Circular No. 21/1998/TT-BTM guiding the implementation of the Regulations on duty-free shops

CIRCULAR

Guidelines for Implementing the Regulations on Duty-Free Shops

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Pursuant to Article 2 of Decision No. 205/1998/QĐ-TTg dated October 19, 1998, issued by the Prime Minister, regarding the Regulations on Duty-Free Shops;

The Ministry of Trade guides the registration for duty-free goods trading and some related issues concerning goods sold at duty-free shops as follows:

I. CONDITIONS AND PROCEDURES FOR REGISTRATION OF DUTY-FREE GOODS TRADING:

1. Enterprises established in accordance with Vietnamese law, if meeting all of the following conditions, will be considered by the Ministry of Trade for issuance of a Certificate of Eligibility for Trading in Duty-Free Goods:

1.1. Having a main office and conducting primary business activities in a centrally governed city or province with an international border gate.

1.2. Having registered for import-export enterprise code at the local Customs Office.

1.3. Possessing working capital in Vietnamese currency not less than 20% of the expected annual turnover of duty-free goods.

1.4. Having at least one enterprise management officer and one store manager responsible for duty-free stores with qualifications in managing duty-free goods trading operations.

1.5. Having a store and warehouse convenient for sales and Customs inspection and supervision.

2. Documents submitted to the Ministry of Trade to apply for a Certificate of Eligibility for Trading in Duty-Free Goods include:

2.1. An application form for a Certificate of Eligibility for Trading in Duty-Free Goods (attached to this Circular), confirmed and recommended by the People's Committee of the centrally governed city or province or the competent ministry or sector.

2.2. A certified copy of the Business Registration Certificate and the Import-Export Enterprise Code Registration Certificate.

2.3. A document from the General Department of Customs confirming that the location of the duty-free store and warehouse meets the requirements for Customs inspection and supervision.

3. Within fifteen days from the date of receipt of a complete and valid set of documents, the Ministry of Trade will issue a Certificate of Eligibility for Trading in Duty-Free Goods to the enterprise or notify in writing the reasons for non-issuance.

4. Applications for Certificates of Eligibility for Trading in Duty-Free Goods for foreign-invested stores shall be carried out in accordance with the Law on Foreign Investment in Vietnam and guidelines issued by the Ministry of Planning and Investment.

5. The establishment of duty-free stores serving incoming passengers, duty-free stores within cities serving outbound passengers, and duty-free stores serving diplomatic personnel shall be decided by the Prime Minister based on proposals from the People's Committee of the centrally governed city or province or relevant ministries or sectors.

II. GOODS SOLD AT DUTY-FREE STORES:

1. It is prohibited to sell at duty-free stores goods banned for export or import by the State (except cigars and cigarettes).

2. The following goods may only be sold at duty-free stores upon obtaining permission from the Ministry of Trade:

2.1. Cigars and cigarettes.

2.2. Goods subject to conditional export or import.

3. Goods not covered under points 2.1 and 2.2 above, if they comply with the list of goods registered for duty-free sales as specified in the Certificate of Eligibility for Trading in Duty-Free Goods, may be sold at duty-free stores according to the guidance of the General Department of Customs.

4. For duty-free stores with foreign investment: the export and import of goods for business purposes at duty-free stores shall be carried out according to permits issued by the Ministry of Trade.

5. Documents for applying for export and import permits include:

5.1. A letter from the enterprise requesting the Ministry of Trade to issue export and import permits for goods to serve duty-free sales, specifying the name, quantity, and value of the goods.

5.2. Confirmation from the specialized management ministry (if the goods fall under specialized management).

5.3. A report on inventory of goods with confirmation from the local Customs Office (according to the attached model in this Circular).

III. REGARDING REEXPORTATION, DOMESTIC CONSUMPTION, AND DISPOSAL OF GOODS:

1. Goods permitted for import under the Ministry of Trade's documents to be sold at duty-free stores but remain unsold and difficult to sell, except for cigarettes and cigars, must obtain permission from the Ministry of Trade for reexportation or domestic consumption.

2. Documents for applying for permission for reexportation or domestic consumption include:

2.1. A letter of request from the enterprise.

2.2. The customs declaration for the imported consignment concerned.

2.3. A report on the surplus stock of goods with confirmation from the local Customs Office.

3. For damaged, deteriorated, or expired goods that cannot be sold or are not allowed to be sold for consumption, enterprises shall prepare a record of the condition of the goods with confirmation from the Customs Authority and organize their disposal according to the scrap material disposal procedures under Customs supervision and submit a Record to the Ministry of Trade, Ministry of Finance, and General Department of Customs instead of a report.

IV. IMPLEMENTATION PROVISIONS:

1. The organization of duty-free goods trading activities: the target customers, sales procedures, purchase quotas, import procedures, reexportation procedures, financial and accounting systems, etc., shall be implemented in accordance with the Regulations on Duty-Free Shops issued together with Decision No. 205/1998/QĐ-TTg dated October 19, 1998, by the Prime Minister, and the implementation guidelines issued by the Ministry of Finance, Ministry of Planning and Investment, and General Department of Customs.

2. Within ninety days from the date of issuance of this Circular, enterprises already permitted to engage in duty-free goods trading shall proceed to apply for a Certificate of Eligibility for Trading in Duty-Free Goods to replace previous permits issued by the Ministry of Trade. The documents shall be submitted to the Ministry of Trade as stipulated in point 2.1 and 2.2 of Part I of this Circular, along with a report on the enterprise's duty-free goods trading results for the years 1996, 1997, and 1998.

3. This Circular takes effect fifteen days after its issuance./.