Before carrying out procedures for importing the first batch of raw materials and supplies for the processing and production of exported goods, the organization or individual shall notify the production facility to the customs authority.

The place to store raw materials, supplies, machinery and equipment imported for processing and production of exported goods and products for export must be in the production area of ​​the organization or individual; in case of storage outside the production area, the organization or individual must send a document to the customs authority for consideration and decision.

Responsibility of customs authorities:

1. The customs authorities shall receive the written notices of processing and manufacturing establishments for export goods, facilities used for storage of raw materials, machinery, equipment and exported products submitted by organizations or individuals.

2. Inspection of processing and production facilities and capacity

The inspection shall be applied to the followings:

a) Organizations or individuals are considered as entities that can pose any risk in adhering to terms and conditions agreed in the contract manufacturing arrangement or are extended 275-day duration of tax payment for commodities which are raw materials, machinery or equipment used for production of exports;

b) Whenever customs authorities doubt that organizations or individuals have none of manufacturing facilities, or a sudden increase or reduction in importation of raw materials, machinery or equipment in comparison with manufacturing capability is detected.

The inspection is conducted after 05 working days as from the date on which the examination decision is made. The examination duration shall be restricted to fewer than 05 working days.

3. Checking the use and inventory of raw materials, machinery and equipment 

3.1 The inspection shall be applied to the followings:

a) Organizations or individuals considered as entities who may pose the risk of importing machinery, equipment, raw materials or inputs of which the life cycle is ended but have produced no commodity for export;

b) There are reasonable grounds for demonstrating that organizations or individuals report a sudden increase or reduction in importing raw materials, machinery, equipment, or exporting products;

c) There are reasonable grounds for demonstrating that organizations or individuals have sold their raw materials, machinery, equipment or products at the domestic market but have not carried out any customs declaration yet;

d) Declaration of exported products carried out by organizations or individuals is found in breach of legal regulations or contrast to the actual condition;

dd) There is any suspicious difference in data or figures shown in the financial report on use of raw materials, machinery, equipment and exported commodities in comparison with those shown on the system of customs authorities.

3.2 The Director of Customs Sub-department shall carry out customs post-clearance examination in accordance with the Director of Customs Department of a province or city.

Such examination shall take place within fewer than 05 working days at manufacturing facilities or main office of organizations or individuals. In respect of complicated cases, the Director of Customs Department of a province or city shall give a decision to extend the examination deadline for more 05 days at maximum.

3.3 Issues that need to be inspected:

a) Customs documentation, statements on receipt - dispatch - inventory, records on monitoring received or dispatched raw materials, machinery or equipment;

b) The actual norm determined for manufacturing of exported products;

c) Suitability of raw materials, machinery or equipment for exported products;

d) Raw materials, machinery or equipment used in the production line;

dd) Quantity of in-stock products;

e) Quantity of finished products that have not been exported yet.

4. Checking the financial report of the current use of raw materials, machinery and equipment

- Organizations or individuals shall carry out the financial reporting of current use of raw materials, machinery, equipment in the form of a receipt—dispatch – inventory report.

- Customs authorities shall inspect a financial report based on risk management method. Depending on the result of examination of a financial report, customs authorities shall deal with issued relating to taxes levied on imported raw materials, machinery or equipment used for manufacturing exported products.