Decision No. 212/1998/QĐ-TTg on the issuance of the Regulation on bonded warehouses

Article 1. The bonded warehouse regulation is hereby issued together with this Decision.

Article 2. This Decision replaces Decision No. 104/TTg dated March 16, 1994 of the Government Chairman regarding the issuance of the bonded warehouse regulation.

Article 3. The General Director of the General Department of Customs shall be responsible for guiding the implementation of this Decision.

Article 4. This Decision shall take effect fifteen days from the date of signature. The Minister, the Head of the agency equivalent to a Ministry, the Head of the agency under the Government, and the Chairman of the People's Committee of provinces and centrally governed cities shall be responsible for implementing this Decision./.

Article 2. The bonded warehouse and all goods, means of transport entering, exiting, or being stored and preserved in the bonded warehouse must be subject to inspection, supervision, and management by the Customs authority.

Article 3. The terms in this Regulation are understood as follows:

1. "Warehouse Owner": Is a business entity permitted to operate a bonded warehouse.

2. "Consignor": Is the person (legal entity, natural person) who has goods stored in the bonded warehouse.

3. "Legal Representative of the Consignor": Is the person authorized by the consignor in accordance with the law, including foreign individuals. The consignor shall bear legal responsibility for decisions made by the authorized legal representative.

4. "Customs Bonded Warehouse": Is the Customs unit directly responsible for handling customs procedures, inspecting, supervising goods entering, exiting, being stored, preserved, and providing services in the bonded warehouse.

Article 4. Bonded warehouses may be established in the following areas:

1. Provinces and cities that are key points of trade with foreign countries, having large volumes of import and export goods, and convenient conditions for the transportation of import and export goods.

The Government Chairman decides on specific cases where provinces and centrally governed cities are permitted to establish bonded warehouses based on proposals from provincial and centrally governed city People's Committees and the General Department of Customs.

2. Industrial zones, high-tech zones, export processing zones, and special economic zones (hereinafter referred to collectively as industrial zones) that have been approved for establishment by competent authorities.

Article 5. Establishment of a bonded warehouse.

1. Businesses located in the areas specified in Clause 1 of Article 4, when applying to establish a bonded warehouse, must meet the following conditions:

a. State-owned enterprises in Vietnam must have a staff with expertise in logistics and international trade operations, including knowledge of international trade transactions.

b. Legal documents concerning the right to use necessary warehouse and yard areas in compliance with the law. The warehouse and yard must be separated from surrounding areas by a secure fence system equipped with technical facilities ensuring safety for people, means of transport, storage, and preservation of goods, facilitating Customs inspections and supervision.

c. Adherence to policies and laws; clear relationships in business, finance, and credit.

d. Payment of the full fee for establishing a bonded warehouse as prescribed.

e. Documents for applying to establish a bonded warehouse include:

An application form for establishing a bonded warehouse as prescribed by the General Department of Customs.

A proposal letter from the main ministry or provincial and centrally governed city People's Committee sent to the Government Chairman and the General Department of Customs.

Business registration certificate or establishment decision. (Certified copy).

Design drawings of the warehouse and yard area showing clearly the boundary separating it from the outside, layout of storage areas, internal transport routes, security and fire protection systems, warehouse office, and the Customs unit's workplace.

A detailed report (in writing) on the operation of the warehouse.

Bank account statements.

Legal documents concerning the right to use the warehouse and yard.

2. Businesses applying to establish a bonded warehouse in industrial zones must meet the following conditions:

a. Must be a business with warehousing and logistics functions, handling import and export goods, and supplying imported materials to industrial zones.

b. The bonded warehouse must be established within the geographical boundaries of the industrial zone.

c. Adherence to policies and laws; clear relationships in business, finance, and credit.

d. Payment of the full fee for establishing a bonded warehouse as prescribed.

e. Documents for applying to establish a bonded warehouse:

An application form for establishing a bonded warehouse as prescribed by the General Department of Customs.

Investment approval decision by the competent authority or investment permit, business registration certificate. (Certified copy).

A proposal letter from the provincial and centrally governed city Industrial Zone Management Board sent to the Government Chairman and the General Department of Customs. Each industrial zone may have no more than one business permitted to establish a bonded warehouse.

Design drawings of the warehouse area within the overall industrial zone, clearly showing: The boundary separating it from the rest of the industrial zone, positions of storage areas, internal transport routes, security and fire protection systems, warehouse office, and the Customs unit's workplace.

A detailed report (in writing) on the operation of the bonded warehouse.

Land lease agreement or warehouse and yard lease agreement in the industrial zone.

Article 6. Procedures for issuing a business license for a bonded warehouse.

1. The application for establishing an Export Processing Zone warehouse and the dossier shall be submitted to the Customs Office of the province or city. Within fifteen days from the date of receipt of the application and dossier of the enterprise, the Provincial/City Customs Office shall examine the dossier, conduct on-site surveys of the warehouse and storage area, prepare a report, and make recommendations to the General Department of Customs. Within fifteen days from the date of receipt of the report from the Provincial/City Customs Office and the dossier of the enterprise, the General Department of Customs shall review and submit to the Prime Minister. When the Prime Minister approves, within fifteen days, the General Department of Customs must complete the procedures for issuing the permit to establish the Export Processing Zone warehouse.

2. Annually and at any time deemed necessary, the General Department of Customs shall inspect the operation of each Export Processing Zone warehouse to report to the Prime Minister on the implementation of laws and compliance with the regulations of the Export Processing Zone warehouses by enterprises holding permits.

In cases where the owner of the Export Processing Zone warehouse violates policies and laws related to the operation of the warehouse, and if such violations result in administrative penalties three times within one year for breaches of the Export Processing Zone regulations with fines of twenty million dong or more, or if criminal responsibility is pursued, the General Department of Customs shall issue a decision to revoke the permit.

3. If, six months after receiving the permit to establish the Export Processing Zone warehouse, the enterprise does not commence operations without a valid reason, the General Department of Customs shall issue a decision to revoke the permit.

4. Based on business needs, the enterprise's recommendations, and in accordance with the geographical location and operational conditions of the Export Processing Zone warehouse, the General Department of Customs shall decide whether to allow the enterprise to expand, reduce, relocate the warehouse, or temporarily use nearby warehouses and storage areas within a specified period to store goods intended for the Export Processing Zone warehouse, but it must ensure that all conditions are met to strictly manage the goods according to the provisions of this regulation.

Article 7. After obtaining the consent or authorization of the consignor, the owner of the Export Processing Zone warehouse may perform the following services within the warehouse:

1. Transporting goods from the border gate to the Export Processing Zone warehouse and from the Export Processing Zone warehouse to the border gate;

2. Acting as an intermediary for the sale of goods stored in the Export Processing Zone warehouse;

3. Acting on behalf of the consignor to handle customs formalities;

4. Acting as an intermediary for inspection, insurance;

5. Reconditioning, reinforcing packaging, repackaging, maintenance, repair of goods; these services must be carried out under the supervision of customs officials within the Export Processing Zone warehouse.

6. Transporting goods from one Export Processing Zone warehouse to another.

The General Department of Customs shall provide detailed guidance on the implementation of this provision.

Article 8. In addition to the services listed in Article 7, the owners of Export Processing Zone warehouses located in industrial zones are also permitted to temporarily import goods such as materials and raw materials to supply to production enterprises within those industrial zones. These goods are exempt from import duties until they are officially imported into Vietnam.

The General Department of Customs shall provide detailed guidance on the implementation of this provision.

Article 9. Leasing of Export Processing Zone Warehouses.

1. Entities eligible to lease Export Processing Zone Warehouses:

Foreign enterprises, organizations, and foreign individuals.

Vietnamese enterprises belonging to various economic sectors authorized to engage in import and export activities.

Enterprises with foreign investment.

2. Lease contracts for Export Processing Zone Warehouses:

Lease contracts for Export Processing Zone Warehouses shall be agreed upon between the warehouse owner and the consignor based on mutual requirements, ensuring compliance with Vietnamese policies and laws. The contract must include the following details: type and quantity of goods, quality of goods; lease term, and any services listed in Article 7 if requested by the consignor.

The lease contract for the Export Processing Zone Warehouse must be signed and registered with the customs authority no later than twenty-four hours before the goods arrive at the first Vietnamese port of entry.

3. The lease term for the Export Processing Zone Warehouse is stipulated in the lease contract but shall not exceed one year. The lease term may be extended twice, each time not exceeding six months, and must be notified in writing to the Export Processing Zone Customs Authority before the lease contract expires.

In the event that the lease contract has expired and the consignor has not processed an extension, the goods will be handled as follows:

If within thirty days from the expiration date of the contract, the consignor signs an extension contract, the customs authority will accept the extension contract.

Beyond thirty days, the warehouse owner must notify the consignor once every month. Within three months from the expiration date of the contract, if the consignor signs an extension contract, administrative violations will be processed, and the extension contract will be accepted. If the consignor does not sign an extension contract within three months from the expiration date of the contract, the warehouse owner must notify the consignor and the Export Processing Zone Customs Authority in writing. Fifteen days after the announcement of the notice, if the consignor does not respond, the customs authority will organize liquidation according to current regulations, and the proceeds from the liquidation will be paid to the state budget after deducting storage fees, service charges (if any), and liquidation costs as prescribed by the Ministry of Finance.

During the period of storing goods, if the consignor provides a written notice or both the warehouse owner and the consignor agree in writing to abandon the stored goods, the customs authority will organize liquidation. The proceeds from the liquidation of these goods will be handled as prescribed above.

If the goods are damaged and cannot be used, they may be destroyed in accordance with Clause 4, Article 13 of this Regulation.

Article 10. Goods entering, exiting, and being stored or preserved in Export Processing Zone Warehouses:

1. All types of exported goods that have completed customs formalities, and goods from abroad brought into Vietnam to await transfer to another country or to await importation into Vietnam by entities eligible to lease Export Processing Zone Warehouses as stipulated in Clause 1, Article 9, may be stored in Export Processing Zone Warehouses, except for the following goods:

Counterfeit goods bearing Vietnamese trademarks or origin names.

Goods causing public danger or environmental pollution.

Prohibited export and import goods, except in cases approved by the Prime Minister.

Goods temporarily suspended from import during specific periods may still be allowed to enter and be stored in Export Processing Zone Warehouses for export abroad. Goods temporarily suspended from export are not permitted to enter and be stored in Export Processing Zone Warehouses.

2. Goods stored in Export Processing Zone Warehouses awaiting importation into the domestic market include:

Goods of foreign principals who have not yet entered into a sales contract with a business entity in Vietnam.

Goods imported from abroad by a Vietnamese enterprise but have not yet completed customs procedures for entry into the domestic market.

3. Goods stored and preserved in an outer warehouse must comply with the lease contract for the outer warehouse. Goods entering or leaving the outer warehouse must complete customs procedures and pay customs fees in accordance with the relevant regulations.

4. The transportation of goods from the border gate or from the consolidation point after completing customs procedures (for exported goods being moved into an outer warehouse) to the outer warehouse or from the outer warehouse to the border gate must be subject to supervision and management by Customs. Such transportation can be conducted via sea or land routes through international or national border gates.

In cases where delivery of exported goods passes through other locations, the Chairman of the People's Committee of the border province shall consider and decide on each specific location, but must ensure the principle of maintaining national interests, sovereignty, security, border order, and combating smuggling.

Article 11. Customs procedures for goods entering an outer warehouse:

1. Goods from abroad arriving at the first Vietnamese border gate before being moved into an outer warehouse, the principal or their authorized representative must submit to the Outer Warehouse Customs Office the lease contract for the outer warehouse, declaration forms, and other documents prescribed by the General Department of Customs. The warehousing procedures shall be carried out according to the regulations of the General Department of Customs.

2. Goods from within Vietnam being moved into an outer warehouse include exported goods that have completed customs procedures awaiting export; goods that have exceeded the temporary import period and must be re-exported; goods ordered by competent state authorities to be re-exported.

For goods from within Vietnam being moved into an outer warehouse, the principal must complete all customs procedures as required for an export shipment, including payment of taxes (if applicable) as stipulated by law. The principal or their authorized representative must submit to the Outer Warehouse Customs Office the lease contract for the outer warehouse, declaration forms for exported goods that have completed customs procedures, declaration forms for goods entering the outer warehouse, and other necessary documents prescribed by the General Department of Customs to process the warehousing procedures.

Article 12. Customs procedures for goods exiting an outer warehouse:

1. Exporting goods to another country:

The principal or their authorized representative exporting goods from the warehouse to another country must declare customs and present to the Outer Warehouse Customs Office:

Declaration form for exported goods.

Power of attorney for exporting goods (if not already granted in the warehouse lease contract).

Warehouse exit slip.

The Outer Warehouse Customs Office will compare the declaration documents presented when exiting the warehouse with those submitted during the warehousing procedures and the actual consignment. If they match, the customs clearance procedures will be processed, and the goods will be sealed or escorted to the export border gate. If the quantity of goods under a single export contract is not fully exported, the remaining quantity will be deducted until the total quantity specified in the contract is reached. In case of difficulties in delivering the goods, the storage period at the border gate area cannot exceed 180 days. If there is an outer warehouse at the border gate area, the goods must be sent to the outer warehouse to await export. After 180 days, if the goods have not been fully exported from Vietnam, the principal or their authorized representative must enter into a contract to store the goods permanently in the border outer warehouse or return the goods to the original outer warehouse and process the re-entry procedures.

2. Importing goods into Vietnam:

a. Goods temporarily stored in an outer warehouse from abroad, goods that have exceeded the temporary import period and must be re-exported, if permitted to be imported and consumed in the domestic market of Vietnam, shall be treated as imported goods from abroad and must comply with all current regulations for imported goods. The date of importation is the date when the Customs registers the import declaration form. Goods violating the law and subject to a decision to be compulsorily re-exported to an outer warehouse shall not be allowed to be re-imported.

b. Goods moving between an outer warehouse and an industrial park, export processing zone, or high-tech industrial park and vice versa shall be treated as imported goods from abroad or exported goods to another country, following this Regulation and the Regulations of Industrial Parks, Export Processing Zones, and High-Tech Industrial Parks issued together with Decree No. 36/CP dated April 24, 1997 of the Government.

Article 13. Management of storage and preservation of goods in an outer warehouse.

1. Any movement of goods within the warehouse or from one warehouse to another must be reported to the Outer Warehouse Customs Office. To implement the services provided for in Article 7 of this Regulation, the warehouse owner must notify the Outer Warehouse Customs Office in advance and must be subject to supervision by the Outer Warehouse Customs Office throughout the implementation process.

2. The owner of the outer warehouse must maintain ledgers for entries and exits according to a unified model and record-keeping system prescribed by the General Department of Customs.

3. Annually, the warehouse owner must organize an inventory of goods stored in the outer warehouse under the supervision of the Outer Warehouse Customs Office. Every six months and annually, the owner of the outer warehouse must report to the Outer Warehouse Customs Office on the operation of the outer warehouse.

4. In cases where it is necessary to destroy consignments of damaged, deteriorated, or substandard goods or goods that have exceeded their shelf life during storage, a written agreement must be made between the principal or their authorized representative and the warehouse owner, which must be submitted to the provincial or municipal Customs Office where the outer warehouse is located. The destruction of these consignments must be carried out in accordance with the relevant regulations of the General Department of Customs.

Article 14. Violations of the provisions of this Regulation will be handled according to the Administrative Offense Handling Ordinance or criminal responsibility may be pursued depending on the nature and degree of violation.

Article 15. This Regulation replaces the previous Outer Warehouse Regulation issued together with Decision No. 104/TTg dated March 16, 1994, and becomes effective according to Decision No. 212/1998/QĐ-TTg dated November 2, 1998, of the Prime Minister.

Article 16. The Director of the General Department of Customs is responsible for guiding the implementation of this Regulation, and the Ministers, Heads of Ministries equivalent to ministries, Heads of government agencies, and Chairmen of Provincial People's Committees directly under the Central Government are responsible for implementing this Regulation./.