Decision No. 20/2018/QD-TTg provides for the implementation of the destruction of confiscated counterfeit or substandard foreign cigarettes and pilot auctioning of confiscated foreign cigarettes that meet quality standards for export abroad.

Pursuant to …;

REGULATIONS ON THE IMPLEMENTATION OF THE DESTRUCTION OF ILLEGAL IMPORTED TOBACCO PRODUCTS SEIZED AS FAKE OR SUBSTANDARD TOBACCO PRODUCTS AND THE TRIAL AUCTION SALE OF QUALITY ILLEGAL IMPORTED TOBACCO PRODUCTS FOR EXPORT ABROAD

Pursuant to the Law on Government Organization dated June 19, 2015;

Pursuant to the Customs Law dated June 23, 2014;

Pursuant to the Law on Prevention and Control of Harmful Effects of Tobacco Products dated June 18, 2012;

Based on the Administrative Violation Handling Law dated June 20, 2012;

Pursuant to the Auction Law dated November 17, 2016;

Pursuant to the Government Decree No. 08/2015/NĐ-CP dated January 21, 2015 detailing and guiding the implementation of the Law on Customs regarding customs procedures, inspection, supervision, and control;

Pursuant to Decree No. 67/2013/NĐ-CP dated June 27, 2013, issued by the Government detailing certain provisions and measures for the implementation of the Law on Prevention and Control of Harmful Effects of Tobacco regarding tobacco trade;

Pursuant to the Government Decree No. 106/2017/NĐ-CP dated September 14, 2017 amending and supplementing certain articles of the Government Decree No. 67/2013/NĐ-CP dated June 27, 2013 detailing and guiding the implementation of certain provisions and measures under the Law on Prevention and Control of Harmful Effects of Tobacco Products concerning tobacco business;

At the proposal of the Minister of Finance;

The Prime Minister issues this Decision to regulate the implementation of the destruction of illegal imported tobacco products seized as fake or substandard tobacco products and the trial auction sale of quality illegal imported tobacco products for export abroad.

Article 1. Scope of Regulation

This Decision stipulates:

1. The destruction of illegal imported tobacco products seized as fake or substandard tobacco products.

2. The trial auction sale for export abroad of illegal imported tobacco products seized that are of assured quality.

Article 2. Applicability

1. Enterprises meeting the conditions to participate in the auction sale for export as prescribed in Article 4 of this Decision.

2. State management agencies with authority related to the management of the destruction and trial auction sale of tobacco products.

Article 3. Principles of Implementation

1. The determination of illegal imported tobacco products seized as fake or substandard tobacco products, or tobacco products of assured quality, shall be carried out by the competent authority issuing the seizure decision in coordination with specialized agencies responsible for quality assessment.

2. Illegal imported tobacco products seized as fake or substandard tobacco products shall be destroyed according to the provisions of the law.

3. The mechanism for mobilizing, managing, and using financial resources to support anti-smuggling and anti-fake tobacco product activities shall be implemented in accordance with the guidance of the Ministry of Finance.

Quality-assured illegal imported tobacco products seized shall be sold through auction for export abroad:

a) The auction of quality-assured illegal imported tobacco products seized shall be conducted in accordance with the laws on asset auctions.

b) The export of quality-assured illegal imported tobacco products seized must be carried out through international seaports, inland waterways, and airports; it is not allowed to export through land border gates or to countries sharing land borders. In cases where goods transit through countries sharing land borders, it shall be carried out in accordance with the Transit Goods Agreement signed with those countries.

c) Export procedures for quality-assured illegal imported tobacco products seized after winning the auction shall be carried out in accordance with the laws on customs.

5. The proceeds from the auction sale of quality-assured illegal imported tobacco products seized shall be deposited into a temporary account opened at the State Treasury and used to serve the supervision, management, and prevention of tobacco smuggling activities.

Article 4. Conditions for participation in auction

Enterprises participating in auctions for export must comply with the provisions of the law on asset auctions.

Article 5. Responsibilities of the winning enterprise in the auction

1. Within ninety days from the date of winning the auction, the winning enterprise must complete the procedures to export goods out of the territory of Vietnam in accordance with the regulations. If the procedures have not been completed within the aforementioned period, the enterprise shall be responsible for implementing the destruction under the supervision of the authority issuing the confiscation decision and other relevant agencies (if any) in accordance with the law.

2. When completing customs export procedures, in addition to the dossier required by the customs law, the winning enterprise must submit one copy of the Sales Contract of the auctioned assets to the customs authority.

Article 6. Implementation organization

1. Entrust the National Steering Committee for Combating Smuggling, Commercial Fraud, and Counterfeit Goods:

a) To take the lead and coordinate with provincial and municipal people's committees and relevant ministries and sectors to inspect and monitor the implementation of this Decision.

b) To organize the summary and evaluation of the results of implementing this Decision at the end of the trial period.

2. Entrust the Ministry of Finance:

To guide the management and use of the proceeds from the sale of confiscated foreign cigarettes that are still in quality condition for export to serve the work of monitoring, managing, and preventing smuggling of cigarettes. During the time there is no guidance, the proceeds from the auction of confiscated foreign cigarettes shall be deposited into a temporary account at the State Treasury in accordance with the regulations.

3. Entrust the Ministry of Industry and Trade, the Ministry of Public Security, and the Ministry of Defense:

To direct the competent forces to notify the local customs authorities of the cases where enterprises win the auction of confiscated foreign cigarettes for export, to follow up, complete customs procedures, and supervise the export process.

4. Entrust the provincial and municipal people's committees:

a) To direct the specialized forces at the local level to supervise, manage, compile statistics, store, and preserve consignments of confiscated foreign cigarettes from the time of seizure until the completion of the auction procedures.

b) To direct the anti-smuggling, commercial fraud, and counterfeit goods forces at the local level to organize the implementation of the destruction of confiscated foreign cigarettes in accordance with the law.

c) To organize inspections and monitoring of the auction of confiscated foreign cigarettes to ensure their quality for export in accordance with this Decision; promptly report to the Prime Minister and relevant ministries about any difficulties or obstacles during the implementation process.

5. During the implementation process, if any issues arise, relevant ministries and sectors shall provide guidance based on their functions and responsibilities to ensure uniform implementation.

Article 7. Effective Date

1. This Decision takes effect from June 15, 2018 and remains effective until June 15, 2020.

2. During the validity period of this Decision, the implementation of Decision No. 2371/QĐ-TTg dated December 26, 2014 of the Government Chairman on the destruction of confiscated foreign cigarettes shall be temporarily suspended.

Upon expiration of the validity period specified in Clause 1 of this Article, if there is no Decision amending, supplementing, or replacing it, Decision No. 2371/QĐ-TTg dated December 26, 2014 of the Government Chairman on the implementation of the destruction of confiscated foreign cigarettes shall be implemented.

3. The Head of the National Steering Committee for Combating Smuggling, Commercial Fraud, and Counterfeit Goods, Ministers, Heads of ministerial-level agencies, Heads of government-affiliated agencies, Chairmen of provincial and municipal people's committees directly under the central government, and related agencies and units shall be responsible for enforcing this Decision./.

PRIME MINISTER

(signed)

NGUYỄN XUÂN PHÚC