sale (in cases where the sales invoice is in rolls, retain them roll by roll).

3. In cases where tourists traveling by sea in a group have passports or travel documents for entry and exit as prescribed but do not have entry visas or entry and exit declarations, if they purchase tax-free goods, they shall follow the provisions of Clause 1 of this Article, except that the sales invoice shall include the name of the cruise ship. The store staff is responsible for delivering goods to tourists immediately after they complete the exit procedures.

4. Within 24 hours from the time the aircraft is parked at the designated position of the Civil Aviation Authority at the international airport, the trader must declare on the business management software program for tax-free sales the contents including: Buyer's full name, flight number (flight), date of departure (date), item name, quantity, value, total quantity, total value.

Article 9. The subject is a person entering the international border gate airport as prescribed in Clause 2, Clause 3, Article 1 of Decision No. 44/2013/QĐ-TTg:

When selling goods, the salesperson performs all tasks as specified in Clauses 1 and 2 of Article 8 of this Circular, while:

1. Taking a copy of the passport (page with photo and page stamped by the border police) or Boarding Pass (Boarding pass).

2. For customers purchasing tax-free goods exceeding the standard tax-free allowance as prescribed in Articles 5 and 6 of Decree No. 66/2002/NĐ-CP, notify the customs department at the entry port to collect taxes as prescribed. Upon notification, present two Notification Forms (Form No. 03/PTBHVĐM - Notification Form for Exceeding Allowance) and receive back one Notification Form signed and stamped by the customs officer at the entry port.

Article 10. The subject is a person waiting to exit the country who purchases tax-free goods at duty-free shops within the city as specified in Point c, Clause 1, Article 5 of the Regulation issued together with Decision No. 24/2009/QĐ-TTg.

1. When selling goods, sales staff shall be responsible for:

a) Fulfilling all tasks prescribed in Clauses 1 and 2 of Article 8 of this Circular. For flight number (flight) and date of travel (date), information shall be taken from the passenger's confirmed ticket.

b) Issuing a Delivery Note (Form No. 04/PGH - Delivery Note): two copies.

2. Responsibilities of duty-free shops within the city:

a) Shall be responsible for transporting and presenting goods along with two copies of the Delivery Note to the customs checkpoint for handing over the goods to the buyer in the quarantine area at the exit checkpoint.

b) In case the shop cannot present the Delivery Note with confirmation from the customs checkpoint when settling accounts, the shop shall be responsible for paying the full tax according to the current Tax Law on the sold goods.

3. Responsibilities of the customs checkpoint where the buyer exits:

a) Receiving goods and the Delivery Note presented by the staff of the duty-free shop within the city.

b) Checking and comparing the goods with the contents declared on the Delivery Note.

c) Signing and stamping the Delivery Note with the seal of the customs officer.

d) Handing over one copy of the Delivery Note to the shop for retention, retaining one copy.

Article 11. The subject is an organization, individual enjoying diplomatic privileges and exemptions purchasing tax-free goods at duty-free shops within the city as specified in Clause 3, Article 5 and Clause 2, Article 6 of the Regulation issued together with Decision No. 24/2009/QĐ-TTg.

When selling goods, sales staff shall be responsible for performing as follows:

1. Recording all required contents accurately on the sales invoice.

2. Cutting and affixing the corresponding stamp onto the sales invoice.

3. Retaining the sales invoice with affixed stamps according to the date of sale.

Article 12. The subject is an entity benefiting from preferential tax policies as stipulated by the Prime Minister purchasing tax-free goods at duty-free shops within the city as specified in Clause 3, Article 5 and Clause 2, Article 6 of the Regulation issued together with Decision No. 24/2009/QĐ-TTg.

When selling goods, sales staff shall be responsible for performing as follows:

1. Deducting the quantity of goods purchased at the shop from the permit document for tax-exempt goods, with confirmation by the shop leader.

2. Recording all required contents accurately on the sales invoice.

3. Retaining the sales invoice according to the date of sale.

4. Regarding the document specified in Clause 1 of this Article:

a) Retaining a copy of the deduction with confirmation by the shop leader if the buyer has not yet purchased the full quantity of tax-exempt goods.

b) Retaining the original deduction with confirmation by the shop leader if the buyer has already purchased the full quantity of tax-exempt goods.

Article 13. The subject is a seafarer working on international maritime transport vessels as specified in Clause 4, Article 5 and Clause 3, Article 6 of the Regulation issued together with Decision No. 24/2009/QĐ-TTg.

1. In the case of purchasing tax-free goods to serve the common living needs of seafarers during the time the vessel is docked at a Vietnamese port awaiting departure:

a) Seafarers on board are permitted to purchase tax-free goods at duty-free shops once, according to the following specific quantities:

a.1) Spirits 22 degrees or higher: 1.5 liters.

a.2) Spirits below 22 degrees: 2.0 liters.

a.3) Alcoholic beverages, beer: 3.0 liters.

a.4) Cigarettes: 400 sticks.

a.5) Cigars: 100 sticks.

b) Sales regulations:

b.1) The ship captain or representative of the ship shall place an order on behalf of the seafarers (using paper or electronic documents such as email or fax) for a single purchase for all seafarers.

b.2) Sales staff shall perform:

b.2.1) Checking the order form and list of seafarers.

b.2.2) Recording the full name, passport number of the ship captain or representative, ship identification number, and entry date on the invoice and signing it.

b.2.3) Retaining the sales invoice, order form, and list of seafarers as the basis for customs declaration settlement.

2. In the case of purchasing tax-free goods to serve the needs of seafarers for the next voyage outside Vietnamese territorial waters, such purchases can only be made at the duty-free shop at the port of departure.

a) Sales regulations:

a.1) The ship captain or representative of the ship shall place an order according to the requirements.

a.2) Sales staff shall perform:

a.2.1) Checking the order form and list of seafarers.

a.2.2) Recording the full name, passport number of the ship captain or representative, ship identification number, and entry date on the invoice and signing it.

a.2.3) Retaining the sales invoice, order form, and list of seafarers as the basis for customs declaration settlement.

b) Goods purchased at the duty-free shop according to the order form to serve the needs of seafarers for the next voyage (to be used outside Vietnamese territorial waters) must be placed in the ship's warehouse and sealed by the customs checkpoint at the port of departure (signing and stamping the customs officer's seal on the sales invoice) and monitored until the ship departs.

3. In the case where there is no duty-free shop at an international port, the duty-free shop at the nearest provincial or municipal port may sell tax-free goods to the subjects specified in Clauses 1 and 2 of this Article.

When shipping goods from the warehouse/shop to the vessel that has placed an order, the trader must issue a Warehouse Withdrawal Note/Shop Dispatch Note detailing each item, quantity, and value, and submit it to the customs checkpoint at the port of departure. Sales procedures shall be carried out in accordance with Clauses 1 and 2 of this Article.

Chapter V

CUSTOMS MANAGEMENT REGULATIONS FOR IMPORTED GOODS THAT HAVE BEEN TAXED AND GOODS PRODUCED IN VIETNAM INTRODUCED FOR SALE AT DUTY-FREE SHOPS

IMPORTED GOODS THAT HAVE BEEN TAXED AND DOMESTICALLY PRODUCED GOODS INTRODUCED FOR SALE IN DUTY-FREE STORES

VIETNAMESE DUTY-FREE STORES

Article 14. Goods Produced in Vietnam

1. Goods produced in Vietnam include goods manufactured from domestic raw materials and/or imported materials.

2. Goods produced in Vietnam that are sold in duty-free shops must not be on the list of prohibited export goods or temporarily suspended export goods. If they are conditional export goods, they must have a permit from the specialized management agency as stipulated by law.

Article 15. Customs Procedures for Imported Goods Already Paid Duty and Goods Produced in Vietnam

1. Customs procedures for imported goods already paid duty and goods produced in Vietnam that are sold in duty-free shops shall be treated as export goods and comply with the legal regulations on commodity policies, carried out at the Customs Sub-Department managing duty-free sales.

2. Responsibilities of Merchants:

a) The merchant selling the goods registers an export declaration, while the merchant purchasing the goods (merchant operating duty-free sales) registers an import declaration. Customs procedures shall be conducted according to the regulations for exported and imported goods under the purchase and sale contract.

b) For imported goods already paid duty, additional documents must be submitted: the original import declaration, tax receipts for various types (photocopies certified by the importing merchant).

3. Responsibilities of Customs:

a) Customs is responsible for conducting import and export customs procedures according to current regulations. Specifically, for the export declaration: confirm completion of customs procedures and stamp in box 30, without confirming in box 31.

b) Based on the settlement documentation as prescribed in Chapter VII of this Circular, carry out settlement and confirm the quantity of goods, certify the settlement in box number 31 of the export declaration.

c) The customs office registering the import declaration for goods already paid duty shall conduct the refund procedure according to the current tax laws.

Chapter VI

CUSTOMS MANAGEMENT REGULATIONS FOR IMPORTED GOODS THAT HAVE BEEN TAXED AND GOODS PRODUCED IN VIETNAM INTRODUCED FOR SALE AT DUTY-FREE SHOPS

IMPORT FOR SALE IN DUTY-FREE SHOP TRANSFER

PURPOSE OF USE

Article 16. For Re-exported Goods

1. The merchant submits to Customs: a request for re-export.

2. The re-export procedures shall be carried out according to the current regulations for re-exported goods customs procedures.

Article 17. For Goods Sold in the Domestic Market

1. The merchant submits to Customs the following documents:

a) A request for goods to be transferred for sale in the domestic market, specifying each item, commodity code, quantity, value, and the number of temporary import declarations.

b) Permit from the Ministry of Industry and Trade (if the imported goods require a permit from the Ministry of Industry and Trade).

c) For tobacco products, follow the provisions of Clause 1, Article 4 of Circular No. 02/2010/TT-BCT dated January 14, 2010, regarding the importation of tobacco for duty-free sales operations.

2. Customs procedures for goods transferred for sale in the domestic market shall be carried out according to the regulations for imported goods under purchase and sale contracts.

3. In cases where imported goods already paid duty and goods produced in Vietnam sold in duty-free shops are then transferred to the domestic market, customs procedures shall be conducted as for re-imported goods and follow the provisions of Clause 9, Article 3 of this Circular. Settlement shall be carried out according to the provisions of Articles 18 and 19 of this Circular. Tax policy for such cases shall be implemented according to the current tax laws.

Chapter VII

PROVISIONS ON SETTLEMENT DOCUMENTATION

Article 18. Documentation for Settlement

The documentation for settlement includes:

1. Documentation submitted to the customs authority

a) A letter requesting settlement;

b) An inventory summary table of quantities of goods brought in, sold, consumed domestically, destroyed, re-exported, and remaining stock itemized by each commodity in the temporary import or export declaration (in accordance with Form No. 05/BKTHSLHHCHMT - Summary Inventory Table of Goods at Duty-Free Shops): one original copy

c) A detailed inventory table of goods sold itemized by each commodity in the temporary import or export declaration (in accordance with Form No. 06/BKCTHH - Detailed Inventory Table of Goods): one original copy.

d) A summary table of invoices exceeding the quota

đ) A record of goods destruction: one copy with confirmation from the duty-free shop trader

e) Customs declaration for re-export and re-import

2. Documentation presented to the customs authority

a) Sales receipts for each type of tax-exempt buyer as stipulated in Section IV of this Circular: original copy

b) Summary warehouse entry forms

c) Summary warehouse exit forms

d) Monthly sales report of the trader

đ) Notification form for buyers exceeding the tax exemption quota with confirmation from customs officer

e) Delivery receipt with confirmation from customs officer (for duty-free shops within city selling to outbound travelers)

g) Other documents (if any).

Article 19. Procedures for Settlement

1. The duty-free goods trader must submit the settlement documentation for each temporary import/export declaration during the first week of each month but not later than the time limit specified in point b, c, d Clause 3 Article 1 of the Regulation issued with Decision No. 24/2009/QĐ-TTg.

2. Based on the documentation submitted and presented by the trader, the customs authority will proceed with the settlement according to regulations; if necessary, the Director of the Provincial/City Customs Department will decide to conduct inspections according to the prescribed procedures regarding the quantity of goods stored in warehouses and at duty-free shops.

3. After settling the customs declaration, the trader must retain the sales documentation in accordance with the accounting regulations.

4. Goods that are broken, damaged, deteriorated, or substandard shall be handled in accordance with the provisions of point e, Clause 3, Article 1 and Clause 1, Article 4 of the Regulation issued with Decision No. 24/2009/QĐ-TTg,

a) When preparing a record of goods that are broken, damaged, deteriorated, or substandard, the trader must clearly state the reasons and name of the commodity, commodity code, quantity, and value. The customs authority, based on the content of the record and the actual condition of the goods, has the responsibility to confirm the above goods.

b) The trader is responsible for organizing the destruction in accordance with current laws, waste disposal must have the consent of the Department of Natural Resources and Environment (if applicable) and be supervised by Customs, reporting to the Customs Sub-department managing duty-free sales about the results of the goods destruction.

c) The settlement procedure for broken, damaged, deteriorated, or substandard goods shall be carried out in accordance with current laws.

Chapter VIII

IMPLEMENTING PROVISIONS

Article 20. Effective Date

1. This Circular takes effect from December 8, 2013. It abolishes Circular No. 120/2009/TT-BTC dated June 16, 2009, of the Ministry of Finance guiding the implementation of the Regulation on duty-free sales issued with Decision No. 24/2009/QĐ-TTg dated February 17, 2009, of the Prime Minister and related guiding documents. For declarations registered before this Circular takes effect, they shall be implemented according to Circular No. 120/2009/TT-BTC dated June 16, 2009, of the Ministry of Finance until the settlement is completed.

2. During implementation, if related documents referred to in this Circular are amended, supplemented, or replaced, they shall be implemented according to the new amended, supplemented, or replaced documents.

3. The Director of the General Customs Department instructs the Directors of the Provincial/City Customs Departments to be responsible for organizing management, monitoring, and implementing the guidance contents in this Circular.

4. Duty-free sales traders and related organizations and individuals are responsible for implementing the relevant contents in this Circular./.