Customs guarantee – one more lever for trade facilitation

VCN- In recent times, the term "customs guarantee" has been mentioned in many conferences and seminars as one of the solutions to carry out the objectives of trade facilitation. Around this issue, the Customs Newspaper reporter had an interview with Mr. Ngo Minh Hai (photo) - Deputy Director of Customs Control and Supervision Department under the General Department of Customs. 
customs guarantee one more lever for trade facilitation Confirming the role of Vietnam Customs in trade facilitation and national security
customs guarantee one more lever for trade facilitation The Customs sector’s highest reform target is trade facilitation
customs guarantee one more lever for trade facilitation Tax payment through banks: Change the method of guarantee for tax payment
customs guarantee one more lever for trade facilitation
Mr. Ngo Minh Hai - Deputy Director of Customs Control and Supervision Department under the General Department of Customs.

Could you specify the concept of customs guarantee?

Customs guarantee is a form of financial guarantee commitment required by the Customs for importers and exporters that have not completed Customs procedures as prescribed but want their goods cleared and released.

Guarantee commitment is a tripartite agreement whereby one party (guaranteed party) as importer/exporter or authorized party of goods import-export, committed the customs authority (the guarantee accepting party - the second party) to fulfilling compulsory obligations on customs procedures according to law provisions (such as payment of taxes, fees, other charges, late submission of specialized management and inspection to be released and cleared import and export goods. The third party (the guarantor is usually a credit institution / insurance company) committed to fulfilling the obligations of an importer or an exporter with the Customs authority if the importer and exporter fail to fulfil their obligations on customs procedures.

In order for the guarantee documents to be accepted by the Customs authority, the guarantor must satisfy certain criteria and standards in accordance with the provisions on financial insurance and be authorized by the competent agency (Ministry of Finance) for granting the guarantee certificate to the guarantee accepting party (Customs authority)

Customs guarantee is to implement the two main purposes which are a tool that helps Customs ensure the budget revenues related to import and export duties, charges and other fees in accordance with the law on import and export goods. And a tool that ensures the compliance of importers and exporters in the implementation of the specialized legal provisions required for importers and exporters on the submission of import and export licences, provisions on import and export conditions, quality certificate or certificate of quality exemption for import and export goods.

Could you detail more about the benefits of Customs guarantee for state enterprises and state management agencies?

Customs guarantee brings many benefits to the parties directly involved. On the side of importers and exporters, the Customs guarantee will help them have time to complete their dossiers and documents while still enjoying tax incentives, late fine payment and late submission of documents in accordance with the provisions of the specialized law. Moreover, they are allowed to take the goods for storage or their goods are released, particularly for goods subject to specialized inspection.

If an enterprise uses a guarantee certificate (on tax and fee) granted by banks, that enterprise must pay a certain fee or deposit in cash for guarantee. Therefore, working capital of the enterprise is kept at banks and not used for import and export import activities. Customs guarantee replaces bank guarantee and usually does not require an enterprise to deposit cash; the cost of customs guarantee is usually lower than that of bank guarantee. In addition, when goods are quickly taken to storage, it will ensure the quality of goods, and when the goods are quickly cleared, they will be quickly put into production or put into circulation on the market, thereby, an enterprise can quickly withdraw its capital to invest in continuous operation and shall not be fined for delayed delivery. Due to the encouragement and support from the guarantor, the enterprise can reduce mistakes that lead to fines, additional costs, etc. These are really significant economic benefits, helping enterprises save a lot of time and costs.

In terms of the Customs authority, Customs guarantee is an effective way to ensure full collection of import and export taxes and fees, including fines imposed on enterprises for violations of current regulations for import-export activities in general, as well as in specialized management activities in particular.

In terms of guarantor, the party shall receive a guarantee fee in line with the guarantee scope for importers and exporters, and shall take responsibility on behalf of the guaranteed enterprise (within the guarantee scope) if the enterprise fails to fulfil the requirements according to current regulations. Customs guarantee will be a new potential market in the insurance sector, especially in the context of maximizing trade facilitation in Viet Nam.

With the above characteristics, Customs guarantee can be considered as a useful tool to facilitate trade and increase the competitiveness of the economy.

In the current context that the Government is stepping up the implementation of measures to facilitate enterprises, reduce and simplify the specialized inspection procedures for import and export goods, what are difficulties and facilities in the application of Customs guarantee in Vietnam? What will the Customs do to soon apply the Customs guarantee in Vietnam?

As we know, the Government and the Prime Minister have strongly directed the specialized management ministries to accelerate the reform of specialized inspection procedures for import and export goods. The ministries have reviewed and cut down the number of goods subject to specialized inspection before customs clearance to transfer to post Customs clearance inspection, and changed the inspection method from pre-inspection to post-inspection. However, the number of goods subject to specialized management and inspection is still significant. If in 2017 the number of import-export declarations subject to specialized management and inspection at the border gates accounted for 19% (nearly 2 million declarations), in 2018 it was required to reduce 10%, the number is still considerable. (around 1 million declarations).

While the administrative reform has not caught up with the development of trade, the declaration, reception of dossiers, exchange of information on the results of specialized inspection between specialized management and inspection agencies and the Customs authority is still not consistent and electronized, and the National Single Window mechanism has not completely been deployed, the application of Customs guarantee is to contribute to facilitating trade, reducing time and costs for enterprises.

The application of Customs guarantee in Vietnam still faces some difficulties, such as lack of legal system relating to the the Customs guarantee (currently there is a Customs guarantee on taxes under the Law on Import-Export Duties in 2016.). In order to develop the Customs guarantee, one of the first tasks that must be done is to develop legal documents that allow insurance companies to participate in guarantee activities.

customs guarantee one more lever for trade facilitation It is possible to gradually pay tax debt without a bank guarantee

VCN – In the proposal to develop the amended Law on Tax Administration, Ministry of Finance suggested ...

Customs offices will chair and coordinate with relevant ministries and sectors to submit to competent authorities for pilot implementation; propaganda and training for enterprises and other related parties. At the same time, insurance companies also need to set standards and conditions as the basis for enterprises joining the customs guarantee system.

Thank you Sir!

By Ngoc Linh/ Huyen Trang

Related News

Consulting on customs control for e-commerce imports and exports

Consulting on customs control for e-commerce imports and exports

VCN- The General Department of Vietnam Customs (GDVC) consults widely on the draft Decree regulating customs control for e-commerce imports and exports.
Customs administrations coordinate to seize nearly 20,000 endangered wildlife

Customs administrations coordinate to seize nearly 20,000 endangered wildlife

VCN – About 20,000 live animals, all endangered or protected species, have been seized in a global operation against wildlife and forestry trafficking networks, jointly coordinated by the World Customs Organization (WCO) and INTERPOL.
Hai Phong Customs sets out 15 tasks to achieve the revenue target of VND 72,000 billion

Hai Phong Customs sets out 15 tasks to achieve the revenue target of VND 72,000 billion

VCN – Hai Phong Customs Department has issued Directive No. 624/CT-HQHP dated January 21, 2025 on drastically implementing solutions to facilitate trade, improve the effectiveness of state management, and strive to achieve the revenue target of 2025.
GDVC sets goal of widely disseminating Customs policies

GDVC sets goal of widely disseminating Customs policies

VCN – The General Department of Vietnam Customs (GDVC) has issued a plan to disseminate and educate the law; and support and provide information in 2025.

Latest News

Vietnam Customs forms implementation task force on developing customs procedures

Vietnam Customs forms implementation task force on developing customs procedures

VCN - Decision 135/QD-TCHQ, recently issued by the General Department of Vietnam Customs, establishes a task force to develop and implement new customs procedures. The task force will be headed by Deputy Director General Au Anh Tuan.
Quang Tri Customs launches business support initiatives

Quang Tri Customs launches business support initiatives

VCN - Quang Tri Customs considers the business community as partners, continuing to facilitate import-export, immigration, investment and tourism activities in the area.
Hai Phong Customs’ revenue rises about VND 1,000 billion

Hai Phong Customs’ revenue rises about VND 1,000 billion

VCN- In the first month of the year, Hai Phong Customs' revenue increased by nearly VND1,000 billion.
Administrative reform: Khanh Hoa Customs delivers impressive results

Administrative reform: Khanh Hoa Customs delivers impressive results

VCN - The Khanh Hoa Customs Department achieved a "good" ranking among the six vertical agencies in Khanh Hoa Province, with an administrative reform index of 91.28%.

More News

Over 1,500 customs declarations processed by Hai Phong Customs during Tet

Over 1,500 customs declarations processed by Hai Phong Customs during Tet

VCN - Hai Phong Customs Department processed 1,547 customs declarations during the Tet holiday period
Ho Chi Minh City: Foreign visitors spend more than VND1,500 billion to buy goods upon exit

Ho Chi Minh City: Foreign visitors spend more than VND1,500 billion to buy goods upon exit

VCN - According to the Ho Chi Minh City Customs Department, in 2024, the unit refunded VAT on goods that foreigners and oversea Vietnamese residents brought with them when leaving the country with a value of over VND1,540 billion.
3,500 customs declarations handled in Lang Son over Tet

3,500 customs declarations handled in Lang Son over Tet

VCN - During the 2025 Lunar New Year (Year of the Snake), Lang Son Customs Department processed nearly 3,500 customs declarations valued at over US$306 million.
Hai Phong Customs processes more than 1,500 declarations during 2025 Lunar New Year holiday

Hai Phong Customs processes more than 1,500 declarations during 2025 Lunar New Year holiday

VCN - During the 2025 Lunar New Year holiday, Hai Phong Customs Department processed 1,547 declarations.
US$10.5 million in trade flows through Binh Duong Customs during Tet  During the 2025 Lunar New Year

US$10.5 million in trade flows through Binh Duong Customs during Tet During the 2025 Lunar New Year

VCN - During the 2025 Lunar New Year holiday, the Binh Duong Customs Department arranged for staff to be on duty, ensuring quick and timely customs clearance, helping import and export businesses avoid interruptions and maintaining a smooth flow of goods.
Proactive customs measures for express parcels: Tightening control over import-export goods

Proactive customs measures for express parcels: Tightening control over import-export goods

VCN - International express delivery companies are the main entities responsible for handling import and export customs procedures on behalf of the recipients. The Express Customs Branch (HCM City Customs Department) has been proactive in introducing various measures to both promote trade and maintain strict control over import and export goods
Best covers of Vietnam Customs songs: 15 winners revealed

Best covers of Vietnam Customs songs: 15 winners revealed

VCN - The Vietnam Customs Youth Union has just officially revealed the 15 victorious pieces in the "Cover Songs about Vietnam Customs 2024" contest. These 15 prizes are divided into various categories, totaling approximately 100 million Vietnamese Dong in prize money
Vietnam Customs kicks off campaign for innovation, breakthrough, and growth

Vietnam Customs kicks off campaign for innovation, breakthrough, and growth

VCN - To concentrate on leadership, guidance, and vigorous implementation of goals, targets, and tasks towards the objectives of Digital Customs and Green Customs by 2025, the General Department of Vietnam Customs has launched a competition campaign with the theme: "Innovation - Breakthrough – Development”
Researching and proposing amendments to 2014 Customs Law to meet the requirements of innovation

Researching and proposing amendments to 2014 Customs Law to meet the requirements of innovation

VCN - After 10 years of implementation, the Customs Law has been effective in reforming administrative procedures and protecting national sovereignty. However, in the context of innovation requirements, it is necessary to continue reforming specialized inspections and focusing on digital transformation.
Read More

Your care

Latest Most read
Vietnam Customs forms implementation task force on developing customs procedures

Vietnam Customs forms implementation task force on developing customs procedures

Decision 135/QD-TCHQ, recently issued by the General Department of Vietnam Customs, establishes a task force to develop and implement new customs procedures.
Quang Tri Customs launches business support initiatives

Quang Tri Customs launches business support initiatives

Quang Tri Customs considers the business community as partners, continuing to facilitate import-export, immigration, investment and tourism activities in the area.
Hai Phong Customs’ revenue rises about VND 1,000 billion

Hai Phong Customs’ revenue rises about VND 1,000 billion

VCN - Notably, the revenue in January increased by VND 883 billion (or 16.7%) compared to the same period in 2024.
Administrative reform: Khanh Hoa Customs delivers impressive results

Administrative reform: Khanh Hoa Customs delivers impressive results

The Khanh Hoa Customs Department achieved a "good" ranking among the six vertical agencies in Khanh Hoa Province, with an administrative reform index of 91.28%.
GDVC sets goal of widely disseminating Customs policies

GDVC sets goal of widely disseminating Customs policies

VCN - Additionally, the GDVC aims to unify the direction and coordination within and outside the industry on the dissemination and education of laws for customs officials; to support, and provision of information to relevant organizations and individuals.
Mobile Version