Decree No. 46/2020/ND-CP customs procedures in transit via the ASEAN Customs Transit System

DECREE

Prescribing customs procedures, inspection and supervision for goods in transit via the ASEAN Customs Transit System for implementation of Protocol 7 on the Customs Transit System^[1]

Pursuant to the June 19, 2015 Law on Organization of the Government;

Pursuant to the June 23, 2014 Customs Law;

Pursuant to the April 6, 2016 Law on Import Duty and Export Duty;

Pursuant to the November 29, 2006 Law on Tax Administration, and the November 20, 2012 Law Amending and Supplementing a Number of Articles of the Law on Tax Administration;

Pursuant to the November 26, 2014 and April 6, 2016 Laws Amending and Supplementing a Number of Articles of the Tax Laws;

Pursuant to the June 12, 2017 Law on Foreign Trade Management;

To implement Protocol 7 on the Customs Transit System;

At the proposal of the Minister of Finance;

The Government promulgates the Decree prescribing customs procedures, inspection and supervision for goods in transit via the ASEAN Customs Transit System for implementation of Protocol 7 on the Customs Transit System.

Chapter I

GENERAL PROVISIONS

Article 1.Scope of regulation

This Decree prescribes customs procedures, inspection and supervision for goods in transit via the ASEAN Customs Transit System (abbreviated to ACTS); priority regime for enterprises that carry out operation of transiting goods via the ACTS; guarantee, deposit, and collection of customs debts for goods in transit via the ACTS.

Article 2.Subjects of application

1. Organizations and individuals that carry out procedures for transiting goods via the ACTS.

2. Organizations and individuals with related rights and obligations.

3. Customs offices and customs officers.

4. Other state agencies in coordination in the state management of transit of goods via the ACTS.

5. Guarantors.

Article 3.Interpretation of terms

In this Decree, terms below are construed as follows:

1. ACTS means an integrated information technology system established by the ASEAN member states to connect and exchange information with one another for completing e-transit procedures, controlling movement of goods in transit through the ASEAN member states, assisting customs offices of the ASEAN member states in calculating customs duties and guarantee amounts and exchanging information on collection of customs debts in accordance with Protocol 7 on the Customs Transit System (below referred to as Protocol 7).

2. Customs transit declaration means an e-customs declaration form comprising information items which customs declarants must fill in when carrying out procedures for transit of goods via the ACTS.

A customs transit declaration may be used for declaring goods in transit carried on board only one means of transport in a single transit journey via the ACTS.

3. Transit accompanying document (TAD) means a customs transit declaration approved by the customs office of departure and printed out from the ACTS.

4. Transit journey means a journey of movement of goods in transit from a customs office of departure to a custom office of destination via the ACTS.

5. Transit guarantee means a security provided by a guarantor for payment of custom duties liable to be incurred during one transit journey.

6. Single-journey guarantee means a commitment by a guarantor to fulfilling the obligation to fully pay customs duties liable to be incurred during one transit journey.

7. Multiple-journey guarantee means a commitment by a guarantor to fulfilling the obligation to fully pay customs duties liable to be incurred during more than one transit journey.

8. Guarantor means a legal person or natural person that makes a commitment with a customs office of departure, customs office of transit or customs office of destination to paying any customs duties liable to be incurred at the request of customs offices joining the goods transit journey.

9. Vietnam-based guarantor (in case goods in transit depart from Vietnam via other ASEAN countries) means a credit institution or foreign bank branch operating in accordance with the Law on Credit Institutions and making a commitment with a Vietnamese customs office, customs office of transit or customs office of destination to fulfilling the obligation to pay customs duties liable to be incurred during the goods transit journey.

10. Office of guarantee means an office designated by the ASEAN member states joining Protocol 7 to approve guarantors and supervise the guarantee during the goods transit. In Vietnam, an office of guarantee is a customs office.

11. Customs duties means import duty, other duties and charges and fees payable for goods in transit incurred during the transit.

12. Customs debt means a customs duty amount not yet paid by a customs declarant into the state budget upon the expiration of the law-prescribed payment time limit.

13. Support for collection of customs debts means support provided by customs offices of the ASEAN member states joining Protocol 7 for collection of customs debts incurred during the goods transit at the request of the ASEAN member states.

14. Customs debt collectors, customs debt collection supporters or customs debt collection support requesters in Vietnam are customs offices.

15. Irregularities occurring during a transit journey include loss or destruction of goods; change of the initial transit journey; breaking of customs seals during the transit or transshipment of goods for objective reasons beyond the control ability of carriers; dangerous circumstances that are likely to occur and require immediate unloading of some or all of goods from means of transport; and other circumstances that might affect completion of goods transit activities via the ACTS.

16. Unlawful movement of goods from customs procedures for transit via the ACTS means movement of goods in transit from procedures for transit via the ACTS without approval of competent authorities or without producing documents proving that the goods are placed under another customs procedure regime.

Article 4.Customs declarants

Customs declarants for goods in transit under this Decree (below referred to as customs declarants) include:

1. Owners of goods in transit.

2. Goods transit service providers.

3. Customs clearance agents.

4. Owners or operators of means of transport carrying goods in transit or persons authorized by owners of means of transport carrying goods in transit.

Article 5.Rights and obligations of customs declarants

1. Rights of customs declarants:

a/ To be provided with guidance by customs offices on how to carry out customs procedures for goods in transit via the ACTS under this Decree;

b/ To choose to carry out customs procedures for transit via the ACTS under this Decree or customs procedures for transit under current regulations of Vietnam;

c/ To use software connected with e-data processing systems of customs offices to carry out procedures for transit via the ACTS;

d/ To exercise other rights provided by the Customs Law.

2. Obligations of customs declarants:

a/ To fully, accurately and truthfully fill in information items in customs transit declarations via the ACTS;

b/ To comply with the provisions of this Decree and other relevant regulations on transit of goods;

c/ To transport goods in designated routes, through designated border gates and within time limits registered with customs offices of departure;

d/ To refrain from breaking customs seals without permission of customs offices;

dd/ To fulfill the obligation to pay import duty, other duties and payable changes and fees incurred for goods in transit;

e/ To search and study information on policies on management of goods in transit of countries expected to carry out transit activities and request competent authorities to grant transit permits (if any) before filling in information items in customs transit declarations via the ACTS. Information on goods transit permits must be declared via the ACTS upon registration of customs transit declarations and produced to customs offices where goods transit procedures are carried out;

g/ To notify customs offices or one of the following authorities: local administrations, public security offices or border guard stations of localities where irregularities occur during goods transit journeys after applying necessary measures to limit or prevent damage prescribed in this Decree;

h/ To archive customs dossiers, account books and documents and other documents related to goods in transit for 5 years from the date of registration of customs transit declarations via the ACTS;

i/ To perform other obligations prescribed by the Customs Law.

Article 6.Provisions on goods in transit via the ACTS

1. Goods in transit via the ACTS that depart from Vietnam and are transited through other ASEAN member states must comply with policies on management of goods in transit of countries of transit.

2. Goods in transit via the ACTS through other ASEAN member states for being imported into Vietnam must comply with policies on management of goods in transit of such countries and Vietnam’s relevant regulations on management on imported goods.

3. Goods in transit via the ACTS through Vietnam must comply with relevant regulations on management of goods in transit.

4. Heads of customs branches shall base themselves on channeling results of the ACTS and information related to goods in transit (if any) to decide to examine customs dossiers and/or physically inspect goods. Physical inspection of goods shall be carried out with machines and technical devices. In case such customs branches are not equipped with machines and technical devices or the inspection with machines and technical devices cannot provide sufficient grounds for physically identifying goods or goods show signs of violation, customs officers shall personally carry out the inspection.

5. The collection of charges and fees in Vietnam for goods in transit via the ACTS must comply with the law on charges and fees.

6. For goods in transit via the ACTS through Vietnam’s territory but later taken out for sale in the inland of Vietnam, procedures for domestic sale shall be carried out in accordance with the current customs law.

7. The time limit for completion of customs procedures for goods in transit via the ACTS must comply with Article 23 of the Customs Law.

Article 7.Places where customs procedures are carried out

1. Customs procedures for goods in transit via the ACTS shall be carried out at:

a/ Customs branches of first border gates of importation or customs branches outside border gates, for goods in transit through the ASEAN member states for being imported into Vietnam.

In case goods in transit through the ASEAN member states for being imported into Vietnam are on the list of imports having to undergo procedures at border gates of importation under the Prime Minister’s regulations, customs procedures for goods in transit via the ACTS shall be completed at customs branches of first border gates of importation;

b/ Customs branches outside border gates or customs branches of border gates of exportation, for goods departing from Vietnam in transit through other ASEAN member states;

c/ Customs branches of first border gates of importation, for goods in transit from non-ASEAN countries through Vietnam’s territory to other ASEAN member states;

d/ Customs branches of first border gates of importation and customs branches of last border gates of exportation, for goods in transit from ASEAN member states through Vietnam’s territory to other ASEAN member states;

dd/ Customs branches of first border gates of importation, for goods in transit from ASEAN member states through Vietnam’s territory for being transported to non-ASEAN countries. Procedures for goods transit via the ACTS shall be completed at border gates of importation. Customs procedures for transportation of goods in transit to non-ASEAN countries shall be carried out like customs procedures for goods in transit in accordance with Vietnam’s current law.

2. Goods in transit via the ACTS may only be transported from Vietnam to ASEAN member states or from ASEAN member states into Vietnam through international border gates of Cau Treo (Ha Tinh province), Lao Bao (Quang Tri province) and Moc Bai (Tay Ninh province).

Chapter II

CUSTOMS PROCEDURES FOR GOODS IN TRANSIT VIA THE ACTS

Article 8.Customs procedures for goods departing from Vietnam in transit through other ASEAN member states

1. Customs dossier:

a/ A customs transit declaration, with information items issued by the Ministry of Finance;

b/ A goods transit permit or an equivalent document in case it is required by law(s) of the concerned ASEAN member state(s) in the transit journey: 1 copy;

c/ A letter of guarantee or document on duty deposit: 1 original.

For multiple-journey guarantee, the customs declarant shall submit the original letter of guarantee upon registering for the first time the customs transit declaration using such guarantee;

d/ An export declaration for which export procedures have been completed: 1 copy.

2. Responsibilities of customs declarants:

In addition to the obligations prescribed in Clause 2, Article 5 of this Decree, customs declarants shall discharge the following responsibilities:

a/ To fully fill in information items in customs transit declarations and attach documents in customs dossiers specified at Points b, c and d, Clause 1 of this Article upon registering customs transit declarations via the ACTS. In case the ACTS has no function of attaching documents in customs dossiers, customs declarants may submit paper documents to customs offices;

b/ To produce goods for customs offices to seal them up or make minutes stating that it is impossible to seal up goods;

c/ To produce dossiers and goods for examination and physical inspection upon request of customs offices;

d/ To additionally fill in customs transit declarations under Article 10 of this Decree;

dd/ In case irregularities occur during transit journeys as specified in Clause 15, Article 3 of this Decree, customs declarants shall apply necessary measures to limit or prevent possible damage and notify such irregularities to customs offices via hotlines indicated on the customs office’s portal.

In case it is impossible to promptly notify irregularities to customs offices, customs declarants shall promptly notify such to local administrations or public security offices or border guard stations in localities where such irregularities occur for certification thereof according to actual situation, give signatures and append seals on TADs and notify them to customs offices for handling under regulations.

3. Responsibilities of customs branches outside border gates (customs branches of departure) in case customs procedures for goods in transit via the ACTS are carried out at customs branches outside border gates:

a/ For goods shipments not subject to examination of customs dossiers and physical inspection of goods, customs branches of departure shall comply with Points d, dd, e and g of this Clause;

b/ For goods shipments subject to examination of customs dossiers, customs branches of departure shall check and compare information of customs transit declarations accepted and granted ACTS reference numbers (ARNs) by the ACTS with documents in customs dossiers.

In case examination results show that dossiers are complete and valid, customs offices shall comply with Points d, dd, e and g of this Clause.

In case examination results show that dossiers are incomplete and invalid, customs branches of departure shall guide customs declarants to additionally fill in omitted information items via the ACTS under Article 10 of this Decree.

In case examination results reveal signs of suspicion, customs offices shall request customs declarants to produce their goods for physical inspection under Point c of this Clause;

c/ For goods shipments subject to physical inspection, customs branches of departure shall check and compare information of customs transit declarations accepted and granted ARN by the ACTS and documents in customs dossiers with actual state of goods and, if physical inspection results show that information about the goods is consistent with the declared information and customs dossiers, carry out customs procedures under Points d, dd, e and g of this Clause.

In case physical inspection results show that information about the goods is inconsistent with the declared information and customs dossiers, heads of customs branches of departure shall consider and decide whether to continue or stop carrying out procedures for transit via the ACTS.

For priority-eligible transit enterprises, physical inspection of goods may be carried out at places where their goods are stored in case of signs of violation. Places where goods of enterprises are stored are those registered by enterprises in their written requests for recognition of priority enterprises mentioned at Point a, Clause 1, Article 34 of this Decree;

d/ To seal up containers and update customs seal numbers or record information in minutes of certification, in case it is impossible to seal up goods via the ACTS.

For priority-eligible transit enterprises, customs declarants shall update special seal numbers via the ACTS before goods transit is approved;

dd/ To approve goods eligible for transit via the ACTS;

e/ To hand over to every customs declarant 1 TAD printed out from the ACTS;

g/ To monitor, and coordinate with related agencies (offices of guarantee, customs offices of border gates of exportation, customs offices of countries of transit and customs offices of destination) for handling irregularities occurring during goods transit journeys under regulations.

4. Responsibilities of customs branches of border gates of exportation (customs branches of transit) in case goods transit procedures are carried out at customs branches outside border gates:

a/ To check and compare information in TADs produced by customs declarants with information in customs transit declarations on the ACTS;

b/ To check the intactness of goods; to check customs seals or special seals, for goods in transit of priority enterprises.

In case checking results show no sign of violation, customs branches of transit shall permit goods to continue their transit journeys via the ACTS.

In case checking results show signs of violation regarding seals or intactness of goods, customs branches of transit shall make minutes to certificate the state of goods, carry out physical inspection of goods and record physical inspection results via the ACTS.

Heads of customs branches of transit shall base themselves on the severity of violations to consider and decide whether to permit goods to continue their transit journeys or to stop carrying out procedures for transit via the ACTS.

If permitting goods to continue their transit journeys, customs branches of transit shall seal up goods or make minutes of certification for goods impossible to be sealed up; update new seal numbers or record information in minutes of certification via the ACTS and concurrently in TADs.

If deciding to stop customs procedures, customs branches of transit shall notify such to customs branches of departure for the latter to cancel declarations under Article 11 of this Decree and guide customs declarants to continue carrying out export procedures under regulations;

c/ To certify that goods have been moved across borders via the ACTS;

5. Responsibilities of customs branches of border gates (customs branches of departure) in case goods transit procedures are carried out at customs branches of border gates are those prescribed in Clause 3 of this Article.

Article 9.Customs procedures for goods in transit via the ACTS from non-ASEAN countries to ASEAN member states through Vietnam’s territory

1. Customs dossier:

a/ A customs transit declaration, with information items issued by the Ministry of Finance;

b/ A goods transit permit in case it is required by Vietnam’s law: 1 original;

c/ A notice of satisfactory quarantine results made by a quarantine authority in accordance with the quarantine law or a quarantine document issued by a foreign quarantine authority and recognized by the quarantine law, for goods in transit subject to quarantine: 1 original;

d/ A goods transit permit or an equivalent document in case it is required by law(s) of the concerned ASEAN member state(s) during the transit journey: 1 copy;

dd/ A letter of guarantee or document on tax deposit: 1 original.

For multiple-journey guarantee, the customs declarant shall submit the original upon registering for the first time the customs transit declaration using such guarantee.

2. Responsibilities of customs declarants are those prescribed in Clause 2, Article 8 of this Decree.

3. Responsibilities of customs branches of border gates of importation (customs branches of departure) are those prescribed in Clause 3, Article 8 of this Decree.

4. Responsibilities of customs branches of border gates of exportation (customs branches of transit) are those prescribed in Clause 4, Article 8 of this Decree.

Article 10.Additional filling in customs transit declarations

1. Cases requiring additional filling in customs transit declarations via the ACTS:

a/ Customs declarants detect by themselves errors before customs branches of departure notify results of examination of customs dossiers or physical inspection of goods or before the approval of goods eligible for transit via the ACTS;

b/ Customs branches of departure check declarations, detect errors and request additional filling in declarations before the approval of goods eligible for transit via the ACTS.

2. Responsibilities of customs declarants:

To additionally fill in customs transit declarations and submit documents related to the additional filling via the ACTS. In case the ACTS has no function of attaching documents related to the additional filling in declarations, customs declarants shall submit paper documents to customs offices.

3. Responsibilities of customs branches of departure:

To receive information to be additionally filled in; to check additionally filled-in dossiers and notify checking results to customs declarants via the ACTS within 2 working hours after fully receiving information or dossiers (if any).

Article 11.Cancellation of customs transit declarations

1. Cases where a customs transit declaration via the ACTS is cancelled:

a/ Past 15 days after the customs transit declaration is granted an ARN but the customs declarant fails to produce goods for the customs office to seal up the goods or make a minutes of certification (for goods impossible to be sealed up), or fails to transport goods to the border gate of exportation;

b/ Past 15 days after information in the customs transit declaration is accepted and granted an ARN by the ACTS but goods in transit via the ACTS are not yet approved by the customs office due to an incident occurring in the ACTS;

c/ The customs branch of the border gate of exportation stops carrying out procedures for transit via the ACTS under Point b, Clause 4, Article 8 of this Decree;

d/ The customs declarant fills in more than one customs transit declaration for the same shipment or wrongfully fills information in the customs transit declaration and then requests cancellation of such declaration.

2. Responsibilities of customs declarants: To send requests for cancellation of customs transit declarations via the ACTS to customs offices of departure.

3. Responsibilities of customs branches of departure:

a/ Within 8 working hours after receiving a cancellation request of a customs declarant, a custom branch of departure shall check reason(s) and conditions for, and information of, the request via the ACTS, cancel the customs transit declaration and notify cancellation results to the customs declarant via the ACTS;

b/ Upon the expiration of the 15-day time limit prescribed at Point a or b, Clause 1 of this Article, if a customs declarant does not request cancellation of a customs transit declaration, the customs branch of departure shall cancel such declaration and notify cancellation results to the customs declarant via the ACTS.

c/ In case a customs declarant requests cancellation of a customs transit declaration but the customs branch of departure has information on a violation related to the shipment, the cancellation of such declaration may only be permitted after the customs branch finds that the shipment does not involve a violation or such violation (if any) has been completely handled.

Article 12.Customs procedures for goods in transit through ASEAN member states for being imported into Vietnam or goods in transit from ASEAN member states through Vietnam’s territory to non-ASEAN countries

1. Customs dossier:

TADs (in case the ACTS encounters an incident, TADs must bear certification by customs offices of ASEAN countries involved in the goods transit journey).

2. Responsibilities of customs declarants:

a/ To produce goods together with TADs mentioned in Clause 1 of this Article to customs branches of border gates of importation and customs branches of destination for checking upon request of customs offices.

To send notices of goods arrival to customs offices of destination via the ACTS before the goods are unloaded. A priority-eligible transit enterprise shall send a notice of goods arrival upon arrival of goods at its office or the registered place;

b/ In case an irregularity occurs during a transit journey as specified in Clause 15, Article 3 of this Decree, a customs declarant shall apply necessary measures to limit or prevent damage and notify such to the customs office via the hotline indicated on the portal of the General Department of Customs.

In case it is impossible to promptly notify the application of measures to limit or prevent damage to the customs office, the customs declarant shall promptly notify it to the local administration or public security office or border guard station of the locality where the irregularity occurs for certification according to the actual situation, give signatures and append seals on TADs, and notify them to the customs office for handling under regulations;

c/ To keep TADs bearing certification by customs offices of destination;

d/ To carry out procedures for import or transit of goods under current regulations of Vietnam.

3. Responsibilities of customs branches of border gates of importation (customs branches of destination) in case procedures for transit via the ACTS are completed at border gates of importation:

a/ To receive TADs as mentioned in Clause 1 of this Article; to check the intactness of goods; to check customs seals or special seals, for goods in transit of priority enterprises.

In case checking results show no sign of violation, to make customs clearance for shipments.

In case checking results show signs of violation, to comply with Point b of this Clause;

b/ To carry out examination of customs dossiers and physical inspection of goods, for shipments subject to examination of customs dossiers and physical inspection of goods.

In case examination and inspection results show no sign of violation, to make customs clearance for shipments and send information stating that “examination and inspection results show no sign of violation” to customs offices of departure in foreign countries via the ACTS for completion of transit journeys.

In case examination and inspection results show a sign of violation, to send requests for information verification via the ACTS to customs offices of departure in foreign countries and make customs clearance only after the information is verified.

For a priority-eligible transit enterprise, after receiving its notice of goods arrival via the ACTS, the head of the customs branch of destination shall decide on physical inspection of goods and notify it to the customs declarant via the ACTS;

c/ To update information on date of goods arrival, and send a notice of goods inspection results via the ACTS to customs offices of departure within 2 days after goods are produced and send a notice of goods arrival to customs offices of departure in foreign countries, customs offices of countries of transit and customs offices of initial destination in case of change of customs offices of destination via the ACTS for completion of transit journeys;

d/ To certify in TADs that shipments have been cleared from customs procedures upon request of customs declarants (if any);

dd/ To carry out procedures for import or transit of goods under current regulations of Vietnam.

4. Responsibilities of customs branches of border gates of importation (customs branches of transit) in case procedures for transit via the ACTS are completed at customs branches outside border gates:

a/ To receive TADs as mentioned in Clause 1 of this Article; to check the intactness of goods; to check customs seals or special seals, for goods in transit of priority enterprises.

In case checking results show no sign of violation, customs branches of transit shall permit goods to continue their transit journeys via the ACTS.

In case checking results show a sign of violation regarding seals or intactness, to send requests for verification via the ACTS to customs offices of departure in foreign countries and carry out physical inspection of goods under Point c of this Clause;

b/ To examine customs dossiers, for shipments subject to examination of customs dossiers.

In case examination results show that goods are not eligible for performance of procedures for transit via the ACTS at customs offices outside border gates, to request customs declarants to complete procedures for transit via the ACTS at border gates.

In case examination results show no sign of violation, customs branches of border gates of importation shall permit goods to continue their transit journeys to destinations via the ACTS; and update results of dossier examination via the ACTS.

In case examination results are unsatisfactory, to send request for verification via the ACTS to customs offices of departure in foreign countries and only permit goods to continue their transit journeys to destinations via the ACTS when the information is verified; to update dossier examination results via the ACTS. In case verification results show information inconsistency, to comply with Point c of this Clause;

c/ To carry physical inspection of goods, for shipments subject to physical inspection, perform the jobs specified at Points c, d and dd, Clause 3 of this Article, and complete procedures for transit via the ACTS;

d/ To certify cross-border goods via the ACTS.

5. Responsibilities of customs branches of destination in case transit procedures are completed at customs branches outside border gates must comply with Clause 3 of this Article.

Article 13.Customs procedures for goods in transit from ASEAN member states through Vietnam’s territory to other ASEAN countries

1. Customs dossier:

a/ TADs (in case the ACTS encounters an incident, TADs must bear certification by customs offices of ASEAN countries involved in the goods transit journey);

b/ A transit permit in case it is required by Vietnam’s law: 1 original;

c/ A notice of satisfactory quarantine results of the quarantine authority as required by the quarantine law or a quarantine document issued by a foreign quarantine authority and recognized under the quarantine law, for goods in transit subject to quarantine: 1 original.

2. Responsibilities of customs declarants:

a/ To produce customs dossiers specified in Clause 1 of this Article and goods to customs branches of border gates of importation and border gates of exportation (customs branches of transit) for checking upon request of customs offices;

b/ In case an irregularity occurs during a transit journey as specified in Clause 15, Article 3 of this Decree, a customs declarant shall apply necessary measures to limit or prevent damage and notify such to the customs office via the hotline indicated on the portal of the General Department of Customs.

In case it is impossible to promptly notify application of measures to limit or prevent damage to the customs office, the customs declarant shall promptly notify it to the local administration or public security office or border guard station of the locality where the irregularity occurs for certification according to the actual situation, give signatures and append seals on TADs, and notify them to the customs office for handling under regulations;

3. Responsibilities of customs branches of border gates of importation (customs branches of transit):

a/ To receive dossiers specified in Clause 1 of this Article; to check the intactness of goods; to check customs seals or special seals, for goods in transit of priority enterprises.

In case checking results show no sign of violation, to permit goods to continue their transit journeys.

In case checking results show a sign of violation, to comply with Point b of this Clause;

b/ To carry out examination of customs dossiers and physical inspection of goods, for shipments subject to examination of customs dossiers and physical inspection of goods.

In case examination and inspection results show no sign of violation regarding seals and intactness of goods, to permit goods to continue their transit journeys to destinations via the ACTS.

In case examination and inspection results show a sign of violation regarding seals or intactness of goods, heads of customs branches of transit shall base themselves on the severity of violations to consider and decide whether to permit goods to continue their transit journeys to destinations via the ACTS or to stop carrying out procedures for transit via the ACTS and update examination and inspection results via the ACTS.

If permitting goods to continue their transit journeys, to seal up goods after physical inspection is completed, record goods sealing on TADs, and update new seal numbers via the ACTS.

To notify customs offices of departure in foreign countries of the stoppage of customs procedures via the ACTS and guide customs declarants to continue carrying out transit procedures in accordance with Vietnam’s law.

c/ To monitor and coordinate with customs branches of border gates of exportation (customs branches of transit) in handling irregularities occurring during goods transit under regulations;

d/ To certify cross-border goods transit via the ACTS.

4. Responsibilities of customs branches of border gates of exportation (customs branches of transit):

a/ To comply with Points a and b, Clause 3 of this Article;

b/ To monitor, and coordinate with related offices (offices of guarantee, customs offices of border gates of importation, customs offices of transit and customs offices of destination) in handling, irregularities occurring during goods transit under regulations;

c/ To certify cross-border goods transit via the ACTS.

Article 14.Procedures for verification of transit completion

1. Cases subject to verification:

a/ The customs office of departure receives no notice of goods arrival from the customs office of destination via the ACTS within 2 working days after the deadline for completion of transit procedures determined by the ACTS;

b/ The customs office of departure receives no certification of examination and inspection results from the customs office of destination within 6 working days after receiving a notice of goods arrival from the customs office of destination.

2. Procedures for verification of transit completion:

a/ The customs office of departure shall send a request via the ACTS to the customs office of destination for certification of the state of goods.

The customs office of destination shall give certification on a notice of goods arrival and notice of examination and inspection results via the ACTS in case customs procedures have been completed for goods in transit under regulations;

b/ In case the customs office of destination gives certification that goods have not reached the destination, the customs office of departure shall send a written request, made according to the form provided by the Ministry of Finance, to the customs declarant for the latter to provide documents proving that customs procedures via the ACTS have been completed for goods under regulations within 30 days after receiving the request.

c/ After the verification, if there are sufficient documents proving that customs procedures for transit via the ACTS under regulations, the customs office of departure shall notify such via the ACTS to the customs office of destination and customs office of initial destination in case of change of the customs office of destination during the transit journey;

d/ In case the customs declarant fails to provide documents proving that customs procedures for goods have been completed via the ACTS under regulations, the customs office of departure shall send a written request, made according to the form provided by the Ministry of Finance, to the customs office of the last country of transit where the goods are placed under customs supervision via the ACTS for verification of the state of goods in transit.

In case the customs office of the last country of transit where the goods are placed under customs supervision via the ACTS certifies that goods have completed their transit journey, it shall give certification in the notice of goods arrival and notice of examination and inspection results via the ACTS;

dd/ In case there are insufficient grounds for proving that customs procedures for transit via the ACTS have been completed, or the customs office of destination or customs office of transit certifies that transit activities have not yet been completed under regulations, the customs office of departure shall collect or support the collection of duty debts under Article 31 of this Decree.

Article 15.Supervision of goods in transit via the ACTS

1. Goods in transit must be sealed up under regulations, except goods impossible to be sealed up (bulk goods, oversized goods, overweight goods, and bulky goods), customs offices of departure shall base themselves on minutes of certification to record information on goods via the ACTS.

2. Goods in transit through Vietnam’s territory for which the Prime Minister’s transit permits are required shall be supervised by technical devices or directly by customs officers.

Article 16.Sealing of goods in transit via the ACTS

1. Customs sealing:

Goods in transit are subject to customs sealing or special sealing (for priority-eligible transit enterprises), except goods impossible to be sealed up (bulk goods, oversized goods, overweight goods, and bulky goods).

2. Special sealing shall be applied to goods in transit of priority enterprises via the ACTS if the following technical conditions are satisfied:

a/ Safety is guaranteed under normal use conditions;

b/ Goods are easy to be checked and identified;

c/ Any activities aiming to break and remove seals leave traces that can be spotted by the naked eye;

d/ Seals are designed for single use; special seals that are designed for multiple use show identification marks when in use;

dd/ Seals have identification marks that cannot be falsified and are hard to be reproduced;

e/ Materials of seals are natural crash-tolerant and have anti-counterfeiting and anti-reuse properties;

g/ For electronic seals (using electronic chips): When activated, in case of a breaking act, they are capable of automatically transmitting via-satellite signals and sending information on means of transport and goods carried on board these means of transport (including information on their positions) to customs offices and enterprises;

h/ Special seals (accepted by customs offices upon registration of priority-eligible transit enterprises with updated special seal numbers via the e-data system) facilitate customs supervision and management.

In case of change of the registered special seal numbers or additional registration of special seal numbers, priority-eligible transit enterprises shall send lists of additional special seal numbers, made according to the form provided by the Ministry of Finance, to the General Department of Customs for updating on the e-data system before being used.

Customs offices shall check information and update via the e-data system the changed or added special seal numbers within 8 working hours after receiving lists of the changed or added special sea numbers.

Article 17.Standby procedures in case the ACTS fails (standby procedures for transit of goods via the ACTS)

1. Standby procedures for transit of goods via the ACTS may be applied in the following cases:

a/ The electronic system at one of customs offices during the transit journey fails;

b/ The system for electronic declaration by customs declarants fails;

c/ The whole or part of the ACTS for electronic connection between customs offices and customs declarants fails.

Customs declarants may carry out transit procedures in accordance with current laws in the country of departure or wait for resumption of the ACTS for continuing procedures for transit of goods via the ACTS.

Customs declarants need to contact the ACTS assistance sections at customs offices where transit activities are currently carried out for consultancy.

2. Customs offices of departure may only apply standby procedures for transit of goods via the ACTS when TADs have been approved via the ACTS and printed out from the ACTS.

3. Standby procedures for transit of goods via the ACTS at customs branches of transit:

a/ The customs declarant shall produce goods together with TADs and relevant dossiers to the customs branch of transit;

b/ The customs branch shall check the intactness of goods; and check customs seals or special seals, for goods in transit of priority enterprises; and compare seal numbers on TADs with those on means of transport and containers of goods in transit;

c/ If results of checking and comparison specified at Point b of this Clause are satisfactory, the custom branch shall give approval, record results, give a signature and append a seal on the back side of TADs; keep one copy of every approved TAD bearing signature and seal, then return original TADs to the carrier for continuing the transit journey;

d/ If results of checking and comparison specified at Point b of this Clause are unsatisfactory, the head of the custom branch shall base himself/herself on level of non-satisfaction to consider and decide on physical inspection of goods.

Upon physical inspection of goods, the customs branch shall compare information on TADs and documents in the customs dossier with the actual state of goods. If physical inspection results are consistent with the declared information, the customs branch shall comply with Point c of this Clause. If physical inspection results are inconsistent with the declared information on TADs, the head of the customs branch shall base himself/herself on actual inspection results to consider and decide whether to continue or to stop transit procedures.

Goods shall be sealed up after physical inspection is completed in case goods are permitted to be transported to the destination and new seal numbers shall be updated in original TADs.

4. Standby procedures for transit of goods via the ACTS at customs branches of destination:

a/ The carrier shall produce goods together with original TADs to the customs branch;

b/ The customs branch shall check the intactness of goods; check customs seals or special seals, for goods in transit of priority enterprises; and compare seal numbers on TADs with those on means of transport and containers of goods in transit;

c/ If results of checking and comparison specified at Point b of this Clause are satisfactory, the custom branch shall give approval, record results, give a signature and append a seal on the back side of TADs; keep one copy of every approved TAD bearing signature and seal, and return original TADs to the carrier for completion of the transit journey and performance of subsequent procedures (procedures for import into or transit to non-ASEAN countries);

d/ If results of checking and comparison specified at Point b of this Clause are unsatisfactory, the custom branch shall base himself/herself on the level of non-satisfaction to consider and decide on physical inspection of goods.

Upon physical inspection of goods, the customs branch shall compare information on TADs and documents in the customs dossier with the actual state of goods. If physical inspection results are consistent with the declared information, the customs branch shall comply with Point c of this Clause. If physical inspection results are inconsistent with the declared information on TADs, the customs branch shall handle violations and assign its head to base himself/herself on actual inspection results to consider and decide to permit performance of subsequent procedures (procedures for import into or transit to non-ASEAN countries) to be carried out.

5. For priority-eligible transit enterprises, customs offices of transit and customs offices of destination shall notify customs declarants of failure of the ACTS and request the latter to carry out transit procedures under Clauses 3 and 4 of this Article.

6. Right after the ACTS resumes, customs offices of transit and customs offices of destination shall update information on TADs, results of examination of dossiers and physical inspection of goods, state of seals, and seal numbers (if any) on the ACTS.

Customs offices of destination shall send notices of goods arrival and notices of results of examination and inspection to customs offices of departure for certification of completion of transit via the ACTS.

Chapter III

THE ACTS

Article 18.The ACTS

1. The ACTS shall be established, managed and operated by the General Department of Customs on the basis of technical materials agreed upon by the ASEAN member states joining Protocol 7.

2. E-transactions to be conducted via the ACTS include:

a/ Declaration, receipt and feedback of information on performance of goods transit procedures;

b/ Notification of results of processing of customs transit declarations to customs declarants;

c/ Exchange of information related to goods in transit via related ACTSs of the ASEAN member states during goods transit journeys;

d/ Connection of information with related ACTSs of the ASEAN member states for monitoring transactions and making statistics on transit of goods via the ACTS;

3. Customs offices shall process customs transit declarations and issue decisions on customs clearance for goods in transit via the ACTS.

Article 19.Receipt and processing of electronically declared information and notification of information processing results via the ACTS

1. Receipt of electronically declared information:

a/ The ACTS receives electronically declared information 24 hours a day and 7 days a week;

b/ The ACTS receives electronically declared information and gives feedback in an automatic manner to customs declarants and related processing systems.

2. Upon processing information in customs transit declarations, customs offices shall:

a/ Receive and process declared information;

b/ Give feedback on status of receipt and processing of information in customs transit declarations to customs declarants.

Article 20.Principles of operation of the ACTS

1. Compliance with regulations on protection of state secrets, trade secrets and business secrets and relevant regulations regarding e-transactions conducted via the ACTS.

2. Accuracy, objectivity, adequacy and promptness of e-transactions conducted via the ACTS.

3. Safety of information under the Government’s Decree No. 85/2016/ND-CP of July 1, 2016, on assurance of level-based safety for information systems.

4. Creation of favorable conditions for domestic and foreign individuals and organizations to carry out procedures for transit via the ACTS.

Article 21.Electronic documents to be exchanged via the ACTS

The exchange, use, sharing and storage of information and electronic documents via the ACTS must comply with this Decree’s provisions on performance of transit procedures and the law on e-transactions.

Information and electronic documents that are transmitted and exchanged via the ACTS may be used by customs offices while carrying out goods transit procedures.

Article 22.Registration, modification, supplementation and invalidation of ACTS user accounts

1. Registration of user accounts:

a/ Organizations shall register user accounts according to the form issued by the Ministry of Finance and posted on the customs office’s portal (athttps://www.customs.gov.vn) and send a registration request to the customs office’s email at[email protected];

b/ Within 3 working days after receiving a registration request, the customs office shall check information provided by the user and give a reply via the user’s registered email, specifically as follows:

If the provided information is insufficient or inappropriate, the customs office shall send to the user a request for modification and supplementation of information or a request for provision of additional information.

If the provided information is sufficient and appropriate, the customs office shall provide the user with information about user account and information for ACTS connection.

If rejecting the user’s registration information, the customs office shall clearly state the reason;

c/ After receiving the customs office’s reply, the user shall:

Modify and supplement information and send the modified and supplemented information to the customs office’s email, in case the customs office requests modification and supplementation of information.

Use the customs office’s reply on acceptance of registration information for accessing the ACTS and proceed with the subsequent steps for completing the registration, in case the customs office accepts registration information.

2. Modification and supplementation of user account registration information:

a/ For information items related to a personal user account of an enterprise on the ACTS (full name, telephone number, street, city, postal code, country, passcode, and mail address): The user shall log into the customs office’s portal and update the modified and supplemented information via the ACTS;

b/ For other user-related information items:

The user shall access the customs office’s portal (athttps://www.customs.gov.vn)for getting the form of request for information modification and supplementation issued by the Ministry of Finance.

After filling in the form, the user shall send a request for information modification and supplementation to the customs office’s email at[email protected].

Within 3 working days after receiving a request, the customs office shall check the user’s registration information and send a reply to the user’s registered email.

If the provided information is insufficient or inappropriate, the customs office shall send to the user a request for information modification and supplementation.

If the provided information is sufficient and appropriate, the customs office shall accept the user’s request for information modification and supplementation and update information via the ACTS.

If rejecting the user’s request for information modification and supplementation, the customs office shall clearly state the reason.

3. Invalidation of user account information:

The user shall access the customs office’s portal (athttps://www.customs.gov.vn)for getting the form of request for account invalidation issued by the Ministry of Finance.

After filling in the form, the user shall send a request for account invalidation to the customs office’s email at[email protected].

Within 3 working days after receiving the request, the customs office shall check it and send a reply to the user’s registered email, specifically as follows:

If the provided information is insufficient or inappropriate, the customs office shall send to the user a request for information modification and supplementation.

If the provided information is sufficient and appropriate, the customs office shall accept the request for user account invalidation and update information onto the ACTS.

If rejecting the user’s request for account invalidation, the customs office shall clearly state the reason.

Article 23.Handling of incidents

In case the ACTS encounters an incident making it impossible to exchange and provide information in electronic form:

1. The system-managing unit shall immediately notify the incident to the person currently carrying out procedures for the shipment in transit approved by the customs office of departure via the ACTS and to countries along the goods transit route in an appropriate form such as telephone or email registered with the former.

2. During the time of incident handling, goods transit procedures shall be carried out under Article 17 of this Decree.

Chapter IV

GUARANTEE AND COLLECTION OF CUSTOMS DEBTS

Section 1

GUARANTEE AND DEPOSIT FOR GOODS IN TRANSIT

Article 24.Transit guarantee

1. Before registering a customs transit declaration for goods departing from Vietnam, a customs declarant may choose single-journey guarantee or multiple-journey guarantee and submit a letter of guarantee issued by a credit institution or foreign bank branch to the customs office with which the declaration will be registered for updating information via the ACTS. Guarantee is valid for countries involved in the transit journey.

In case the customs declarant is recognized as a priority-eligible transit enterprise, it shall comply with Article 26 of this Decree.

2. Methods of calculating guarantee amounts:

a/ A guarantee amount for one customs transit declaration is equal to 110% of the possible highest customs duty amount among those of countries involved in the transit journey. The ACTS will support the determination of the guarantee amount for each customs transit declaration;

b/ A multiple-journey guarantee amount shall be determined on the basis of a reference amount. Such reference amount is equivalent to the possible customs duty amount for the shipment in transit handled via the ACTS for at least 7 days.

A multiple-journey guarantee amount shall be reconciled and restored in equivalence to the guaranteed duty amount for the goods with completed transit journey without irregularities, or in equivalence to the custom duty amount paid by the customs declarant or guarantor upon occurrence of an irregularity;

c/ Rates of import duty and other taxes will be the highest rates prescribed in tax laws of countries involved in transit journeys. In Vietnam, import duty rates must comply with the Most Favored Nation (MFN) Tariffs;

d/ Methods of calculating import duty and other taxes (if any) in Vietnam must comply with the tax laws.

3. Currencies used in guarantee and tax payment:

a/ Currencies used in guarantee: For goods departing from Vietnam and transiting ASEAN member states, the currency to be written in letters of guarantee is Vietnam dong. In other cases, the currency to be written in letters of guarantee must comply with regulations of the country of departure.

b/ Currencies used in tax payment: The currency used for payment of customs duty amounts payable to Vietnam’s customs offices is Vietnam dong, except cases where freely convertible foreign currencies are allowed for use in tax declaration and payment in accordance with the Law on Tax Administration. Exchange rates for tax calculation must comply with the customs law.

4. Validity duration of guarantee: The validity duration of guarantee is the duration written in a letter of guarantee issued by a credit institution or foreign bank branch. In case the letter of guarantee is accepted by the customs office of departure on or before the final date of the validity duration of guarantee, it remains valid until the transit is completed or the customs declarant or guarantor fully pays the customs duty amount, late-payment interest and fine (if any) under regulations.

5. A letter of guarantee issued by a credit institution or foreign bank branch in Vietnam must comply with current regulations on tax guarantee and have all the following details:

a/ Name, address, telephone number, email address and tax identification number of the credit institution or foreign bank branch;

b/ Name, address, telephone number, email address and tax identification number of the taxpayer or its/his/her representative;

c/ Guarantee amount, which must comply with Clause 2 of this Article;

d/ Validity duration of guarantee, which must comply with Clause 4 of this Article;

dd/ Names and addresses of the customs office where the customs transit declaration is registered, customs office of the first transit country, customs office of the second transit country, and so on (if any), and customs office of the country of destination;

e/ Name and office address of the credit institution or foreign bank branch providing guarantee in Vietnam;

g/ Name and address of the branch or transaction bureau of the credit institution or foreign bank branch providing guarantee in the first transit country;

h/ Names and addresses of the branches or transaction bureaus of the credit institution or foreign bank branch providing guarantee in the second and third transit countries and so on (if any);

i/ Name and address of the branch or transaction bureau of the credit institution or foreign bank branch providing guarantee in the country of destination;

k/ The guarantor who shall take responsibility until the validity duration of guarantee expires.

The form of letter of guarantee is provided athttps://acts.asean.org/

6. A guarantor must meet the following conditions:

a/ Being a credit institution or foreign bank branch operating in accordance with the Law on Credit Institutions and having its head office or branch in Vietnam, for a guarantor issuing guarantee in Vietnam;

b/ Having its/his/her branch or transaction address in the territory of the country involved in the transit journey or designating or authorizing its/his/her agent in the territory of the country involved in the transit journey.

7. If detecting irregularities in the process of movement of goods in transit mentioned in Clause 15, Article 3 of this Decree, a competent agency shall notify them to the customs office of the locality where such irregularities are detected for the latter to:

a/ Send, within 90 days after the customs transit declaration is approved, a notice made according to the form issued by the Ministry of Finance to the guarantor stating that the shipment transit has not yet been completed;

b/ Send, within 270 days after the customs transit declaration is approved, a notice made according to the form issued by the Ministry of Finance to the guarantor for paying the customs debt for the shipment in transit.

8. Responsibility to pay customs debts:

a/ Customs declarants shall fully pay customs duty amounts within 10 days after customs offices make a notice according to the form issued by the Ministry of Finance;

b/ Guarantors shall fully pay customs duty amounts within 30 days after customs offices make a notice according to the form issued by the Ministry of Finance, in case customs declarants fail to fulfill or fully fulfill their tax liability within the time limit specified at Point a of this Clause.

In addition to fully paying customs duty amounts, customs declarants or guarantors shall also pay late-payment interests and fines (if any) under current regulations;

c/ Past 90 days from the date of expiration of the time limit for tax payment specified at Point a or b of this Clause, if customs declarants or guarantors fail to fulfill their tax liability, customs offices shall apply measures to coerce execution of tax-related administrative decisions under regulations.

9. Inspection, monitoring and handling of guarantee:

A customs office where a customs transit declaration is registered shall inspect, monitor and handle a guarantee as follows:

a/ If the guarantor fully satisfies the prescribed conditions and the letter of guarantee is valid, the customs office shall accept the letter of guarantee and update data via the ACTS. The system shall automatically grant a guarantee reference number (GRN) for the customs declarant to fill in the customs transit declaration;

b/ If the guarantor fails to fully satisfy the conditions prescribed in Clause 6 of this Article and the letter of guarantee fails to comply with Clause 5 of this Article, the customs office shall notify such to the customs declarant;

c/ If suspecting the truthfulness of the letter of guarantee or detecting that the guarantee currently in use no longer satisfies the prescribed conditions, the customs office shall suspend or cancel the guarantee and send a notice to the guarantor for verification.

If verification results prove that the letter of guarantee is valid, the customs office shall comply with Point a of this Clause.

If verification results prove that the letter of guarantee is invalid, the customs office shall cancel the guarantee under Article 28 of this Decree;

d/ In case the customs declarant requests modification of guarantee information, such modification may only be carried out before the customs office of departure approves the customs transit declaration;

dd/ Past 30 days from the date the customs office notifies the payable customs duty amount, if the guarantor fails to fulfill the commitment, the customs office shall, within 3 working days, make a notice according to the form issued by the Ministry of Finance or notify such via the e-data system to customs offices nationwide and customs offices of countries participating in the ACTS for the latter to reject the letter of guarantee issued by such guarantor;

e/ The paid customs duty amount shall be refunded to the customs declarant or guarantor if, within 1 year from the date of payment, competent agencies conclude that there is no violation during the transit journey and the transit journey has completed.

In case both the customs declarant and guarantor have paid customs duty, the overpaid duty amount shall be refunded to the guarantor.

The refund of customs duty amounts is the same as the refund of overpaid tax amounts in accordance with the law on tax administration;

g/ After receiving information from the customs office of destination that the customs declarant has completed the transit journey, the customs office of departure shall send a notice made according to the form issued by the Ministry of Finance or notify such to the guarantor via the e-data system.

Article 25.Paying deposits as guarantee for goods in transit

1. Before registering a customs transit declaration, a customs declarant may choose the form of guarantee by paying a deposit to the customs office to secure the payment of the payable customs duty amount for such declaration, and submit the deposit payment slip to the customs office for updating information via the ACTS.

2. The method of calculating the deposit amount for a customs transit declaration, currency used for deposit payment, currency used for duty payment, and responsibility to pay customs duty must comply with Article 24 of this Decree. The deposit amount as guarantee for goods in transit is valid for countries participating in the transit journey.

In case the customs declarant registers a customs transit declaration in Vietnam, the deposit amount shall be transferred to the State Treasury-opened deposit account of the customs office where such declaration is registered.

3. Inspection, monitoring and handling of deposits:

The customs office where a customs transit declaration is registered shall inspect, monitor and handle deposits as follows:

a/ In case the customs declarant fully pays the deposit amount required for a customs transit declaration, the customs office where such declaration is registered shall update data via the ACTS. The system shall automatically grant a GRN for the customs declarant to fill in the declaration;

b/ In case the deposit amount for a customs transit declaration is smaller than the prescribed amount, the customs office where such declaration is registered shall request the customs declarant to pay the deficit.

4. After the movement of goods in transit is completed, the customs office shall refund the deposit amount like the refund of overpaid tax amounts in accordance with the law on tax administration.

5. In case a customs debt arises, the collection and support for collection of such customs debt must comply with Article 31 of this Decree.

6. In case a customs debt arises in Vietnam, the customs office where the debt arises shall send a request, made according to a form issued by the Ministry of Finance or via the e-data system, to the customs office of the country currently keeping the deposit amount for transferring an amount equal to the payable duty amount to the State Treasury-opened account for budget revenue collection of the customs office.

In case the customs office of the signatory country makes account-transfer of the deposit amount in US dollar or the payment currency of such country, the rate for exchanging foreign currency into Vietnam dong must comply with current regulations.

Article 26.Exemption from multiple-journey guarantee

1. An enterprise will be exempt from multiple-journey guarantee if satisfying the following conditions:

a/ Being recognized as a priority-eligible transit enterprise;

b/ Having registered the provision of transportation service or logistics service in accordance with law;

c/ Having no tax arrears, late-payment interests or fines that are overdue for more than 90 days and not being subject to measures to coerce execution of tax-related administrative decisions in the field of customs for 2 consecutive years up to the time of request for exemption from guarantee.

2. A dossier of request for exemption from guarantee must comprise:

a/ The original request for exemption from guarantee, made according to a form issued by the Ministry of Finance;

b/ One copy of the decision on recognition of a priority-eligible transit enterprise, in case of first-time request.

3. Guarantee exemption procedures:

a/ A customs declarant shall send a dossier specified in Clause 2 of this Article to the customs office where the first-time customs transit declaration is registered via the ACTS;

b/ Within 5 working days after receiving a request for exemption from guarantee, the customs office shall check the customs declarant’s satisfaction of the conditions prescribed in Clause 1 of this Article and send a notice of exemption from guarantee, made according to a form issued by the Ministry of Finance, to the customs declarant and, at the same time, update information via the ACTS for the customs declarant to declare the GRN in the customs transit declaration.

4. When customs duty and other payable amounts arise for goods in transit, a transit enterprise eligible for exemption from guarantee under this Article shall fully pay duty and other payable amounts in accordance with law.

Article 27.Reduction of multiple-journey guarantee

1. A 50% reduction of the reference guarantee amount shall be given to a customs declarant that satisfies the following conditions:

a/ For 2 consecutive years up to the time the customs declarant submits a request for guarantee reduction, it/he/she has not been handled for tax evasion or tax-related fraud; or for cross-border smuggling or illegal movement of goods; and has committed no administrative violations for which sanctioning forms and levels fall beyond the competence of heads of customs branches and the equivalent;

b/ At the time of request for guarantee reduction, it/he/she has no overdue tax arrears, late-payment interests or fines.

2. A 75% reduction of the reference guarantee amount shall be given to a customs declarant that satisfies the following conditions:

a/ For 3 consecutive years up to the time the customs declarant submits a request for guarantee reduction, it/he/she has not been handled for tax evasion or tax-related fraud; or for cross-border smuggling or illegal movement of goods; and has committed no administrative violations for which sanctioning forms and levels fall beyond the competence of heads of customs branches and the equivalent;

b/ At the time of request for guarantee reduction, it/he/she has no overdue tax arrears, late-payment interests or fines.

3. The guarantee reduction duration is 2 years from the date the customs office issues a notice of guarantee reduction.

In the guarantee reduction duration, if the customs declarant fails to satisfy one of the conditions prescribed in Clause 1 or 2 of this Article, it/he/she will no longer be eligible for guarantee reduction.

4. Procedures for guarantee reduction:

a/ A customs declarant that requests guarantee reduction shall, in pursuance to Clause 1 or 2 of this Article, send via the ACTS a request for guarantee reduction, made according to a form issued by the Ministry of Finance, to the customs office where the customs transit declaration is registered for the first time with guarantee;

b/ Within 5 working days after receiving a request for guarantee reduction, the customs office shall check the customs declarant’s satisfaction of the conditions prescribed in Clause 1 or 2 of this Article and send to the customs declarant a notice, made according to a form issued by the Ministry of Finance, stating whether or not it/he/she is eligible for guarantee reduction.

In case the customs declarant is eligible for guarantee reduction, the customs office shall update information via the ACTS for the former to declare the GRN in the customs transit declaration.

5. When customs duty and other payable amounts arise for goods in transit, an enterprise eligible for guarantee reduction under this Article shall fully pay duty and other payable amounts in accordance with law.

Article 28.Cancellation of guarantee

1. When wishing to cancel single-journey guarantee or multiple-journey guarantee, a guarantor shall send by post or via the e-data system a notice of guarantee cancellation, made according to a form issued by the Ministry of Finance, to the customs office where the customs transit declaration is registered.

2. A letter of guarantee will be invalidated on the 14^thday following the date when the guarantor makes a request for guarantee cancellation. The customs office shall update information about guarantee cancellation via the ACTS.

3. Guarantee cancellation does not affect the payment of customs duty and other amounts payable to the state budget that arise during the movement of goods in transit for customs declarations registered for such guarantee before the effective date of guarantee cancellation.

4. In case a guarantor no longer satisfies the conditions prescribed in Clause 6, Article 24 of this Decree, or a letter of guarantee is invalidated under Point c, Clause 9, Article 24 of this Decree, the customs office shall send to the customs declarant and the guarantor a notice of cancellation of the letter of guarantee, made according to a form issued by the Ministry of Finance, and update information via the ACTS.

Article 29.Rights and responsibilities of guarantors

1. A guarantor has the following rights:

a/ To be exempt from guarantee liability related to transit operation if, within the time limit specified in Clause 7, Article 24 of this Decree, it/he/she receives no notice of non-completion of the transit journey and payment of customs debts;

b/ To be exempt from guarantee liability related to transit operation when goods transit procedures are completed.

In case transit operation finishes as a result of fraudulent information but within 1 year from the date the customs office of departure approves goods in transit, the guarantor receives no notice of payment of customs debts, it/he/she may be exempt from guarantee liability related to transit operation;

c/ To receive a notice from the customs office of departure, made according to a form issued by the Ministry of Finance, or via the e-data system, stating that the customs declarant has completed transit procedures via the ACTS;

d/ To be refunded the customs duty amount it/he/she has paid on behalf of the customs declarant if, within 1 year from the date the guarantor pays customs debts, the competent agency concludes that there is no violation related to transit operation or that relevant transit operation has finished.

2. A guarantor has the following responsibilities:

a/ To fully pay arising customs debts under Clause 1, Article 30 of this Decree which, however, must not exceed the value of guarantee stated in the letter of guarantee in case the customs declarant fails to pay or fully pay the customs duty amount;

b/ To coordinate with, or provide information at the request of, the customs office when receiving a request for verification of guarantee information and satisfaction of guarantee conditions prescribed at Point c, Clause 9, Article 24 of this Decree;

c/ To fully fulfill other guarantee obligations in accordance with relevant laws.

Section 2

PAYMENT OF CUSTOMS DUTY AMOUNTS AND DUTY REDUCTION; NON-COLLECTION OF DUTY; COLLECTION AND SUPPORT FOR COLLECTION OF CUSTOMS DEBTS

Article 30.Cases giving rise to payable customs duty amounts, and reduction of customs duty

1. The following cases shall be regarded as giving rise to payable customs duty amounts:

a/ Goods are illegally moved from transit procedures via the ACTS as prescribed in Clause 15, Article 3 of this Decree, or past the 30-day time limit, the customs office of departure receives no dossier or document from the customs declarant or from the customs offices participating in the transit journey proving that customs procedures have been completed for transit operation via the ACTS as prescribed in Clause 2, Article 14 of this Decree;

b/ Goods in transit are taken for domestic consumption or see a change in quantity, value, origin or HS code compared to those declared, and other cases giving rise to payable customs duty amounts.

2. A place identified as giving rise to a payable customs duty amount is the place from which goods in transit are illegally moved, taken for domestic consumption, or see a change in quantity, value, origin or HS code, and other cases giving rise to customs duty amounts. If it is impossible to identify a specific place, the place identified as giving rise to a payable customs duty amount is the place from which the customs office or competent agency detects that goods in transit are illegally moved, taken for domestic consumption, or see a change in quantity, value, origin or HS code, and other cases giving rise to customs duty amounts.

3. Entities responsible for payable customs duty amounts include:

a/ The customs declarant that will be the first to take responsibility for the customs duty amount arising during the movement of goods in transit;

b/ The guarantor that shall pay the whole or part of the customs duty amount arising during the movement of goods in transit if the customs declarant fails to pay or fully pay the customs duty amount;

c/ The entity that illegally moves or is involved in illegal movement of goods from transit procedures via the ACTS, and shall pay a customs debt for illegally removed goods. The payment of customs debts must comply with Clause 8, Article 24 of this Decree.

The entity that owns or possesses goods illegally moved from transit procedures via the ACTS shall pay a customs debt for the goods it/he/she owns or possesses as a result of illegal movement. The payment of customs debts must comply with Clause 8, Article 24 of this Decree.

4. Reduction or non-collection of import duty:

a/ Import duty reduction will be given for goods in transit that are currently subject to customs supervision in accordance with the customs law and damaged or lost for objective causes as prescribed by the Law on Import Duty and Export Duty. The reduction rate will be equal to the rate of actual wastage of goods. No duty will be collected if goods are wholly damaged or lost;

b/ Dossiers, procedures and competence for reduction or non-collection of import duty must comply with the Law on Import Duty and Export Duty and guiding documents.

Article 31.Collection and support for collection of customs debts

1. Collection of customs debts:

a/ In the cases giving rise to payable customs duty amounts specified in Clause 1, Article 30 of this Decree, customs offices shall re-calculate payable customs duty amounts in accordance with current regulations;

b/ The collection of customs debts must comply with Clauses 7 and 8, Article 24, and Clauses 2, 3 and 4, Article 31, of this Decree, and the tax laws.

2. Support for collection of customs debts:

a/ In case it is impossible to collect or fully collect a customs duty amount, the customs office of the country where the customs duty amount arises shall request the customs office(s) of the country(ies) participating in the transit journey to support collection of customs debts;

b/ In case a person in transit chooses to pay a deposit, the customs office of the country of departure shall transfer such deposit to the customs office of the country where a payable customs duty amount arises upon receiving the latter’s request.

3. Forms of support for collection of customs debts:

Support for collection of customs debts shall be notified and provided in writing or via an e-system. The customs office requesting support for collection of customs debts shall provide the requested customs office with at least the following information:

a/ Name and identification number of the customs declarant;

b/ Serial number of the customs transit declaration and date of its registration;

c/ GRN;

d/ Guarantee-providing credit institution or foreign bank branch;

dd/ Payable customs duty amount and reason for such amount to arise;

e/ Other information (if necessary).

Information provision and confidentiality must comply with the Law on Tax Administration and relevant laws.

4. Time limit for handling a request for support for collection of customs debts:

Within 60 days after receiving a request for support for collection of customs debts, the requested customs office shall notify the requesting customs office of:

a/ Activities carried out to collect customs debts and collection results (if any);

b/ Reasons for failure to collect or fully collect customs debts or for refusal to provide support.

5. Suspension of support for collection of customs debts:

In case a customs declarant produces documents certified by competent agencies for proving that his/her customs debt is being considered in the country where such debt arises, the customs office requested to provide support shall suspend customs debt collection activities and notify such in writing to the requesting customs office.

Chapter V

PRIORITY REGIME FOR TRANSIT ENTERPRISES

Article 32.Conditions for application of priority regime

A transit enterprise will be eligible for priority when carrying out goods transit procedures via the ACTS if fully satisfying the following conditions:

1. Conditions on head office of the enterprise:

Having its head office based in Vietnam, for Vietnamese transit enterprises, or having its branch or representative office licensed for establishment by a Vietnamese competent agency and based in Vietnam, for foreign transit enterprises.

2. Conditions on level of performance of transit procedures via the ACTS:

The enterprise shall ensure that customs transit declarations made via the ACTS account for at least 60% of the total declarations for goods in transit via the ASEAN countries it has made in 1 year counted to the time it requests to be recognized as a priority-eligible transit enterprise.

3. Conditions on compliance with the audit law:

The enterprise’s annual financial statements shall be audited by an audit firm qualified for providing audit services in accordance with the law on independent audit. Audit opinions on financial statements mentioned in audit reports must be unqualified ones according to Vietnam’s audit standards.

4. Conditions on retention of customs dossiers, account books and documents and other documents relating to goods in transit:

The enterprise shall retain customs dossiers, account books and documents and other documents relating to goods in transit in accordance with the customs law.

5. Conditions on compliance with the customs and tax laws:

a/ The enterprise has no overdue debts of duty amounts, late-payment interests or fines by the time it submits a dossier of request for being recognized as a priority-eligible transit enterprise;

b/ In 5 consecutive years up to the time it submits a dossier of request for being recognized as a priority-eligible transit enterprise, the enterprise has committed no violation of the tax and customs laws which is serious enough for being handled for the following acts:

Evading tax, committing tax frauds, smuggling, and illegally transporting goods across borders;

Committing administrative violations in the field of customs for which the sanctioning forms and levels fall beyond the competence of heads of customs branches or the equivalent.

6. Conditions on use of special seals: Special seals have been accepted by customs offices.

Article 33.Priority regime

1. Exemption from guarantee as prescribed in Article 26 of this Decree.

2. Exemption from production of TADs or showing of goods at customs offices, unless the ACTS encounters an incident.

3. Exemption from examination of customs dossiers or physical inspection of goods at the customs office of departure, unless there is a sign of violation.

4. Use of special seals accepted by customs offices.

5. A transit enterprise will be entitled to priority regime for 36 months from the date of issuance of a decision on recognition of a priority-eligible transit enterprise.

Article 34.Procedures for recognition of priority-eligible transit enterprises

1. Responsibilities of enterprises

An enterprise shall, based on the conditions prescribed in Article 32 of this Decree, directly submit or send by post to the General Department of Customs a dossier of request for recognition of a priority-eligible transit enterprise. Such a dossier must comprise:

a/ One original of a written request for recognition, made according to a form issued by the Ministry of Finance;

b/ One copy of the enterprise registration certificate (for Vietnamese enterprises) or establishment license (for branches or representative offices of foreign enterprises);

c/ Copies of audited financial statements of the latest 2 consecutive fiscal years;

d/ Copies of audit reports of the latest 2 consecutive fiscal years.

2. Responsibilities of the General Department of Customs:

a/ To examine dossiers of request for recognition of priority-eligible transit enterprises to ensure their completeness, lawfulness and validity; to compare information provided by enterprises and check special seals (if they are used by enterprises) and collected information against the conditions prescribed in Article 32 of this Decree.

In case an enterprise does not satisfy the prescribed conditions for application of priority regime, within 3 working days after receiving a complete dossier of request for recognition, the General Department of Customs shall issue a written reply clearly stating the reason of non-satisfaction.

In case an enterprise satisfies the prescribed conditions for application of priority regime, within 3 working days after receiving a complete dossier of request for recognition, the General Department of Customs shall notify in writing the enterprise of a plan on physical inspection at the enterprise and carry out physical inspection after 10 working days from the date of notification;

b/ Physical inspection at an enterprise covers examination of dossiers and documents relating to transit operation carried out by the enterprise for the latest 5 years in order to evaluate its satisfaction of the conditions prescribed in Article 32 of this Decree.

Physical inspection duration must not exceed 3 working days counting from the time the enterprise provides sufficient dossiers and documents at the request of the customs office. When the physical inspection is completed, a written report on results of dossier examination and physical inspection shall be made and certified by the customs office and the enterprise, and then included in the dossier of recognition of a priority-eligible transit enterprise.

Based on the report on results of physical inspection at the enterprise and data of the customs sector as well as collected information and results of verification of additional information (if any), if the enterprise satisfies the conditions for application of priority regime, the General Director of Customs shall, within 90 days after receiving a dossier of request for recognition of a priority-eligible transit enterprise prescribed in Clause 1 of this Article, sign a decision on recognition of a priority-eligible transit enterprise, made according to a form issued by the Ministry of Finance.

If the enterprise fails to satisfy the conditions for application of priority regime, the General Department of Customs shall, within 3 working days after completing inspection at the enterprise, issue a written reply clearly stating the reason of non-satisfaction.

Article 35.Procedures for suspension or revocation of decisions on recognition of priority-eligible transit enterprises

1. A priority-eligible transit enterprise will have its decision on recognition of priority-eligible transit enterprise suspended in one of the following cases:

a/ It no longer satisfies one of the conditions prescribed in Article 32 of this Decree and, past 30 days from the date the enterprise or customs office notifies such non-satisfaction, takes no remedial measure or is unable to remediate such non-satisfaction.

b/ It violates the customs law and is handled for its violation for which the sanctioning form and level fall within the competence of heads of customs branches and the equivalent or holders of lower titles.

2. A priority-eligible transit enterprise will have its decision on recognition of priority-eligible transit enterprise revoked in one of the following cases:

a/ It has its decision on recognition of priority-eligible transit enterprise suspended under Point a, Clause 1 of this Article and, past 30 days from the date the General Director of Customs issues the suspension decision, takes no remedial measure or is unable to remediate the non-satisfaction of prescribed conditions for application of priority regime.

b/ It fails to completely execute the customs office’s decision on handling of violations within 60 days from the date of issuance of such decision under Point b, Clause 1 of this Article.

c/ It violates the tax laws or customs law and is handled for one of the following acts:

Evading tax, committing tax frauds, and illegally transporting goods across borders;

Committing administrative violations in the field of customs for which the sanctioning forms and levels fall beyond the competence of heads of customs branches and the equivalent.

d/ It requests waiver of priority regime.

3. Responsibilities of a priority-eligible transit enterprise:

a/ To send to the General Department of Customs a notice, made according to a form issued by the Ministry of Finance, of the conditions prescribed in Article 32 of this Decree which it no longer satisfies;

b/ Within the time limit specified at Point a, Clause 2 of this Article, to send to the General Department of Customs a notice, made according to a form issued by the Ministry of Finance, and documents proving its remediation of the non-satisfaction of the conditions for application of priority regime.

c/ To send to the General Department of Customs a request, made according to a form set by the Ministry of Finance, for waiver of priority regime.

d/ Within the time limit specified at Point b, Clause 2 of this Article, to notify and send to the General Department of Customs documents proving its complete execution of the customs office’s administrative sanctioning decision mentioned at Point b, Clause 1 of this Article.

4. Responsibilities of the General Department of Customs for suspension or revocation of a decision on recognition of priority-eligible transit enterprise:

a/ To notify in writing an enterprise of the conditions prescribed in Article 32 of this Decree which the latter no longer satisfies or, based on the enterprise’s notice specified at Point a, Clause 3 of this Article, the General Director of Customs shall sign a decision on suspension of the decision on recognition of priority-eligible transit enterprise.

b/ The General Director of Customs shall, after fully collecting documents proving the enterprise’s violation of the customs law as prescribed  at Point b, Clause 1 of this Article, sign a decision on suspension of the decision on recognition of priority-eligible transit enterprise.

c/ To receive and check the notice and documents specified at Point b, Clause 3 of this Article and, based on the conditions prescribed in Article 32 of this Decree, check the conditions already remediated by the enterprise under Clause 2, Article 34 of this Decree.

In case the enterprise satisfies the prescribed conditions for application of priority regime, the General Director of Customs shall sign a decision on revocation of the decision on suspension of priority-eligible transit enterprise.

In case the enterprise fails to satisfy the prescribed conditions for application of priority regime, the General Director of Customs shall sign a decision on revocation of the decision on recognition of priority-eligible transit enterprise.

d/ Based on the notice and documents specified at Point b, Clause 3 of this Article, the General Director of Customs shall sign a decision on revocation of the decision on suspension of priority-eligible transit enterprise.

5. Responsibilities of the General Department of Customs for revocation of a decision on recognition of priority-eligible transit enterprise:

a/ Within 3 working days after receiving an enterprise’s request for waiver of priority regime, the General Director of Customs shall sign a decision on revocation of the decision on recognition of priority-eligible transit enterprise;

b/ Within 3 working days after the expiration of the time limit specified at Point a or b, Clause 2 of this Article, if the enterprise fails to remediate the non-satisfaction of the conditions for application of priority regime or has not completely executed the customs office’s sanctioning decision; or after fully collecting documents proving that the enterprise violates the customs law as specified at Point c, Clause 2 of this Article, the General Director of Customs shall sign a decision on revocation of the decision on recognition of priority-eligible transit enterprise.

6. The Ministry of Finance shall issue forms of decisions on suspension or revocation of decisions on recognition of priority-eligible transit enterprises, and decisions on revocation of decisions on suspension of priority-eligible transit enterprises. These decisions take effect right after they are issued.

Article 36.Management responsibilities of customs offices

1. To evaluate enterprises’ reports mentioned in Clause 2, Article 37 of this Decree in order to consider whether they satisfy the conditions of priority-eligible transit enterprises prescribed in Article 32 of this Decree.

2. To notify signatories to agreements via the ACTS of decisions on recognition of priority-eligible transit enterprises, and decisions on suspension or revocation of decisions on recognition of priority-eligible transit enterprises.

Article 37.Responsibilities of priority-eligible transit enterprises

1. To comply with the customs and tax laws.

2. To make annual reports according to forms issued by the Ministry of Finance and directly submit or send them by post to the General Department of Customs no later than January 20 of the subsequent year or make unscheduled reports at the request of customs offices.

3. To carry out self-examination, detect and remediate errors and report them to customs offices; to maintain conditions of priority-eligible transit enterprises in accordance with this Decree.

If arising problems affect conditions for application of priority regime, to promptly report them to customs offices that have issued decisions on recognition of priority-eligible transit enterprises for consideration and decision.

Chapter VI

IMPLEMENTATION PROVISIONS

Article 38.Effect

This Decree takes effect on June 1, 2020.

Article 39.Organization of and responsibility for implementation

1. The Ministry of Finance shall:

a/ Assume the prime responsibility for, and coordinate with related ministries and sectors in, organizing the implementation of this Decree;

b/ Assume the prime responsibility for, and coordinate with related ministries and sectors in, formulating, guiding and issuing technical requirements for, and development, implementation, management and operation of, information technology systems for transit operation via the ACTS.

2. The Ministry of Transport shall issue specific regulations on routes eligible for movement of goods via the ACTS.

3. The Ministry of Industry and Trade shall assume the prime responsibility for, and coordinate with related ministries in, providing the Ministry of Finance with lists of goods banned from transit, goods restricted from transit, and goods in transit requiring transit permits for the Ministry of Finance (the General Department of Customs) to send them to the ASEAN Secretariat right after this Decree takes effect. In case such lists are modified or supplemented, the modified or supplemented lists shall be provided to the ASEAN Secretariat right after their issuance.

4. Ministers, heads of ministerial-level agencies, heads of government-attached agencies, and chairpersons of provincial-level People’s Committees shall implement this Decree.-

On behalf of the Government
Prime Minister
NGUYEN XUAN PHUC