Vietnam: What is the application form for establishing bonded warehouses? What are the penalties for expanding bonded warehouses without the permission of customs authorities?
What are the requirements for establishing bonded warehouses in Vietnam?
Pursuant to Article 62 of the 2014 Customs Law, the requirements for establishment of bonded warehouses in Vietnam are as follows:
Article 62. Requirements for establishment of bonded warehouses, tax suspension warehouses and CFSs
1. Bonded warehouses and CFSs shall be established in areas that are home to:
a/ Seaports, international civil airports, inland import and export ports, land border checkpoints, international railway stations;
b/ Industrial parks, hi-tech parks, non-tariff zones and other zones as prescribed.
2. Tax suspension warehouses shall be established in the workshop's area of export production enterprises.
3. The General Director of Customs has the right to decide to establish, extend the operation duration, suspend and terminate the operation of bonded warehouses, tax suspension warehouses and CFSs.
4. The Government shall provide guidance on the establishment and operation of bonded warehouses, tax suspension warehouses and CFSs.
Article 10 of Decree 68/2016/ND-CP (amended and supplemented by Clause 6 Article 1 of Decree 67/2020/ND-CP) stipulates the requirements for establishing bonded warehouses in Vietnam as follows:
Article 10. Requirements for recognition of bonded warehouses
1. The area to be recognized as a bonded warehouse or yard must be located in the area prescribed in Clause 1 Article 62 of the Law on customs or the border-gate economic zone or the area included in the logistics center development planning approved by competent authorities.
2. The bonded warehouse or yard must be separated from surrounding areas by walls, fences, and meet customs inspection and supervision requirements, except for those located in border checkpoints or ports with walls or fences to keep it completely separated from surrounding areas.
3. Area
a) A bonded warehouse located within the boundaries of a seaport, inland waterway port, inland port, international airport terminal or international railway station must have a storage facility covering the minimum area of 1,000 m2;
b) A dedicated bonded warehouse must have a storage facility that covers the minimum area of 1,000 m2 or has the minimum volume of 1,000 m3;
c) A bonded warehouse located within the boundaries of an industrial zone must occupy a land plot covering the minimum area of 4,000 m2 (including warehouses, yards and other supporting structures), especially the storage facility that covers a minimum area of 1,000 m2;
d) A bonded warehouse other than those mentioned in Point a, Point b and Point c of this Clause must occupy a land plot covering a minimum area of 5,000 m2 (including warehouses, yards and other supporting structures), especially the storage facility that covers a minimum area of 1,000 m2;
dd) A bonded yard must cover a minimum area of 10,000 m2 while none of the requirements will be imposed on its storage facility.
4. The bonded warehouse must have software that is capable of storing, managing and providing online data to customs authorities, including information relating to names, categories, quantity and status of goods, times of receiving, dispatching and storing goods at the bonded warehouse as provided in the customs declaration for management under the automatic customs management and control system.
5. It must be equipped with a camera system which is connected online with its supervisory customs authority. All locations in the bonded warehouse or bonded yard (including its gate, entrance and internal parts, except for internal parts of a bonded warehouse which is used for storing frozen goods) must be monitored 24/7 and camera images must be kept for at least 06 months.
Thus, the requirements for establishing bonded warehouses in Vietnam include:
- Location of establishment:
+ Seaports, international civil airports, inland import and export ports, land border checkpoints, international railway stations;
- Industrial parks, hi-tech parks, non-tariff zones and other zones as prescribed.
- The bonded warehouse or yard must be separated from surrounding areas by walls, fences, and meet customs inspection and supervision requirements of Custom authorities
- Area:
+ A bonded warehouse located within the boundaries of a seaport, inland waterway port, inland port, international airport terminal or international railway station must have a storage facility covering the minimum area of 1,000 m2;
+ A dedicated bonded warehouse must have a storage facility that covers the minimum area of 1,000 m2 or has the minimum volume of 1,000 m3;
+ A bonded warehouse located within the boundaries of an industrial zone must occupy a land plot covering the minimum area of 4,000 m2 (including warehouses, yards and other supporting structures), especially the storage facility that covers a minimum area of 1,000 m2;
+ Remaining bonded warehouses must occupy a land plot covering a minimum area of 5,000 m2 (including warehouses, yards and other supporting structures), especially the storage facility that covers a minimum area of 1,000 m;
- The bonded warehouse must have software that is capable of storing, managing and providing online data to customs authorities
- It must be equipped with a camera system which is connected online with its supervisory customs authority.
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What is the application form for establishing bonded warehouses in Vietnam?
Pursuant to Decision 1480/2006/QD-TCHQ, the application form for establishing bonded warehouses in Vietnam is as follows:
Download the application form for establishing bonded warehouses in 2023: Here.
What are the penalties for expanding bonded warehouses in Vietnam without the permission of customs authorities?
In the provisions of Clause 2, Article 23 of Decree 128/2020 / ND-CP, the penalties for expanding bonded warehouses in Vietnam without the permission of customs authorities are:
Offenses against regulations on management of bonded warehouses, tax-suspension warehouses, container freight stations and duty-free shops
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2. A fine ranging from VND 2,000,000 to VND 5,000,000 shall be imposed for any of the following offenses:
a) Moving goods from one bonded warehouse to another without a written permission from the competent person of the customs authority in charge of the bonded warehouse;
b) Expanding, narrowing or relocating a duty-free shop, bonded warehouse, off-airport cargo terminal, container freight station or site for customs clearance, customs inspection and supervision without permission from the customs authority;
c) Providing banned services in the bonded warehouse or container freight station;
d) Failure to punctually submit reports on the bonded warehouse, tax-suspension warehouse or container freight station.
In the provisions of Clause 3, Article 5 of Decree 128/2020/ND-CP, fines for individuals and organizations are as follows:
Penalties and remedial measures
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3. Fines imposed upon individuals and organizations:
a) The fines mentioned in Chapter II of this Decree are imposed upon organizations. The fines imposed upon an individual is 1/2 of those imposed upon an organization, except for the cases specified in Points b and c Clause 2 of this Clause;
b) The fines for the offenses specified in Article 10 of this Decree are imposed upon individuals;
c) The fines for administrative offenses against tax administration specified in Articles 9 and 14 of this Decree are imposed upon both individuals and organizations;
d) Household businesses and households shall incur the same penalties as those incurred by individuals for committing administrative offenses specified in this Decree.
Thus, the act of expanding bonded warehouse without the permission of customs authorities shall be fined from VND 2,000,000 to VND 5,000,000 for organizations, and from VND 1,000,000 to VND 2,500,000 for individuals.
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