Application for certificate of eligibility to sell duty-free goods

1. The application form for certificate of eligibility to sell duty-free goods, which is made according to Form No. 01 in the Appendix enclosed herewith: 01 original.

2. The enterprise registration certificate or investment certificate or another equivalent document as prescribed in Clause 4 Article 81 of the Government’s Decree No. 78/2015/ND-CP dated September 14, 2015: 01 photocopy.

3. The diagram showing the locations of the duty-free shop, duty-free warehouse and camera system: 01 photocopy.

4. The certificate of fulfillment of fire fighting and prevention requirements issued by a police agency (if the duty-free shop is located in an area for which fire fighting and prevention requirements have been fulfilled): 01 photocopy.”.

4. Clause 1, Clause 2 and Clause 3 Article 7 are amended as follows:

“1. Cases of suspension of duty-free trading

a) Duty-free trading is suspended as requested by the enterprise;

b) The enterprise has not carried out duty-free trading for a consecutive period of 06 months.

2. Procedures for suspension of duty-free trading:

a) Where the duty-free trading is suspended as requested by the enterprise:

a.1) The enterprise shall submit a written request, which is made according to Form No. 01 in the Appendix enclosed herewith (01 original), to the provincial Customs Department managing the enterprise’s duty-free trading;

a.2) The provincial Customs Department shall notify the suspension of duty-free trading within 03 working days from receipt of the request from the enterprises;

a.3) Within 05 working days from the date of notification of suspension of duty-free trading, the provincial Customs Department shall inspect and make a record certifying the inventory at the duty-free shop and duty-free warehouse according to Form No. 04 in the Appendix enclosed herewith;

a.4) During the suspension period, if the period for storage of goods in Vietnam has expired, the enterprise shall follow procedures for extension of storage period, re-exportation, re-importation or home use of goods in accordance with Article 18 of the Government’s Decree No. 167/2016/ND-CP dated December 27, 2016 on trading of duty-free goods (hereinafter referred to as “Decree No. 167/2016/ND-CP”).

b) Where the suspension is made because the enterprise has not carried out duty-free trading for a consecutive period of 06 months

b.1) Within 03 working days from the end of the period prescribed in Point b Clause 1 of this Article, the Customs Sub-department managing duty-free trading shall report the enterprise’s suspension of the duty-free trading to the provincial Customs Department;

b.2) The provincial Customs Department shall give a notification of suspension of duty-free trading within 03 working days from receipt of the report from the Customs Sub-department; inspect and make a record certifying the inventory at the duty-free shop and duty-free warehouse according to Point a.3 of this Clause;

b.3) During the suspension period, if the period for storage of goods in Vietnam has expired, the enterprise shall follow the procedures in Point a.4 of this Clause.

3. During the suspension of duty-free trading, the customs authority shall supervise the inventory at the duty-free shop and duty-free warehouse. The enterprise trading in duty-free goods shall ensure the status quo of goods at the duty-free shop and duty-free warehouse. 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/ND-CP .”

5. Point dd Clause 1 and Clause 2 Article 8 are amended as follows:

“1. Cases of revocation of certificate of eligibility to sell duty-free goods

dd) After the suspension period prescribed in Clause 5 Article 7 hereof, 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.

2. Procedures for revocation of certificate of eligibility to sell duty-free goods

a) 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.

b) 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;

c) After receipt of notification of termination of duty-free trading from the provincial Customs Department, the enterprise shall:

c.1) make statement of duty-free goods sold according to Article 21 and Article 22 of Decree No. 167/2016/ND-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;

c.2) 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/ND-CP .

d) The Customs Sub-department managing the duty-free shop and duty-free warehouse shall:

d.1) 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/ND-CP ;

d.2) 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;

d.3) 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;

d.4) 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.

dd) 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.

e) 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.”.

6. Article 10 is amended as follows: