Circular No. 21/2011/TT-BCT stipulates the management of temporary importation for re-export of frozen food products.

CIRCULAR

Regulations on managing the business of temporarily importing and re-exporting frozen food products

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Pursuant to Decree No. 189/2007/ND-CP dated December 27, 2007, issued by the Government, detailing the functions, tasks, powers, and organizational structure of the Ministry of Industry and Trade;

Based on Decree No. 12/2006/NĐ-CP dated January 23, 2006 of the Government detailing the implementation of the Law on Trade regarding international goods trading activities and agency buying, selling, processing, and transit of goods with foreign countries;

Implementing the guidance of the Prime Minister in Circular No. 1152/TTg-KTTH dated July 7, 2010 on strengthening the management of imported frozen products and Circular No. 1217/VPCP-KTTH dated March 1, 2011 on managing the business of temporarily importing and re-exporting frozen goods;

The Minister of Industry and Trade stipulates the management of the business of temporarily importing and re-exporting frozen food products as follows:

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

1. This Circular regulates the management of the business of temporarily importing and re-exporting frozen food products that are re-exported through border provinces (hereinafter referred to as the business of temporarily importing and re-exporting).

2. The business of transshipment of frozen food products shall not be carried out through land border gates.

Frozen food products regulated in this Circular include frozen items under Chapters 02, 03, and 16 in the List of Export and Import Commodities of Vietnam issued together with Decision No. 107/2007/QĐ-BTC dated December 25, 2007 of the Ministry of Finance, except for animal offal and poultry offal which are subject to the regulations set forth in Circular No. 33/2010/TT-BCT dated September 11, 2010 of the Ministry of Industry and Trade on the business of temporarily importing and re-exporting, transshipment of frozen and non-frozen animal offal and poultry offal.

Article 2. Applicability

1. This Circular applies to Vietnamese traders (hereinafter referred to as traders) engaged in the business of temporarily importing and re-exporting frozen food products that are re-exported through border provinces; agencies and organizations responsible for managing, confirming, inspecting, and supervising such business activities, and related agencies, organizations, and individuals.

2. Foreign-invested traders shall comply with commitments regarding Vietnam's accession to the World Trade Organization (WTO).

Chapter II

REGULATIONS ON THE BUSINESS OF TEMPORARILY IMPORTING AND RE-EXPORTING FROZEN FOOD PRODUCTS

Article 3. Provisions on warehouses and yards serving the business of temporarily importing and re-exporting frozen food products

Warehouses and yards must have a minimum capacity of 100 (one hundred) 40-foot refrigerated containers and a minimum area of 1,500 square meters. Warehouses and yards must be separated from the outside by solid fences.

Warehouses and yards must have sufficient power supply (including grid electricity and backup generators with equivalent capacity) and specialized equipment necessary to operate refrigerated containers according to the capacity specified in Clause 1 of this Article.

Warehouses and yards specified in Clauses 1 and 2 of this Article must either be owned by the trader or leased by the trader for a minimum term of three years. Warehouses and yards must be located within the planning area or designated zone of the provincial People's Committee where the re-export of frozen food products takes place. Such planning and designated zones need to be discussed and agreed upon with the Ministry of Industry and Trade.

For provinces without existing re-export activities of frozen food products, when new activities arise and there is a need to plan warehouse and yard areas for traders to engage in the business of temporarily importing and re-exporting, the provincial People's Committee must discuss with the Ministry of Industry and Trade before planning.

Article 4. Provisions on Deposit for Precautionary Purposes to Ensure Sanitation, Environmental Protection, and Excess Inventory Disposal

Merchants engaged in temporary importation for re-export of frozen food must deposit a sum of money for precautionary purposes to ensure sanitation, environmental protection, and disposal of excess inventory that cannot be re-exported (hereinafter referred to as "deposit for precautionary purposes") in accordance with the following provisions:

1. The merchant must maintain a deposit amount of VND 2 billion (two billion Vietnamese dong) at the State Treasury of the province where the merchant's warehouse or storage area is located.

2. The merchant shall enjoy interest on the deposit amount according to the regulations of the State Treasury.

3. The merchant is responsible for paying all costs to process, clean the environment, and destroy temporarily imported goods for re-export that exceed the prescribed time limit. In case the merchant fails to pay the costs as required by the competent authority, the merchant’s deposit for precautionary purposes will be used as follows:

a) To pay all costs to process and clean the environment if the merchant's goods cause environmental pollution during storage and temporary importation for re-export in Vietnam;

b) To pay all costs to destroy the merchant's temporarily imported goods for re-export that exceed the prescribed time limit.

4. After settling the costs as stipulated in Clause 3 of this Article (if applicable), the merchant will be refunded the entire deposit amount or a portion thereof in the following cases:

a) Not being granted a temporary importation for re-export code number;

b) Ceasing operations related to temporary importation for re-export;

c) Being revoked of the previously granted temporary importation for re-export code number.

Article 5. Documents and Procedures for Issuing Temporary Importation for Re-export Code Numbers

Upon meeting the conditions specified in Articles 3 and 4 of this Circular, merchants engaged in temporary importation for re-export of frozen food shall be considered for issuance of a temporary importation for re-export code number by the Ministry of Industry and Trade (hereinafter referred to as "temporary importation for re-export code number"). The documents and procedures are as follows:

1. The merchant shall submit one set of application documents for the temporary importation for re-export code number via postal service to the Department of Import-Export, Ministry of Industry and Trade (No. 54 Hai Ba Trung Street, Hoan Kiem District, Hanoi City), including:

- Application form for the temporary importation for re-export code number for frozen food (according to Form No. 01): one original copy;

- Business registration certificate and tax code registration certificate (or business registration certificate): one certified copy stamped with the seal of the merchant confirming it is a true copy;

- Confirmation letter regarding the deposit as stipulated in Clause 1 of Article 4 of this Circular issued by the State Treasury of the province where the merchant's warehouse or storage area is located: one original copy.

If the merchant does not re-export frozen food through northern border provinces, they are not required to obtain a temporary importation for re-export code number from the Ministry of Industry and Trade; the temporary importation for re-export activities shall be conducted in accordance with current regulations.

2. Within seven working days from the date of receipt of complete and compliant documents from the merchant as stipulated in Clause 1 of this Article, the Ministry of Industry and Trade will conduct inspections or authorize the Provincial Department of Industry and Trade to inspect and confirm the warehouse or storage area conditions of the merchant.

3. Within seven working days from the date the Ministry of Industry and Trade receives inspection results, the Ministry of Industry and Trade will consider issuing a temporary importation for re-export code number to the merchant. In case of non-issuance of the temporary importation for re-export code number, the Ministry of Industry and Trade will respond in writing and specify the reasons.

4. The certificate of the temporary importation for re-export code number of the merchant (according to Form No. 02) has a validity period of three years from the date of issuance.

5. The warehouse or storage area declared by the merchant for the purpose of applying for a temporary importation for re-export code number shall not be leased entirely or partially to other merchants for use in applying for a temporary importation for re-export code number.

Article 6. Revocation, Reissuance, and Adjustment of Temporary Importation for Re-export Code Numbers

1. A trader shall have their temporary importation for re-export code number revoked in the following cases:

a) Misrepresentation in declaration as prescribed in Article 3 and Article 4 of this Circular.

b) Within thirty days from the date that competent authorities request payment of costs as stipulated in Clause 3, Article 4 of this Circular, if the trader fails to fulfill the obligation to pay such costs.

c) Insufficient deposit amount as prescribed in Article 4 of this Circular.

d) Violation in leasing the entire warehouse or part thereof as prescribed in Clause 5, Article 5 of this Circular.

đ) Violation of the regulatory mechanism as prescribed in Point b, Clause 4, Article 10 of this Circular.

A trader whose temporary importation for re-export code number has been revoked shall not be permitted to apply for a new temporary importation for re-export code number within one year from the revocation date. During this period, the trader may only use the registered warehouse for business purposes and not for applying for a temporary importation for re-export code number.

2. In case the Certificate of Temporary Importation for Re-export is lost, misplaced, or damaged, the trader shall submit the application dossier for a temporary importation for re-export code number as prescribed in Article 5 of this Circular and a statement requesting issuance of a new Certificate of Temporary Importation for Re-export to the Ministry of Industry and Trade.

3. In case the Certificate of Temporary Importation for Re-export expires, the trader shall submit the application dossier for a temporary importation for re-export code number as prescribed in Article 5 of this Circular, the original Certificate of Temporary Importation for Re-export issued previously, and a request for issuance of a new temporary importation for re-export code number to the Ministry of Industry and Trade.

4. In case there is a need to adjust the contents of the issued Certificate of Temporary Importation for Re-export, the trader shall submit the application dossier for a temporary importation for re-export code number as prescribed in Article 5 of this Circular, the original Certificate of Temporary Importation for Re-export issued previously, and a statement requesting modification of the Certificate of Temporary Importation for Re-export to the Ministry of Industry and Trade.

In the cases stipulated in Clauses 2, 3, and 4 of this Article, the Certificate of Temporary Importation for Re-export shall be reissued after seven working days from the date the Ministry of Industry and Trade receives the complete and compliant dossier from the trader.

Article 7. Re-export Locations and Ports

A trader with a temporary importation for re-export code number is permitted to process customs clearance and re-export frozen food through international border gates, main border gates, and border gates and points of entry in Border Economic Zones established by the Prime Minister's approval and equipped with specialized inspection agencies as required.

Article 8. Storage in Bonded Warehouses

A trader with a newly issued temporary importation for re-export code number may store frozen food in bonded warehouses in border provinces.

Article 9. Payment

Payment for temporarily imported goods for re-export must comply with foreign exchange management regulations and guidelines issued by the State Bank of Vietnam.

Chapter III

IMPLEMENTATION

Article 10. Regulatory Mechanism

1. To prevent congestion at ports and border gates and ensure food safety requirements, traders must comply with the requests of the Ministry of Industry and Trade and competent authorities to reduce the pace of temporary imports or suspend bringing goods back to Vietnam to regulate the volume of temporarily imported goods at Vietnamese ports and border gates.

2. Traders must strictly implement the requirement to clear goods from ports and border gates to avoid congestion as requested by competent authorities. If a competent authority requests a trader to suspend bringing goods back to Vietnam to regulate the volume of temporarily imported goods at ports and border gates, but the trader continues to bring goods back to Vietnam, the customs authority will not process temporary import procedures and require the trader to re-export the goods back to the exporting country.

3. After forty-five days from the date of temporary importation without successful re-export, the customs authority will not process temporary import procedures for the next batch of frozen food from that trader and notify the Ministry of Industry and Trade to implement regulation as stipulated in Clauses 1 and 2 of this Article.

4. Handling Violations of the Regulatory Mechanism:

a) A trader who does not comply with the regulatory mechanism provisions in Clauses 1, 2, and 3 of this Article or does not comply with the order to clear goods from ports and border gates as requested by competent authorities will be suspended from conducting temporary importation for re-export of frozen food for six months.

b) After the suspension period for conducting temporary importation for re-export of frozen food has expired, if the trader continues to commit violations, the trader will have their temporary importation for re-export code number revoked.

Article 11. Responsibilities of agencies and organizations

In addition to the responsibilities stipulated in the Articles of this Circular and according to their functions and tasks, agencies and organizations shall focus on implementing the following responsibilities:

1. The Ministry of Industry and Trade shall be responsible for:

a) Issuing temporary import-re-export codes for traders in accordance with the provisions of this Circular.

b) Organizing inspections and confirming warehouse conditions or authorizing the Department of Industry and Trade to organize and conduct inspections and confirmations in accordance with the provisions of Article 3 of this Circular.

2. Provincial People's Committees, in accordance with Clause 3, Article 3 of this Circular, shall be responsible for:

a) Developing plans for areas of warehouses for frozen food temporary import-re-export that meet the requirements for warehouses mentioned above, without affecting the environment and contributing to preventing trade fraud.

Before planning the area of warehouses, the provincial People's Committee shall seek opinions from the Ministry of Industry and Trade and the Ministry of National Defense regarding the needs and assessment of the development of temporary import-re-export activities in the locality to avoid excessive investment and waste. In cases where the warehouse area has been approved before the effective date of this Circular, it shall be implemented according to the approved plan and designated area.

b) Directing provincial functional agencies to monitor and inspect the temporary import and re-export of frozen food by traders to prevent trade fraud, smuggling, and protect the environment; promptly reporting to the Ministry of Industry and Trade on the situation of receiving and delivering frozen food for temporary import-re-export and proposing management measures to achieve goals and avoid congestion at ports and border gates.

c) Managing and using traders' advance deposit funds in accordance with the provisions of Article 4 of this Circular.

3. Traders engaged in temporary import-re-export of frozen food shall be responsible for:

Strictly complying with the provisions set out in this Circular and other regulations on temporary import-re-export and transshipment of goods.

b) Paying all costs for processing, cleaning the environment, and destroying excess goods beyond the specified period upon the request of competent authorities.

c) In case of congestion, strictly implementing the clearance of goods from the import port to their own warehouse as required by competent authorities.

d) At the request of the Customs authority or other competent authority, traders must re-export goods to a third country or return them to the exporting country if the goods have exceeded the retention period in Vietnam.

đ) Collecting and treating waste and wastewater to prevent diseases and ensure environmental hygiene in their own warehouses.

e) Reporting periodically before the 25th of each month (by post and email) to the Ministry of Industry and Trade, the People's Committee, and the Department of Industry and Trade of provinces where there are warehouses and goods passing through regarding the implementation of temporary import and re-export of frozen food (according to Form 03 attached).

Chapter IV

EFFECTIVE DATE

Article 12. This Circular takes effect from July 3, 2011.

Article 13. During the implementation of this Circular, if any difficulties arise, agencies, organizations, and traders engaged in temporary import-re-export of frozen food shall promptly reflect them in writing to the Ministry of Industry and Trade for resolution./.