Circular No. 193/2009/TT-BTC detailing the implementation of Decree No. 97/2007/NĐ-CP dated June 7, 2007 of the Government on handling administrative violations and enforcing 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.

 

CIRCULAR

Detailed implementation of Decree No. 97/2007/ND-CP dated June 7, 2007 of the Government on handling administrative violations and enforcing administrative decisions in the customs sector and Decree No. 18/2009/ND-CP dated February 18, 2009 of the Government amending and supplementing certain articles of Decree No. 97/2007/ND-CP.

 on handling administrative violations and enforcing administrative decisions in the customs sector.

 of the Government amending and supplementing certain articles of Decree No. 97/2007/ND-CP.

On the basis of the Ordinance on Handling Administrative Violations dated July 2, 2002 and the Ordinance Amending and Supplementing Certain Articles of the Ordinance on Handling Administrative Violations dated April 2, 2008 of the Standing Committee of the National Assembly of the Socialist Republic of Vietnam; Decree No. 128/2008/ND-CP dated December 16, 2008 of the Government detailing the implementation of certain provisions of the Ordinance on Handling Administrative Violations dated July 2, 2002 and the Ordinance Amending and Supplementing Certain Articles of the Ordinance on Handling Administrative Violations dated April 2, 2008;

____________________

 

Based on the Customs Law dated June 29, 2001 and the Law Amending and Supplementing Certain Articles of the Customs Law dated June 14, 2005;

Pursuant to the Law on Tax Administration dated November 29, 2006;

On the basis of Decree No. 37/2005/ND-CP dated March 18, 2005 of the Government stipulating procedures for applying coercive measures to enforce administrative penalty decisions;

On the basis of Decree No. 97/2007/ND-CP dated June 7, 2007 of the Government on handling administrative violations and enforcing administrative decisions in the customs sector and Decree No. 18/2009/ND-CP dated February 18, 2009 of the Government amending and supplementing certain articles of Decree No. 97/2007/ND-CP;

On the basis of Decree No. 98/2007/ND-CP dated June 7, 2007 of the Government on handling violations of tax laws and enforcing administrative tax decisions and Decree No. 13/2009/ND-CP dated February 13, 2009 of the Government amending and supplementing certain articles of Decree No. 98/2007/ND-CP;

The Ministry of Finance details the handling of administrative violations and enforcement of administrative decisions in the customs sector as follows:

is a medicine production facility certified by the competent authority of a country participating in the EMA or ICH or PIC/s to meet EU-GMP or PIC/s-GMP standards or equivalent, and announced by the Ministry of Health (Drug Administration Department) on the Drug Administration Department's electronic information website.

HANDLING OF ADMINISTRATIVE VIOLATIONS IN CUSTOMS

PART I

Article 1. Administrative violations in the customs sector

PART 1. GENERAL PROVISIONS

Administrative violations in the customs sector are acts committed intentionally or negligently by individuals or organizations that violate state management regulations on customs (including export and import duties) which have not reached the level of criminal prosecution and must be subject to administrative penalties according to the decree on handling administrative violations and enforcing administrative decisions in the customs sector.

Article 2. Application of regulatory legal documents

1. The imposition of administrative penalties, application of forms of punishment, measures to mitigate consequences, preventive measures against administrative violations, and ensuring the enforcement of administrative penalties in the customs sector must comply with the principles, procedures, and jurisdiction stipulated in the Law on Tax Administration, the Ordinance on Handling Administrative Violations, Decree No. 128/2008/ND-CP dated December 16, 2008 of the Government detailing the implementation of certain provisions of the Ordinance on Handling Administrative Violations in 2002 and the Ordinance Amending and Supplementing Certain Articles of the Ordinance on Handling Administrative Violations in 2008; Decree No. 97/2007/ND-CP dated June 7, 2007 of the Government on handling administrative violations and enforcing administrative decisions in the customs sector and Decree No. 18/2009/ND-CP dated February 18, 2009 of the Government amending and supplementing certain articles of Decree No. 97/2007/ND-CP (hereinafter referred to collectively as the Decree).

2. The application of regulations on administrative penalties in the customs sector shall be carried out in accordance with Article 83 of the Law on Enacting Regulatory Legal Documents in 2008, Clause 3, Article 55 of Decree No. 97/2007/ND-CP dated June 7, 2007, and Clause 2, Article 2 of Decree No. 18/2009/ND-CP dated February 18, 2009.

2. The application of provisions on administrative penalties in the customs sector shall be implemented in accordance with Article 83 of the Law on Enacting Legal Normative Documents 2008, Clause 3 of Article 55 of Decree No. 97/2007/NĐ-CP dated June 7, 2007, and Clause 2 of Article 2 of Decree No. 18/2009/NĐ-CP dated February 18, 2009.

Article 3. Application of principles for administrative offenses penalties

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

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

2. When issuing a penalty decision against individuals and organizations that violate the law, the authorized authority must base the decision on the nature and degree of violation, aggravating and mitigating circumstances as prescribed in Articles 8 and 9 of the Administrative Violation Handling Ordinance, Article 6 of Decree No. 128/2008/ND-CP dated December 16, 2008, Articles 3 and 4 of this Decree, and certain specific provisions below:

a) A single act of violation committed by the same individual or organization at the same time on multiple declarations or contracts shall only be penalized once; simultaneously applying the aggravating circumstance "repeated violations in the same field."

In cases where an individual or organization has already been penalized for a violation but within one year from the date of completion of the execution of the penalty decision or from the date when the deadline for enforcing the decision expires, they continue to commit the same violation with another consignment, the aggravating circumstance of recidivism as prescribed in Clause 3 of Article 6 of Decree No. 128/2008/ND-CP dated December 16, 2008 shall be applied when issuing the penalty decision.

b) The first violation in the field of customs as prescribed in Clause 1 of Article 3 of this Decree refers to a situation where an individual or organization has not previously been administratively penalized in the field of customs or has been administratively penalized in the field of customs but more than one year has passed since the completion of the execution of the penalty decision or from the date when the deadline for enforcing the decision expired without committing the same violation again.

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 Offense Penalties Regarding Customs

The application of cases not subject to administrative offense penalties regarding customs according to Article 7 of the Decree shall be implemented as follows:

1. Goods and means of transport brought into Vietnam due to fire, natural disasters, enemy attacks, unexpected events, in emergency situations, declared and actually declared to the customs authorities, competent authorities, or local authorities as prescribed by law.

Failure to declare will be handled according to current laws.

2. The notification of mistaken information as prescribed in Clause 3 of Article 7 of the Decree must be made in writing by the sender, recipient, or their legal representative, clearly stating the reasons and submitting it to the customs authority along with relevant documents before the customs authority conducts an actual inspection of the goods or decides to waive the actual inspection of the goods; accepted by the head of the customs authority responsible for receiving and processing customs declarations.

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 mistaken claim.

3. The provisions of point b, Clause 4 of Article 7 of the Decree apply to the cases specified in point c, Clause 1 of Article 12 of Circular No. 79/2009/TT-BTC dated April 20, 2009 issued by the Ministry of Finance guiding customs procedures; customs inspection and supervision; export tax, import tax, and tax management for exported and imported goods.

4. For cases prescribed in Clauses 5, 6, and 8 of Article 7 of the Decree:

a) At the time of discovering the violation, if sufficient grounds exist to determine that it falls under a case not subject to penalties, the authorized authority shall only prepare a record to file the dossier.

b) If insufficient grounds exist to determine whether the violation falls under a case subject to penalties or not, the customs officer on duty shall prepare an administrative offense record; based on the customs dossier, relevant documents, and the administrative offense record, the authorized authority as prescribed in Clauses 2, 3, and 4 of Article 28 of the Decree shall decide whether to impose penalties or not.

c) The violation of tax laws concerning exported and imported goods as prescribed in Clause 5 of Article 7 of the Decree includes violations as prescribed in Clause 4 of Article 9 and Clauses 1 and 2 of Article 14 of the Decree.

5. For the case prescribed in Clause 7 of Article 7 of the Decree:

a) The declarant who incorrectly declares the commodity code or tax rate for the first time shall be guided by the customs authority to re-declare the correct commodity code and tax rate, a record confirming this shall be prepared, and no penalty shall be imposed.

b) An incorrect declaration of the commodity code or tax rate is considered the first time when the following conditions are met:

b.1. Within one year (counting from the date of registering the customs declaration for exporting or importing the consignment with the incorrect commodity code or tax rate), the individual or organization has not exported or imported the same item; or has exported or imported the same item but declared the incorrect commodity code or tax rate and was not detected.

b.2. Has not received guidance from the customs authority on declaring the commodity code or tax rate for this item or has received guidance but it was incorrect.

Article 5. Valuation of goods and contraband to determine the amount of administrative fines and the authority to impose administrative penalties

1. For contraband and means of transport not subject to confiscation, the value of the contraband and means of transport is the customs value, determined according to current regulations on determining the customs value at the time of the violation record; if it is foreign currency, the exchange rate shall be determined in accordance with the guidance of the Ministry of Finance in the guiding document on customs procedures; customs inspection; customs supervision; export tax, import tax, and tax management for exported and imported goods.

2. For goods, contraband, and means of transport subject to confiscation, depending on each specific type of goods and contraband, the determination of the value shall be based on the factors set forth in Clause 2 of Article 36a of the Decree and Article 34 of Decree No. 128/2008/NĐ-CP dated December 16, 2008 of the Government.

3. Documents related to valuation must be reflected in the administrative violation case file where valuation of goods, contraband, and means of transport has been carried out.

Article 6. Handling of goods and means of transport that violate without applying the confiscation penalty form

1. Goods temporarily detained but not confiscated shall be returned upon decision of the person issuing the temporary detention decision.

2. Returned goods shall be processed according to customs regulations; if the goods are subject to export tax, import tax, and other related taxes, they must be paid according to regulations.

Article 7. Calculation of time limits and statute of limitations

1. Time limits and statute of limitations prescribed in the Administrative Violations Handling Ordinance, when specified in months or years, shall be calculated according to the Gregorian calendar month or year, including holidays as stipulated in the Labor Code.

2. Time limits prescribed in the Administrative Violations Handling Ordinance, when specified in days, shall be calculated according to working days, excluding holidays as stipulated in the Labor Code.

PART 2. APPLICATION OF PENALTY FORMS AND AMOUNTS

Article 8. Violation of the deadline for customs procedures and submission of tax documents under Article 8 of the Decree

1. The deadline for customs procedures under Article 8 of the Decree is the deadline prescribed in Article 18 of the Customs Law and other regulatory legal documents specifying deadlines for customs procedures for each type of export and import.

2. In cases where the declarant requests adjustment of the consumption quota for processing materials for export goods or imported materials for production of export goods after the product has been exported, if the customs authority accepts the adjustment, the penalty shall be imposed according to the provisions of point d, clause 1 of Article 8 of the Decree.

3. The violation of the provisions set forth in points đ, e, clause 2; points a, b, clause 3 of Article 8 of the Decree shall only be penalized if the permit, customs declaration, or other documents as prescribed by law specify the time for re-import or re-export.

4. The deadline set forth in point b, clause 2 of Article 8 of the Decree is the deadline for settlement of contracts, declarations, goods, raw materials, and supplies as prescribed in regulatory legal documents on customs.

5. The measure "compel re-export of goods" prescribed in point a, clause 5 of Article 8 of the Decree shall only apply to actions "Failure to re-export goods within the prescribed period or the registered time with the customs authority" as prescribed in point đ, clause 2; point a, clause 3 of Article 8 of the Decree.

In cases where the violation "Failure to re-export transportation means within the prescribed period" as prescribed in point e, clause 2; point b, clause 3 of Article 8 of the Decree is discovered while individuals or organizations are processing the re-export of the violating transportation means, the measure to remedy consequences "compel re-export" shall not be applied; in the penalty decision, only the main penalty form shall be recorded, and the customs authority shall complete the re-export procedures for the transportation means after the penalty decision has been implemented.

Article 9. Violations of customs declaration and tax declaration provisions as stipulated in Article 9 of the Decree

1. In cases where goods or items are imported but do not match the customs declaration, and the customs procedures are carried out on behalf of the consignor by a postal enterprise or express delivery service in accordance with the law, if there is no evidence to determine that there was collusion between the sender, recipient, and the person handling the customs procedures for the purpose of fraud, then no penalty shall be imposed.

2. For acts of non-declaration or incorrect declaration, but the goods belong to the list of humanitarian aid or non-repayable aid that have been confirmed by the Ministry of Finance or authorized agencies, penalties shall be imposed according to the provisions at point c, Clause 1, Article 9 of the Decree.

In cases where the goods do not fall within the confirmed list of competent authorities, penalties shall be imposed according to the provisions at point b, Clause 4, Article 9 of the Decree or point b, Clause 1, Article 16 of the Decree, depending on the nature and severity of the violation.

3. In cases where imports do not match the customs declaration, but the goods are raw materials, components, machinery, equipment, spare parts imported under tax exemption such as goods under registered processing contracts or goods under the tax-exempt list of investment projects, penalties shall be imposed according to the provisions at point a, Clause 2, Article 9 of the Decree, except for those included in the contract or list already registered; in cases where the goods are not exempt from taxes, penalties shall be imposed according to the provisions of Clause 4, Article 9 of the Decree.

4. Goods temporarily imported or exported that do not match the customs declaration and are subject to export tax exemption and import tax exemption shall be penalized according to the provisions at point b, Clause 2, Article 9 of the Decree; in cases not subject to export tax exemption and import tax exemption, penalties shall be imposed according to the provisions of Clause 4, Article 9 or Clauses 1 and 2, Article 14 of the Decree, depending on the nature and severity of the violation.

5. The provisions of Clause 3, Article 9 of the Decree apply to cases where declarations and customs procedures are made but the goods are not exported or exported less than declared. This provision does not apply to cases where the customs declaration has no value for customs procedures as stipulated in Clause 2, Article 18 of the Customs Law.

6. Penalties according to the provisions of Clause 4, Article 9 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.

7. Violations of the provisions at point a, Clause 4, Article 9 of the Decree, where the incorrect declaration content is a result of the violations specified in Clause 1, Article 14 of the Decree, shall be penalized according to the provisions of Article 14 of the Decree.

8. For acts of non-declaration or incorrect declaration regarding the name of goods, type, quantity, weight, quality, value, commodity code, tariff rate, country of origin of exported or imported goods requiring verification and investigation to clarify, if they do not fall under the cases stipulated in Clause 1, Article 14 of the Decree, penalties shall be imposed according to the provisions at point b or point c, Clause 4, Article 9 of the Decree, depending on the specific circumstances.

9. For acts of declaring more than the actual quantity of processed products or products produced from imported raw materials (including re-exported processed materials and production materials for re-export) regarding type, quantity, weight, resulting in a tax difference below VND 50 million, penalties shall be imposed according to the provisions at point b, Clause 4, Article 9 of the Decree.

Article 10. Violations of customs declaration regulations for foreign currency, Vietnamese currency in cash, and gold (in block, bar, bead, or piece form) as stipulated in Article 10 of the Decree.

1. The acts of violation as provided in Article 10 of the Decree shall apply to cases where individuals exit or enter the country with passports, travel documents, border identification cards carrying foreign currency, Vietnamese currency in cash, or gold in block, bar, bead, or piece form, violating customs declaration regulations when exiting or entering the country. Cases of illegally transporting foreign currency, Vietnamese currency in cash, or gold across borders shall be subject to penalties as prescribed in Article 13 of the Decree.

2. The value of the contraband goods is the value after deducting the value of foreign currency, gold, and Vietnamese currency that does not need to be declared according to the law.

3. In cases where individuals exit or enter the country carrying jewelry made of gold in violation of customs declaration regulations, they shall be penalized as if they were other export or import goods.

Article 11. Violations of customs inspection, tax audit; customs supervision; and customs control as stipulated in Articles 11, 12, and 13 of the Decree.

1. The provisions at point b, Clause 2 of Article 11 of the Decree shall apply to cases where normative legal documents provide for sample retention, file retention, or document retention.

2. The provisions at point c, Clause 3 of Article 11 of the Decree shall apply to cases where the requirements set forth by customs authorities under relevant normative legal documents for inspection or tax audit are not implemented.

3. When discovering violations as provided in point b, Clause 4 of Article 11 of the Decree, a record of seizure and sealing of counterfeit customs documents or papers within the customs file must be established. If these documents are permits, they must be notified in writing to the issuing authority.

4. Violations of regulations on the movement of conveyances carrying transit, transshipment, or transfer goods outside the designated route, location, port, or time specified in the customs declaration without explanation or with an explanation not accepted by the Customs Sub-Department Leader shall be subject to penalties as provided in point a, Clause 1 of Article 12 of the Decree.

5. The provisions at point d, Clause 1 of Article 12 of the Decree shall only apply to cases where the contraband goods have not been disposed of or consumed. If the contraband goods are no longer present, penalties shall be imposed as provided in points a and c, Clause 2 of Article 12 of the Decree.

6. Acts of violation as provided in points a and b, Clause 2 of Article 13 of the Decree, committed by individuals under 14 years old, shall result in the establishment of a record of acknowledgment, decision to confiscate or destroy contraband goods.

7. When imposing administrative penalties for violations as provided in Clause 2, Clause 3, and point a, Clause 4 of Article 13 of the Decree, the authorized penalty-imposing authority as provided in Clauses 2, 3, and 4 of Article 28 of the Decree must assess the value of contraband goods or vehicles according to Clause 2 of Article 5 of this Circular to determine the amount of fine and the authority to impose penalties.

Article 12. Penalties for acts of tax evasion and fraudulent tax practices as stipulated in Article 14 of the Decree.

1. Documents and materials referred to in point a, Clause 1 of Article 14 include those submitted or presented to customs authorities during the customs clearance process and after clearance, serving as the basis for determining or proving the amount of tax payable.

2. "Previous import" mentioned in point b, Clause 1 of Article 14 of the Decree is determined within a period of one year (365 days) prior to the date of violation.

3. 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 has not voluntarily paid the full tax or has not fully paid the tax as required before the customs authority establishes a violation record, shall be subject to penalties as provided in point c, Clause 1 of Article 14 of the Decree.

4. Violations of regulations on the management of goods in non-tariff zones as provided in point d, Clause 1 of Article 14 of the Decree apply in cases where, at the time of customs inspection, the quantity of goods is less than reported or recorded in the company's inventory or books.

5. Violations related to exported goods being processed products, products produced from imported raw materials, including re-exported processed materials and re-exported production materials, are detailed as follows:

a) In cases where customs procedures are completed but the goods are not exported, penalties shall be imposed as provided in point đ, Clause 1 of Article 14 of the Decree. This provision does not apply to cases where the customs declaration does not have the value to complete customs procedures as stipulated in Clause 2 of Article 18 of the Customs Law.

b) In cases where more goods are declared than actually exist regarding type, quantity, or weight, resulting in a tax difference of VND 50 million or more but not reaching the level of criminal prosecution, penalties shall be imposed as provided in point e, Clause 1 of Article 14 of the Decree.

6. The act provided in point n, Clause 1 of Article 14 of the Decree applies when the customs authority has sufficient grounds to determine that the taxpayer knows the actual exported or imported goods but fails to declare or incorrectly declares them to evade taxes.

7. The basis for determining the tax difference in cases of under-declaration, tax evasion, or fraudulent tax practices is: the declaration of the taxpayer and the tax assessment decision of the authorized person.

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

1. The permits, conditions, and technical standards mentioned in Article 16 of the Decree refer to the permits, conditions, and technical standards stipulated in Decree No. 12/2006/NĐ-CP dated January 23, 2006 of the Government, guiding documents for implementing Decree No. 12/2006/NĐ-CP, and other decrees of the Government that provide for permits, conditions, and technical standards for exported and imported goods.

2. In cases where goods listed in the import permit directory issued by the Ministry of Industry and Trade or managed by specialized ministries (not included in the prohibited import list) have not exceeded the customs clearance deadline but the consignee does not proceed with import procedures and requests re-export instead, no penalty shall be imposed.

3. In cases where goods or items are imported in violation of the provisions of Article 16 of the Decree, if such actions are carried out by postal enterprises or express delivery companies on behalf of the consignor in accordance with the law, and the recipient refuses to accept the goods without evidence indicating that the goods were brought into Vietnam at the request of the recipient, no penalty shall be imposed on the recipient. The contraband goods shall be handled according to the provisions of Clause 2, Article 35 of the Decree.

4. Only the supplementary penalty of revoking the right to use the permit directly related to the goods as contraband shall be applied.

In cases where the permit is revoked by another competent state agency, within five days from the date of issuing the penalty decision, the customs authority shall notify in writing the relevant agency about its handling.

5. Violations related to import permits, export and import conditions involving goods exchanged by border residents, humanitarian aid goods, gifts, movable property, goods of persons exiting or entering the country; transit goods, goods in transshipment; temporarily imported-reexported goods, temporarily exported-reimported goods shall be subject to penalties according to the provisions of Clause 1, Clause 2, Clause 3 of Article 16 of the Decree; other cases shall be penalized according to the provisions of Clause 4 of Article 16 of the Decree.

6. For violations specified in point c, Clause 3; points a, b, h, Clause 4; point a, Clause 6 of Article 16 of the Decree, if the specialized management agency requires the removal of the contraband goods from the territory of Vietnam or re-export, confiscation of contraband goods shall not be applied, and the requirements of the specialized management agency shall be followed.

7. For violations related to import permits, conditions, and technical standards specified in Clause 2; points a, b, Clause 3; points d, e, Clause 4 of Article 16 of the Decree, if before the issuance of the penalty decision, the competent authority has issued a permit, the supplementary penalty of compelling removal from the territory of Vietnam shall not be applied. In cases where a penalty decision has been issued and the remedial measure "compel removal from Vietnam" has been applied, but within thirty days from the date of receipt of the penalty decision, the specialized management agency allows importation and the goods have not yet been removed from Vietnam, importation shall be permitted.

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

If the consignor fails to extend the warehouse rental contract in accordance with the law, fails to notify the customs authority, and fails to remove the goods from the bonded warehouse when the bonded warehouse rental contract expires, they shall be subject to penalties according to the provisions of Clause 1, Article 17 of the Decree, and the goods shall be handled according to the provisions of Clause 4, Article 24 of Decree No. 154/2005/NĐ-CP dated December 15, 2005.

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

1. Clause 1 of Article 19 of the Decree shall apply to cases where more than 10 days have passed since the expiration of the deadline for deducting money from the account, but the State Treasury, Commercial Bank, or other credit organization has not deducted or transferred the entire or corresponding portion of the amount due from the account of the organization or individual subject to enforcement of administrative decisions into the state budget account or the temporary holding account opened at the State Treasury by the customs authority upon request of the customs authority when, at the time of receiving the enforcement decision, the deposit account of the person subject to enforcement has a balance.

2. The provisions of Clause 3 of Article 19 shall not apply to organizations and individuals that are tax payers. Organizations and individuals that are tax payers who violate the regulations on providing information shall be punished according to the provisions of Point b, Clause 3 of Article 11 of the Decree.

SECTION 3. IMPLEMENTATION OF MEASURES TO PREVENT ADMINISTRATIVE VIOLATIONS AND ENSURE THE ENFORCEMENT OF ADMINISTRATIVE PENALTIES

Article 16. When applying the measure of temporarily detaining a person under administrative procedures, the following principles must be adhered to:

1. Only those persons with authority as stipulated in Article 23 of the Decree have the right to issue a decision to temporarily detain a person under administrative procedures.

2. Detaining a person must be done through a written decision and such decision must be handed over to the person being detained.

3. A person may only be temporarily detained under administrative procedures in cases where it is necessary to immediately stop acts disrupting public order within the customs operation area, causing injury to customs officials performing their duties, or where it is necessary to collect and verify important and complex circumstances related to the violation as the basis for issuing an administrative penalty decision or to ensure the handling of the person who committed the violation.

4. Temporarily detaining a person must comply with the Regulations on temporarily detaining a person under administrative procedures issued together with Decree No. 162/2004/ND-CP dated September 7, 2004 of the Government, Decree No. 19/2009/ND-CP dated February 19, 2009 of the Government amending and supplementing certain articles of the Regulations on temporarily detaining a person under administrative procedures issued together with Decree No. 162/2004/ND-CP dated September 7, 2004 of the Government, and Circular No. 26/2007/TT-BCA dated November 15, 2007 of the Ministry of Public Security guiding the implementation of some articles of the Regulations on temporarily detaining a person under administrative procedures issued together with Decree No. 162/2004/ND-CP dated September 7, 2004 of the Government.

Article 17. Temporary detention of documents, evidence, and means of administrative violations

1. When applying the measure of temporarily detaining documents, evidence, and means of administrative violations, the provisions of Article 24 of the Decree must be followed.

Customs procedures for exported, imported, transited goods, outbound, inbound, and transiting conveyances shall be carried out in accordance with current laws if they are not subject to temporary detention.

2. In cases where there is reasonable grounds to believe that if not detained immediately, the evidence or means of administrative violations may be disposed of or destroyed, the immediate head of the customs officer is authorized to issue a decision to temporarily detain the evidence or means of administrative violations. Within 24 hours of issuing the decision, the person issuing the decision must report to their superior, who is one of the persons authorized to temporarily detain evidence or means of administrative violations as stipulated in Clause 1 of Article 24 of the Decree, and obtain their written consent; in the absence of such consent, the person who issued the decision to detain must immediately revoke the decision and return the items, money, goods, or means that were detained.

3. In cases where post-clearance audit at the taxpayer's premises or tax inspection reveals signs of tax evasion or fraud, the Director General of the General Department of Customs, the Director of the Post-Clearance Audit Department under the General Department of Customs, the Director of the Customs Department, the Head of the Customs Branch, or the Head of the Tax Inspection Team have the authority to decide to temporarily detain documents, evidence, and means of administrative violations.

Article 18. Examination of Persons under Administrative Procedures

The authority and procedure for examining persons under administrative procedures must comply with the conditions stipulated in Article 25 of the Decree.

Article 19. Examination of Transport Vehicles and Objects under Administrative Procedures

1. The authority and procedure for examining transport vehicles and objects under administrative procedures must comply with the conditions stipulated in Article 26 of the Decree.

2. The examination of transport vehicles and objects of subjects enjoying diplomatic privileges and immunities or consular immunities must follow 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.

When there is evidence that the luggage of persons benefiting from diplomatic privileges, consular immunities contains items not entitled to such privileges, or items prohibited from export or import by the Government of Vietnam, or items that do not comply with Vietnam's quarantine regulations, the search shall be carried out according to the decision of the Director General of the General Department of Customs, in the presence of a diplomatic officer or a person authorized to represent them.

Article 20. Examination of Places Concealing Documents, Evidence, and Means Related to Violations

1. Only those persons specified in Clause 1 of Article 23 of the Decree have the authority to issue decisions to examine places concealing documents, evidence, and means related to administrative violations. The examination of places concealing documents, evidence, and means related to administrative violations shall be conducted in accordance with the provisions of Article 49 of the Law on Handling Administrative Violations and Article 27 of the Decree.

2. In cases where post-clearance inspections at the tax payer's office or tax inspection offices reveal signs of tax evasion or fraud, the Director General of the General Department of Customs, the Director of the Post-Clearance Inspection Department under the General Department of Customs, the Director of the Customs Department, and the Head of the Customs Branch have the authority to decide to examine places concealing documents, evidence, and means related to administrative violations.

SECTION 4. AUTHORITY TO IMPOSE FINES

Article 21. Allocation of Authority to Impose Fines

1. The authority to impose fines for administrative violations of customs levels prescribed in Clauses 1, 2, 3, and 4 of Article 28 of the Decree applies to a single act of violation. In cases involving fines, the authority to impose fines is determined based on the maximum amount of the fine prescribed for each specific act of violation.

In cases where a person commits multiple acts of administrative violations related to customs, the authority to impose penalties shall be determined as follows:

a) If the form and level of punishment prescribed for each act all fall within the authority of the person imposing the fine as stipulated in Clauses 1, 2, 3, and 4 of Article 28 of the Decree, then the authority to impose fines still belongs to that person;

b) In cases where the amount of the fine or one of the forms of punishment or measures to remedy the consequences does not fall within the authority or exceeds the authority, the person handling the violation case must promptly transfer the case to the person with the authority to impose fines.

2. Those persons prescribed in Clause 6 of Article 28 of the Decree have the authority to impose fines for acts of non-declaration or incorrect declaration leading to underpayment of taxes due or overpayment of refundable taxes; tax evasion, tax fraud; late payment of taxes; failure to implement deductions or transfers from the accounts of organizations or individuals subject to compulsory enforcement into the state budget account or temporary deposit account of the customs agency opened at the State Treasury as stipulated in Clause 4 of Article 9, Articles 14, 15, and point a of Clause 1 of Article 19 of the Decree. The level of punishment is determined according to the provisions of the Decree without limiting the maximum amount based on the fine amount.

3. For administrative violations where the relevant files involve multiple customs units, the unit that first discovers and records the violation issues the decision to impose fines; other related units are responsible for transferring all necessary documents to the unit handling the violation case.

4. Handling violations related to goods transferred between ports:

a) Violations related to goods transferred between ports discovered by the Customs Branch at the port of entry, if they indicate criminal activity, the Customs Branch at the port of entry requests the Customs Branch where the declaration was made to transfer all relevant files for criminal proceedings;

b) Goods transferred between ports that violate administrative regulations are transferred by the Customs Branch at the port of entry to the Customs Branch where the declaration was made for punishment within their authority. If the evidence of the violation is prohibited imported goods, hazardous waste, or disease-spreading materials discovered at the port, the Customs Branch where the declaration was made transfers the files to the Customs Branch at the port of entry for punishment within their authority;

c) Within five days from the date of issuing the decision on handling, the main unit handling the matter must notify the result of the handling to the related customs unit.

5. Upon discovering violations in the customs domain, the authority to impose fines needs to compare with the provisions of the Penal Code to determine whether it is an administrative violation or a criminal offense. In cases indicating criminal offenses, the provisions of criminal procedural laws shall apply. For signs of tax evasion, within ten working days from the date of discovery, the file must be transferred to the competent authority for investigation as prescribed.

6. For cases of violations discovered and seized by units under the Anti-Smuggling Investigation Bureau where the penalty exceeds the authority of the Team Leader of the Anti-Smuggling Control Team and the Sea Squadron Leader of the Marine Anti-Smuggling Control Squadron under the Anti-Smuggling Investigation Bureau, the authority to impose fines shall be exercised by the Director of the Anti-Smuggling Investigation Bureau under the General Department of Customs as prescribed.

Article 22. Delegation to handle administrative violations

The delegation to handle administrative violations for positions specified in Clause 2, 3, and 4 of Article 28 of the Decree shall only be implemented by deputy-level officials. The delegation must be carried out in writing. In the delegation document, the scope, content, and duration of the delegation must be clearly stated. For decisions on temporarily detaining individuals under administrative procedures, the delegation can only be made when the head is absent.

The person delegated is responsible under the law and to the superior for handling administrative violations and may not delegate further to any other individual.

SECTION 5. PROCEDURES FOR ADMINISTRATIVE PENALTY DECISIONS AND IMPLEMENTATION OF ADMINISTRATIVE PENALTY DECISIONS

Article 23. Issuing Administrative Penalty Decisions

1. When imposing an administrative penalty in the form of a warning in the customs domain, the authorized authority shall issue the administrative penalty decision on the spot.

2. An administrative penalty decision takes effect from the date of signing, except where another effective date is specified in the decision. Within ten days from the date of receiving the administrative penalty decision, the individual or organization subject to the penalty must comply with the decision of the competent authority.

3. The issuance of administrative penalty decisions shall be carried out in accordance with the provisions of Article 56 of the Administrative Violations Handling Ordinance and Article 23 of Decree No. 128/2008/NĐ-CP dated December 16, 2008 of the Government.

4. The deadline for issuing an administrative penalty decision is ten (ten) days from the date of the administrative violation record; for complex administrative violations involving multiple circumstances, the deadline for issuing the administrative penalty decision is thirty (thirty) days from the date of the administrative violation record. If additional time is required for verification and evidence collection to issue the administrative penalty decision, the competent authority must report in writing to its direct supervisor requesting an extension, which cannot exceed thirty (thirty) days.

5. For late tax payment acts stipulated in Article 15 of the Decree, no violation record or administrative penalty decision will be issued; instead, the taxpayer shall self-determine the late payment fine and pay it into the State budget. If more than thirty (thirty) days have passed since the tax payment deadline and the taxpayer has not fully paid the tax and fine, the authority specified in Clause 6 of Article 28 of the Decree shall issue a notice of the outstanding tax and late payment fine up to that point, and simultaneously request the taxpayer and guarantor to pay the full amount of tax and fine into the budget.

6. Diplomatic officials or consular officials who exploit diplomatic privileges and immunities to engage in commercial activities outside their functions and violate customs regulations shall consult with the diplomatic agency before imposing penalties.

Article 24. Multiple Installment Payment of Penalties

The implementation of multiple installment payments of penalties shall be carried out in accordance with the provisions of Article 27 of Decree No. 128/2008/NĐ-CP dated December 16, 2008 of the Government.

The customs authority responsible for considering the decision on multiple installment payments of penalties shall base the interest rate on the non-fixed term deposit rate of one of the state commercial banks operating in the same locality to calculate the interest rate for the unpaid penalty amount.

The non-fixed term deposit interest rate is fixed at the time the administrative penalty decision becomes effective.

Article 25. Management of fines collected from administrative violations.

All fines collected must be deposited into a temporary account opened by the customs authority at the State Treasury in accordance with current regulations. After the appeal period 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. For revenue from the handling of violations in the field of anti-smuggling, commercial fraud, and counterfeit goods, it shall be implemented in accordance with the guidance provided for in Circular No. 59/2008/TT-BTC dated July 4, 2008, issued by the Ministry of Finance.

Article 26. Exemption from Administrative Violation Penalties as stipulated in Article 38 of the Decree.

1. The consideration of exemption from administrative violation penalties shall only apply to cases where the person is penalized for violations under Clause 4, Article 9, Article 14, Article 15, and Article 19 of the Decree.

2. The file for exemption from administrative violation penalties includes:

a) A request for exemption from administrative violation penalties, clearly stating the grounds for requesting the exemption;

b) The administrative violation record;

c) The decision on administrative violation penalties (if applicable);

d) Confirmation from local authorities regarding the content and time of natural disasters, fires, unexpected accidents, or other force majeure events;

đ) A record established jointly by representatives of the organization or individual suffering losses and local authorities determining the value of damaged assets and goods, the cause of damage, and the recoverable value of assets and goods;

e) Compensation files accepted by insurance agencies (if applicable);

g) Files specifying the responsibility of organizations or individuals required to compensate (if applicable).

3. Procedures and sequence for considering exemption from administrative violation penalties:

a) The application for exemption from penalties is submitted to the level authorized to decide on exemptions as stipulated in Clause 4, Article 38 of the Decree;

b) Based on the specified file, comparing with the conditions for exemption from administrative violation penalties set out in Clause 2, Article 38 of the Decree, the Director of the Customs Department, the Director of the Anti-Smuggling Investigation Department, and the Director of the Post-Clearance Audit Department will consider and issue a decision exempting from administrative violation penalties.

In cases where there are doubts about the authenticity of the exemption file, verification must be conducted before making a decision.

4. Enforcement actions to implement the penalty decision shall not be carried out while considering an exemption from administrative violation penalties.

Article 27. Transfer of Files for Criminal Proceedings

1. When examining a violation case to decide on penalties, if it is found that the violation has criminal indications, the file must be transferred to the competent authority for examination to initiate a criminal case (for crimes specified in Articles 153 and 154 of the Penal Code) or submit a document along with a photocopied file requesting the competent criminal prosecution authority to examine and initiate a criminal case for other criminal law violations.

2. If the criminal prosecution authority notifies the decision to initiate a criminal case, the customs authority must transfer the original violation file to the competent criminal prosecution authority within five days from the date of receipt of the notification.

3. If more than three days have passed since the expiration of the period specified in Article 103 of the Criminal Procedure Code and the customs authority has not received a notification from the competent authority regarding the initiation or non-initiation of a case, the authorized penalty decision-maker as stipulated in Article 28 of the Decree shall issue an administrative violation penalty decision in accordance with the law and notify the criminal prosecution authority of the issuance of the administrative violation penalty decision.

The recalculation of the deadline for issuing a penalty decision as stipulated in Clause 4, Article 39 of the Decree shall be carried out as follows:

a) If the violation case has already had its deadline for issuing a penalty decision extended according to Clause 1, Article 56 of the Administrative Violations Handling Regulation before being transferred to the criminal prosecution authority, the deadline for issuing a penalty decision is ten days from the date of recalculating the deadline for issuing a penalty decision; for complex administrative violation cases, the deadline for issuing a penalty decision is thirty days and cannot be further extended.

b) If the violation case has not had its deadline for issuing a penalty decision extended according to Clause 1, Article 56 of the Administrative Violations Handling Regulation before being transferred to the criminal prosecution authority, the deadline for issuing a penalty decision shall be recalculated according to Clause 1, Article 56 of the Administrative Violations Handling Regulation and may be extended according to the law.”

Article 28. Supervision of the removal from Vietnam's territory and re-export of infringing goods

Infringing goods that are required to be removed from Vietnam's territory or re-exported must be closely monitored from the place where they are stored to the re-export customs checkpoint. The results of the supervision must be recorded and kept in the case file.

Article 29. Handling of confiscated infringing items

1. The handling of confiscated infringing items shall be carried out in accordance with the provisions of Article 61 of the Administrative Violation Handling Ordinance and Article 35 of Decree No. 128/2008/NĐ-CP dated December 16, 2008 of the Government.

2. In cases where the confiscation decision is made by the Director of the Provincial, Interprovincial, or Central City Customs Office (hereinafter referred to as the Customs Office), the Director of the Anti-Smuggling Investigation Department, the Director of the Post-Clearance Inspection Department, and the Head of the Customs Sub-office or the Customs Control Team under the Customs Office located within a provincial central city or a central city, the confiscated infringing items shall be handed over to the provincial auction service center where the violation occurred for auction.

3. In cases where the confiscation decision is made by the Head of the Customs Sub-office, the Head of the Customs Control Team under the Customs Office, except for the cases mentioned in Clause 2 above; the Head of the Anti-Smuggling Control Team and the Head of the Sea Control Squadron under the Anti-Smuggling Investigation Department of the General Customs Department, the confiscated infringing items shall be proposed to the Chairman of the People's Committee of the district where the violation occurred or where the decision-making authority is headquartered to establish an auction committee for the auction of the confiscated infringing items.

The members of the auction committee include the leader of the decision-making authority serving as the Chairman of the Committee, the leader of the financial department at the district level serving as the Deputy Chairman of the Committee, and other members may be invited by the person authorized to establish the Committee based on the nature and characteristics of each case.

Chapter II

ENFORCEMENT OF ADMINISTRATIVE DECISIONS IN THE CUSTOMS SECTOR BY COMPULSORY MEANS

Article 30. Scope and subjects of compulsory enforcement

1. Compulsory enforcement of administrative decisions in the customs domain shall be applied to individuals and organizations responsible for implementing administrative decisions in the customs domain that have exceeded the voluntary compliance period and have not voluntarily complied or have engaged in asset dispersal or flight, requiring compulsory measures to ensure the implementation of administrative decisions in the customs domain as stipulated in Clause 2 of Article 41 of the Decree.

2. The application of compulsory enforcement measures for administrative decisions in the customs domain must comply with the procedures, formalities, and authorities prescribed in the Tax Administration Law, the Administrative Violation Handling Ordinance, Decree No. 37/2005/NĐ-CP dated March 18, 2005 of the Government regarding the procedures for applying compulsory enforcement measures for administrative penalty decisions, Decree No. 98/2007/NĐ-CP dated June 7, 2007 of the Government concerning tax law violations and compulsory enforcement of administrative decisions and administrative penalties in the customs domain.

3. The subjects subject to compulsory enforcement measures include:

a) The declarant, the taxpayer who has the obligation to implement the administrative decisions specified in Clause 2 of Article 41 of the Decree but fails to comply;

b) State Treasury, Bank, other credit institutions; organizations and individuals currently managing salaries or income of individuals subject to compulsory enforcement of administrative decisions who fail to comply with the administrative penalty decision regarding the failure to deduct or withhold funds from the object of enforcement into the state budget account or the temporary holding account of the customs authority opened at the State Treasury.

c) Guarantors who fail to fulfill their obligation to pay taxes and fines on behalf of taxpayers as notified by the customs authority when taxpayers fail to pay taxes and fines;

d) Organizations and individuals holding money or assets of taxpayers who fail to comply with decisions to enforce collection of money or assets held by them;

đ) Organizations and individuals related who fail to comply with administrative penalty decisions issued by the customs authority.

Article 31. Cases for Issuing Enforcement Decisions

1. For administrative decisions on taxes (including those mentioned in points a, b, c, and d, Clause 2, Article 41 of the Decree and other penalty decisions as provided for in Clause 4, Article 9 and Article 14 of the Decree):

a) Over 90 (ninety) days from the expiration date of the deadline for compliance with administrative decisions in the customs sector, if individuals, organizations, or their guarantors do not voluntarily comply;

b) Individuals, organizations that have not complied with administrative decisions in the customs sector and have engaged in acts of dispersing assets or fleeing.

2. For other administrative penalty decisions in the customs sector: over 10 (ten) days from the expiration date of the deadline for compliance with the penalty decision, if individuals, organizations, or their guarantors do not voluntarily comply.

Article 32. Monitoring and Urging Payment of Tax and Penalty Arrears

1. Customs authorities at all levels are responsible for monitoring and managing debtors of tax and penalty payments; regularly classifying debtors and debts to urge and collect payments before enforcement measures are applied.

Forms of urging payment of tax and penalty arrears:

a) Sending notices requesting taxpayers and guarantors to pay the full amount of tax and penalty arrears;

b) Directly visiting the taxpayer's office to collect tax and penalty arrears;

c) Publishing information on the network system about lists of debtors of tax and penalty arrears;

d) Publicizing debtors of tax and penalty arrears, amounts of tax arrears, and penalties on mass media.

2. Taxpayers and guarantors who still owe tax and penalty payments upon receiving notices from customs authorities about such arrears must promptly make full payments according to the law. If they fail to do so beyond the deadline specified in Article 29 of this Circular, enforcement measures as stipulated in Article 43 of the Decree will be applied.

Article 33. Authority to Decide on Enforcement

1. 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 shall issue enforcement decisions and organize their implementation for administrative decisions issued by themselves or their subordinates.

2. In cases where enforcement measures involving asset seizure; collection of money or assets held by other organizations or individuals located in different jurisdictions are required, the Directors of the General Department of Customs, the Anti-Smuggling Investigation Department, and the Post-Clearance Control Department shall issue enforcement decisions and transfer them to the Customs Department in charge of the relevant jurisdiction to organize the enforcement of the decision.

3. In cases where it is necessary to apply enforcement measures to recover tax identification numbers; suspend the use of invoices; recover business registration certificates, establishment and operation licenses, and practice licenses as stipulated in Clause 8 and Clause 9, Article 43 of the Decree, and the organization subject to enforcement has tax and penalty arrears at multiple Customs Departments, the General Department of Customs shall notify the competent authority to issue decisions to recover the use of tax identification numbers; suspend the use of invoices; recover business registration certificates, establishment and operation licenses, and practice licenses according to Article 52 of the Decree and Article 65 of Decree No. 98/2007/NĐ-CP.

3. In cases where it is necessary to apply coercive measures for the recovery of tax identification numbers, suspension of invoice usage; recovery of business registration certificates, establishment and operation licenses, and professional practice permits as stipulated in Clause 8 and Clause 9 of Article 43 of the Decree, when the organization subject to coercion owes taxes and fines to multiple Customs Bureaus, the General Department of Customs shall notify the competent authority to issue decisions for the recovery of tax identification number usage, suspension of invoice usage; recovery of business registration certificates, establishment and operation licenses, and professional practice permits in accordance with Article 52 of the Decree and Article 65 of Decree No. 98/2007/NĐ-CP.

Article 34. Verification of Conditions for Enforcement of Forced Execution Decisions

1. The authority issuing the forced execution decision shall be responsible for checking existing information databases on declarants, taxpayers, and has the right to verify information about accounts, assets, and conditions for enforcing the forced execution decision against the obligor before the issuance of the decision. Local authorities, registration agencies for ownership and use rights, registration agencies for secured transactions, and related organizations and individuals must create favorable conditions and provide necessary information according to the law to the competent authority enforcing the decision.

2. For property that requires registration, transfer of ownership, or use rights, verification must be based on purchase-sale contracts, exchange contracts, assignment contracts, or gift contracts; through the owner, local authorities, functional agencies, or witnesses such as confirmation from the seller, local authorities, or functional agencies regarding the sale, while also making public announcements to allow interested parties to protect their interests.

For obligors who are agencies or organizations, the authority issuing the forced execution decision needs to verify the amount of money that can be collected by directly examining assets, reviewing financial record-keeping systems, and through other agencies such as capital management agencies, asset management agencies, business registration agencies, asset registration agencies, banks, credit institutions, carriers, and other related individuals or organizations to verify the financial and asset conditions of these agencies and organizations.

Article 35. Procedures for Sending Request Documents, Notifications, and Decisions on Forced Execution to the Obligor and Related Organizations and Individuals

1. Customs officials responsible for enforcing the forced execution decision shall deliver the document directly to the authorized person of the organization or the named recipient. In cases where direct delivery is difficult, the document shall be sent via registered mail through the postal service.

If the recipient is absent, documents related to the enforcement of the forced execution decision shall be delivered to the head of the agency where the recipient works or a close relative with full civil capacity living in the same household to act as a proxy; requiring them to commit to promptly and timely deliver the document to the notified party within the prescribed time frame. The delivery, receipt, and notification must be confirmed by signatures; the time of delivering the document is the time when the proxy commits to transferring the document to the recipient. In case the proxy cannot deliver the document due to objective reasons, they must notify the customs agency.

2. In cases where it is not possible to send the document as stipulated in Clause 1 above, the agency enforcing the forced execution decision shall publicly post the content of the document by affixing the original at the headquarters of the People's Committee of the commune, ward, town where the main office of the organization is located or where the notified party resides, and at the residence of the notified party if their specific residence is known, for a minimum period of five working days.

Public posting must be recorded in a protocol, clearly stating the date, month, year of posting, duration of posting, content of the announcement, and the person conducting the posting, with confirmation from local authorities.

3. In cases where it is impossible to make notifications through the aforementioned methods, the notification shall be made twice consecutively in central or provincial newspapers, radio stations, or television stations if the obligor is determined to be residing in that locality.

Upon completion of the notification on mass media, the newspaper or radio station must issue a confirmation document stating that the notification has been completed and submit it to the customs agency for archiving.

Article 36. Principles for Applying Compulsory Measures to Enforce Administrative Decisions in Customs Affairs.

1. Compulsory measures to enforce administrative decisions in customs affairs may only be applied in cases specified in Article 42 of the Decree.

2. The person authorized to issue the compulsory enforcement decision shall base their decision on the content, nature, and degree of the obligation under the compulsory enforcement decision, the conditions for enforcing the compulsory decision against the subject of enforcement, and the actual situation at the locality to sequentially apply the compulsory measures prescribed in the Decree. In case a subsequent compulsory measure has already been decided upon but there is information or conditions available to implement a previous compulsory measure according to Article 43 of the Decree, the person authorized to issue the compulsory enforcement decision has the right to decide to implement the earlier measure to ensure full collection of tax and fines.

3. Compulsory enforcement shall not be organized on days off as stipulated by labor laws and outside regular working hours, fifteen days before and after the Lunar New Year; traditional days for policy beneficiaries if they are the subjects of enforcement, except in cases where it is necessary to prevent the subject of enforcement from disposing of, destroying assets, or evading the enforcement of the compulsory enforcement decision.

Article 37. Responsibility for Organizing the Enforcement of Compulsory Enforcement Decisions.

1. The person issuing the compulsory enforcement decision is responsible for organizing the enforcement of the compulsory enforcement decision. The leading agency in charge of enforcing the compulsory enforcement decision is responsible for ensuring order during the enforcement process.

2. The person issuing the compulsory enforcement decision is responsible for coordinating with relevant agencies, organizations, and individuals to implement measures to enforce the compulsory enforcement decisions.

3. If it is deemed necessary to have People's Police forces involved during the enforcement process, a written request must be sent to the relevant police agency five working days prior to the enforcement action to arrange the force. When requested to maintain order and safety during the enforcement process, the People's Police forces are responsible for promptly deploying forces to prevent disruptive behavior and resistance to enforcement officers.

Article 38. Time Limit for Enforcing Compulsory Enforcement Decisions.

A compulsory enforcement decision becomes effective within one year from the date of issuance. For compulsory enforcement decisions involving the deduction of funds from the account of the subject of enforcement, the decision becomes effective within thirty days from the date of issuance.

Article 39. Compulsory Measures for Deducting Funds from Deposit Accounts.

1. Compulsory enforcement through the deduction of funds from deposit accounts to enforce administrative decisions related to taxes.

a) The person authorized to issue the compulsory enforcement decision shall directly verify or request in writing information about the account and the current balance in the account of the subject of enforcement. The sending and receiving of such documents shall be conducted according to the regime for confidential documents, and if sent via postal service, it must be done securely. The person authorized to issue the compulsory enforcement decision is responsible for keeping confidential the information about the account of the subject of enforcement when provided.

b) Within three working days from the date of receipt of the request from the authorized person, the subject of enforcement as defined in Clause 3, Article 29 of this Circular (referred to as the subject of enforcement); the State Treasury, commercial banks, and other credit institutions where the subject of enforcement has opened a deposit account must provide in writing the name of the State Treasury, commercial bank, or other credit institution where the account was opened, the account number, and the balance in the deposit account of the organization or individual being enforced. If these institutions fail to provide the required information within the specified time limit, they will be subject to administrative penalties.

c) Based on the received information, the authorized person shall issue a compulsory enforcement decision to deduct funds from the deposit account of the subject of enforcement at the State Treasury, commercial bank, or other credit institution. The compulsory enforcement decision to deduct funds from the deposit account must clearly state the date, month, and year of issuance; the basis for issuance; the name, position, and place of work of the issuer; the amount to be deducted (as recorded in the administrative decision and enforcement costs up to five days before the enforcement action); the reason for the deduction; the name, taxpayer identification number, and account number of the subject of enforcement; the name, address, and account number of the State Treasury, commercial bank, or other credit institution where the person subject to enforcement has an account; the name, address, and account number of the government budget revenue account or temporary holding account of the customs authority opened at the State Treasury, the method of transferring the deducted amount into the government budget revenue account or temporary holding account mentioned above; the deadline for enforcement, and must be signed and stamped by the authorized person issuing the compulsory enforcement decision.

d) The compulsory enforcement decision to deduct funds from the deposit account shall be sent to the subject of enforcement, the State Treasury, commercial bank, or other credit institution where the organization or individual subject to enforcement has opened a deposit account, and relevant agencies five days before the enforcement action.

đ) The State Treasury, commercial bank, or other credit institution in Vietnam where the subject of enforcement has opened an account is responsible for freezing the deposit account of the subject of enforcement if there is a balance remaining in the account upon receipt of the compulsory enforcement decision; transferring the funds of the organization or individual subject to enforcement into the government budget revenue account or temporary holding account of the customs authority opened at the State Treasury as stated in the compulsory enforcement decision within five days from the date of receipt of the decision; simultaneously informing the issuing enforcement agency and the subject of enforcement.

e) If the deposit account of the subject being enforced upon no longer has funds to be deducted, the State Treasury, commercial banks, and other credit institutions must notify in writing the person who issued the enforcement decision within thirty days from the date of receiving the decision to deduct funds from the deposit account;

g) During the period of enforcing the decision, if there remains a balance in the account of the subject being enforced upon that the organizations mentioned above do not transfer into the state budget revenue account or the temporary holding account of the customs authority opened at the State Treasury according to the enforcement decision, they shall be subject to administrative penalties as stipulated in point a, clause 1, Article 19 of the Decree;

h) In case the full amount of tax and fines has been collected, the customs authority must immediately notify the State Treasury, commercial banks, and other credit institutions to stop freezing the account and cease enforcement actions;

2. Enforcement by means of deducting from a deposit account to enforce other administrative penalty decisions concerning customs;

a) The authorized person issuing the enforcement decision organizes direct verification or by written communication of information about the account and the current balance in the account of the subject being enforced upon. The verification procedure is carried out as instructed in points a and b of clause 1 above;

b) Based on the received information, the authorized person issuing the enforcement decision issues an enforcement decision by deducting money from the deposit account of the subject being enforced upon at commercial banks and other credit institutions. Within five (5) days from the date of receiving the enforcement decision, the subject being enforced upon is responsible for requesting the bank where the account was opened to transfer funds from their account to the state budget revenue account or the temporary holding account of the customs authority opened at the State Treasury as stated in the enforcement decision. If the subject being enforced upon intentionally fails to comply with the enforcement decision beyond the prescribed time limit, measures to seize assets will be applied as stipulated in Section IV, Part II of this Circular;

c) Within five (5) days from the date of receiving the enforcement decision, commercial banks and other credit institutions have the responsibility to cooperate with the authorized person issuing the enforcement decision to notify the account holder. Upon receiving the request to transfer funds from the account holder, commercial banks and other credit institutions must transfer the amount from the account of the organization or individual being enforced upon into the state budget revenue account or the temporary holding account of the customs authority opened at the State Treasury as stated in the enforcement decision; simultaneously notifying the authority that issued the enforcement decision and the subject being enforced upon;

d) If there is no remaining balance in the account or there is but insufficient to enforce, commercial banks and other credit institutions must notify in writing the authority that issued the enforcement decision after deducting the current balance;

đ) If there remains a balance in the account of the subject being enforced upon that commercial banks and other credit institutions do not transfer into the state budget revenue account or the temporary holding account of the customs authority opened at the State Treasury according to the enforcement decision, they shall be subject to administrative penalties as stipulated in point b, clause 1, Article 19 of Decree No. 97/2007/NĐ-CP;

e) In case the full amount of tax and fines has been collected, the customs authority must immediately notify the State Treasury, commercial banks, and other credit institutions to stop the enforcement actions.

Article 40. Compulsory Deduction Measures from Part of Wages or Income

1. The compulsory deduction measure from part of wages or income shall only be applied to individuals subject to enforcement of administrative penalty decisions who are officials, civil servants, or individuals working and receiving wages or income at an agency or organization under a fixed-term contract of six months or longer, an indefinite-term contract, or monthly retirement benefits or disability allowances.

2. The person authorized to issue the compulsory enforcement decision must organize verification of the lawful incomes of the individual subject to enforcement, including: wages, retirement wages, disability allowances, bonuses, and other lawful incomes.

3. Based on the verification results, the person authorized to issue the compulsory enforcement decision shall implement the compulsory deduction measure from part of the wages or income of the individual subject to enforcement.

4. The decision on compulsory deduction from part of the wages or income of an individual must clearly state the date, month, and year of issuance; basis for issuance; name, position, place of work of the issuer; name and address of the individual subject to compulsory deduction from part of the wages or income; name and address of the agency or organization managing the wages or income of the individual subject to enforcement; amount deducted (as recorded in the administrative decision and enforcement costs up to five days before enforcement), reasons for deduction; name and address of the State Treasury receiving the money, method of transferring the deducted amount to the State Treasury; time of execution; signature of the issuer, seal of the issuing agency.

5. Upon the next payment period for wages or income, the agency, organization, or employer managing the wages or income of the individual subject to enforcement shall be responsible for deducting part of the wages or income of the individual subject to enforcement according to the content recorded in the compulsory enforcement decision and transferring the deducted amount into the State Budget revenue account or the temporary holding account of the customs agency opened at the State Treasury as stated in the compulsory enforcement decision, while simultaneously informing the person authorized to issue the compulsory enforcement decision.

6. The rate of deduction from wages, retirement wages, or disability allowances for an individual shall not be less than 10% (ten percent) and not more than 30% (thirty percent) of the total monthly wages or allowances of that individual; for other income sources, the rate of deduction shall be based on actual income but shall not exceed 50% (fifty percent) of the total income.

7. In cases where the full tax or fine amount specified in the compulsory enforcement decision has not been deducted and the labor contract of the enforcement target terminates, the agency or organization employing the labor must inform the issuer of the compulsory enforcement decision within five working days from the date of termination of the labor contract.

8. If the agency, organization, or employer managing the wages or income of the individual subject to enforcement fails to implement the compulsory enforcement decision, they shall be subject to administrative penalties as stipulated in Clause 2, Article 19 of Decree No. 97/2007/NĐ-CP.

Article 41. Compulsory Seizure of Assets and Auction of Seized Assets

1. This compulsory measure shall only be applied when the customs authority cannot apply the compulsory measures prescribed in Clause 1 and 2 of Article 43 of the Decree due to lack of information about bank accounts or income of the organization or individual subject to enforcement, or has already applied the compulsory measures prescribed in Clause 1 and 2 of Article 43 of the Decree but has not collected the full amount of tax arrears and fines.

2. Cases where the compulsory measure of asset seizure shall not be applied:

a) The subject of enforcement is undergoing treatment and has been confirmed by a health agency or organization;

b) Within fifteen days from the date of receiving the request of the customs authority, the subject of enforcement does not provide information on assets currently owned, and the customs authority does not receive other information about the assets of the subject of enforcement;

c) The value of the assets of the subject of enforcement is insufficient to cover the costs of enforcement.

3. Assets that are not subject to seizure

a) For organizations subject to enforcement:

a.1. Medicines, means, tools, and assets belonging to medical facilities and hospitals, except when these are assets for trade; foodstuffs, utensils, and assets serving meals during work hours for employees;

a.2. Kindergartens, schools, and equipment, means, and items belonging to such facilities, if they are not assets for business trade of enterprises;

a.3. Equipment, means, and tools ensuring labor safety; fire prevention and environmental pollution control;

a.4. Important infrastructure serving public interests, security, and national defense;

a.5. Raw materials, finished products, semi-finished products which are hazardous chemicals or assets not permitted to circulate;

a.6. Raw materials and semi-finished products located within a closed production line;

a.7. Office premises of state agencies, political organizations, socio-political organizations, social-professional organizations, and assets directly provided by the State Budget.

b) For individuals subject to enforcement:

b.1. The sole residence of the individual subject to enforcement and their family. In cases where the individual subject to enforcement has multiple residences, it must be verified that the seized residence has sufficient value to pay off the tax arrears, fines, and enforcement costs;

b.2. Medicines necessary for disease prevention and treatment, foodstuffs serving essential needs for the individual subject to enforcement and their family;

b.3. Common tools of labor necessary for the primary or sole livelihood of the individual subject to enforcement and their family.

Tools of labor with significant value such as motorcycles, cars, boats, tractors, sand grinders, and other valuable items of the subject of enforcement will still be seized and auctioned to enforce the enforcement decision, and a portion of the proceeds will be set aside to allow the subject of enforcement to replace them with less valuable tools of labor.

b.4. Clothing and common household items necessary for the individual subject to enforcement and their family at the minimum level in each locality, such as pots, pans, plates, beds, cabinets, tables, chairs, and other common items of low value. Household items or personal belongings such as televisions, refrigerators, air conditioners, washing machines, computers, jewelry made of gold, silver, precious stones (except wedding rings) will still be seized to ensure the execution of administrative decisions;

b.5. Ritual items, relics, medals, awards.

4. The order of asset seizure is as follows:

a) Seize imported goods in transit to Vietnam, arrived at the import gate, or being transported to warehouses or storage areas of the subject of enforcement (excluding raw materials for export production, humanitarian aid goods, imported goods for investment capital contribution, perishable agricultural and food products);

b) Seize the following assets when there is sufficient information and conditions:

b.1. Seize circulating goods or goods displayed in stores of the subject of enforcement;

b.2. Seize other assets as requested by the subject of enforcement;

b.3. Seize other assets.

5. Verification of asset information

a) When there is information about goods of the subject of enforcement in transit or arrived at the import gate, the Import Gate Customs Branch shall immediately notify the person authorized to issue the enforcement decision;

b) The person authorized to issue the enforcement decision shall organize direct verification or require the subject of enforcement to provide in writing information about their assets and their value;

6. Decision on compulsory asset seizure

a) The decision on compulsory asset seizure must clearly state the date of issuance, basis for the decision, name, position (rank), unit of the decision issuer, name, place of residence, office of the individual whose assets are to be seized, amount to be enforced, location of seizure, signature of the decision issuer, seal of the issuing authority;

b) The decision on compulsory asset seizure must be sent to the individual whose assets are to be seized, the People's Committee of the commune where the individual resides, or the organization with an office in the area, or the agency where the individual works five working days before the enforcement of the asset seizure, except in cases where the issuing authority determines that sending the decision in advance would hinder the asset seizure process;

7. Procedures for implementing asset seizure

a) Asset seizure must be carried out during daylight hours and within regular working hours in the locality where the assets are located, except in cases where the subject of enforcement is found to be disposing of, destroying assets, or evading enforcement of the decision, in which case the person authorized to issue the enforcement decision may organize night-time asset seizure to prevent such actions by the subject of enforcement;

b) The person issuing the enforcement decision or the person assigned to implement the decision shall lead the asset seizure process.

c) Before issuing a decision to seize assets, the person issuing the enforcement decision requests the authority registering ownership and use of assets to provide information on the ownership and use of the assets of the entity subject to enforcement; requests the authority registering guarantee transactions to provide information on whether the assets intended for seizure are being used as security for the performance of obligations by the entity subject to enforcement towards another party, or whether the assets managed and used by the entity subject to enforcement are financial lease assets. Within five (5) working days, the relevant authorities must respond in writing to the person issuing the enforcement decision regarding the requested contents.

d) When carrying out asset seizure, the individual subject to enforcement or an adult member of their family, the legal representative of the organization whose assets are being seized, the representative of the local administrative authority, and a witness must be present.

If the individual required to enforce the enforcement decision or an adult member of their family intentionally absents themselves, the asset seizure will still proceed but must have the presence of a representative of the local administrative authority and a witness.

đ) The individual or organization subject to enforcement has the right to propose which assets should be seized first; the person responsible for leading the seizure must accept such proposal if it does not affect the enforcement process. If the individual or organization subject to enforcement does not specifically propose which assets should be seized first, then personal property will be seized first.

e) Only joint assets of the individual subject to enforcement with others shall be seized if the individual subject to enforcement does not have personal assets or if their personal assets are insufficient to enforce the enforcement decision. In cases where there is a dispute over the assets, the seizure will still proceed and the co-owners of the seized assets will be informed about their right to initiate civil litigation proceedings.

The authority conducting the seizure is responsible for publicly announcing the time and location of the seizure so that co-owners can be aware. After three (3) months from the date of seizure, if no lawsuit is initiated, the seized assets will be auctioned off according to the provisions of the law on asset auctions.

g) Only the right to use land, housing, and office premises of the entity subject to enforcement shall be seized if, after seizing all other assets, it is still insufficient to enforce the enforcement decision.

h) Only assets of the entity subject to enforcement sufficient to ensure the enforcement of the enforcement decision and the payment of enforcement costs may be seized. In cases where the entity subject to enforcement only has a single asset larger than the obligation under the enforcement decision and cannot be divided or dividing it would significantly reduce its value, the authority conducting the seizure still has the right to seize the asset to ensure the enforcement of the enforcement decision.

i) In cases where the seized asset is a residence or an item that is locked or packed, the organization implementing the enforcement decision requires the entity subject to enforcement, the current user, or manager of the asset to unlock or unpack it; if the entity subject to enforcement, the current user, or manager of the asset refuses to unlock or unpack it or intentionally absents themselves, the organization implementing the enforcement decision records this in a report (with the presence of a representative of the local administrative authority and a witness) unlocking or unpacking it to inspect and list the specific assets and seize them according to the provisions of the law.

In cases where the individual subject to enforcement or the person with rights and obligations related to them is serving a prison sentence, the person in charge of implementing the enforcement decision shall notify these individuals of the enforcement decisions and notices through the prison warden. The person in custody may authorize another person to exercise their rights and obligations regarding the enforcement decision.

k) For cases where the seized asset is registered for ownership or use rights, when issuing an enforcement decision involving asset seizure, the person in charge of implementing the enforcement decision must immediately inform the following authorities of the asset seizure:

k.1. The Land Registration Office and the competent authority for registering immovable property attached to land in cases of land use rights and immovable property attached to land seizures;

k.2. Vietnam Civil Aviation Authority in cases of aircraft seizures;

The maritime registration authority and seafarer region in cases of ship seizures;

k.3. The Highway Traffic Police Corps and Highway Traffic Police Departments in cases of road motor vehicle seizures;

k.4. Other competent authorities for registering ownership or other forms of ownership as prescribed by law.

l) From the date of receiving notification of the asset seizure, the authority registering ownership and use of the asset shall not register the transfer of the asset, except as otherwise provided by law.

Within no more than three (3) working days from the date of lifting the asset seizure or completing the sale or delivery of the seized asset for enforcement of the enforcement decision, the organization implementing the enforcement decision must notify the authority registering ownership and use of the asset.

m) Within thirty (30) days from the date of asset seizure, if the entity subject to enforcement fails to pay the owed taxes and fines, the customs authority has the right to auction the seized asset to collect the owed taxes and fines.

8. Asset Seizure Report

a) The asset seizure must be recorded in a report. The report must include the time and place of the asset seizure; the name and position of the person leading the seizure; the representative of the organization whose assets are being seized, the individual with seized assets or their legal representative; the witness; the representative of the local administrative authority (or the authority of the individual subject to enforcement); representatives of organizations or agencies related to the case; descriptions of the name, condition, and characteristics of each seized asset, and certificates of ownership and use of the asset (for types of assets requiring registration of ownership and use).

b) The person in charge of executing the seizure; the representative of the organization subject to forced seizure of assets, the individual whose assets are seized, or their lawful representatives; witnesses; representatives of local authorities (or agencies of individuals subject to forced seizure); representatives of organizations or agencies related to the matter shall sign on the record. In case of absence or refusal to sign the record by any party, such fact must be recorded in the record with the reasons stated clearly.

c) The seizure record shall be made in two (2) copies, the agency issuing the decision on forced execution retains one (1) copy, one (1) copy is handed over to the individual whose assets are seized or the representative of the organization subject to forced seizure immediately after completing the record of asset seizure.

9. Entrusting the preservation of seized assets

a) The person in charge of executing the seizure selects one of the following methods for preserving seized assets:

a.1. Entrusting the individual subject to forced execution, relatives of the individual subject to forced execution, or the current manager/user of the asset to preserve it;

a.2. Entrusting one of the co-owners to preserve it if the asset is jointly owned;

a.3. If the individual subject to forced execution, the current user/manager of the asset, or relatives of the individual subject to forced execution refuse to accept the preservation or there are signs indicating the disposal, destruction of the asset, or obstruction of the enforcement of the forced execution decision, then depending on specific circumstances, the seized asset may be entrusted to an organization or individual capable of preserving it;

a.4. The person in charge of executing the seizure must ensure the safekeeping and preservation of documents regarding ownership and usage rights of the secured asset during the enforcement of forced execution.

b) For assets such as gold, silver, precious metals, gemstones, foreign currencies, they are temporarily managed by the State Treasury; for assets like weapons, explosives, radioactive materials, military technical equipment and facilities, industrial explosives, tools, historical and cultural artifacts, national treasures, antiques, rare forest products, they are temporarily managed by specialized state management agencies;

c) When entrusting the preservation of seized assets, the person in charge of executing the seizure must prepare a record detailing: the date, month, year of handing over for preservation; the name of the person in charge of enforcing the forced execution decision, the individual or representative of the organization subject to forced execution, the person entrusted with the preservation of the asset, and the witness; quantity and condition (quality) of the asset; rights and obligations of the person entrusted with the preservation of the asset;

The person in charge of executing the seizure, the person entrusted with the preservation of the asset, the individual or representative of the organization subject to forced execution, and the witness shall sign on the record. In case of absence or refusal to sign the record by any party, such fact must be recorded in the record with the reasons stated clearly.

The record is handed over to the person entrusted with the preservation of the asset, the individual or representative of the organization subject to forced execution, the witness, and the person in charge of executing the seizure, each retaining one (1) copy.

d) The person entrusted with the preservation of the asset is entitled to reimbursement for actual and reasonable expenses incurred in preserving the asset, except for those specified in point a, Clause 1, Article 54 of Decree No. 98/2007/NĐ-CP dated June 7, 2007.

đ) If the person entrusted with the preservation of the asset causes damage, substitution, loss, or destruction of the asset, they shall bear responsibility for compensation and, depending on the nature and degree of violation, may be subject to administrative penalties or criminal prosecution according to the provisions of criminal law.

10. Valuation of Seized Assets

a) The valuation of seized assets is conducted at the residence of the individual or the office of the organization subject to seizure or the place where the seized assets are stored (except in cases requiring the establishment of a Valuation Committee).

b) At the time of seizure, the person in charge of enforcing the forced execution decision must temporarily estimate the value of the assets to be seized, corresponding to the value sufficient to cover the amount subject to forced execution and the costs of forced execution. The person in charge of enforcing the forced execution decision bases this on market prices and may also seek opinions from relevant authorities and parties involved to temporarily estimate the value of the seized assets;

After the seizure, if the parties agree on the value of the seized assets, the person in charge of enforcing the forced execution decision shall prepare a record detailing the agreement, signed by all parties involved.

c) The seized assets are valued through negotiations between the person in charge of enforcing the forced execution decision and the representative of the organization or individual subject to forced execution, and the common owner in the case of joint asset seizure. The deadline for negotiating the value does not exceed five (5) working days from the date of the seizure;

For seized assets valued under 500,000 VND or assets that deteriorate quickly, if the parties cannot agree on the value, the authority issuing the forced execution decision is responsible for valuing the assets.

d) In cases where the seized assets are valued at 500,000 VND or more and are difficult to value, or the parties cannot agree on the value, within fifteen (15) days from the date of seizure, the authority issuing the forced execution decision shall request the competent authority to establish a Valuation Committee to value the seized assets;

Within two (2) days from the completion of the procedures to verify information about the assets, the agency directly organizing the forced execution must submit a written request to the Chairman of the People's Committee of the province where the forced execution takes place or where the headquarters of the organization subject to forced execution is located, or where the individual subject to forced execution resides, to decide on establishing a Valuation Committee;

The person issuing the forced execution decision is the Chairman of the Committee, representatives of financial agencies, and related professional agencies are members. The person in charge of enforcing the forced execution decision has the right to hire or request an appraisal of the value of the asset. Upon request by the person in charge of enforcing the forced execution decision, the professional agency is responsible for assigning a specialist to participate in the valuation. Representatives of professional agencies in the Valuation Committee are specialists and technicians from the competent authority managing the professional and technical aspects of the asset being valued. If the asset being valued is a residential property, representatives of land management agencies and construction management agencies must participate in the Valuation Committee.

Within seven (7) working days from the date of establishment, the Valuation Council must conduct the valuation. The individual whose property has been seized or the representative of the organization with seized property may participate in the valuation process, but the decision on the valuation price rests with the Valuation Council;

The Valuation Council bases the asset valuation on the market price at the time of valuation and the professional opinions of appraisal agencies to determine the asset value. The Valuation Council decides on the asset price based on the majority opinion; in cases where parties have equal opinions on the asset price, the opinion of the Chairman of the Valuation Council serves as the basis for determining the initial sale price. Members of the Valuation Council have the right to retain their own opinions and recommend that those with authority review the valuation decision. For assets subject to unified state pricing management, the valuation is based on the state-determined asset price;

d) The asset valuation must be recorded in a protocol, which includes the time and place of the valuation, the participants in the valuation, the name and value of the valued asset, the signatures of the valuation participants and the asset owner;

11. Transfer of Seized Assets for Auction Sale

a) For assets seized for auction sale, based on the asset value determined according to the guidance in Clause 10 above, within thirty (30) days from the date of the seizure decision, the person in charge of enforcement signs an authorization contract for auction sale with organizations authorized to conduct auction sales to organize the sale of the asset:

a.1. For seized assets with a determined value under ten million VND, the person in charge of enforcement signs an authorization contract for auction sale with the county financial agency to organize the auction sale;

a.2. For seized assets with a determined value of ten million VND or more, the person in charge of enforcement signs an authorization contract for auction sale with the provincial auction service center where the asset is located to organize the auction sale;

b) The initial sale price for auctioned assets is the asset value determined at the time of seizure according to the guidance in Clause 10 of this Article;

c) The transfer of seized assets to the responsible agency for auction sale must be recorded in a protocol. In the protocol, it must clearly state: the date, month, year of transfer; the transferor, transferee; signatures of the transferor and transferee; quantity and condition of the asset. The transfer documentation for seized assets to the responsible agency for auction sale includes: administrative enforcement decision; relevant ownership and usage rights documents (if any); asset valuation document and transfer protocol;

d) In cases where seized assets are bulky goods or in large quantities, and the provincial auction service center or county financial agency does not have storage facilities, after completing the transfer procedures, a storage agreement can be signed with the current holder of the asset. Costs for implementing the storage agreement are paid from the proceeds of the auction sale;

đ) When seized assets have been transferred to the responsible agency for auction sale, the auction sale procedures shall be carried out in accordance with current laws governing the auction sale of assets;

e) For jointly owned assets, when auctioned, preference is given to selling them first to co-owners;

g) If the proceeds from the auction sale of assets exceed the amount specified in the administrative enforcement decision and the costs of enforcement, within ten (10) days from the date of the auction sale, the agency enforcing the administrative measure of seizure for auction sale shall process the return of the excess amount to the enforcement target;

12. Transfer of Asset Ownership Rights

The buyer of seized assets is recognized and protected by law in terms of ownership and usage rights over the asset;

The competent state agency is responsible for processing the transfer of ownership and usage rights to the buyer in accordance with the law;

The transfer documentation includes:

c.1. A copy of the administrative enforcement decision to seize assets for auction sale;

c.2. The auction sale protocol;

c.3. Other relevant documents concerning the asset (if any);

13. The proceeds from the auction sale of seized assets and assets obtained from other individuals or organizations holding assets of the enforcement target shall be processed in the following order:

a) Payment of enforcement costs and costs for the auction sale of seized assets and assets obtained from other individuals or organizations;

b) Deposit the corresponding tax and penalty amounts specified in the enforcement decision into the State Treasury account or the temporary holding account of the customs agency opened at the State Treasury;

c) Refund any surplus to the enforcement target.

Article 42. Compulsory Measures to Collect Money and Assets from the Object of Enforcement Held by Other Organizations or Individuals

1. This measure shall only be applied when the customs authority is unable to apply the enforcement measures prescribed in Clauses 1, 2, and 3 of Article 43 of the Decree or has already applied them but has not collected the full amount of overdue taxes, fines, and the customs authority has grounds to determine that a third party currently holds a debt or retains money and assets of the object of enforcement.

2. The person holding the assets of organizations or individuals subject to enforcement as stipulated in Clause 4 of Article 43 of the Decree includes:

a) Individuals, households, or organizations (such as stock trading centers, securities companies, business partners...) authorized by the object of enforcement to hold such assets;

b) Individuals, households, or organizations owing debts to the object of enforcement;

c) Individuals or organizations being the subject of security transactions or procedures for handling assets as provided by law;

d) Domestic tax authorities currently holding value-added tax payments, money, or other assets due for refund to the object of enforcement;

đ) Other agencies or organizations (freight forwarders, bonded warehouses, entrusted importers) currently holding imported goods of the object of enforcement.

3. Principles for Collecting Money and Other Assets from the Object of Enforcement from Third Parties

a) A third party with a due debt owed to the object of enforcement or holding money or other assets of the object of enforcement shall have the responsibility to pay the overdue taxes and fines on behalf of the object of enforcement;

b) In cases where the money or other assets of the object of enforcement held by a third party are the subject of security transactions or fall under bankruptcy proceedings, the collection of money or other assets from the third party shall be carried out in accordance with the provisions of the law;

c) The amount deposited by the third party into the state budget revenue account or the temporary holding account of the customs authority opened at the State Treasury on behalf of the object of enforcement shall be considered as payment made to the object of enforcement.

Based on the receipt of money and assets from the third party, the competent authority for enforcement shall notify the object of enforcement and relevant agencies.

4. Responsibilities of Third Parties Holding Debts or Retaining Money and Other Assets of the Object of Enforcement

a) Provide the customs authority with information about the debt or money and other assets being held of the object of enforcement, specifying the amount of money, repayment deadlines, type of asset, quantity of assets, and condition;

b) Upon receiving a written request from the competent authority, they shall not transfer money or other assets to the object of enforcement until they deposit the money into the state budget revenue account or the temporary holding account of the customs authority opened at the State Treasury or transfer the asset to the customs authority for auction procedures;

c) If they cannot fulfill the customs authority's requirements, they must provide a written explanation to the customs authority within five working days from the date of receipt of the request;

d) Organizations or individuals holding a debt or retaining money and other assets of the object of enforcement who fail to make the substitute payment of the enforced tax within fifteen days from the date of receipt of the customs authority's request shall be deemed to owe the state tax and shall be subject to enforcement measures as prescribed in Article 43 of the Decree.

Article 43. Enforcement through other measures

1. Enforcement through the measure of suspending customs procedures for imported goods

a) This measure shall only be applied when the Customs authority cannot apply the enforcement measures prescribed in Clauses 1, 3, and 4 of Article 43 of the Decree, or has already applied them but has not collected the full amount of overdue taxes and fines;

b) The authorized person deciding on enforcement must issue an enforcement decision to be sent to the subject of enforcement and announced on the customs information network at least five working days before applying the measure of suspending customs procedures for imported goods;

c) The enforcement decision must clearly state the date of issuance; the decision number, legal basis for issuing the decision; reasons for enforcement, name, position, place of work of the issuer; name and address of the subject of enforcement; detailed amounts of unpaid taxes and fines according to each declaration or case; total amount to be enforced; name, address, account number at the State Treasury; deadline for implementation; signature of the issuer, stamp of the issuing authority;

d) The enforcement through suspension of customs procedures must be carried out strictly in accordance with the provisions of the law. In cases where the temporary lifting of the enforcement suspension of import procedures is allowed by law, it must ensure that no new debts arise and be guaranteed by a credit institution or another organization operating under the Law on Credit Institutions regarding the tax and fine debt temporarily lifted from enforcement;

2. Enforcement through the measure of revoking tax identification numbers, suspending the use of invoices; revoking business registration certificates or establishment and operation licenses, professional practice licenses;

When applying the enforcement measure of revoking tax identification numbers, suspending the use of invoices; revoking business registration certificates or establishment and operation licenses, professional practice licenses against taxpayers, the competent Customs authority must:

a) Notify the subject of enforcement of this measure at least five working days before its application;

b) Send a written request to the competent state management authority to revoke tax identification numbers, suspend the use of invoices; revoke business registration certificates, establishment and operation licenses, professional practice licenses;

Within ten days from the date of receiving the notification from the Customs authority, the competent state management authority must issue a decision to revoke tax identification numbers, suspend the use of invoices; revoke business registration certificates or establishment and operation licenses, professional practice licenses. If revocation does not occur, the authority must notify the Customs authority and provide the reasons;

3. Enforcement to confiscate items and means used in administrative violations; enforcement to implement measures to mitigate the consequences caused by administrative violations;

The procedures for applying the enforcement measures to confiscate items and means used in administrative violations; enforcement to implement measures to mitigate the consequences caused by administrative violations shall be carried out in accordance with the provisions of Section D Chapter II and Chapter III of Decree No. 37/2005/NĐ-CP dated March 18, 2005.

Article 44. Enforcement Costs

1. Content of Costs

a) Costs for mobilizing personnel to carry out the enforcement decision;

b) Costs for renting equipment to dismantle, transport objects, and assets;

c) Enforcement protection costs: Costs for those directly participating in protection (the person issuing the enforcement decision, security guards, medical staff, enforcement officers, representatives of local authorities, social organizations...), fuel purchase costs, rental of protective equipment and necessary medical equipment to serve the enforcement decision;

d) Fire prevention and explosion control costs (if applicable): rental of fire trucks, rental of fire prevention and extinguishing equipment, rental of mine detection and disposal equipment, and other necessary fire prevention and explosion control equipment;

đ) Costs for renting custody or preservation of seized assets;

e) Asset valuation and auction costs: remuneration for members of the Valuation Council, asset appraisal costs (if applicable), rental costs for venue and equipment to organize auctions, posting costs, organization costs for revaluation of assets; costs for publishing auction announcements on mass media;

g) Other actual costs serving the enforcement decision (if applicable).

2. Levels of expenditure

- The costs: rental for custody or preservation of assets; asset appraisal; rental costs for venue and equipment to organize auctions; costs for publishing auction announcements on mass media; rental costs for transporting objects and assets during enforcement... shall be implemented based on contracts, invoices, and valid expense receipts according to regulations;

- Other costs: the level of expenditure shall be implemented according to general State regulations.

In cases where the State has not specified the level of expenditure, the entity organizing the enforcement decision shall determine the level of expenditure and bear responsibility for their decision.

3. Source of Funding for Enforcement Costs

The costs for enforcing the enforcement decision shall be borne by the subject of enforcement.

In cases where the enforcement costs must be borne by the administrative enforcement subject but have not been collected by the customs authority, the customs authority may temporarily borrow from the operating budget of the customs sector and be reimbursed immediately upon collection of funds from the administrative enforcement subject. The temporary borrowing amount shall not exceed thirty million dong. For cases with large enforcement costs, if the permitted amount of temporary borrowing is insufficient, the person issuing the enforcement decision shall report to the higher-level customs authority for consideration and resolution on a case-by-case basis.

4. Exemption and Reduction of Enforcement Costs

a) Individuals subject to enforcement may be considered for exemption or reduction of enforcement costs if they fall under one of the following circumstances:

- Economic hardship. Individuals facing economic hardship are those whose income does not meet the minimum living standard required for normal living or who are in a prolonged particularly difficult economic situation due to natural disasters or fires. The minimum income level is the income that does not fall within the taxable income range for high-income individuals.

The decision to exempt or reduce enforcement costs will be revoked if it is discovered that the enforcement subject has engaged in acts of disposing of or concealing money or assets to evade verification of specific conditions for enforcement.

- Belonging to policy families, having meritorious service to the revolution;

- Being single, disabled, or suffering from prolonged illness.

b) Procedures for Exemption and Reduction of Enforcement Costs:

To be considered for exemption or reduction of enforcement costs, individuals must submit a request for exemption or reduction of enforcement costs with confirmation from the People's Committee of the commune where they reside or work, or confirmation from the head of the agency or organization where they are employed. Additionally, the procedures include:

- For individuals subject to enforcement facing economic hardship due to natural disasters or fires, confirmation from the People's Committee of the commune where they reside or from the head of the agency or organization where they are employed is required;

c) Level of Exemption and Reduction of Enforcement Costs:

- Individuals subject to enforcement who have partially complied with the enforcement but are in a prolonged particularly difficult economic situation due to natural disasters or fires shall be considered for reduction of the remaining enforcement cost;

- Individuals mentioned in point a, Clause 4, Section of this Article shall be considered for a fifty percent reduction of the enforcement cost to be paid.

d) The authorized person issuing the enforcement decision shall accept applications, review, and decide on the exemption and reduction of enforcement costs.

In cases where the enforcement decision-making body decides to exempt or reduce enforcement costs, the enforcement costs will be covered from the unit's operating budget.

Chapter III

IMPLEMENTATION

Article 45. Responsibilities 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 legal provisions.

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

The Directors of the Customs Bureau, the Anti-Smuggling Investigation Bureau, and the Post-Clearance Control Bureau under the General Department of Customs shall strictly organize inspections of administrative violation handling 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 enforcement of administrative penalties and enforcement of administrative decisions, or those tasked with advising the authorized penalty-imposing officials, who commit acts violating legal provisions, 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 provide compensation.

4. The forms and seals 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 appendix of this Circular. The Director of the General Department of Customs shall be responsible for guiding the uniform use of these forms and seals throughout the sector.

Article 46. Effective Date

1. This Circular shall take effect 45 days from the date of signature. The Circular No. 62/2007/TT-BTC dated June 14, 2007, 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, is hereby abolished.

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