Vietnam: What is the newest bonded warehouse lease contract template? What is the validity period of a bonded warehouse lease contract?
What is the newest bonded warehouse lease contract template in Vietnam?
According to Clause 10, Article 4 of the 2014 Customs Law, bonded warehouse means a depot for storing commodities for which customs formalities have been completed and which are stored pending their export; commodities sent from abroad and stored pending their re-export or their import into Vietnam.
At the same time, under Article 84 of Decree 08/2015/ND-CP on the bonded warehouse lease
Bonded warehouse lease
1. Entities who are entitled to rent bonded warehouses shall include:
a) Vietnamese organizations or individuals who obtain an import and export permit and come from different economic sectors;
b) Foreign organizations and individuals.
2. The bonded warehouse lease contract:
a) Bonded warehouse lease contract shall be agreed between a bonded warehouse proprietor and a freight owner in accordance with laws, except when that freight owner is also the bonded warehouse proprietor;
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Thus, the bonded warehouse lease contract shall be agreed between a bonded warehouse proprietor and a freight owner in accordance with laws, except when that freight owner is also the bonded warehouse proprietor.
Currently, the law also does not have specific regulations on the bonded warehouse lease contract template.
Therefore, bonded warehouse proprietors and freight owners can refer to the following bonded warehouse lease contract template.
DOWNLOAD the bonded warehouse lease contract template: here.
What is the validity period of a bonded warehouse lease contract in Vietnam?
The validity period of a bonded warehouse lease contract in Vietnam is specified in Clause 2, Article 84 of Decree 08/2015/ND-CP as follows:
Bonded warehouse lease
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2. The bonded warehouse lease contract:
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b) Lease validity and term shall be agreed between the freight owner and bonded warehouse proprietor under the lease contract but shall not exceed the duration of freight storage at bonded warehouses in accordance with regulations laid down in Clause 1 Article 61 of the Customs Law;
c) If the freight owner or the person authorized by the freight owner fails to move their freight out of bonded warehouses within the validity and term of lease, or the freight owner or the person authorized by the freight owner sends a written request for freight liquidation, the Customs Department shall liquidate commodities stored at bonded warehouses in accordance with laws.
At the same time, Article 61 of the 2014 Customs Law stipulates:
Commodities stored in bonded warehouses, tax suspension warehouses and CFSs
1. commodities shall be stored in bonded warehouses within 12 months from the date of their consignment. In case of having reasonable grounds, directors of Customs Departments in charge of managing bonded warehouses may extend this time limit once for not more than 12 months.
2. The time limit for storing materials and supplies in tax suspension warehouses for export production is 12 months from the date of their consignment. In case of having reasonable grounds according to the requirement of the production process, heads of Customs Sub-Departments in charge of tax suspension warehouses may grant an extension for the time limit. The extension must be conformable with the production cycle.
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According to the above provisions, the lease validity and term shall be agreed upon between the freight owner and bonded warehouse proprietor under the lease contract but shall not exceed the duration of freight storage at bonded warehouses.
Commodities shall be stored in bonded warehouses within 12 months from the date of their consignment. In case of having reasonable grounds, directors of Customs Departments in charge of managing bonded warehouses may extend this time limit once for not more than 12 months.
Thus, the validity period of a bonded warehouse lease contract in Vietnam shall be agreed upon by the parties but must not exceed 12 months. The Director of the Customs Department may extend this time limit in case of request.
What action is taken by the bonded warehouse proprietor who wishes to destroy the commodity that is broken or damaged during storage in Vietnam?
In case of destruction of the commodity that is broken or damaged during storage, Clause 4, Article 86 of Decree 08/2015/ND-CP specifies as follows:
Management and storage of commodities at bonded warehouses
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2. Commodities moving in or out of bonded warehouses must follow customs procedures as required by laws. Especially for commodities such as machinery, equipment or other commodities coming from inland areas which are moved in bonded warehouses to serve the purpose of packaging, classification and maintenance, the freight owner or person authorized by the freight owner can choose not to carry out customs formalities, but is required to send a detailed notification to the Customs Sub-department in charge of bonded warehouses with the aim of carrying out customs monitoring activities.
3. Necessary equipment, information technology shall be used to manage commodities moving in or out of bonded warehouses, and information about current status of commodities and operation of bonded warehouses shall be provided through the information technology facilities connected with customs authorities.
4. If the bonded warehouse proprietor wishes to destroy the commodity which is broken, damaged, decrease their quality, or exceeds its expiry date during storage, that proprietor must reach an agreement with the freight owner or legal representative of the freight owner on such destruction. The agreement shall be sent to the Customs Department where the bonded warehouse is located for the purpose of carry out the customs monitoring. The freight owner or bonded warehouse proprietor shall be held responsible for carrying out such destruction and liable for destruction costs in accordance with laws.
Thus, if the bonded warehouse proprietor wishes to destroy the commodity that is broken or damaged during storage, that proprietor must reach an agreement with the freight owner or legal representative of the freight owner on such destruction.
The agreement shall be sent to the Customs Department where the bonded warehouse is located to carry out the customs monitoring.
The freight owner or bonded warehouse proprietor shall be held responsible for carrying out such destruction and liable for destruction costs in accordance with laws.
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