Decision No. 52/2003/QÐ-BTC on the issuance of regulations regarding conditions for establishing and managing the operations of customs clearance locations and non-border gateways for goods inspection.

MINISTRY OF FINANCE ********	SOCIALIST REPUBLIC OF VIETNAM Independence - Freedom - Happiness ********
Number: 52/2003/QD-BTC	Hanoi, April 16, 2003

 

Pursuant to …;

DECISION NO. 52/2003/QD-BTC OF THE MINISTER OF FINANCE ON APRIL 16, 2003 REGARDING THE ISSUANCE OF REGULATIONS ON CONDITIONS FOR ESTABLISHING AND MANAGING THE OPERATIONS OF CUSTOMS PROCEDURE LOCATIONS AND NON-CUSTOMS PORT INSPECTION LOCATIONS

THE MINISTER OF FINANCE

Pursuant to Article 17 of the Customs Law No. 29/2001/QH10 adopted by the National Assembly on June 29, 2001
Pursuant to Decree No. 101/2001/ND-CP dated December 31, 2001 of the Government detailing the implementation of certain provisions of the Customs Law concerning customs procedures, inspection, and supervision regimes
Pursuant to Decree No. 86/2002/ND-CP dated November 5, 2002 of the Government stipulating the functions, tasks, powers, and organizational structure of Ministries and ministerial-level agencies
Implementing the opinion of the Prime Minister in Circular No. 1697/CP-KTTH dated December 31, 2002 of the Government
Considering the proposal of the Director General of the General Department of Customs

Pursuant to …;

Article 1:

Attached hereto is the Regulation on Conditions for Establishing and Managing the Operations of Customs Procedure Locations and Non-Customs Port Inspection Locations issued pursuant to this Decision.

Article 2:

This Decision shall take effect fifteen days from the date of publication in the Official Gazette. The Decision No. 1495/2001/QD-TCHQ dated December 26, 2001 of the Director General of the General Department of Customs regarding customs procedure locations and non-customs port inspection locations and other related guiding regulations are hereby abolished.

Article 3:

The Director General of the General Department of Customs, Heads of units under and affiliated with the Ministry of Finance, People's Committees of provinces and centrally governed cities, and organizations and individuals concerned are responsible for implementing this Decision.

 

Truong Chi Trung (Signed)

 

REGULATIONS

ON CONDITIONS FOR ESTABLISHING AND MANAGING THE OPERATIONS OF CUSTOMS PROCEDURE LOCATIONS AND NON-CUSTOMS PORT INSPECTION LOCATIONS
(Attached to Decision No. 52/2003/QD-BTC dated April 16, 2003 of the Minister of Finance)

I. GENERAL PROVISIONS

Article 1:

The establishment of Customs Procedure Locations must comply with the following principles:

1- To alleviate congestion of export and import goods at ports, creating favorable conditions for export and import activities, investment, and modernization of customs management.

2- Customs Procedure Locations outside ports must be established not too far from ports and must have all necessary conditions to carry out customs inspection, supervision, and control, preventing smuggling and commercial fraud.

3- Localities establishing Customs Procedure Locations outside ports must have significant export and import turnover, including many enterprises registering to handle customs procedures for export and import goods at these locations to ensure their long-term and effective operation.

Article 2:

A Customs Procedure Location outside a port is where customs procedures as stipulated in

Article 16 of the Customs Law are carried out.

A Customs Procedure Location outside a port includes the office of the Customs Sub-Department outside the port and a system of warehouses and yards that meet the requirements for storing goods and customs inspection and supervision.

Article 3:

A Non-Customs Port Inspection Location for export and import goods is where the customs authority carries out physical inspections of export and import goods, including:

1- Warehouses and yards within the Customs Procedure Location outside the port as specified in Article 2.

2- Centralized Inspection Locations: Places where export and import goods are gathered for customs inspection (including Container Freight Stations - CFS where multiple export consignments are consolidated into a single large shipment for export and where a single transport document is used for multiple import shipments from different consignors).

3- Construction Sites: Places where imported machinery, equipment, and materials for construction projects are gathered.

4- Production Sites: Factories and workshops of enterprises (applicable to export and import goods requiring specific storage, packaging, hygiene, technology, safety conditions; factories with large and regular volumes of export and import goods).

II- CONDITIONS AND PROCEDURES FOR ESTABLISHING CUSTOMS PROCEDURE LOCATIONS OUTSIDE PORTS

Article 4:

Conditions for establishment:

The organization applying to establish a Non-Customs Border Clearance Facility (referred to in this Part II as the Facility) must be a business established and operating in accordance with the Law. The business proposing to establish the Facility must meet all of the following conditions:

1- Have registered business activities in the import and export cargo handling and transportation sector.

2- Be approved by the People's Committee of the province or centrally governed city where the Facility is to be established and submit a request to the Ministry of Finance.

3- The area for establishing the Facility must satisfy the following conditions:

3.1- Located in a place with convenient transportation, within 30 kilometers from the port or airport;

3.2- Located in an area with a concentration of businesses engaged in import and export activities (when established, it has the potential to attract at least 30 businesses to regularly handle customs procedures);

3.3- Warehouses, yards, and auxiliary facilities must meet the requirements for physical inspection of goods, supervision by the Customs authority, security, fire safety, environmental hygiene, and have separate offices for the Customs authority to perform their duties according to regulations;

3.4- Must have a wall separating it from surrounding areas to ensure management and supervision requirements of the Customs authority;

3.5- Must have material and technical infrastructure, transport means suitable for the requirements of loading, unloading, storing, preserving goods, and inspection and supervision by the Customs authority;

3.6- Must be managed by computer and connected to the Customs authority's computer system;

3.7- The Facility must have sufficient conditions for the Customs authority to install inspection and monitoring equipment such as X-ray machines, cameras, etc.;

Article 5:

Documents for application to establish:

1- Application form for establishing the Facility: two original copies (according to the model in Appendix No. 01);

2- Business registration certificate: one copy;

3- Economic and technical construction justification: one copy;

4- Operating regulations: one original copy;

5- Request document of the provincial or centrally governed city People's Committee: one original copy;

6- Legal documents on land use rights for constructing the Facility: one copy.

Article 6:

Procedures and authority to decide on establishment:

1- The application documents for establishing the Facility are submitted to the Provincial or Central City Customs Department (hereinafter referred to as the Customs Department).

1.1- The Customs Department conducts an assessment of the business's proposal. The content of the assessment includes:

- Checking the documents

- Surveying the actual warehouse site

- Evaluating compliance with the conditions stipulated in Clause 3 of Article 4 of this regulation.

1.2- Within fifteen working days from the date of receiving complete and valid documents from the business, the Customs Department completes the assessment, reports the results to the General Director of the General Customs Department, along with recommendations for staffing within the department's quota to meet the operational requirements of the newly established Facility.

1.3- Within ten working days from the date of receiving complete documents and the assessment report from the Customs Department, the General Director of the General Customs Department submits to the Minister of Finance for a decision to establish the Facility. In case of non-acceptance, the Ministry of Finance will issue a reply to the business and the provincial or centrally governed city People's Committee.

2- Annually or when signs of law violations are detected, the Customs Department shall conduct inspections on the compliance with Customs laws by businesses permitted to establish and operate the Facility. If violations are found, they will be handled according to the law or reported to the General Customs Department for the Minister of Finance to revoke the establishment decision based on the severity of the violation.

3- The Minister of Finance decides to revoke the establishment decision in the following cases:

- The business requests to cease operations;

- More than six months from the date of the establishment decision, the business does not put the Facility into operation without justifiable reasons;

- When the business operating the Facility violates Customs laws as stipulated in Clause 2 of this Article;

- The business has been allowed to operate but fails to maintain the conditions stipulated in Clause 3 of Article 4 of this regulation.

4- Based on the scale of import and export activities, the business's recommendation, and the geographical location and operational conditions of the Facility, after obtaining the opinion of the provincial or centrally governed city People's Committee where the Facility operates, the Customs Department Director decides whether to allow the business to reduce or expand the Facility (to adjacent areas); the General Director of the General Customs Department permits relocation or expansion of the Facility (to non-adjacent areas).

III- CONDITIONS AND PROCEDURES FOR ESTABLISHING NON-CUSTOMS BORDER CLEARANCE FACILITIES FOR INSPECTION OF IMPORT AND EXPORT GOODS (HEREINAFTER REFERRED TO AS INSPECTION FACILITY)

Article 7:

For centralized inspection facilities:

1- Conditions for establishment:

1.1- The business must have registered business activities in the import and export cargo handling and transportation sector;

1.2- The area for establishing the inspection facility must meet the conditions specified in Clause 3, Article 4 above.

2- Set of establishment documents: As stipulated in Article 5 above (excluding the request document of the provincial or centrally governed city People's Committee).

3- Establishment procedures: Implemented according to the provisions of Article 6 above.

4- Authority to decide on establishment: Based on the assessment document and the proposal of the Customs Department, the General Director of the General Customs Department decides to establish the inspection facility.

Article 8:

For inspection facilities located at construction sites or production sites:

1- The Customs Department Director bases on the provisions of Clauses 3 and 4 of Article 3 above and relevant regulations to issue a decision recognizing this inspection facility.

An inspection facility located at a construction site can only operate during the construction period of the factory or project.

2- Recognition procedures:

- The business submits an application to the Customs Department. The application must clearly state the special nature of the goods, the volume of import and export goods, and the requested recognition period (for inspection facilities located at construction sites).

- Within three working days from the date of receiving a valid application from the business, the Customs Department Director issues a recognition document or replies to the business if it is not accepted (specifying the reason).

IV- RESPONSIBILITIES OF THE BUSINESS, CUSTOMS AUTHORITY, AND PROVINCIAL OR CENTRALLY GOVERNED CITY PEOPLE'S COMMITTEE

Article 9:

Responsibilities of enterprises operating Customs Procedure Locations outside ports and Goods Inspection Locations:

1\. Fulfill all requirements regarding establishment conditions as stipulated in Article 4 above.

2\. Ensure the original condition of goods, customs seals, and shipping company seals during the storage period at these Locations.

3\. Facilitate the State management functions of the Customs authorities according to the provisions of the Law.

4\. Fully comply with legal regulations on customs procedures for exported and imported goods.

5\. Bear responsibility for managing goods within the area of Customs Procedure Locations and Goods Inspection Locations outside the working hours of the Customs authorities.

6\. Be responsible before the shipper for goods stored at centralized Customs Procedure Locations and Goods Inspection Locations.

7\. Bear legal responsibility if involved in smuggling and commercial fraud involving exported and imported goods occurring within the area of Customs Procedure Locations and Goods Inspection Locations managed and operated by the enterprise.

Article 10:

Responsibilities of Customs Authorities:

The area inside the boundary fence of Customs Procedure Locations and Goods Inspection Locations constitutes the scope of Customs operations. Responsibilities of the Customs authority:

1\. During working hours, the Customs authority shall be responsible for:

a\. Processing customs formalities for exported and imported goods transferred between ports in accordance with the provisions of the Law.

b\. Inspecting, supervising, and controlling customs activities related to exported and imported goods within this operational area.

2\. Coordinate with relevant agencies in the task of preventing smuggling and commercial fraud outside the Customs Procedure Locations and Goods Inspection Locations and outside working hours.

Article 11:

Responsibilities of the People's Committee of provinces and centrally governed cities:

1\. Select enterprises meeting the required conditions to operate Customs Procedure Locations and bear responsibility for such selection. When selecting, economic efficiency and the management, inspection, and control capabilities of the Customs authority and other state management agencies must be considered; avoid establishing too many locations (except for provinces and cities with large ports and numerous industrial zones, where only one location may be established if conditions permit).

2\. Manage the operations of enterprises operating Customs Procedure Locations in accordance with the provisions of the Law.

3\. Direct relevant agencies located in the area to closely cooperate in combating smuggling and commercial fraud outside the Customs Procedure Locations and Goods Inspection Locations; implement measures to ensure social security and create favorable conditions for the operation of enterprises operating Customs Procedure Locations, export-import enterprises, and the Customs authority.

V\. IMPLEMENTATION PROVISIONS

Article 12:

Customs Procedure Locations and Goods Inspection Locations established prior to the issuance of this regulation shall continue their operations but must meet all conditions specified in this Decision within a maximum period of six months from the date this Decision takes effect. After this period, if enterprises fail to meet the prescribed conditions, the Locations must cease operations.

ANNEX NO. 01

SOCIALIST REPUBLIC OF VIET NAM

Independence - Freedom - Happiness

..., date..., month..., year...

APPLICATION FOR ESTABLISHING A CUSTOMS PROCEDURE LOCATION/GOODS INSPECTION LOCATION FOR EXPORTED AND IMPORTED GOODS OUTSIDE PORTS

Respectfully submitted to: General Department of Customs.

Respectfully submitted to: Provincial/City Customs Office...

Company...

We respectfully request your agency to consider recognizing the Customs Procedure Location/Goods Inspection Location for exported and imported goods outside ports of our company at...

.........................................................................................................................

Enclosed with this Application, our company...

hereby submits the dossier in accordance with Article 5 of Decision No. 52/2003/QD-BTC dated April 16, 2003, issued by the Minister of Finance, concerning the establishment conditions and management of Customs Procedure Locations and Goods Inspection Locations outside ports, including:

.........................................................................................................................

.........................................................................................................................

.........................................................................................................................

Our company solemnly declares that we will bear legal responsibility for the enclosed dossier containing the aforementioned documents being lawful and that our company will fully meet all conditions stipulated in Article 5 and other provisions of Decision No. .../2003/QD-BTC dated ..., ..., 2003, issued by the Minister of Finance, concerning the establishment conditions and management of Customs Procedure Locations and Goods Inspection Locations outside ports.

Director of the Company

(Signature and stamp)