JOINT CIRCULAR

INVOICES AND DOCUMENTS FOR IMPORTED PRODUCTS BEING SOLD ON THE MARKET

Pursuant to the Law on Tax administration, the Law on the amendments to the Law on Tax administration, and their guiding documents;

Pursuant to the Law on Customs and its guiding documents;

Pursuant to the Law on Commerce and its guiding documents;

Pursuant to the Law on Accounting and its guiding documents;

Pursuant to the Law on Value-added tax and Laws on amendments to the Law on Value-added tax; the Law on special excise duty and the Law on amendments to the Law on special excise duty; the Law on Corporate income tax and Laws on amendments to the Law on Corporate income tax; the Law on Export and import tax, and their guiding documents;

Pursuant to the Law on Actions against administrative violations and its guiding documents;

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Pursuant to the Government's Decree No. 95/2012/NĐ-CP dated November 12, 2012, defining the functions, tasks, powers and organizational structure of the Ministry of Industry and Trade;

Pursuant to the Government's Decree No. 106/2014/NĐ-CP dated November 17, 2014 on functions, tasks, entitlements and organizational structure of the Ministry of Public Security;

Pursuant to the Government's Decree No. 35/2013/NĐ-CP on functions, tasks, entitlements and organizational structure of the Ministry of National Defense;

The Minister of Finance, the Minister of Industry and Trade, the Minister of Public Security, and the Minister of National Defense promulgate a Joint Circular on invoices and documents of imported goods being sold on the market.

Chapter I

GENERAL PROVISIONS

Article 1. Scope

This Circular deals with invoices and documents of imported goods being sold on the market, including: goods in transit; goods displayed for sale; goods in warehouses, depots, manufacturing/trading facilities or other locations (hereinafter referred to as imported goods being sold on the market); guidance on actions against violations against regulations on invoices and documents of imported goods being sold on the market; rights and obligations of relevant organizations and individuals.

Article 2. Regulated entities

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2. Tax authorities, customs authorities, market surveillance authorities, polices authorities, the border guard, the coastguard, units and persons competent to carry out inspections and take actions against violations committed by sellers of imported goods being sold on the market.

3. Other organizations and individuals (hereinafter referred to as entities) related to invoices and documents for imported products being sold on the market.

Article 3. Deadline for presenting invoices and/or documents  

1. With regard to goods in transit, goods displayed for sale, goods kept in warehouses, depots, gathering points (except for the cases mentioned in Clause 2 of this Article), their traders and persons with relevant interests must present adequate invoices and/or documents proving the legitimacy of such goods as prescribed by law and this Circular at the time of inspection.

2. With regard to imported goods being displayed for sale, in a warehouse or depot under the trader’s right to use (the warehouse or depot is registered with a competent authority) or right to use, invoices and/or documents shall be presented as follows:

a) At the time of inspection, the trader and person with relevant interests and duties must present copies of invoices and/or documents bearing the trader’s seal to prove that the imported goods are legitimate;

b) Within 24 hours from the time of inspection, the trader must present the original invoices and/or documents to prove the legitimacy of goods as prescribed by law and this Circular. If the expiration of the 24-hour time limit is rest time as prescribed, invoices and/or documents shall be presented right after the rest time; the inspecting authority must write the time and location of document presentation on the record;

c) At the time of inspection, the trader fails to present the invoices and/or documents to prove the legitimacy of imported goods, the inspecting authority shall impound the goods as prescribed by law in order to verify their legitimacy.

3. If the trader presents adequate the invoices and/or documents proving the legitimacy of imported goods but the inspecting authority has good reasons to believe that the origins of such goods are illegitimate, they may impound the goods, compare documents, verify the origins of goods, and take legal responsibility for any damage caused for their manufacturer/seller.

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SPECIFIC PROVISIONS

Article 4. Invoices and/or documents for imported products transported from the checkpoint of import to inland

1. If goods are directly imported by their manufacturers or seller, invoices and/or documents must be presented when they are transported from the border checkpoint to inland as follows:

a) If customs procedures for import have been completed, there must be a declaration of imported goods granted customs clearance or release by the customs authority;

a) In case customs procedures for import have been not completed and goods must be put into storage or moved to a customs post other than the checkpoint of import, there must be a declaration of imported goods approved by the customs authority when goods are transported from the checkpoint of import to inland. The trader must comply with the customs authority’s approval.

c) In case of an all-inclusive customs declaration, partial shipments, or use of multiple means of transport, it is required to have a copy of the import declaration according to the case mentioned in Point a and Point b of this Clause and the trader’s dispatch order. The dispatch order must specify the quantity, categories of goods transported, number and date of the import declaration, loading place, destination, means of transport, and its license plate.

2. Imported goods being luggage of people entering Vietnam that exceed the duty-free allowance must be declared to the customs and comply with regulations of law on taxation and management of imported goods. When goods are moved inland, it is required to have the original customs declaration bearing the certification of completion of customs procedures and original receipt for payment of import duty (if any).

3. With regard to imported goods being purchased from border residents by purchasing agents and transported to Vietnam’s inland area:

a) If imported goods are directly transported to inland for sale by the purchasing agent, it is required to have the original manifest of goods purchased from border residents which is certified by a customs authority or the border guard (if customs and quarantine authorities are not available); the original receipt for payment of import duty on goods exceeding the duty-free allowance or imported goods that are not on the list of goods purchased from border residents (if any) to prove the legitimate origins of goods purchased.  The form of manifest of goods purchased from border residents shall be provided by the Ministry of Finance;

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4. With regard to imported goods sold at border markets, checkpoint markets, or markets in checkpoint economic zones, it is required to have import declarations granted customs clearance by the customs.

5. With regard to goods temporarily imported for re-export:

a) If goods temporarily imported for re-export are transported and kept inland as prescribed by law, it is required to have declaration of temporarily imported goods granted customs clearance by the customs and the note of transfer of goods temporarily imported for re-export;

b) If the declaration of re-export is registered at the Sub-department of Customs at the temporary import checkpoint and goods are re-exported through another checkpoint, it is required to have the declaration of re-export that is granted customs clearance when the goods are transported from the checkpoint of temporary import to the checkpoint of re-export; goods in transit must be kept intact; the route, time, and checkpoint of export registered must be adhered to.  If the checkpoint of export registered is changed, Clause 10 Article 61 of Circular No. 128/2013/TT-BTC dated September 10, 2013 of the Minister of Finance.

6. If imported goods must bear stamps of imported goods as prescribed by law, it is required to have the stamps fixed on goods in addition to invoices and/or documents for imported goods.

7. With regard to imported goods on the List of imported goods subject to conditions, the documents required by competent authorities must be presented in addition to invoices and/or documents for imported goods. If originals of documents required by competent authorities have been submitted to the customs authority, there must be certified true copies of such documents.

Article 5. Invoices and/or documents for imported products being sold inland

1. With regard to goods displayed for sale or stored by importers, it is required to have delivery notes (in case of stores not keeping independent accounting records in the same province), delivery notes or invoices (in case of stores keeping independent accounting records or stores not in the same province with the headquarter), or goods receipt note (if goods are stored in warehouses).

2. With regard to goods sold or stored by entities other than importers, it is required to have invoices and/or documents of the selling entities as prescribed in the Government's Decree No. 51/2010/NĐ-CP dated May 14, 2010 on invoices for goods sale and service provisions (hereinafter referred to as Decree No. 51/2010/NĐ-CP).

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4. With regard to goods being finished products imported domestically (sent by another manufacturer/processor in Vietnam as ordered by an overseas importer), raw materials and supplies under outward processing contracts or contracts for import of raw materials for manufacture of goods for export that may be sold in Vietnam:

a) If the manufacturer/processor of goods for export transport, store, or display them for sale at financially dependent stores in the same province, it is required to have the import declaration and delivery notes;

b) If the manufacturer/processor of goods for export transports, stores, or displays them for sale at affiliated stores in other provinces province or affiliated stores in the same province, it is required to have copies of the import declaration and delivery notes or invoices as prescribed;

c) In case the manufacturer/processor of goods for export sells them for another trader, it is required to have invoices as prescribed. With regard to raw materials imported serving processing contract, processed products sold inland at the request of the hirer, it is required to have the customs declaration granted customs clearance as prescribed.

5. If the manufacture/processor of goods for export transports semi-finished products, raw materials, fuel to other facilities for further processing, it is required to have the processing contract enclosed with the delivery note and dispatch order.

6. With regard to imported goods purchased from an agency competent to sell confiscated goods, it is required to have invoices issued by such agency, which specifies the quantity, category, and value of each type of goods

7. With regard to imported goods purchased from national reserve agency, it is required to have sale invoice issued by the national reserve agency.

8. With regard to goods being duty-free gifts, presents; duty-free goods sold within checkpoint economic zones that are repurposed or sold inland, the trader must have documents proving that such goods have been declared and the original receipt for payment of import duty when selling such goods on the market.

Article 6. Actions against administrative violations

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a) Goods in transit; goods being displayed for sale; goods stored at warehouses, depots, gathering points that the trader fails to present invoices and/or documents proving their legitimacy as prescribed in Article 3 of this Circular;

b) Imported goods being sold on the market with invoices and/or documents that are concluded illegal or illegally used by competent authorities through investigation. Illegal invoices and illegally used invoices are specified in Clause 8 and Clause 9 Article 3 of Decree No. 51/2010/NĐ-CP;

c) Imported goods purchased from border residents by a purchasing agent who sells them to another entity to be transported to inland without adequate documents prescribed in Clause 3 Article 4 of this Circular.

2. Any manufacturer or trader of imported goods that trades, transports imported goods against regulations on invoices and/or documents in Chapter II of this Circular shall be liable to administrative penalties according to Decrees on penalties for administrative violations if their violations are not liable to criminal prosecution. Particularly:

a) Any entity that trades, transports, stores smuggled goods shall incur penalties according to Decree No. 185/2013/NĐ-CP dated November 15, 2013 on penalties for administrative violations against regulations on trading, manufacture and trade of counterfeit goods, prohibited goods, and consumer protection;

b) In case imported goods are sold on the market without adequate or without invoices and/or documents as prescribed in Chapter II of this Circular because they are lost or damaged, if the trader has reported the loss/damage as prescribed in Decree No. 51/2010/NĐ-CP and is able to prove the legitimacy of goods origins (using copies of invoices and/or documents provided by issuers, they shall incur administrative penalties according to the Government's Decree No. 109/2013/NĐ-CP dated September 24, 2013 on penalties for administrative violations against regulations on control of prices, fees, charges, and invoices;

c) If a violation against regulations on invoices and/or documents for imported goods being sold on the market leads to understatement of tax payable, overstatement of tax refund, or tax fraud, the trader has to pay tax arrears and incur penalties according to the Law on Tax administration;

d) Violations against regulations on invoices and/or documents that are not mentioned in Points a, b, c of this Clause shall incur penalties prescribed in relevant Decrees on administrative penalties.

Article 7. The power to impose penalties for administrative violations

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The case that is beyond an agency’s power shall be transferred to a superior agency or a competent agency together with exhibits and vehicles impounded or confiscated (if any). The competent agency that handles the case must notify the transferring agency of the result.

2. The regulatory body that discovers administrative violations pertaining to imported goods under the supervision of a customs authority shall consider imposing administrative penalties or transfer the case to a competent authority as prescribed by regulations of law on administrative penalties.

Chapter III

IMPLEMENTATION

Article 8. Responsibilities of inspecting authorities

1. Tax authorities, customs authorities, market surveillance authorities, polices authorities, the border guard, the coastguard, units and persons competent to carry out inspections and impose penalties for violations committed by sellers of imported goods being sold on the market must comply with this Circular and relevant regulations of law.

2. When inspecting goods being sold on the market, regulatory bodies and competent persons on duty must make records specifying the inspection contents, signs of violations that need verifying, violations discovered through inspection (if any); make administrative penalty record when discovering violations.

3. The Ministry of Finance shall develop a database of electronic import declarations and electronic invoices certified by tax authorities. Inspecting authorities shall connect with the database to verify documents (import declarations and invoices).

4. Inspectors must comply with regulations on inspection and control of goods being sold on the market and take legal responsibility for their acts.

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1. Traders must comply with regulations on invoices and/or documents for goods being sold on the market in this Circular and relevant regulations of law.

2. Traders of imported goods are entitled to file complaints, lawsuits, or denunciations against decisions on penalties for administrative violations. Every organization and individual is entitled to report illegal acts of competent persons. Procedures for settling complaints, denunciations, or lawsuits shall comply with regulations of law on complaints, denunciations, and lawsuits.

While pending settlement of complaints, denunciations, or Court’s decision, the trader must comply with the decision of the competent authority.

Article 10. Obligations to cooperate

Organizations and individuals have the obligation to:

1. Provide information, documents relevant to imported goods for competent authorities to facilitate inspection and imposition of penalties for violations against regulations on import and trade of imported goods.

2. Cooperate with regulatory bodies and inspecting forces in inspecting and taking actions against violations against regulations on import and trade of imported goods.

Article 11. Implementation

1. This Joint Circular comes into force from July 01, 2015.

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3. When the documents referred to in this Circular are amended or replaced, the new documents shall apply from their effective dates.

4. Difficulties that arise during the implementation of this Circular should be reported to the Ministry of Finance, the Ministry of Industry and Trade, the Ministry of Public Security, the Ministry of National Defense for consideration./.

PP MINISTER OF INDUSTRY AND TRADE
DEPUTY MINISTER




Do Thang Hai

PP THE MINISTER OF FINANCE
DEPUTY MINISTER




Do Hoang Anh Tuan

PP MINISTER OF DEFENSE
DEPUTY MINISTER




General Nguyen Thanh Cung

PP MINISTER OF PUBLIC SECURITY
DEPUTY MINISTER




General Le Quy Vuong