Circular No. 47/2004/TT-BTC guiding customs procedures, inspection and supervision regimes, and tax policies for goods traded across borders with neighboring countries according to Decision No. 252/2003/QĐ-TTg dated November 24, 2003 of the Government Prime Minister.

CIRCULAR

Guidelines for customs procedures, inspection and supervision regimes, and tax policies for goods traded across borders with neighboring countries pursuant to

Decision No. 52/2003/QĐ-TTg dated November 24, 2003 of the Prime Minister

Pursuant to Decree No. 101/2001/NĐ-CP dated December 31, 2001 of the Government detailing certain provisions of the Law on Customs regarding customs procedures, inspection and supervision regimes;

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Pursuant to the Customs Law dated June 29, 2001;

BASED ON Decree No. 77/2003/NĐ-CP dated July 1, 2003 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;

Pursuant to Decision No. 252/2003/QĐ-TTg dated November 24, 2003 of the Prime Minister on management of goods trade across borders with neighboring countries;

While awaiting issuance of joint Circulars between relevant Ministries, the Ministry of Finance temporarily provides guidelines for customs procedures, inspection and supervision regimes, and tax policies as follows:

This Circular provides guidelines for customs procedures, inspection and supervision regimes, and tax policies for activities of goods trade across borders with neighboring countries.

I. GENERAL PROVISIONS

1. All goods passing through border gates must undergo customs procedures, be subject to customs inspection and supervision, pay taxes and fees (if applicable) in accordance with the provisions of the Law.

2. All goods when crossing border gates must go through customs procedures, be subject to customs inspection and supervision, pay taxes and fees (if applicable) as prescribed by the Law.

II. SPECIFIC PROVISIONS

1. Regarding the quality of goods traded across borders (as stipulated in Clause 2, Article 3, Chapter I):

For imported goods listed in the catalog requiring quality inspection and quarantine according to current regulations, they must be inspected for quality before clearance; they may not be imported through border gates without animal and plant quarantine points and quality inspection points as prescribed by Vietnamese law.

2. Regarding tax policy (as stipulated in Article 5, Chapter I):

a. For goods traded across borders: Taxes and fees (if applicable) must be paid in accordance with the provisions of the Law.

b. For goods exchanged or sold by residents of border areas:

- Only goods produced by residents of neighboring countries are eligible for exemption from import duties.

- The limit for duty-free imports: Not exceeding VND 500,000/person/day. For indivisible products, if the value of a single unit exceeds the specified limit, the excess portion must be taxed (including whole animals, whole items, whole units, complete sets).

- Goods not produced by residents of neighboring countries are not eligible for duty-free imports.

- Goods traded or exchanged by non-border residents are not eligible for duty-free imports.

3. Customs procedures for goods exported and imported across borders; goods exchanged or sold by border residents; goods brought into border markets, gate markets, and markets within Border Economic Zones:

3.1. Customs documents:

a. For goods imported at the border; goods brought into border markets, gate markets, and markets within Border Economic Zones:

- Customs declaration form: Use the Import Goods Declaration Form (code HQ/2002-NK issued together with Decision No. 1257/2001/QĐ-TCHQ dated December 4, 2001 of the General Department of Customs Director): Two original copies;

- Other documents shall be implemented in accordance with the regulations on customs documents and customs procedures for export and import goods under sales contracts issued together with Decision No. 56/2003/QĐ-BTC dated April 16, 2003 of the Minister of Finance, except for transport documents.

Specifically, for individual businesses located in border provinces and neighboring countries trading in border markets, gate markets, and markets within Border Economic Zones, there is no requirement to provide the aforementioned documents, except for two types of documents:

+ Quality inspection certificate or notification of exemption from quality inspection issued by the State agency responsible for quality inspection (for goods requiring quality inspection);

+ Quarantine registration certificate issued by the quarantine agency (for imported goods requiring quarantine).

b. For goods exported across the border:

- Customs declaration form:

+ In case of goods exported under sales contracts: Use the Export Goods Declaration Form (code HQ/2002-XK issued together with Decision No. 1257/2001/QĐ-TCHQ dated December 4, 2001 of the General Department of Customs Director): Two original copies;

+ In case of goods exported without sales contracts: Use the Border Goods Export Declaration Form (code HQ/2002-XKBG issued together with Decision No. 1473/2002/QĐ-TCHQ dated May 24, 2002 of the General Department of Customs Director; Decision No. 24/2004/QĐ-BTC dated March 5, 2004 of the Ministry of Finance): Two original copies;

- Other documents shall be implemented in accordance with the regulations on customs documents and customs procedures for export and import goods under sales contracts issued together with Decision No. 56/2003/QĐ-BTC dated April 16, 2003 of the Minister of Finance, appropriate to each type of transaction.

c. For goods exchanged or sold by border residents:

- Goods exchanged or sold by residents of neighboring countries do not require declaration on the customs declaration form.

- The consignor must present a border identity card or border pass issued by the competent authority to enjoy the tax exemption quota.

- If goods exchanged or sold by residents of neighboring countries exceed the specified quota, the customs authority will directly levy taxes on the Tax Receipt.

d. Regarding the Certificate of Origin (C/O):

- Goods exchanged or sold by residents of neighboring countries do not need to submit a Certificate of Origin (C/O). The determination of origin for such cases is based on actual inspection of the goods.

- Goods exported and imported across borders that enjoy preferential tax exemptions according to bilateral agreements between the Government of Vietnam and the Government of neighboring countries (for imported goods wishing to enjoy preferential import tax exemptions, a Certificate of Origin (C/O) is required).

3.2. Regarding physical inspection of goods:

- Measures to exempt physical inspection of goods shall not be applied to imported goods through border crossings and goods brought into border markets, border gate markets, and markets within Border Economic Zones. - Goods exported through borders shall comply with inspection forms as prescribed by the Customs Law. - Goods bought and sold by residents of countries sharing borders: Inspection shall only be conducted if there is a possibility of exceeding tax-exempt quantities or smuggling, etc., based on surveillance observations. Regarding daily monitoring frequency: Mainly through surveillance work to detect individuals taking advantage for trading activities, without the need to maintain tracking records.

4. Customs procedures for vehicles entering and exiting through land border gates:

4.1. At the border control checkpoint:

a. For inbound vehicles:

a.1. Responsibilities of the driver:

- Stop the vehicle at the designated location at the customs gate, present the documents and vehicle for customs inspection, and enter the tracking log.

- Sign to confirm in the customs tracking log.

a.2. Responsibilities of the customs authority:

- Inspect the vehicle and the documents presented by the driver and enter the tracking log.

- Supervise the inbound vehicle.

b. For outbound vehicles:

b.1. Responsibilities of the driver: Present the outbound vehicle declaration form and the export goods declaration form (if the vehicle is carrying export goods) that have been processed through customs formalities.

b.2. Responsibilities of the customs authority:

- Accept, inspect the vehicle and documents presented by the driver, and record in the logbook.

- Through surveillance work and information collection related to the export consignment, if there is evidence to confirm that the goods are smuggled or evading taxes, report to the leadership of the Customs Branch for re-inspection to identify violations and handle them according to regulations. - Supervise the vehicle and goods until they exit the border.

4.2. At the customs office premises:

Customs procedures for outbound, inbound, and transiting vehicles are as follows:

a. The driver is responsible for declaring and submitting the following documents to customs:

a.1. For vehicles transporting goods entering, exiting, or transiting:

- Vehicle Declaration Form for Entry and Exit through Land Border Gates (HQ/2002/01-PTVT issued together with Decision No. 1473/2002/QĐ-TCHQ dated May 24, 2002 by the General Director of the General Department of Customs): Two original copies;

- Export and Import Luggage Declaration Form of the Driver (if the vehicle operates outside the customs gate area): One original copy;

- Passenger List (if carrying passengers): One original copy;

- Present the Permit (if applicable) according to the Road Transport Agreement between the Government of Vietnam and the Government of neighboring countries.

a.2. For foreign vehicles entering the Vietnamese customs area to deliver imported goods or pick up exported goods and then return to their country on the same day, and for Vietnamese vehicles crossing the border to deliver exported goods or pick up imported goods directly at the customs area and then return to Vietnam on the same day, no requirement to declare and submit the above documents.

a.3. For temporary import-reexport and temporary export-reimport vehicles within the time limit specified in Article 52 of Decree No. 101/2001/NĐ-CP dated December 31, 2001 of the Government and Point 1, Part 1 of Circular No. 11/2003/TT-BCA (C11) dated July 3, 2003 of the Ministry of Public Security, including tourist cars (sedans, passenger-carrying cars, dual-purpose cars), motorcycles, motorized and non-motorized boats, in addition to submitting and presenting the documents stipulated in point a1 above, the driver must also submit to customs one of the following documents:

- Temporary Import Permit for Circulation issued by the Public Security Authority: One original copy;

- Permit issued by the Provincial or City Customs Office (for vehicles temporarily exporting and reimporting through different ports): One original copy;

b. Customs is responsible for:

- Accepting and inspecting the customs documents submitted by the driver.

- Comparing the declaration with the actual vehicle and inspecting the vehicle if there is reasonable suspicion that it is carrying undeclared imported goods.

- The Head of the Customs Branch at the border gate decides to allow the vehicle to enter, exit, or transit on the Vehicle Declaration Form for Entry and Exit HQ/2002/01-PTVT.

- Return one original copy of the Vehicle Declaration Form for Entry and Exit HQ/2002/01-PTVT to the driver as proof of travel.

- Enter the tracking log and retain the customs documents according to regulations.

c. The issuance of permits for Vietnamese vehicles for temporary export-reimport with a time limit is carried out as follows:

- In cases where the vehicle temporarily exports and reimports through the same port, the Head of the Customs Branch at the border gate allows this by directly noting on the Vietnamese entry and exit declaration form of the driver.

- In cases where the vehicle temporarily exports and reimports through different ports, the owner or driver must submit a request letter (including: name of the owner, name of the driver, type of vehicle, brand, chassis number, engine number, license plate, temporary export port, reimport port, temporary export time, reimport time) to the Director of the Provincial or City Customs Office where the temporary export port is located to obtain permission.

The Permit (GP/2002/02-PTVT issued together with Decision No. 1473/2002/QĐ-TCHQ dated May 24, 2002 by the General Director of the General Department of Customs) consists of three copies: Hand over two copies to the owner or driver to submit to the customs office at the temporary export and reimport ports each one copy; retain one copy at the issuing customs office. This permit is valid for both the temporary export and reimport ports.

III. VIOLATION HANDLING AND IMPLEMENTATION

1. Any violation of the provisions in Decision 252/2003/QĐ-TTg cited above and in this Circular, depending on the severity of the violation, shall be handled according to the regulations in the Government's Decree on Administrative Penalties in the Field of Commerce and other relevant legal documents, or may be criminally prosecuted according to the law.

2. This Circular takes effect fifteen days after its publication in the Official Gazette. It abolishes Circular No. 2993/TCHQ-GSQL dated July 1, 2002 of the General Department of Customs guiding customs procedures for goods, luggage for entry and exit, and vehicles entering and exiting through land border gates, and previous regulations on customs procedures for cross-border trade goods contrary to the provisions of this Circular.

3. The General Director of the General Department of Customs, Heads of Units under the Ministry of Finance, and related organizations and individuals are responsible for implementing this Circular./.