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

GROUP ASSIGNMENT REPORT

TOPIC: CUSTOMS PROCEDURES IN VIET NAM

Lecturer : Nguyễn Thị Phương Thảo

Name of members : Lê Nguyễn Phương Nhi

Nguyễn Thị Ly NaÔn Nguyễn Kiều OanhNguyễn Thị Minh TâmPhạm Thị Hoàng Vy

Da Nang, March 27th,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 countrycannot cower but needs to open up trade exchanges with many countries around theworld and Vietnam is no exception Because of the economic development of thecountry, 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 economicintegration Along with efforts to reform the investment and business environment,Vietnam has gradually affirmed its position in the international arena and attractedinvestors It can be seen that the opening of the economy or in other words, thedevelopment of international trade and import and export has become an importantdriving force for economic growth, contributing significantly to maintaining the highannual 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 arealso popularly developed In order to clarify and provide more useful information forreaders, our team decided to conduct research on the topic "Customs clearance processin Vietnam."

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

B CONTENT

I.Terms related to customs clearance:

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.

Acceptable letter of credit

(LC chấp nhận nợ)

If you want to perform the drawing of drafts - ask the Open bank to sign receipt - and then deliver the documents to the Open bank, the exporter can change to another type of L/C which is Acceptance L/C

Irrevocable L/C(L/C không thể hủy ngang)

An Irrevocable Letter of Credit is one which cannot be canceled or amended without the consent of all parties concerned.

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

(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

declaration form(Thanh lý tờ khai hải quan)

 Green – email the customs declaration form to the relevant Sub-department of Customs

 Yellow – submit the documents and customs declaration form for inspection and stamp, submit the stamped customs declaration form to the customs officers in charge for liquidation Red - … and take the cargo to the customs

inspection placeSelectivity 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 of goods.

 Yellow channel: Customs will waive physical inspection of goods, but check details of records. Red channel: Customs checks the details of the

documents and conducts detailed checks of the goods with different levels of physical inspection of the shipment.

Post-clearance inspection (Kiểm tra sau thông quan)

A structured examination, after Customs has released the cargo, of the relevant commercial data, sales contracts, financial and non-financial records, physical stock and other assets of traders to measure and improve the traders’compliance.

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.

Beneficiaries Certificate (Giấy chứng nhận người thụ hưởng)

A statement from the beneficiary or exporter to specify thecondition of the goods or shipment that are requested by the buyer or importer for customs purpose.

Letter of indemnity (Giấy bảo lãnh/ Thư bồi thường)

A legally binding document that guarantees that certain conditions will be met in an agreement between two parties.

Customs Declaration Form

(Tờ khai hải quan)

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

Certificate of quality (Giấy chứng nhận chất lượng)

A document issued by the seller confirming the quality of the goods in accordance with the contract.

Sanitary Certificate(Giấy chứng thực vệ sinh)

A certificate that confirms the facility and/or cargo has been inspected and meets the minimum sanitary requirements.

Veterinary Certificate(Chứng nhận kiểm kiểm dịch động vật)

A document certifying that the identified animals have been inspected and were found to satisfy the regulations pertaining to their trading.

Phytosanitary Certificate (Chứng nhận kiểm dịch thực vật)

An inspection to show that a particular shipment has been treated to be free from harmful pests and plant diseases.

Fumigation Certificate(Chứng nhận hun trùng)

A document that validates that all boxes or shipment containers have been chemically disinfected.Halal Certificate

(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.

Cargo Manifest(Bản khai lược hàng hóa)

A listing of the goods comprising the cargo (freight) carried by a means of transport.

Booking note A contract for the reservation of space on board a carrier's

(Thỏa thuận lưu khoang)

(Report on receipt of cargo-Biên bản kết 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.

(Cargo outturn Giấy chứng nhận hàng hư hỏng đổ vỡ)

report-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.

CSC(Certificate of shortlanded cargo-Chứng nhận thiếu hàng)

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.

Tally Sheet

(Phiếu kiểm đếm hàng hóa)

A sheet for checking, counting, or scoring, as of cargo loaded or unloaded.

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

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, suchasentry 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[ CITATIONEcu23 \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

Entering information into the system

The officers receive records of data and enter directly or from floppy disks provided by enterprises into the system, or online declaration.

Information has already been stored on the systemof the enterprises and sentto the Customs Office.

Selectivity of customs declaration form

The leader of the procedure team will classify declarations and decide the inspection rate 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, determiningprice

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 gothrough the tax calculation inspection stage.

The enterprise is declared, self-responsible for declaring information by using a self-checkingsystem for tax calculation.

self-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 presentit 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.