JOINT CIRCULAR

GUIDING THE IMPLEMENTATION OF THE PRIME MINISTER'S DECISION NO. 252/2003/QD-TTG OF NOVEMBER 24, 2003 ON MANAGEMENT OF CROSS-BORDER GOODS TRADING WITH BORDERING COUNTRIES

Pursuant to the Prime Minister's Decision No. 252/2003/QD-TTg of November 24, 2003 on management of cross-border goods trading with bordering countries;
The Ministries of Trade, Finance, Transport, Agriculture and Rural Development, Health, and Fisheries and the State Bank of Vietnam hereby jointly guide the implementation of the Prime Minister's Decision No. 252/2003/QD-TTg of November 24, 2003 on management of cross-border goods trading with bordering countries as follows:

I. GENERAL PROVISIONS

1. Regulation scope

The cross-border goods trading activities prescribed in this Circular include:

1.1. Goods purchase, sale and exchange activities of border residents, which are activities reserved exclusively for border residents in compliance with the provisions of Articles 2, 5.2 and 6 of the Prime Minister's Decision No. 252/2003/QD-TTg of November 24, 2003 on management of cross-border goods trading with bordering countries.

1.2. Trading at border markets, border-gate markets and markets in the border-gate economic zones.

...

...

...

2. Goods traded across borders

All goods, excluding those banned from export, banned from import or subject to conditional business, must comply with the provisions of the Prime Minister's Decision No. 46/2001/QD-TTg of April 4, 2001 on management of goods export and import in the 2001-2005 period, other relevant decisions of the Prime Minister and the guiding documents of the Ministry of Trade and specialized branch managing ministries, agencies, and other goods are freely exchanged, traded, exported or imported across borders.

3. Quality of goods traded across borders

3.1. On border medical quarantine:

3.1.1. All kinds of goods traded across borders must be quarantined according to the provisions of the Border Medical Quarantine Regulation issued together with the Government's Decree No. 41/1998/ND-CP of June 11, 1998 and normative documents guiding the implementation thereof.

3.1.2. The Ministry of Health is the body assisting the Government in performing the function of State management over border medical quarantine. The Preventive Medicine and HIV/AIDS Prevention and Combat Department is the border medical quarantine agency under the Ministry of Health, being responsible for deploying border medical quarantine activities nationwide. The organizational system of the border medical quarantine agencies of Vietnam shall be prescribed by the Prime Minister.

3.1.3. In this Circular:

a. "Border medical quarantine" means medical examination to detect the quarantine-liable diseases and supervise contagious diseases for human beings, transport means on entry or exit, luggage, commodities, containers, parcels, postal matters when being imported or exported in compliance with the provisions of the Border Medical Quarantine Regulation issued together with the Government's Decree No.41/1998/ND-CP of June 11, 1998 and the current normative documents guiding the implementation thereof.

b. "Border medical quarantine offices" mean medical bodies directly responsible for application of medical measures prescribed by the Border Medical Quarantine Regulation in areas under their respective management.

...

...

...

d. "Medical quarantiners" are persons tasked to take direct responsibility for application of medical measures in areas under their respective management according to the provisions of the Border Medical Quarantine Regulation.

e. "Medical examination" means the performance of professionally medical measures against human beings, transport means and other quarantine objects upon their entries, exits, import or export.

f. "Supervision of contagious diseases" means the epidemiological, serological, causal and clinically symptomatic investigation and supervision and the assessment of the possibility of contagious diseases' development or spread into epidemics.

g. "Retrospective investigation" means the use of epidemiological, microorganism-testing and serological methods to determine a quarantine-liable disease or a contagious disease, which has already occurred, and to find the causes of such disease.

h. "Vectors" mean medical insects, rodents (including various species of rat...) carrying pathogenic agents subject to quarantine, diseases communicating to human beings.

i. "Medically handling measures" include measures of vaccination, isolation, testing confinement, monitoring, health check and sanitary measures such as cleansing, disinfection, vector elimination.

j. "Quarantine-liable diseases": bubonic plague, cholera, yellow fever and other newly arising dangerous communicable diseases as prescribed by the Ministry of Health.

k. "Contagious diseases" mean diseases caused by infectious agents or their toxin, which can spread to human beings directly or indirectly through intermediate hosts, vectors or environment.

l. "Border-gate chiefs" mean heads of the State management agencies at border gates, who are appointed directly by such agencies to manage and coordinate activities of other State management bodies at the border gates, being customs offices or border guard units, depending on each border gate.

...

...

...

3.1.4. Medical quarantine objects and locations:

3.1.4.1. All people, all transport means and objects possibly carrying diseases, spreading diseases from regions where quarantine-liable diseases and/or dangerous contagious diseases are existing or circulating, upon their entries, exits, import or export, must be subject to supervision by border medical quarantine offices at the border gates of entry, exit, import or export. In cases where they are detected by medical quarantine offices as being infected with or carrying vectors which spread quarantine-liable diseases or dangerous contagious diseases as provided for in the above-said Border Medical Quarantine Regulation they must be subject to quarantine at quarantine areas.

Before carrying out the procedures, the medical quarantine offices shall promptly notify such to animal and plant quarantine offices at border gates for coordination in carrying out the quarantine procedures in order not to affect the quarantine contents of each branch.

When transport means must be quarantined, all people on the transport means and objects which may carry diseases or spread diseases on such transport means must be quarantined.

The border medical quarantine order and procedures shall be prescribed by the Ministry of Health.

3.1.4.2. However, if the objects capable of spreading diseases are also subject to animal or plant quarantine (for instance, buffaloes, cows, pigs, chicken...), the examination shall be carried out at only one stage or the medical quarantine provided for in Section 3.1 or animal or plant quarantine provided for in Section 3.2 shall apply.

3.1.5. The transportation of human corpses and remains across borders must be medically inspected and granted certificates by border medical quarantine offices.

The medical inspection order and procedures shall be prescribed by the Ministry of Health.

3.1.6. Such special products as medicinal microorganism, medicinal viruses, bio-medical products, tissues, organs of human body blood and components of human blood must be inspected and granted quarantine certificates by border medical quarantine offices before they are imported or exported.

...

...

...

3.1.7. Medical quarantine areas at border gates shall be uniformly stipulated by border-gate management agencies in coordination with border medical quarantine offices.

3.1.8. Medical quarantiners, while performing the quarantine tasks, must wear the quarantiner's cards and costumes affixed by badges as provided for by the Ministry of Health.

3.1.9. Quarantine of objects entitled to diplomatic or consular privileges and immunities and other special objects shall comply with the joint guidance of the Ministry of Health and the Ministry of Foreign Affairs.

3.2. Animal quarantine, plant quarantine, aquatic resource quarantine:

3.2.1. Only goods on the lists of exports or imports subject to animal quarantine or plant quarantine, which are announced by the Minister of Agriculture and Rural Development or subject to aquatic resource quarantine announced by the Minister of Fisheries, shall be subject to the quarantine procedures.

3.2.2. Lists of goods (objects) subject to plant quarantine, which are imported, temporarily imported for re-export, temporarily export for re-import and transited, shall be announced in each period by the Minister of Agriculture and Rural Development and issued together with Circular No. 73/2003/TT-BNN-BVTV of July 1, 2003 of the Ministry of Agriculture and Rural Development guiding the work of domestic plant quarantine.

3.2.3. Lists of goods (animals) subject to animal quarantine, which are imported or exported, shall comply with Decision No. 607/NN-TY/QD of June 9, 1994 of the Ministry of Agriculture and Foodstuff Industry (now the Ministry of Agriculture and Rural Development).

3.2.4. Lists of quarantine objects being aquatic animals and animal products, which are exported or imported, shall comply with the Fisheries Ministry's Circular No. 02/TS-TT of June 25, 1994.

3.2.5. Units competent to grant quarantine certificates, to certify written quarantine registration for goods specified at Point 3.2.1 above (hereinafter called collectively the quarantine offices) are units assigned such tasks under decisions of the Minister of Agriculture and Rural Development and the Minister of Fisheries (the list of quarantine offices was inscribed in Joint Circular No. 17/2003/TTLT-BTC-NN&PTNT-BTS of March 14, 2003 guiding the inspection and supervision of exports, imports subject to animal quarantine, plant quarantine, aquatic resource quarantine and Decision No. 05/2003/QD-BTS of April 29, 2003 of the Minister of Fisheries amending Appendix 1 (Aquatic Resource Section) of the above-mentioned Joint Circular).

...

...

...

3.2.7. The quarantine of import goods shall be effected by mode of registration first, then inspection later, concretely:

- Before carrying out the customs procedures, goods owners must register the quarantine thereof with the quarantine offices.

- The quarantine offices may conduct quarantines simultaneously with the goods inspection by the customs offices or conduct quarantines after the goods have gone through the customs procedures at the time and places determined in the quarantine registration papers (according to the form in Appendix 2 to Joint Circular No. 17/2003/TTLT-BTC-NN&PTNT-BTS of March 14, 2003 guiding the inspection and supervision of export, import goods subject to animal quarantine, plant quarantine, aquatic resource quarantine).

3.2.8. Responsibility of goods owners:

3.2.8.1. For export goods:

Before exporting goods, the goods owners must register and declare with the quarantine offices for carrying out inspection procedures, granting of quarantine certificates to quarantine-liable goods according to law provisions or at requests of purchasers.

3.2.8.2. For import goods:

Before carrying out the customs procedures, the goods owners must register for quarantine (filling in 3 copies according to the form in Appendix 2 to Joint Circular No. 17/2003/TTLT-BTC-NN&PTNT-BTS of March 14, 2003 guiding the inspection and supervision of export, import goods subject to animal quarantine, plant quarantine, aquatic resource quarantine) with the quarantine offices.

3.2.8.2.1. When carrying out the customs procedures, in addition to the dossier set prescribed by the customs offices, to submit the quarantine registration papers certified by the quarantine offices.

...

...

...

3.2.8.2.3. For goods undergoing the quarantine procedures after the completion of the customs procedures:

- To take in-status-quo goods already cleared from customs procedures back to the right places, at the right time registered in the quarantine registration papers.

- In case of force majeure events rendering them unable to take the goods back to the registered places and at the registered time for quarantine, to give explanations to the quarantine offices.

3.2.8.2.4. To strictly fulfill the following obligations:

- To circulate goods only after the quarantine offices grant the quarantine certificates.

- To abide by the handling decisions (if any) of the quarantine offices against the goods lots.

- For the quarantined goods lots, which fail to satisfy the import conditions, they must be re-exported; when carrying out the export procedures, to produce the import customs dossiers, coercive re-export decisions of the quarantine offices and goods to the customs offices where the import procedures were carried out for the goods lots.

3.2.9. Responsibility of quarantine offices:

3.2.9.1. To take responsibility for the registration, certification in the quarantine registration papers, to return to goods owners two copies and to keep one copy thereof.

...

...

...

3.2.9.3. For goods lots already cleared from customs procedures, before conducting the quarantine, to compare goods with the declarations of goods owners and with the customs dossier set. If there appear disparities, to make record thereon and handle goods according to law provisions.

3.2.9.4. After the quarantine, if the goods are subject to destruction, to organize the destruction strictly according to law provisions; if the goods are subject to re-export, to issue decisions on coercive re-export, clearly stating the time for re-export, handing one copy to the goods owners for implementationa and sending one copy to the customs offices (where the import procedures were carried out for the goods lots) for coordinated implementation; to monitor the goods lots till they are actually re-exported; to handle violations against goods owners who fail to seriously abide by the decisions on coercive re-export.

3.2.9.5. To promptly notify the provincial/municipal Customs Departments of the organizations and individuals that fail to fulfill the commitments and effect the registered quarantine; propose the compulsory customs procedures for subsequent goods lots.

3.2.9.6. When organizations or individuals have already executed the handling decisions, the quarantine offices (which propose the coercive customs procedures) grant the written certifications for the customs offices to remove the customs procedure coercion, clearly stating the coerced enterprises under notices (number, date, violation acts, handling form).

3.2.10. Responsibility of customs offices:

3.2.10.1. For export goods:

The customs offices shall only request the submission of quarantine certificates for goods liable to quarantine under law provisions.

3.2.10.2. For import goods:

3.2.10.2.1. Upon accepting to register the customs dossiers, to request the goods owners to submit one quarantine registration paper (the original) certified by the quarantine office; to carry out the procedures according to regulations.

...

...

...

3.2.10.2.3. For import goods lots already registered for quarantine but not permitted for import due to violations of the policy on export and import management, the customs offices where the procedures are carried out shall give certification, clearly inscribing in the quarantine registration papers the reasons therefor.

3.2.10.2.4. To effect coercive customs procedures against export, import goods of organizations or individuals at the proposals of the quarantine offices due to violations of legislation on quarantine of import goods already registered for quarantine.

3.2.10.2.5. To remove the coercion when organizations or individuals submit the copies and produce the originals of the documents of the quarantine offices (which propose the coercion) certifying that the handling decisions were already executed. The copies of organizations must be certified, signed and stamped; individuals' duplicates are photocopies.

3.2.11. Coordinating relations:

3.2.11.1. Where the quarantine offices request the quarantine of the goods lots before completing the customs procedures, two relevant agencies must closely coordinate with each other and the customs offices shall decide on customs clearance only after the quarantine offices make conclusions.

3.2.11.2. Annually, the customs sub-departments shall preside over meetings with the relevant quarantine offices in order to draw experiences on the coordination in inspection and supervision of quarantine-liable goods. In case of necessity, extraordinary meetings can be organized at the request of the customs offices or the quarantine offices.

3.3. On food hygiene and safety control:

3.3.1. For food exported or imported through official and unofficial channels, enterprises must produce base standards (already announced the quality with competent health bodies) and the results of inspection of the goods lots by a quality inspection State agency designated by the Ministry of Health. Subjects failing to fully acquire the above-mentioned dossiers must be subject to goods quality inspection before the circulation thereof.

3.3.2. Upon the appearance of epidemics, the quarantine is necessary and continual (especially when there are epidemiological instructions on diseases which may spread to human beings or animals, plants) according to the regulations of the managing ministries.

...

...

...

3.4. On quality control:

3.4.1. Goods, luggage, equipment of the following subjects shall not be subject to the State quality inspection:

- Purchased, sold, exchanged goods of border residents; goods brought into border markets, border-gate markets, markets in the border-gate economic zones;

- Personal effects, diplomatic goods, sample goods, exhibition or fair goods, gifts;

- Supplies, equipment, machinery of investment joint ventures, which are not directly circulated on the market but only serve the goods production demands of the establishments;

- Goods, supplies, equipment, temporarily imported for re-export;

- Goods on transit, border-gate transshipment;

- Goods deposited in bonded warehouses;

- Goods processed by Vietnamese enterprises for foreign traders.

...

...

...

3.4.3. The State quality inspection prescribed in this Circular shall be effected by mode of registration first and inspection later:

- Registration first means the goods owners make inspection registration with the State quality inspection bodies (hereinafter called the inspection bodies for short) before carrying out the customs procedures for import.

- Inspection later means the quality inspection shall be conducted by the inspection bodies after the goods are cleared from the customs procedures.

3.4.4. For the following goods, the inspection bodies shall not certify the inspection registration papers and the goods shall be cleared from customs procedures only after the inspection agencies announce the satisfaction of quality requirements:

- The inspection bodies have objective evidences that the import goods lots registered for inspection fail to satisfy the prescribed quality requirements;

- The inspection bodies detect that the previously imported lots of goods of the same goods owners fail to satisfy the prescribed quality requirements.

3.4.5. The quality inspection of Vietnamese export goods shall comply with bilateral or multilateral agreements between Vietnam and the relevant countries or international organizations.

3.4.6. Goods owners' import goods shall be granted inspection-free notices by inspection bodies in the following cases:

- The import goods bear standard compatibility signs of exporting countries, which are recognized and announced in each period by the General Department of Standard, Metrology and Quality (under the Ministry of Science and Technology);

...

...

...

- The goods have satisfied the inspection exemption conditions prescribed by the specialized branch-managing ministries.

3.4.7. For goods items on the list of those subject to both the State quality inspection and other required inspections (determining the remaining quality of used goods), these required inspections shall all be performed by the State quality inspection bodies (For example: The used land transport means must only go through the State inspection at Vietnam Register) and the examination to determine the quality compatibility of the used equipment as provided for in the Prime Minister's Decision No. 46/2001/QD-TTg of April 4, 2001 on management of goods export and import in the 2001-2005 period.

3.4.8. Responsibility of goods owners:

The goods owners must bear responsibility before law for the import goods quality as prescribed and satisfy the following requirements when importing goods on the list of goods subject to State quality inspection:

- Before the goods arrive at border gates, goods owners must register the quality inspection with the inspection bodies. The inspection registration papers shall be prescribed by the inspection bodies.

- Within one working day after the goods are cleared from customs procedures, the goods owners must produce their goods in status quo together with the set of customs dossiers having already gone through the customs procedures as well as other prescribed dossiers and documents for the inspection bodies to perform the quality inspection at the right places already registered by the goods owners with the inspection bodies.

- The goods owners shall be permitted to put import goods to use only after the inspection bodies issue notices on satisfaction of import quality requirements.

- The goods owners must execute the handling decisions of the specialized State management agencies in case of violating the regulations on State inspection of import goods quality.

- Where goods are forced to be re-exported, the goods owners must re-export them within the time limits prescribed in the compulsory re-export decisions of the specialized State management agencies. Upon the re-exports, the goods owners must produce their goods, customs dossiers and compulsory re-export decisions for the border-gate customs to carry out the re-export procedures.

...

...

...

3.4.9.1. To perform the inspections and issue notices on results of State quality inspection of import goods or notices on inspection exemption according to the provisions of Point 3.4.6 of this Circular.

3.4.9.2. Within one working day after the receipt of goods owners' written requests, the goods inspection bodies must certify the registration papers for State quality inspection of import goods or issue notices on inspection exemption for the goods owners to submit them to the customs offices when carrying out procedures for goods import.

- For goods mentioned at Point 3.4.4 of this Circular, the inspection bodies shall not certify the State inspection registration papers; in this case, the goods shall be cleared from customs procedures only when there are notices on satisfaction of import quality requirements.

- To monitor and request the goods owners to produce their goods together with the import goods dossier sets already cleared from customs procedures for inspection. Before the goods quality inspection, the inspection bodies must compare and consider goods and the customs dossiers; if the goods remain intact and fully conform to the customs dossiers regarding goods appellations and categories, the inspection bodies must conduct the inspections according to regulations; in cases where the goods are not left intact and fail to conform to the customs dossiers, the inspection bodies shall make the records and report thereon to the specialized State management bodies for handling according to regulations.

- Within 5 days after the goods owners produce their goods and fully supply the dossiers related to the goods as prescribed for inspection, the inspection bodies must notify the inspection results. For particular goods catergories, the time for inspection result notification shall be prescribed by the specialized branch-managing ministries.

- Where the goods fail to satisfy the import quality and are forced to be re-exported, the inspection bodies must seal off the entire goods to be reexported, report thereon to the specialized management agencies for handling and issue decisions on compulsory re-export, notify such to the customs offices which have carried out the import procedures for such goods lots. The compulsory re-export decisions of the specialized State management agencies shall be sent to the customs offices which carry out the re-export procedures. The time limits for re-export from Vietnam are prescribed in the compulsory re-export decisions.

3.4.10. Responsibility of the customs offices

3.4.10.1. For export goods: The customs offices shall not request the submission or presentation of quality certificates.

3.4.10.2. For import goods: Apart from the prescribed customs dossier sets, when carrying out the goods import procedures, the goods owners must submit one registration paper for State quality inspection of import goods with certification by the inspection bodies or the inspection exemption notice. Basing themselves on the valid dossier sets and goods, the customs offices shall carry out the customs clearance procedures for the goods lots as provided for. The customs offices are not responsible for the quality of import goods after the customs clearance.

...

...

...

Upon receiving the specialized State management agencies' decisions on compulsory re-export of import goods which fail to meet the quality requirements, the border-gate customs which have carried out the import procedures for such goods lots shall have to compare the archived dossiers of the goods lots previously cleared from customs procedures with the actual goods lots presented by the goods owners and the compulsory re-export decisions; if compatible, they shall carry out the re-export procedures. Where the to be-re-exported goods lots are incompatible with the archived customs dossiers sets, the customs offices shall return them to the specialized State management agencies for handling according to law provisions.

3.4.11. Organizations performing the State quality inspection

- The import/export goods inspection bodies of specialized branch-managing ministries;

- Business enterprises providing expertising services, which satisfy conditions and are recognized and designated by the Ministry of Science and Technology to inspect specific goods items after reaching agreements with the specialized branch-managing ministries.

- The appellations of the to be-inspected goods and the names of the inspection bodies are prescribed in the list of goods subject to State inspection.

3.5. Regarding ranger work: To comply with the Government's Decree No.11/2002/ND-CP of January 22, 2002 on management of the export, import and transit of wild animal and plant species and Circular No. 123/2003/TT-BNN of November 14, 2003 of the Ministry of Agriculture and Rural Development, guiding the implementation of this Decree.

3.6. The customs, inspection and quarantine offices must closely coordinate with one another in procedures, time and scientific and reasonable methods to ensure that all goods exchanged across borders must be inspected and/or quarantined while obstacles, inconvenience and overlapping in inspection are not created.

4. Payment for goods

4.1. Payment in goods trading or exchange by border residents, payment in goods trading at border markets, border-gate markets, border-gate economic zone markets and payment in cross-border goods export and import by modes outside the international practices shall be effected in freely convertible foreign currencies, Vietnam dong (VND) or currencies of the bordering countries such as Chinese yuan (RMB), Lao kip (LAK) and Cambodian riel (KHR).

...

...

...

4.3. The carrying of Vietnam dong and currencies of bordering countries across the borders for payments prescribed at Point 4.1 above must comply with Vietnam State Bank's current regulations on carrying foreign currencies and Vietnam dong in cash upon export and import.

4.4. Parties engaged in goods trading, exchange, export or import across borders may select payment forms suitable to Vietnam State Bank's regulations on the basis of payment agreements signed between Vietnam and bordering countries; business subjects are encouraged to make via-bank payments in the following forms:

4.4.1. Payment through banks of two countries in freely convertible foreign currencies, according to international practices (including banks based inside and outside border provinces);

4.4.2. Payment in freely convertible foreign currencies or Vietnam dong through accounts opened at Vietnamese banks in accordance with the current regulations on foreign exchange management;

4.4.3. Payment in Vietnam dong or currencies of bordering countries through banks conducting foreign exchange operations in Vietnam's border provinces and banks of bordering countries under the agreements on payment agency relations between the two sides;

4.4.4. Payment in form of goods barter in accordance with the current law provisions of each country on management of export and import goods. The currencies used for payment of differences in goods barter transactions are freely convertible foreign currencies, Vietnam dong or currencies of bordering countries.

4.5. On the basis of bilateral agreements on payment, signed between Vietnam and bordering countries as well as on the particularities of goods trading, exchange, export and import in each border region, Vietnam State Bank shall work out separate regulations guiding in detail the payment.

5. Tax and fee policies

5.1. For goods traded across borders: Taxes and fees (if any) must be paid according to law provisions.

...

...

...

5.2.1. To exempt import tax only for goods turned out by residents of bordering countries with the level prescribed at Point 5.2.2 below.

5.2.2. Import tax exemption level: Not exceeding VND 500,000/person/day. For goods being products indivisible, if the value of one product unit exceeds this level, tax must be paid for the excess part (including objects in complete animal, complete piece, complete set).

5.2.3. Goods not turned out by residents of bordering countries shall not be entitled to the import tax exemption level prescribed at Point 5.2.2 above.

5.2.4. Goods traded or exchanged by subjects other than border residents shall not be entitled to the import tax exemption level mentioned at Point 5.2.2 above.

II. TRADING, EXCHANGING GOODS OF BORDER RESIDENTS

6. Subjects entitled to trade, exchange goods of border residents

Citizens with permanent household registration in districts adjacent to bordering countries are entitled to trade and exchange goods items in accordance with the regulations on cross-border goods trading prescribed in Article 2 of this Circular.

7. Border gates, places for goods trading and exchange by border residents

7.1. Border gates opened under the mutual agreements between the government of Vietnam and the governments of bordering countries.

...

...

...

7.3. Border gates opened under the mutual agreements between border-adjacent provinces of Vietnam and border adjacent provinces of bordering countries and permitted by the Trade Ministry for carrying out customs-clearance procedures for export and import goods.

7.4. Trails determined through negotiations between the provincial-level administrations in the border regions of the two countries according to current law provisions and relevant regulations of the governments of the two countries.

8. Customs procedures for goods traded, exchanged by border residents

8.1. Customs dossiers:

8.1.1. Goods traded or exchanged by residents of bordering countries are not required to be declared on the customs declarations.

8.1.2. Goods owners shall produce their border identity cards or border laissez-passers, issued by competent bodies of bordering countries, in order to enjoy tax exemption level.

8.1.3. If goods traded or exchanged by residents of bordering countries exceed the prescribed norms, the customs offices shall calculate tax directly on tax collection receipts.

8.1.4. For goods traded, exchanged by residents of bordering countries, their certificates of origin (C/O) must not be submitted. The determination of origins of goods in this case shall be based on actual goods inspection.

8.2. Actual goods inspection:

...

...

...

8.2.2. On monitoring the number of inspections in a day: Mainly through supervision to detect subjects that take advantage thereof to conduct trading, needing not to open monitoring books.

III. GOODS EXPORT, IMPORT ACROSS BORDERS

9. Vietnamese subjects entitled to export, import goods across borders

9.1. Enterprises, units of various economic sectors, which are registered and established under Vietnamese laws.

9.2. Business households in border adjacent provinces, which are registered under the provisions of the Government's Decree No. 109/2004/ND-CP of April 2, 2004 on business registration.

10. Cross-border goods export/import border gates

10.1. Border gates opened under the mutual agreements between the government of Vietnam and the governments of bordering countries.

10.2. Border gates and other customs clearance locations in border-gate economic zones, which are established under the Vietnamese government's permission.

10.3. Border gates opened under the mutual agreements between border-adjacent provinces of Vietnam and border-adjacent provinces of bordering countries and permitted by the Trade Ministry for carrying out customs clearance procedures for export and import goods.

...

...

...

11.1. Customs dossiers:

11.1.1. Customs declaration: Using the import goods customs declaration form (coded HQ/2002-NK issued together with Decision No. 1257/2001/QD-TCHQ of December 4, 2001 of the General Director of Customs: 2 originals.

11.1.2. Other vouchers shall comply with the regulations on the customs dossiers, customs procedures for goods exported, imported under trading contracts, issued together with Decision No. 56/2003/QD-BTC of April 16, 2003 of the Finance Minister, excluding bills of lading.

Particularly business households in border-adjacent provinces of Vietnam and those of bordering countries, which do business in border markets, border-gate markets or border-gate economic zone markets are not required to have the above-mentioned vouchers, except 2 following types of vouchers:

The goods quality inspection registration papers or goods quality inspection exemption notices, issued by State quality inspection bodies (for goods subject to quality inspection).

The quarantine registration papers issued by quarantine offices (for goods subject to quarantine).

11.1.3. Goods imported across borders shall be entitled to import tax preferences under the bilateral agreements between the government of Vietnam and the governments of bordering countries if the goods origin certificates (C/O) are available.

11.2. Actual inspection:

The measure of actual goods inspection exemption shall not apply to goods imported across borders and goods brought into border markets, border-gate markets, border-gate economic zone markets.

...

...

...

12.1. Customs dossiers:

12.1.1. Customs declaration:

a. For cases where goods are exported under trading contracts: Using the export goods declaration form (coded HQ/2002-XK issued together with Decision No. 1257/2001/QD-TCHQ of December 4, 2001 of the General Director of Customs): 2 originals;

b. For cases where goods are exported without trading contracts: Using the border goods export declaration form (coded HQ/2002/XHBG, issued together with Decision No. 1473/2002/QD-TCHQ of May 24, 2002 of the General Director of Customs; Decision No. 24/2004/QD-BTC of March 5, 2004 of the Finance Ministry): 2 originals.

12.1.2. Other vouchers shall comply with regulations on customs dossiers, customs procedures for goods exported, imported under trading contracts, issued together with Decision No. 56/2003/QD-BTC of April 16, 2003 of the Finance Minister, suitable to each form.

12.1.3. For land animals and products thereof, there must be export quarantine certificates issued by Vietnam's animal quarantine offices at the request of the importing countries or of the goods owners.

12.2. Goods exported across borders shall be entitled to export tax preferences under bilateral agreements between the government of Vietnam and the governments of bordering countries.

12.3. Actual goods inspection

Goods exported across borders shall be subject to the application of inspection forms prescribed in the Customs Law.

...

...

...

13. Border markets, border-gate markets, border-gate economic zone markets

13.1. Land border markets are those located in areas not more than 1 km from the border line, which have been formed for many years, and in areas where exist residents' urgent demands for organization of border markets.

13.2. Border-gate markets are those established in land border regions, associated to goods export and import border-gates, which, however, do not belong to border-gate economic zones.

13.3. Border-gate economic zone markets are those set up in border-gate economic zones under the Prime Minister's Decision No. 53/2001/QD-TTg of April 19, 2001 on policies towards border-gate economic zones.

14. Business subjects in markets

14.1. Vietnamese enterprises and business households, that have business registration certificates granted by competent State bodies and are permitted to conduct business in border markets, border-gate markets, border-gate economic zone markets.

Particularly enterprises and households dealing in medicines must comply with the provisions of the Health Ministry's Circular No. 01/2004/TT-BYT of January 6, 2004 guiding the implementation of the Ordinance on Private Medical and Pharmaceutical Practice and relevant current regulations, and establishments dealing in goods items of plant, animal, mineral... origins, which are used as raw materials for the medical sector, must have certificates of full satisfaction of business criteria and conditions, issued by Health Services of border-adjacent provinces.

14.2. Enterprises and business households of bordering countries must comply with the provisions of the Government's Decree No. 34/2000/ND-CP of August 18, 2000 on Land Border Regulation of the Socialist Republic of Vietnam and regulations related to the movement, residence and business in the border regions:

14.2.1. They are permitted to conduct business in border-gate markets and border markets when they are granted business licenses by Trade-Tourism Services of the border-adjacent provinces.

...

...

...

14.3. Citizens of bordering countries, when permitted to conduct business in border markets, border-gate markets, border-gate economic zone markets and having licenses for doing business in the above-mentioned markets, which are still valid, and if wishing to temporarily reside in Vietnam, shall be considered and granted temporary residence certificates or temporary residence cards under the guidance of the Ministry of Public Security of Vietnam.

15. Market management

15.1. The decision on establishment (or dissolution) and the definition of the functions, tasks and powers of the market management bodies for border markets, border-gate markets shall comply with the decentralization for each type of market prescribed in the Government's Decree No. 02/2003/ND-CP of January 14, 2003 on market development and management, the Trade Ministry's Circular No. 06/2003/TT-BTM of August 15, 2003 guiding the functions, tasks, powers and organization of market management boards, the Trade Minister's Decision No. 0772/2003/QD-BTM promulgating the model regulation on markets, the Trade Ministry's Document No. 2730/TM-CSTTTN of June 24, 2003 guiding the reports on market business operations, the Planning and Investment Ministry's Circular No. 07/2003/TT-BKH of September 11, 2003 guiding the formulation of planning projects on market development and construction investment, the Finance Ministry's Circular No. 67/2003/TT-BTC guiding the financial mechanism applicable to market management boards, market dealing, exploitating and managing enterprises.

15.2. Markets in border-gate economic zones shall be set up (or dissolved) under decisions of the heads of the economic zone management boards, who also define the functions, tasks and powers of the market management boards under the provisions of the Government's Decree No. 02/2003/ND-CP of January 14, 2003 on market development and management, the Trade Ministry's Circular No. 06/2003/TT-BTM of August 15, 2003 guiding the functions, tasks, powers and organization of the market management boards, the Trade Minister's Decision No. 0772/2003/QD-BTM promulgating the model regulation on markets, the Trade Ministry's Document No. 2730/TM-CSTTTN of June 24, 2003 guiding the reports on market business operations, the Planning and Investment Ministry's No. 07/2003/TT-BKH of September 11, 2003 guiding the formulation of planning projects on market development and construction investment, the Finance Ministry's Circular No. 67/2003/TT-BTC guiding the financial mechanism applicable to market management boards, market dealing, exploiting and managing enterprises.

15.3. Other contents related to border markets, border-gate markets, border-gate economic zone markets, which are not mentioned in this Circular, shall comply with the provisions in the Government's Decree No. 02/2003/ND-CP of January 14, 2003 on market development and management, the Trade Ministry's Circular No. 06/2003/TT-BTM of August 15, 2003 guiding the functions, tasks, powers and organization of the market management boards, the Trade Minister's Decision No. 0772/2003/QD-BTM promulgating the model regulation on markets, the Trade Ministry's Document No. 2730/TM-CSTTTN of June 24, 2003 guiding the market business operations, the Planning and Investment Ministry's Circular No. 07/2003/TT-BKH of September 11, 2003 guiding the formulation of planning projects on market development and construction investment, the Finance Ministry's Circular No. 67/2003/TT-BTC guiding the financial mechanism applicable to the market management boards, market dealing, exploiting and managing enterprises.

15.4. If this Circular's provisions on border markets, border-gate markets and border-gate economic zone markets differ from the bilateral agreements between the government of the Socialist Republic of Vietnam and the governments of bordering countries, the bilateral agreements signed between the two governments shall apply.

16. Customs procedures for goods traded, exchanged at border markets, border-gate markets, border-gate economic zone markets

The customs procedures for goods traded or exchanged in border markets, border-gate markets, border-gate economic zone markets shall be the same as those for goods imported across borders mentioned at Point 11 of this Circular.

V. ENTRY AND EXIT OF PEOPLE AND MEANS RELATED TO CROSS-BORDER GOODS IMPORT AND EXPORT

...

...

...

17.1. Goods owners, goods transport means operators and service personnel on vehicles, trains, vessels must possess passports, crew members' books or corresponding crew members' books, border identity cards, border lassez-passers and must produce them to border-gate authorities.

17.2. Goods owners, goods transport means operators, when arriving at places in the border regions, must produce or submit the prescribed papers.

17.3. When means arrive at other places outside the border regions: To comply with agreements, protocols or bilateral agreements, which Vietnam has signed with bordering countries: producing international transport licenses or permits under the agreements between two provinces sharing the borders.

17.4. Means operators entering and exiting border markets, border-gate markets and/or border-gate economic zone markets shall be exempt from visas and subject to the inspection and control by specialized State management bodies at border-gates; if they enter deep into the inland, they must carry out the entry and exit procedures.

17.5. Entry, exit medical quarantine

17.5.1. Before the departure time for trains, automobiles, the means owners or their representatives must notify the border medical quarantine offices of the following documents and information:

Name, nationality and itinerary of the transport means;

The number of passengers, crew members onboard the transport means;

The medical declaration made according to a set form (for people onboard the transport means).

...

...

...

17.5.3. For entry transport means which, due to damage or other reasons, cannot move to the prescribed medical quarantine areas, the means owners or their representatives must immediately notify the border medical quarantine offices thereof.

17.5.4. While conducting entry and/or exit quarantines, the quarantiners shall request means owners on transport means or their representatives to produce necessary papers and health declarations of service personnel onboard the transport means and of passengers, made according to forms set by the border medical quarantine offices.

17.5.5. Basing themselves on the quarantine results, the border medical quarantine offices shall grant quarantine certificates to the quarantined people and transport means on entry. The quarantine certificates must clearly state the handling measures applied to such people and transport means.

17.5.6. When their transport means are quarantined, the owners or their representatives must fully observe the quarantine regulations and create favorable conditions for the quarantiners to perform the quarantine on their transport means.

17.5.7. Medically handling measures

17.5.7.1. Upon detecting that entry or exit subjects are being infected with or carrying vectors of quarantine-liable diseases or dangerous contagious diseases, the border medical quarantine offices must confine them for testing or apply necessary medically handling measures to those subjects.

17.5.7.2. In case of detecting that transport means carry vectors of quarantine-liable diseases and/or dangerous contagious diseases, the border medical quarantine offices shall compel the transport means owners or their represen-tatives and goods owners or their representatives to apply medically handling measures and at the same time report thereon to the heads of the border-gate management bodies. After the full application of prescribed handling measures to the transport means, the medical quarantine offices shall grant quarantine certificates.

17.5.7.3. When foreign transport means arrive at Vietnamese border gates but the transport means owners or their representatives fail to apply medically handling measures, the medical quarantine offices shall refuse to carry out the entry medical procedures and propose the competent bodies to request such transport means to immediately leave the Vietnamese border gates and not to park at any places in the Vietnamese territory. In special cases where they cannot leave immediately, the medical measures prescribed by border quarantine offices must be applied.

17.5.7.4. When applying medically handling measures, the persons responsible for the medical handling must ensure the following requirements:

...

...

...

b. Not causing damage to machine and structural parts of the transport means;

c. Not causing fires;

d. Not damaging luggage, cargo nor deforming packages, changing colors of goods labels.

When applying medically handling measures and causing damage to people and means, the border medical quarantine offices must compensate therefor according to law provisions.

17.5.7.5 Parcels, newspapers, books and other printed matters sent by post must not be medically handled, except for cases where such parcels are suspected of being pathogenic sources by border medical quarantine offices.

17.5.7.6. All used objects, discarded objects with clear proofs that they may spread quarantine-liable diseases and/or contagious diseases must be medically handled before they are imported or exported.

17.5.7.7. The border medical quarantine offices need not to apply medically handling measures to transport means which were medically handled previously at such border gates and transport means transiting Vietnam without changing people and/or goods in the Vietnamese territory, except for the following cases:

a. Signs of being infected with quarantine-liable diseases and/or dangerous contagious diseases are unexpectedly detected on the transport means or at the border gates;

b. The previous medically handling measures at the border gates bear no fruit.

...

...

...

a. Come from regions infected with quarantine-liable diseases or dangerous contagious diseases;

b. Carry persons infected with quarantine-liable diseases or dangerous contagious disease;

c. Carry vectors in excess of the permitted limits;

The Health Ministry shall specify the permitted vector limit for each quarantine-liable disease, dangerous contagious disease.

17.5.7.9. For people being infected or suspected of being infected with quarantine-liable diseases, the border medical quarantine offices must apply the following measures:

a. Isolating, treating the diseased persons at the prescribed places until they recover from ailment or no longer have the capability to spread diseases;

b. Confining for testing people suspected of being infected with quarantine-liable diseases, the testing confinement duration shall not exceed the incubation period of such diseases. Upon detection of quarantine-liable diseases among the confined persons, the diseased persons must be isolated and treated.

17.5.7.10. People onboard the transport means which carry diseases or are suspected of carrying quarantine-liable diseases, or which come from regions where exist quarantine-liable diseases and/or dangerous contagious diseases must go through medical examinations at the medical bodies in their residence places according to the schedules inscribed in the health monitoring papers granted by the border medical quarantine offices; and at the same time, the border medical quarantine offices shall have to promptly notify such to the medical bodies of the localities where such persons come to reside.

17.6. Means operators shall produce or submit papers in service of the inspection, control and supervision of means and goods according to regulations, including:

...

...

...

Certificates of technical safety and environmental protection inspection for means;

Means operating licenses;

Certificates of insurance of means owners' liability towards the third persons;

Bills of lading or transport vouchers enclosed with necessary permits related to goods;

Declarations of means temporarily imported for re-export or temporarily exported for re-import;

Lists of passengers;

Luggage declarations;

Declarations of means temporarily imported for re-export or temporarily exported for re-import within definite time limits;

Permits for temporary import for re-export or temporary export for re-import of means within definite time limits;

...

...

...

Medical declarations made according to a set form (for people onboard transport means).

17.7. Customs procedures for transport means on entry, exit or transit through land border gates:

17.7.1. At border-adjacent control locations:

17.7.1.1. For vehicles on entry:

17.7.1.1.1. Drivers' responsibility:

- To stop their vehicles at the prescribed places at the border gates, produce papers and vehicles for inspection and monitoring book entries by the customs offices.

- To sign for certification the monitoring books of the customs offices.

17.7.1.1.2. The customs offices' responsibility:

- To examine vehicles and papers on vehicles, which are produced by drivers, and to enter the monitoring books.

...

...

...

17.7.1.2. For vehicles on exit:

17.7.1.2.1. Drivers' responsibility: To produce the exit automobile declarations, export goods declarations (if vehicles carry export goods), for which the customs procedures have been carried out.

17.7.1.2.2. The customs offices' responsibility:

- To receive and examine vehicles and papers presented by drivers and enter the monitoring books.

- Through work of supervision, collection and reception of other information related to export goods lots, if having grounds to confirm that they are smuggled goods or tax-evaded goods, to report such to the leadership of the customs sub-departments for directing the re-inspection in order to detect and handle violations according to regulations.

- To supervise vehicles and goods until they actually exit through the borders.

17.7.2. At the offices where border-gate customs procedures are carried out:

Customs procedures for vehicles on exit, entry or transit shall be as follows:

17.7.2.1. Drivers have the responsibility to declare and submit to the customs offices the following papers:

...

...

...

The declaration form for vehicles exiting through land border gates (coded HQ/2002/01-PTVT, issued together with Decision No. 1473/2002/QD-TCHQ of May 24, 2002 of the General Director of Customs): 2 originals;

The declaration on export, import luggage of drivers (if automobiles are circulated outside border-gate areas): 1 original;

The list of passengers (if carrying passengers): 1 original;

Producing permits (if any, as provided for by land transport agreements signed between the government of Vietnam and the governments of bordering countries).

17.7.2.1.2. For foreign automobiles entering Vietnam's border-gate areas to deliver import goods or receive export goods then returning to the home countries in the day and Vietnamese automobiles crossing the borders to deliver export goods and receive import goods then return to Vietnam in the day, the above-prescribed declaration and paper submission are not required.

17.7.2.1.3. For transport means temporarily imported for re-export, temporarily exported for re-import within definite terms as provided for in Article 52 of the Government's Decree No. 101/2001/ND-CP of December 31, 2001 and Point 1, Part 1 of Circular No. 11/2003/TT-BCA (C11) of July 3, 2003 of the Ministry of Public Security, including tourist cars (small cars, passenger cars, passenger-cum-cargo vehicles), motorized vehicles, motorized or non-motorized vessels, apart from the to be-submitted or -produced papers prescribed at Point 17.7.2.1.1 above, the drivers must also submit to the customs offices one of the following papers:

The permits for temporary import for circulation, granted by police offices: 1 original;

The permits granted by the Customs Departments of the border-adjacent provinces or cities (for vehicles temporarily exported for re-import not through the same border gates): 1 original.

17.7.2.2. The customs offices have the responsibility:

...

...

...

- To compare the declarations with the actual conditions of vehicles and examine the vehicles if having ground to assess that the vehicles are loaded with import goods without customs declaration.

- Leaders of border-gate Customs Sub-Departments make decisions to permit vehicles to enter, exit or transit on automobile entry-exit declaration form coded HQ/2002/01-PTVT.

- To return one original of the automobile entry-exit declaration HQ/2002/01-PTVT for use as travel vouchers.

- To record them in monitoring books and archive customs dossiers according to regulations.

17.7.2.3. The granting of permits for Vietnamese vehicles temporarily exported for re-import within definite terms shall be effected as follows:

- In cases where vehicles are temporarily exported and re-imported through the same border gates, the heads of the border-gate Customs Sub-Departments shall give permission by way of inscribing directly on the Vietnamese entry, exit declaration forms of the drivers.

- Where vehicles are temporarily exported for import not through the same border gates, the vehicle owners or drivers must file their written requests (with contents covering the names of vehicle owners, drivers, type of vehicle, vehicle labels, frame and engine numbers, number plates, temporary export border gate, re-import border gate, the temporary export time, the re-import time) to the directors of the Customs Departments of the provinces or cities where temporary export border gates are located for granting permits.

A permit (coded GP/2002/02-PTVT issued together with Decision No. 1473/2002/QD-TCHQ of May 24, 2002 of the General Director of Customs) shall be granted in 3 copies: 2 copies shall be handed to vehicle owner or driver for submission to the customs offices at the temporary export and re-import border gates, 1 copy for each, and 1 copy archived at the licensing customs office. This permit is valid at both the temporary export border gates and the re-import border gates.

18. People and means of foreign countries sharing borders

...

...

...

18.2. To permit means carrying animal products to go through border gates only after disinfection is effected according to regulations.

18.3. Citizens of bordering countries who are goods owners or their authorized persons, means operators and service personnel onboard the means of such bordering countries are allowed to travel on the cargo transport means through the border-gates prescribed at Points 10.1, 10.2 and 10.3 of this Circular to goods delivery and reception locations with their passports, crew members' books, border identity cards or border laissez-passers issued by competent bodies of bordering countries.

18.4. Where cargo transport means and subjects defined at Points 17.1, 17.2 and 17.3 of this Circular wish to enter other locations outside border areas and border-gate economic zones to deliver and/or receive goods, they must comply with the provisions of the agreements, protocols and other agreements signed between Vietnam and bordering countries on entry, exit and land transportation.

18.5. Means and citizens of bordering countries who are operators of means carrying cargoes of business subjects of bordering countries, when entering and exiting border marketplaces, border-gate markets and/or border-gate economic zone markets to carry goods, shall be exempt from Vietnam's entry and exit visas and submit to the inspection and control by specialized State management bodies at border gates; when wishing to move out of the scopes of the border markets, border-gate markets and/or border-gate economic zone markets to go deep into Vietnamese inland areas, they must carry out entry and exit procedures applicable to means and people according to law provisions of Vietnam. The entry and exit management office (of the Ministry of Public Security) shall consider and grant visas right in the border-gate economic zones.

18.6. Quarantine of foreigners

Persons entering Vietnam from regions where exist quarantine-liable diseases and/or dangerous contagious diseases must make health declaration with border medical quarantine offices. The Health Ministry shall specify the health declaration contents and procedures.

Upon the spread of quarantine-liable diseases or dangerous contagious diseases at Vietnamese border gates, the border medical quarantine offices must give vaccinations to foreigners at their requests.

VI. IMPLEMENTATION ORGANIZATION

19. Handling of violations

...

...

...

20. Responsibilities of the Trade Ministry

20.1. The Trade Ministry shall assume the prime responsibility for, and coordinate with the concerned ministries, branches and People's Committees of border-adjacent provinces on the basis of the Prime Minister's Decision No. 252/2003/QD-TTg of November 24, 2003, this Joint Circular and other relevant legal documents of Vietnam guiding, directing the management and administration of cross-border goods trading activities.

20.2. The Trade Ministry shall set up the Steering Board for cross-border goods trading under its management, which is composed of members being representatives of the ministries, branches and People's Committees of border-adjacent provinces.

The Steering Board shall assist the Trade Minister in implementing the mechanism for inter-branch coordination, directing and administering cross-border goods trading under the provisions of the Prime Minister's Decision No. 252/2003/QD-TTg of November 24, 2003 and this guiding Circular.

The Trade Ministry and the concerned agencies shall take initiative and coordinate with one another in handling matters arising in the course of implementation and report to the Prime Minister on matters falling beyond their jurisdiction.

21. Responsibilities of the concerned ministries and branches

21.1. The heads of the concerned ministries and branches shall strictly abide by the Prime Minister's Decision No. 252/2003/QD-TTg of November 24, 2003 and the guiding provisions of this Circular.

21.2. Ministries and branches shall have to appoint their representatives to join the Trade Ministry's Steering Board for cross-border goods trading activities.

21.3. The concerned ministries and branches shall have to regularly inspect and urge the implementation of the Prime Minister's Decision No. 252/2003/QD-TTg of November 24, 2003 and this guiding Circular, and closely coordinate with the Trade Ministry as well the other relevant ministries and branches in handling arising problems that are related to many ministries and branches.

...

...

...

22.1. The People's Committees of the border-adjacent provinces shall have to organize the management and administration of all cross-border goods trading activities in the border areas under their respective management; and well effect the inter-branch coordination mechanism for management and administration of cross-border goods trading.

22.2. The People's Committees of the border adjacent provinces shall assign the provincial Services of Trade or Trade-Tourism to act as key bodies in assisting them in managing cross-border goods trading.

22.3. To submit to the directions of the Steering Board and concerned ministries as well as branches for managing cross-border goods trading.

23. To annul the Finance Ministry's Circular No. 47/2004/TT-BTC of May 31, 2004 and all regulations issued by ministries, branches and localities, which are contrary to the provisions of the Prime Minister's Decision No. 252/2003/QD-TTg of November 24, 2003 and the provisions of this Circular.

24. Supplementation and amendment of the Circular

In the course of implementing this Circular, if there appear any contents which need to be supplemented or amended and relate any ministry, such ministry shall have to supplement and amend them.

VII. IMPLEMENTATION EFFECT

This Circular takes effect 15 days after its publication in the Official Gazette.

...

...

...

FOR THE FINANCE MINISTER
VICE MINISTER




Truong Chi Trung

FOR THE MINISTER OF TRANSPORT
VICE MINISTER




Nguyen Tien Sam

FOR THE MINISTER OF AGRICULTURE AND RURAL DEVELOPMENT
VICE MINISTER




Bui Ba Bong

FOR THE HEALTH MINISTER
VICE MINISTER




Le Ngoc Trong

FOR THE MINISTER OF FISHERIES
VICE MINISTER




Nguyen Thi Hong Minh

FOR THE STATE BANK GOVERNOR
DEPUTY GOVERNOR




Phung Khac Ke