tiểu luận group assignment report topic customs procedures in viet nam

with the Customs law.Sub-department of Chi cục Hải quanA unit under the Customs Departments of provinces, citiesand inter-provinces have the function for exported, imported, border-cross

FACULTY OF INTERNATIONAL BUSSUNESS

Da Nang, March 27 th ,2023

TABLE OF CONTENT

A OVERVIEW 1

B CONTENT 2

I Terms related to customs clearance: 2

II Comparison of traditional customs procedures and electronic customs procedures: 5

1 Similarities between Traditional Customs and E-Customs: 5

2 Differences between Traditional Customs and E-Customs: 5

a Registering Customs declaration: 5

b Inspection of goods: 6

c Checking, determining price and calculating taxes: 7

d Paying taxes and others: 8

e Rechecking and keeping documents: 8

III Advantages and limitations of e-customs [3]: 9

1 Advantages of electronic customs procedures: 9

2 Disadvantages of electronic customs procedures: 9

IV Electronic customs clearances process for exporting a specific goods: 10

1 Step 1: Declaration on electronic system-VNACCS [4]: 11

a Registering before using the system: 11

b Set up the system before declaring electronic customs procedures: 11

c Pre-declaration of Declaration Information (EDA): 12

d Formal registration of declaration with the Customs office (EDC): 15

2 Step 2: Selectivity of declaration form: [5] 15

3 Step 3: Inspection after selectivity: 16

4 Step 4: Completing files: 16

5 Step 5: Managing goods through the customs supervision area: 16

C CONCLUSION 17

D REFERENCE 18

TABLE OF FIGURE

Picture 1 General framework of electronic customs procedures 10

Picture 2 Business information registration 11

Picture 3 System menu 12

Picture 4 Set up VNACCS declaration parameters 12

Picture 5 Import and export declaration menu 12

Picture 6 Export declaration 13

Picture 7 Container information tab 14

Picture 8 List of goods tab 14

Picture 9 EDB and EDC menu 15

A OVERVIEW

In the era of economic integration, in order to survive and develop, each country cannot cower but needs to open up trade exchanges with many countries around the world and Vietnam is no exception Because of the economic development of the country, especially since Vietnam officially joined the World Trade Organization (WTO), Vietnam's economy has increasingly integrated deeply with the region and the

world

Over the years, Vietnam has achieved many positive results in international economic integration Along with efforts to reform the investment and business environment, Vietnam has gradually affirmed its position in the international arena and attracted investors It can be seen that the opening of the economy or in other words, the development of international trade and import and export has become an important driving force for economic growth, contributing significantly to maintaining the high annual growth rate of Vietnam's economy

Therefore, customs procedures in Vietnam are increasingly interested and focused, such as in addition to traditional customs procedures, electronic customs processes are also popularly developed In order to clarify and provide more useful information for readers, our team decided to conduct research on the topic "Customs clearance process

in Vietnam."

Group 4 – 47K01.4 – Customs procedures in Vietnam

B CONTENT

I Terms related to customs clearance:

TERMS

Letter of Credit

(thư tín dụng) A letter from a bank guaranteeing that a buyer’s payment

to a seller will be received on time and for the correct amount

Quality Inspection

(Kiểm tra chất lượng)

Activities such as measuring, examining, testing or sizing one, to determine conformity of each characteristic.Time chartering

(Hợp đồng thuê tàu

định hạn)

 Renting a ship for a period of time or for a specified trip voyage with or without the ship’s crew

 The charter pays hires, fuel, tugs, harbor duesCustoms formalities

(Thủ tục hải quan) All the operations which must be carried out by the persons concerned and by the Customs in order to comply

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with the Customs law.

Sub-department of

customs

(Chi cục Hải quan)

A unit under the Customs Departments of provinces, citiesand inter-provinces have the function for exported, imported, border-crossed, transited goods, and means of transport on exit, entry and in transit

Customs duties

(Thuế quan)

Duties laid down in the Customs tariff to which goods are liable on entering or leaving the Customs territoryLiquidate the customs

 Red - … and take the cargo to the customs inspection place

Selectivity of customs

declaration form

(Phân luồng tờ khai)

A procedure and form to help Vietnam Customs in supervising, inspecting and managing goods in and out of Vietnam

 Green channel: Applicable to businesses that comply with the provisions of the law on customs These enterprises will be exempted from detailed inspection of records and from physical inspection

Bill of Lading

(Vận đơn)

A legal document issued by a carrier (transportation company) to a shipper that details the type, quantity, and destination of the goods being carried

Customs Declaration

Form

(Tờ khai hải quan)

An official document that lists and gives details of goods that are being imported or exported

(Chứng nhận Halal) A document that guarantees that products and services marketed towards Muslim populations meet the

requirements of Islamic law

Mate’s Receipt

(Biên lai thuyền phó)

A temporary receipt issued and signed by the officer of a vessel, to acknowledge the goods ready to be loaded on a ship

(Thỏa thuận lưu

toán nhận hàng với tàu)

A document certifying the quantity of goods delivered andreceived between the ship and the port after completing the unloading from the ship

COR

(Cargo outturn

report-Giấy chứng nhận hàng

hư hỏng đổ vỡ)

A report by a discharging terminal to record discrepancies

in the form of damaged cargo as manifested, at a time and place of discharge from ship

A report by a discharging terminal to record discrepancies

in the form of over, short as manifested, at a time and place of discharge from ship

1 Similarities between Traditional Customs and E-Customs:

Both Traditional Customs and E-Customs aim to facilitate international trade,ensure compliance with national and international trade laws, regulations, policiesthrough audits, inspections, and penalties for non-compliance They are alsoresponsible for collecting customs duties, taxes, and fees on exported goods as well asmaintaining border security by preventing the entry or exit of prohibited goods, such

asentry or exit of prohibited goods, such as weapons, drugs, hazardous materials,counterfeit products Customs valuation methods are used to determine the value ofgoods for customs purposes Besides, two types of customs require properdocumentation and record-keeping of goods being exported including submission ofrelevant forms, licenses, permits, and certificates to facilitate clearance and ensurecompliance with trade regulations

2 Differences between Traditional Customs and E-Customs:

a Registering Customs declaration:

Customs[ CITATION Tra \l 1066 ]

E-Customs[ CITATION Ecu23 \l 1066 ]

Documents Paper records Electronic records

Particularly in the yellow-channel and red-channel, enterprises must submit and present additional paper records

in addition to the electronic records sent through the system

How to declare Enterprises bring a set of

paper records to the Customs Department of the Border Gate and submit directly to the Customs Office when registering the declaration

Enterprises enter information on computersand send it to Customs Office through the Internet

Information has already been stored on the system

of the enterprises and sent

to the Customs Office

After that, the officers receive the printing orders, the level of inspection from the system and the department leader decidesthe form and level of inspection rate

The officers receive the proposal to channel and the leaders of clearance team or the department approve the channeling

on the system

b Inspection of goods:

Responsible for goods

inspection

Carried out by the procedure team at the border gate customs department (where the import and export goodsare located)

Electronic customs Department does not check as other border-gate customs departments

Writing the inspection

results

The inspection results are recorded directly in the declaration by the inspecting officer

The test results are entered by the inspecting officers and printed from the system

Customs clearance of

goods

The captain of the procedure team signs and approves the customs clearance on the paper declaration

After the goods have been checked and have passed the inspection step, the customs department leader approves the clearance

on the system

c Checking, determining price and calculating taxes:

Checking, determining

price

The cargo clearance team carries out after the goods have been inspected

The post-customs inspection team determines the tax price following the new pricing process: yellow channel goods, the red channel goods made before the clearance andthe green channel goods

are made after the goodsare cleared.

Checking taxes The declaration must go

through the tax calculation inspection stage

The enterprise is declared, self-responsible for declaring information

self-by using a self-checkingsystem for tax calculation

Announcing taxes Customs officers issue

tax notices and tax adjustment decisions when enterprises register tax declarations and calculate tax

Tax notices are sent with the feedback to the enterprises when approving for the selectivity of customs declaration form

d Paying taxes and others:

Paying fee Pay by cash or transfer

according to each declaration at the place of procedures before the customs clearance of goods The customs officer must write a fee payment receipt for each declaration

Pay monthly from 5th to10th at the Treasury according to the customsoffice's fee notice sent over the Internet

Paying taxes and

other receivables

Pay through the Treasury

or directly at the border gate customs department

or by the bank’s guarantee

Pay through the Treasury or bank guarantee on the principle that customs declarations are self-declared and self-submitted

e Rechecking and keeping documents:

Rechecking documents Exercised by the tax

accounting and files review team after the goods are cleared

By the post-customs inspection team, after the goods are cleared

Keeping documents The set of documents

(copy) when the procedures are completed, the customs authority will save all files, only returning the original declaration and dossier The dossier is kept by the tax account and file review team

Customs deparments only save the set of records attached to the declaration for yellow and red-channel goods For green-channel goods: the customs office only saves one declaration, enterprises save one with the set of records and only present

it when required by the customs office Records are saved by after customs clearance team

III Advantages and limitations of e-customs [ CITATION Com \l 1066 ]:

1 Advantages of electronic customs procedures:

Time savings:

Completing customs procedures electronically will save a significant amount of time,transportation costs, etc Businesses save time traveling to customs offices and do nothave to spend time printing documents, they can simply complete the process online Accuracy and information security:

Using electronic customs procedures reduces the need to repeat tasks, limits errors inchanging or deleting information as required by traditional customs procedures

Electronic customs procedures will be stored by customs authorities, helping to ensureabsolute security of information.

Convenient for users:

Users do not have to depend on administrative working hours, weather or geography,they can use it online according to their work needs Completing procedures quicklywill become simpler and more flexible

2 Disadvantages of electronic customs procedures:

Risks of system errors:

If there is a problem with the user's electronic customs declaration system, the usermust inform Customs by registered letter or email to coordinate the resolution of theissue At the same time, to ensure timely completion of customs procedures, users cancomplete customs procedures manually at the request of customs

Lack of system usage training:

Lack of experience in electronic customs declaration can lead to confusion,misunderstanding of some procedures or documents

Misuse of electronic customs procedures:

Businesses may take advantage of online declaration for tax evasion purposes, causingloss of state budget revenue

IV Electronic customs clearances process for exporting a specific goods: Assumption: Exporting 1000 tons Round Grain Rice - Japonica from Vietnam to

China by sea

Picture 1 General framework of electronic customs procedures

: Yellow channel goods: Green channel goods : Red channel goods

Customs declaration documents and necessary certificates when exporting rice:

 Export customs declaration

Requirements for participation in electronic customs procedures

 Procedures for registration of the VNACCS system with Customs authorities

 Computer with internet connection when transmitting data to Customs.

 Have a digital signature and VNACCS declaration account

 Operating system Windows XP Server Pack 1 or later

1 Step 1: Declaration on electronic system-VNACCS [ CITATION Tru \l

1066 ]:

a Registering before using the system:

Picture 2 Business information registrationThe system will ask you to register business information, enter the complete andaccurate information, then press the "Agree" button to complete

b Set up the system before declaring electronic customs procedures:

Before proceeding with the declaration, you need to set up the necessary parameters toconnect to the Customs system

You access the function from the menu "System/Set up VNACCS declarationparameters"

Picture 3 System menu

Enter all the information about the declared account: User code, Password, Terminal

ID, Terminal access key,…

Picture 4 Set up VNACCS declaration parameters

c Pre-declaration of Declaration Information (EDA):

Access the menu "Import and export declaration/ New registration of exportdeclaration (EDA)"

Picture 5 Import and export declaration menuEnter details of each line according to the full criteria of VNACCS

Picture 6 Export declaration

You enter the criteria of the row line one by one according to the data instructions Note that the "Tax rate" box and the "Taxable value" box usually do not have to be entered by the declarant, but the system will automatically return the same as the explanation when entering according to the line list above.

 At the tab "General Information"

In the type code box, rice goods will fall under section B11- ordinary exports.

In the Processor Code box: Enter the name of the Sub-department of customs that you

will send the declaration

In the box "Shipping method code": Select the code suitable for the form of cargo

transportation such as sea, railway, air In this case is the sea shipping method, select

"03 - sea freight (bulk cargo, liquid, )"

In the information boxes of exporters and importers, enter the correct information

according to the criteria on the declaration

 At the tab "Container Information"

Enter information about the loading location and container list, an export declarationcan enter up to 50 different container numbers