THE MINISTRY OF FINANCE - THE MINISTRY OF TRADE-THE MINISTRY OF THE INTERIOR-THE GENERAL DEPARTMENT OF CUSTOMS

JOINT CIRCULAR No.30/1998/TTLT-BTC-BTM-BNV-TCHQ OF MARCH 16, 1998 ON THE AFFIXTURE OF IMPORT GOODS STAMPS

Pursuant to Directive No.853/1997/CT-TTg of October 11, 1997 of the Prime Minister on the fight against smuggling in the new situation;

Pursuant to Official Dispatch No.311/VPCP-VI of January 24, 1998 of the Office of the Government notifying the Prime Minister's direction on the affixture of import goods stamps;

The Ministry of Finance, the Ministry of Trade, the Ministry of the Interior and the General Department of Customs hereby jointly provide the following guidance on the stamping of the imported goods OF four groups including electronic goods, electric-refrigerating goods, motors and construction materials:

A. GOODS SUBJECT TO THE AFFIXTURE OF IMPORT GOODS STAMPS

1. As from 8.00 hours on April 1st, 1998 all the following goods items which are manufactured outside Vietnam and imported or circulated on the market by business organizations and individuals, including goods left in stock, being on sale or transported en route, shall have to be affixed with import goods stamps as prescribed:

- Complete television sets.

- Complete video cassette recorders.

- Complete refrigerators for domestic use.

- Independently-operated air-conditioners of window or wall types.

- Motors.

The above-mentioned goods items include both brand new and used ones.

- Sanitary ceramics: toilet bowls, wash basins.

1.1. The goods items prescribed in Point 1 which are imported from April 1st, 1998 must be affixed with stamps by the customs office(s) at the goods inspection place and before the completion of customs procedures. Importing organizations and individuals shall have to create every condition for the customs office(s) to carry out the stamping procedures in a smooth, fast and safe manner according to the provisions of this Circular. If the quantity of imported goods to be stamped at a border gate is too large, the goods owners shall have to unpack them to help the customs officer affix stamps quickly.

1.2. Organizations and individuals that deal in the goods items prescribed in Point 1 above, including those to be used for trade promotion or lottery prizes but still left in stock, shall have to take stock of them, then make and submit declarations (according to the set form) to the market management agency for examination and verification before the tax agency affixes import goods stamps as prescribed.

a/ Distribution of declaration forms:

Declaration forms for imported goods left in stock and subject to stamp affixture shall be distributed by the market management agency. Organizations and individuals dealing in the goods items subject to stamp affixture shall receive declaration forms at the place of submission of declarations forms stated in Point b below. The tax agency shall have to print and distribute declaration forms sufficiently to the market management agency for distribution to business subjects.

b/ Place of submission of declaration forms:

- State enterprises and foreign-invested enterprises shall submit declaration forms at the head office of the Taxation Departments of the provinces or cities directly under the Central Government.

- Limited liability companies, private enterprises, stock company and cooperatives shall submit declaration forms at the head office of the taxation bureaus of districts, precincts or provincial towns.

- Private business households shall submit declaration forms at the head office of the People's Committees of communes, wards or district townships.

The market management agency and the tax agency shall send their staff to the above-mentioned places to regularly distribute and receive declaration forms in time. Each declaration form shall be made in three copies: one copy shall be returned to the declarer, one sent to the tax agency and the third kept by the market management agency. To avoid wrong doings, officers who receive declaration forms shall have to check the declared contents and sign to verify them.

c/ Time limit for submission of declaration forms:

The time limit for submission of declaration forms starts from 8 hours on April 1, 1998 and ends at the latest at 16 hours on April 6, 1998.

Upon the expiry of this time limit, the market management agency and the tax agency shall make reports confirming the number of declaration forms received from business subjects.

d/ Time limit for stamp affixture shall start on April 1st, 1998 and end at 16:00 hours on April 15, 1998. Within such time limit the tax agency shall position an adequate number of tax officers to affix stamps according to the prescribed schedule.

e/ The market management agency shall check invoices and vouchers proving the lawful origin of the declared goods and sign to certify the actual quantity of goods to be affixed with stamps by the tax agency. Invoices and vouchers that prove the lawful origin of the declared goods shall comply with Section B, Part II of Circular No.73-TC/TCT of October 20, 1997 of the Ministry of Finance guiding the regime of invoices and vouchers for goods circulated on the market. Organizations and individuals shall have to produce invoices and vouchers at the request of the tax agency and the market management agency.

1.3 The imported goods items prescribed in Point 1 above must, if confiscated, be affixed with stamps before sale. The agency that issues a decision to confiscate them shall have to inform the concerned tax agency of the quantity of confiscated goods for stamp affixture. For goods which are confiscated by decision of the customs agency due to some violation, they shall be affixed with stamps directly by the customs agency.

2. The imported goods items prescribed in Point 1 shall not be subject to stamp affixture in the following cases:

2.1. They are imported to meet daily life needs and the importing organizations or individuals are eligible for import tax exemption. If the importing organizations or individuals want to sell them, they shall have to declare to the customs agency for import tax payment and such goods must be affixed with stamps before sale.

2.2. They are imported to be sold at duty-free shops.

2.3. They are transported in transit, temporarily imported for re-export or brought by the customs agency from the first entry border gate to the place of inspection. In the last case, there must be a decision of the head of the customs agency and the transported goods must be lead-sealed or escorted by customs officers when necessary.

2.4. They are imported into bonded warehouses or export processing zones.

3. In order to distinguish home-made goods from imported goods, organizations and individuals that are permitted to import raw materials, materials, accessories and components for the production or assembly of complete products to be consumed domestically shall have to publicize the trade marks of their products already registered with competent State agencies and at the same time announce them on the mass media and at the sale places or agents so that the inspection and control forces and the people can know and avoid possible fraudulent acts.

B. IMPORT GOODS STAMPS AND AFFIXTURE OF STAMPS

1. Stamping regulations:

The imported goods items prescribed in Point 1 of Section A shall be affixed with stamps as follows:

1.1. Complete television sets shall be affixed with stamps on the top at the rear.

1.2. Video cassette recorders shall be affixed with stamps on the top cover to the right of the rear corner.

1.3. Complete refrigerators for domestic use shall be affixed with stamps on the top surface to the right.

1.4. Air-conditioners shall be affixed with stamps on the top surface to the right or on the right of the top surface of the cooling block for two-block ones.

1.5. Motors shall be affixed with stamps on the engine body to the side where the starting wheel is fit.

1.6. Ceramic toilet bowls shall be affixed with stamps on the top surface to the rear, even for toilet bowls accompanied with toilet tanks.

1.7. Ceramic wash basins shall be affixed with stamps on the top surface to the right, even for wash basins with support.

2. Distribution and management of stamps:

2.1. Import goods stamps shall be uniformly issued by the Ministry of Finance. The General Department of Taxation shall have to print and distribute in time and sufficiently import goods stamps to localities and the customs branch for organizing the stamp affixture according to regulations.

All cases of printing, issuing, distributing or using counterfeit stamps shall be strictly dealt with according to law.

2.2. Import goods stamps shall be managed and used according to Decision No.529-TC/TCT of December 22, 1992 regarding the regulation on the management of tax stamps and Decision No.297-TC/TCT of March 16, 1998 on the issuance, printing, management and use of import goods stamps of the Ministry of Finance.

The hand-over of stamps to business organizations or individuals to affix by themselves is strictly forbidden.

2.3. Business organizations and individuals shall not have to pay any fee for the affixture of import goods stamps.

C. HANDLING OF VIOLATIONS AND COMMENDATION

1. Handling of violations:

1.1. Organizations and individuals dealing in goods items subject to stamp affixture that make false declarations shall be handled as follows:

- If the declared quantity of goods is smaller than the actual quantity of goods, only the declared quantity of goods shall be affixed with stamp, any undeclared goods, if detected, shall be confiscated and the goods owner shall be administratively sanctioned or, in serious cases, examined for penal liability.

- If the declared quantity of goods is larger than the actual quantity of goods, only the actual quantity of goods shall be affixed with stamps and the goods owner shall be administratively sanctioned and the level of sanction shall depend on the seriousness of his/her violation.

To ensure normal business operations, organizations and individuals that have made declarations shall be allowed to continue buying in or selling out goods given that they have adequate valid invoices and vouchers explaining the difference between the actual quantity of goods and the declared quantity of goods.

- In cases where the policy for import goods stamp affixture is abused by a business organization or individual that declares home-made or -assembled goods for import goods stamp affixture in order to cheat consumers, such goods shall be confiscated or, For serious cases, the violator shall be examined for penal liability.

1.2. For imported goods that have been declared but without sufficient and valid invoices and vouchers proving their lawful origins, they shall be subject to turnover tax and profit tax when circulated. These goods shall be affixed with stamps only after the goods owners have executed the handling decision. If they fail to do so, the goods shall be confiscated.

1.3. As from April 16, 1998 all the imported goods items prescribed in Point 1, Section A above which are circulated on the market, including goods left in stock, being on sale or transported en route, without stamp affixed thereon as prescribed shall be regarded as smuggled goods and confiscated and the goods owner shall be administratively sanctioned or, in serious cases, examined for penal liability.

1.4. Organizations and individuals dealing in goods which are subject to stamp affixture but not yet affixed with stamps as prescribed shall be administratively inspected or, in serious cases, examined for penal liability, and the goods not yet affixed with stamps shall be confiscated.

1.5. Organizations or individuals that violate the regulations on stamp affixture or assist in consuming or legitimizing imported goods prescribed in Point 1, Section A shall be handled according to law.

2. Commendation:

Organizations and individuals that detect or assist inspection and control forces in detecting or seizing imported goods which are subject to stamp affixture but not yet affixed with stamps or affixed with counterfeit stamps, shall be commended according to current regulations.

3. Management of confiscated goods:

The agency that decides to confiscate imported goods involved in the violation of the stamping regulations shall have to manage and organize the sale of the confiscated goods as well as use the proceeds therefrom according to current stipulations of the Government and the guidance of the Ministry of Finance.

D. ORGANIZATION OF IMPLEMENTATION

1. The Ministry of Finance, the Ministry of Trade, the Ministry of the Interior and the General Department of Customs shall have to direct their attached units to implement the provisions of this Circular; and to promptly solve problems confronted by ministries, branches, localities and business organizations as well as individuals for fruitful implementation of the stamp affixture.

2. The presidents of the People's Committees of the provinces and cities directly under the Central Government shall have to direct the local branches and levels to implement the policy of affixing stamps on imported goods, inspect and control their circulation on the market as prescribed.

3. The Ministry of Industry, the Ministry of Construction and the Ministry of Science, Technology and Environment shall have to give advice and assist the above-mentioned four ministries in implementing the Circular at the latter's request.

4. The Ministry of Trade (the Market Management Department) shall assume the prime responsibility and coordinate with various branches and levels in inspecting and controlling imported goods subject to stamp affixture which are circulating on the domestic market.

5. The central and local news and press agencies are requested to intensify the propaganda for the stamp affixture policy; to guide and explain the contents of the Circular so that business organizations and individuals shall better understand and implement them and the people render their sympathy and support.

6. The affixture of stamps on three imported goods items: bottled alcohol, complete bicycles and electric fans of all kinds shall still comply with Joint Circular No.77/1997/TTLT-BTC-BTM-BNV-TCHQ of November 1, 1997.

7. In the course of implementation, the branches and localities shall oversee, sum up and report problems to the Ministry of Finance and the concerned ministries and branches. They shall daily send flash reports on the implementation results and arising problems that need to be promptly addressed to the standing bureau of the Steering Committee for affixture of import goods stamps for drawing experiences and timely direction.

This Circular takes effect from April 1, 1998.

For the Minister of Trade

Vice Minister

HO HUAN NGHIEM

For the Minister of Finance

Vice Minister

VU MONG GIAO

For The General Director the General Department of Customs

Deputy General Director

NGUYEN VAN CAM

For the Minister of the Interior

Vice Minister

LE THE TIEM