JOINT CIRCULAR No. 61-TT/LB guiding the procedures and practices for collecting taxes on small-scale cross-border trade imports and exports

 JOINT CIRCULAR

NUMBER 61-TT/LB OF OCTOBER 24, 1992 ISSUED BY THE JOINT MINISTRY OF FINANCE AND GENERAL DEPARTMENT OF CUSTOMS GUIDING THE PROCEDURE FOR COLLECTING EXPORT AND IMPORT TAXES ON SUBSIDARY TRADE

IMPLEMENTING THE LAW ON EXPORT TAX AND IMPORT TAX PASSED BY THE NATIONAL ASSEMBLY ON DECEMBER 26, 1991 AND DECISION NO. 115-HĐBT OF APRIL 9, 1992 OF THE STATE COUNCIL;

THE JOINT MINISTRY OF FINANCE AND THE GENERAL DEPARTMENT OF CUSTOMS PROVIDE GUIDANCE AS FOLLOWS:

2. Individuals who have registered as the principal investigator of a Research Project or Pilot Production Project and those participating in its implementation shall not participate in the Evaluation and Selection Council for that Research Project or Pilot Production Project (hereinafter referred to as the Council). In necessary cases, members of the Council may be staff members of the organization registering as the principal investigator of the Research Project or Pilot Production Project, but not more than one person and they cannot serve as Chairperson, Vice-Chairperson, or reviewing member.

1. ALL GOODS PERMITTED TO BE EXPORTED THROUGH SUBSIDARY BORDER TRADE MUST PASS THROUGH DESIGNATED GATEWAYS AND PAY THE SUBSIDARY EXPORT TAX IN ACCORDANCE WITH THE PROVISIONS OF DECISION NO. 115-HĐBT OF THE STATE COUNCIL.

2. PROVINCES ALONG THE BORDER THAT HAVE GOODS FOR SUBSIDARY EXPORT AND IMPORT MUST ESTABLISH INTER-DEPARTMENTAL STATIONS TO CONTROL AND COLLECT SUBSIDARY EXPORT AND IMPORT TAXS IN ACCORDANCE WITH THE SPIRIT OF DECISION NO. 115-HĐBT OF THE STATE COUNCIL.

3. ORGANIZATIONS AND INDIVIDUALS ENGAGED IN SUBSIDARY BORDER TRADE MUST OBTAIN BUSINESS LICENSES FOR ITEMS LISTED IN THE DIRECTORY OF THE MINISTRY OF COMMERCE AND TOURISM AND PAY THE FULL AMOUNT OF TAX REQUIRED BY LAW.

4. CUSTOMS AUTHORITIES ARE RESPONSIBLE FOR SUPERVISING AND CONTROLLING GOODS EXPORTED AND IMPORTED THROUGH SUBSIDARY BORDER TRADE AT INTER-DEPARTMENTAL STATIONS AT THE GATEWAY.

5. TAX AUTHORITIES ARE RESPONSIBLE FOR COLLECTING THE FULL AMOUNT OF TAX FROM ALL GOODS EXPORTED AND IMPORTED THROUGH SUBSIDARY BORDER TRADE AT INTER-DEPARTMENTAL STATIONS ACCORDING TO THE TAX RECEIPT.

II. PROCEDURE FOR COLLECTING EXPORT AND IMPORT TAXS ON SUBSIDARY TRADE

1. RESPONSIBILITIES OF THE CONSIGNOR:

- ALL ORGANIZATIONS AND INDIVIDUALS PERMITTED TO ENGAGE IN SUBSIDARY BORDER TRADE MUST COMPLETE CUSTOMS PROCEDURES AND PAY TAX WHEN THEY HAVE GOODS FOR EXPORT OR IMPORT.

- WHEN COMPLETING PROCEDURES, THEY MUST:

+ PRESENT THE BUSINESS LICENSE FOR SUBSIDARY BORDER TRADE EXPORT AND IMPORT ISSUED BY THE PEOPLE'S COMMITTEE.

+ SUBMIT THREE DECLARATION FORMS FOR GOODS ACCORDING TO THE MODEL UNIFIEDLY MANAGED AND DISTRIBUTED BY THE GENERAL DEPARTMENT OF CUSTOMS. EACH DECLARATION FORM MUST BE FILLED OUT ACCORDING TO THE SPECIFIED COLUMNS.

+ PAY THE FULL AMOUNT OF EXPORT AND IMPORT TAX BEFORE MOVING GOODS ACROSS THE BORDER OR INTO THE DOMESTIC MARKET.

+ THE CONSIGNOR MUST FULLY DECLARE THE ACTUAL QUANTITY AND TYPES OF GOODS EXPORTED AND IMPORTED AT THE INTER-DEPARTMENTAL STATION AT THE GATEWAY ON THE CUSTOMS DECLARATION FORM.

2. RESPONSIBILITIES OF CUSTOMS:

- THE CUSTOMS DECLARATION FORM IS PRINTED AND DISTRIBUTED TO INTER-DEPARTMENTAL STATIONS BY THE GENERAL DEPARTMENT OF CUSTOMS.

- CUSTOMS MUST KEEP A REGISTER OF DECLARATION FORMS WITH SERIAL NUMBERS FROM THE BEGINNING OF THE YEAR TO THE END OF THE YEAR (FROM JANUARY 1 TO DECEMBER 31). WHEN A DECLARATION FORM IS REGISTERED, THE CUSTOMS OFFICER MUST WRITE THE REGISTRATION NUMBER IN THE UPPER LEFT CORNER OF THE FORM AND STAMP "REGISTERED" IN THE MIDDLE OF THE FORM. THE CUSTOMS OFFICER MUST SIGN AND WRITE THEIR FULL NAME AND STAMP THE FORM WHEN ACCEPTING AND REGISTERING THE DECLARATION FORM.

- UPON RECEIVING THE DECLARATION FORM, CUSTOMS MUST CHECK WHETHER THE CONSIGNOR AND THE GOODS ARE PERMITTED TO ENGAGE IN SUBSIDARY BORDER TRADE. IF THEY ARE, THE DECLARATION FORM WILL BE ACCEPTED AND REGISTERED. IN CASE OF DISAGREEMENT REGARDING WHETHER THE GOODS ARE FOR SUBSIDARY OR MAIN BORDER TRADE, A DISCUSSION MUST BE HELD TO REACH AN AGREEMENT. IF NO AGREEMENT CAN BE REACHED, A RECORD MUST BE MADE AND THE HEAD OF THE INTER-DEPARTMENTAL STATION AT THE GATEWAY WILL MAKE THE DECISION AND BE RESPONSIBLE FOR IT. THEREAFTER, THE HEAD OF THE INTER-DEPARTMENTAL STATION WILL REPORT TO THE RELEVANT SECTORS TO DISCUSS AND REACH AN AGREEMENT ON THE SOLUTION. MEANWHILE, THE MEMBERS OF THE STATION MUST PROMPTLY REPORT TO THEIR SUPERIOR AUTHORITIES IN ACCORDANCE WITH THEIR FUNCTIONAL TASKS.

AFTER REGISTRATION, THE DECLARATION FORM IS TRANSFERRED TO THE INSPECTION DEPARTMENT.

- CUSTOMS INSPECTION PROCEDURES:

+ THE CONSIGNOR IS RESPONSIBLE FOR PRESENTING AND SELF-OPENING THEIR PACKAGES OF GOODS FOR CUSTOMS INSPECTION AT THE DESIGNATED LOCATION AS REQUESTED BY CUSTOMS;

+ CUSTOMS OFFICERS WILL INSPECT THE ACTUAL GOODS IN THE PRESENCE OF THE CONSIGNOR BY COMPARE THE ACTUAL GOODS WITH THE DECLARATION FORM REGARDING THE NAME, QUANTITY, WEIGHT, AND QUALITY OF THE GOODS. THE INSPECTOR MUST RECORD THE INSPECTION RESULTS AND SIGN AND WRITE THEIR FULL NAME ON ALL THREE DECLARATION FORMS, THEN NOTIFY THE CONSIGNOR TO CONFIRM THE INSPECTION RESULTS. BASED ON THE PRICE LIST ISSUED BY THE MINISTRY OF FINANCE OR THE LOCAL PRICE LIST APPROVED BY THE MINISTRY OF FINANCE AND THE GENERAL DEPARTMENT OF CUSTOMS, THE INSPECTOR WILL DETERMINE THE TAXABLE VALUE AND TAX RATE FOR EACH LOT OF GOODS ON THE DECLARATION FORM. FOR GOODS WITHOUT PRICES IN THE PRICE LIST, THE INSPECTOR WILL WORK WITH THE TAX OFFICER TO DETERMINE THE TAXABLE VALUE ACCORDING TO THE PRINCIPLES SET OUT IN DECISION NO. 340-TC/TCT OF AUGUST 1, 1992 OF THE MINISTRY OF FINANCE.

3. RESPONSIBILITIES OF THE TAX OFFICER:

a) CALCULATING TAX:

ALL DECLARATION FORMS AFTER INSPECTION ARE TRANSFERRED TO THE TAX OFFICER. THE TAX OFFICER MUST CHECK THE TAX RATE AND TAXABLE VALUE OF EACH ITEM BEFORE CALCULATING THE TAX; IF THE TAXABLE VALUE AND TAX RATE DO NOT MATCH THE REGULATIONS, THE TAX OFFICER MUST REPORT TO THE STATION HEAD TO ADJUST BEFORE CALCULATING THE TAX. THE TAX CALCULATION FORMULA IS AS FOLLOWS:

THE AMOUNT OF TAX TO BE PAID = THE QUANTITY OF GOODS ON THE DECLARATION FORM x UNIT PRICE x TAX RATE.

THE COLLECTION OF TAX MUST USE THE RECEIPT ISSUED BY THE MINISTRY OF FINANCE (GENERAL DEPARTMENT OF TAX). THE RECEIPT MUST BE WRITTEN USING CARBON PAPER TO WRITE ALL FIVE COPIES AT ONCE AND MUST INCLUDE ALL CONTENTS AS REQUIRED ON THE RECEIPT.

IN PRINCIPLE, THE QUANTITY AND VALUE OF GOODS SHOULD BE ENTERED ON THE TAX RECEIPT.

b) COLLECTING TAX:

ALL TAX RECEIPTS AND CUSTOMS DECLARATION FORMS MUST BE TRANSFERRED TO THE TAX COLLECTION DEPARTMENT. THE TAX COLLECTOR MUST ANNOUNCE THE AMOUNT OF TAX TO BE PAID TO THE CONSIGNOR BASED ON THE TAX AMOUNT DETERMINED ON THE RECEIPT BEFORE ALLOWING THE GOODS TO BE EXPORTED OR IMPORTED.

AFTER COLLECTING THE FULL AMOUNT OF TAX, THE CONSIGNOR MUST SIGN THE TAX RECEIPT WITH THEIR FULL NAME. THE TAX COLLECTOR MUST STAMP THE RECEIPT TO INDICATE THE PAYMENT. THE CONSIGNOR WILL KEEP ONE CUSTOMS DECLARATION FORM AND TWO TAX RECEIPTS (ONE RED COPY FOR THE TAX PAYER AND ONE BLUE COPY FOR THE BUYER).

4. THE PROCESS OF CREATING FILES AND SUMMARIZING TAX COLLECTION SITUATIONS.

AT THE END OF EACH DAY, THE TAX OFFICER AND CUSTOMS MUST CROSS-CHECK THE DATA BETWEEN THE CUSTOMS DECLARATION FORM AND THE TAX RECEIPT TO ENSURE ACCURACY. SIMULTANEOUSLY, THEY MUST CROSS-CHECK THE AMOUNT OF TAX COLLECTED WITH THE AMOUNT ENTERED ON THE TAX RECEIPT. IF THERE IS A DISCREPANCY THAT CANNOT BE RESOLVED, A RECORD MUST BE MADE WITH THE REASONS FOR THE DISCREPANCY AND THE SIGNATURES OF THE STATION HEAD AND OTHER RELEVANT PERSONNEL.

- Each consignment shall establish two sets of files, each set including one Customs declaration form and one tax receipt; the Customs authority retains one set and the Tax authority keeps one set.

- Each station must have regulations on timely depositing funds into the State Treasury, ensuring that no funds remain at the station for more than three days.

- Fully and promptly implement the periodic reporting system regarding quick reports, monthly, quarterly, and annual reports as prescribed by the Tax and Customs authorities.

- Maintain accounting and statistical record books at the collection station according to the prescribed forms.

III. IMPLEMENTATION

1. The Tax and Customs sectors are responsible for ensuring their subordinate units fully comply with the implementation of this Circular.

2. This Circular takes effect from the date of signature; all previous regulations of both sectors that conflict with this Circular are hereby abolished.

3. In case of difficulties during implementation, stations shall report to the Provincial Tax Department and Customs Office for consolidation and recommendation to the Ministry of Finance (General Department of Taxation) and General Customs Department for timely amendments and supplements.