Decree No. 68/2016/NĐ-CP on conditions for operating duty-free goods, warehouses, customs clearance locations, assembly points, inspection, and supervision sites.

 DECREE

REGULATIONS ON CONDITIONS FOR OPERATING TAX-FREE GOODS, WAREHOUSES, CUSTOMS PROCEDURE LOCATIONS, CONCENTRATION, INSPECTION AND SUPERVISION

Chapter on Government Organization Law dated June 19, 2015;

On the basis of Customs Law dated June 23, 2014;

On the basis of Investment Law dated November 26, 2014;

On the basis of The Government issues this Decree to provide detailed regulations on conditions for recognizing, expanding, narrowing, relocating, transferring ownership, suspending, and terminating operations of tax-free goods, warehouses, customs procedure locations, concentration, inspection, and supervision.

At the proposal of the Minister of Finance;

1. This Decree provides detailed regulations on conditions for recognizing, expanding, narrowing, relocating, transferring ownership, suspending, and terminating operations of tax-free goods, warehouses, customs procedure locations, concentration, inspection, and supervision.

PART I
GENERAL PROVISIONS

Article 1. Scope of Regulation

2. Tax-free shops, warehouses, customs procedure locations, concentration, inspection, and supervision areas specified in Clause 1 of this Article, in addition to meeting the conditions stipulated in this Decree, must also comply with other relevant laws.

1. Organizations and individuals related to operating, expanding, narrowing, relocating, transferring ownership, suspending, and terminating operations of tax-free goods, warehouses, customs procedure locations, concentration, inspection, and supervision have rights and obligations.

Article 2. Applicability

1. A tax-free shop is a location for storing and selling imported goods and domestically produced goods to beneficiaries entitled to tax exemptions under the law.

2. Customs authorities, customs officers.

3. Other state agencies in their coordination in managing customs affairs.

Article 3. Explanation of Terms

In this Decree, the following terms are understood as follows:

2. The isolation zone of international seaports, international civil airports, international railway border stations, and international land border gates (hereinafter referred to as the isolation zone) is an area separated and protected from the border gate area after the exit clearance procedures.

3. The restricted area of international civil airports (hereinafter referred to as the restricted area) is an area separated and protected from the international terminal area after the entry clearance procedures and before the customs procedures.

4. Fuel storage area is a zone for storing imported and exported fuel, temporarily imported and re-exported fuel.

5. Extended air cargo warehouse is an area outside the border gate for storing export and import goods transported by air, subject to customs inspection and supervision.

6. Container Freight Station (CFS) is a warehouse area used for consolidating, segregating, packaging, arranging, combining, and transferring ownership of export and import goods of multiple shippers sharing a container.

7. Concentration, inspection, and supervision location for concentrated export and import goods is an area for concentrating, inspecting, and supervising customs for export and import goods; it has the function of storing and preserving export and import goods awaiting customs procedures.

Chapter II
SPECIFIC PROVISIONS

Section 1Article 4. Conditions for Issuing a Certificate of Eligibility for Operating Tax-Free Goods

1. Location of tax-free shops

a) Within the isolation zone of international land border gates, international railway border stations, and Class 1 seaports; within the isolation and restricted zones of international civil airports;

b) Inland;

c) On aircraft operating international flights of airlines established and operating according to Vietnamese law;

d) Storage areas for tax-free goods located together with tax-free shops or within the isolation and restricted zones or within the customs operation area outside the border gate as prescribed in Article 8 of Decree No. 01/2015/NĐ-CP dated January 2, 2015 of the Government detailing the scope of customs operation areas and responsibilities in preventing and combating smuggling and illegal transportation of goods across borders.

b) Meeting requirements for data backup, extraction for reporting, statistics, storage, and direct network connection with the managing customs authority.

3. Possess camera systems meeting the following criteria:

b) Camera image data is retained for a minimum of 12 months;

c) Camera systems are directly connected to the managing customs authority.

The Director of the General Department of Customs shall issue standards for data exchange between the customs authority and enterprises operating tax-free sales regarding the management software for goods entering and leaving, and the camera surveillance system.

The Director of the General Department of Customs shall issue data exchange standards between customs authorities and duty-free business enterprises regarding software for managing goods entering and exiting, surveillance camera systems (including warehouses, yards, and auxiliary facilities), wherein the warehouse storage area must have an area of at least 1,000 m².

1. A request for issuing a certificate of eligibility to operate duty-free goods business according to Model No. 01 attached hereto: one original copy.

2. Business registration certificate or investment registration certificate: one copy.

3. Design layout of the duty-free shop area and the duty-free goods storage warehouse: one copy.

4. Documentation describing the management software program for duty-free goods business: one original copy.

5. Internal management procedures of the enterprise concerning import, export, storage, inventory of goods at the duty-free goods storage warehouse, delivery of goods from the duty-free goods storage warehouse to the duty-free shop or aircraft, management of sales at the duty-free shop or aircraft, and handling of duty-free sales proceeds: one original copy.

6. Documents proving the right to use the location of the duty-free shop and the duty-free goods storage warehouse: one copy.

7. Fire prevention and firefighting eligibility certificate issued by the police agency (except in cases where it is located within an area already recognized as having fire prevention and firefighting eligibility): one copy.

8. Operating regulations: one original copy.

Article 6. Procedure for Issuing a Certificate of Eligibility to Operate Duty-Free Goods Business

1. The enterprise submits the application documents for issuing a certificate of eligibility to operate duty-free goods business through postal service, direct submission, or via the electronic data processing system of the customs authority to the General Department of Customs.

2. Within ten working days (counted from the date of receipt of the postal service for applications submitted through postal service or from the date the staff receives the application documents from the enterprise; or the time recorded by the electronic system of the customs authority) from the date of receiving all application documents from the enterprise, the General Department of Customs completes the review of the documents and the actual inspection of the duty-free shop and the duty-free goods storage warehouse. Upon completion of the inspection, the customs authority and the enterprise sign a record of the inspection contents.

3. Within five working days from the date of completing the review of the documents and the actual inspection of the duty-free shop and the duty-free goods storage warehouse, the Director of the General Department of Customs issues a certificate of eligibility to operate duty-free goods business or provides a written response to the enterprise if the conditions are not met as prescribed.

4. In cases where the application documents are incomplete, within five working days from the date of receiving the application documents from the enterprise, the General Department of Customs will issue a written notice and request the enterprise to supplement the documents. If there is no written response from the enterprise within thirty working days from the date of sending the notice, the General Department of Customs has the right to cancel the application documents.

Article 7. Suspension of Duty-Free Goods Business Operations

a) At the enterprise's request to suspend operations;

b) Cases falling under the category of revocation of the certificate of eligibility to operate duty-free goods business as stipulated in Clause 1, Article 8 of this Decree.

a) The provincial or municipal customs office issues a notice to suspend duty-free goods business operations.

b) After issuing the notice to suspend duty-free goods business operations, the provincial or municipal customs office conducts inspections and confirms the quantity of goods remaining in the duty-free shop and the duty-free goods storage warehouse.

c) For cases involving the revocation of the certificate of eligibility to operate duty-free goods business as stipulated in Clause 1, Article 8 of this Decree, liquidation of temporary import declarations shall be carried out within thirty working days from the date of issuance of the notice to suspend duty-free goods business operations.

4. During the suspension period of duty-free goods business operations, if the enterprise wishes to resume operations, it must notify the provincial or municipal customs office in writing according to Model No. 02 attached hereto.

5. The suspension period of duty-free goods business operations shall not exceed six months from the date of issuance of the notice to suspend operations.

Article 8. Revocation of the Certificate of Eligibility for Duty-Free Goods Business

1. Circumstances for revoking the Certificate of Eligibility for Duty-Free Goods Business:

a) At the enterprise's request to terminate duty-free goods business operations;

b) Exceeding six months from the date of issuance of the Certificate of Eligibility for Duty-Free Goods Business without the enterprise putting the duty-free shop into operation;

c) The duty-free shop and duty-free goods storage warehouse failing to maintain conditions as stipulated in Article 4 of this Decree;

d) Within twelve months, the enterprise committing three administrative violations related to customs in duty-free goods business operations and being administratively penalized with fines exceeding the authority of the Customs Sub-Department Director;

a) The General Department of Customs issues a document assigning the Provincial/City Customs Department to conduct an inventory check of remaining goods and temporarily imported goods for liquidation.

b) The Provincial/City Customs Department reports the results of the liquidation to the General Department of Customs within thirty working days from the date of receipt of the assignment document from the General Department of Customs.

c) Within five working days from receiving the report from the Provincial/City Customs Department, the General Department of Customs Director issues a decision to revoke the Certificate of Eligibility for Duty-Free Goods Business.

Article 9. Expanding, Reducing, Moving, and Transferring Ownership of Duty-Free Shops

1. Documents for expanding, reducing, or moving duty-free shops:

a) A proposal for expansion, reduction, or movement according to Model No. 01 attached to this Decree: one original copy.

b) Diagram of the expanded, reduced, or moved area: one copy.

2. Documents for transferring ownership of duty-free shops:

In addition to the documents prescribed in Article 5 of this Decree, the enterprise receiving the transfer of ownership of the duty-free shop shall submit the following additional documents:

a) An application for transferring ownership according to Model No. 01 attached to this Decree: one original copy;

b) Contract related to the transfer of ownership: one copy.

3. Procedures for expanding, reducing, moving, and transferring ownership of duty-free shops shall be carried out as prescribed for issuing the Certificate of Eligibility for Duty-Free Goods Business under Article 6 of this Decree.

Section 2

BONED WAREHOUSE

1. The proposed bonded warehouse area must be located within areas specified in Clause 1, Article 62 of the Customs Law; areas approved by competent authorities in the development plan for logistics centers nationwide; investment incentive areas; areas serving the export of agricultural, forestry, and aquatic products produced in concentrated areas.

2. The bonded warehouse must be separated from surrounding areas by a fence system that meets the requirements for regular inspection and supervision by customs authorities, except for warehouses within port and border gate areas already isolated by fences.

3. Ensure working conditions for customs authorities such as office space, inspection areas, installation sites for customs inspection equipment, and storage facilities for seized items as prescribed by the Ministry of Finance.

4. The bonded warehouse must have a minimum area of 5,000 square meters (including warehouse, yard, and auxiliary structures), of which the storage area must have at least 1,000 square meters. For specialized bonded warehouses for storing specific types of goods requiring special storage conditions, the minimum area must be 1,000 square meters or the minimum volume capacity must be 1,000 cubic meters. Specialized bonded warehouses within port areas must have a minimum area of 1,000 square meters. Specialized bonded yards must have a minimum area of 10,000 square meters, without requiring warehouse area.² (including warehouses, yards, and ancillary structures), of which the storage area must have an area of at least 1,000 m². For specialized bonded warehouses used to store one or several types of goods with special storage requirements, they must have a minimum area of 1,000 m² or a minimum storage volume of 1,000 m³. Specialized bonded warehouses located within port areas must have a minimum area of 1,000 m². Specialized bonded yards must have a minimum area of 10,000 m², without requiring a warehouse area.² trở lên. Đối với kho ngoại quan chuyên dùng để lưu giữ một hoặc một số chủng loại hàng hóa có yêu cầu bảo quản đặc biệt thì phải có diện tích tối thiểu 1.000 m² hoặc thể tích chứa hàng tối thiểu 1.000 m³. Riêng đối với kho ngoại quan nằm trong khu vực cảng phải có diện tích tối thiểu 1.000 m². Bãi ngoại quan chuyên dùng phải có diện tích tối thiểu 10.000 m², không yêu cầu diện tích kho.

5. Have software meeting the following criteria:

a) Managing duty-free goods entering, exiting, stored, and remaining in the bonded warehouse by individual items, purchasing entities, and customs declarations;

3. Possess camera systems meeting the following criteria:

6. Have camera systems meeting the following criteria:

a) Able to monitor all positions within the bonded warehouse. Images can be monitored at all times of the day (24/24 hours).

c) Camera systems are directly connected to the managing customs authority.

The Director of the General Department of Customs shall issue standards for data exchange between the customs authority and enterprises operating tax-free sales regarding the management software for goods entering and leaving, and the camera surveillance system.

The General Department of Customs Director promulgates standards for data exchange between customs authorities and enterprises operating bonded warehouses regarding the management software for goods entering and exiting, and the surveillance camera system.

1. A request for recognition according to Model No. 01 attached as Appendix to this Decree: 01 original copy.

2. Business registration certificate or investment registration certificate: one copy.

3. A schematic design of the warehouse area showing clearly the boundary lines separating it from the outside, the positions of storage areas, internal transportation systems, security measures, warehouse offices, and customs workplace: 01 copy.

4. Documentation describing the software management program for bonded warehouses: 01 original copy.

5. Documents proving the right to use the bonded warehouse: 01 copy.

6. Certificate of compliance with fire prevention and firefighting conditions issued by the police authority: 01 copy.

7. Operating regulations: 01 original copy.

Article 12. Procedure for recognition of bonded warehouses

1. The enterprise submits the application dossier through postal service, direct submission, or via the electronic information receiving system of the customs authority to the General Department of Customs.

2. Within 10 working days from the date of receipt of the complete dossier from the enterprise, the General Department of Customs completes the dossier review and on-site inspection of the warehouse and yard. Upon completion of the inspection, the customs authority and the enterprise sign the record of inspection contents.

3. Within 05 working days from the date of completing the dossier review and on-site inspection, the Director of the General Department of Customs issues a decision recognizing the bonded warehouse or sends a reply to the enterprise if the conditions are not met as prescribed.

4. In cases where the application documents are incomplete, within five working days from the date of receiving the application documents from the enterprise, the General Department of Customs will issue a written notice and request the enterprise to supplement the documents. If there is no written response from the enterprise within thirty working days from the date of sending the notice, the General Department of Customs has the right to cancel the application documents.

Article 13. Expansion, reduction, relocation, and transfer of ownership of bonded warehouses

1. In cases where there is a need to expand, reduce the area, relocate, or transfer ownership of the bonded warehouse and meet the conditions stipulated in Article 10 of this Decree, the enterprise prepares a dossier to submit to the General Department of Customs, including:

a) A request for expansion, reduction, relocation, or transfer of ownership: 01 original copy;

b) A schematic diagram of the expanded, reduced, relocated, or transferred ownership area: 01 copy;

d) Contracts related to the transfer of ownership: 01 copy.

2. The procedure for expansion, reduction, relocation, and transfer of ownership shall be carried out in accordance with the recognition procedure for bonded warehouses as prescribed in Article 12 of this Decree.

Article 14. Suspension of operations of bonded warehouses

Within 05 working days from the date of receipt of the enterprise's request for suspension of operations of the bonded warehouse, the Provincial/City Customs Office conducts inspections, confirms the quantity of goods stored in the warehouse, and issues a notice of suspension of operations of the bonded warehouse.

4. During the suspension period specified in Clause 1 of this Article, the customs authority does not process customs procedures for goods sent into the warehouse; monitors and handles the quantity of goods stored in the bonded warehouse in accordance with the law.

5. At least 05 working days before the end of the suspension period, the enterprise submits a report on resuming operations or terminating the operations of the bonded warehouse.

Article 15. Termination of bonded warehouse operations

1. Cases for terminating bonded warehouse operations:

a) The enterprise fails to maintain the conditions stipulated in Article 10 of this Decree or terminates the operation of the previous warehouse owner in the case of transferring ownership of the bonded warehouse;

b) The enterprise submits a document requesting termination of bonded warehouse operations to the General Department of Customs;

c) Exceeding the six-month period from the date of the decision recognizing the bonded warehouse but the enterprise does not commence operations with the bonded warehouse;

d) Exceeding the temporary suspension period specified in Clause 1, Article 14 of this Decree but the enterprise does not submit a notification of resuming operations;

đ) Within twelve months, the enterprise commits three administrative violations related to customs activities concerning the bonded warehouse operations and is penalized with fines exceeding the authority of the Head of the Customs Sub-department;

2. Procedures for terminating bonded warehouse operations:

a) The Provincial/City Customs Department conducts a full inspection and inventory of all remaining goods in the bonded warehouse; reports and proposes to the General Department of Customs to consider terminating operations;

b) Within five working days from receiving the report from the Provincial/City Customs Department, the Director of the General Department of Customs considers and issues a decision to terminate operations of the bonded warehouse.

Section 3

CUSTOMS DUTY GUARANTEE WAREHOUSE

Article 16. Conditions for Recognizing Customs Duty Guarantee Warehouse

1. An enterprise will be recognized as a priority enterprise eligible for a customs duty guarantee warehouse if it meets the following conditions:

a) Having accounting systems and information technology applications according to the standards set by the state management agency to monitor and manage imported, exported, stored, and remaining goods in the warehouse;

b) Located within the production premises of the enterprise, separated from areas storing non-duty-free raw materials and supplies, equipped with camera surveillance systems meeting the data exchange standards of the customs authority to monitor goods entering and leaving the customs duty guarantee warehouse.

2. An enterprise producing export goods with export turnover of at least 40 million USD will be recognized as a customs duty guarantee warehouse, in addition to the conditions stipulated in Clause 1 of this Article, it must also meet the following conditions:

a) Engaging in continuous export activities for at least two years without violating customs laws and tax laws;

b) Adhering to accounting and statistical laws;

c) Implementing bank transactions in accordance with the provisions of the law.

Article 17. Documents for Requesting Recognition of Customs Duty Guarantee Warehouse

1. A request document for recognition of the customs duty guarantee warehouse according to Model No. 01 attached to this Decree: One original copy.

2. Design layout of the customs duty guarantee warehouse area: One copy.

Article 18. Procedures for Recognizing Customs Duty Guarantee Warehouse

1. The enterprise submits the application documents directly, sends them via postal service, or through the electronic information reception system of the customs authority to the General Department of Customs.

2. Within ten working days from the date of receipt of complete documents from the enterprise, the General Department of Customs completes the review of the documents and on-site inspection of the warehouse. Upon completion of the inspection, the customs authority and the enterprise sign a record of the inspection results.

3. Within five working days from the date of completing the document and on-site inspection, the Director of the General Department of Customs issues a decision recognizing the customs duty guarantee warehouse or provides a response document to the enterprise if it does not meet the prescribed conditions.

4. In cases where the application documents are incomplete, within five working days from the date of receiving the application documents from the enterprise, the General Department of Customs will issue a written notice and request the enterprise to supplement the documents. If there is no written response from the enterprise within thirty working days from the date of sending the notice, the General Department of Customs has the right to cancel the application documents.

Section 4

COLLECTING POINT FOR SMALL SHIPMENTS

Article 19. Conditions for Recognizing Collection Points for Small Quantities of Goods

1. Collection points for small quantities of goods must be located within the area specified in Clause 1 of Article 62 of the Customs Law.

2. The collection point for small quantities of goods must have a minimum warehouse area of 1,000 square meters, excluding parking areas and auxiliary facilities, and must be surrounded by a fence separating it from surrounding areas.² Excluding yards and auxiliary facilities, it must be surrounded by a fence separating it from surrounding areas.

a) Managing imported, exported, stored, and remaining goods at the collection point for small quantities of goods by individual items, purchasing entities, and customs declarations.

3. Possess camera systems meeting the following criteria:

5. Have a camera system meeting the following criteria:

c) Camera systems are directly connected to the managing customs authority.

The Director of the General Department of Customs shall issue standards for data exchange between the customs authority and enterprises operating tax-free sales regarding the management software for goods entering and leaving, and the camera surveillance system.

a) Able to monitor all positions within the collection point for small quantities of goods. Images captured are available at all times of the day (24/24 hours).

1. A request for recognition according to Model No. 01 attached as Appendix to this Decree: 01 original copy.

2. Business registration certificate or investment registration certificate: one copy.

3. A design diagram of the collection point for small quantities of goods showing clearly the boundary separating it from the outside, the locations of warehouses, internal transportation systems, security measures, office spaces, and customs work areas: one copy.

4. Documentation describing the program of the management software for the collection point for small quantities of goods: one original.

5. Documents proving the right to use the collection point: one copy.

6. Certificate of compliance with fire prevention and firefighting conditions issued by the police authority: 01 copy.

7. Operating regulations: 01 original copy.

Article 21. Procedures for Recognizing, Expanding, Reducing, Moving, Transferring Ownership, Temporarily Suspending, and Terminating Operations of Collection Points for Small Quantities of Goods

The procedures for recognizing, expanding, reducing, moving, transferring ownership, temporarily suspending, and terminating operations of collection points for small quantities of goods shall be carried out similarly to those for bonded warehouses as stipulated in Section 2 of Chapter II of this Decree.

Section 5

PETROL AND OIL WAREHOUSE

1. Enterprises requesting confirmation that petrol and oil warehouses meet customs inspection and supervision requirements are principal traders as defined in Government Decree No. 83/2014/NĐ-CP dated September 3, 2014 on petroleum trading.

2. The petrol and oil warehouse belongs to the enterprise or is jointly owned or leased by traders engaged in petroleum services in accordance with laws on petroleum trading.

3. Have software meeting the following criteria:

a) Managing and tracking petrol and oil imports, exports, storage, and inventory in the warehouse.

b) Directly connecting data on petrol and oil entering and leaving the warehouse with the customs authority managing the petrol and oil warehouse.

4. Have a camera system meeting the following criteria:

a) Able to monitor all positions within the petrol and oil warehouse. Images captured are available at all times of the day (24/24 hours).

b) Camera image data is retained for a minimum of 12 months.

The Director of the General Department of Customs shall issue standards for data exchange between the customs authority and enterprises operating tax-free sales regarding the management software for goods entering and leaving, and the camera surveillance system.

The Director General of the General Department of Customs shall issue data exchange standards between customs authorities and traders engaged in petroleum services regarding the management software for petrol and oil entering and leaving the warehouse and the monitoring camera system.

1. A request for confirmation of meeting conditions for inspection and supervision by customs authorities according to Model No. 01 attached hereto: one original copy.

2. A design layout of the warehouse area showing clearly the boundary lines separating it from the outside, the positions of warehouses, tanks, and storage pools: one copy.

3. Documentation describing the software management program for fuel storage: one original copy.

4. Documents proving the right to use the fuel storage warehouse: one copy.

5. Fire prevention and firefighting qualification certificate issued by the police authority: one copy.

6. Operating regulations: one original copy.

Article 24. Procedure for confirming fuel storage warehouses meeting conditions for inspection and supervision by customs authorities

1. The enterprise submits the application dossier for confirmation of meeting conditions for inspection and supervision to the General Department of Customs.

2. Within ten working days from the date of receipt of the complete dossier from the enterprise, the General Department of Customs completes the review of the dossier and the actual inspection of the fuel storage warehouse. Upon completion of the inspection, the customs authority and the enterprise sign a record of the inspection results.

3. Within five working days from the date of completing the dossier and actual inspection of the fuel storage warehouse, the Director of the General Department of Customs issues a confirmation document of meeting conditions for inspection and supervision by customs authorities or responds in writing to the enterprise if the conditions have not been met as prescribed.

4. In cases where the application documents are incomplete, within five working days from the date of receiving the application documents from the enterprise, the General Department of Customs will issue a written notice and request the enterprise to supplement the documents. If there is no written response from the enterprise within thirty working days from the date of sending the notice, the General Department of Customs has the right to cancel the application documents.

5. In cases where the fuel storage warehouse is expanded, reduced, relocated, or transferred ownership, the procedure for confirming the fuel storage warehouse meeting conditions for inspection and supervision by customs authorities shall be carried out in accordance with Articles 22 and 23 and Clauses 1, 2, 3, and 4 of Article 24 of this Decree.

Chapter 6

NON-EXTENDED WAREHOUSE

Article 25. Conditions for recognizing non-extended warehouses

1. Non-extended warehouses can be recognized in areas adjacent to the following zones:

a) Areas near international civilian airports;

b) Industrial zones, high-tech zones, export processing zones;

c) Zones that have been approved by competent authorities in the planning for the development of logistics center systems nationwide.

These zones must be within 50 kilometers of international civilian airports.

a) Managing imported, exported, stored, and remaining goods in the warehouse.

3. Possess camera systems meeting the following criteria:

a) Being able to observe all positions within the warehouse. Images must cover all times of the day (24/24 hours).

b) Camera image data is retained for a minimum of 12 months.

The Director of the General Department of Customs shall issue standards for data exchange between the customs authority and enterprises operating tax-free sales regarding the management software for goods entering and leaving, and the camera surveillance system.

The Director of the General Department of Customs promulgates standards for data exchange between customs authorities and the owner of non-extended warehouses regarding the software managing goods entry and exit, and the surveillance camera system.

1. Application for recognition according to Model No. 01 attached to this Decree: 01 original copy.

2. Business registration certificate or investment certificate: 01 copy.

3. Diagram showing the layout of the warehouse area clearly indicating the boundary with the outside, positions of warehouses, internal transportation system, security, warehouse office, and customs workplace: 01 copy.

4. Documentation describing the software management program for non-pass through warehouses: 01 original copy.

5. Documents proving the right to use the warehouse: 01 copy.

6. Certificate of compliance with fire prevention and firefighting conditions issued by the police authority: 01 copy.

7. Operating regulations: 01 original copy.

8. Lease contracts for warehouses or storage areas for export and import goods within the international airport area (in cases where the warehouse owner leases the warehouse or storage area).

Article 27. Procedures for Recognition of Non-Pass Through Warehouses

1. Enterprises submit the application documents directly, send via postal service, or through the electronic information receiving system of the customs authority to the General Department of Customs.

2. Within 10 working days from the date of receipt of all enterprise documents, the General Department of Customs will coordinate with the Ministry of Transport, People's Committee of provinces and centrally governed cities to complete the review of documents and on-site inspection of the warehouse. Upon completion of the inspection, the customs authority and the enterprise sign the record of inspection results.

3. Within 15 working days from the date of completing the review of documents and on-site inspection of the warehouse, based on the opinions of the Ministry of Transport and the People's Committee of provinces and centrally governed cities, the Director of the General Department of Customs issues a decision recognizing the non-pass through warehouse or sends a reply to the enterprise if it does not meet the conditions stipulated.

Article 28. Expansion, Reduction, Relocation, and Transfer of Ownership of Non-Pass Through Warehouses

The procedures for expanding, reducing, relocating, and transferring ownership of non-pass through warehouses are carried out similarly to those for bonded warehouses as stipulated in Section 2 of Chapter II of this Decree.

Article 29. Suspension of Operations of Non-Pass Through Warehouses

1. Suspension of operations of non-pass through warehouses when enterprises submit a request for suspension of operations. The suspension period shall not exceed six months.

2. The Provincial Customs Office issues a notice suspending operations of non-pass through warehouses.

3. Procedure for suspension of operations:

Within five working days from the date of receipt of the enterprise's request for suspension of operations of non-pass through warehouses, the Provincial Customs Office conducts inspections, confirms the quantity of goods stored in the warehouse, and issues a notice suspending operations of non-pass through warehouses.

4. During the suspension period, the customs authority does not process customs procedures for goods entering the warehouse; monitors and handles the quantity of goods stored in the warehouse according to the provisions of the law.

5. At least five working days before the end of the suspension period, the enterprise submits a report on resuming operations or ceasing operations of non-pass through warehouses.

6. During the suspension period specified in Clause 1 of this Article, if the enterprise wishes to resume operations, it must notify the Provincial Customs Office in writing according to Model No. 02 attached to this Decree.

Article 30. Termination of Operations of Non-Pass Through Warehouses

1. Cases of termination of operations of non-pass through warehouses:

a) The enterprise fails to maintain the conditions stipulated in Article 25 of this Decree, or ceases operations of the previous warehouse owner in cases of transferring ownership of non-pass through warehouses;

b) The enterprise submits a written request to terminate operations to the General Department of Customs;

c) More than six months have passed since the establishment decision but the enterprise has not put the non-pass through warehouse into operation;

d) Exceeding the suspension period without submitting a written notification of resuming operations;

đ) In twelve months, the enterprise commits administrative violations related to the operation of non-pass through warehouses three times and is penalized with fines exceeding the authority of the Head of the Customs Sub-department;

2. Procedures for terminating operations of non-pass through warehouses:

a) The Provincial Customs Office conducts inspections and liquidates all remaining goods in the non-pass through warehouse; reports and proposes to the General Department of Customs to consider terminating operations.

b) Within fifteen working days from the date of receipt of the Provincial Customs Office's report, the Director of the General Department of Customs considers and issues a decision to terminate operations of the non-pass through warehouse.

Chapter III
CUSTOMS PROCEDURE, ASSEMBLING, INSPECTION, AND SUPERVISION LOCATIONS

Section 1

CUSTOMS PROCEDURE LOCATION AT DOMESTIC CONTAINER PORTS FOR EXPORT AND IMPORT GOODS

1. Must have a minimum area of 50,000 square meters.² or more.

a) Managing imported, exported, stored, and remaining goods in tax-free shops by item, buyer category, and customs declaration;

a) Managing imported, exported, stored, and remaining goods in the place for customs procedures at an inland port according to each commodity, purchasing entity, and customs declaration form;

3. Possess camera systems meeting the following criteria:

a) Monitoring all positions within the tax-free goods storage area and tax-free shops. Images can be observed at all times (24/24 hours);

a) Being able to observe all positions within the place for customs procedures at an inland port. Observation images must be available at all times during the day (24/24 hours);

c) Camera systems are directly connected to the managing customs authority.

The Director of the General Department of Customs shall issue standards for data exchange between the customs authority and enterprises operating tax-free sales regarding the management software for goods entering and leaving, and the camera surveillance system.

The Director General of the General Department of Customs shall issue data exchange standards between the customs authority and businesses operating places for customs procedures at inland ports regarding software for managing goods entry and exit, and the surveillance camera system.

1. A request for recognition according to Model No. 01 attached as Appendix to this Decree: 01 original copy.

2. Business registration certificate or investment certificate: 01 copy.

3. Design layout of the area of the place for customs procedures at an inland port clearly showing the boundary separating it from the outside, the locations of warehouses, export cargo collection points, import cargo collection points, container vehicle collection points, physical inspection areas, security, warehouse office, and customs workplace: 01 copy.

4. Documentation describing the program of the software for managing the place for customs procedures at an inland port: 01 original.

5. Documents proving the right to use the collection point: one copy.

6. Certificate of compliance with fire prevention and firefighting conditions issued by the police authority: 01 copy.

7. Operating regulations: 01 original copy.

Article 33. Procedure for Recognizing a Place for Customs Procedures at an Inland Port

1. Businesses submit the application dossier directly, send via postal service, or through the electronic information reception system of the customs authority to the General Department of Customs.

2. Within ten working days from the date of receiving the complete dossier from the business, the General Department of Customs completes the review of the dossier and the actual site of the place for customs procedures at an inland port. Upon completion of the review, the customs authority and the business sign a record of the inspection content.

3. Within five working days from the date of completing the dossier and actual site review of the place for customs procedures at an inland port, the General Department of Customs submits to the Ministry of Finance for a decision recognizing the place for customs procedures at an inland port or sends a reply to the business if the conditions are not met as prescribed.

4. In cases where the application documents are incomplete, within five working days from the date of receiving the application documents from the enterprise, the General Department of Customs will issue a written notice and request the enterprise to supplement the documents. If there is no written response from the enterprise within thirty working days from the date of sending the notice, the General Department of Customs has the right to cancel the application documents.

Article 34. Expanding, Reducing, Moving, Transferring Ownership, and Temporarily Suspending Operations of a Place for Customs Procedures at an Inland Port

1. In cases where there is a need to expand, reduce, move, transfer ownership, or temporarily suspend operations of a place for customs procedures at an inland port, the business prepares a dossier to submit to the General Department of Customs, including:

a) A request for expansion, reduction, movement, transfer of ownership, or temporary suspension of operations: 01 original;

b) A schematic diagram of the expanded, reduced, relocated, or transferred ownership area: 01 copy;

d) Contracts related to the transfer of ownership: 01 copy.

2. The procedure and process for expansion, reduction, movement, transfer of ownership, and temporary suspension of operations are carried out similarly to those for bonded warehouses as stipulated in Section 2, Chapter II of this Decree. However, the expansion, reduction, and temporary suspension of operations of a place for customs procedures at an inland port are decided by the Director General of the General Department of Customs.

3. In cases of moving or transferring ownership of a place for customs procedures at an inland port, based on the business's request, the General Department of Customs reports to the Ministry of Finance for consideration to issue a decision terminating the operation of the place according to the previous decision, while issuing a decision recognizing and transferring ownership of the place if the new owner meets the requirements set forth in Article 31 of this Decree.

Article 35. Termination of operations at inland customs clearance locations

a) The inland customs clearance location does not maintain the conditions stipulated in Article 31 of this Decree;

b) The enterprise submits a document requesting termination of operations;

c) More than six months have passed since the decision recognizing the location was issued but the enterprise has not put the inland customs clearance location into operation;

d) Exceeding the suspension period without submitting a written notification of resuming operations;

d) Within twelve months, the enterprise commits three administrative violations related to the activities of the inland customs clearance location and is administratively penalized with fines exceeding the authority of the Customs Sub-Department Director to impose penalties;

2. The General Department of Customs shall inspect and submit to the Ministry of Finance for a decision to terminate operations of an inland customs clearance location falling under any of the circumstances specified in Clause 1 of this Article.

Section 2

CONCENTRATED GOODS ASSEMBLING, INSPECTION AND SURVEILLANCE LOCATIONS FOR EXPORT AND IMPORT; EXPRESS DELIVERY AND POSTAL GOODS LOCATIONS

1. Position

a) Concentrated goods assembling, inspection and surveillance locations for export and import are located in border gate areas, industrial zones, and border economic zones;

b) Concentrated goods assembling, inspection and surveillance locations for express delivery goods are within the planning area of international airports as prescribed by law;

c) Concentrated goods assembling, inspection and surveillance locations for export and import in border areas are within border economic zones or border gate areas. If outside border economic zones, they must be no more than 10 kilometers from the border gate area.

2. Area

a) Concentrated goods assembling, inspection and surveillance locations for export and import have a minimum area of 10,000 square meters;²;

b) Concentrated goods assembling, inspection and surveillance locations for express delivery goods have a minimum area of 5,000 square meters;²; concentrated goods assembling, inspection and surveillance locations for postal goods have a minimum area of 1,000 square meters;²;

c) Concentrated goods assembling, inspection and surveillance locations for export and import in border areas have a minimum area of 5,000 square meters;².

3. Infrastructure and Equipment

a) The location is separated from surrounding areas by a fence system that meets the requirements for regular inspections and surveillance by customs authorities, except for locations within border gates or ports which already have separate fences;

b) Ensure working conditions for customs authorities such as office space, inspection areas, installation sites for customs inspection equipment, and warehouses for storing contraband according to regulations of the Ministry of Finance;

c) Have software meeting the following criteria:

- Managing imported, exported, stored, and remaining goods in the location;

- Meeting data backup and extraction requirements for reporting, statistics, storage purposes, and being directly connected to the managing customs authority;

d) Have camera systems meeting the following criteria:

- Able to monitor all positions within the location. Images can be monitored at all times of the day (24/24 hours);

- Camera image data is retained for a minimum of 12 months;

- The camera system is directly connected to the managing customs authority;

The General Department of Customs Head shall issue standards for data exchange between customs authorities and enterprises operating these locations regarding the management software for goods entering and exiting, and the surveillance camera system.

1. A request for recognition according to Model No. 01 attached as Appendix to this Decree: 01 original copy.

2. Business registration certificate or investment certificate: 01 copy.

3. Design layout of the area for the location of the concentration of export and import goods inspection and supervision; express delivery and postal goods location clearly showing the boundary with the outside, positions of warehouses, export goods storage areas, import goods storage areas, transportation vehicle storage areas, actual inspection areas, security, warehouse office, and customs workplace: 01 copy.

4. Documentation describing the software management program for goods entering and exiting the location: 01 original.

5. Documents proving the right to use the collection point: one copy.

6. Certificate of compliance with fire prevention and firefighting conditions issued by the police authority: 01 copy.

7. Operating regulations: 01 original copy.

8. Text of the airport master plan approved by the competent authority for the recognition of locations for the concentration of express delivery goods inspection and supervision: 01 copy.

9. Postal license or notification of postal operation issued by the competent authority according to the law on postal services for the recognition of locations for the concentration of postal goods inspection and supervision: 01 copy.

The procedures for recognizing, expanding, reducing, relocating, transferring ownership rights, suspending, and terminating operations at locations for the concentration of export and import goods inspection and supervision, express delivery and postal goods locations shall be carried out similarly to those for bonded warehouses as stipulated in Section 2 Chapter II of this Decree.

Chapter IV
IMPLEMENTING PROVISIONS

Article 39. Effective date

1. This Decree takes effect from July 1, 2016.

2. Repeal Articles 82, 89, and 92 of Government Decree No. 08/2015/NĐ-CP dated January 21, 2015 detailing and providing implementation measures for the Law on Customs regarding customs procedures, inspections, supervision, and control.

3. Duty-free shops, warehouses, locations for customs procedures, concentration of goods inspection and supervision, express delivery and postal goods locations recognized and operating before the effective date of this Decree, the procedures for expansion, reduction, relocation, transfer of ownership rights, suspension, and termination of operations shall be implemented according to this Decree.

4. In cases established and operating before the effective date of this Decree but not meeting the conditions for recognition and confirmation as prescribed in this Decree, organizations and individuals may continue their operations until July 1, 2017. After that period, the Provincial Customs Office will review and report to the competent authority to issue decisions to suspend or terminate operations according to regulations.

Article 40. Responsibilities for Implementing the Decree

1. The Ministry of Finance shall provide guidance on implementing the provisions assigned in the Decree.

2. Ministers, heads of ministerial-level agencies, heads of government agencies, and chairpersons of provincial people's committees directly under the central government are responsible for implementing this Decree./.

 

 

ANNEX

MODEL FOR CUSTOMS MANAGEMENT OF DUTY-FREE BUSINESS OPERATIONS, WAREHOUSES, CUSTOMS PROCEDURE LOCATIONS, CONCENTRATION, INSPECTION AND SUPERVISION LOCATIONS
(Attached to Government Decree No. 68/2016/NĐ-CP dated July 1, 2016)

 

Form No. 01

 

APPLICATION FOR …(1)

Respectfully submitted to: General Department of Customs/Provincial Customs Office.

1. The enterprise requests issuance of a certificate of eligibility for duty-free business operations; recognition and confirmation/expansion/reduction/relocation/transferring ownership rights/suspension, termination of duty-free business operations, warehouses, locations:

- Enterprise name: …

- Tax code:...

- Main office located at:...

- Phone number: … Fax number: …

Business Registration Certificate or Investment Certificate number: ……. date….month…..year…..;

Issuing authority: …

Business activities: …(only list business activities related to duty-free business operations, warehouses, locations).

2. Request ⁽²⁾ ……. at …

3. Area requested …has an area of: ……. m².

Total area: …m², including:

- Warehouse area: …m²;

- Yard area: ……… m²;

- Storage area for contraband items (if any): ……… m²;

- Customs workplace area: …m²;

- Ancillary facilities area (if any) …m².

4. Documents attached to the application:

- Business Registration Certificate or establishment certificate of the enterprise: 01 copy;

- Legal documents on the right to use warehouses, locations: 01 copy;

- Design layout of the area for warehouses, locations: 01 copy;

- Fire prevention and firefighting compliance certificate: 01 copy.

- …

The enterprise guarantees that the above contents are correct; commits to comply with technical standards issued together with Decision No. …../QĐ-TCHQ dated... by the Director-General of the General Department of Customs, and to strictly adhere to and implement all relevant laws governing the operation of ….⁽¹⁾.

 

Note:

(1) Write the name of the duty-free shop, location, warehouse being requested for recognition, expansion, reduction, relocation, transfer of ownership rights, suspension, termination of operations. For fuel depots, write: "Application for confirmation of compliance, customs inspection and supervision".

(2) In case of requesting suspension of operations, the enterprise must clearly state the reasons and the duration for resuming operations.

 

Form No. 02

 

NOTICE OF RESUMPTION OF OPERATIONS …

Respectfully submitted to: General Department of Customs/Provincial Customs Office.

1. The enterprise notifies resumption of operations

- Enterprise name: …

- Tax code:...

- Main office located at:...

- Phone number: … Fax number: …

Business Registration Certificate or Investment Certificate number: …… date….month……year……;

Issuing authority: …

Business activities: ……… (only list business activities related to duty-free business operations, warehouses, locations).

2. Request resumption of operations …at …

3. The duty-free shop, warehouse, location resuming operations was previously suspended according to Application No. …dated…month…..year…of the enterprise and Suspension Notice No…….dated….month…..year…issued by the Provincial Customs Office/General Department of Customs.

4. Reason for resuming operations: …

5. Documents attached to the notice: …

- Business Registration Certificate: 01 copy;

- …

The enterprise guarantees that the above contents are correct; and commits to strictly adhere to and implement all relevant laws governing the operation of ….