Circular No. 74/2010/TT-BTC dated May 14, 2010 of the Ministry of Finance amending and supplementing some contents of the Finance Minister's Circular No. 116/2008/TT-BTC of December 4, 2008, guiding c
Article 1. Processing contracts
1. To amend and supplement Point 1, Clause II, Section I of Circular No. 116/2008/TT-BTC as follows:
“1. Forms of processing contracts
1.1. A processing contract must be made in writing or other forms of equivalent validity, including telegraph, telex, fax, data message and other forms prescribed by law.
Regarding signatures and seals in contracts: Foreign traders shall sign while Vietnamese traders shall sign and seal contracts as required by Vietnam’s law.
1.2. The processors being Vietnamese traders shall sign and seal documents enclosed to contracts which are issued in electronic form by the principals that are foreign traders.”
2. To amend Point 2, Clause II, Section I of Circular No. 116/2008/TTBTC as follows:
“2. Contents of processing contracts
A processing contract must have all details specified in Article 30 of the Government’s Decree No. 12/2006/ND-CP of January 23, 2006. In case the principal and processor conduct transactions via a third party, such must be expressed in the contract, contract annex or relevant document as proof.”
3. To amend and supplement Point 3.1, Clause II, Section I of Circular No. 116/2008/TT-BTC as follows:
“3. Processing contract annexes
Annexes of a processing contract constitute an integral part of the processing contract.
3.1. Any modifications, supplements or adjustments to the terms of a processing contract must be expressed in contract annexes which must be notified to the customs office before or when the enterprise carries out import or export procedures for the first goods lot subject to such annexes and before the expiration date of the processing contract. Particularly for the value of raw materials and supplies imported for processing, the value written on the commercial invoice included in the import dossier will be accepted and no adjustment annex is required.”
Article 2. Places of customs clearance
To amend Point 1, Clause III, Section I of Circular No. 116/2008/TTBTC as follows:
“1. Customs procedures for a specific processing contract (including the receipt of the contract, acceptance of norms, performance of customs procedures for each lot of imports or exports under the contract and liquidation of the contract) shall be carried out at a district-level Customs Department under a provincial-level Customs Department which is selected by the enterprise concerned. Specifically:
a/ The district-level Customs Department of the locality where the production establishment performing the processing contract (including reprocessing establishment) is based, or
b/ The district-level Customs Department of the locality where the enterprise’s head office or lawfully established branch is based. If there is no customs office in the locality where its production establishment, head office or branch is based, the enterprise may select a district-level Customs Department convenient for customs clearance registration.”
Article 3. Responsibilities of enterprises and customs offices
To amend Clause IV, Section I of Circular No. 116/2008/TT-BTC as follows:
1.1. Enterprises shall take responsibility before law and customs offices when notifying their contracts; making declarations and carrying out import procedures for raw materials, supplies and auxiliary materials; notifying and adjusting norms; undertaking intermediary processing; making declarations and carrying out export procedures for processed products; and liquidating processing contracts. Upon completion or expiration of a processing contract, they shall liquidate the processing contract and carry out liquidation procedures at the customs office under Article 35 of the Government’s Decree No. 12/2006/ND-CP of January 23, 2006.
1.2. Upon disposing of redundant raw materials and supplies, scraps, faulty products, wastes and hired or borrowed machines and equipment under Point 6, Clause XII, Section II of Circular No. 116/2008/TT-BTC, enterprises shall proactively declare them to, and carry out procedures at, customs offices according to regulations.
2. Customs offices:
To apply risk management techniques; arrange officers to monitor enterprises in the performance of processing contracts; apply information technology to customs supervision and management and post-customs clearance inspection so as to facilitate and strictly manage the importation of raw materials and materials, exportation of products and liquidation of processing contracts.”
Article 4. Procedures for notification of processing contracts To amend Clause I, Section II of Circular No. 116/2008/TT-BTC as follows:
“I. Procedures for notification of processing contracts
1. Responsibilities of enterprises:
At least 1 day before carrying out import procedures for the first goods lot under the processing contract, the enterprise shall notify the processing contract to the customs office. A dossier comprises:
1.1. The processing contract and its annexes (if any): To submit 2 originals (1 to be kept by the customs office and 1 to be returned to the enterprise after the contract is received) and 1 Vietnamese version (if the contract is made in a foreign language other than English).
1.2. The business registration certificate or investment license or investment certificate, for foreign-invested enterprises (if carrying out registration procedures for the first time): To submit 1 copy certified by the enterprise.
1.3. The tax identification number registration certificate (if carrying out registration procedures for the first time): To submit 1 copy certified by the enterprise.
1.4. The permit of the Ministry of Industry and Trade, for processed goods on the list of imports and exports subject to permits: To submit 1 copy certified by the enterprise and produce the original for comparison.
1.5. The certificate of eligibility for scrap import (in case of importing scraps for use as processing raw materials), issued by the provincial-level Natural Resources and Environment Department of the locality where the enterprise’s production establishment is based under Joint Circular No. 02/2007/TTLT-BCT-BTNMT of August 30, 2007, of the Ministry of Industry and Trade and the Ministry of Natural Resources and Environment, guiding Article 43 of the Law on Environmental Protection regarding criteria and conditions for scrap import.
1.6. A document explaining and evidencing its production establishment, for enterprises undertaking the processing for the first time, specifying the address of the enterprise’s head office, the address of the production establishment, equipment line and design capacity (even for cases of outsourcing); the account number and the name of the bank with which the enterprise deposits its money: To submit 1 original.
The enterprise is required to give explanations only once and make additional explanations only when there are any changes in the explained contents. In case of change in the legal person status, address of its working office or production establishment (from the time of submitting the processing contract to the time of completing the liquidation of the contract), the enterprise shall promptly notify in writing these changes to the district-level Customs Department managing the processing contract.
1.7. The processing outsourcing contract (for the case of outsourcing the processing of all products): To submit 1 copy certified by the enterprise and produce the original for comparison.
1.8. The written registration of raw materials and supplies for the processing contract or annex, made according to form No. 01/DKNVL-GC provided in Appendix I to Circular No. 116/2008/TT-BTC: To submit 2 uhoriginals.
2. Tasks of customs offices: 2.1. To receive processing contracts:
a/ For cases in which inspection of production establishments is not required: Within 8 working hours after the enterprise submits a complete and valid dossier, the customs office shall complete procedures for receiving the processing contract.
b/ For cases in which inspection of production establishments is required: Within 5 working days after the enterprise submits a complete and valid dossier, the customs office shall inspect production establishments and complete the receipt of the processing contract (or issue a written refusal of the receipt of the processing contract, if prescribed conditions are not fully met).
2.2. To examine the conditions for the receipt of the processing contract.
2.3. To check the completeness and validity of the processing contract.
2.4. To enter in a computer information related to the processing contract; return to the enterprises 1 original of the processing contract and original documents already produced.
2.5. To inspect production establishments:
a/ For cases in which inspection of production establishments is required: When an enterprise submits its processing contract or during production, if the customs office has any doubt about the address of its production establishment or matters related to the security for the performance of the processing contract, it shall inspect the enterprise’s production establishment.
b/ Time of inspection:
The customs office may conduct inspection at the following points of time:
b1. After the enterprise submits a complete dossier of notification of the processing contract; or
b2. In the production process.
c/ Leaders of the district-level Customs Department managing the processing contract are competent to decide on the inspection of the enterprise’s production establishment.
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