comparison of customs procedures customs inspection and supervision fo trading in goods temporarily imported for re export and goods traded in transit

Question 1: Comparison of customs procedures, customs inspection and supervision fotrading in goods temporarily imported for re-export and goods traded in transitBusiness of temporary im

Question 1: Comparison of customs procedures, customs inspection and supervision fotrading in goods temporarily imported for re-export and goods traded in transit

Business of temporary import for re-export is when a trader buys goods from one countryand brings them into Vietnam's territory or from a separate customs area to the inland ansells the same goods to another country or customs area

Transshipment of goods is the purchase of goods from a country or territory for sale to acountry or territory outside the territory of Vietnam

*Alike:

- are performed on the basis of two separate contracts: the purchase contract and the sacontract signed by the enterprise with the foreign trader, regardless of which contract issigned first

- All are subject to inspection and supervision by customs authorities from the time they are brought into Vietnam until they are brought out (re-exported) from the Vietnamese territory

- All must apply for a business license for goods banned from export or import; goods temporarily suspended from export or import; goods not yet allowed to be circulated or used in Vietnam; goods subject to management by the measure of export quota or imporquota, except for automatic export license imported to the importing country, not through Vietnam's border gate)

*Different

Criteria Business goods temporari

imported for re-export

Transshipment business goodsLegal basis Section 1, Circular 25/VBHN

There are import and expo

procedures at the border gate

• To enter the territory of

clearance Carry out customs procedures prescribed in Article 82 o

Circular 25/VBHN-BTC

+ temporary import: type cod

G11

+ re-export: model code G21

+ Transporting not througVietnam's border gates: nformalities required

+ If it is brought into the warehousarea of Vietnam's seaports: Carry ocustoms procedures as Clause Article 89 of Circular 25/VBHN-BTC

+ Having passed through Vietnamborder gates, brought into bondwarehouses, transshipment are

Carry out customs procedures prescribed for goods brought inbonded warehouses

Goods

import-export border

gate

The import border gate may b

different from the export borde

gate which must be declared fir

on the import declaration

• Must be brought out oVietnam by the main import

• Export through the border ga

is different from that of imporbut in the same system seaport areas under thsupervision of the CustomDepartment

Goods temporarily imported fo

re-export can only go throug

international border gates o

main border gates as prescrib

by law

It is not necessary to go througinternational border gates or maborder gates

Term of stay

in Vietnam

+ goods temporarily importe

for re-export with conditions: no

more than 45 days, extend

once for no more than 15 days

+ regular goods: 60 day

maximum 2 extensions, eac

time no more than 30 days

Within 30 days after completing threceipt, inspection of customdocuments or physical inspection goods

+ It is not allowed to split

containers during the

transportation process, if s

there must be a written reque

and certified by the Custom

Sub-department where the goo

are stored

+ Goods while being transferre

to containers or other means

transport must be subject

to regulations

Question 2: Compare customs procedures, customs inspection and supervision for the typ

of processing goods for foreign traders of export processing enterprises and non-exporprocessing enterprises

Export processing enterprise is an enterprise specializing in the production of goods forexport, providing services for the production of exports and export activities, establishedand operating under the Government's regulations on export processing enterprises

Outsourcing goods for foreign traders is the work of Vietnamese traders, including thosewith foreign investment capital, is the work of foreign traders The outsourcing party is a foreign trader

+ Rented or borrowed machinery for processing contracts: all customs procedurescan be carried out according to the type of temporary import for re-export, type code: (temporary import: G13, re-export: G23)

+ All must make and submit normative reports on the situation of raw materials and supplies, and at the same time make and submit the final settlement report on thesituation of import, export and inventory of raw materials for processing and production of exported goods

+ All must complete the implementation of procedures for handling excess raw materials, supplies, scraps, discarded products, rented, borrowed machinery andequipment and processed products in accordance with regulations within 30 daysfrom the date of delivery the date the processing contract ends or expires

Transshipment enterprises Enterprises that ar

not border-transporenterprises

Export to other country

-Transfer materials, supplies, machinery a

equipment borrowed from the ordering pa

to another processing contract with or w

the receiving or ordering partner within th

contract performance price or when t

contract is concluded to expire, to expire

Carry out the samprocedures as expoand return abroadType code:

Materials andsupplies: B13Machinery andequipment G23-Follow the export andimport procedures inplace

Type code+ Materials: E54+ Machinery andequipment G23Gifting, buying and

selling in Vietnam market

Buyers and donors are otherorganizations or individuals in Vietnam

Follow import andexport procedures iplace

Type code+ gift: H11+ Buy A11The buyer, the

giftee is theprocessing party

Carry out theprocedure to changthe purpose of useType code A42Destroyed in Vietnam Send in writing the

plan for preliminarydestruction ordestruction, clearlystating the form

transferring border

Enterprises that arnot border-transporenterprises

Import raw

materials

For imported raw

materials and supplie

provided by the ordering

party or appointing a

third party to send to the

processing party

Follow customsprocedures forimported goodsModel Number:

E11

Follow customsprocedures foimported goods withtype codes

Follow the form of import and export onthe spot

E21Produced or purchase

by the receiving party in

the Vietnamese market

Customs procedures mus

be carried out incase of purchas

in VietnamE15

+ No customsclearance required+ In case of buying

processing companies, enterprises in nontariff zones must carry

out customsprocedures

E21Imported according to

the type of import,

manufacture and expo

before signing the

processing contract

Import customsclearance must bdone on the spotE15

Import customsclearance must bdone on the spotE21

On-site import andexport procedures E5

Follow the form of export and import onthe spot

E52

Question 3: Compare customs procedures, customs inspection and supervision foluggage of customers on exit and entry and for gifts

- Alike

• They are all goods subject to tax-free quotas

• All are subject to customs supervision

• Types of export and import for non-commercial purposes

Criteria Baggage of goods on entry and ex Giveaways

Concept Luggage is a necessary item for da

life or trip purposes of people on ex

or entry, including carry-on luggage

luggage before or after the trip

Gifts and gifts are articles angoods sent by domestic anforeign organizations anindividuals to each othethrough export and imporactivities

Characteristic is a necessary item for living or th

purpose of the trip that meets t

following conditions:

+ Not on the list of goods banne

from export or import

+ is on the list of items allowe

under baggage standards

+ cannot be used to exchange a

+ Diversity of goods typesquality, quantity, value+ Subjects participating inreceiving and sending gifts avery diverse

Legal basis • Customs Law 2014

Declare In case there is no baggage to be s

first, sent later, luggage that does n

exceed the tax-free quota: N

customs declaration is require

Customs authorities may require o

or written declarations

Must declare in the declaration if th

luggage exceeds the tax-free lim

there is baggage sent before or af

the trip

Customs declaration must bmade on the customdeclaration and othedocuments in the customdossier

Check + The customs authority uses

double-channel system (Gree

channel and Red channel)

• Green stream: no check

• Red stream: check customdocuments and physicagoods via scanner or check hand if necessary

+ Must be subject to detaileinspection of documents anphysical goods, comparing thnumber of times of receivinand sending tax-free+ After the customs officereceives and examines thdossier, conducts physicainspection of goods, determinethe tax-free value, collects taxand fees

Tax-free quota According to clauses 1, 2 and

Bottled with no more than 1 liter, th

whole bottle is exempt from tax

• Gift value < 2,000,000VND free, > 2,000,000VND not more than 4times/year

• according to Appendix

IV of this Decree, not

10,000,000 and noexceeding 4 times/year

Customs

records

+ Customs declaration

+ Export license, import license

+ A copy of the import and expo

license issued by the Ministry o

Specialized Management

+ ID documents

+ Customs declaration+ ID documents+BL

+Packing list+ Power of attorney+ Export license, import licens+ A copy of the import andexport license issued by thMinistry of SpecializedManagement

Question 4: Gifts and moving property

• alike

• They are all goods subject to tax exemption with quotas and are tangible products

• Is a type of goods imported or exported for non-commercial purposes

• They are all subject to detailed inspection of documents and physical inspection of goods, as well as the comparison of the number of times they are received and sent for duty-free according to regulations to implement tax exemption The form and level of inspection shall be decided by the leaders of the Customs Sub-department

• are entitled to the same tax exemption procedures

• Customs procedures are carried out through steps

+ Check details of documents and check the actual goods

+ Import-Export Tax Law 2016

+Circular 38/2015 and Circular 29/2018

+ Decree 134/2016/ND-CP

+ Decree 18/2021/ND-CP

• Different

define are items and goods sent by

domestic and foreign

are utensils and items in service of living and working of individuals or

organizations and individuals

to each other through import

and export activities

organizations that can be brought wthem when they cease to reside or terminate their activities in Vietnam

or abroad

Characteristic As products or goods wit

specific physical forms, whe

sending gifts to each othe

they must be done throug

export and import activities

are tangible goods and articles owne

by organizations or individuals with movable assets

Commodities diverse in all eyes Usually used and common itemsParticipant very diverse Individuals and organizations are

allowed to bring them when they cease to reside or terminate their activities in Vietnam or abroadcustoms

+ A copy of the import and

export license issued by th

of use purpose and proof of tax payment for taxable goods tax free rate prescribed in Clause 2, Artic

a case-by-case basis

10,000,000 and noexceeding 4 times/yeaQuestion 5: Compare customs procedures, customs inspection and supervision ogoods sent via postal service and goods sent via express service

Export and import goods sent via postal service are goods allowed to be brought outand brought into Vietnam's customs territory through the receipt, delivery and transportation of international parcels, postal items, and mailing bags postal serviceproviders

Export and import goods sent via express delivery service are goods that are allowed

to be brought in and out of Vietnam's customs territory through the delivery and transportation of goods by the delivery service provider fast implementation

* Alike

• Goods are diverse, rich in type, quality, value, design and origin, diverse in recipients, senders, diverse in volume and value

• All must go through customs procedures, customs inspection and supervision

• Legal basis of Circular 38/2015/TT-BTC, 39/2018/TT-BTC, Customs Law 2014, Circular 56/2015/TT-BTC amending Circular 191/2015/TT-BTC and Circular 49/2015/TT-BTC

• Includes both commercial and non-commercial imports and exports

• To be brought into and out of Vietnam's customs territory through receiving, sending and transporting goods performed by service providers

• Tax exemption regulations in Article 29 of Decree 18/2011/ND CP

• Electronic or paper declaration method

* Different

Delivery time for import

and export goods

Slow + unknown Short, published in advanc

for each subject, each regioCost of delivery of import

and export goods

Policy on management o

import and export goods

Changes from time to timeeach specific contenreceived and sent, manhighly sensitive items

Some special rules apply

Main goods Non-commercial (becaus

it is not related to theinterests of the busines

Trade (e.g raw materials foexport production anprocessing)

because slow delivery okay)

Shipping procedure More complex Simpler

Mode of freight Usually cars, motorbikes

trains

Usually an aircraft thacombines multiple modes otransport

Right to complain,

guarantee delivery servic

Not included Always included

The declarer The goods owner'

enterprise or the persoauthorized by the goodowner, the customclearance agent

Courier enterprises, goodowners, persons authorize

by goods owners, persoproviding transit servicescustoms agents other thexpress delivery servicesCustoms records • For export

consignments include:

+ Customs declaration+ Export license (if any)+ Notice of exemption frominspection or inspectioresults from the Customoffice

+ Certificate of registration

of export and import right

of foreign traders oinvestment certificatecertifying that foreign-invested enterprises aallowed to do business

• For imported consignments include:

+ Customs declaration+ Commercial invoice

• For exported orimported goods whichare documents anvouchers that have ncommercial value: + Commodity manifest+ Declaration of documentand vouchers of ncommercial value accordin

to the prescribed form

• For imported goodsthat are exempt fromtax without quotaexported with a value

of less than 5 millionVietnam dong + Declaration of low-valueimported and exported goodBill of lading (if any)+ Commercial invoice (ifany)

+ Bill of lading or packagenumber, package of good

or list of packages anpackages of goods+ Import license (if any)inspection exemptionnotice or inspection results+ Customs valuedeclaration (if any)+ Declaration of aidconfirmation (if any)+ Notice or decision oagreement to donate thpostal unit

+ Certificate of origin ofgoods

+ Certificate of registration

of import and export right

of foreign traders oinvestment certificatecertifying that foreign-invested enterprises aallowed to do business

Special cases of custom

procedures Customs procedures fopostal units of import an

export goods moving fromborder gate to border gate

+ Customs procedures fointernational stray goodsimport and export goods thcannot be delivered trecipients

+ Customs procedures fotransported goods anpackaged goods undcustoms supervisionCustoms

- Receiving and checkindossiers; compare thdeclared contents

- Failing to carry out physicainspection of goods, in casthere are signs of violation othe customs law, the Directo

of the Sub-department shadecide to inspect goods bscanning machine at the ra

of not more than 5% of thtotal number of goods in th