Five issues related to goods in transit studied for revisions

VCN - Regulations on the first import border gate, the last export border gate; customs dossiers; conditions for customs inspection and supervision for means of transport of goods in transit to be studied and amended in the draft Decree amending and supplementing Decree 08/2015/ND-CP .
Tay Ninh Customs: Strict control and management of goods in transit Tay Ninh Customs: Strict control and management of goods in transit
Control goods in transit to prevent offences Control goods in transit to prevent offences
HCM City Customs: Closely control goods in transit across border gates HCM City Customs: Closely control goods in transit across border gates
Customs forces supervise means of transporting fruit in transit through Bac Luan II Bridge, Mong Cai.
Customs forces supervise means of transporting fruit in transit through Bac Luan II Bridge, Mong Cai.

The first group of problems is to add regulations on the first import border gate and the last export border gate.

Current regulations in Clause 1, Article 43 of Decree No. 08/2015/ND-CP (amended and supplemented in Clause 19, Article 1 of Decree No. 59/2018/ND-CP) stipulate that goods in transit must carry out procedures at the first import border gate and the last export border gate, but there is no regulation on these gates to apply in case of goods in transit.

Meanwhile, in Article 21 of Decree No. 08/2015/ND-CP (amended and supplemented in Clause 9 Article 1 of Decree No. 59/2018/ND-CP) there are regulations on the first import border gate and these provisions apply to customs valuation; if applied to goods in transit, they are not appropriate. During the implementation of the provisions of Article 43 above, there are different interpretations of the first import border gate and the last export border gate (the place of discharge/port of destination indicated on the bill of lading).

To ensure transparency and clarity, the draft decree will specify the first import border gate and the last export border gate.

The second issue studied and revised is the customs declaration in the case of trans-shipment, storage, change of mode of transport, means of transport, and the method requested by the declarant to the Customs office when performing these tasks.

Article 43 of Decree 08/2015/ND-CP (amended and supplemented in Clause 19, Article 1 of Decree 59/2018/ND-CP) stipulates cases of trans-shipment, storage, division of shipments, change of mode of transport, means of transport, the customs declarant must make a customs declaration for each transport route; when requesting to perform these tasks, the customs declarant must submit an application (paper copy) to the Customs office.

It is not appropriate to require enterprises to perform declarations according to each route of transportation, and to submit applications manually. Enterprises must declare many times, increasing costs as well as time for procedures.

Therefore, the General Department of Customs is expected to amend in the direction of not stipulating the declaration of each route in the case of trans-shipment, storage, change of mode of transport or means of transport.

Accordingly, enterprises and relevant Customs Sub-Departments shall carry out customs procedures according to regulations of the Ministry of Finance for goods subject to customs supervision; at the same time, stipulate the submission of applications, receipt and response of applications through the E-customs data processing system.

The third problem about customs records is that the current system does not support detailed customs declarations for goods in transit, but this is a non-taxable commodity, so it is necessary to declare details of goods so that Customs authorities as well as relevant agencies have information to carry out inspection and supervision.

In the future, the Ministry of Finance (General Department of Customs) will build a smart customs system, whereby the customs declaration will have information criteria for the customs declarant to declare in detail.

Therefore, in the draft decree, the content of the detailed declaration of goods will be revised in the following direction: A detailed list of goods in transit according to the form issued by the Ministry of Finance, unless the customs declarant has declared the detailed information about the goods on the customs declaration.

The fourth issue is that the conditions for customs supervision and inspection for vehicles transporting goods in transit are also revised.

According to the General Department of Customs, in Article 43 of Decree No. 08/2015/ND-CP (amended and supplemented in Clause 19, Article 1 of Decree 59/2018/ND-CP), the responsibility of the customs declarant is transporting goods according to the correct route and border gate, ensuring the original condition of the goods, ensuring the customs seal, ensuring the original seal of the carrier, no regulations on supervision conditions for means of transport of goods in transit.

Problems arise in the process of implementation, because goods in transit are not subject to tax, goods need to be closely monitored to ensure that they are not smuggled inland, supervision on goods and means of transport must be associated, therefore, based on the provisions of Article 71 of the Customs Law, it is necessary to prescribe the conditions for supervision by the Customs.

Therefore, the draft decree will add regulations that means of transport of goods in transit must meet the conditions of customs supervision as prescribed by the Minister of Finance.

The fifth issue is that regulations for transit goods separated and packed with import goods and export goods also must be revised and supplemented to ensure management.

According to the General Department of Customs, it is not necessary to allow goods to be separated and packed in areas which are not in border-gate areas, especially in the context that goods in transit have many potential trade fraud risks. The separation and packing outside the border gate area is difficult to manage, easily leading to taking advantage of smuggling goods inland. In addition, in the ASEAN customs transit model, which is internalized in Decree No. 46/2020/ND-CP, there is no mechanism for packing or separating, the goods must be transferred in the original state of the shipment according to each means of transportation from the exporting country to the importing country.

Therefore, in the draft Decree, the regulations on separation and package of goods in transit with exported and imported goods will be removed at locations which are not the first import border gate and the last export border gate.

Accordingly, goods in transit can only be separated (transit shipments or goods in transit are separated with imported goods) at the first import border gate, goods in transit are packed together with exported goods at the first import border gate.

Therefore, to reduce administrative procedures in this case, the customs declarant is not required to make a written request for the separation and packing because these works are being carried out in the border gate area under supervision of the Customs (similar to goods separated in CFS at the border gate).

By N.Linh/ Binh Minh

Related News

Preliminary assessment of Vietnam international merchandise trade performance in the second half of September, 2024

Preliminary assessment of Vietnam international merchandise trade performance in the second half of September, 2024

The Vietnam Customs Statistics announced that in the second half of September, 2024 the total Vietnam’s exports of US dollars 19.71 billion and imports of nearly US dollars 16.74 billion resulted in a trade surplus of US dollars 2.97 billion.
Closely control imported products traded via e-commerce

Closely control imported products traded via e-commerce

VCN – The General Department of Vietnam Customs has directed local customs departments to strengthen control and supervision for imported goods traded via e-commerce.
Regulating goods across Huu Nghi International Border Gate during peak times

Regulating goods across Huu Nghi International Border Gate during peak times

VCN – In order to reduce the pressure on customs clearance of import and export goods for the international border gate pair during peak times, the management agency of Lang Son (Vietnam) has just discussed with the management authority of Pingxiang (China) to strengthen coordination in regulating the means of transporting goods of enterprises on both sides.
Steel industry proactively “coexists” with trade defense lawsuits

Steel industry proactively “coexists” with trade defense lawsuits

VCN - Having regularly to respond to trade defense lawsuits is a big challenge for the Vietnamese steel industry, but this is an opportunity for steel enterprises to improve their competitiveness and integrate more deeply into the global steel market.

Latest News

Hanoi Customs resolves tax policy queries for enterprises

Hanoi Customs resolves tax policy queries for enterprises

VCN - Queries regarding customs consultation procedures and tax refunds due to price reduction clauses were addressed by the Hanoi Customs Department, providing clarity for businesses.
Regularly check tax obligations to avoid temporary exit suspension

Regularly check tax obligations to avoid temporary exit suspension

VCN - In order to avoid the situation of arriving at the airport or border gate and only finding out that you owe taxes and being temporarily suspended from leaving the country by the Tax Authority, the Tax Authority recommends that taxpayers regularly look up their tax obligations to have a plan to pay taxes on time, not letting the tax debt situation drag on and drag on.
Implementing the SAFE framework in Vietnam: Assessment through the lens of international standards

Implementing the SAFE framework in Vietnam: Assessment through the lens of international standards

VCN - In June 2005, the World Customs Organization (WCO) developed and adopted the SAFE Framework of Standards to Secure and Facilitate Global Trade. The SAFE Framework plays a crucial role in encouraging countries to modernize, enhance security, and facilitate trade within global supply chain management and Authorized Economic Operator (AEO) programs. This approach introduces a comprehensive method for cross-border goods management and promotes closer cooperation between Customs, businesses, and stakeholders. The Customs News presents a two-part series on implementing the SAFE Framework in Vietnam.
Proposing the Tax Authority be flexible in applying tax debt enforcement measures simultaneously

Proposing the Tax Authority be flexible in applying tax debt enforcement measures simultaneously

VCN - In the draft revised Law on Tax Administration, the Ministry of Finance proposed amending regulations on measures to enforce administrative decisions on tax administration to remove obstacles in policy mechanism and improve the effectiveness of tax administration.

More News

Many shortcomings in process and manual book on handling administrative violations

Many shortcomings in process and manual book on handling administrative violations

VCN - Legal policies on handling administrative violations have effectively supported the technical work of the Customs sector. However, some legal bases and regulations have been amended, replaced, and supplemented, which have limited the efficiency of handling administrative violations of the customs sector.
Implementing the SAFE Framework in Vietnam: Lessons from practice

Implementing the SAFE Framework in Vietnam: Lessons from practice

VCN - The Framework of Standards to Secure and Facilitate Global Trade (SAFE Framework) is a strategic international instrument introduced by the World Customs Organization (WCO) to enhance security and trade facilitation in global supply chains. It contributes significantly to the economic development of the 21st century.
Implementing the SAFE Framework in Vietnam: Solutions and Recommendations

Implementing the SAFE Framework in Vietnam: Solutions and Recommendations

VCN - Recognizing the significance, impact, and benefits of the SAFE Framework in customs modernization and reform, Vietnam Customs is advancing the implementation of SAFE. This involves both capacity building and phased deployment aligned with Vietnam Customs’ development strategy and practical needs.
Abolishing regulations on tax exemption for small-value imported goods must comply with international practices

Abolishing regulations on tax exemption for small-value imported goods must comply with international practices

VCN - The Ministry of Finance said that the abolition of regulations on tax exemption for imported goods valued at less than VND1 million must comply with international practices in the context of the growing trend of cross-border e-commerce activities.
Policy adaptation and acceleration of digital transformation in tax and customs management

Policy adaptation and acceleration of digital transformation in tax and customs management

VCN - In order to contribute to economic growth, tax, customs and logistics management policies need to ensure high adaptability, stability and predictability so that they require little amendment or supplementation.
Implement regulations on special preferential import tariffs under VIFTA

Implement regulations on special preferential import tariffs under VIFTA

VCN - The General Department of Vietnam Customs (GDVC) requests provincial and municipal customs departments to implement Vietnam's special preferential import tariffs under the Free Trade Agreement between the Government of the Socialist Republic of Vietnam and the Government of the State of Israel for the period 2024-2027 (referred to as the VIFTA) from October 15, 2024.
Perfecting tax policy for goods traded via e-commerce

Perfecting tax policy for goods traded via e-commerce

VCN - In order to ensure the goal of developing e-commerce activities without causing loss of state budget revenue, the Customs authority is actively coordinating with policy advisory units of the Ministry of Finance to research and review regulations on tax exemption for import and export goods transacted via e-commerce.
Are belongings of foreigners on business trip to Vietnam exempt from tax?

Are belongings of foreigners on business trip to Vietnam exempt from tax?

VCN - That is the question of Nhat Viet Relocation Company Limited, which has just been answered by the Customs Department and given specific instructions on providing a confirmation of residence of foreigners on business trip to Vietnam to follow tax exemption procedures for movable assets.
Amending regulations on enforcement measures in tax administration

Amending regulations on enforcement measures in tax administration

VCN - In draft of 1 law amending 7 laws in the financial sector, the Ministry of Finance proposed to amend the regulations on enforcement measures in tax administration in the Law on Tax Administration.
Read More

Your care

Latest Most read
Hanoi Customs resolves tax policy queries for enterprises

Hanoi Customs resolves tax policy queries for enterprises

Queries regarding customs consultation procedures and tax refunds due to price reduction clauses were addressed by the Hanoi Customs Department, providing clarity for businesses.
Regularly check tax obligations to avoid temporary exit suspension

Regularly check tax obligations to avoid temporary exit suspension

Tax Authority recommends that taxpayers regularly look up their tax obligations to have a plan to pay taxes on time, not letting the tax debt situation drag on and drag on.
Implementing the SAFE framework in Vietnam: Assessment through the lens of international standards

Implementing the SAFE framework in Vietnam: Assessment through the lens of international standards

The SAFE Framework plays a crucial role in encouraging countries to modernize, enhance security, and facilitate trade within global supply chain management and Authorized Economic Operator (AEO) programs
Proposing the Tax Authority be flexible in applying tax debt enforcement measures simultaneously

Proposing the Tax Authority be flexible in applying tax debt enforcement measures simultaneously

VCN - In the draft revised Law on Tax Administration, the Ministry of Finance proposed amending regulations on measures to enforce administrative decisions on tax administration to remove obstacles in policy mechanism and improve the effectiveness of tax
Many shortcomings in process and manual book on handling administrative violations

Many shortcomings in process and manual book on handling administrative violations

VCN - Legal policies on handling administrative violations have effectively supported the technical work of the Customs sector. However, some legal bases and regulations have been amended, replaced, and supplemented, which have limited the efficiency of h
Mobile Version