DECISION

ON PROMULGATING OF CUSTOMS PROCEDURES FOR COMMERCIAL IMPORT, EXPORT GOODS

CHIEF OF GENERAL DEPARTMENT OF CUSTOMS

Pursuant to Law on Customs dated June 26, 2001 and Law on amendments to and supplements of a number of articles of Law on Customs adopted by the Legislature of the  National Assembly, at its 7^th Section on June 14, 2005;
Pursuant to Decree No. 154/2005/ND-CP dated December 15, 2005 of the Government Detailing the Implementation of a number of Articles of Law on Customs with respect to Customs Procedures, Customs Inspection and Customs Supervision;
Pursuant to Circular No. 112/2005/TT-BTC of the Ministry of Finance Providing Guidelines for Implementation of Decree No. 154/2005/ND-CP dated December 15, 2005 of the Government Detailing the Implementation of a number of Articles of Law on Customs with respect to Customs Procedures, Customs Inspection and Customs Supervision;
In consideration of recommendations of the Head of Customs Management Supervision Division, Head of Training and Official Organization Department, Head of Customs Information Technology and Statistics Department.

DECIDES

Article 1. To issue in conjunction with this decision the process and diagram of customs procedures for commercial import and export goods. 

Article 2. This decision shall take effect as from January 1, 2006.  All previous provisions regarding customs procedures of commercial import, export goods shall be abolished.

Article 3. Head of all divisions under the General Department of Customs, Chief of Customs Department of provinces, cities shall be responsible for the implementation of this decision. 

PROCESS

OF CUSTOMS PROCEDURES FOR COMMERCIAL IMPORT, EXPORT GOODS

The complete process of customs procedures for a clearance of commercial import, export goods shall include 4 stages.  The procedures shall, depending on inspection method, level determined by the computer or relevant officer and on case-by-case basis, be carried fully with 4 stages or partially by certain stages as follows: 

Stage 1: Receiving the dossier, primary inspecting, registering customs declaration

This stage shall be responded by one customs officer:

1. Inputting enterprise’s import tax code for verifying its qualification for opening a declaration form on the system (checking whether such enterprise is forced) and verify tax extension, tax guarantee;

1.1. If the enterprise is not permitted or not qualified tax provisions (the enterprise was not granted with tax extension and have not paid due tax or have not been guaranteed for such due amount), customs officer shall inform in writing to the enterprise of the basis it was disqualified;

1.2. Where the enterprise is entitled to open a declaration, the officer shall verify the customs dossier (the procedures are provided in item III, Section I, Part B of Circular 112/2005/TT-BTC). Should the dossier be valid, then the officer shall input the information of the declaration to the system:

a. Where the dossier is submitted manually (hard copy), then the officer shall input the information of the declaration and any other relevant information (if any);

b. Where the dossier is submitted by e-instrument (disc, on-line, etc.), then the officer shall update the information and any other relevant information (if any) into the computer system;

2. After the input of the information, the information shall be automatically handled (by a risk management program) and issue an order on  inspection method, level with shall be numbered identically with the number of the customs declarations.

Inspection method, level order shall include certain criteria in a prescribed form and of different level (levels 1, 2, 3 shall be correlative with green, yellow, and red). 

- Level (1): dossier detailed inspection and goods physical inspection shall be exempted (green line);

- Level (2): the dossier shall be inspected specifically, goods physical inspection shall be exempted (yellow line);

- Level (3): dossier detailed inspection and goods physical inspection must be carried out (red line);

Order on method, level inspection of level 3 (red line) shall include 3 level of physical inspection (in accordance with Circular 112/2005/TT-BTC) as follows:

+ Level (3).a: Verifying the complete consignment;

+ Level (3).b: Verifying 10% of the consignment, if there is no breach, the verification shall be ended, where there is any breach, the verification shall be continued until the extent of such breach is determined. 

3. Cases where the officer shall propose the inspection method, level:

3.1. With respect to customs sub-department where the computer has not been qualified for the automatic lines separation, the officer that received the application shall based on criteria for classifying the enterprises (enterprise that well obey the customs regulations, enterprises that repeatedly breach the customs regulations), policies on such goods, other information, etc to recommend the method and level of inspection and mark on item 4.2 of the inspection order (printed) and transfer the dossier together with such order to the supervisor of such customs sub-department for his decision.

 3.2. Where the computer has determined the method and level of inspection on the order but the officer find that such determination is inappropriately due certain inundated information, the officer shall propose other inspection method and level by marking item 4.2 of the inspection order, and transfer such dossier and order to the supervisor of customs sub-department for his decision.

4. The officer who received the application and the declaration shall leave his signature and employee number at item 6 on the order on inspection method and level and transfer the package to the following stage for next procedures. Particularly:

4.1. If the Order on inspection method and level is of level (1) then the application shall be transferred together with the order to the supervisor of the customs sub-department for his determination of clearance of the same;

4.2. If the Order on inspection method and level is of levels (2) or (3), then the application shall be transferred together with the order to other officer for detailed inspection and tax calculation of stage 2;

5.  Inspection method and level Order shall be prepared in two copies, one of those shall be kept with the customs dossier for preservation, one shall be transferred to the applicant for implementation. 

Stage 2: Detailed Inspection, Tax, Prices:

This stage shall be responded by a customs officer whom is in charge with detailed inspection.  Particularly:

1. Dossiers detailed inspection (to be carried out in accordance with the provisions set forth in Item III.1.2, Section I Part B, Circular 112/2005/TT-BTC);

2. Verification on taxable price, code, tax policies (to be carried out in accordance with Item III.3.5,Section I Part B, Circular 112/2005/TT-BTC);

3. If the detailed inspection is found appropriated, the acceptation information shall be inputted into the computer system.

4. If there are any errors found, necessary adjustment shall be made and updated into the computer system.

When carrying out detailed inspection (red line), the officer found that there are certain errors, unclear information, such errors, unclear information shall be recorded prior to a transfer of the dossiers to the unit in charge with physical inspection (stage 3) for its acknowledgment and inspection.

In the case of there are certain errors found during the physical inspection (red-lined dossier transferred by the physical inspection department), necessary adjustment shall be made and updated into the computer system.

5. Transferring the dossiers and order on method and level of inspection to the Supervisor of customs sub-department for his decision:

5.1. Where the results of the detailed inspection are in conformity with applicant’s declarations and the Supervisor of customs sub-department agrees for clearance, the dossiers should be stamped with a completion seal and transferred to the enterprises.

5.2. Where there are any errors found during the physical inspection, the officer in charge shall propose the Supervisor of customs sub-department with dealing measure for his consideration and decision to:  

- carrying out physical inspection, and/or;

- drawing a minutes on administrative penalty.

6. Recording dossiers inspection results to the customs declaration (at “customs inspection results), executing and stamping his identify code.  Executing and stamping officer’s identify code in Item 6 of the order of inspection method and level.

Stage 3: Physical Inspection

This stage shall be responded by a customs officer assigned for physical inspection (which may be carried out by equipment or manually).

1. packaging and seal of the goods;

2. physical inspection shall be carried out in accordance with guidelines set forth in the inspection method and level order (physical inspection shall be carried out in line with the guidelines provided in item II.2.2, and III.3, Section I, Part B, Circular 112/2005/TT-BTC);

3. Recording physical inspection results on the customs declaration;

4. Inputting physical inspection results into computer system.

5. Transferring the dossier to the Supervisor of customs sub-department for his decision. 

5.1. Where physical inspection results are corresponding with the declarations, the consignments are agreed for clearance (or temporarily clearance) by the Supervisor of customs sub-department, a seal of customs procedures completion shall be stamped and a clearance (or temporary clearance) shall be made.

5.2. Where physical inspection results are not in conformity with the customs declarations, the dossiers shall be transferred back to the detailed inspection unit (stage 2) for verification and tax calculation; and/or drawing a breaching minutes and proposing a dealing measure to the Supervisor of customs sub-department (if there are any breach);

6. Executing and stamping his identify code in item 6 of the inspection method and level order.

Stage 4: Clearance

This stage shall be responded by the Supervisor of customs sub-department:

1. Verifying and deciding to change the method and level of inspection stating on the order which are determined by the computer or proposed by the officer in charge during the process of the procedures (if there is any basis required for such adjustment).

1.1. If there is no change to the order, which is determined by the computer, the Supervisor of customs sub-department shall mark on item 7.2 of the order;

1.2. If there are any changes to the order, the Supervisor of customs sub-department shall mark on item 4.3 and 7.1 of the order.  The Supervisor of customs sub-department shall clearly state the no. container/consignment on item 5 of the order. 

2. Resolving difficulties that surpass his inferior’s authorization; 

3. Deciding to clear the goods in accordance with the inspection method and level order;

4. Executing the customs declaration and the order on inspection method and level and making decision on goods clearance or temporarily clearance.

Transferring the executed dossier and the order on inspection method and level to the stamping unit for completion of customs procedures and return the dossier to the enterprises.

5. Supervisor of customs sub-department shall be wholly responsible for the verification, supervision of the implementation of all stages of the customs procedures, and ensure the procedures to be carried out promptly and in accordance with the laws, and do not cause any encumbrances.

ORDER

ON INSPECTION METHOD, LEVEL FOR A IMPORT, EXPORT GOODS CONSIGNMENT

1. Exporter/Importer (Company’s name and import export code) 

2. Declarer:

3. Declaration No.:………………… Date:……………………..

4. Method, level of customs inspection:

5. No. of Container/Consignment to be verified:

6. Signature and full name of the officer:

7. Adjustment of the Supervisor on method and level of inspection 

7.1. To Adjust                         7.1. Do not Adjust 

This consignment has undergo the customs procedures and shall:

 be cleared      temporary clear 

Guidelines:

- This order shall be issued to the declarer for presenting and submitting to the portal gate supervisor.

- Portal gate supervisor shall take this order after his approval for the exist of import goods or