Decision No. 1810/QD-TCHQ dated June 15, 2018 of the General Department of Customs on promulgation of procedures for inspection, consultation and customs valuation applied to exported and imported goods during customs procedures

THE MINISTRY OF FINANCE
THE GENERAL DEPARTMENT OF CUSTOMS

Decision No. 1810/QD-TCHQ dated June 15, 2018 of the General Department of Customs on promulgation of procedures for inspection, consultation and customs valuation applied to exported and imported goods during customs procedures

Pursuant to the Law on Customs No. 54/2014/QH13 dated June 23, 2014;

Pursuant to Government s Decree No. 59/2018/ND-CP dated April 20, 2018 on amendments to Decree No. 08/2015/ND-CP dated January 21, 2015 on customs procedures, customs supervision and inspection;

Pursuant to Circular No. 39/2015/TT-BTC dated March 25, 2015 of the Ministry of Finance on customs value of exported goods and imported goods;

Pursuant to Circular No. 38/2015/TT-BTC dated March 25, 2015 of the Ministry of Finance and Circular No. 39/2018/TT-BTC dated April 20, 2018 on amendments to Circular No. 38/2015/TT-BTC dated March 25, 2015 of the Ministry of Finance on customs procedures; customs supervision and inspection; export and import duty and tax administration of exported goods and imported goods;

Pursuant to Decision No. 65/2015/QD-TTg dated February 17, 2015 of the Prime Minister defining the functions, tasks, entitlements and organizational structure of the General Department of Customs affiliated to the Ministry of Finance;

At the request of Director of Department of customs duties,

DECIDES:

Article 1.Issue together with this Decision procedures for inspection, consultation and customs valuation applied to exported and imported goods during customs procedures and 3 Appendices enclosed.

Article 2.Implementation:

Director of Departments of Customs of province and cities shall:

1. Assign staff; formulate regulations on consultation decentralization, procedures for inspection and internal controls, guidelines for practices, methods of coordination between levels, in accordance with guidance of the General Department of Customs herein.

2. Send monthly reports on inspection, consultation, customs valuation to the General Department of Customs using Forms No.02, 03, 04 in Appendix II issued herewith and take responsibility for accuracy of reports; report forms: written or electronic reports (to the address [email protected]); report deadline: before the 5^thday of the subsequent month.

Article 3.This Decision takes effect on July 01, 2018 and supersedes provisions in terms of customs value in Articles 55, 56, 57, 58 of Decision No. 1966/QD-TCHQ dated July 10, 2015 of the Director of the General Department of Customs on promulgation of procedures for customs procedures applied to exported goods and imported goods.

Article 4.Heads of units affiliated to the General Department of Customs shall implement this Decision.

For the General Director

The Deputy General Director

Nguyen Duong Thai

PROCEDURES

FOR GUIDANCE ON INSPECTION, CONSULTATION, CUSTOMS VALUATION DURING CUSTOMS PROCEDURES
(Issued together with Decision No. 1810/QD-TCHQ dated June 15, 2018 of the Director of the General Department of Customs)

Chapter I

GENERAL PROVISIONS

Article 1. Scope of adjustment and subject of application

This Document provides guidelines for procedures for inspection of declaration contents, declared value, consultation and customs valuation applied to exported goods and imported goods during customs procedures, applied to consignments subject to documentary inspection, physical inspection which is carried out in conjunction with practices promulgated by the General Department of Customs.

Article 2. Purposes of inspection

Inspection purposes are to evaluate compliance with law in declaration and customs valuation by customs declarants to comply with customs valuation rules and methods; and to collect proper and sufficient taxes for state budget.

Article 3. Rules for inspection, consultation, customs valuation

1. Rules for and contents of inspection, consultation, customs valuation: comply with provisions in Government s Decree No. 59/2018/ND-CP dated April 20, 2018 on amendments to certain article of Government s Decree No. 08/2015/ND-CP dated January 21, 2015 on guidelines for the Law on Customs in terms of customs procedures, inspection and supervision, customs control; Circular No. 39/2015/TT-BTC dated March 25, 2015 of the Ministry of Finance on customs value applied to exported goods and imported goods; Circular No. 39/2018/TT-BTC dated April 20, 2018 of the Ministry of Finance on amendments to certain articles of Circular No. 38/2015/TT-BTC dated March 25, 2015 of the Minister of Finance on customs procedures; customs supervision and inspection; customs duties and tax administration of exported goods and imported goods.

2. During inspection, if it finds that declaration or customs valuation does not comply with guidelines in legislative documents, Director of Departments of Customs of province/city, Manager of Sub-department of Customs shall adopt preventive measures promptly and take further actions in accordance with applicable regulations and laws.

3. The collection, update, use of data on prices intended for inspection, consultation and customs valuation shall be carried out in accordance with Regulation on formulation, management and use of data on prices promulgated by the Director of the General Department of Customs (hereinafter referred to as Regulation on Data).

4. During detailed examination of documents and goods physically (if any), if there are sufficient grounds to reject or suspect the declared value, customs value inspection result shall be dealt with in the while-customs clearance phase in accordance with Clause 14 Article 1 of Circular No. 39/2018/TT-BTC, post-customs clearance inspection shall not be carried at the head office of customs authority within 60 days from the date on which the goods are granted customs clearance.

Chapter II

SPECIFIC PROVISIONS

Article 4. Inspection of customs value

1. Inspection of declaration

1.1. Regarding exported goods or imported goods without sales contracts

a) Matters to be inspected:

Officials in charge of customs dossiers’ inspection (hereinafter referred to as inspecting officials) shall inspect customs dossiers of exported goods and imported goods, in specific:

a.1) Check if entries relating to customs value filled in by the declarant on an export or import customs declaration or customs value declaration (if any) is correct and adequate as prescribed in Sub-point a.1 Point a Clause 3 Article 25 specified in the Clause 14 Article 1 of Circular No. 39/2018/TT-BTC on amendments to Circular No. 38/2015/TT-BTC, especially the following:

a.1.1) Adequate names of goods, detailed symbol, marks and brands/makes. In specific: Declared names of goods are ordinary trade names, enclosed with fundamental features of goods (such as: composition, material, ingredients, content, capacity, size, design, uses, brand, etc.) to determine factors affecting or relating to the customs value of the goods.

Certain products with standardized names are specified in Appendix I issued herewith.

a.1.2) Unit of measurement: they must be clearly quantified in terms of the unit of measurement (m, kg); if they are not clearly quantified (such as: cartons, boxes), equivalent conversion must be made (like how many boxes, how many kilograms each box). The unit of measurement must be consistent with the unit of measurement of the goods with the same HS codes specified in the Vietnam’s nomenclature of exports and imports.

Notes: If the declarant is regarded as in a special relationship prescribed in Article 7 of Circular No. 39/2015/TT-BTC, but such special relationship is not stated in the export or import customs declaration or customs value declaration (if any), the inspecting official shall require the declarant to make an additional declaration using “Customs direction” using IDA01/EDA01 (code A) on the e-customs system or on the export or import customs declaration (in case of physical declaration) as prescribed in Article 20 stated in Circular No. 39/2018/TT-BTC on amendments to Circular No. 38/2015/TT-BTC. According to the additional declaration made by the declarant, the inspecting official shall conduct inspection as prescribed in Clause 1 of this Article.

a.2) Check if documents’ contents in the customs dossier submitted or presented to the customs authority by the declarant are matched in order to discover conflict relevant to customs value among documents and materials prescribed in Point a.2 Clause 3 Article 25 as specified in Clause 14 Article 1 of Circular No. 39/2018/TT-BTC on amendments to Circular No. 38/2015/TT-BTC;

a.3) Check the adherence to principles, conditions, procedures for application, contents of methods of customs valuation applied to exported goods and imported goods prescribed in Decree No. 59/2018/ND-CP, Circular No. 39/2018/TT-BTC and Circular No. 39/2015/TT-BTC.

a.4) If a notification of result of pre-defined customs value, the official must check the accuracy, adequacy and appropriateness between that notification and customs dossier and exported goods or imported goods in reality (in case of physical inspection).

b) Dealing with inspection result:

b.1) With regard to matters to be inspected in Point a.1, a.2, a.3 of this Clause:

b.1.1) If grounds to reject a declared value are not sufficient as prescribed in Point a Clause 3 Article 25 specified in Clause 14 Article 1 of Circular No. 39/2018/TT-BTC on amendments to Circular No. 38/2015/TT-BTC, the inspecting official shall inspect declared value in accordance with the guidance prescribed in Clause 2 hereof, except for products without instructions on risks of customs valuation on the e-customs system.

Update on the GTT02 system: at the tag “Check declaration contents” function 1.04, the inspecting official shall update the following “Insufficient grounds to reject a declared value”.

b.1.2) If there are sufficient grounds to reject a declared value as prescribed in Point a Clause 3 Article 25 as specified in Clause 14 Article 1 of Circular No. 39/2018/TT-BTC on amendments to Circular No. 38/2015/TT-BTC, the following actions shall be taken:

b.1.2.1) The inspecting official shall make a statement of customs value and submit it to the head to promulgate a notification of customs value using Form No. 02B/TB-TGHQ/TXNK issued together with Circular No. 39/2018/TT-BTC (hereinafter referred to as notification of customs value). After receiving an approval from the head, the official shall send a notification of customs value to the declarant and request an additional declaration within 5 working days from the notification date and good release as prescribed.

In case of e-declaration, apart from making and sending a written notification of customs value to the declarant, the inspecting official shall send the declarant “Customs direction” using IDA01/EDA01 (code A) on the e-customs system.

Update on the GTT02 system: at the tag “Check declaration contents” function 1.04, the inspecting official shall update the following “Sufficient grounds to reject a declared value”.

b.1.2.2) The inspecting official shall inspect the additional declaration made by the declarant and take the following actions:

b.1.2.2.1) If the declarant makes an additional declaration according to notification of customs value within the above-mentioned period, the inspecting official shall compare the additional declaration and the notification of customs value. If the additional declaration complies with the notification of customs value, the inspecting official shall grant clearance of goods as prescribed.

Update on GTT02 system: at the tag “Valuation” function 1.04, the inspecting official shall update the following “”Declarant makes an additional declaration according to the notification of customs value No. …dated …. issued by….”.

b.1.2.2.2) Upon expiration of additional declaration period, if the declarant fails to make an additional declaration or make an additional declaration not in accordance with the notification of customs value, within the working day or on the day succeeding the deadline for additional declaration, the inspecting official shall make a decision on tax imposition and submit it to the head for approval of good clearance as prescribed, and take actions against violations (if any).

Update on GTT02 system:

- At the tag “Valuation” function 1.04, the inspecting official shall update method and price determined for commodity lines, and update reasons for valuation:

 “Due to failure to make additional declaration or additional declaration not in accordance with notice of customs value No. …dated…issued by…”.

b.2) Regarding the case in Point a.4 of this Clause:

b.2.1) If the notification of result of pre-defined customs value in terms of price or methods of customs valuation are in line with the customs dossier and exported goods or imported goods in reality (in case of physical inspection), the inspecting official shall accept the pre-defined method and price to grant the customs clearance as prescribed.

Update on GTT02 system: at the function update of notification of result of pre-defined customs value, the inspecting official shall update the following “In accordance with customs dossier and goods in reality”.

b.2.2) If the notification of result of pre-defined customs value in terms of price or methods of customs valuation are not in line with the customs dossier and exported goods or imported goods in reality (in case of physical inspection), the inspecting official shall not accept the pre-defined method and price, and inspect the declared value as prescribed in Clause 2 of this Article, and send a request (enclosed with documents substantiating that the notification of result of pre-defined customs value is not conformable) to Customs Department of province/city for reporting to the General Department of Customs for promulgating a document to cancel such notification of result of pre-defined customs value in terms of value or method of customs valuation.

Update on GTT02 system: at the function update of notification of result of pre-defined customs value, the inspecting official shall update the following “Not in accordance with customs dossier and goods in reality”.

1.2. Regarding exported goods and imported goods without sales contracts or commercial invoices prescribed in Clause 5 Article 17 of Circular No. 39/2015/TT-BTC

Inspect declared value as prescribed in Point 2.2 Clause 2 of this Article.

2. Inspection of declared value

2.1. Regarding exported goods or imported goods with sales contracts

a) Matters to be inspected:

The inspecting official shall compare the declared value at the item “”taxable unit” in the export or import customs declaration or customs value declaration (if any) and the value as provided in Point b.4, b.5 Clause 3 Article 25 specified in the Clause 14 Article 1 of Circular No. 39/2018/TT-BTC on amendments to Circular No. 38/2015/TT-BTC.

b) Dealing with inspection result:

b.1) With regard to exported goods or imported goods in doubt over declared value or with high risks on customs valuation as compared with the reference value of identical or similar exported goods or imported goods as guided by the General Department of Customs, and the declarant is considered as an enterprise failing to comply with the risk management system: the inspecting official shall request the head to notify the declarant of provision of additional documentation, and assign duly authorized representative to explain and substantiate declared value.

The inspecting official shall send a notice to the declarant using “Customs direction” form IDA01/EDA01 (code A) on the e-customs system or in the export or import customs declaration (in case of physical declaration), specifying “Declarant provides additional documentation as prescribed in Point b.2 Clause 4 Article 25 prescribed in Clause 14 Article 1 of Circular No. 39/2018/TT-BTC on amendments to Circular No. 38/2015/TT-BTC and assign a legal representative of the declarant or an authorized person to explain and substantiate the declared value during customs procedures as specified in Article 23 of the Law on Customs”.

Update on GTT02 system: at the tag “Inspection of value” function 1.04, the inspecting official shall update the following “In doubt over high risks on customs valuation, non-compliance – To be inspected by Sub-department” and take the following actions:

b.1.1) In the event that the declarant (1) fails to provide additional documentation (2) fails to assign a duly authorized representative as per the law, (3) assign a representative without any power of attorney to explain and substantiate the declared value or (4) fails to explain or substantiate bases for a rejection of the declared value, according to documentation provided by the declarant as prescribed in Points dd.2.1, dd.2.2, dd.2.3, dd.2.5 Clause 4 Article 25 specified in the Clause 14 Article 1 of Circular No. 39/2018/TT-BTC on amendments to Circular No. 38/2015/TT-BTC, the inspecting official shall make a statement ofcustoms value and submit it to the head in order for he/she to issue a notification of customs value, a decision on tax imposition, or a decision on penalties for administrative violations (if any) for clearance of goods as prescribed.

Update on GTT02 system: At the tag “Valuation” function 1.04, the inspecting official shall update method and price determined for commodity lines, and update reasons for valuation “Declarant’s failure to provide additional documentation/assign a duly authorized representative/ explain and substantiate declared value/etc.”.

b.1.2) Apart from the case prescribed in sub-point b.1.1, the inspecting official shall make a statement of customs value and submit to the head in order for he/she to issue a notification of customs value for clearance of goods according to the declared value.

Update on GTT02 system: At the tag “Valuation” function 1.04, the inspecting official shall update the following “”Acceptance of declared value”.

b.1.3) The inspecting official shall take a record to certify the discussion between the customs authority and the declarant in the cases as provided in Points b.1.1 and b.1.2 of this Clause (unless the declarant fails to assign a representative to work with the customs authority).

b.1.4) The period of inspection and actions against inspection result shall last within the customs procedures period as prescribed in Article 23 of the Law on Customs.

b.2) If there are imported goods in doubt over unexpectedly high declared value under guidelines of the General Department of Customs, as per Point b.2 Clause 3 Article 25 specified in the Clause 14 Article 1 of Circular No. 39/2018/TT-BTC on amendments to Circular No. 38/2015/TT-BTC, the inspecting official shall grant customs clearance according to the declared value as prescribed and request the head to send suspicious information to the Customs Department within the working day or the working day succeeding the inspection date.

Within the working day or on the day succeeding the date on which the report is received from Sub-department of Customs, Customs Department shall make a consolidated report and send it to the inland tax authority that has authority over the declarant at the same level, and to the General Department of Customs.

After receiving the report from the Departments of Customs, the General Department of Customs shall forward it to the General Department of Taxation for inspection and determination of related-party transactions as prescribed by law on related-party transactions, in accordance with coordination mechanism between the General Department of Customs and General Department of Taxation.

Update on GTT02 system: at the tag “Inspection of value” function 1.04, the inspecting official shall update the following “In doubt over high declared value – acceptance of declared value” for commodity lines on suspicion.

b.3) If exported goods or imported goods are in doubt and therefore subject to consultation as prescribed in sub-point b.3 Clause 3 Article 25 specified in the Clause 14 Article 1 of Circular No. 39/2018/TT-BTC on amendments to Circular No. 38/2015/TT-BTC, the inspecting official shall request the head to:

b.3.1) Give a notice to the declarant at the item “Customs direction” on e-customs system via IDA01/EDA01 (code A) as follows:  “Grounds for doubt, pre-determined method and price; consultation time; consultation place: at Customs Department/Sub-department of Customs; provide additional documentation as prescribed in Point b.2 Clause 4 Article 25 which is amended at Clause 14 Article 1 of Circular No. 39/2018/TT-BTC) or issue a notice of suspicion using Form No. 02A/TB-NVTG/TXNK issued together with Circular No. 39/2018/TT-BTC (hereinafter referred to as notice of suspicion) (in case of physical declaration).

If number of characters in names of many commodity lines in doubt exceeds the capacity of the item "Customs direction" on the e-customs system, the customs authority shall give a notice to the declarant via IDA01/EDA01 (code A) as follows:  “In doubt over notice of suspicion No. …dated…; consultation time; consultation place: at Customs Department/Sub-department of Customs; provide documentation as prescribed in Point b.2, Clause 4 Article 25 prescribed in Clause 14 Article 1 of Circular No. 39/2018/TT-BTC”.

b.3.2) Grant conditional customs clearance as prescribed, and as soon as practicable after giving such a notice to  the declarant at the "Customs direction" on the e-customs system and/or notice of doubt; make and send the transfer note of consultation dossier using Form No. 01/PCTV/TXNK Appendix II issued together with this Document in conjunction with the customs dossier (copy); documentary evidence (if any) to Customs Department for consultation (in case of consultation at Customs Department) or consultation according to guidelines prescribed in Article 5 hereby (in case of consultation at Sub-department of Customs).

b.3.3) Update on GTT02 system: at the tag “Inspection of value” function 1.04, the inspecting official shall update the following “n doubt over declared value – transfer to Consultation department” or “In doubt over declared value – transfer to Consultation sub-department” for commodity lines on doubt.

b.3.4) If the declarant requests the customs authority to apply the result of one-off consultation as prescribed in Clause 6 Article 25 specified in the Clause 14 Article 1 Circular No. 39/2018/TT-BTC on amendments to Circular No. 38/2015/TT-BTC, guidelines prescribed in Clause 6 Article 5 hereof shall apply.

Update on GTT02 system: at the tag “Inspection of value” function 1.04, the inspecting official shall update the following “In doubt over high declared value – request the application of one-off consultation” for commodity lines on doubt, the declarant requests one-off consultation.

b.4) If the exported goods or imported goods do not fall under any case in Point b.1, b.2 or b.3 of this Clause, the inspecting official shall grant clearance of goods as prescribed.

Update on GTT02 system: at the tag “Inspection of value” function 1.04, the inspecting official shall update the following “No doubt over declared value – acceptance of declared value) for commodity lines on doubt.

2.2. Regarding exported goods and imported goods without sales contracts or commercial invoices prescribed in Clause 5 Article 17 of Circular No. 39/2015/TT-BTC

a) Subjects of inspection: Manager of Sub-department of Customs shall, according to exported goods or imported goods; trade fraud signs in the value declaration; nature of goods; and the frequency of import/export, make a decision on inspection and customs valuation within their competence as prescribed in Clause 3 Article 3 of Circular No. 39/2015/TT-BTC.

b) Matters to be inspected:

The inspecting official shall carry out inspection as prescribed in sub-point a, Point 2.1 of this Article.

c) Dealing with inspection result:

c.1) If there are justifiable grounds for determining that the declared value is not appropriate, the inspecting official shall submit a statement of customs value to the head in order for him/her to issue a notification of customs value or a decision on tax imposition for clearance of goods as prescribed.

Update on GTT02 system: at the tag “Xác định giá” (Valuation) function 1.04, the inspecting official shall update method and price determined for commodity lines.

c.2) If there is no ground for determining that the declared value is not appropriate, the inspecting official shall accept the declared value for clearance of goods as prescribed.

Update on GTT02 system: at function 1.04, inspecting official shall update the following “Chấp nhận trị giá khai báo” (Acceptance of declared value) for commodity lines that are inspected or deemed completed at function 1.04 (if only 1 declaration is selected) or at function 1.13 (if multiple declarations are selected).

3. Notes on update at function 1.04 on GTT02 system set out in Clause 1, Clause 2 of this Article: After update of information at function 1.04, the inspecting official shall update the following “Hoàn thành kết quả kiểm tra” (Completion of inspection result) at function 1.04 (if only 1 declaration is selected) or at function 1.13 (if multiple declarations are selected).

4. Retention of dossiers: Dossiers are retained as prescribed (including: declaration, statement of declared value and relevant documentary evidence, notice of doubt, notification of customs value, record, decision on tax imposition, etc.). If customs directions on e-customs system are issued, the inspection official shall capture screenshots and print them to retain them in conjunction with equivalent customs dossiers.

Article 5. Consultation

1. Classification of dossiers by authority over consultation

a) Customs officials at a Sub-department of Customs shall classify dossiers by authority over consultation as prescribed in Point c Clause 4 Article 25 specified in the Clause 14 Article 1 of Circular No. 39/2018/TT-BTC on amendments to Circular No. 38/2015/TT-BTC and take the following actions:

a.1) If a dossier falls under authority over consultation of Sub-department of Customs: The customs officials of Sub-department of Customs shall follow guidelines prescribed in Clause 2 hereof.

a.2) If a dossier falls under authority over consultation of Department of Customs: Inspecting officials shall transfer it to Departments of Customs as prescribed in sub-point b.3.2 Point b Clause 2.1 Article 4 of this Document.

b) After receiving a transfer note of a consultation dossier and customs dossier from Sub-department of Customs, customs officials of Customs Department shall keep following guidelines prescribed in Clause 2 hereof.

2. Acquiring information and data:

Officials in charge of consultation (hereinafter referred to as consultation officials) shall:

a) Collect, consolidates, analyze, and inspect authenticity and convert information used for consultation: Comply with guidelines in Data Regulation.

b) The consultation officials shall print information collected, specify searching time, bear signature and make a proposal for using information, and then send a report to the head and comply with Clause 3 of this Article.

3. Examining consultation dossiers, prepare for consultation

a) A consultation dossier shall be examined for purposes of clarifying suitability between documents in the customs dossier; between information and data acquired and the physical inspection result (if any) and the declaration made by the declarant;

b) Questions must focus on clarifying doubts, avoid asking cursory and general questions concerning doubtful issues. As the case may be, the following matters should be clarified:

b.1) Goods that the declarant trades in, lines of the business;

b.2) Partnership;

b.3) Method of negotiation and conclusion of sales contracts;

b.4) Issues in connection with doubt about value;

b.5) Payment issues;

b.6) Details about goods;

b.7) Issues about sale after import (in case of consultation of imported goods);

b.8) Conditions for application of transaction value of imported goods:

b.9) Contradictions between documents in the consultation dossier (if any);

b.10) Contradictions between declarations and documents in the customs dossier;

b.11) Declarant’s explanation for doubts raised by the customs authority.

4. Holding a consultation

a) The consultation official shall require a duly authorized representative of declarant to present his/her ID card/citizen identification card/passport and submit a letter of authorization (in case of authorization) before hold a consultation, concurrently, clearly explain rights and obligations of the declarant, responsibilities and power of customs authority as prescribed to gain the cooperation between the declarant and customs authority so as to clarify doubts over declared value. If a participant is deemed not duly authorized and obtains no letter of authorization, the consultation shall be canceled;

b) Ask questions and listen to consultation responses from participants, focus on questions that clarify the doubts, and then compare them to find out contradiction in the information provided by the declarant (comparing answers, export/import dossier and available information of the customs authority for verification).

Notes: During the consultation, it is not necessary to ask all the questions or just ask prepared questions, the officials shall take appropriate actions according to every specific consignment and specific development in the consultation.

c) During the consultation, the consultation officials shall clarify and note the following:

c.1) Accuracy of information relating to customs valuation by the declarant;

c.2) Conformity of information relating to customs value between documentary evidence;

c.3) Conformity in application of rules, conditions, procedures, methods of customs valuation prescribed in Circular No. 39/2015/TT-BTC; Circular No. 39/2018/TT-BTC;

c.4) Rationality in declarant’s explanation for doubts raised by the customs authority;

c.5) The questions and responses must be recorded adequately, truthfully and made in a consultation meeting minutes.

c.6) Focus on clarifying doubts about value, factors impacting declared value based the available database and acquired information after verifying the reliability and conversion as prescribed in Clause 2 of this Article in order to reject a declared value based on comparison of 4 conditions for determining the transaction value prescribed in Clause 3 Article 6 of Circular No. 39/2015/TT-BTC and Circular No. 39/2018/TT-BTC in terms of dossiers, value and information provided by the declarant at the consultation time;

c.7) The following situation should be avoided:qui

d) Contents of consultation meeting minutes:

d.1) If the declarant agrees with the method and price determined by the customs authority, consultation official shall state “người khai hải quan đồng ý với mức giá và phương pháp do cơ quan hải quan xác định và khai bổ sung” (declarant agrees the price and method determined by the customs authority and make an additional declaration).

Notes: In such situation, the consultation meeting minutes has not questions and answers section.

d.2) If the customs authority rejects a declared value or has insufficient grounds to reject a declared value.

In the consultation meeting minutes, the consultation officials shall record sufficiently and truthfully questions and answers arising from the consultation; record additional documentary evidence provided by the declarant; determined method and price, and take the following actions:

d.2.1) If the customs authority has insufficient grounds to reject the declared value, the consultation official shall state " Insufficient grounds to reject a declared value”;

d.2.2) If the customs authority rejects the declared value, the consultation official shall state “Rejection of a declared value”, sources of information acquired for use in the consultation; bases for a rejection of the declared value, determined method and price used by the customs authority to determine the value.

Consultation meeting minutes must bear signatures of representatives of participants. If the declarant disagrees with the method and price determined by the customs authority, the consultation official shall clarify reasons and request the declarant to raise their opinion about the customs authority’s conclusion; the consultation official shall instruct the declarant to state their opinions in the consultation meeting minutes. The consultation dossier shall be retained at the consultation place.

5. Actions against consultation result

a) In case of a consultation held at a Departments of Customs:

a.1) If the declarant agrees with the method and price pre-determined by the customs authority as prescribed in Point dd.1 Clause 4 Article 25 specified in the Clause 14 Article 1 of Circular No. 39/2018/TT-BTC on amendments to Circular No. 38/2015/TT-BTC.

a.1.1) Verify the dossier, declaration contents, method and price pre-determined in the notice of doubts in order to give the determined method and price and request the declarant to make an additional declaration.

a.1.1.1) If the declarant agrees with the method and price determined by the customs authority, he/she shall sign the consultation meeting minutes. The consultation official shall make a statement of customs value and a notification of customs value and submit them to the head for approval; send a consultation meeting minutes (copy), notification of customs value to Sub-department of Customs where the declaration is registered within the working day or working day succeeding the date on which the notification of customs value is issued to monitor the additional declaration made by the declarant.

Update on GTT02 system: at function 1.05, the consultation official shall update the following “declarant agrees with the method and price determined by the customs authority”.

a.1.1.2) If the declarant disagrees with method and price determined by the customs authority, provisions in terms of consultation and actions against consultation result in Point a.2 and a.3 below shall apply.

a.1.2) After receiving a consultation meeting minutes (copy) and a notification of customs value sent by Departments of Customs, the officials of Sub-department of Customs shall monitor the additional declaration:

a.1.2.1) If the declarant makes an additional declaration according to the notification of customs value within 5 days from the date on which the customs authority holds the consultation, the officials of Sub-department of Customs shall compare the additional declaration and the notification of customs value. If the additional declaration complies with the notification of customs value, the inspecting official shall grant clearance of goods as prescribed.

Update on GTT02 system: at the function 1.05, the inspecting official shall update the determination result according to the method and price determined as specified in the notification of customs value for every commodity line and update the following “Declarant makes an additional declaration according to the notification of customs value No. …dated …. issued by….”.

a.1.2.2) Upon expiration of additional declaration period, if the declarant fails to make an additional declaration or make an additional declaration not in accordance with the notification of customs value, within the working day or on the day succeeding the deadline for additional declaration, the inspecting official shall make a decision on tax assignment and submit it to the head for approval of good clearance as prescribed, and take actions against violations (if any).

Update on GTT02 system: at the function 1.05, the inspecting official shall update the method and price determined as specified in the notification of customs value for every commodity line and update the reasons for valuation “Declarant fails to make an additional declaration/makes an additional declaration not in accordance with the notification of customs value No. …dated …. issued by….”.

a.2) In case of a rejection of a declared value after consultation, the consultation official shall make a consultation meeting minutes, a statement of customs value and request the head to issue a notification of customs value, request the declarant to make an additional declaration as prescribed within 5 working days from the completion of consultation, concurrently send a consultation meeting minutes (copy) and notification of customs value to Sub-department of Customs where the declaration is registered within the working day or on the working day succeeding the date of notification in order for the Sub-department of Customs to monitor the additional declaration made by the declarant.

Update on GTT02 system: at function 1.05, the consultation official shall update the following “rejection of a declared value”.

After receiving a consultation meeting minutes (copy) and a notification of customs value sent by Departments of Customs, the officials of Sub-department of Customs shall monitor the additional declaration as prescribed in Point a.1.2 Clause 5 hereof.

a.3) If there are insufficient grounds to reject a declared value as prescribed in Point dd.2 Clause 4 specified in Clause 14 Article 1 of Circular No. 39/2018/TT-BTC on amendments to Circular No. 38/2015/TT-BTC, the consultation official shall make a statement of customs value, request the head to issue a notification of customs value and send a consultation meeting minutes (copy), notification of customs value to Sub-department of Customs where the declaration is registered for clearance of goods as prescribed.

Update on GTT02 system: at function 1.05, the consultation official shall update the following “Insufficient grounds for a rejection of a declared value”.

b) In case of a consultation held at a Sub-department of Customs: Consultation officials and inspecting officials shall comply with Point a of this Clause (except for making and sending of transfer notes of consultation dossiers).

c) If the declarant agrees with the method and price pre-determined by the customs authority, the Director of Departments of Customs shall consider delegating authority over consultation to Sub-department of Customs where the declaration is registered to ensure the simplifying administrative procedures.

6. One-off consultation, using consultation result multiple times.

a) Initial consultation: Consultation officials shall hold a consultation as prescribed in Clauses 2, 3, 4, 5 of this Article.

b) Dealing with doubts over declared value in subsequent exports and imports:

Consultation officials shall inspect information and data used for customs inspection and valuation of exported goods and imported goods which request one-off consultation as compared with identical or similar goods with consultation results and take the following actions:

- If the information does not change as prescribed in Point a Clause 6 Article 25 specified in Clause 14 Article 1 of Circular No. 39/2018/TT-BTC on amendments to Circular No. 38/2015/TT-BTC:

The consultation official shall request the head to issue a notification of customs value according to the price stated in the previous notification of customs value, and give the following notice “”Acceptance of application of one-off consultation result as specified in notification of customs value No. …dated…” on the e-customs system or in writing and grant the clearance of goods as prescribed.

- With regard to remaining cases, the consultation official shall give the following notice “No approval for application of one-off consultation as specified in the notification of customs value No. … dated… issued by…, request a consultation as per the law” and then submit to the head for consultation as prescribed in Clauses 2, 3, 4, 5 of this Article.

c) In case of one-off consultation at Departments of Customs, the consultation official shall comply with above-mentioned Points a, b. Inspecting officials shall transfer it to Departments of Customs as prescribed in sub-point b.3.2 Point b Clause 2.1 Article 4 of this Document.

d) The Director of Customs Department shall consider delegating authority over consultation and using the consultation result multiple times to the Customs Department to ensure the effectiveness of consultation.

7. Retention of consultation dossiers:

A consultation dossier (including customs dossier, statement, consultation meeting minutes, notification of customs value, contract, invoice, packing list, bill of lading, wire transfer or invoices (if any), documentary evidence presented by the declarant, etc.) shall be retained as prescribed. If a customs direction is made on the e-customs system, the inspecting official shall capture screenshots and print them to retain them in conjunction with the customs dossier.

Article 6. Customs valuation

1. Information used for customs valuation

a) Sources of information used for customs valuation of imported goods:

a.1) Customs valuation according to transaction value:

- Sources of information from documentary evidence prescribed in Clause 5 Article 6 of Circular No. 39/2015/TT-BTC;

- Sources of information for conversion of distance, modes of transport, insurance.

a.2) Customs valuation according to transaction value of identical or similar goods:

- Sources of information from documentary evidence prescribed in Clause 3 Article 9 of Circular No. 39/2015/TT-BTC;

- Sources of information in connection with conversion of level of trade and quantity;

- Sources of information for conversion of distance, modes of transport, insurance.

a.3) Customs valuation according to method of deductive value:

Sources of information from documentary evidence prescribed in Clause 7 Article 10 of Circular No. 39/2015/TT-BTC;

a.4) Customs valuation according to method of computed value:

- Sources of information from documentary evidence prescribed in Clause 4 Article 11 of Circular No. 39/2015/TT-BTC;

- Sources of information for conversion of distance, modes of transport, insurance.

a.5) Customs valuation according to fall-back method:

- Use sources of information stated in 5 above-mentioned methods, focusing on expanding time for acquiring sources of information as prescribed.

- Other sources of information: Prices on market of exporting country, selling prices on domestic market, magazines, etc. (after being converted to the same level of trade, time, etc with imported goods value of which are being determined).

b) Sources of information used for customs valuation of exported goods:

b.1) Customs valuation according to selling price at the border gate:

Sources of information from documentary evidence prescribed in Point d Clause 2 Article 25a specified in Clause 15 Article 1 of Circular No. 39/2018/TT-BTC on amendments to Circular No. 38/2015/TT-BTC:

b.2) Customs valuation according to transaction value of identical or similar goods at the customs value database.

- Sources of information from documentary evidence prescribed in Point d Clause 3 Article 25a specified in Clause 15 Article 1 of Circular No. 39/2018/TT-BTC on amendments to Circular No. 38/2015/TT-BTC;

- Sources of information in connection with conversion of level of trade and quantity;

- Sources of information for conversion of distance, modes of transport, insurance.

b.3) Customs valuation according to transaction value of identical or similar goods on the Vietnamese market.

- Sources of information from documentary evidence prescribed in Point c Clause 4 Article 25a specified in Clause 15 Article 1 of Circular No. 39/2018/TT-BTC on amendments to Circular No. 38/2015/TT-BTC;

- Sources of information for conversion of distance, modes of transport, insurance.

b.4) Customs valuation according to selling price at border gate collected by customs authority

- Use sources of information in 3 above-mentioned methods, focusing on time for acquiring information as prescribed.

- Valuation result of valuation agencies as prescribed by law (if any).

c) At the valuation time, the customs official shall consult and acquire adequate sources of information from the price database, documentary evidence in connection with every method which determine value, analyze, and evaluate reliability of sources of information on GTT02 system and sources of information collected before conversion to customs value according to Data Regulation. Sources of information only are used after their reliability is verified to determine value. Sources of information that are in doubt, reliability of which are not verified or reference price reference in list of exports and imports at risks of customs valuation. Customs valuation shall be carried out in accordance with rules and procedures prescribed in Clause 8 Article 1 of Decree No. 59/2018/ND-CP, Clause 15 Article 1 of 39/2018/TT-BTC, Circular No. 39/2015/TT-BTC.

d) Information acquired must be printed with detailed sources of information, people who acquire information, time when information is acquired and included in the dossier of imported goods.

2. Analysis, consolidation, conversion, conversion method and verification of collected information: comply with guidelines in Data Regulation.

3. Issuance of notification of customs value

3.1. Make a statement of customs value

A customs official shall make a statement of customs value containing:

a) In case of rejection of a declared value:

a.1) Bases for rejection of the declared value (such as: declarant fails to provide additional documentation, assign a duly authorized representative, or explain or substantiate...as prescribed in sub-point ...Point...Clause ... of Article 25 specified in Clause 14, Article 1 of Circular of 39/2018/TT-BTC).

a.2) Specify sources of information collected as prescribed in Clause 1 hereof;

a.3) Raise arguments, analysis, calculation method when using sources of information for customs valuation;

a.4) Customs valuation method, stating: reasons why the previously-used method will not be used; grounds for using such method;

a.5) Customs value determined by customs authority (clarifying calculation method to determine the value).

b) If there are insufficient grounds for rejection of a declared value:

b.1) Indicating grounds and reasons for insufficient grounds to reject a declared value.

b.2) Specify sources of information collected as prescribed in Clause 1 hereof.

b.3) Raise arguments, analysis, calculation method when using sources of information for stating reasons for insufficient grounds to reject a declared value;

3.2. Request the head to issue a notification of customs value, and send it by registered mail or in person to the declarant within the day of notification or the subsequent working day. In the event that a declarant requests an one-off consultation, the following shall be added to the notification of customs value “declarant requests one-off consultation”, use the consultation result multiple times, and ensure that description and unit stated in the notification of customs value must be sufficient, clear and quantifiable.

4. Update of customs valuation result and retention of valuation dossier

a) According to the statement of customs value and notification of customs value, customs officials shall update method and price on the value database and notify the declarant of customs value determined by “Customs direction” via IDA01/EDA01 (code A), and update on GTT02 system according to guidelines if the customs authority determines value as prescribed in Article 4, Article 5 of this Document.

b) A valuation dossier (including customs dossier, statement, notification of customs value, contract, invoice, packing list, bill of lading, wire transfer or invoices (if any), documentary evidence presented by the declarant, etc.) shall be retained as prescribed.

APPENDIX I

CERTAIN PRODUCTS WITH STANDARDIZED NAMES
(Issued together with Decision No. 1810/QD-TCHQ dated June 15, 2018 of the Director of the General Department of Customs)

1. Motor vehicles:

- Motor vehicles with fewer than 9 seats: description; make, type (SEDAN, HATCH BACK, SUV, MPV, Pickup, etc.); cylinder capacity; number of seats; number of doors; number of driving axles; type of transmission (manual transmission or automatic transmission); use petrol or oil; new or used; model; other model symbols if any (such as Limited, Premium, XLE, LE, etc.); year of manufacture; distance traveled (if used).- Motor vehicles for transport of ten or more persons: description; make; number of seats; manual or automatic transmission; running gas or oil; new or used; distance traveled (if used); model; other model symbols if nay; year of manufacture.

- Trucks/specialized vehicles: description; make; other model symbols (if any); type (station wagons, chassis, dumper trucks, fuel trucks, vans, etc.), vehicle structure; single or double cabin(s); wheel formula and engine power; use petrol or oil; maximum load weight; freight load; capacity; new or used; year of manufacture; distance traveled (if used); other parameters such as tank capacity, etc.  

2. Motorbikes:

Name, make, design (for male or female); motorcycle or scooter; cylinder capacity; other model symbols (if any).

3. Electric bicycles:

Name, make, model, power, number of accumulators, other model symbols (if any).

4. Air conditioners:

Name; make; type (wall mounted, ceiling mounted, floor standing, cassettes, etc.); number of units (heating and cooling units); one-way or two-way (hot, cold); capacity needed (BTU); model.

5. Washing machines:

Name; brand; machine type (top loading or front loading washing machine); capacity range (kg); number of drawers; Stainless steel or plastic laundry; rotation speed (rev/min); with or without hot wash; with or without drying function; electronic control or mechanical control; model.

6. Refrigerators:

Name; brand; type (side-by-side or not); capacity; number of doors; with or without automatic ice maker; with or without cold faucet; model.

7. Engine, diesel engine:

Name; brand; usage; capacity; running gas or oil; model.

8. Gas stoves:

Name; brand; model; number of stoves; with or without roaster; with or without non-stick, anti-burn, automatic shut off or not; type (negative cooker or positive cooker); Pin type or Magneto ignition(button or knob); made of glass, stainless steel, or painted iron.

9. Iron and steel:

Name; category (non-alloy, stainless, other alloy); uses; steel bars, rods, plates, round or steel wire, shaped steel; specification.

10. Architectural glass:

Name; type (white, color, reflective or not); uses; specification.

11. Fabrics:

Name; material composition; specifications; textile technology (woven, knitted or non-woven); uses; textile fiber densities or quantitative analysis;

12. Liquor, beer:

- Liquor: name; type (white or red wine, Vodka, Whiskey, etc.), age (if any); type of packaging; capacity; alcohol content.

- Beer: name; type of packaging; capacity; alcohol content.

13. Mobile phones:

Name, brand; type (non-flip or flip phone); model.

14. Generating stations

Brand; capacity; number of phases; direct current (DC) or alternative current (AC); voltage; with or without automatic-switching power supply; running gas or oil; model.

Apart from the above criteria, depending on each item of imported goods, if there are criteria other than those above that affect the customs value, they shall be added./.

Notes: Above-mentioned products shall be added and modified further by the General Department of Customs during the implementation.