DECISION No. 54/2003/QD-BTC OF APRIL 16, 2003 PRESCRIBING THE CUSTOMS MANAGEMENT OVER GOODS ON SALE AT DUTY-FREE SHOPS

DECISION No. 54/2003/QD-BTC OF APRIL 16, 2003 PRESCRIBING THE CUSTOMS MANAGEMENT OVER GOODS ON SALE AT DUTY-FREE SHOPS

THE MINISTER OF FINANCE

Pursuant to Customs Law No. 29/2001/QH10 adopted on June 29, 2001 by the Xth National Assembly of the Socialist Republic of Vietnam at its ninth session;

Pursuant to the Government’s Decree No. 101/2001/ND-CP of December 31, 2001 detailing the implementation of a number of articles of the Customs Law regarding customs procedures, customs inspection and supervision regime;

Pursuant to the Government’s Decree No. 86/2002/ND-CP of November 5, 2002 defining the functions, tasks, powers and organizational structures of the ministries and ministerial-level agencies;

Pursuant to the Prime Minister’s Decision No. 205/1998/QD-TTg of August 19, 1998 promulgating the Regulation on duty-free shops;

At the proposal of the General Director of Customs,

DECIDES:

Article 1.- To promulgate together with this Decision the Regulation on customs management over goods on sale at duty-free shops.

Article 2.- This Decision takes effect 15 days after its publication in the Official Gazette. To repeal Decision No. 1549/2001/QD-TCHQ of December 26, 2001, Article 6 of Decision No. 19/2002/QD-TCHQ of January 10, 2002 of the General Director of Customs and other guiding documents contrary to this Decision.

Article 3.- The General Director of Customs, the heads of the units under or attached to the Ministry of Finance and the concerned organizations and individuals shall have to implement this Decision.

This Decision shall take effect fifteen days from the date of its publication in the Official Gazette.
Vice Minister
DEPUTY MINISTER

REGULATION ON CUSTOMS MANAGEMENT OF GOODS ON SALE AT DUTY-FREE SHOPS

(Promulgated together with Decision No. 54/2003/QD-BTC of April 16, 2003 of the Minister of Finance)

Chapter I. GENERAL PROVISIONS

1. Goods imported for sale at duty-free shops (hereinafter referred to as shops for short) shall be allowed to go through customs procedures at the Customs Sub-Departments that manage the shops. Customs procedures for goods imported for sale at the shops shall be the same as those for goods imported for business. Tax shall be calculated only on import goods sold to people on entry with prices exceeding the duty-free luggage limits (tax shall be calculated and collected on excess quantity).

2. Goods put on sale at the shops shall be stuck with the stamp "VIETNAM DUTY NOT PAID" under the Customs supervision.

3. The Customs shall not seal up storehouses and shops, directly supervise nor directly carry out sale procedures. Once a month, the Customs shall check the shops' sale documents so as to liquidate the import declarations. In the process of liquidation, if deeming it necessary, the Customs shall check the quantities of unsold goods.

4. Responsibilities of the shops:

4. 1. To sell goods rightly according to procedures, to the right subjects and in the prescribed quantities.

4. 2. To keep sale documents and dossiers under the provisions in Section II below.

4. 3. Once a month, the shops must send sale reports to the managing Customs Sub-Departments (according to a set form) for inspection and liquidation.

4. 4. The shops must have computer systems linked to the managing Customs Sub-Departments so that they can directly transmit to the Customs offices: - Sale data (names of buyers, their passport or laissez-passer numbers, goods names, quantities, value…) - Data on unsold goods (goods names, codes, quantities and value…).

5. The Customs that manage the shops shall have to open books to monitor goods imported for sale at the shops and data on the sold and unsold goods, which are supplied by the shops under the provisions at Point 5.4 above.

II. PROVISIONS ON GOODS SALE

1. If buyers are Vietnam-based diplomatic missions, consulates and representation missions of international organizations which enjoy the tax-free quantitative limits specified in the Government's Decree No. 73/CP of July 30, 1997:

1. 1. Salespeople must check the following documents: a/ Diplomatic passports, identity cards or notes (if buyers are organizations). b/ Duty-free goods quota books. c/ The purchase authorization papers (for cases of goods purchase under authorization). d/ The permits of the provincial/municipal Customs Departments (for goods being cars or motorcycles).

1. 2. Salespeople must keep and archive the following documents: a/ Cutting off the coupons corresponding to the sold goods and sticking them on the sale invoices. b/ The sale invoices. c/ Documents c and d specified at Point 1.1 above.

2. If people on exit buy goods at the exit-border gate shops:

2. 1. Salespeople must check the following documents: a/ Passports or laissez passers. b/ Documents proving the lawful origin of their foreign currency(ies) (for cases of purchase of goods valued in excess of the prescribed foreign currency limit, which must be declared to the Customs under the regulations of State Bank of Vietnam).

2. 2. Salespeople must: a/ Inscribe fully the full names, passport numbers and exit dates of buyers on the sale invoices. b/ Archive the sale invoices.

2. 3. For tourists who exit by sea and have no entry visas nor luggage declarations, the provisions at Point 2.2 above shall apply.

3. If people on exit buy goods at inland shops:

3. 1. Salespeople must check the following documents: a/ The passports. b/ The booked air tickets

3. 2. Salespeople must keep and archive the following documents: a/ The sale invoices (with the exit-border gate Customs' certification of actual exportation). b/ Fully inscribe the full names, passport numbers, flight numbers and exit dates of the goods buyers on the sale invoices.

3. 3. Customs procedures to be performed by the Customs Sub-Departments managing the shops: a/ Checking and comparing the sold goods with the sale invoices. b/ Sealing up the sold goods so that the shops can transport them to the export border gates.

3. 4. Customs procedures at the export border gates: a/ Checking the seals stuck by the Customs that manage the shops. b/ Supervising to ascertain that they are actually exported. c/ Making certification of actual exportation on each sale invoice.

4. In the case where persons entering the country purchase goods from duty-free shops located at border gates or inland duty-free shops:

4. 1. Salespersons must verify the following documents: a/ Passports. b/ Entry/exit declarations. c/ After selling goods, they must record the total value of the sold goods, sign and record their full names on the entry/exit declarations.

4. 2. Salespersons must retain and archive the following documents: a/ Sale invoices. b/ Fully record the full names, passport numbers, and entry dates of the purchasers on the sale invoices. c/ Retain copies of the entry/exit declarations (after recording them as prescribed in Point 4.1.c above).

5. In the case where buyers are foreign experts participating in Official Development Assistance (ODA) programs or projects in Vietnam, who purchase goods within the tax-free quantitative limits specified in the Prime Minister's Decision No.

211/1998/QD-TTg dated October 31, 1998, or overseas Vietnamese returning to work in Vietnam at the invitation of Vietnamese state agencies under the Prime Minister's Decision No. 210/1999/QD-TTg dated October 27, 1999:

5. 1. Pre-sale procedures: The shops must produce the documents specified in Point 5.2.c below to the managing Sub-Departments for certification and deduction of the goods sold at the shops:

5. 2. Salespersons must verify the following documents: a/ Passports. b/ Entry/exit declarations. c/ Written certifications by the Ministry of Planning and Investment (for ODA experts) or the ministries or branches that invite overseas Vietnamese to return and work in Vietnam (for overseas Vietnamese).

5. 3. Salespersons must retain and archive the following documents: a/ Sale invoices. b/ Fully record the full names, passport numbers, and entry dates of the purchasers on the sale invoices. c/ For documents specified in Point 5.2.c above: - Retain copies thereof, with the deduction certification by the customs, if buyers have not yet purchased all the goods within the duty-free limits. - Retain the originals, if buyers have purchased all the goods within the duty-free limits.

6. For duty-free goods sold on flights: When loading goods onto aircraft or bringing unsold goods back, enterprises must submit to the Customs documents clearly reflecting the quantities of goods loaded onto the aircraft, the quantities of actually sold goods, and the quantities of unsold goods, with the certifications by the duty-free shops, salespersons, and supervising Customs officers, serving as a basis for the liquidation for each flight.

7. Goods ordered by ship captains at duty-free shops must be placed in the ship's hold so that the Customs can seal and supervise them until the ship departs (except for goods proposed by the ship masters to be left outside in reasonable quantities for use while the ship is moored at ports).

Chapter III. PROVISIONS ON LIQUIDATION

1. A liquidation dossier includes: a/ Documents on goods sold to each subject as prescribed in Section II above. b/ The shop's monthly sale report. c/ Other documents (if any). The liquidation shall be conducted on a monthly basis. Annually, the Customs Sub-Departments managing the shops shall inspect unsold goods. The shops shall archive the dossiers of sale documents (according to each type of buyer-subjects prescribed in Section II above) and produce them to the Customs when they conduct inspections and liquidations.

2. Liquidation procedures: - Monthly, the Customs Sub-Departments managing the shops shall liquidate the quantities of goods sold in the month in the first week of the month. When the Customs checks and liquidates such goods, the shops must produce the dossiers mentioned in Point 1 above and other books and documents (if requested by the Customs). - During the liquidation process, if deemed necessary, the Customs may check unsold goods. - After the liquidation, the shops must archive the sale dossiers within the time limit prescribed by law.

3. Liquidation in cases of broken or destroyed goods:

3. 1. For goods damaged during transportation, the shops must submit expert certificates and written explanations thereof. For cases where only a small number of goods are damaged, the Customs will not require expert examination thereof.

3. 2. For goods destroyed due to expiration of their use duration or deterioration in quality, the shops must submit expert certificates and written explanations thereof.

3. 3. Destruction procedures: shall comply with the provisions of the law.

Chapter IV. PROVISIONS ON GOODS CHANGING THEIR USE AND PURPOSES

1. Re-exported goods: a/ When carrying out re-export procedures, the shops must submit the following documents: - The written request for re-export. - The Trade Ministry's permit (if such permit was issued upon importation). b/ Re-export customs procedures: - The re-export customs procedures shall be the same as those prescribed for re-export goods lots. - The Customs Sub-Departments that manage the shops shall carry out re-export procedures.

2. Goods transported for inland sale: When the shops wish to transport import goods for inland sale, they must submit: a/ A written request. b/ The Trade Ministry's permit (for conditional import goods). The customs procedures for transporting goods for inland sale shall be the same as those prescribed for goods imported for business. For the Minister of Finance TRUONG CHI TRUNG

This Decision shall take effect fifteen days from the date of its publication in the Official Gazette.
Vice Minister

DEPUTY MINISTER