CIRCULAR

Detailed guidance on certain provisions of Decree No. 68/2016/NĐ-CP dated July 1, 2016

of the Government

Pursuant to the Customs Law dated June 23, 2014;

Pursuant to the Investment Law dated November 26, 2014;

Pursuant to Decree No. 68/2016/NĐ-CP dated July 1, 2016 on conditions for operating tax-free goods, warehouses, customs clearance locations, assembly points, customs inspection, and supervision;

Pursuant to Decree No. 87/2013/NĐ-CP dated July 26, 2017 of the Government on the functions, tasks, powers, and organizational structure of the Ministry of Finance;

At the proposal of the Director General of the General Department of Customs,

The Ministry of Finance issues this Circular providing detailed guidance on certain provisions of Decree No. 68/2016/NĐ-CP dated July 1, 2016 on conditions for operating tax-free goods, warehouses, customs clearance locations, assembly points, customs inspection, and supervision (hereinafter referred to as warehouses and locations).

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

This Circular stipulates conditions for customs authorities' operations; places for inspecting goods; installation sites for customs inspection and supervision equipment; warehouses for storing contraband at bonded warehouses, collection points for consolidated shipments, non-extended cargo warehouses, assembly points, centralized export and import goods inspection and supervision locations, express delivery points, and postal goods according to Decree No. 68/2016/NĐ-CP dated July 1, 2016 of the Government on conditions for operating tax-free goods, warehouses, customs clearance locations, assembly points, customs inspection, and supervision.

Article 2. Applicability

1. Organizations and individuals have rights and obligations related to operating, expanding, reducing, transferring ownership, relocating, renaming, temporarily suspending, or ceasing operations of tax-free goods, warehouses, and locations.

2. Customs authorities, customs officers.

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

Article 3. Explanation of Terms

1. Specialized bonded warehouses are bonded warehouses established and recognized according to Decree No. 68/2016/NĐ-CP, used to store and preserve one or several types of goods with special storage requirements such as liquids, chemicals, frozen goods, or goods that must be stored under specific temperature, light, and environmental conditions as required by manufacturers.

2. Documents proving the right to use warehouses and locations include one of the following papers:

a) A copy from the original Land Use Right Certificate issued by the competent authority to the organization or individual applying for recognition, expansion of warehouses and locations, or

b) A copy from the original Land Use Right Certificate issued by the competent authority to the landowner and Lease or Borrow Agreement in cases where organizations or individuals lease or borrow land to build warehouses and locations, or

c) A copy from the original Land Use Right Certificate issued by the competent authority to the landowner and Lease, Borrow, or Joint Venture Business Agreement for warehouse and factory operation, or

d) A copy from the original Decision on land allocation, leasing, or borrowing issued by the competent authority to establish export processing zones, industrial parks, high-tech parks, ports, border gates, railway stations and Leases or Borrow Agreements for land, warehouses, and factories of management boards of these areas.

3. Contraband in this Circular refers to money and equivalent monetary amounts, goods, and means of transportation seized or confiscated by customs authorities or competent authorities according to the Law on Handling Administrative Violations or evidence according to the Criminal Procedure Code.

Chapter II

SPECIFIC PROVISIONS

Article 4. Workplace of Customs Authorities

The workplace of customs authorities at warehouses and locations shall be organized and constructed by business organizations and individuals operating such warehouses and locations, and must meet the following conditions:

1. Location: within the area of the warehouse or location to be newly recognized or already recognized, or within the same land plot under the use right of the enterprise, facilitating customs inspection and supervision work.

2. Minimum area of 20 square meters, separated from surrounding areas, ensuring the customs inspection and supervision work. For locations where goods are concentrated for inspection and supervision at international seaports, international airports, and international border gates, the customs office's workplace must have a minimum area of 50 square meters.

3. Equipment:

a) Computer installed with management software, connected to the management system of the warehouse or location business organization and linked to the Electronic Data Processing System of the customs authority according to the regulations of the General Department of Customs.

b) Equipment connected to the surveillance camera system of the warehouse or location business organization to monitor, store, retrieve, and display images in all areas containing export and import goods, warehouse and location entrances and exits.

c) Other office equipment (desks, chairs, filing cabinets, desk phones).

d) Technical infrastructure (electricity supply, lighting, information technology infrastructure) ensuring operational conditions.

Article 5. Goods Inspection Area

1. Business organizations and individuals shall arrange a covered area within the warehouse or location area, facilitating the customs authority in conducting actual goods inspections and customs sealing.

2. For warehouses and locations with a total area of three hectares or more: business organizations and individuals shall arrange an area of at least 2,000 square meters (40m x 50m) for container X-ray machine operations to ensure radiation safety and scanning activities. During the period when the container X-ray machine has not been deployed to the operation area, the enterprise may still use this area for its operational and commercial activities.

Article 6. Warehouse for Seized Contraband

1. The warehouse for seized contraband goods must have a minimum area of 30 square meters, separate from other warehouses. For centralized inspection and supervision locations for postal and express delivery goods, the warehouse for seized contraband goods must have a minimum area of 10 square meters.

In cases where the warehouse for seized contraband goods is built within the warehouse area of the warehouse or location to be newly recognized or already recognized, it must ensure customs sealing, original condition, and quality of goods during storage. When not storing seized contraband goods, organizations and individuals may use the contraband goods warehouse to store other goods according to regulations.

2. For warehouses and locations larger than three hectares without a warehouse for seized contraband goods: organizations and individuals shall arrange a separate area of at least 200 square meters to store vehicles and containers carrying contraband goods. Organizations and individuals may use the planned area for storing contraband goods to store and utilize other goods when that area does not contain contraband goods.

Chapter III

IMPLEMENTING PROVISIONS

Article 7. Effective Date

This Circular takes effect from September 30, 2017./.