21 August, 2016
The General Department of Customs has provided guidance on adjustments to the duration of processing contracts. In which:
Pursuant to Decree No.187/2013/ND-CP dated 20th November 2013, if both the supplier and processor need to extend the duration of a processing contract, both the supplier and processor shall be required to sign an additional agreement before the expiry of the processing contract.
In the event if the processing contract is terminated or expired, the parties signing the processing contract shall be required to carry out the procedures on the contract liquidation in accordance with Decree No.187/2013/ND-CP dated 20th November 2013 issued by the Government.
The General Department of Customs requires the Ho Chi Minh Customs Department to control, follow up and compile a list of enterprises that requested adjustment to the validity period of processing contracts. In case the Ho Chi Minh Customs Department suspects that the enterprises amend the duration of a processing contract for the purpose of postponing the liquidation of raw materials, left-over materials, defective machines and equipment, the Ho Chi Minh Customs Department has a right to inspect the usage status of raw materials at the headquarters of the enterprises. These enterprises on the list will be consolidated and dealt with by the Ho Chi Minh Customs Department at one instant.
