HCM City Customs requests effective control of goods in transit

	Enterprise transporting goods in transit raises many questions on specialized inspection
	HCM City Customs discovers 676 infringing shipments of goods in transit
	Perfecting the legal framework to facilitate trade and improve management efficiency under the National Single Window

Pointing out tricks of enterprises in the field of transit of goods, HCM City Customs Department offered some solutions to strictly control this regime.

Potential risks

HCM City Customs Department said customs procedures for the transit of goods are very simple and streamlined but have many potential risks in the transportation process of goods to the export border gate. In addition to enterprises complying with the law and international practices on temporary imports for re-export, transit and transshipment of goods, there are many enterprises taking advantage of this regime to commit violations.

Serious violations related to goods in transit have occurred such as illegally taking goods from containers of goods in transit, providing inaccurate information about goods in transit to exchange goods in transit or concealing goods on the list of CITES; failing to declare goods in transit subject to a transit permit issued by the Ministry of Industry and Trade; illegally consuming goods in transit to the inland; goods in transit being fake goods, or goods infringing intellectual property rights, or personal gifts (with consignee in Vietnam).

Recently, Saigon port area 1 Customs Branch has detected many cases of goods in transit that were falsely declared to conceal goods on the CITES list (pangolin scales, ivory) and conceal second-hand goods (on the list of goods banned from import or goods in transit with a permit issued by the Ministry of Industry and Trade).

In addition, HCM City Customs Department handled a case of smuggling through transit goods. According to the case file, inspecting a consignment in transit from China through Cat Lai port, the online supervision unit under the General Department in coordination with the HCM City Customs Department discovered more than 1,000 fake bags and sports shoes.

Notably, in addition to the declared quantity of goods, the Customs also identified a large number of goods without a customs declaration, including 30 items: 950 cigarettes; over 1,000 barrels of foreign wine, motorcycle parts, ink, chemicals; 50 bags of food; over 1,000 pairs of shoes, bags.

For goods in transit via air, from the beginning of 2022, the Tan Son Nhat International Airport Customs Branch has detected seven cases with a total fine of nearly VND20 million.

According to the HCM City Customs Department, through the collection of information showing that enterprises carrying out transit procedures (carriers) often do not know exactly what goods are being transported. Therefore, they are often passive in declaring and providing information to the Customs when required.

In addition, information about goods in transit declared on the national aviation single-window system is not detailed and is limited in terms of characters, leading to difficulties in checking documents submitted by enterprises.

In addition, the Customs agency has still met difficulties in determining whether the vehicle is eligible for sealing according to regulations. The system does not have the function of declaring a detailed list of goods as prescribed in Article 51 of Circular No. 38/015/TT-BTC dated March 25, 2015 as amended and supplemented in Circular 39/2018/ TT-BTC dated April 20, 2018 of the Ministry of Finance. The system has not yet supported the checking of information declared by enterprises with information on the national single-window system and other information to issue warnings.

Propose many solutions

From the above inadequacies, to effectively manage goods in transit, HCM City Customs Department recommends that customs procedures, customs inspection and supervision for goods in transit are only carried out on a Customs operating system; the system supporting checking and comparing data information declared by enterprises with information available on the Customs operating system such as E-Manifest to give warnings. Cargo information on the National Aviation Single Window System must be specific, detailed, and not limited to characters of information declaration.

Furthermore, relevant ministries and agencies should soon issue regulations that require vehicle owners to install journey tracking devices for road transport vehicles and have a mechanism to share information with the customs branches where the goods depart or arrive during the transport of imported and exported goods, temporarily imported goods for re-export or goods in transit, under the supervision of the Customs agency through the National Single Window Portal.

Regarding the establishment of a new enterprise, an enterprise registering the business type of transporting goods in transit, the licensing agency is requested to strictly manage the licensing for the transportation of goods in transit; and increase sanctions for violations of goods in transit.

The licensing of goods subject to the Ministry of Industry and Trade's transit permit is managed on the National Single Window System for easy checking and updating, and this permit information must be automatically checked by the system.

Regarding transit procedures: When making a customs declaration, the owner of the goods must declare in detail the name of the goods in the current list of Vietnam's import-export goods, quantity, weight, origin and condition of goods (old/new) on the customs declaration and the detailed list of goods in transit on the E-Manifest system of the state management agency.

How will customs procedures for goods in transit change?

Moreover, it is necessary to specify the standards of the means of transport transporting goods in transit, which must satisfy all conditions for customs sealing (car body structure, joints, hinges, etc.) to prevent businesses from changing goods during transportation.