Recently, the Government of Vietnam issued Decree No. 67/2020/NĐ-CP providing amendments to Decree No. 68/2016/NĐ-CP dated July 01, 2016 of Vietnam’s Government on requirements for trading of duty-free goods, storage facilities, locations for customs clearance procedures, commodity gathering, customs inspection and supervision.
According to Decree No. 67/2020/NĐ-CP of Vietnam’s Government, one of the cases of revocation of certificate of eligibility to sell duty-free goods from August 10, 2020 is “after the suspension period prescribed in Clause 5 Article 7 of Decree No. 68/2016/NĐ-CP, if the enterprise trading duty-free goods fails to give a notification of resumption of duty-free trading, which is made according to Form No. 02 in the Appendix enclosed herewith, to the provincial Customs Department that has given the notification of suspension of duty-free trading to the enterprise”.
Period of suspension of duty-free business activities shall not exceed six months since the notice is issued. Thus, from August 10, 220, after this suspension period, if the enterprise trading duty-free goods fails to give a notification of resumption of duty-free trading, its certificate of eligibility to sell duty-free goods shall be revoked.
Procedures for revocation of certificate of eligibility to sell duty-free goods are as follows:
- The enterprise shall send a written request for approval for its termination of duty-free trading to the provincial Customs Department managing its duty-free trading.
- The provincial Customs Department shall give a notification of termination of duty-free trading according to Form No. 05 in the Appendix enclosed herewith within 05 working days from receipt of the request from the enterprise or upon detection of one of the violations committed by the enterprise as prescribed in Point b, Point c, Point d and Point dd Clause 1 of this Article;
- After receipt of notification of termination of duty-free trading from the provincial Customs Department, the enterprise shall:
+ make statement of duty-free goods sold according to Article 21 and Article 22 of Decree No. 167/2016/NĐ-CP from the end of the previous financial year to the time of notification of termination of duty-free trading and the plan for handling of inventory at the duty-free shop and duty-free warehouse, except the case in Point b Clause 1 of this Article; submit such statement and plan to the Customs Sub-department managing the duty-free shop and duty-free warehouse within 15 days from the receipt of the notification of termination of duty-free trading from the provincial Customs Department;
+ follow procedures for re-exportation, re-importation or home use of the goods in inventory at the duty-free shop and duty-free warehouse within 30 days after the customs authority has inspected the enterprise’s statement. If this period needs to be extended, the enterprise shall send a written request for extension to the Customs Sub-department managing the duty-free shop and duty-free warehouse; the enterprise shall be granted an extension which shall not exceed 30 days. Damaged, degraded, low-quality or expired goods shall be treated in accordance with Clause 8 Article 6 and Clause 1 Article 19 of Decree No. 167/2016/NĐ-CP.
- The Customs Sub-department managing the duty-free shop and duty-free warehouse shall:
+ receive and inspect the enterprise’s statement according to Clause 6, Clause 8, Clause 9 and Clause 10 Article 21 of Decree No. 167/2016/NĐ-CP;
+ receive and inspect customs dossiers, carry out physical inspections and grant clearance to goods to be re-exported, re-imported or sent for home use in accordance with regulations of the Law on customs;
+ grant extension to the period for completing procedures for re-exportation, re-importation or home use of goods in inventory at the duty-free shop and duty-free warehouse within 03 working days from receipt of the request from the enterprise, and handle damaged, degraded, low-quality or expired goods in the case prescribed in Point c.2 Clause 2 of this Article;
+ Within 03 working days upon completion of handling of the inventory at the duty-free shop and duty-free warehouse, report handling results to and request the provincial Customs Department to terminate operation of the duty-free shop and duty-free warehouse.
- The provincial Customs Department shall:
Within 03 working days from receipt of the report from the Customs Sub-department managing the duty-free shop and duty-free warehouse as prescribed in Point d of this Clause, report the case to the Director General of the General Department of Customs for issuing a decision on revocation of certificate of eligibility to sell duty-free goods.
- Responsibility of the General Department of Customs:
The General Department of Customs shall issue a decision on revocation of certificate of eligibility to sell duty-free goods within 05 working days from receipt of the report from the provincial Customs Department.
View relevant provisions at: Decree No. 67/2020/NĐ-CP of Vietnam’s Government takes effect from August 10, 2020.
Thu Ba
Address: | 19 Nguyen Gia Thieu, Vo Thi Sau Ward, District 3, Ho Chi Minh City |
Phone: | (028) 7302 2286 |
E-mail: | info@lawnet.vn |