THE MINISTER OF FINANCE

DECIDES:

Article 1.- To promulgate together with this Decision the Regulation on customs management over goods on sale at duty-free shops.

Article 2.- This Decision takes effect 15 days after its publication in the Official Gazette. To annul the Finance Minister's Decision No. 54/2003/QD-BTC of April 16, 2003.

Article 3.- The General Director of Customs, the heads of the units under the Finance Ministry and the concerned organizations and individuals shall have to implement this Decision.

For the Finance Minister
Vice Minister
TRUONG CHI TRUNG

I. GENERAL PROVISIONS

1. Goods imported for sale at duty-free shops (hereinafter referred to as shops for short) shall be allowed to go through the customs procedures at the customs sub-departments managing the shops.

The customs procedures for goods imported for sale at the shops shall be the same as those for goods imported for business purpose. Tax shall be calculated only on import goods sold to people on entry with prices exceeding the duty-free luggage limits prescribed by law (tax shall be calculated and collected on excess quantity).

2. Import goods put on sale at the duty-free shops shall be stuck with stamps "Vietnam duty not paid," issued by the Finance Ministry under the supervision by customs offices, before being consigned into warehouses.

The position for sticking stamps on import goods sold at the duty-free shops shall comply with the provisions in Appendix 1 to this Decision.

3. Cosmetics of all kinds (on the list of goods subject to the quality management by the Health Ministry) permitted to be imported in service of business at the duty-free shops shall not have to be registered for circulation. Enterprises trading in duty-free goods shall be held responsible before law for the quality of cosmetics.

In cases where enterprises apply for permits to take cosmetics out of areas under the management by duty-free shops for sale in the domestic market, they must register such cosmetics for circulation according to the Health Ministry's regulations.

4. Customs offices shall not seal up storehouses and shops, not directly supervise nor directly carry out sale procedures. Once a month, customs offices shall check the shops' sale vouchers so as to liquidate the import declarations. In the process of liquidation, if deeming it necessary, the customs offices shall check the quantities of unsold goods.

5. Responsibilities of the shops:

5.1. To sell goods strictly according to procedures, to the right subjects and in the prescribed quantities.

5.2. To keep sale dossiers and vouchers according to the provisions of Section II below.

5.3. Once a month, the shops must send sale reports (made according to a set form) to the managing customs sub-departments for customs inspection and liquidation.

5.4. The shops must have computer systems linked to the managing customs sub-departments so that they can directly transmit to the customs offices:

- Sale data (names of purchasers, their passport or laissez-passer numbers, goods appellations, quantities, values).

- Data on unsold goods (goods appellations, codes, quantities and values).

6. Customs offices managing the shops shall have to open books to monitor goods imported for sale at the shops and data on sold and unsold goods, which are supplied by the shops under the provisions of Point 5.4 above.

II. PROVISIONS ON GOODS SALE

1. In cases where goods purchasers are Vietnam-based diplomatic missions, consular offices and representative offices of international organizations, which enjoy the tax-free quantity limits specified in the Government's Decree No. 73/CP of July 30, 1994:

1.1. Salespeople must check the following documents:

a/ Diplomatic passports, identity cards or diplomatic notes (if buyers are organizations).

b/ Duty-free goods quota books.

c/ Purchase authorization papers (for cases of goods purchase under authorization).

d/ The permits of the provincial/municipal customs departments (for goods being cars or motorcycles).

1.2. Salespeople must collect and archive the following documents:

a/ Cutting off the coupons corresponding to the sold goods and sticking them on the sale invoices.

b/ Sale invoices.

c/ Vouchers c and d prescribed at Point 1.1 above.

2. In cases where goods purchasers are foreign specialists engaged in implementation of ODA programs or projects in Vietnam, the duty-free quantity limits prescribed in the Prime Minister's Decision No. 211/1998/QD-TTg of October 31, 1998 shall apply; for overseas Vietnamese who return home to work at invitation of Vietnamese State agencies, the duty-free quantity limits prescribed in the Prime Minister's Decision No. 210/1999/QD-TTg of October 27, 1999 shall apply.

2.1. Pre-sale procedures: The shops must produce the documents prescribed at Point 2.2.c below to the customs sub-departments managing them for certification and reconciliation of goods purchased at the shops.

2.2. Salespersons must check the following documents:

a/ Passports.

b/ Declarations for entry into or exit from Vietnam.

c/ Written certifications by the Planning and Investment Ministry (for ODA specialists) or of the ministries or branches inviting overseas Vietnamese to return home to work (for overseas Vietnamese).

2.3. Salespersons must collect and keep the following documents:

a/ Sale invoices.

b/ They must fully inscribe the full names, passport serial numbers and entry dates of goods purchasers on sale invoices.

c/ For the documents prescribed at Point 2.2.c above:

- They shall collect copies of written certifications by competent State agencies with reconciliation certification by the customs offices, if the purchasers have not yet purchased up goods within their duty-free quantity limits.

- They shall collect originals of written certifications by competent State agencies, if the purchasers have purchased up goods within their duty-free quantity limits.

3. In cases where persons on entry purchase goods at duty-free shops at import border-gates and inland duty-free shops:

3.1. Salespersons must check the following documents:

a/ Passports.

b/ Declarations for entry into or exit from Vietnam.

c/ After selling goods, salespersons must inscribe the total value of sold goods, sign and clearly inscribe their full names in entry/exit declarations.

d/ They must fully inscribe the full names, passport serial numbers and entry dates of goods purchasers on sale invoices.

3.2. Salespersons must collect and keep the following documents:

a/ Sale invoices.

b/ Copies of entry/exit declarations (after they are inscribed according to the provisions of Point 3.1.c above).

4. In cases where persons on exit purchase goods at inland duty-free shops:

4.1. Salespersons must check the following documents:

a/ Passports.

b/ Booked air tickets for exit.

4.2. Salespersons must collect and keep the following documents:

a/ Sale invoices (with the export border-gate customs' certification of actual exportation).

b/ They shall fully inscribe the full names, passport serial numbers, flight numbers and exit dates of the goods purchasers in sale invoices.

4.3. Customs procedures at the customs sub-departments managing the shops:

a/ Checking and comparing the sold goods with the sale invoices.

b/ Sealing up the sold goods so that the shops can transport them to the export border-gates.

4.4. Customs procedures at the export border-gates:

a/ Checking the seals stuck by the customs offices managing the shops.

b/ Supervising to ensure that goods are actually exported.

c/ Certifying the actual exportation in each sale invoice.

5. If persons on exit purchase goods at duty-free shops at export border-gates:

5.1. Salespersons must check the following documents:

a/ Passports or entry/exit laissez-passers as prescribed.

b/ Documents proving lawful origins of foreign currencies (for cases where persons on exit purchase goods with value exceeding the foreign-currency limit, which, as prescribed, must be declared to the customs office according to regulations of the State Bank of Vietnam).

5.2. Salespersons must:

a/ Fully inscribe full names, serial numbers of passports (laissez-passers) and exit dates of goods purchasers in sale invoices.

b/ Archive sale invoices.

5.3. Tourists on exit by sea without entry visas and declarations for entry into or exit from Vietnam must comply with the provisions of Point 5.2 above.

6. For duty-free goods sold on international flights:

6.1. When taking goods from warehouses on board aircraft, enterprises must make "ex-warehousing bills," clearly stating goods items, quantities and value of such goods lot.

6.2. For exit flights: An enterprise may make a general invoice (3 copies) for all goods sold aboard aircraft of a flight, with the first copy to be kept by it, the second for tax exemption liquidation with the tax office and the third copy to be submitted to the customs.

6.3. For entry flights: Goods purchasers on board an entry flight are required to fill Vietnam entry/exit declaration forms and goods sellers shall give certifications in such declarations like certification contents given by salespersons at entry duty-free shops (prescribed at Point 3.1.c above) and issue sale invoices according to regulations.

6.4. Within 24 hours after the end of an exit or entry flight, enterprises must submit to the customs office managing the shop the detailed list of goods sold to passengers of such flight, which contains the following norms: Full names of goods purchasers, their passports' serial numbers, flight number, exit/entry date certified by the goods seller; general invoice and ex-warehousing bills to serve as basis for liquidation of dossiers.

7. For duty-free goods in service of needs of sailors during the time their ships are anchored or moored at Vietnamese ports for use onboard and outside Vietnam's territorial seas:

7.1. In case of purchase of duty-free goods in service of personal needs during the time their ships are anchored or moored before exit:

Sailors on board are allowed to purchase duty-free goods at duty-free shops only once in the following specific quantities:

a/ Quantities:

- Liquor of an alcoholic strength of 22^o vol or higher: 1.5 liters.

- Liquor of an alcoholic strength of under 22^o vol: 2 liters.

- Alcoholic drinks, beer: 3 liters.

- Cigarette: 400 cigarettes.

- Cigar: 100 cigars.

b/ Regulations on goods sale:

- Shipmasters or the ships' representatives shall make common orders of goods to be purchased at a time for all sailors who have needs to use such goods in the above-said quantities.

- Salespersons shall:

+ Check the goods orders of the shipmasters or the ships' representatives and the lists of sailors.

+ Fully inscribe full names and serial numbers of passports of shipmasters or ships' representatives, identification numbers of transport means and entry dates of ships in sale invoices, then sign such sale invoices.

+ Archive sale invoices, goods orders and lists of sailors for use as basis for liquidation of dossiers.

7.2. In case of purchase of duty-free goods to serve the needs of sailors for their next voyage outside Vietnam's territorial seas, they shall be allowed to purchase such goods at duty-free shops at places where their ships depart.

- Regulations on goods sale:

Shipmasters or ships' representatives shall make goods orders according to sailors' needs.

- Salespersons shall:

+ Check goods orders of shipmasters or ships' representatives and list of sailors, which shall serve as basis for liquidation of dossiers.

+ Fully inscribe full names and serial numbers of passports of shipmasters or ships' representatives, identification numbers of transport means and entry dates of ships in sale invoices, then sign such sale invoices.

+ Archive sale invoices, goods orders and lists of sailors.

Goods purchased at duty-free shops on goods orders to serve needs of sailors for their next voyage (for use outside Vietnam's territorial seas) must be put into the ships' holds so that the customs offices can seal up and supervise them until the ships depart.

III. PROVISIONS ON GOODS MADE IN VIETNAM AND IMPORTED GOODS BEING LAWFULLY CIRCULATED IN THE VIETNAMESE MARKET, WHICH ARE PUT ON SALE AT DUTY-FREE SHOPS

1. Goods made in Vietnam include goods produced from raw materials and materials available at home and those produced from imported raw materials and materials.

2. Goods made in Vietnam and put on sale at duty-free shops are goods items not on the list of goods banned from export. For goods items subject to conditional export, the law-prescribed permits of specialized management agencies are required.

3. Goods already imported and currently in lawful circulation in the Vietnamese market (hereinafter called imported goods), when being put on sale at duty-free shops, shall be considered export goods and must comply with the goods item policies according to law provisions.

4. The customs procedures for goods made in Vietnam from imported raw materials and materials; and imported goods on sale at duty-free shops:

4.1. Goods-selling enterprises shall register export declarations (form HQ/2002-XK), goods-purchasing enterprises (enterprises dealing in duty-free goods) shall register import declarations (form HQ/2002-NK) together with relevant customs dossier sets as for export or import goods under purchase/sale contracts.

For imported goods, the initial import vouchers, including: import declarations, tax receipts of all kinds (copies with certifications sealed and signed by enterprises' directors) must be additionally submitted.

Goods-selling enterprises and goods-purchasing enterprises shall carry out the customs procedures at the customs sub-departments managing the duty-free shops.

4.2. The customs sub-departments managing the duty-free shops shall have to carry out the procedures for exporting or importing goods lots according to current regulations, particularly for:

- Declaration forms HQ/2002-XK: they shall certify that the customs procedures have been completed and affix seals in box 26, but shall not certify the actual export and affix seals in box 27.

- They shall open books for separately monitoring such goods.

4.3. Daily, basing themselves on invoices of payment with customers, the goods-purchasing enterprises shall have to sum up quantities of goods sold in the day and make reports on goods sale in the day, then submit them to the customs offices managing duty-free shops.

4.4. Basing themselves on monitoring books and daily goods sale reports, and when import goods stated in declaration form HQ/2002-NK are sold out, the goods-purchasing enterprises shall have to notify such to the goods-selling enterprises, so that they can jointly contact the shop-managing customs sub-departments for the latter's inspection, comparison, certification and affixture of actual import seals in box 27 of declaration forms HQ/2002-XK (including declarations kept at the customs offices and declarations of the goods-selling enterprises) which shall serve as basis for liquidation of dossiers.

5. The provisions of this Section shall apply only to enterprises wishing to enjoy tax reimbursement according to the provisions of the tax legislation.

IV. PROVISIONS ON IMPORTED GOODS ON SALE AT DUTY-FREE SHOPS WHICH CHANGE THEIR USE PURPOSES

1. For re-export goods:

1.1. When carrying out the re-export procedures, enterprises must submit the following documents:

- The written requests for re-export.

- The Trade Ministry's permits (if the import was permitted by the Trade Ministry).

1.2. Re-export customs procedures:

- The re-export customs procedures shall be the same as those prescribed for re-export goods lots.

- The customs sub-departments managing the shops shall carry out the re-export procedures.

2. For goods transferred for sale in domestic market:

2.1. When wishing to transfer imported goods on sale at duty-free shops into inland for consumption, enterprises must submit to the customs sub-departments managing the shops:

- Written requests.

- The Trade Ministry's permits (for goods subject to conditional import).

2.2. The customs procedures for transferring goods into inland for consumption shall be the same as those prescribed for goods imported for business purpose.

V. PROVISIONS ON LIQUIDATION

1. A liquidation dossier comprises:

1.1. Vouchers on goods sold to each subject according to provisions of Section II above.

1.2. The shop's monthly goods sale report.

1.3. Other documents (if any).

The liquidation shall be effected on a monthly basis. Annually, the customs sub-departments managing the shops shall check unsold goods.

The shops shall have to archive sale dossiers and vouchers (according to each type of goods-purchasing subject prescribed in Section II above) and produce them to the customs offices when they conduct inspection and liquidation.

2. Liquidation procedures:

- Monthly, the customs sub-departments managing the shops shall liquidate quantities of goods sold in the month once in the first week of the subsequent month. When the customs offices conduct the inspection and liquidation, the shops must produce the dossiers mentioned at Point 1, Part V above and other relevant books and documents (if the customs offices so request).

- In the course of liquidation, if deeming it necessary, the customs offices shall check unsold goods.

- After the liquidation, the shops must keep the sale dossiers for a duration prescribed by law.

3. Liquidation in cases of broken or destroyed goods:

3.1. For goods broken in the course of transport, the enterprises must submit the written explanations thereon and expertising certificates of competent agencies or certifications of local administrations.

For cases where goods are broken in small quantities (a few units) or of small values, the enterprises shall submit written explanations thereon to the customs offices managing the shops for liquidation certification without having to submit expertising certificates or certifications of local administrations.

3.2. For goods with expired use durations, damaged goods or goods deteriorated in quality, the enterprises must submit written explanations and expertising certificates.

3.3. Destruction procedures shall comply with law provisions.

For the Finance Minister
Vice Minister
TRUONG CHI TRUNG