Circular No. 195/2010/TT-BTC guides the handling of goods stored in bonded warehouses.

 CIRCULAR

Guidelines for handling goods stored in bonded warehouses beyond their storage period

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

Based on Decree No. 118/2008/NĐ-CP dated November 27, 2008, issued by the Government, stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;

To implement Resolution No. 25/NQ-CP dated June 2, 2010, issued by the Government, concerning the simplification of 258 administrative procedures within the scope of management functions of ministries and sectors;

The Ministry of Finance hereby issues guidelines for handling goods stored in bonded warehouses beyond their storage period as follows:

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

These Circulars provide guidelines for handling goods stored in bonded warehouses as prescribed in Decree No. 154/2005/NĐ-CP dated December 15, 2005, issued by the Government, detailing certain provisions of the Law on Customs regarding customs procedures, customs inspection, and supervision, including:

1. Goods stored in bonded warehouses exceeding the 90-day period from the expiration date of the bonded warehouse lease contract, where the owner does not extend the contract or remove the goods from the bonded warehouse;

2. Goods stored in bonded warehouses exceeding the 90-day period from the expiration date of the extended bonded warehouse lease contract, where the owner does not remove the goods from the bonded warehouse;

3. Goods within the term of the bonded warehouse lease contract but the owner has submitted a written notice to abandon the goods to the bonded warehouse;

4. For goods still within the term of the bonded warehouse lease contract, if the bonded warehouse operator discovers that such goods are damaged causing environmental pollution or have expired, the bonded warehouse operator shall notify the owner in writing to handle the situation according to regulations and the lease contract. If the owner fails to handle the situation within the notified time limit, the goods will be handled according to these Circulars.

Article 2. Subjects Implementing the Project

1. Bonded warehouse operator.

2. Customs Department, Branch Customs Office managing the bonded warehouse.

3. Committee for handling goods stored in bonded warehouses beyond their storage period.

4. Owner of goods stored in the bonded warehouse.

5. Other entities related to the handling of goods stored in bonded warehouses beyond their storage period.

Chapter II

HANDLING OF GOODS STORED IN BONDED WAREHOUSES BEYOND THEIR STORAGE PERIOD

Article 3. Notification of goods stored in bonded warehouses

1. At least 15 days before the expiration date of the bonded warehouse lease contract or the extended lease contract, the bonded warehouse operator shall notify the owner and the Branch Customs Office managing the bonded warehouse in writing about the impending expiration of the lease contract or extended lease contract.

2. Quarterly (on the last 15 days of each quarter), the bonded warehouse operator shall report to the Branch Customs Office managing the bonded warehouse on the status of goods stored in the bonded warehouse beyond their storage period according to the form attached to these Circulars. In cases where goods need to be handled as specified in Article 1 of these Circulars, the bonded warehouse operator shall prepare a dossier to request the handling of goods stored in the bonded warehouse beyond their storage period and submit it to the Branch Customs Office managing the bonded warehouse for processing.

In cases where goods need to be handled immediately due to damage causing environmental pollution, expiration, or nearing expiration with less than 45 days remaining, even before the regular reporting deadline, the bonded warehouse operator shall prepare a dossier for immediate handling within three working days from the date of discovery.

Article 4. Documents for Requesting the Handling of Goods Stored in Bonded Warehouses

1. The documents for requesting the handling of goods stored in bonded warehouses shall be prepared in two (02) sets; one (01) set to be sent to the Customs Sub-Department managing the bonded warehouse, and one (01) set to be kept at the bonded warehouse.

2. The documents for requesting the handling of goods stored in bonded warehouses include:

a) A letter from the bonded warehouse owner requesting the handling of goods stored in the bonded warehouse, addressed to the Customs Sub-Department managing the bonded warehouse: original;

b) Lease contract for the bonded warehouse; extension lease contract for the bonded warehouse (if any): copy;

c) Notifications from the bonded warehouse owner to the consignor (if any): copy;

d) Documentation from the consignor regarding the abandonment of goods stored in the bonded warehouse (if any): copy;

đ) Inventory list of the quantity, type, specifications of goods still stored in the bonded warehouse, lease contract number, date of import/export declaration for the bonded warehouse: original;

e) Other relevant documents and certificates related to goods stored in the bonded warehouse: copy.

3. The copies specified in points b, c, d, and e of Clause 2 of this Article must be signed and stamped by the bonded warehouse owner.

Article 5. Committee for Handling Goods Stored in Bonded Warehouses

1. Within five (05) days from the date of receiving complete documents for requesting the handling of goods stored in bonded warehouses as stipulated in Clause 2 of Article 4 of this Circular from the bonded warehouse owner, the Customs Sub-Department managing the bonded warehouse shall report to the Director of the Provincial/City Customs Department (where the bonded warehouse is located) to decide on establishing the Committee for Handling Goods Stored in Bonded Warehouses (hereinafter referred to as the Committee for Handling), with the following composition:

a) Chairman of the Council: Leader of the Customs Department;

b) Deputy Chairperson of the Committee: Leader of the Customs Sub-Department managing the bonded warehouse;

c) Members:

- The bonded warehouse owner or their authorized representative;

- A representative from the Provincial Department of Finance (where the bonded warehouse is located);

- A representative from a related entity (if necessary).

2. The number of members of the Committee shall be decided by the Director of the Customs Department based on the proposal of the Customs Sub-Department managing the bonded warehouse, taking into account the volume and nature of the stored goods, and the tasks to be handled. During its operation, the Committee for Handling may use the seal of the Customs Department to perform its duties.

3. The Committee for Handling will automatically dissolve after completing the tasks specified in the decision to establish the Committee.

In cases where necessary, based on the actual situation in handling goods stored in bonded warehouses, the Director of the Customs Department may establish the Committee for Handling Goods Stored in Bonded Warehouses annually to handle goods stored in bonded warehouses within their management scope that arise in that year.

Article 6. Procedure for Handling Goods Stored in Bonded Warehouses

1. Inventory, classification, and formulation of handling plans for goods stored in bonded warehouses:

Within fifteen (15) days from the date of the decision to establish the Committee, the Committee shall complete procedures for opening seals on the warehouse, goods, or containers (if any), conduct an inventory of the actual quantity of stored goods at the bonded warehouse, classify the goods, determine the value of the goods (if handled through sale) to formulate a handling plan as follows:

a) For goods that have lost their usability (rotten, broken, damaged, deteriorated quality, expired, not meeting quality standards) or prohibited from circulation according to Vietnamese laws, destruction shall be carried out.

b) For goods listed in the prohibited import category according to laws, the Committee shall transfer the documents to the competent authority for handling according to the law.

c) For goods not falling under the provisions of point a and point b of this clause, they shall be sold.

In cases where goods specified in this clause belong to the list of conditional imports, the Committee shall request the Customs Department to report to the competent authority for permission to import.

The valuation for formulating the handling plan as stipulated in this clause shall be based on the remaining quality of the goods and the selling price of new goods of the same type. The valuation method shall be implemented according to the Regulation on Valuation of Goods and Services issued by the Minister of Finance.

During the implementation of the tasks stipulated in this clause, if deemed necessary, the Committee may hire an appraisal organization established and operating according to the law to appraise the quality of goods, serving as the basis for formulating the asset handling plan and determining the value of assets.

2. The sale of goods stored in bonded warehouses shall be conducted through public auction according to the law, except for the following cases permitted to sell directly (without auction):

a) Goods that are prone to damage or whose shelf life indicated on the label or accompanying documents is less than thirty (30) days;

b) The value of goods, according to the Committee's valuation result, is below fifty million dong per lot of goods.

3. Within fifteen (15) days from the completion of the tasks stipulated in Clause 1 of this Article, the Committee shall be responsible for organizing the handling of assets as follows:

a) For goods that need to be destroyed: The organization of destruction must be recorded in a Destruction Record by the Committee and handed over to the bonded warehouse owner for execution, with the presence of the Committee. If necessary, the Committee may invite relevant state management agencies to witness the destruction.

For types of goods where destruction affects the environment, approval and guidance from the local environmental management agency must be obtained before organizing the destruction.

The main contents of the Destruction Record include: basis and reasons for destruction; time and location of destruction; participants in the destruction; name, type, quantity, condition of goods at the time of destruction; method of destruction and other related contents.

b) For goods sold directly: Based on the value of the goods determined in Clause 1 of this Article, the Committee shall organize sales to organizations or individuals who wish to purchase.

The sale of goods must be recorded in a Sales Record. The main contents of the Sales Record include: basis for sale; time and location of sale; seller; name, type, quantity, condition of goods at the time of sale; unit price, total payment; buyer and other related contents.

c) For auctioned goods: The starting price for organizing the auction shall be determined by the Disposal Board in accordance with the provisions of point c, Clause 1 of this Article. The procedures and formalities for auctioning goods stored in bonded warehouses shall be carried out in accordance with the laws on asset auctions. The Disposal Board may directly organize the auction or hire professional auction organizations (Asset Auction Service Centers or asset auction enterprises) to conduct the auction of goods stored in bonded warehouses.

d) The direct selling price to buyers and the winning bid price specified in points b and c of this clause include all types of taxes that buyers must pay in accordance with the law.

4. When selling goods stored in bonded warehouses as stipulated in points b and c of Clause 3 of this Article, the Disposal Board shall be responsible for:

a) Deducting from the proceeds of the sale of goods to pay the tax amounts as prescribed by law. The tax rate shall be applied according to the regulations at the time the buyer registers the Customs Declaration with the Customs Authority. The amount of tax payable shall be determined based on the actual selling price of the goods stored in bonded warehouses to the buyer. The method of calculating tax, the type of tax applied (value-added tax, special consumption tax, import tax, etc.) shall be implemented in accordance with the laws on taxation.

b) Guiding the buyer to complete the procedures for transferring goods from bonded warehouses to domestic areas and providing a set of documents for the buyer to complete customs import procedures (prepare the import declaration), including:

- Sales invoice (in the case of direct sales) or Asset Auction Record (in the case of auction): original;

- Purchase and Sale Contract for goods stored in bonded warehouses signed between the Disposal Board and the buyer: original;

- Sales Invoice: original;

- Warehouse Exit Slip: original;

- Confirmation document issued by the Disposal Board certifying the completion of tax obligations: original;

- Bonded Warehouse Goods Import and Export Declaration: copy;

- Bill of Lading: copy.

Copies must be certified and stamped by the Disposal Board.

Chapter III

FINANCIAL MANAGEMENT FOR THE DISPOSAL OF GOODS

STORED IN BONDED WAREHOUSES

Article 7. Management of proceeds from the sale of goods stored in bonded warehouses

All proceeds from the sale of goods stored in bonded warehouses shall be deposited into a temporary account held by the Provincial or Central City Customs Department (where the bonded warehouse is located) opened at the State Treasury.

Article 8. Contents of expenditures related to the disposal of goods stored in bonded warehouses

1. Payment of export and import duties, special consumption tax, value-added tax, and other taxes as prescribed by law (if applicable).

2. Expenditures for services related to the disposal of goods stored in bonded warehouses, including: fees for quality inspection, advertising information, printing of auction documentation materials, auction fees (in cases where professional auction organizations are hired to conduct the auction).

3. Bonded warehouse service fees (if applicable).

4. Allowances for members of the Disposal Board during the process of disposing of goods stored in bonded warehouses (inventory, classification, inspection, valuation, formulation of disposal plans, organization of disposal activities) up to a maximum of 70,000 VND/day/person. The payment day is the actual number of days the members perform their tasks for the Disposal Board.

Article 9. Payment

1. The Customs Department shall base on the reasonableness and validity of the expenses related to the handling of goods stored in bonded warehouses proposed by the Handling Board, control relevant files and certificates, and request the State Treasury to make payments accordingly. The payment shall be made in sequential priority order from Clause 1 to Clause 4 of Article 8 of this Circular, and shall be responsible for its decision.

At the end of the fiscal year, the amount of revenue obtained from selling goods stored in bonded warehouses on the temporary account opened at the State Treasury by the Customs Department (where there is a bonded warehouse) as stipulated in Clause 1 of Article 7 of this Circular, after deducting the expenses specified in Article 8 of this Circular, shall be deposited into the state budget in accordance with the laws on分级处理财政管理权限。

In cases where the revenue from selling goods stored in bonded warehouses from one handling process is insufficient to cover all expenses, the payment shall be made in sequential priority order from Clause 1 to Clause 4 as specified in Article 8 of this Circular.

In cases where the revenue from selling goods stored in bonded warehouses, after paying taxes as prescribed by law (if applicable), is insufficient to cover the expenses specified in Clause 2 of Article 8 of this Circular, the Handling Board shall report to the Customs Department to decide on the use of the remaining funds in the temporary account to cover the expenses specified in Clause 2 of Article 8 of this Circular; if the temporary account has no remaining funds, the Customs Department shall arrange within the allocated budget to cover the shortfall.

2. For goods stored in bonded warehouses that must be destroyed, the bonded warehouse owner shall advance funds to carry out the destruction. After completing the destruction, the bonded warehouse owner shall be responsible for notifying the consignor to refund the bonded warehouse owner all costs related to organizing the destruction; in cases where the consignor abandons, refuses, or fails to pay, the bonded warehouse owner may record the advanced funds that cannot be recovered as costs of the bonded warehouse owner.

Chapter IV

IMPLEMENTATION

Article 10. Provisions on implementation

1. This Circular takes effect from January 20, 2011.

2. Repeal Circular No. 36/2003/TT-BTC dated April 17, 2003 of the Ministry of Finance guiding the handling of goods stored in bonded warehouses.

3. During the implementation of this Circular, if any difficulties arise, it is requested that agencies, organizations, and units report to the Ministry of Finance for coordination in resolving them./.