Circular No. 190/2013/TT-BTC detailing the implementation of Government Decree No. 127/2013/NĐ-CP dated October 15, 2013 on administrative penalties and enforcement of administrative decisions in the customs sector.

CIRCULAR

Providing detailed implementation of Government Decree No. 127/2013/NĐ-CP dated October 15, 2013 on administrative penalties and enforcement of administrative decisions in the customs sector.

On the basis of the Customs Law dated June 29, 2001; the Law amending and supplementing certain articles of the Customs Law dated June 14, 2005;

On the basis of the Tax Administration Law dated November 29, 2006; the Law amending and supplementing certain articles of the Tax Administration Law dated November 20, 2012;

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Pursuant to the Law on Handling Administrative Offenses dated June 20, 2012;

On the basis of Government Decree No. 81/2013/NĐ-CP dated July 19, 2013 detailing some provisions and measures for implementing the Law on Handling Administrative Violations;

On the basis of Government Decree No. 127/2013/NĐ-CP dated October 15, 2013 on administrative penalties and enforcement of administrative decisions in the customs sector;

On the basis of Government Decree No. 118/2008/NĐ-CP dated November 27, 2008 on the functions, tasks, powers, and organizational structure of the Ministry of Finance.

Pursuant to Decree No. 83/2013/NĐ-CP dated July 22, 2013 of the Government detailing implementation of certain provisions of the Law on Tax Administration and the Law Amending and Supplementing Certain Provisions of the Law on Tax Administration;

The Minister of Finance issues this Circular to provide detailed implementation of administrative penalties and enforcement of administrative decisions in the customs sector as follows.

ADMINISTRATIVE PENALTIES FOR CUSTOMS VIOLATIONS

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

Article 1. This Chapter provides detailed implementation of certain provisions of Chapter I of Government Decree No. 127/2013/NĐ-CP dated October 15, 2013 on administrative penalties and enforcement of administrative decisions in the customs sector (hereinafter referred to as the Decree).

PART I

2. Individuals and organizations that commit administrative violations in the customs sector intentionally or negligently but not constituting a crime shall be subject to administrative penalties as prescribed in the Decree on administrative penalties and enforcement of administrative decisions in the customs sector.

Section 1

GENERAL PROVISIONS

Article 1. Scope of Regulation and Applicability

Article 2. Application of regulatory legal documents

1. The imposition of administrative penalties, application of forms of administrative penalties, measures to remedy consequences, preventive measures against administrative violations, and ensuring the implementation of administrative penalties in the customs sector must comply with the principles, procedures, and jurisdiction stipulated in the Law on Handling Administrative Violations No. 15/2012/QH13, the Tax Administration Law No. 78/2006/QH10, the Law Amending and Supplementing Certain Articles of the Tax Administration Law No. 21/2012/QH13, Government Decree No. 81/2013/NĐ-CP dated July 19, 2013 detailing some provisions and measures for implementing the Law on Handling Administrative Violations, Government Decree No. 83/2013/NĐ-CP dated July 22, 2013 detailing some provisions of the Tax Administration Law and the Law Amending and Supplementing Certain Articles of the Tax Administration Law, and Government Decree No. 127/2013/NĐ-CP dated October 15, 2013 on administrative penalties and enforcement of administrative decisions in the customs sector.

2. The application of regulations for imposing administrative penalties in the customs sector shall be carried out in accordance with Article 83 of the Law on Issuing Regulatory Legal Documents 2008 and Article 3 of Resolution No. 24/2012/QH13 dated June 20, 2012 of the National Assembly on the Implementation of the Law on Handling Administrative Violations.

3. The principles of administrative penalties stipulated in Article 3 of this Circular shall be applied to impose penalties on administrative violations in the customs sector as prescribed in Government Decree No. 127/2013/NĐ-CP dated October 15, 2013 on administrative penalties and enforcement of administrative decisions in the customs sector.

2. The application of provisions for administrative offenses penalties in the customs sector shall be implemented in accordance with Article 83 of the Law on Legislative Regulatory Documents 2008 and Article 3 of Resolution No. 24/2012/QH13 dated June 20, 2012 of the National Assembly on the implementation of the Law on Handling Administrative Offenses.

3. The principles of administrative offense penalties stipulated in Article 3 of this Circular shall be applied to penalize administrative offenses related to customs as prescribed in Decree No. 127/2013/NĐ-CP dated October 15, 2013 of the Government on administrative offenses penalties and enforcement of administrative decisions in the customs sector.

Article 3. Application of principles for administrative penalties

1. Individuals and organizations that commit acts violating state management regulations on customs shall be subject to administrative penalties as prescribed in the Decree stipulating administrative penalties and enforcement of administrative decisions in the field of customs or other Government Decrees on administrative penalties related to the field of customs.

Individuals and organizations that have committed administrative violations and refuse to accept goods shall still bear legal responsibility for their own committed violations according to the provisions.

2. The first violation in the field of customs referred to in Clause 2, Article 2 of this Decree is the case where individuals and organizations have not been previously administratively penalized in the field of customs or have been administratively penalized in the field of customs but more than six months have passed since the completion of the decision to impose a warning penalty, or more than one year has passed since the completion of other administrative penalty decisions or from the expiration date of the administrative penalty decision without reoffending.

3. In cases where a violation in the field of customs is the result of another violation in the same field of customs, only the violation with a heavier penalty provision shall be penalized.

Article 4. Cases Not Subject to Administrative Penalties in the Field of Customs

The application of cases not subject to administrative penalties regarding customs under Article 5 of the Decree shall be implemented as follows:

1. Goods and means of transport brought into the territory of Vietnam due to unexpected events or force majeure must notify the Customs Sub-Department, Control Team, Sea Control Squadron, Provincial or City Customs Department, local authorities nearest to the place of entry, or other competent authority as prescribed by law within no more than three days from the date of bringing goods or means of transport into the territory of Vietnam.

Failure to make such notification will be handled according to current laws.

Determination of unexpected events or force majeure shall be carried out in accordance with Clause 13 and Clause 14, Article 2 of the Law on Handling Administrative Violations.

2. Misreporting as prescribed in Clause 2, Article 5 of the Decree must be reported in writing by the sender, recipient, or their authorized representative to the customs authority, clearly stating the reasons and attaching relevant documents related to the misreporting before the customs authority decides to conduct an actual inspection of the goods or decide to waive the actual inspection of the goods; it must be accepted by the head of the customs authority receiving and processing the customs declaration. The refusal to accept misreporting by the customs authority must be done in writing, specifying the reasons.

If there is evidence indicating collusion between the sender, recipient, and/or carrier to evade taxes, illegally transport goods across borders, or engage in smuggling, the customs authority has the right to reject the acceptance of misreporting.

3. The decision to conduct an actual inspection of goods or the decision to waive the actual inspection of goods as prescribed in Clause 2, Article 5 of the Decree shall be reflected through the classification of the customs declaration in the data processing system or by the approval of the authorized person on the customs declaration.

4. The provisions of Clause 3, Article 5 of the Decree apply to cases of amending the customs declaration, supplementing the customs dossier as prescribed in Clause 2, Article 22 of the Customs Law, Clause 2, Article 34 of the Tax Administration Law, and Article 14 of Circular No. 128/2013/TT-BTC dated September 10, 2013 issued by the Ministry of Finance guiding customs procedures; customs inspection and supervision; export tax, import tax, and tax administration for exported and imported goods.

5. For cases prescribed in Clauses 4, 5, and 7 of Article 5 of the Decree:

a) At the time of discovering the violation, if sufficient grounds exist to determine that it falls under the category of non-penalization, the authorized penalty decision-maker shall only prepare a record to file the dossier;

b) If insufficient grounds exist to determine whether the violation falls under penalization or non-penalization, the customs officer on duty shall prepare an administrative violation record; based on the customs dossier, related documents, and the administrative violation record, the authorized penalty decision-maker as prescribed in Clauses 2, 3, 4, and 5 of Article 19 of the Decree shall decide on penalization or non-penalization;

c) Violations of tax laws on exported and imported goods as prescribed in Clause 4, Article 5 of the Decree include violations as prescribed in Clauses 1 and 2, Article 8, and Clauses 1 and 2, Article 13 of the Decree.

6. When there is sufficient basis to determine that the declarant has correctly declared the name of the exported or imported goods but incorrectly declared the commodity code or tax rate for the first time, the customs authority shall guide the correct commodity code and tax rate and prepare a record for certification, without imposing a penalty.

7. Incorrect declaration of the commodity code or tax rate is considered a first-time offense when meeting the following conditions:

a) The individual or organization has not yet exported or imported such goods;

b) They have not been guided or determined the commodity code or tax rate by the customs authority or have been guided but inaccurately.

8. The following situations are considered to have been guided or determined by the customs authority regarding the declaration of the commodity code or tax rate:

a) They have been guided by the customs authority to declare the commodity code or tax rate and a record of guidance on declaring the commodity code or tax rate has been prepared;

b) The customs authority has issued a document determining the commodity code or tax rate in advance;

c) The customs authority has determined the commodity code or tax rate of the goods and issued a decision to levy taxes.

9. In cases of importing goods or items that violate customs declaration regulations, as prescribed in Article 14 of the Decree, but the postal enterprise or express delivery company handles customs formalities on behalf of the consignee in accordance with the law, if there is no evidence indicating collusion between the sender, recipient, and customs formalities handler with the aim of fraud, no penalty shall be imposed.

Article 5. Determining the value of administrative violation evidence to serve as the basis for determining the fine range and penalty authority

In cases where it is necessary to determine the value of administrative violation evidence to serve as the basis for determining the fine range and penalty authority, the unit discovering the violation must determine the value of the evidence and shall be responsible for such determination.

The determination of the value of administrative violation evidence shall be carried out as follows:

1. For evidence that is not confiscated, the value of the evidence and means of violation is the customs value, determined according to current regulations on determining customs value at the time of issuing the violation record; if it is foreign currency, the exchange rate shall be determined in accordance with the provisions of the Law on Export Tax, Import Tax, and guiding documents.

2. For goods and evidence of violations that are confiscated, depending on each specific type of goods and evidence, the determination of value shall be carried out in accordance with the provisions of Article 60 of the Law on Handling Administrative Violations.

3. Any documents related to valuation must be reflected in the administrative violation case file where valuation of goods and evidence of violations has been conducted.

Article 6. Handling goods and means of violation not subject to confiscation penalties

1. Goods and means temporarily detained but not confiscated shall be returned by the person issuing the detention decision.

2. Goods and means returned shall go through customs procedures or be removed from Vietnam or re-exported in accordance with regulations; if the goods fall under the category subject to export tax, import tax, and other related taxes, they must be paid according to regulations.

Section 2

APPLICATION OF PENALTY FORMS AND AMOUNTS

Article 7. Violation of the deadline for customs procedures and submission of tax documents as stipulated in Article 6 of the Decree

1. The deadline for customs procedures specified in Article 6 of the Decree is the deadline prescribed in Article 18 of the Customs Law and other legal regulatory documents specifying deadlines for customs procedures for different types of exports and imports; means of transport exiting and entering the country.

2. In cases where an enterprise has already been penalized for failing to submit timely documents within the customs declaration file as provided for in point b, Clause 1, Article 6 of the Decree, and still fails to supplement the delayed documents, the customs authority shall consider and resolve the matter based on the existing files.

3. If the declarant requests adjustment of production quotas for processed products; export product production quotas after the specified period, and if the Head of the Customs Branch accepts the adjustment of the quota, the penalty shall be imposed in accordance with point g, Clause 2, Article 6 of the Decree.

4. The violation stipulated in points d, đ, Clause 2; points a, b, Clause 3; Clause 4, Article 6 of the Decree shall only be penalized if the permit, customs declaration, and other documents as prescribed by law specify the time for re-import or re-export.

5. The deadline specified in point b, Clause 2, Article 6 of the Decree is the deadline for reporting, settlement, finalization, and examination of contract refunds, declarations, goods, raw materials, and supplies as prescribed in legal regulatory documents on customs.

6. The determination of seating capacity for means of transportation violating Clause 4, Article 6 of the Decree shall be based on the vehicle registration certificate. In cases where the vehicle registration certificate does not indicate the seating capacity, the actual inspection and supervision of the means of transportation shall be used to determine the seating capacity.

Article 8. Violation of the provisions on customs declaration stipulated in Article 7 of the Decree.

1. In cases where there is no declaration or incorrect declaration but the goods belong to the list of humanitarian aid or non-repayable aid that has been confirmed by the Ministry of Finance or authorized agencies by the Ministry of Finance, penalties shall be imposed according to point b, Clause 1, Article 7 of the Decree.

In cases where the goods do not belong to the list confirmed by competent authorities, penalties shall be imposed based on the violation according to Article 8 of the Decree or Clause 2, Article 14 of the Decree.

2. In cases where importation does not comply with the customs declaration but the imported goods are raw materials, components, machinery, equipment, spare parts subject to tax exemption such as goods under registered processing contracts, goods under the tax-exempt list of investment projects, temporarily imported/exported goods exempt from export/import taxes, penalties shall be imposed according to point a, Clause 3, Article 7 of the Decree, except for those included in the contract or list already registered; in cases where the goods are not subject to tax exemption, penalties shall be imposed according to Article 8 or Article 13 of the Decree.

3. The provisions of Clause 3, Article 7 of the Decree shall apply in cases where incorrect declarations do not result in a reduction in the amount of tax payable or an increase in the amount of tax exempted, reduced, refunded, or not collected, and do not involve fraud or tax evasion.

4. The provisions of Clause 4, Article 7 of the Decree shall apply in cases where customs declaration and procedures are made but goods are not exported or exported less than declared. These provisions do not apply to cases where the customs declaration does not have value for customs procedures according to Clause 2, Article 18 of the Customs Law.

Article 9. Violation of the provisions on tax declaration stipulated in Article 8 of the Decree.

1. Penalties according to Article 8 of the Decree shall be applied to violations in various forms of export and import of goods leading to a reduction in the amount of tax payable or an increase in the amount of tax exempted, reduced, refunded, or not collected.

2. For acts of not declaring or incorrectly declaring the name, type, quantity, weight, quality, value, code, tax rate, origin of exported or imported goods requiring verification to clarify, if they do not fall under the cases stipulated in Clause 1, Article 13 of the Decree, penalties shall be imposed according to Article 8 of the Decree.

3. For acts of over-declaring more than the actual quantity of processed products, products produced from imported raw materials (including re-exported processed materials, production materials for re-export), and re-exported goods in terms of type, quantity, weight resulting in a tax difference below VND 100,000,000, penalties shall be imposed according to point a, Clause 2, Article 8 of the Decree. In cases where the tax difference is VND 100,000,000 or more but not reaching the level of criminal liability, penalties shall be imposed according to point đ, Clause 1, Article 13 of the Decree.

Article 10. Violation of the provisions on customs declaration by persons exiting or entering the country regarding foreign currency cash, Vietnamese dong in cash, gold stipulated in Article 9 of the Decree.

1. Violations stipulated in Article 9 of the Decree shall apply to cases where persons exit or enter the country using passports, travel permits, border identification cards violate the provisions on customs declaration; violating the regulations on carrying foreign currency cash, gold prohibited from being carried when making exit or entry procedures. Cases of illegally carrying foreign currency cash, Vietnamese dong in cash, or other gold through the border shall be penalized according to Article 12 of the Decree.

2. The value of the contraband items is the value after deducting the value of undeclared foreign currency, gold, and Vietnamese dong according to the law.

3. In cases where the violator has exited the country and left no specific address, the customs authority shall still issue a penalty decision according to the regulations, cooperate with the Department of Foreign Affairs to send the penalty decision to the violator through the embassy or consulate of the country where the violator holds citizenship to implement; in cases where the penalty decision cannot be delivered, the contraband items shall be handled according to Clause 4, Article 126 of the Administrative Violation Handling Law.

Article 11. Violations concerning customs inspection regulations, tax inspection; customs supervision; customs control as stipulated in Articles 10, 11, and 12 of the Decree.

1. The provision at point b, Clause 2, Article 10 of the Decree shall apply to cases where normative legal documents provide for sample retention, file retention, and document retention.

2. Clause 4, Article 10 of the Decree shall apply to cases where the requirements set forth by customs authorities according to relevant normative legal documents for inspection and tax inspection are not implemented.

3. When discovering violations as stipulated at point b, Clause 5, Article 10 of the Decree, the customs seal must be temporarily held on counterfeit documents, certificates, and materials. In cases where these papers are permits, they must be notified in writing to the issuing authority.

4. Violations concerning the transportation of goods in transit, transshipment, diversion, border crossing, temporary importation-reexportation not in accordance with the prescribed routes, locations, border gates, time periods, or registered in the customs declaration without explanation or explanation that lacks credible justification and is not accepted by the Head of the Customs Branch shall be penalized as provided for at point a, Clause 1, Article 11 of the Decree.

5. The provisions at points d and đ, Clause 1, Article 11 of the Decree shall only apply to cases where the contraband has not been disposed of or consumed. If the contraband has been disposed of or consumed, penalties shall be imposed as provided for at points a and b, Clause 2, points a and b, Clause 3, Article 11 or point d, Clause 5, Article 12 of the Decree.

6. Regarding violations as stipulated in Clause 2, Article 12 of the Decree:

a) Violations as stipulated in Clause 2, Article 12 of the Decree committed by individuals under 14 years old shall result in the issuance of an administrative violation record and a decision to confiscate or destroy the contraband.

b) In cases where goods transported illegally across borders or without lawful documents as stipulated in Clause 2, Article 12 of the Decree are discovered but the violator flees, leaving behind contraband and means of transport, if the violator can be identified (name, address of the individual or organization), then an administrative violation record shall be established in accordance with Article 58 of the Law on Handling Administrative Violations; if the violator cannot be identified, the owner of the contraband or means of transport cannot be determined, then an evidence record shall be established to document the incident and handle the contraband according to the regulations.

Article 12. Penalties for acts of tax evasion and fraudulent tax as stipulated in Article 13 of the Decree.

1. Documents and materials referred to in point a, Clause 1, Article 13 of the Decree include those submitted or presented to customs authorities during the customs procedures process and after clearance, serving as the basis for determining or proving the amount of tax payable.

2. Acts of failing to declare or incorrectly declaring the name of goods, type, quantity, weight, quality, value, commodity code, tariff rate, origin of exported or imported goods discovered after clearance, where the violator does not voluntarily pay the full tax or has not paid the full tax as required before the customs authority issues an administrative violation record, shall be penalized as provided for at point c, Clause 1, Article 13 of the Decree.

3. Violations related to export goods being processing products, products produced from imported raw materials, including re-exported processed materials and imported raw materials for re-export production: In cases where export procedures are carried out but the goods are not exported, penalties shall be imposed as provided for at point d, Clause 1, Article 13 of the Decree. This provision does not apply to cases where the customs declaration does not have the validity to carry out customs procedures as stipulated in Clause 2, Article 18 of the Customs Law.

4. The provision at point l, Clause 1, Article 13 of the Decree shall apply when the customs authority has sufficient grounds to determine that the taxpayer knows clearly about the actual export or import of goods but fails to declare or incorrectly declares to evade taxes or commit fraudulent tax.

The basis for determining the difference in tax amount for under-declaration of the tax payable or increase in tax exempted, reduced, refunded; tax evasion, fraudulent tax is: the declaration of the taxpayer and the tax assessment decision of the authorized person or the amount of tax payable as prescribed.

Article 13. Violations related to permits, export and import conditions

1. The permits, conditions, standards, and technical regulations mentioned in Article 14 of the Decree are those specified in the Government's Decree detailing the implementation of the Trade Law, guiding documents, and other regulatory legal documents that provide for permits, conditions, standards, and technical regulations for exported and imported goods.

2. In cases where goods listed in the import permit directory of the Ministry of Industry and Trade or managed by specialized ministries (not included in the prohibited import list), if the importer has not completed customs procedures within the prescribed time limit but requests re-export instead of importing, they shall not be subject to penalties.

3. For exported and imported goods that require permits, if enterprises present valid permits but the actual quantity and weight of the goods exceed the permitted quantities and weights stated on the permits, the excess goods will be penalized for exporting or importing goods without permits.

4. Violations related to import permits, export and import conditions involving goods exchanged by border residents, humanitarian aid goods, gifts, movable assets, goods of persons exiting or entering the country; transit and transshipment goods will be penalized according to the provisions of Clauses 1, 2, 3, and 4 of Article 14 of the Decree; other cases will be penalized according to Clause 5 of Article 14 of the Decree.

5. For violations related to import permits, conditions, standards, and technical regulations stipulated in Clause 3; Clause 4; Points c and d of Clause 5 of Article 14 of the Decree, if before the date of the penalty decision, the competent state agency has granted permission to import, then measures to mitigate adverse effects such as compulsory removal from Vietnam’s territory shall not be applied.

If a penalty decision and the measure to mitigate adverse effects "compulsory removal from Vietnam’s territory or compulsory re-export" have been issued, but within thirty days from the date of receiving the penalty decision, the competent state agency grants permission to import and the goods have not yet been removed from Vietnam, then permission to import may be granted.

Article 14. Violations concerning bonded warehouses and duty-free warehouses

If the consignor fails to extend the warehouse rental contract as required by law, does not notify the customs authority, and does not remove goods from the bonded warehouse when the bonded warehouse rental contract expires, they will be penalized according to Clause 1 of Article 15 of the Decree, and the goods will be handled according to Clause 4 of Article 24 of Decree No. 154/2005/NĐ-CP dated December 15, 2005.

Article 15. Handling violations by State Treasury, credit organizations, and related organizations and individuals

1. Clause 1 of Article 16 of the Decree applies to cases where more than ten days have passed since the expiration of the deadline for deducting funds from an account, and the State Treasury or credit organization has not deducted or transferred the full or corresponding portion of the amount due from the account of the organization or individual subject to administrative enforcement orders into the state budget account or the customs authority's deposit account at the State Treasury as requested by the customs authority, provided that at the time of receiving the enforcement order, the account of the person subject to enforcement had sufficient or excess balance compared to the tax and fine amounts due.

2. The provisions of Clause 3 of Article 16 of the Decree do not apply to organizations and individuals who are taxpayers. Organizations and individuals who are taxpayers and violate the regulations on providing information will be penalized according to Point b of Clause 3 of Article 10 of the Decree.

Section 3

IMPLEMENTATION OF MEASURES TO PREVENT VIOLATIONS

ADMINISTRATIVE PENALTIES AND ENSURING THE ENFORCEMENT OF VIOLATIONS

ADMINISTRATIVE PENALTIES, PENALTY AUTHORITY

Article 16. Application of preventive measures and assurance for administrative violation penalties.

1. When implementing preventive measures against administrative violations and ensuring the imposition of administrative violation penalties, it must comply with the principles, procedures, formalities, and authorities prescribed from Article 119 to Article 132 of the Law on Handling Administrative Violations and Article 17 of the Decree.

2. In cases where through the risk management system or related information, there is evidence that an individual is concealing drugs on their person, the authorized authority may directly conduct a body search or use technical means and equipment to carry out such a search.

3. Temporary detention of objects and means of transportation involved in administrative violations when the violation exceeds the penalty authority of the Director of the General Department of Customs, the Director of the Anti-Smuggling Investigation Department, or the Director of the Post-Clearance Audit Department:

The authorized authorities to impose penalties as stipulated in Clause 3 and Clause 4 of Article 19 of the Decree shall issue decisions on temporary detention of objects and means of transportation involved in administrative violations according to Clause 1 of Article 125 of the Law on Handling Administrative Violations; they are responsible for preserving the objects and means of transportation involved in administrative violations according to the provisions of the Law on Handling Administrative Violations and shall handle these objects and means of transportation according to the decision of the authorized authority.

Article 17. Inspection of conveyances and items according to administrative procedures.

1. The inspection of conveyances and items of individuals enjoying privileges and immunities must comply with the provisions of international treaties to which Vietnam is a party and must be based on a decision of the Director-General of the General Department of Customs.

2. If there is a basis to confirm that the baggage of persons exiting or entering the country who enjoy privileges and immunities contains items not entitled to such privileges, or items prohibited from export or import by the Vietnamese State, or items that do not comply with Vietnamese quarantine regulations, the inspection shall be carried out according to the decision of the Director-General of the General Department of Customs, in the presence of diplomatic officials or persons authorized to represent them.

Article 18. Determination of Penalty Authority.

1. The authority to impose fines for violations of tax laws as stipulated in Article 8, Article 13, and point a of Clause 1 of Article 16 of the Decree for those specified in Clause 7 of Article 19 of the Decree shall be determined according to the Decree, without limiting the maximum amount of the fine.

2. For administrative violations involving multiple customs units, the unit that first discovers and records the administrative violation shall issue the penalty decision; other related units shall have the responsibility to transfer all necessary documents to the unit handling the violation case upon request.

3. Handling of violations related to goods transferred at border gates and goods traded under temporary import-re-export at different border gates:

a) Violations related to goods transferred at border gates and goods traded under temporary import-re-export discovered by the Border Gate Customs Sub-department, if there are signs of criminal activity, the Border Gate Customs Sub-department shall request the Customs Sub-department where the declaration was opened to transfer all relevant files for criminal proceedings;

b) Goods transferred at border gates and goods traded under temporary import-re-export that involve administrative violations shall be transferred by the Border Gate Customs Sub-department to the Customs Sub-department where the declaration was opened for punishment within its authority. If the confiscated objects are prohibited imports, hazardous waste, or disease-spreading materials found at the border gate, the Customs Sub-department where the declaration was opened shall transfer the files to the Border Gate Customs Sub-department for punishment within its authority;

c) Within five days from the date of issuing the handling decision, the Customs Sub-department primarily responsible for handling must notify the results of the handling to the related customs units.

4. Upon discovering violations in the customs field, the authority imposing penalties must compare with the provisions of the Criminal Code to determine whether it is an administrative violation or a criminal offense. In cases where there are signs of a crime, the provisions of criminal procedure law shall apply. For signs of tax evasion, within ten days from the date of discovery, the file must be transferred to the competent authority for investigation according to the regulations.

5. For violations discovered and seized by units under the Anti-Smuggling Investigation Department that exceed the penalty authority of the Anti-Smuggling Control Team Leader, the Intellectual Property Protection Control Team Leader, and the Sea Control Squadron Leader under the Anti-Smuggling Investigation Department, the penalty authority shall be exercised by the Director of the Anti-Smuggling Investigation Department under the General Department of Customs according to the regulations.

6. In cases where the main form of penalty (fine) falls within the penalty authority of the customs agency, but supplementary forms of penalty or remedial measures do not fall within its authority, the agency handling the violation case must immediately transfer the file to the competent authority for punishment according to the regulations.

7. For administrative violations in the customs field where the form, level of punishment, value of confiscated objects and means of transportation involved in administrative violations, and remedial measures exceed the penalty authority, the Director of the General Department of Customs, the Director of the Anti-Smuggling Investigation Department, and the Director of the Post-Clearance Audit Department shall themselves or through the local Customs Department make the necessary procedures to report the file to the provincial people's committee (hereinafter referred to as the provincial people's committee) where the violation occurred for the Chairman of the provincial people's committee to issue a penalty decision.

Article 19. Transfer of Administrative Violation Handling Authority

1. The transfer of administrative violation handling authority for positions specified in Clauses 2, 3, 4, 5, and Clause 7 of Article 19 of the Decree shall only be implemented for deputy levels. The transfer of authority must be carried out in writing. In the document transferring authority, the scope, content, and duration of the transfer must be clearly defined. For cases involving the temporary detention of individuals under administrative procedures, the transfer of authority can only be implemented when the head is absent.

Deputies who are granted administrative violation handling authority are responsible under the law and to their superiors for their handling of administrative violations and may not delegate this authority to any other individual.

2. Decision on task allocation and internal management of units shall not be used to replace the document transferring administrative violation handling authority.

Section 4

PROCEDURES FOR ADMINISTRATIVE VIOLATION PENALTIES AND IMPLEMENTATION OF DECISIONS ON ADMINISTRATIVE VIOLATION PENALTIES

DECISION ON ADMINISTRATIVE PENALTY

Article 20. Establishment of Administrative Violation Records

The establishment of administrative violation records and the authority to establish such records shall be carried out in accordance with Article 58 of the Law on Handling Administrative Violations, Article 6 of Decree No. 81/2013/ND-CP dated July 19, 2013 of the Government detailing certain provisions and measures for implementing the Law on Handling Administrative Violations, and Article 18 of Decree No. 127/2013/ND-CP dated October 15, 2013 of the Government regarding penalties for administrative violations and enforcement of administrative decisions in the customs sector.

Article 21. Transfer of Case Files for Administrative Violation Penalties and Extension of Time Limit for Issuing Penalty Decisions for Cases Exceeding the Penalty Authority of the Customs Bureau Director, Anti-Smuggling Investigation Bureau Director, and Post-Clearance Audit Bureau Director

1. When transferring case files of customs administrative violations to report to the Chairman of the People's Committee of the province or city for penalty implementation within their authority, the transfer of case files must be conducted according to regulations. The time limit for transferring case files is as follows:

Within no more than five (5) days from the date of establishing the administrative violation record, the Director of the Customs Bureau, the Director of the Anti-Smuggling Investigation Bureau, and the Director of the Post-Clearance Audit Bureau must submit the case file and recommendations for penalty forms to the Chairman of the provincial People's Committee for consideration and decision.

For complex administrative violation cases that do not fall under the explanation circumstances or those that fall under the explanation circumstances stipulated in Clauses 2 and 3 of Article 61 of the Law on Handling Administrative Violations, the above time limit shall not exceed twenty (20) days from the date of establishing the administrative violation record. If there are seized items, the customs authority is responsible for managing and disposing of them in accordance with Articles 82 and 126 of the Law on Handling Administrative Violations.

2. For particularly serious cases with many complex circumstances falling under the explanation circumstances stipulated in Clauses 2 and 3 of Article 61 of the Law on Handling Administrative Violations, which require additional time for investigation and evidence collection to determine the violation, the Director of the Customs Bureau, the Director of the Anti-Smuggling Investigation Bureau, and the Director of the Post-Clearance Audit Bureau shall report to the General Director of the General Customs Department to request an extension of the time limit for issuing penalty decisions.

Article 22. Transfer of files for criminal proceedings

1. When examining a violation to impose administrative sanctions, if the competent authority cannot distinguish whether it is an administrative or criminal violation, they shall send a written exchange of opinions along with copies of the case file to relevant criminal prosecution agencies (People's Procuracy or investigation agency) before issuing an administrative sanction decision or transferring the case for criminal proceedings. Within ten days from the date of sending the written exchange of opinions along with the file, if the criminal prosecution agency does not respond, the competent authority handling the violation shall proceed with the administrative sanction according to regulations, then notify the agency that exchanged opinions of the decision.

In cases where the criminal prosecution agency requests the transfer of the file for examination and handling, it shall be implemented in accordance with Article 62 of the Law on Handling Administrative Violations.

2. If the violation has signs of a crime, the competent authority imposing the administrative sanction must transfer the file to the competent authority for examination to initiate a criminal case (for crimes stipulated in Articles 153 and 154 of the Criminal Code) or transfer the file to request the criminal prosecution agency to examine and initiate a criminal case for other violations of criminal law.

3. In cases where the criminal prosecution agency notifies the decision to initiate a criminal case, the customs agency must transfer the original violation file to the competent criminal prosecution agency within five days from the date of receipt of the notification.

Article 23. Issuance of Administrative Sanction Decision

1. When imposing an administrative sanction in the customs area through a warning or a fine up to VND 250,000 for individuals or VND 500,000 for organizations, the competent authority imposing the sanction shall issue the administrative sanction decision on the spot.

2. The administrative sanction decision takes effect from the date of signature, except when another effective date is specified in the decision. Within ten days from the date of receiving the administrative sanction decision, the individual or organization being sanctioned must comply with the decision.

3. The issuance of the administrative sanction decision shall be carried out in accordance with Articles 67 and 68 of the Law on Handling Administrative Violations and Article 6 of Decree No. 81/2013/NĐ-CP dated July 19, 2013 of the Government detailing some provisions and measures to implement the Law on Handling Administrative Violations.

4. The deadline for issuing the administrative sanction decision is seven days from the date of recording the administrative violation.

For complex administrative violations with many circumstances not falling under the explanation or for cases falling under the explanation provided in Clause 2 and Clause 3 of Article 61 of the Law on Handling Administrative Violations, the maximum deadline for issuing the administrative sanction decision is thirty days from the date of recording the administrative violation.

In cases of particularly serious matters with many complex circumstances and falling under the explanation provided in Point 2 of Clause 2 and Clause 3 of Article 61 of the Law on Handling Administrative Violations, and requiring additional time for verification and evidence collection, at least ten days before the deadline for issuing the administrative sanction decision expires, the authority handling the matter must report in writing to their direct superior requesting an extension; the extension must be in writing and not exceed thirty days.

5. Diplomatic officials or consular officials who abuse privileges and immunities to engage in commercial activities outside their functions and violate customs regulations shall consult with the diplomatic or consular agency of the country of the violator before imposing sanctions.

Article 24. Enforcement of Administrative Penalty Decisions

1. The enforcement of administrative penalty decisions shall be carried out in accordance with the provisions of Section 2, Chapter III, Part II of the Law on Handling Administrative Violations.

2. The authority issuing the administrative penalty decision shall be responsible for monitoring, inspecting, urging the violator to comply with the administrative penalty decision and issuing a compulsory enforcement decision in case the administrative penalty decision is not implemented within the prescribed time limit.

3. In cases where the administrative penalty decisions are issued by the Chairman of the Provincial People's Committee, the head of the unit transferring the violation dossier shall be responsible for monitoring the enforcement of the administrative penalty decision and reporting the implementation status of the decision to the Chairman of the Provincial People's Committee.

If the administrative penalty decision is not implemented within the prescribed time limit, these individuals shall be responsible for proposing the application of coercive measures for the Chairman of the Provincial People's Committee to issue a compulsory enforcement decision.

Article 25. Management of Revenue from Administrative Penalties

All revenue from administrative penalties (including fines paid for administrative violations, late payment fees for delayed execution of fine decisions, proceeds from the sale or liquidation of confiscated contraband goods and other amounts) must be deposited into a temporary account opened at the State Treasury by the customs authority in accordance with current regulations. After the deadline for appeals has expired or the appeal has been resolved, based on the results of the handling, the customs authority shall transfer the amount from the temporary account to the State Budget in accordance with the provisions of the State Budget Law.

Article 26. Supervision of Removal from Vietnam and Re-export of Contraband Goods

Contraband goods that are required to be removed from Vietnam or re-exported must be closely monitored from the place of storage to the re-export customs checkpoint.

The supervision results must be confirmed in writing by the customs checkpoint and sent back to the decision-making authority within five days from the date the goods have been removed from Vietnam or re-exported for record-keeping purposes.

Article 27. Handling Late Payment of Fines

Individuals or organizations subject to administrative penalties related to customs who fail to pay fines within the prescribed time limit for executing the administrative penalty decision, in addition to paying the full amount of the fine, must also pay an additional 0.05% per day on the outstanding fine amount for each day of delay.

The time taken to consider and decide on reductions, exemptions, or installment payments of the remaining fine does not count as a period of late payment.

Chapter II

COMPULSORY ENFORCEMENT OF ADMINISTRATIVE DECISIONS

IN THE CUSTOMS FIELD

Section 1

GENERAL PROVISIONS

Article 28. Scope of Application

This chapter provides detailed implementation of certain provisions of Chapter II of Decree No. 127/2013/NĐ-CP dated October 15, 2013, of the Government on administrative penalties and compulsory enforcement of administrative decisions in the customs field.

Article 29. Monitoring and Urging Collection of Tax and Fine Debts

1. Customs authorities at all levels shall be responsible for monitoring and managing debtors of tax and fine debts; regularly classifying debtors and debts to urge and collect debts before applying coercive measures.

Forms of urging and collecting tax and fine debts:

a) Sending notifications requesting taxpayers and guarantors to pay off their tax and fine debts;

b) Visiting the taxpayer's office to collect tax and fine debts;

c) Publishing lists of overdue tax and fine debtors on the network system;

d) Publicizing tax and fine debtors, amounts owed, and fines on mass media.

2. Taxpayers and guarantors who still owe taxes and fines upon receiving a notification from the customs authority about the tax and fine debts must promptly pay off the full amount of taxes and fines as stipulated by law. If they fail to do so within the time limit specified in Article 26 of this Decree, coercive measures as provided in Article 27 of this Decree will be applied.

Article 30. Forced execution in cases of tax determination for goods that have been cleared

In cases where taxes are determined after goods have been cleared, if within ninety days from the date of issuance of the tax determination decision, the taxpayer or guarantor does not voluntarily comply with the tax determination decision, the Customs authority shall implement forced execution according to regulations.

Article 31. Issuing a forced execution decision

1. The person authorized to issue a forced execution decision must promptly verify information and issue a forced execution decision to enforce administrative decisions in the customs field for cases where the deadline has expired and the taxpayer or guarantor; individuals, organizations violating administrative regulations do not voluntarily comply with administrative decisions in the customs field or engage in acts of dispersing assets, fleeing.

2. In cases where a forced execution decision is issued for a measure that has become ineffective, if the person authorized to issue the forced execution decision has grounds to believe that the forced execution measure can still be applied and collect the overdue tax, fines, and late payment fees, they shall issue another decision to replace the expired decision to continue implementing the forced execution measure.

Documents and materials serving as the basis for issuing the forced execution decision must be kept in the case file.

Article 32. Organizing the Implementation of the Forced Execution Decision

1. The person issuing the forced execution decision to enforce administrative decisions in the customs field is responsible for organizing the implementation of that forced execution decision.

2. For forced execution decisions issued by the Chairman of the People's Committee of provinces or cities, the Director of the General Department of Customs, the Director of the Anti-Smuggling Investigation Department, and the Director of the Post-Clearance Control Department at the location proposing the issuance of the forced execution decision shall be responsible for organizing the implementation of the forced execution decision and reporting the results to the Chairman of the People's Committee of provinces or cities.

3. In cases where the seizure of assets; collection of money, assets held by other organizations or individuals located in different areas, the Director of the General Department of Customs at the location managing the area shall be responsible for coordinating with the Customs unit that issued the Forced Execution Decision or the Customs unit responsible for organizing the implementation of the forced execution decision of the Chairman of the People's Committee of provinces to organize the enforcement of the forced execution decision.

Article 33. Not Implementing Forced Measures; Temporarily Suspending Application of Forced Measures to Stop Customs Procedures

1. Cases where forced measures are not implemented; temporarily suspending application of forced measures to stop customs procedures:

a) Taxpayers subject to forced measures are allowed by the Customs authority to gradually pay off overdue taxes in accordance with Article 39 of Decree No. 83/2013/ND-CP dated July 22, 2013, of the Government detailing the implementation of certain provisions of the Law on Tax Administration and the Law amending and supplementing certain provisions of the Law on Tax Administration;

b) Taxpayers who have been temporarily suspended from applying forced measures to stop customs procedures in accordance with Clause 5 of Article 46 of the Decree.

2. Procedures and authority to handle:

2.1. For cases of gradually paying off overdue taxes carried out in accordance with Article 39 of Decree No. 83/2013/ND-CP dated July 22, 2013, of the Government detailing the implementation of certain provisions of the Law on Tax Administration and the Law amending and supplementing certain provisions of the Law on Tax Administration and Article 132 of Circular No. 128/2013/TT-BTC dated September 10, 2013, of the Ministry of Finance guiding customs procedures; customs inspection and supervision; export duties, import duties, and tax management for exported and imported goods.

2.2. For cases of temporarily suspending application of forced measures to stop customs procedures for exported and imported goods as stipulated in Clause 5 of Article 46 of the Decree:

a) The taxpayer subject to forced measures submits a request for temporary suspension of forced measures to the General Department of Customs where the tax debt subject to forced measures to stop customs procedures was generated, accompanied by a letter of guarantee from a credit institution for the remaining tax, late payment fees, and penalties;

b) The General Department of Customs where the taxpayer has the tax debt subject to forced measures to stop customs procedures receives and checks the accuracy and completeness of the dossier and reports and proposes to the General Department of Customs within five working days from the date of receiving the complete dossier;

If the dossier is incomplete, within three working days from the date of receiving the dossier, the Customs authority receiving the dossier must notify the taxpayer to complete the dossier.

c) The General Department of Customs bases its review of the dossier, solicits opinions from related units (if any), and reports to the Ministry of Finance within a maximum of seven working days from the date of receiving the complete dossier;

d) The Ministry of Finance considers and resolves the temporary release from forced measures to stop customs procedures for each specific case based on the proposal of the General Department of Customs within five working days from the date of receiving the report of the General Department of Customs;

e) The Customs authority issuing the forced execution decision bases the temporary suspension of the forced measures to stop customs procedures on the document temporarily releasing forced measures to stop customs procedures from the Ministry of Finance.

3. The document temporarily suspending the enforcement of the forced execution decision to enforce administrative tax decisions in the customs field for cases where the Customs authority allows gradual payment of overdue taxes and cases of temporarily suspending application of forced measures to stop customs procedures shall be implemented according to the model decision (QD-59) issued together with this Circular.

Article 34. Forced execution in cases where taxpayers have not complied with administrative tax decisions in the customs sector and have engaged in acts of fleeing or disposing of assets

1. Signs of fleeing or disposing of assets

a) Signs of fleeing:

The taxpayer who has not complied with the administrative tax decision is no longer operating at the registered business location, confirmed by the People's Committee of the commune, ward, town, or residential area where the subject of forced execution had business activities, or according to the notification from the tax authority regarding the cessation of operations of the subject of forced execution (including cases of dissolution not in accordance with the procedures stipulated in the Enterprise Law);

b) Signs of disposing of assets:

The taxpayer who has not complied with the administrative tax decision carries out procedures for transferring, giving away, selling assets, clearing, disposing of account balances in an unusual manner unrelated to normal transactions, or through inspection at the enterprise, there are no goods remaining.

2. The person authorized to issue the forced execution decision shall base on verified information and issue a decision to apply appropriate forced execution measures according to the procedures and formalities specified in Chapter II of the Decree and the provisions of this Circular to collect all taxes, fines, and late payment fees (if any) into the State budget.

Article 35. Costs for enforcing administrative decisions

1. The contents of costs for forced execution activities as prescribed in Article 37 of the Decree are specifically as follows:

a) Costs for mobilizing personnel to implement the forced execution decision: expenses for agencies, organizations, and individuals directly participating in the enforcement of administrative decisions such as: the person issuing the forced execution decision, enforcement officers, security police, medical staff, local government representatives, social organization representatives...;

b) Costs for asset valuation and auction: remuneration for members of the valuation committee; inspection costs for assets (if any); rental fees for venues and means to organize auctions, posting notices, costs for revaluation of assets; costs for publishing auction announcements on mass media; costs for renting storage or preservation of assets; rental fees for transporting items and assets for the enforcement of forced execution decisions;

c) Costs for renting equipment for dismantling, transporting items, and assets; costs for purchasing fuel, renting means and protective equipment, necessary medical equipment to serve the enforcement of forced execution decisions;

d) Costs for storing or preserving seized assets;

đ) Fire prevention and explosion control costs (if any): rental of fire trucks, rental of fire prevention and extinguishing equipment, rental of mine detection and clearance equipment, and other necessary fire prevention and explosion control means;

e) Costs for publishing information about tax debtors on mass media;

g) Other actual costs serving the enforcement of forced execution decisions (if any).

2. Levels of expenditure

a) These costs: rental for storing or preserving assets; asset inspection; rental fees for venues and means to organize auctions; costs for publishing auction announcements on mass media; rental fees for transporting items and assets for the enforcement of forced execution decisions... are implemented based on contracts, invoices, and valid expense receipts in accordance with regulations;

b) Other costs: the level of expenditure is carried out according to the general regulations of the state;

In cases where the state has not provided regulations, the person organizing the implementation of the forced execution decision determines the actual cost accompanied by valid invoices and receipts and bears responsibility for their decision.

3. Sources of funds to cover enforcement costs

The costs for forced execution are borne by the subject of forced execution.

The Customs Office issuing the forced execution decision prepares a budget for enforcement costs simultaneously with the issuance of the forced execution decision and is settled upon completion of the enforcement case.

In cases where the enforcement costs are borne by the subject of forced execution but the Customs Office has not yet collected the money, the Customs Office may temporarily borrow from its operational funds and be reimbursed immediately after collecting the money from the subject of administrative forced execution. The amount borrowed shall not exceed VND 100,000,000 (one hundred million). For cases with high enforcement costs, if the permitted amount of temporary borrowing is insufficient, the person issuing the forced execution decision shall report to the higher-level Customs Office for consideration and resolution on a case-by-case basis.

Article 36. Exemption and Reduction of Enforcement Costs

1. Individuals subject to enforcement may be considered for exemption or reduction of enforcement costs if they fall under any of the following circumstances:

a) Economic hardship: Individuals experiencing economic hardship are those whose income does not meet the minimum living standard necessary for their normal livelihood or who have been in a particularly difficult economic situation for an extended period due to natural disasters or fire. The minimum income level is the income that does not fall within the taxable income range for high-income individuals.

b) Belonging to policy families or having made contributions to the revolution;

c) Being single, disabled, or suffering from prolonged illness.

2. Procedures for Exemption and Reduction of Enforcement Costs:

To be considered for exemption or reduction of enforcement costs, individuals must submit a request for such consideration and send it to the customs authority issuing the enforcement decision.

The accompanying dossier includes:

a) For individuals subject to enforcement due to economic hardship caused by natural disasters or fire, there must be confirmation from the People's Committee of the commune where they reside or from the head of the agency or organization where they work;

b) For individuals subject to enforcement whose income does not meet the minimum living standard necessary for their normal livelihood and belong to policy families or have made contributions to the revolution, they must follow the procedures and dossiers as guided by current laws regarding the recognition and resolution of benefits for martyrs and their families, war invalids, and persons receiving benefits equivalent to war invalids;

c) For individuals subject to enforcement who are disabled or suffer from prolonged illness, a medical examination board or a competent health authority must issue a confirmation document according to the regulations of the Ministry of Health.

3. Levels of Exemption and Reduction of Enforcement Costs:

a) Individuals subject to enforcement who have partially paid the enforcement costs but have fallen into a particularly difficult economic situation due to natural disasters or fire will be considered for reduction of the remaining enforcement costs;

b) In other cases, a fifty percent (50%) reduction of the enforcement costs will be considered.

4. The person issuing the enforcement decision shall accept the application and accompanying dossier, review, and decide on the exemption or reduction of enforcement costs within five (5) working days.

If the enforcement decision-making body decides to exempt or reduce enforcement costs, these costs will be covered from the operational budget of the unit.

5. The decision on exemption or reduction of enforcement costs will be revoked if it is discovered that the individual subject to enforcement has engaged in acts of dissipating or concealing money or assets to avoid verification of specific conditions for enforcement.

Section 2

ENFORCEMENT MEASURES AND PROCEDURES

FOR THE ENFORCEMENT OF ADMINISTRATIVE TAX DECISIONS

IN THE CUSTOMS FIELD

Article 37. Enforcement by Withdrawing Funds from the Account of the Individual Subject to Enforcement at the State Treasury, Commercial Banks, or Other Credit Institutions; Request for Account Freezing

1. The individual subject to enforcement of administrative tax decisions and organizations or individuals holding funds of the individual subject to enforcement have the obligation to provide the authorized decision-maker with information about the account such as: location of the account opening, account number and code, current balance, and other relevant information about the individual subject to enforcement upon receipt of a request from the authorized decision-maker.

2. Based on existing databases, outstanding tax debts, fines, late payment penalties exceeding ninety (90) days, and verified and collected information, the authorized decision-maker shall issue a decision to enforce by withdrawing funds from the account of the individual subject to enforcement at the State Treasury, Commercial Banks, or other credit institutions, or decide to proceed with subsequent enforcement measures if the deadline specified in Clause 1 of Article 40 of the Decree is exceeded or if the account has no remaining balance.

3. In cases where the account balance is less than the amount to be withdrawn from the account of the individual subject to enforcement, the State Treasury, Commercial Banks, or credit institutions must still withdraw and transfer the available amount; continue to withdraw and transfer the remaining amount when there are transactions through the account of the individual subject to enforcement during the validity period of the decision.

4. In cases where there is information indicating that individuals or organizations have not complied with administrative tax decisions in the customs field and have engaged in asset dissipation or flight, the authorized decision-maker issuing the enforcement decision shall issue an enforcement decision clearly stating the requirement or issue a document (if a previous enforcement decision has already been issued) requesting the State Treasury, Commercial Banks, or other credit institutions to implement the measure of withdrawing funds from the account of the individual subject to enforcement of administrative decisions.

Article 38. Forced Execution by Deducting Part of Wages or Income

1. Based on the results of verification, the person authorized to issue the forced execution decision shall handle as follows:

a) Issue a decision for forced execution by deducting part of wages or income from the individual subject to enforcement if the individual has legitimate income;

b) Decide to proceed with the next enforcement measure if the individual subject to enforcement does not have legitimate income or within three working days from the date of receiving the request from the person authorized to issue the enforcement decision, the individual subject to enforcement, the organization or individual paying wages or income, and related organizations or individuals do not provide information about the wages and income of the individual subject to enforcement to the person authorized to issue the enforcement decision.

2. The total amount of wages and other income items serving as the basis for deduction includes all wage amounts, items having the nature of wages, and other legitimate income arising in the month.

Article 39. Forced Execution by Suspending Customs Procedures for Exported and Imported Goods

1. The person authorized to issue the enforcement decision bases on existing databases, verified information, and the results of forced execution measures such as withdrawing money from the account of the enforcement target at the state treasury, commercial banks, or other credit institutions; based on the results of forced execution by deducting part of wages or income, the decision for forced execution by suspending customs procedures for exported and imported goods is issued.

2. The person issuing the enforcement decision is responsible for publicly announcing the decision for forced execution by suspending customs procedures for exported and imported goods on the electronic portal of the customs sector within the time limit specified in Clause 3 of Article 46 of the Decree.

Article 40. Forced Execution by Seizing Assets and Auctioning Seized Assets in Accordance with the Law

1. Verify information about the assets of the enforcement target

a) The person authorized to issue the enforcement decision has the right to send a document to the enforcement target; the agency registering property rights; the agency registering security transactions, and related organizations or individuals to verify the assets;

b) The person authorized to issue the enforcement decision has the right to verify the assets of the enforcement target at the location where the enforcement target operates or resides; the agency registering property rights; the agency registering security transactions, and related organizations or individuals;

c) Verified information includes: identified assets, the value of identified assets reflected in the accounting books of the enforcement target, production and business results (for production and service businesses) or economic conditions (for non-business individuals); For assets that must be registered and transferred ownership, the verification should be based on purchase-sale contracts, conversion contracts, transfer contracts, or gift deeds, and certificates of asset ownership rights, which should be verified through the owner, local authorities, competent agencies, or witnesses such as confirmation by the seller, local authorities, or competent agencies regarding the sale transaction;

Verification must be recorded in a record, clearly stating the content of the verification, and signed by the person or agency providing the information;

d) Information verified for assets that must be registered and transferred ownership can be widely announced so that those with rights and obligations are informed and protect their interests;

đ) For legally pledged or mortgaged assets that cannot be seized according to Article 49 of the Decree, the agency conducting the seizure must notify the pledgee or mortgagee of the enforcement target's obligations and request the pledgee or mortgagee to promptly inform the agency seizing the asset when the pledgor or mortgagor fulfills the pledge or mortgage contract obligations;

e) The person authorized to issue the enforcement decision, after verifying the assets of the taxpayer at the above locations, must determine the amount of money that can be collected into the state budget through this enforcement measure by estimating the value of these assets after auction;

If it is determined that the amount obtained from the enforcement activity is insufficient to cover the enforcement costs, report to the superior agency to temporarily suspend the issuance of the enforcement decision (except in cases exempted or reduced enforcement decision implementation fees as stipulated in Clause 4 of Article 36 of this Circular);

g) If within five working days from the date of sending the asset verification document to the enforcement target; the agency registering property rights; the agency registering security transactions, and related organizations or individuals do not provide or provide incomplete information about the assets, or if it is determined that the enforcement amount is insufficient to cover the enforcement costs, proceed with the next enforcement measure;

2. When issuing a decision for forced execution by seizing assets for registered ownership assets, the person organizing the seizure must immediately notify the following agencies of the asset seizure:

a) The land registration office, the agency authorized to register assets attached to land, in the case of seizing land use rights and assets attached to land;

b) The agency registering motor vehicles, in the case of seized motor vehicles;

c) Other agencies authorized to register ownership and use according to the law;

3. Procedure for Implementing the Asset Seizure Measure

a) Asset seizure must be carried out during daylight hours and within regular working hours applicable in the area where the asset is located, except in cases where the enforcement target is found to be fleeing, disposing of, or destroying assets, the person authorized to issue the enforcement decision may immediately organize the seizure of assets to prevent such actions by the enforcement target.

b) In the case where the property being seized is a house or an item that is locked or packed, the person organizing the seizure shall request the object subject to enforcement, the user, or the manager of the property to unlock or unpack it; if the object subject to enforcement, the user, or the manager of the property does not unlock or unpack it or intentionally absents themselves, then the organization implementing the enforcement decision shall prepare a record (with representatives from local authorities and witnesses) unlocking or unpacking to inspect and list the specific properties and seize them according to the provisions of the law.

c) From the time of receiving the notification of the property seizure, the agency registering ownership or usage rights of the property shall not carry out registration for the transfer of such property, except in cases where the law provides otherwise.

Within a period not exceeding three (3) working days from the date of lifting the seizure of the property or completing the sale or delivery of the seized property for enforcement of the administrative tax decision, the person organizing the seizure must notify the agency registering ownership of the property and the agency registering security transactions referred to in point c, Clause 3, Article of this Law.

4. Some specific cases when conducting seizures

a) Only seize land use rights, houses, or offices of the object subject to enforcement if, after seizing all other assets, there is still insufficient amount to enforce the enforcement decision.

b) Only seize the assets of the object subject to enforcement sufficient to ensure the enforcement of the enforcement decision and cover the costs of enforcement. In the case where the object subject to enforcement only has one asset with a value greater than the obligation under the enforcement decision and cannot be divided or dividing it will significantly reduce its value, the person organizing the seizure still has the right to seize such asset to ensure the enforcement of the enforcement decision.

c) In the case where the object subject to enforcement has both immovable property as personal assets and movable property as joint assets with others, and the part of the joint asset is sufficient to enforce the enforcement decision, the person organizing the seizure shall explain clearly and request the object subject to enforcement to indicate which asset should be seized first to ensure the enforcement of the enforcement decision.

d) In the case where the object subject to enforcement requests the seizure of a part of the joint movable asset within the joint asset with others, the person organizing the seizure shall proceed to seize such asset, but must ensure the priority purchase right of the co-owner of the asset.

đ) If the object subject to enforcement has no other assets, the agency conducting the seizure has the right to seize the asset of that person that is pledged or mortgaged if the asset has a value greater than the guaranteed obligation. The agency conducting the seizure has the responsibility to inform the pledgee or mortgagee about the seizure.

5. Handing over the custody of seized assets

If the person subject to enforcement, the user or manager of the property, or the relatives of the person subject to enforcement do not accept custody or there are signs indicating the disposal, destruction of the property, or obstruction of the enforcement decision, depending on the specific circumstances, the seized property may be handed over to organizations or individuals capable of providing custody.

The person organizing the seizure of assets must implement the retention and safekeeping of documents related to the ownership and usage rights of the secured assets during the enforcement process.

6. When seizing assets, the person organizing the seizure must temporarily calculate the value of the assets intended for seizure to match the portion sufficient to pay off the tax debt, late payment interest on taxes, fines, late payment interest on fines recorded in the enforcement decision, and enforcement costs. The person organizing the seizure bases the temporary valuation on market prices and may seek the opinions of relevant agencies and parties involved to determine the value of the seized assets.

7. Appraisal Committee and the tasks of the Appraisal Committee

a) Composition of the Appraisal Committee: The issuer of the enforcement decision is the Chairman of the Committee, representatives from financial agencies and relevant specialized agencies are members. The person in charge of implementing the enforcement decision has the right to hire or request an appraisal regarding the value of the asset. When requested by the person in charge of implementing the enforcement decision, the specialized agency has the responsibility to assign a specialist to participate in the appraisal.

The representative of the specialized agency in the Appraisal Committee is a specialist or technician from the competent authority managing the asset being appraised. If the asset being appraised is a house, representatives from the real estate management agency and the construction management agency must also participate in the Appraisal Committee.

b) Tasks of the Appraisal Committee:

Within seven (7) working days from the date of establishment, the Appraisal Committee must conduct the appraisal. The individual whose asset is being seized or the representative of the organization whose asset is being seized can provide their opinion on the appraisal, but the decision on the price belongs to the Appraisal Committee.

The Appraisal Committee determines the value of the asset based on the market price at the time of appraisal and the professional opinions of the agencies and organizations appraising the asset. The Appraisal Committee decides the price of the asset by majority vote; in the event of a tie in the price opinion, the side with the opinion of the Chairman of the Committee serves as the basis for determining the initial selling price of the asset. Members of the Appraisal Committee have the right to retain their own opinions and recommend the head of the customs agency to reconsider the appraisal. For assets uniformly managed by the State in terms of pricing, the appraisal is based on the price set by the State.

8. The agency implementing enforcement has the right to organize a re-appraisal of the asset in the following cases:

a) There is evidence of violation of the appraisal procedure.

b) There is a significant change in price.

c) More than six months have passed since the date of the appraisal and the asset has not been sold.

9. Re-appraisal of the asset

When it is deemed necessary to re-appraise the asset, the agency organizing the enforcement of the administrative tax decision shall issue a notice to the Appraisal Committee of the asset regarding the organization of a re-appraisal of the asset for coordination or request a legally established appraisal agency to conduct the re-appraisal. The re-appraisal of the asset as stipulated in point a, point b, Clause 8, Article of this Law shall be carried out as follows:

a) The valuation of property shall be considered a violation of procedure if it falls under any of the following circumstances:

a.1. The valuation council does not have the correct composition as prescribed;

a.2. The object of compulsory enforcement is not properly notified to participate in the valuation of the property;

a.3. Incorrectly applying the regulations on the price of property in cases where the property is uniformly managed by the state regarding pricing;

a.4. There are serious errors in classifying and determining the percentage value of the property;

a.5. Other cases as provided by law;

b) Seized property shall be deemed to have undergone significant price fluctuations in the following cases:

The price of the property fluctuates by twenty percent (20%) or more for property valued at less than one hundred million dong.

The price of the property fluctuates by ten percent (10%) or more for property valued from one hundred million dong to less than one billion dong.

The price of the property fluctuates by five percent (5%) or more for property valued at one billion dong or more;

c) The object of compulsory enforcement has the right to request the customs authority to re-examine the price when there is a price fluctuation before the public announcement of the property to be auctioned. The Customs Authority bases its determination on market prices and prices provided by the price management agency to decide whether there has been a price fluctuation and to organize a revaluation accordingly.

10. Determining the starting price for auctioning seized property:

The starting price for auctioning the property is the value of the property determined at the time of seizure according to Article 54 of the Decree.

11. The proceeds from the sale of seized property of the object of compulsory enforcement shall be handled in the following order:

a) Paying the costs of enforcement, costs of auctioning the seized property received from other individuals or organizations holding the property;

b) Depositing the amount corresponding to the tax, late payment fees, and fines recorded in the enforcement decision into the state budget account or the temporary holding account of the customs authority opened at the state treasury;

c) Returning the excess to the object of compulsory enforcement (if any);

Article 41. Enforcement by means of collecting money or property of the object of compulsory enforcement to execute administrative decisions in the customs domain held by other organizations or individuals

1. Organizations or individuals holding money, property, goods, certificates, or valuable papers of the object of compulsory enforcement to execute administrative decisions in the customs domain include:

a) Organizations or individuals who owe money due to the object of compulsory enforcement;

b) Organizations or individuals, treasuries, banks, credit institutions entrusted by the object of compulsory enforcement to hold money, property, goods, certificates, or valuable papers, or customs authorities with sufficient evidence proving that the money, property, goods, certificates, or valuable papers held by such individuals, households, or organizations belong to the object of compulsory enforcement;

2. Verification of information

a) The authorized person or the person delegated to issue the enforcement decision has the right to collect and verify information in writing by requesting the third party holding money or property of the object of compulsory enforcement to provide information about the money or property they hold or debts owed to the object of compulsory enforcement. In case the third party holding money or property of the object of compulsory enforcement fails to comply, they must submit a written explanation to the customs authority within five (5) working days from the date of receipt of the customs authority's request;

b) Based on the information provided by the third party holding money or property of the object of compulsory enforcement, the authorized person issuing the enforcement decision by means of collecting money or property of the object of compulsory enforcement held by the third party or debts owed to the object of compulsory enforcement;

c) If, after five (5) working days from the date of sending the request for the third party to provide information about the money or property they hold or debts owed to the object of compulsory enforcement, the third party does not provide, provides insufficiently, or submits a written explanation for failing to provide the information about the money or property they hold, then proceed to the next measure.

Article 42. Enforcement by means of revoking business registration certificates, enterprise registration certificates, establishment and operation permits, and professional practice licenses.

1. Verification of information

The person authorized to issue the enforcement decision or the person delegated such authority shall be responsible for organizing the verification of information regarding the taxpayer being subject to the measure of revoking business registration certificates, enterprise registration certificates, establishment and operation permits, or professional practice licenses based on management data about taxpayers at customs authorities or at competent state agencies issuing such documents to serve as the basis for issuing the enforcement decision and sending a request letter to the agency issuing business registration certificates, enterprise registration certificates, establishment and operation permits, or professional practice licenses to revoke these certificates and permits.

2. Enforcement decision

a) An enforcement decision by means of revoking business registration certificates, enterprise registration certificates, establishment and operation permits, or professional practice licenses shall clearly state: date of issuance of the decision; basis for issuing the decision; name, position, place of work of the decision issuer; registered name, business address, tax code of the individual subject to enforcement by means of revoking business registration certificates, enterprise registration certificates, establishment and operation permits, or professional practice licenses; type of document to be revoked (number, date of issuance...); amount subject to enforcement (based on the amount recorded in the administrative tax decision and enforcement costs up to five (5) days before enforcement), reason for enforcement; name, address, bank account number, method of transferring the amount subject to enforcement (cash or transfer); time of implementation and signature of the decision issuer, seal of the enforcement decision issuing agency;

b) The enforcement decision shall be sent to the enforcement target, relevant agencies, organizations, and individuals within five (5) working days from the date of issuance.

3. Request for enforcement

a) A request for enforcement to revoke business registration certificates, enterprise registration certificates, establishment and operation permits, or professional practice licenses must include the following main contents: State agency authorized to receive the document; Information of the individual or organization subject to enforcement: registered name, tax code, business address; type of document to be revoked; related information about the type of document to be revoked (number, date of issuance...); Reason for implementing the enforcement measure (accompanied by copies of enforcement files of previous enforcement measures); Time requested for the issuing agency to implement the revocation of business registration certificates, enterprise registration certificates, establishment and operation permits, or professional practice licenses;

b) The request for enforcement must be sent to the organization or individual subject to enforcement and the competent state management agency to revoke business registration certificates, enterprise registration certificates, establishment and operation permits, or professional practice licenses within three (3) working days from the date of issuance.

4. Responsibilities of the agency authorized to revoke business registration certificates, enterprise registration certificates, or establishment and operation permits, professional practice licenses.

Within ten (10) working days from the date of receipt of the enforcement request letter from the customs authority, the competent state management agency must notify the customs authority of whether it will carry out or not carry out the revocation of business registration certificates, enterprise registration certificates, or establishment and operation permits, professional practice licenses.

Chapter III

IMPLEMENTATION

Article 43. Responsibility for Implementation.

1. The Director of the General Department of Customs shall organize and direct the handling of administrative violations, enforcement of administrative decisions, and ensure compliance with laws and resolution of complaints to maintain uniform implementation throughout the sector in accordance with the provisions of the law.

2. The immediate head of the person authorized to impose penalties shall be responsible for organizing inspections of the handling of administrative violations by subordinates.

The Directors of the Customs Bureau, Anti-Smuggling Investigation Bureau, and Post-Clearance Control Bureau under the General Department of Customs shall strictly organize inspections of the handling of administrative violations within their units.

At each Customs Sub-bureau and Inspection Team under the Customs Bureau, staff must be assigned to monitor, guide, and inspect the imposition of administrative penalties by specialized teams.

3. Customs officers authorized to impose penalties, apply preventive measures against administrative violations, and ensure the imposition of administrative penalties and enforcement of administrative decisions, or those tasked with advising the authorized penalty-imposing officials, who commit acts violating the provisions of the law, lack a sense of responsibility, or engage in harassment or corruption, shall be dealt with strictly according to the law depending on the severity of the violation; if they cause material damage to individuals or organizations, they must compensate according to the law on state compensation liability.

4. The forms of records, decisions, and notifications used during the imposition of administrative penalties, application of preventive measures against administrative violations, and ensuring the handling of administrative violations and enforcement of administrative decisions in the customs sector shall be carried out in accordance with the attached Circular. The Director of the General Department of Customs shall be responsible for guiding the uniform use of these forms throughout the sector.

Article 44. Transitional Provisions

1. For administrative violations in the customs sector that occurred before the effective date of this Circular, penalties shall be imposed according to the legal provisions in effect at the time of the violation.

For violations occurring before the effective date of this Circular but discovered or being considered and resolved thereafter, the provisions of this Circular shall be applied for consideration and resolution if such provisions are more favorable to the violator.

2. For administrative penalty decisions issued or fully enforced before the effective date of this Circular, if the individual or organization subject to administrative penalties in the customs sector still has complaints, the provisions of the law in effect at the time of the violation shall be applied to resolve them.

Article 45. Effective Date

1. This Circular takes effect from January 26, 2014.

Repeal Circular No. 193/2009/TT-BTC dated October 1, 2009, issued by the Minister of Finance, guiding the implementation of Decree No. 97/2007/NĐ-CP dated June 7, 2007, of the Government on the handling of administrative violations and enforcement of administrative decisions in the customs sector, and Decree No. 18/2009/NĐ-CP dated February 18, 2009, of the Government amending and supplementing certain articles of Decree No. 97/2007/NĐ-CP.

2. During implementation, if there are difficulties or obstacles, units, organizations, and individuals are requested to promptly report to the Ministry of Finance and the General Department of Customs for study and resolution./.