CIRCULAR

GUIDING THE PRIME MINISTER'S DECISION NO. 93/2009/QD-TTG OF JULY 10, 2009, AMENDING AND SUPPLEMENTING CLAUSE 4, ARTICLE 21 OF THE PRIME MINISTER'S DECISION NO. 33/2009/ QD-TTG OF MARCH 2,2009, PROMULGATING FINANCIAL MECHANISMS AND POLICIES APPLICABLE TO BORDER-GATE ECONOMIC ZONES

Pursuant to the Government's Decree No. 29/2008/ND-CP of March 14, 2008, on industrial parks, export-processing zones and economic-zones;
Pursuant to the Government's Decree No. 118/2008/ND-CP of November 27, 2008, defining the functions, tasks, powers and organizational structure of the Ministry of Finance;
Pursuant to the Prime Minister's Decision No. 93/2009/QD-TTg of July 10, 2009, amending and supplementing Clause 4, Article 21 of the Prime
Minister's Decision No. 33/2009/QD-TTg of March 2, 2009, promulgating financial mechanisms and policies applicable to border-gate economic zones;
After reaching agreement with concerned ministries, branches and localities, the Ministry of Finance guides the implementation of the Prime Minister's Decision No. 93/2009/QD-TTg of July 10, 2009, as follows:

Article 1. Policies on sale of duty-free goods to tourists in non-tariff sub-zones of border-gate economic zones

1. To sell duty-free goods to tourists in non-tariff sub-zones of border-gate economic zones through December 31. 2012, under the Prime Minister's decisions promulgating operation regulations applicable to each border-gate economic zone and the Finance Ministry's guiding documents. Specifically, tourists in non-tariff sub-zones of border-gate economic zones may purchase duty-free imported goods and bring into the inland within a quota not exceeding VND 500.000/person/day (excluding the value of purchased goods which are on the list of goods restricted from duty-free sale under Article 2 of this Circular). Owners of goods exceeding VND 500.000 in value shall fully pay import duty, value-added tax and excise tax (if any) on the excessive amount under current law.

2. Policies on sale of duty-free goods to tourists in non-tariff sub-zones of a number of border-gate economic zones:

a/ The provisions of Clause 1 of this Article uniformly apply to Bo Y international border-gate economic zone (Kon Tum province), An Giang province border-gate economic zone, Moc Bai border-gate economic zone (Tay Ninh province), Lao Cai border-gate economic zone (Lao Cai province). A Dot border-gate economic zone (Thua Thien Hue province), Dong Dang-Lang Son border-gate economic zone (Lang Son province), and Dong Thap province border-gate economic zone.

b/ For special trade-economic zones and border-gate economic zones with specific conditions as compared to other border-gate economic zones, the Prime Ministers decisions and this Circular apply.

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Article 2. List of goods restricted from duty-free sale

1. Goods restricted from duty-free sale to tourists in non-tariff sub-zones of border-gate economic zones include:

- Cigarettes of all kinds:

- Beer of all kinds;

- Liquor of all kinds.

2. The sale of the above duty-free goods is specified as follows:

a/ They may not be sold to under-18 persons;

b/ For persons aged 18 years or older, they shall be sold free of duty within a quota not exceeding VND 500,000/person/month.

Article 3. Responsibilities of provincial-level People's Committees of localities having border-gate economic zones

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1. Pursuant to the Regulation on sale of duty-free goods promulgated together with the Prime Minister's Decision No. 24/2009/QD-TTg of February 17, 2009, and the Finance Ministry's Circular No. 120/2009/TT-BTCof June 16.2009, elaborate and promulgate a Regulation on purchase and sale of duty-free goods in non-tariff sub-zones of border-gate economic zones in their localities to meet management requirements and prevent abuse of incentive policies for smuggling, tax evasion or illegal trading. Such Regulation must have the contents and adhere to the principles below:

a/ It must identify tourists eligible for purchasing duty-free goods;

b/ Duty-free goods must be sold to and purchased by proper persons (each tourist shall use only his/her but not another's identity card to purchase duty-free goods; authorized purchase of duty-free goods is not allowed) and within the prescribed quota:

c/ The list of goods restricted from duty-free sale and the sale of these goods specified in Article 2 of this Circular must be complied with.

2. Work out and coordinate with functional forces in taking measures to prevent and handle illegal trading or abuse of incentive policies for smuggling or tax evasion; and direct local functional agencies (border-gate economic zone management boards, public security, border guard and market management forces, and tax. customs and finance offices) to coordinate in taking examination and control measures to prevent smuggling and trade fraud in border-gate economic zones.

Article 4. Responsibilities of customs and tax offices

1. Customs offices in border-gate economic zones shall:

a/ Examine and supervise goods and vehicles, prevent and fight cross-border smuggling and illegal transportation of goods;

b/ Implement tax and customs laws on exports and imports under regulations;

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d/ Biannually and annually report on the sale of duty-free goods to tourists to the Ministry of Finance for monitoring; and promptly report cases of abnormal fluctuations in the quantities of duty-free goods imported, purchased and sold for being brought into the inland to competent authorities for appropriate handling:

e/ Enhance coordination with concerned functional agencies in preventing and handling fraud and abuse of incentive policies for illegal trading.

2. Tax offices shall:

a/ Carry out inspection procedures before tax refund for goods and services brought into non-tariff sub-zones in border-gate economic zones under the Finance Ministry's Circular No. 137/ 2009/TT-BTC of July 3. 2009, and Circular No. 60/2009ATT-BTC of June 14, 2007;

b/ Coordinate with customs offices in border-gate economic zones in monitoring and reporting on the sale of duty-free goods in non-tariff sub-zones of border-gate economic zones, and with concerned functional agencies in preventing and handling fraud and abuse of incentive policies for illegal trading.

Article 5. Responsibilities of enterprises selling duty-free goods in non-tariff sub-zones of border-gate economic zones

1. To sell duty-free goods in accordance with law and the Regulations on purchase and sale of duty-free goods promulgated by provincial-level People's Committees.

2. Based on practical situation and local conditions, to use computers connected with customs offices for simplifying administrative procedures and managing duty-free goods sale under regulations.

3. To send monthly goods sale reports to customs offices for examination and monitoring to meet management requirements.

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1. This Circular takes effect 45 days from the date of its signing.

2. To annul Point 1.5, Clause 1, Section II of the Finance Ministry's Circular No. 162/2007/TT-BTC of December 31, 2007, and Official Letter No. 8153/BTC-PC of July 14. 2008.

3. Any problems arising in the course of implementation should be promptly reported to the Ministry of Finance for appropriate amendment and supplementation.-

FOR THE MINISTER OF FINANCE
DEPUTY MINISTER




Do Hoang Anh Tuan