DECREES:

Chapter I

GENERAL PROVISIONS

Article 1.- Scope of regulation

This Decree details the implementation of a number of articles of the Customs Law regarding customs procedures, customs inspection and supervision regime. Where an international agreement, which Vietnam has signed or acceded to, contains provisions different from those of this Decree, the provisions of such international agreement shall apply.

Article 2.- Objects of customs procedures, customs inspection and supervision

1. Exported, imported and transited goods; articles aboard transport means on exit, entry or in transit; foreign exchange, Vietnamese currency, precious metals, gems; cultural products, relics, antiques, national precious objects; postal matters and parcels, luggage of people on exit or entry; other articles exported, imported, transited or stored within the geographical areas of operation of the customs offices.

2. Land, railway, air, sea and river transport means on entry, exit or in transit.

Article 3.- Customs declarers:

1. Customs declarers consist of:

a/ Possessors of objects of customs procedures;

b/ Persons lawfully authorized by possessors of objects of customs procedures;

c/ Customs procedure clearance agents.

2. Customs declarers shall have the rights and obligations specified in Article 23 of the Customs Law.

Article 4.- Sites of customs procedure completion

1. Sites of customs procedure completion are places where the customs-procedure-related jobs specified in Article 17 of the Customs Law is performed. The sites of customs procedure completion are:

a/ Border-gate customs offices set up at international seaports, international river ports, international civil airports, international railway stations, international posts and land border gates;

b/ Outside-of-border-gate customs offices set up in areas outside the border-gate areas under decisions of the Prime Minister.

2. Sites of customs procedure completion for transport means on exit, entry or in transit shall be the customs offices of the border gates through which such transport means leave, enter or transit the country.

Article 5.- Sites of export and import goods inspection

The sites of export and import goods inspection are those where the customs offices inspect the actual conditions of export and import goods, specifically as follows:

a/ Border-gate sites of customs procedure completion;

b/ Outside-of-border gate sites of customs procedure completion;

c/ Other sites prescribed by the General Director of Customs in necessary cases.

Article 6.- Customs procedure clearance agents

1. Customs procedure clearance agents (hereinafter referred to as agents) are persons who represent the persons with rights and obligations in carrying out the customs procedures for goods and/or transport means (hereinafter referred to as goods owners) in making customs declaration and perform the jobs as agreed upon in the customs procedure clearance agency contracts (hereinafter referred to as agency contracts).

2. Conditions for acting as agents:

a/ Being traders who have made business registration according to law provisions;

b/ Having the business line being the goods-forwarding service inscribed in the business registration certificate.

3. Rights and obligations of agents:

a/ To exercise the rights and fulfill the obligations stated in the agency contracts;

b/ To fill in and sign the customs declaration forms;

c/ To request the goods owners to pay damages and expenses that arise from the latter�s acts of breaching the agency contracts;

d/ To request the goods owners to supply all documents and accurate information needed for the customs procedures clearance for the lots of export or import goods;

e/ To perform all the customs procedure-related jobs authorized by the goods owner and stated in the agency contracts;

f/ To take responsibility before law within the authorization scope for the customs declarer�s obligations.

4. Rights and obligations of goods owners in the authorization of agents:

a/ To sign the agency contracts (clearly defining the authorization scopes, responsibilities of the authorizers and the agents);

b/ To supply the agents with full documents and accurate information needed for the customs procedure completion for the lots of export or import goods;

c/ To pay damages and all expenses incurred by the agents due to the goods owner�s acts of breaching the agency contracts;

d/ To take responsibility before law for their law-breaking acts or the agents� if such acts are not due to the latter�s faults.

Chapter II

CUSTOMS PROCEDURES, CUSTOMS SUPERVISION AND INSPECTION REGIME

Section 1. FOR EXPORT AND IMPORT GOODS

Article 7.- Customs dossiers, registration of customs dossiers

1. When carrying out customs procedures, the customs declarers must submit and present a customs dossier consisting of the following documents:

a/ For export goods:

- The customs declaration of export goods;

- A detailed list of goods, for lots of goods of many categories;

- The permit of a competent State management body, for goods requiring export permits according to law provisions;

- The goods purchase and sale contract or a paper of equivalent legal value in necessary cases prescribed by the General Director of Customs;

- Other documents prescribed by law for each particular goods item, which the customs declarer must submit or present to the customs office.

b/ For import goods:

- The customs declaration of import goods;

- A commercial invoice;

- The goods purchase and sale contract or a paper of equivalent legal value;

- The permit of a competent State management body, for goods requiring import permits according to law provisions;

- A copy of the bill of lading;

- A detailed list of goods, for lots of goods of many categories;

- A certificate of origin (C/O), as provided in Clause 2, Article 10 of this Decree;

- A written certification of goods quality inspection registration, made by a goods-expertising organization or a notice on exemption from State quality inspection, issued by a competent State management body for export or import goods subject to State quality inspection;

- Other documents as prescribed by law for each particular goods item.

If the above-mentioned documents are copies, they must be certified, signed and stamped by the heads of the business organizations or their authorized persons. The certifying, signing and stamping persons shall bear responsibility before law for the lawfulness of these documents.

2. In cases where they obtain the approval of the directors of the border-gate Customs Sub-Departments or the directors of the outside-of-border gate Customs Sub-Departments (hereinafter referred to as Customs Sub-Department directors), the customs declarers may later submit the following documents:

a/ The certificate of origin (C/O). The time limit for late submission shall be 60 (sixty) days, counting from the date of registration of the customs declaration;

b/ Other documents belonging to the customs dossier (except the customs declaration). The time limit for late submission shall be 30 (thirty) days, counting from the date of registration of the customs declaration.

3. Before the time the customs officers conduct the actual goods inspection, if the customs declarers made written requests which are approved by the Customs Sub-Department directors, they may withdraw the registered customs declarations for supplementation and/or amendment or replacement.

4. Requirements on customs dossiers and customs dossier registration in other cases:

a/ The customs declarers may register the customs declarations for the import goods before the goods arrive at the border gates within the time limit prescribed by the tax legislation for export and import goods;

b/ The goods owners who regularly export and/or import the same goods items within a given period under the same purchase and sale contract may use a single customs declaration (registered once) for carrying out customs procedures for the exportation or importation of such goods items within the delivery time determined in the purchase and sale contracts.

c/ The tax policy and the export and import management policy implemented according to law provisions shall apply at the time of the actual goods exportation or importation;

d/ The customs declarers may make customs declaration on computers connected with the computer network of the customs offices according to law provisions.

5. When carrying out the customs dossier registration procedures, the customs officers shall have the responsibility to: check the documents of the customs dossiers; check the customs declaration contents; compare the customs declaration contents with the documents of the customs dossiers; register the customs dossiers according to law provisions. Where they refuse to register the customs dossiers, they must conspicuously inscribe the reasons therefor so that the customs declarers know them.

Article 8.- Inspection of the goods� actual conditions

1. The customs officers of all levels shall have to organize the gathering and exchange of information for setting up a database on: The goods owners� law observance records; the export and import management policy; characteristics, categories and origins of export and import goods; information related to export and import goods.

2. The Customs Sub-Department directors shall base themselves on the database set up under Clause 1 of this Article, the customs dossiers and other relevant information to decide on or change the inspection form, the percentage of to be-inspected goods, the way of determining the percentage of to be-inspected goods for each particular export or import goods lot.

3. The customs officers tasked to carry out the actual goods inspection shall base themselves on the decisions of the Customs Sub-Department directors on the inspection form and the percentage of to be-inspected goods to apply goods inspection measures and methods suitable for each particular goods lot. In the course of inspection, if detecting signs of law violation, they shall report them to the Customs Sub-Department directors so that the latter can decide to change the inspection form and/or the percentage of to be-inspected goods.

4. Exemption from actual inspection of export and import goods

a/ Conditions for goods owners to enjoy exemption from actual goods inspection:

- The owners of export goods have a record of one year�s exportation, counting from the date of carrying out the customs procedures, who have not been handled for customs-related administrative violations, or have been handled for customs-related administrative violations with a fine level falling within the sanctioning competence of the Customs Sub-Department directors.

- The owners of import goods have a record of two years� importation, counting from the date of carrying out customs procedures, who have not yet been handled for customs-related administrative violations, or have been handled for customs-related administrative violations with a fine level falling within the sanctioning competence of the Customs Sub-Department directors.

b/ The export or import goods of the owners who meet the conditions prescribed at Point a of this Clause for exemption from inspection shall be:

- For exports: agricultural and aquatic goods; textiles and garments; footwear, natural rubber; fresh and raw foodstuffs; processed foodstuffs; goods requiring special preservation; mechanical goods and machinery; liquid and bulky goods; goods items whose volume, quality and categories must be determined on the basis of the conclusions of competent State management bodies or expertising organizations; export goods of enterprises in export-processing zones; regularly exported goods; other goods stipulated by the Government.

- For imports: Equipment, machinery; fresh and raw foodstuffs; goods requiring special preservation; goods stored in bonded or tax-suspension warehouses; imports to be taken into export-processing zones, tax-suspension or other customs preference zones; liquid and bulky goods and goods items whose volume, quality and categories must be determined on the basis of competent State management bodies or expertising organizations; regularly imported goods; other goods stipulated by the Government.

c/ The customs offices shall inscribe the certification of the actual conditions of goods for goods exempt from inspection as follows:

- For goods having the inspection or expertise results of competent State management bodies or expertising organizations, the customs offices shall inscribe the certification of the actually exported or imported goods according to the conclusions of these bodies or organizations.

- For other goods, the customs offices shall inscribe the certification of the actually exported or imported goods according to the contents declared by the customs declarers. The customs declarers shall bear responsibility before law for the contents declared by themselves.

5. Probability inspection of the actual conditions of goods shall be applied to no more than 10% of each export or import goods lot according to the provisions at Point b, Clause 1, Article 30 of the Customs Law. If the goods are packed in bales, the inspection rate shall be the rate of inspected bales. If the goods are packed in containers, the inspection rate shall be the rate of inspected containers or the rate of inspected bales in each container.

6. Inspection of the actual conditions of the whole export or import goods lots of goods owners who have repeatedly violated the customs legislation; of export or import goods lots showing signs of violation of the customs legislation, shall be conducted as follows:

a/ The goods owners who have repeatedly violated the customs legislation are those who have been more than three times handled for customs-related administrative violations within two years, counting from the date of carrying out customs procedures for import activities, and one year, counting from the date of carrying out customs procedures for export activities, with the level of each fine falling beyond the sanctioning competence of the Customs Sub-Department directors;

b/ In cases where within the time limit specified at Point a of this Clause, the goods owners have been once handled for customs-related administrative violations with a fine level beyond the sanctioning competence of the directors of the provincial, inter-provincial or municipal Customs Departments (hereinafter referred to as Customs Department directors), the export or import goods of these owners shall be subject to the inspection form applicable to the goods of owners who repeatedly violate the customs legislation.

c/ Where signs of violation of the customs legislation are detected, the customs officers shall inspect the whole export or import goods lots as follows:

- If the signs of violation are signs of fraudulence in goods quantity, the customs officers shall count, weigh or measure the whole goods lot;

- If the signs of violation are signs of fraudulence in goods category, the customs officers shall inspect all the bales of goods;

- If the signs of violation are signs of fraudulence in goods quality, the customs officers shall take some random samples or samples of suspected goods for examination, analysis or expertise solicitation in the presence of the customs declarers. The sampling shall be recorded in a report, which shall be signed for certification by the customs officer and customs declarer.

7. On the basis of the provisions of this Article, specific information on the goods owners, export or import goods lots at the time of carrying out the customs procedures, the Customs Department directors shall decide to change the inspection form and the actual inspection rate for the goods for which the Customs Sub-Department directors already decided on the inspection form and the actual inspection rate.

Article 9.- Analysis, classification, expertise and State inspection of goods quality

1. For goods not subject to State quality inspection but the customs officers cannot determine their names, quantity and/or quality, they shall be dealt with as follows:

a/ The customs officers shall take goods samples in the presence of the customs declarers for analysis or expertise solicitation. The taking of goods samples shall be recorded in a report, which is signed for certification by the customs officer and the customs declarer;

b/ In cases where the customs declarers disagree with the inspection, analysis or expertise results concluded by the customs offices (hereinafter referred to as first-time results), they may select another specialized expertising office or organization for re-expertise and shall have to pay the expertise charges;

c/ When the re-expertise results are not available, the first-time results shall serve as basis for the customs offices to carry out customs procedures. When the re-expertise results are available, the customs offices shall base themselves on the re-expertise results to carry out the customs procedures for the goods;

d/ The goods owners shall bear responsibility before law for the lawfulness of the expertise results if the goods are expertised abroad at the goods owners� request.

2. For goods subject to the State quality inspection, the customs offices shall base themselves on the customs dossiers and the certificate of registration of State inspection of goods quality, or the notices on exemption from State inspection of goods quality, which are issued by the agencies in charge of State inspection of goods quality, to carry out the customs procedures for such goods.

3. The customs declarers shall be entitled to lodge complaints with the customs offices or competent State management bodies or initiate lawsuits at courts about the decisions of the customs offices, the goods-analyzing, classifying and expertising agencies or organizations according to law provisions.

Article 10.- Inspection of goods origin

1. The inspection of goods origin must be based on the results of inspection of the actual conditions of the goods as well as the customs dossiers.

2. Regulations on certificates of origin (C/O):

a/ For export goods, the customs declarers shall not have to submit C/O;

b/ For import goods, if the goods owners request the origin-related preferences in compliance with the agreements or commitments between the Socialist Republic of Vietnam and other countries or international organizations, they must submit C/O or documents of equivalent legal validity and bear responsibility before law for the lawfulness of the C/O;

c/ For the goods which Vietnam or an international organization announces that they are in a time when appears the risk of causing danger to community health, production and/or environmental hygiene, when importing them, the customs declarers must submit these goods� C/O.

Article 11.- Goods customs clearance

1. Bases for the customs offices effect the goods customs clearance are:

a/ The declaration of the customs declarer or the results of the State inspection body or expertising organization, for goods exempt from actual inspection;

b/ The results of the actual goods inspection by the customs office, for goods subject to actual inspection;

c/ The certificate of registration of State inspection of goods quality, which is issued by the expertising organization, or the notice on exemption from State inspection of goods quality, which is issued by a competent State management body, for import goods subject to State inspection of goods quality;

d/ The expertise results, for goods requiring expertise.

2. Export goods and import goods not subject to taxes collected by the customs offices, duty-free goods, processed goods, and other special goods shall enjoy customs clearance immediately after there is the customs office�s certification of the goods inspection results on the declaration forms.

3. Export goods and import goods liable to tax shall enjoy customs clearance immediately after the customs declarers pay tax. Goods enjoying a grace period for tax payment shall enjoy customs clearance immediately after the customs office issues a tax notice.

Article 12.- Supervision of export and import goods

1. Goods subject to customs supervision

Goods subject to customs supervision comprise:

a/ Goods which have gone through export customs procedures but not yet exported;

b/ Goods which have gone through import customs procedures but not yet enjoyed customs clearance;

c/ Export or import goods which have not yet gone through customs procedures and been stored in warehouses or yards within the geographical areas of operation of the customs offices;

d/ Goods and transport means in transit;

e/ Goods and transport means being transported from one border gate to another.

2. Customs supervision modes:

a/ Customs supervision shall be effected by the following modes:

- Customs sealing, comprising sealing with customs sealing papers and sealing with special-use customs strings or locks;

- Personal supervision by customs officers;

- Supervision by technical means.

b/ Personal supervision by customs officers shall not apply to goods stored or transported outside the geographical areas of operation of the customs offices, except for necessary cases prescribed by the General Director of Customs.

Article 13.- Goods transported from one border gate to another

1. Goods transported from one border gate to another must be transported along the right routes to the right places inscribed in the customs dossiers.

2. The transporters and the accompanying customs officers (if any) shall have the responsibility to keep intact the original conditions of the goods or customs seals during the border gate-to-border gate transportation process.

3. During the border gate-to-border gate transportation process, if accidents or force majeure events occur, thus damaging the customs seal or changing the original conditions of the goods, the transporters, goods owners or accompanying customs officers (if any) shall notify as soon as possible the customs offices or the nearest commune, ward or township People�s Committees thereof for making records certifying the present conditions of the goods.

4. Customs procedures for border gate-to-border gate transportation

a/ For import goods having bills of lading which state that the destination places are the outside-of-border gate sites of customs procedure completion:

- The border-gate customs offices shall have to inspect the outer appearance of the goods; make delivery records and deliver the goods to the transporters for transportation to the outside-of-border gate sites of customs procedure clearance; then notify the customs offices at the outside-of-border gate sites of customs procedure completion of noteworthy information on the goods.

- The customs offices at the outside-of-border gate sites of customs procedure completion shall receive the delivered goods; compare the goods with, and make certification in, the delivery records of the border-gate customs offices; carry out the customs procedures for the importation of the goods; notify the border-gate customs offices of the results of verification of the information on the import goods lots already noted by the border-gate customs offices.

b/ For import goods with bills of lading stating that the destination places are the border-gate sites of customs procedure completion:

- The customs declarers must make written requests for border gate-to-border gate transportation. On the basis of such requests, the customs offices at the outside-of border gate sites of customs procedure completion shall fill in the procedures for receiving the dossiers; register the import customs declarations, make certification in the border gate-to-border gate transportation requests, then send them to the border-gate customs offices for carrying out the procedures for transportation of the goods from the border gates to the outside-of-border gate sites of customs procedure completion.

- Upon receiving the requests of the customs offices at the outside-of-border gate sites of customs procedure completion inscribed in the border gate-to-border gate transportation requests, the border-gate customs offices and the customs offices at the outside-of-border gate sites of customs procedure completion shall carry out customs procedures as prescribed at Point a of this Clause 4.

c/ For export goods:

- The customs offices at the outside-of-border gate sites of customs procedure completion shall carry out export customs procedures, make delivery records, deliver the goods and dossiers thereof to the customs declarers for sending them to the border-gate customs offices.

- The customs offices at the export border gates shall receive the goods; compare them with the delivery records of the customs offices at the outside-of-border gate sites of customs procedure completion; supervise the goods until they are exported, and make certification of the actual exportation thereof according to regulations.

d/ The customs offices at the outside-of-border gate sites of customs procedure completion shall have to carry out the customs procedures for export or import goods lots. The border-gate customs offices shall have to coordinate with, supply noteworthy information on the export or import goods to the customs offices at the outside-of-border gate sites of customs procedure completion. When receiving noteworthy information on the export or import goods, the customs offices at the outside-of-border gate sites of customs procedure completion must check such information and inform the checking result to directors of the concerned Customs Department and Customs Sub-Departments.

Article 14.- Procedures for temporary postponement of customs procedure clearance with regard to exports and imports requiring intellectual property protection

1. When wishing to request the customs offices to temporarily postpone the customs procedure clearance for export or import goods, the intellectual property right holders or their authorized persons (hereinafter referred to as temporary postponement requesters) must:

a/ File a written request for temporary postponement of customs procedure clearance to the director of the Customs Sub-Department at the place where the goods are exported or imported;

b/ Deposit an advance amount equal to 20% of the goods lot�s value inscribed in the contract into the customs office�s temporary custody account at the State Treasury or submit the guaranty document issued by a credit institution in order to secure the damage compensation for the goods owner as well as the payment of expenses to be incurred by the concerned agencies, organizations and/or individuals due to the wrong request for temporary postponement of customs procedure clearance;

c/ Produce to the customs office protection titles or documents proving the lawful intellectual property rights;

d/ Present initial evidences of the doubt that the exports or imports infringe upon their intellectual property rights;

e/ The written authorization to file the temporary postponement request, made according to law provisions (in cases of authorization).

2. Temporary postponement procedures:

a/ When the temporary postponement requester has satisfied all temporary postponement requesting conditions specified in Clause 1 of this Article, the Customs Sub-Department director shall decide on the temporary postponement of customs procedure clearance (hereinafter referred to as temporary postponement) with regard to the goods lot. The temporary postponement decision shall be sent to the export or import goods owner and the temporary postponement requester. It must clearly state the reason for and duration of temporary postponement so that the goods lot-related parties can know and execute;

b/ The temporary postponement duration is ten days as from the date the temporary postponement decision is issued;

c/ The Customs Sub-Department director shall decide on the extension of the temporary postponement duration in cases where the temporary postponement requester files a written request therefor prior to the expiry date of the suspension decision. In this case, the temporary postponement requester must additionally pay an advance as prescribed in Clause 1 of this Article. The extended duration shall not exceed ten days as from the date the temporary postponement decision expires.

d/ Upon the end of the duration specified at Point b or c of this Clause, if the temporary postponement requesters fail to supply any evidences or the conclusions of competent agencies and/or organizations proving that the goods lot infringes upon the intellectual property rights or there is no competent State management body or court requesting in writing the customs office to deliver the goods being subject to temporary postponement of customs procedure clearance for settlement, the Customs Sub-Department directors may decide:

- To carry out the customs clearance procedures for the goods lot;

- To force the temporary postponement requester to pay compensation to the exporter or importer for all damage caused by the wrong temporary postponement request, pay all expenses for the goods storage and preservation as well as expenses incurred by the customs offices and other concerned agencies, organizations and/or individuals according to law provisions;

- To complete the procedures for returning to the temporary postponement requester the remaining advance amount after he/she has paid compensation to the exporter or importer as well as all arising expenses related to the temporary postponement request. Where the advance amount is not enough to pay all the above expenses, the temporary postponement requester shall have to pay an additional amount to offset the deficit.

e/ Where the temporary postponement requester is able to prove that the export or import goods owner has infringed upon his/her intellectual property rights, the latter and the goods shall be dealt with according to law provisions. The export or import goods owner shall bear responsibility before law; abide by decisions of competent State bodies; pay compensation for any damage caused to the industrial property right owner; and pay all expenses arising from the temporary postponement. The customs office shall return to the temporary postponement requester the advance amount.

Section 2. FOR OTHER EXPORT AND IMPORT GOODS

Article 15.- Transited goods

1. The customs procedures for transited goods shall be carried out at the customs offices at the border gates through which the goods are imported or exported. The transited goods must be imported or exported through the right border gates, transported along the right routes according to the timetable inscribed in the customs dossiers and subject to customs supervision.

2. Transited goods must neither be sold, presented nor exchanged in Vietnam, except for cases it is so permitted by competent Vietnamese State bodies and, in these cases, they must go through import customs procedures as prescribed by law.

3. Transited goods, which are not transported across land territory, may be warehoused within the border-gate areas.

4. For transited goods, which need to be warehoused outside the border gate areas or transported across land territory, or other transited goods which are required by law to have transit permits, permission of a competent State body must be obtained.

5. Documents to be submitted when carrying out customs procedures for transited goods:

a/ A list of the transited goods, submitted by the customs declarer or his/her representative to the border-gate customs office for transited goods which are straightly transported in their original conditions; transshipped onto the same land, railway, river, sea or air transport means (except for transited goods which are straightly transported by air);

b/ The customs declaration for the transited goods and the list of transited goods, submitted by the customs declarer or his/her representative to the border-gate customs office for transited goods which need to be warehoused or transshipped onto another type of transport means.

6. Responsibilities of the customs offices:

a/ The customs offices of the border gates through which the goods enter the country shall receive the lists of transited goods or the customs declarations for the transited goods lots, seal up the goods-storing places and certify the original conditions of the goods in the goods lists and the customs declarations (for cases where customs declaration is required) and hand them over to the transport means operators to bring them to the customs offices of the border gates through which the goods leave the country.

b/ Where the transited goods cannot be sealed up, the carriers, the customs declarers and the accompanying customs officers (if any) shall have to ensure the original conditions of the goods from the border gates through which the goods enter the country to the border gates through which they leave the country;

c/ The customs offices of the border gates through which the goods leave the country shall receive the goods lists or the customs declarations forwarded from the customs offices of the border gates through which the goods enter the country; check the state of the customs seal or the original conditions of the goods against the contents certified by the customs offices of the border gates through which the goods enter the country on the manifests or the transit customs declarations before carrying out the exit procedures.

7. Where accidents or force majeure events occur, resulting in the displacement of the customs seal or change in the goods� original conditions, the carriers, the customs declarers and the accompanying customs officers (if any) must apply measures to limit loss and immediately notify such to the nearest commune, ward or township People�s Committee for making a written record of the current conditions of the goods.

Article 16.- Goods temporarily exported or imported for participation in fairs, exhibitions or displays

1. Goods temporarily imported for participation in fairs, exhibitions or displays (hereinafter collectively referred to as temporarily-imported goods).

a/ The customs dossier consists of:

- The customs declaration;

- A copy of the bill of lading;

- The detailed list of goods;

- The permit of a competent State management body (for goods requiring permission).

b/ The temporarily-imported goods may go through customs procedures at the border-gate customs offices or outside-of-border gate customs offices in the places where the exhibitions or fairs are held;

c/ The temporary export duration shall comply with provisions of Vietnamese laws;

d/ For temporarily imported goods subject to import ban or conditional import, if they are sold, presented or exchanged in Vietnam, permission from a competent State body must be obtained.

2. Goods of Vietnamese organizations and individuals, which are temporarily exported for participation in fairs, exhibitions or displays in foreign countries (hereinafter collectively referred to as temporarily-exported goods).

a/ The customs dossier consists of:

- The customs declaration;

- The detailed list of goods;

- The permit of a competent State management body (for goods requiring permission).

b/ The temporarily-exported goods may go through customs procedures at the border-gate customs offices or at the outside-of-border gate sites of customs procedure completion;

c/ The temporary import duration shall comply with provisions of Vietnamese laws;

d/ For temporarily exported goods subject to import ban or conditional import, if they are sold, presented or exchanged on foreign markets, permission from a competent Vietnamese State body must be obtained.

Article 17.- Machinery, equipment, professional tools temporarily exported or imported for a given period

1. Machinery, equipment and professional tools (hereinafter collectively referred to as temporarily exported or temporarily imported goods) needed for the jobs of the persons on exit or entry may be temporarily exported or imported for a given period in accordance with their working requirements.

2. The customs dossier consists of:

a/ The customs declaration;

b/ The written request;

c/ The detailed list of goods;

d/ A copy of the bill of lading (for temporarily imported goods);

e/ A written certification of the jobs using of the temporarily exported or imported goods, issued by the agency or organization where the goods owner is working.

Article 18.- Components and spare parts temporarily imported in service of the replacement and repair of foreign sea-going ships and aircraft

1. The foreign sea or air transportation companies which have their sea-going ships or aircraft repaired in Vietnam may send components and spare parts in service of the repair.

2. Components and spare parts temporarily imported in service of the replacement or repair of foreign sea-going ships or aircraft may be carried along by such aircraft or sea-going ships upon their entry, or sent before or afterwards to the addresses of the shipping agents or the repair factories.

3. The customs declarers shall be the aircraft or sea-going ship operators or the shipping agents or the repair factories. The customs declarers shall take responsibility before law for the use of temporarily imported components and spare parts for the right purposes as declared.

4. The customs dossier consists of:

- The customs declaration;

- The detailed list of goods;

- The customs declarer�s written request;

- A copy of the bill of lading.

Article 19.- Goods exported or imported by post

1. Goods exported or imported in to a certain form shall go through customs procedures prescribed for such export or import form.

2. The customs declarers of goods exported or imported by post shall be the goods owners or the postal service-providing enterprises. The postal service-providing enterprises shall be naturally lawful representatives of the goods owners. When carrying out the customs procedures for the goods, the postal service-providing enterprises shall have to exercise the following rights and perform the following obligations of the goods owners:

a/ To make customs declaration;

b/ To show the goods for customs inspection;

c/ To pay tax (for taxable goods);

d/ To receive goods and return them to their owners.

3. The postal service-providing enterprises may declare goods of many goods owners in a single customs declaration form.

Article 20.- Goods purchased and sold on transport means on exit or entry at Vietnam�s sea or river ports

1. Traders who purchase or sell goods with people on transport means on exit or entry must carry out customs procedures, fulfill all tax obligations and comply with the goods management policies as prescribed by law.

2. The customs dossier consists of:

a/ The customs declaration;

b/ The detailed list (if the goods are of different categories);

c/ The business registration certificate.

Article 21.- Goods purchased, sold or exchanged by border inhabitants

1. If inhabitants in the border areas carry goods cross the border within a prescribed quantity, they shall not have to make customs declaration; if carrying goods in excess of the prescribed quantity, they shall have to make customs declaration and abide by the law provisions on taxes and the export and import management policy.

2. For places where no customs offices are not available, the border guards shall perform the goods management task as prescribed in Clause 1 of this Article.

Article 22.- Transferred properties exported or imported

1. Foreigners who carry transferred properties into Vietnam in service of their work and daily life during their stay in Vietnam shall have to submit and present the following papers when carrying out customs procedures:

a/ The customs declaration;

b/ A written certification of their working visit in Vietnam, granted by a competent Vietnamese State management body;

c/ A copy of the bill of lading;

d/ The detailed list of properties.

2. Foreigners who carry transferred properties out of Vietnam shall have to submit and present the following papers when carrying out customs procedures:

a/ The customs declaration;

b/ A paper certifying the completion of their working and residing duration, granted by the Foreign Ministry or a competent management body of Vietnam;

c/ The detailed list of properties;

d/ The import declaration with the customs office�s certification, attached with the document on liquidation of the temporarily imported properties with the customs office and the tax payment voucher for goods liable to tax.

3. For transferred properties carried by Vietnamese organizations or individuals from Vietnam to foreign countries for working purposes or purchased in foreign countries, if, after finishing their working duration, these Vietnamese organizations or individuals send their properties back home, they must carry out customs procedures therefor. The customs dossier consists of:

a/ The customs declaration;

b/ The decision of a competent body permitting them to do business and work abroad or to return to Vietnam;

c/ The export customs declaration and other documents proving that they brought the goods abroad, or the invoice of the goods purchased abroad.

4. For transferred properties brought by overseas Vietnamese and their families into the country when they are permitted to reside in Vietnam or brought abroad by Vietnamese persons when they are permitted to reside abroad, they must go through customs procedures. The customs dossier consists of:

a/ The customs declaration;

b/ The decision permitting the residence in Vietnam or the decision permitting the residence in a foreign country (for persons on exit);

c/ The detailed list of properties;

d/ Papers proving the ownership of the properties, excluding articles and items in service of normal daily-life needs of families and individuals.

Article 23.- Luggage, foreign exchange, precious metals, gems, Vietnamese currency exported or imported

1. Upon arriving at the border gates, the persons on exit or entry must declare and show their accompanied luggage (both hand-carried luggage and luggage sent along the trip) to the customs offices for inspection when requested. For luggage sent before or after the trip, when the luggage owners come to fill in the procedures for receiving them, they must present the customs declarations, passports and bills of lading.

2. Persons on entry who possess articles and declare them as temporarily imported goods shall have to bring the same articles out of the country when on exit. Persons on exit who possess articles and declare them as temporarily exported goods shall have to bring back the same articles when on entry. Where the temporarily imported goods are lost or missing, written certification of a competent police office must be obtained.

3. Persons on exit or entry who carry gems and/or precious metals (except for international standard gold) must comply with the regulations of competent State management bodies and carry out customs procedures therefor.

4. Persons on exit who carry foreign currencies in cash, Vietnamese currency in cash and/or international standard-gold in excess of the prescribed limit must have permits of the Vietnam State Bank Governor and make customs declaration at the border gates.

5. Persons on entry who carry international standard-gold in excess of the limit set by the Vietnam State Bank governor must deposit the excessive gold amount in the customs office�s warehouse and bring it out of the country when on exit or sell it according to the regulations of the State Bank of Vietnam.

Article 24.- Goods exported and imported in service of urgent, security and defense requirements

1. Goods exported or imported in service of urgent requirements comprise:

a/ Goods specified in Clause 1, Article 35 of the Customs Law;

b/ Other goods exported or imported in service of urgent requirements as decided by the Prime Minister.

2. Customs procedures:

a/ For goods in service of urgent requirements:

- The agency heads or enterprise heads issue a written certification that the goods are exported or imported in service of urgent requirements and take responsibility before law for their certification.

- The goods exported or imported in service of urgent requirements shall enjoy customs clearance before the documents of the customs dossiers are submitted. The time limit for late submission shall not exceed 30 (thirty) days as from the date the goods are cleared from the customs procedures.

- The Customs Sub-Department directors shall base themselves on the characteristics and categories of the goods as well as the urgency to decide on appropriate forms of actual goods inspection.

b/ For goods in service of security and/or defense requirements:

- Goods exported or imported with the Public Security Minister�s or the Defense Minister�s written certification that they are in service of security or defense requirements shall enjoy customs clearance before the documents of the customs dossiers are submitted. The time limit for late submission shall not exceed 30 (thirty) days as from the date the goods are cleared from the customs procedures.

- Goods in service of security or defense requirements, which have written certification by the Public Security Minister or the Defense Minister that they require high safety or special confidentiality (top secret or strict confidentiality) shall be exempt from actual inspection and customs declaration.

- The Public Security Minister and the Defense Minister shall be answerable to the Prime Minister for the contents of their written certifications.

Article 25.- Privileges and immunities in customs declaration and customs inspection

1. Diplomatic and consular bags shall enjoy immunity from customs declaration and inspection.

2. Personal luggage and transport means of the following individuals and organizations shall enjoy immunity from customs inspection:

a/ Transport means, items used for the official activities of the Vietnam- based foreign diplomatic missions and consular offices, representative offices of international organizations shall enjoy diplomatic privileges and immunities according to law provisions;

b/ Those who hold diplomatic passports issued by the Foreign Ministry or overseas Vietnamese embassies and general consulates or by the Foreign Ministry or competent authorities of the countries which have recognized the State of the Socialist Republic of Vietnam;

c/ Spouses and minor children accompanying the subjects specified at Point b of this Clause;

3. Other goods exempt from customs declaration and/or inspection as decided by the Prime Minister.

4. When there are grounds to confirm that transport means, goods and/or items of the subjects specified in Clauses 1 and 2 of this Article violate the law-prescribed diplomatic privilege and immunity regime, the General Director of Customs shall decide on the inspection and handling of these subjects according to the provisions in Article 62 of the Customs Law.

Article 26.- Goods and luggage under consigned exportation or importation, which are drifted, strayed or mistakenly-claimed

1. When carrying out the customs procedures for receiving back goods and/or luggage under consigned exportation or importation, which have been drifted, strayed or mistakenly-claimed, the owners or their authorized persons shall have to submit the following papers:

a/ Documents proving the ownership of the consigned goods and/or luggage;

b/ The list of consigned goods and/or luggage (if any).

2. Where it is impossible to identify the recipients of the consigned goods and luggage prescribed in this Article, such goods and luggage shall be dealt with according to the provisions in Article 45 of the Customs Law.

Section 3. FOR GOODS AT BONDED WAREHOUSES AND TAX-SUSPENSION WAREHOUSES

Article 27.- Bonded warehouses

Bonded warehouses are warehouses or yards set up on the Vietnamese territory and separated from the surrounding areas for temporary storage and preservation of, or provision of a number of services for, the goods brought from abroad or from within the country and put into the warehouses under bonded warehouse lease contracts signed between the bonded warehouse owners and the goods owners.

Article 28.- Customs inspection and supervision of bonded warehouses

Bonded warehouses, goods and transport means which enter or leave, or are stored and preserved in bonded warehouses must go through customs procedures and subject to the inspection and supervision by the customs offices.

Article 29.- Areas where bonded warehouses may be set up

Bonded warehouses may be set up in the following areas:

1. The provinces and centrally-run cities which act as goods exchange hubs between Vietnam and foreign countries, have favorable conditions for the transportation of export and import goods.

2. Industrial parks, high-tech parks, export-processing zones, other special economic zones (hereinafter referred to as industrial parks).

Article 30.- Setting up of bonded warehouses

1. Conditions for being permitted to set up a bonded warehouse:

a/ Being an enterprise established according to law provisions;

b/ Having the function of dealing in warehouses and yards, forwarding export and import goods, which is inscribed in the business registration certificate;

c/ Warehouses and yards to be set up within the areas specified in Article 29 of this Decree; separated from the surrounding areas with walls and/or fences, enabling regular inspection and supervision by the customs offices;

d/ Having material and technical bases and transport means suitable for the requirements of goods storage and preservation as well as inspection and supervision by the customs offices.

2. A dossier of application for setting up a bonded warehouse consists of:

a/ An application for setting up a bonded warehouse, made according to the form set by the General Department of Customs;

b/ The business registration certificate;

c/ The diagram of the design of the warehouse or yard area, clearly showing the boundary separating the outside area, positions of entrepots, the system of internal transport roads, the system of fire and explosion prevention and fighting, security, offices, storehouses and the customs� working places;

d/ Lawful documents on the right to use storehouses and/or yards.

Article 31.- Procedures for considering and licensing the setting up of bonded warehouses

1. The dossiers of application for setting up bonded warehouses shall be addressed to the provincial, inter-provincial or municipal Customs Departments (hereinafter referred to as Customs Departments for short) of the localities where the enterprises apply for permission to set up bonded warehouses.

a/ Within 15 (fifteen) days after receiving the full and valid dossiers of the enterprises, the Customs Departments shall:

- Check the dossiers;

- Survey the actual conditions of storehouses and yards;

- Report the results and make proposals to the General Director of Customs.

b/ Within 15 (fifteen) days after receiving the reports and proposals from the Customs Departments, and the dossiers of application for setting up bonded warehouses, the General Director of Customs shall issue decisions to grant licenses to set up bonded warehouses or reply in writing if the enterprises fail to meet the conditions specified in Article 30 of this Decree.

2. Once every year, the Customs Departments shall inspect the situation of the operation of the bonded warehouses and the observance of the customs legislation by the licensed enterprises. If detecting signs of law violation, the Customs Departments shall conduct unexpected inspection of the bonded warehouses.

3. The General Director of Customs shall decide to revoke the bonded warehouse operation licenses in the following cases:

- The enterprise files a written request for termination of the operation of the bonded warehouse;

- Within 1 (one) year, the bonded warehouse owner has committed three customs-related administrative violations and has been fined each at the level beyond the Customs Sub-Department director�s competence to sanction customs-related administrative violations; or has committed one customs-related administrative violation and has been fined at the level beyond the Customs Department director�s competence to sanction customs-related administrative violations or has been examined for penal liability.

- Within six months, the enterprise fails to put the bonded warehouse into operation without plausible reasons.

4. On the basis of the business needs, proposals of the enterprises and the geographic locations and operation conditions of the bonded warehouses, the Customs Department directors shall decide to permit the enterprises to expand, size down or relocate the bonded warehouses but must ensure conditions for strict management by the customs offices.

Article 32.- Services provided for goods stored at bonded warehouses

If so agreed upon or authorized in writing by the goods owners, the bonded warehouse owners may provide the following services for the goods stored at the bonded warehouses:

1. Consolidating the packings, categorizing goods, taking goods samples within the bonded warehouses under the personal supervision by the customs officers;

2. Carrying out on behalf of the goods owners the customs procedures for the goods taken out or put into the bonded warehouses;

3. Transporting goods from the border gates into the bonded warehouses and vice versa, or from one bonded warehouse to another;

4. Effecting the transfer of the goods ownership according to law provisions.

Article 33.- Lease of bonded warehouses

1. Subjects permitted to rent bonded warehouses:

a/ Vietnamese traders of all economic sectors, who are permitted to conduct export and import business;

b/ Foreign traders;

c/ Foreign organizations and individuals.

2. Bonded warehouse lease contracts:

A bonded warehouse lease contract shall be agreed upon by the bonded warehouse owner and the goods owner according to law provisions. The bonded warehouse lease contract must clearly state the names, categories, quantities and quality of the goods; the lease duration, services as specified in Article 32 if requested by the goods owner, responsibilities of the contracting parties.

3. The term of a bonded warehouse lease contract shall not exceed 365 (three hundred and sixty five) days, counting from the date the goods are put into the warehouse. The bonded warehouse owner shall have to send a written notice to the bonded warehouse customs before the expiry of the bonded warehouse lease contract. Where the goods owner files a written request and the Customs Department director�s approval is obtained, the duration of the bonded warehouse lease contract may be extended for no more than 180 (one hundred and eighty) days, counting from the expiry date of the bonded warehouse lease contract.

4. When the bonded warehouse lease contract has expired but the goods owner still fails to carry out the procedures for the extension thereof, the handling thereof shall be as follows:

a/ Within 90 (ninety) days as from the expiry of the bonded warehouse lease contract, if the goods owner signs a contract on extension of the bonded warehouse lease contract, the Customs Department shall handle this as an administrative violation according to law provisions and accept the extension of the contract;

b/ Past 90 (ninety) days as from the expiry of the contract, if the goods owner fails to sign an extension contract or take the goods out of the bonded warehouse, the Customs Department shall organize the liquidation of the goods stored in the bonded warehouse according to law provisions.

5. During the term of the bonded warehouse lease contract, if the goods owner issues a document to abandon the goods stored at the bonded warehouse, the Customs Department shall organize the liquidation of such goods.

6. The liquidation of the goods stored at bonded warehouses shall be conducted according to law provisions. The proceeds from the goods liquidation shall be remitted into the State budget, after subtracting warehousing expenses and other expenses related to the goods liquidation according to law provisions.

Article 34.- Goods put in, taken out of, stored and preserved in bonded warehouses

1. Goods coming from Vietnam, which have gone through export customs procedures, goods coming from abroad, which need to transit or be warehoused in Vietnam before leaving for a third country or going through the procedures for importation into Vietnam, owned by the subjects allowed to rent bonded warehouses as prescribed in Clause 1, Article 33 of this Decree, may be all stored in bonded warehouses, excluding the following goods:

a/ Goods bearing fake labels or origin appellation of Vietnam;

b/ Goods which may cause public danger or environmental pollution;

c/ Goods banned from export, banned from import, except for cases permitted by the Prime Minister.

2. Goods brought from abroad into bonded warehouses consist of:

a/ Goods of foreign owners who have not yet signed sale contracts with enterprises in Vietnam;

b/ Goods imported by Vietnamese enterprises from abroad, waiting for circulation on the domestic market and import tax payment.

3. Goods brought from inland Vietnam into bonded warehouses consist of:

a/ Export goods which have gone through customs procedures but not yet exported;

b/ Goods which have passed the temporary import duration and must be re-exported;

c/ Goods which are forced by competent State bodies to be re-exported.

4. Goods stored and preserved in bonded warehouses must accord with the bonded warehouse lease contracts. Goods put in or taken out of bonded warehouses must go through customs procedures strictly according to law provisions.

5. The transportation of goods from a border gate or a goods-gathering place, which have gone through customs procedures (for exports goods to be put into bonded warehouses), to a bonded warehouse or from a bonded warehouse to a border gate shall be subject to customs supervision.

Article 35.- Customs procedures for goods put into bonded warehouses

1. For goods coming from abroad and put into bonded warehouses, the goods owners or their lawful representatives must submit to the bonded warehouse customs the bonded warehouse lease contracts, customs declarations and other necessary documents as stipulated by the General Director of Customs.

2. For goods coming from Vietnam and put into bonded warehouses, the goods owners or their lawful representatives must complete all customs procedures as for export goods according to law provisions before sending their goods into the bonded warehouses; submit to the bonded warehouse customs the bonded warehouse lease contracts, customs declarations of export goods which have gone through customs procedures, declarations of goods put into the bonded warehouses and other necessary documents for completion of the warehousing procedures according to law provisions.

Article 36.- Customs procedures for taking goods out of bonded warehouses

1. Goods to be carried abroad:

a/ The goods owners or their lawful representatives, who wish to take goods out of bonded warehouses for export, must make customs declaration and submit to the bonded warehouse customs the following documents:

- The customs declaration for the export goods;

- The paper on authorization of the goods exportation (if not so inscribed in the bonded warehouse lease contract);

- The ex-warehousing bill, made according to the form set by the Ministry of Finance.

b/ The bonded warehouse customs shall compare the set of declaration documents for goods ex-warehousing with the documents for completion of warehousing procedures and the actual conditions of the goods lots; if these documents are compatible, complete the delivery procedures and abide by the customs supervision regime according to the provisions in Article 12 of this Decree;

c/ If all the goods under a single contract cannot be exported at one time, they may be subtracted till the whole amount of goods inscribed in the contract is completely exported.

d/ Where the bonded warehouse lease contract has expired but the goods owner meets with difficulties in the goods delivery, the goods may be kept in the border-gate area where the bonded warehouse is located according to the following regulations:

- The goods are stored in the bonded warehouse within the border-gate area;

- The duration for storing the goods in the bonded warehouse within the border-gate area shall not exceed 180 (one hundred and eighty) days as from the date the goods are put into the warehouse. Past 180 (one hundred and eighty) days if all the goods have not yet been carried out of Vietnam, the Customs Department shall organize the liquidation of the left-over goods quantity according to the provisions in Clause 6, Article 33 of this Decree.

2. Goods imported into the Vietnamese market:

a/ Goods coming from abroad and put into bonded warehouses; goods coming from abroad, stored in bonded warehouses and having their ownership transferred; goods stored in bonded warehouses, which the liquidating Customs Departments wish to sell them on the Vietnamese market, shall all have to go through customs procedures, comply with the law provisions on tax and the export and import management policy like other imported goods;

b/ The time of actual importation of goods is the time the customs office registers the customs declaration for the imported goods;

c/ Goods stored at bonded warehouses and subject to re-export by decision of a competent State management body must not be re-imported into the Vietnamese market.

Article 37.- Management of the storage and preservation of goods in bonded warehouses

1. The bonded warehouse owners must send a notice to the bonded warehouse customs before providing services for the goods stored in their bonded warehouses as prescribed in Clause 1, Article 32 of this Decree.

2. The transfer of goods from one bonded ware-house to another must be approved in writing by the Customs Department director. The duration of the new bonded warehouse lease contract shall be counted from the date the goods are put into the first bonded warehouse.

3. The bonded warehouse owners must open accounting books to monitor the goods warehousing and ex-warehousing according to the regulations of competent State bodies.

4. Once every 45 (forty five) days, the bonded warehouse owners shall have to send reports to the Customs Department directors on the present state of the goods in their bonded warehouses and the situation of the operation of their warehouses.

5. Where they wish to destroy broken, damaged, deteriorated or expired goods lots in the course of warehousing, the bonded warehouse owners must have written consent of the goods owners or their lawful representatives on the goods destruction. The written consent shall be sent to the Customs Departments of the localities where the bonded warehouses are located. The goods destruction procedures shall comply with law provisions.

Article 38.- Tax-suspension warehouses

Tax-suspension warehouses are those set up for storing raw materials imported for the production by enterprises which own the tax-suspension warehouses. For raw materials imported and put into tax-suspension warehouses, import tax and other taxes shall not be paid yet.

Article 39.- Conditions for being permitted to set up tax-suspension warehouses

1. Being an enterprise established according to law provisions.

2. Exporting at least 50% of the products made by the enterprise from the raw materials imported and put into the tax-suspension warehouse.

3. Not owing any tax debts the payment of which is forced.

4. Having a system of adequate books and documents for strictly monitoring the export, import, ex-warehousing and warehousing according to law provisions.

5. The warehouse is built in an area convenient for the management and supervision by the customs office.

Article 40.- Procedures of application for setting up tax-suspension warehouses

1. An enterprise that wishes to set up a tax-suspension warehouse shall submit to the Customs Department of the locality where it operates two sets of dossier consisting of the following documents:

a/ An application for setting up a tax-suspension warehouse (made according to the form set by the General Department of Customs);

b/ The business registration certificate (a notarized copy);

c/ The diagram of the design of the tax-suspension warehouse;

d/ Operation rules of the tax-suspension warehouse.

2. Within 15 (fifteen) days after receiving the complete dossiers of application for setting up a tax-suspension warehouse, the Customs Department director shall issue a document on granting the license to set up the tax-suspension warehouse or a written reply clearly stating the disapproval reason if the enterprise lacks the conditions for setting up a tax-suspension warehouse as specified in Article 39 of this Decree.

3. The Customs Department directors shall issue decisions to revoke the licenses to operate the tax-suspension warehouses in the following cases:

a/ The enterprise sends a written request to the Customs Department director for termination of the operation of the tax-suspension warehouse;

b/ The enterprise fails to meet the requirements specified in Article 39 of this Decree.

4. The amount of raw materials left in the tax-suspension warehouse after its operation license is no longer valid shall be handled as follows:

a/ Where the goods owner no longer needs to use it and make a written request, the customs office shall carry out the procedures for re-exporting or destroying it according to law provisions;

b/ Where the goods owner has a written request for switching to another type of business, he/she must register and fill in a new customs declaration form. The customs office shall calculate taxes and issue a tax notice. The time for registration of the customs declaration and tax calculation shall be the time the operation license of the tax-suspension warehouse expires.

Article 41.- Customs procedures for goods put into and taken out of tax-suspension warehouses

The customs procedures for imported raw materials put into tax-suspension warehouses shall be the same as those for import goods, with the exception of tax calculation and payment procedures which shall be as follows:

1. The enterprise must register and fill in two separate customs declaration forms for the tax-suspended portion of imported raw materials and the portion of imported raw materials for production of to be-domestically consumed products.

2. The base for determining the percentage of tax-suspended imported raw materials shall be the percentage of export products inscribed in the investment license (if the enterprise exports its products according to the percentage inscribed in the investment license) or the percentage determined by the enterprise itself, which must not be lower than 50% of the products made from the imported raw materials stored in the tax-suspension warehouse. In both cases above, the enterprise must send a written registration to the Customs Department managing the tax-suspension warehouse before January 1 every year.

3. On the basis of the percentage of to be-domestically consumed products, which has been registered by the enterprise, the customs office shall effect the registration of the declarations, calculate and collect import tax on the portion of raw materials used for production of to be domestically-consumed products.

4. For the portion of imported raw materials put into tax-suspension warehouses for production of export products, the customs office shall not calculate the tax on the declaration but must determine clearly the goods names, categories and quantities thereon and record them in a monitoring book according to law provisions.

Article 42.- Handling of goods stored in tax-suspension warehouses, which are damaged or deteriorated

Goods stored in tax-suspension warehouses, which are damaged or deteriorated, thus failing to meet the production requirements, may go through customs procedures for re-export or destruction. The destruction thereof shall be effected as follows:

1. The enterprise shall send a document to the Customs Department managing the tax-suspension warehouse, clearly stating the reason for destruction, the names, categories and quantities of the raw materials, the import customs declaration (serial number, date).

2. The enterprise itself shall organize the destruction under the supervision of the customs office, tax office and environmental agency according to law provisions.

3. The destruction result must be recorded in a report, which is signed for certification by the tax-suspension warehouse owner and the representatives of the supervising agencies. The written record on destruction shall serve as a proof of the liquidation of the goods stored in the tax-suspension warehouse.

Article 43.- Liquidation of goods in tax-suspension warehouses

At the end of the plan year (December 31 every year), no later than January 31 of the subsequent year, the enterprises must make a list of import customs declarations together with the total amount of raw materials already imported under the tax-suspension regime, a list of export customs declarations together with the total quantity of to be-exported products and send them to the customs offices. After verifying the accuracy of these reports and compare them with the dossiers filed at the customs offices; basing themselves on the percentages of to be-exported products registered by the enterprises, the customs offices shall calculate taxes for the enterprises as follows:

1. If the export percentage is lower than the tax-suspension percentage, the enterprises must immediately pay the tax on the quantity of finished products, which is the difference between the quantity of to be-exported products and the quantity of actually-exported products. The late tax payment shall be handled according to law provisions.

2. If the export percentage is higher than the tax-suspension percentage, the enterprise shall be refunded the tax amount for the difference between the quantity of to be-exported products and the quantity of actually-exported products.

3. Enterprises having tax-suspension warehouses shall take responsibility before law for the accuracy and fullness of the sum-up reports prescribed in this Article.

Article 44.- Customs inspection and supervision of tax-suspension warehouses

1. The inspection and supervision by the customs offices of tax-suspension warehouses shall be mainly conducted during the processing of customs procedures for imported or exported goods to be stored in tax-suspension warehouses, during the liquidation of the goods stored in tax-suspension warehouses, and during the post-customs clearance inspection of the goods stored in tax-suspension warehouses. The customs offices shall neither directly supervise nor seal up tax-suspension warehouses.

2. Enterprises shall be responsible for organizing the management of tax-suspension warehouses, closely coordinating with the customs offices in conducting the tax-suspension warehouse inspection and supervision.

Section 4. FOR TRANSPORT MEANS ON EXIT, ENTRY OR IN TRANSIT

Article 45.- General provisions

1. Transport means on entry, exit or in transit across the Vietnamese territory must go through customs procedures at the border gates through which they leave, enter or transit the country. When carrying out the customs procedures, if the customs offices detect signs of law violation, the transport means operators must submit to the customs offices� requests for inspection and search according to law provisions.

2. Port authorities, airports, seaports and international railway stations shall have to send advance notices to the border-gate Customs Sub-Departments on the information specified in Article 56 of the Customs Law. Transporting organizations shall have to provide the border-gate Customs Sub-Departments with the information on goods, passengers, crews and people working on their transport means as well as other information related to the customs offices� work of management of transport means on exit, entry or in transit.

3. The information specified in Clause 2 of this Article shall be supplied in writing or via computers directly connected with the Customs Sub-Departments.

4. Transport means on exit, entry or in transit shall be subject to customs supervision as prescribed in Article 12 of this Decree.

5. Military transport means carrying civil passengers and goods on exit, entry or in transit must go through customs procedures like other transport means on exit, entry or in transit.

Article 46.- Aircraft on exit, entry or in transit

1. Immediately after an aircraft enters the country and the aviation agency has completed all flight formalities for passengers to leave the country and cargoes to be exported, the aircraft operators or their lawful representatives must submit to the airport customs office the following documents:

a/ The cargo and luggage declaration;

b/ The list of crew members and people working on the aircraft;

c/ The list of passengers.

2. Aircraft in transit, if making technical stops-over, shall not be required to go through customs declaration procedures but must be subject to customs supervision.

Article 47.- Sea-going ships on exit, entry or in transit

1. Customs procedures:

a/ Within one hour before a sea-going ship on exit or entry is ready to go through customs procedures, the port authority and the transporting organization shall have to notify the port customs office of the information specified in Clauses 2 and 3, Article 45 of this Decree;

b/ The customs office shall carry out procedures for the sea-going ship to leave or enter the country at the prescribed place. Where a competent State management body decides that sea-going ships anchor at other places on the Vietnamese sea area, the customs procedures for sea-going ships on exit or entry shall be carried out at these places.

2. The customs dossier consists of:

When carrying out customs procedures, the ship master or his/her lawful representative must present to the port customs authority the ship�s itinerary (for entries) and the diagram of the cargo arrangement on the ship and submit the following papers:

a/ The declaration of goods carried aboard the ship;

b/ The ship declaration, for entries;

c/ The list of materials, raw materials, fuels, food and foodstuff of the ship;

d/ The list of explosives, inflammables, anesthetics, toxins, weapons on the ship;

e/ The crew list;

f/ The list of passengers (if any);

g/ The crew members� goods and luggage declarations.

3. The documents of the submitted customs dossiers shall not be withdrawn and corrected, unless plausible reasons can be given and the correction of such documents must not affect the observance of the provisions of tax legislation and the export and import goods management policy, and be approved by the Customs Sub-Department director.

Article 48.- Sea-going ships, aircraft moving from ports to ports

1. Sea-going ships or aircraft moving from ports to ports are those being in the time of moving from one port to another for unloading of import goods or loading of export goods under the inspection and supervision by the customs offices.

2. When sea-going ships or aircraft moving from ports to ports, their operators or their lawful representatives must submit the cargo declarations to the customs offices.

3. The customs offices at the ports where sea-going ships or aircraft leave shall certify the dossiers and hand them over to their operators to bring to the customs offices at the ports where the sea-going ships or aircraft move in.

4. Cargoes moving from ports to ports, food and foodstuff warehouses of sea-going ships moving from ports to ports must be customs-sealed up, except for cases where the imported goods are left in cargo holds, not yet brought out of the ships.

Article 49.- International trains on exit, entry or in transit by railway

1. International trains on exit: When a train leaves the country at a border-gate station, the train captain or his/her lawful representative must submit to the station customs office the following papers:

a/ The declaration of the train�s components, the list and luggage declarations of the crew and people working on the train;

b/ The declaration of export goods, including transited goods, carriage transfer papers (for cargo trains);

c/ The list of passengers and their slips of unaccompanied luggage (for passenger trains);

d/ The declaration of fuels, materials, food and foodstuff of the train.

2. International trains on entry: When a train enters a country at a border-gate station, the train captain or his/her lawful representative must submit to the station customs office the following papers:

a/ The declaration of the train�s components, the list and luggage declarations of the crew and people working on the train;

b/ The list of import goods, carriage transfer papers (for cargo trains);

c/ The list of passengers and their slips of unaccompanied luggage (for passenger trains);

d/ The declaration of fuels, materials, food and foodstuff of the train;

e/ The extracts on goods to be unloaded at each inland international station.

3. International trains at inland international stations: When trains arrive at the inland stations, the train captains or their lawful representatives must submit to the station customs offices the following papers:

a/ The extract on imported goods, with the certification by the customs office at the border-gate station;

b/ Bills of lading;

c/ Transited goods forwarding paper (if there are international transited goods).

4. The managers of the international trains or the goods owners (if any) shall be responsible for ensuring the original conditions of goods and carriages during the process of transportation from the cargo-loading inland stations to the exit stations (for export goods) and from the entry stations to the cargo-unloading inland stations (for import goods).

Article 50.- Automobiles on exit, entry or in transit

When arriving at border gates, automobiles on exit or entry must park at prescribed sites for customs procedure completion. The customs declarers must declare and submit to the border-gate customs offices the following papers:

1. The customs declaration, for automobiles on exit, entry or in transit;

2. The declaration of export or import goods (if any);

3. The declaration of the driver�s exported or imported luggage;

4. The list of passengers (if any) and their luggage declarations.

Article 51.- Other transport means

For rudimentary transport means on exit, entry or in transit, their owners or operators must make declaration and submit to the customs offices the following papers:

1. The declaration of the export or import goods (if any).

2. The luggage declarations of the transport means operators and people working on the transport means and passengers (if any).

Article 52.- Transport means temporarily imported for re-export and temporarily exported for re-import for a given period

1. Transport means specified in this Article are tourist cars, motorbikes, and boats with or without motors.

2. Transport means temporarily imported for re-export and temporarily exported for re-import for a given period must be declared to the customs offices and subject to customs inspection and supervision.

3. For transport means temporarily imported for use within the border-gate area for no more than 48 (forty eight) hours or for use within the territory of the border district having the border gate for no more than 12 (twelve) hours, the permission of the heads of the border-gate police offices must be obtained.

4. For transport means temporarily imported for use within the territory of the provinces or cities having border gates for no more than five days, the permission of the directors of the provincial/municipal police offices of the localities where they are to be used must be obtained.

5. For transport means temporarily imported for use outside the territory of the provinces or cities having the border gates, the permission of the Minister of Public Security must be obtained.

6. For transport means temporarily imported for use in Vietnam, which fall in the category of transport means banned from use in Vietnam, the permission of the Prime Minister must be obtained.

7. For transport means temporarily exported for a given period, if they are re-imported through the same border gate, the permission of the Customs Sub-Department directors must be obtained; if re-imported through other border gates in the same provinces or cities having the export border gates, the permission of the Customs Department directors must be obtained; and if re-imported at border gates in other provinces or cities, the permission of the General Director of Customs must be obtained.

8. The customs dossier consists of:

a/ The customs declaration;

b/ The permit (except for cases of temporary import for use within the border-gate area);

c/ The circulation registration paper.

Chapter III

HANDLING OF VIOLATIONS

Article 53.- Handling of violations

1. The customs declarers and concerned organizations and individuals that violate the provisions of this Decree, shall, depending on the nature and seriousness of their violations, be handled administratively, pay compensation for damage (if any) or be examined for penal liability according to law provisions.

2. Customs officers and officials and concerned organizations and individuals who abuse their positions and/or powers to act against the provisions of this Decree, shall, depending on the nature and seriousness of their violations, be disciplined, pay compensation for material damage (if any) or be examined for penal liability according to law provisions.

Article 54.- Complaints and denunciations

1. Organizations and individuals shall be entitled to lodge complaints to the customs offices about the decisions of the one level-lower customs offices. Organizations and individuals shall be entitled to lodge complaints about or denunciations of law-breaking acts of customs officials or officers to the heads of the customs offices of different levels.

2. When receiving written complaints or denunciations, the heads of the customs offices of all levels shall have to consider, settle and reply them according to the provisions of the legislation on complaints and denunciations.

3. Organizations and individuals shall be entitled to initiate administrative lawsuits at administrative courts against the customs offices� administrative decisions or and customs officers� acts of violating administrative legislation according to law provisions.

Chapter IV

IMPLEMENTATION PROVISIONS

Article 55.- Implementation effect of the Decree

This Decree takes effect from January 1, 2002.

The Government�s Decree No. 16/1999/ND-CP of March 27, 1999 stipulating the customs procedures, customs supervision and customs fees, and the Prime Minister�s Decision No. 212/1998/QD-TTg of November 2, 1998 issuing the Regulation on bonded warehouses shall cease to be effective as from the date this Decree takes effect.

All previous provisions contrary to this Decree are hereby annulled.

Article 56.- Responsibility to implement the Decree

The ministers, the heads of the ministerial-level agencies, the heads of the agencies attached to the Government and the presidents of the People�s Committees of the provinces and centrally-run cities shall have to implement this Decree.

On behalf of the Government
Prime Minister
PHAN VAN KHAI