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THE GOVERNMENT        THE SOCIALIST REPUBLIC Of VIETNAM
  No.104/TTg           Independence-freedom-Happiness
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                              Hanoi, 16th March, 1994.

THE PRIME MINISTER Of THE GOVERNMENT

+ Pursuant to the Decree of Customs of february 20th, 1990.

+ Considering the proposal by the General Director of the General Department of Customs.

DECIDES

Article 1

Stipulate attached to this decision the Regulations on Bonded - Warehouse.

Article 2

This decision replaces the Decision No 43- CP of January 31, 1992 issued by the Chairman of the Council of Ministers on experimental establishment and management of bonded - warehouse.

Article 3

The General Director of the General Department of Customs in accordance with this decision shall enact circulars guiding the replacement of the regulations on the instruction of the implementation of the Decision No 43-CP of January 31st,1992.

Article 4

This Decision shall come into force on the date of its signing. Ministers, Heads of Ministerial equivalent units, heads of agencies under the Government, the chairmen of People's Committees of provinces and cities directly under the central authority shal l be responsible for the implementation of this Decision.

for the Government
Vice Prime Minister

PHAN VAN KHAI (Signed)

THE GOVERNMENT         THE SOCIALIST REPUBLIC Of VIETNAM
                         Independence-freedom-Happiness
                              ___________________

REGULATIONS ON BONDED - WAREHOUSE
(Attached to the decision No 104/TTg of March 16th, 1994 by the Prime Minister)

General provisions

Article 1

The bonded - warehouse is established in the territory of Vietnam, separately from the surrounding areas so as to temporarily store, preserve foreign or domestic goods brought into in accordance with the contracts between the owner of the warehouse and th e owner of the goods under the control and supervision of the Vietnamese customs authorities. The goods temporarily stored and preserved in the bonded - warehouse are those goods that await either exportation outside Vietnam or importation into Vietnam. T he ownership of the owner of the commodities with regard to his/her goods stored in the bonded - warehouse is guaranteed.

Article 2

The bonded - warehouse as well as all goods, exiting and / or entering transportation vehicles or being stored and preserved at the bonded - warehouse shall be subject to the control, supervision and state management by the customs authorities.

Article 3

The terms used in this Regulation shall be interpreted as follows:

1/ "Owner of the warehouse" is the enterprise permitted to so business on bonded - warehouse. The owner of the warehouse is subject to the control, supervision of the customs authorities regarding the establishment and operation of the warehouse, the move ment of the goods during the storage period at the warehouse.

2/ "Owner of the goods" is the enterprise that has goods stored at the bonded - warehouse in compliance with the provision of the contract on renting the bonded - warehouse between the owner of the warehouse and the owner of the goods.

3/ "Legal representative of the owner of goods", is the person authorized by the Law and regulations, including foreigner. The owner of goods shall be responsible for the decisions regarding the authorized legal representative.

4/ "Customs authority of the bonded - warehouse" is the unit of the customs authorities that directly carries out the task of controlling, supervising and implementing the customs procedures with regard to the goods brought into or taken out of and stored , preserved at the bonded - warehouse.

Chapter II

The establishment and rent of the bonded - warehouse

Article 4: The establishment of the bonded - warehouse:

1/ Vietnamese enterprise established in accordance with law and regulation, wishes to be considered for the issuance of the license to do business on bonded - warehouse must have the following conditions:

a/ Permitted by the state to make use of the necessary ground - surface of the warehouse, possessing equipment to separate the place of the warehouse from the surrounding areas, the basic material and technical equipment to ensure the safety of the people , transportation vehicles, storage and preservation of goods that are convenient for the control and supervision by the customs and other concerned authorities. The bonded - warehouse shall be located at the intersection of goods exchange routes between our country and foreign countries, and convenient for the movement of export and import goods. Based on such conditions, the General Department of Customs shall submit to the Prime Minister for making decisions on areas allowed to be established as bonded - warehouse.

b/ Having a team of personnel qualified for doing warehouse business , receiving and delivering goods and professionalized in international - commercial transactions

c/ Non- violation of Law and regulations and having transparent relations of business, finance and credit.

d/ Paying all fees on establishment of bonded - warehouse in accordance with the finance and customs interministerial provisions.

2/ The enterprise shall apply for the establishment of the bonded - warehouse attached by a set of following documents.

+ Designing scheme of the warehouse area : the boundary lines separating it from the outside areas, positions of the warehouses, the system of the transportation roads within the area, the system of security and fire extinguishment, the office of the ware house customs authority unit.

+ The specific regulations on the operation of the warehouse.

+ Documents on the juridical person status and bank accounts.

+ Legal documents on the right to use the warehouse.

Having been certified by the Minister, Head of Agencies under the Government or Chairman of the People's Committee of the province or city directly under the Central administration, the application for the establishment of the bonded - warehouse as well a s the attached set of documents shall be sent to the General Department of Customs for consideration before submitting to the Prime Minister, the General Department of Customs shall issue the license to do business on bonded - warehouse specifying the dat e on which the warehouse commences operation; After such date, if the warehouse remains inoperative, the General Department of Customs shall withdraw the license.

3/ Once a year, the General Department of Customs shall conduct reconsideration of the issuance of license on the establishment of the bonded warehouse to the enterprise and report to the Prime Minister on the compliance with law and regulation by the ent erprise that have been granted the licenses.

Article 5

The concerned services in the operation of the Bonded - warehouse.

The owner of the bonded - warehouse is allowed to carry out the services of transportation and brokerage of consumption with regard to the goods stored at the warehouse; other services such as custom declarations, super intendence, insurance, reproductio n and consolidation of packages are subject to the permission by the customs authorities at the provincial level wherein the bonded - warehouse is located. The owner of the warehouse shall fully comply with the currently existing provisions of Law and reg ulations relating to such services.

In connection with the services of reproduction and consolidation of packages, before and after their implementation either the owner of the goods or the owner of the warehouse with the agreement by the former shall make clear declarations to the customs authorities for certifying the state of the packages, the quantity and quality of the goods.

Article 6

The rent of the bonded - warehouse

1/ Objects permissible to rent the bonded - warehouse

+ Enterprises, foreign individuals and Vietnamese people settling abroad

+ Vietnamese enterprises of all economic sectors permitted by the authoritative agencies to carry out export and import operations

+ Enterprises with foreign investment capital permitted to conduct imports and exports in conformity with the license issued by the State Committee for Co-operation and Investment of Vietnam.

2/ The contract on renting the bonded - warehouse between the owner of the warehouse and the owner of the goods must comply with the unified Model issued by the General Department of Customs and must be implemented prior to the arrival of the goods at the entry port of Vietnam.

3/ The duration of renting the bonded - warehouse shall be specified in the warehouse renting contract. The renting duration may be extended each time but the Customs Authorities of the bonded - warehouse must be notified prior to the renting contract.

In case the warehouse renting contract has expired but the owner of the goods fails to carry out the procedures of extension, the goods shall be handled in accordance with Article 11 of this Regulation.

Chapter III

Customs procedures regarding goods brought into or out of and stored and preserved at the bonded - warehouse.

Article 7

Goods brought into, out of and stored and preserved at the bonded - warehouse.

1/ All kinds of goods awaiting exportation or importation shall be accepted for storage at the bonded - warehouse, except the followings:

+ The goods bearing the fake trade mark of Vietnamese origin, goods whose origins are unknown

+ Goods that cause danger to the public or create environmental pollution.

+ Goods that are forbidden either to export or import.

2/ Goods stored, preserved at the bonded - warehouse must conform to the Bonded - warehouse renting contract. Goods brought into or our of the bonded - warehouse must be declared and subject to the control, supervision and management by the customs author ities and payment of customs fees as exported or imported goods.

3/ The transportation of goods from the entry port or from the regrouping place after fulfilling the customs procedures ( with regard to exported goods brought into the bonded - warehouse) or from the bonded - warehouse to the entry port shall be subject to the supervision by the customs authorities.

Article 8

Customs procedures concerning goods brought into the Bonded - warehouse:

1/ Goods from foreign countries brought into the bonded - warehouse shall not have to pay import tax, however upon the arrival of the goods at the first entry port of Vietnam, the owner of goods or his/her legal representative shall have to present to the customs authorities of the bonded - warehouse the contract on renting the bonded -warehouse and other documents specified by the General Department of Customs. The procedures of bringing the goods into the warehouse shall be in accordance with the provis ions by the General Department of Customs.

2/ Vietnamese home made goods brought into the warehouse to await exportation

Should the owner of the Vietnamese home made goods wishes to bring his goods into the bonded - warehouse, he shall have to fulfill the customs procedures at the customs authorities of the province or city wherein the bonded - warehouse is located and at the same time pay the taxes as provided for by the Law. The owner of the goods or his/ her legal representative shall present to the customs authorities of the bonded - warehouse the bonded - warehouse renting contract and other necessary documents specif ied by the General Department of Customs so as to carry out the procedures of warehouse entry.

Article 9

Customs procedures concerning goods brought out of the Bonded - warehouse

1/ Exporting goods abroad:

The owner of goods who wishes to export abroad the goods stored in the warehouse shall have to carry out procedures of customs declaration and present to the bonded - warehouse customs authorities the followings:

+ Permit to export goods or authorized permit to export goods.

+ Ticket of warehouse exit.

+ Declaration form of goods to be exported.

The custom authorities of the bonded - warehouse shall compare the set of documents declared when exiting the warehouse with the procedural documents of entering the warehouse and the reality of the goods lot. If everything is correct, the customs authori ties of the bonded - warehouse shall conduct the procedures of export and escort the goods to the entry port for exportation. In case the goods lot can not be exported in one batch, it can be deducted back until all the quantity of goods specified in the contract has been exported.

2/ Importing goods for consumption in the domestic market in Vietnam:

foreign goods temporarily stored at the bonded warehouse if allowed to enter for consumption in the domestic market in Vietnam shall be regarded as foreign goods imported into Vietnam subject to the full implementation of the Vietnamese regulations on imp ort, the customs procedures and payment of import tax. The date for calculating import tax is the date of registration of the import declaration form at the import declaration form at the provincial customs authority.

Article 10

Management of goods stored at the bonded - warehouse.

1/Goods stored at the bonded -warehouse are subject to the control and supervision by the customs authorities. The bonded - warehouse customs authorities must be informed of all movements of commodities inside a warehouse or from one warehouse to another within the area of the bonded - warehouse. In order to carry out the services specified in Article 5 of this regulation, after the approval by the customs authorities of provinces or city, the owner of the warehouse shall have to inform the customs auth orities of the bonded - warehouse before the implementation of these services subject to the supervision by the bonded - warehouse customs authorities during the entire period of implementation.

2/ The owner of the bonded - warehouse shall open books to follow the warehouse entry and exit in accordance with the unified models and the regime of notation specified by the General Department of Customs.

3/ Periodically (at least once a year) or unexpectedly the customs authorities at provincial level may carry out examination or inventory of the goods in the warehouse. The examination of inventory shall be carried out with the presence of the owner of t he warehouse or his/her legal representative. Periodically the owner of the bonded - warehouse in conformity with the Models specified by the General Department of Customs.

4/ In the case of liquidation or destruction of the goods lot that have been broken, damaged deteriorated or outdated occurring during the storage period, the owner of goods or his/ her legal representative shall together with the owner of the warehouse e stablish the minutes of super intendence certified by the functional agencies, one copy of which shall be sent to the customs authorities. The destruction of such goods lot shall be fully carried out in accordance with the currently exiting procedures. T he responsibility to compensate the goods stored at the warehouse that have been damaged or lost shall been borne by the owner of the warehouse and shall be resolved in accordance with the contract on renting the warehouse.

Chapter IV

Handling of violation

Article 11

All acts of violation of the provisions of this regulation, depending on the nature and degree of violation shall be subject to penalties in accordance with the Ordinance on Administrative sanctions, withdrawal of license or investigation of Criminal liab ility in conformity with the Criminal Code of the Socialist Republic of Vietnam

Chapter V

Provision of implementation

Article 12

This Regulation shall take effect of implementation in accordance with the Decision number 104/TTg of 16th 1994.

Article 13

The General Director of the General Department of Customs shall be responsible for instructing and organizing the implementation of this Regulation.

for the Government
Vice Prime Minister

PHAN VAN KHAI (Signed)