On December 4, 2008 the Ministry of Finance issued Circular No.116/2008/TT-BTC guiding the customs procedures for goods processed under contracts with foreign traders.
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Accordingly, at least one day before filling in the procedures for importing the first goods lot of a processing contract, enterprises must register such processing contract with customs office. Since registration of the processing contract until liquidation of the processing contract, if enterprises change their legal status, address of head office or production establishment, they are required to promptly notify such changes in writing to the sub-department of the Customs Department which is managing the processing contracts.
Processer must register use and consumption norms, wastage rates of raw materials with the customs office. In the course of performance of processing contracts, if changes in the nature of materials, process conditions and in requests of each import order lead to changes in the actual norms, enterprises may adjust norms of goods items registered with the customs office in accordance with the actual ones experienced and must present required documents specifying reasons for each adjustment. The adjustment of norms does not apply to exported goods. When making adjustment for norms of goods, enterprises do not have to change the code of goods items stated in the processing contracts.
In case where the processes purchase materials and supplies and appoint a third party to deliver them to processing enterprises, the customs dossiers for importing goods lots must include documents of processees notifying the processing enterprises of such.
In case where processed goods are exported to a third party but the processing contract does not specify name and address of the third party, the enterprises shall submit the customs office one copy of the processee’s written designation for goods delivery to the third party and shall produce the original one for comparison with the photocopy submitted upon registration of export declarations.
This circular shall be of full force and effect after 15 days since its publication on the Official Gazette, replacing Decision No.69/2004/QD-BTC dated 24/8/2004 of the Ministry of Finance and other regulations contrary to this circular.
(Source: AAC)
