What's Customs Clearance Means? Detailed Commodity Notification Process

1. What’s customs clearance means?

In the 2014 Customs Law, Clause 1, Article 4 has the definition: "Customs clearance means that businesses must complete customs procedures for the purpose of allowing shipments to be imported or exported or in customs management mode." Based on the definition of customs clearance means above, businesses operating in the logistics industry that want to trade internationally are required to carry out administrative procedures for customs clearance.

Customs clearance means is an administrative procedure that businesses are required to carry out when conducting international transactions on the import and export of goods and vehicles. This is to support management agencies with information and ensure that goods are imported and exported legally.

2. Why is it necessary to clear goods?

Customs clearance procedures require documents to manage information and control goods entering and leaving a country. Customs clearance of goods must be carried out in the country where the goods are imported or exported. Therefore, all types of goods when importing and exporting need to be declared according to administrative procedures and regulations.Persons carrying out customs declaration procedures include: vehicle drivers; owners of means of transport; customs clearance agents; goods owners; and the person authorized by the shipment owner or authorized vehicle owner to carry out customs declaration steps according to regulations.

Customs clearance must be completed before the shipment is allowed to be imported into the Vietnamese market. When carrying out customs clearance procedures for goods, customs declarants need to prepare in advance a set of declaration documents according to regulations to submit to the customs authority. Documents in the customs dossier set are specified to include the following items:

• Bill of lading;
• Commercial invoice/commercial e-invoice (commercial invoice/e-commerce invoice);
• Sale contract (commercial contract);
• Catalog;
• C/O certificate of origin of goods (if any);
• Packing list (list of packing goods);
• Written notification of inspection results or exemption from specialized inspection for the shipment;
• License to export and import goods (for conditional import and export goods);
• Customs declaration;
• And other related documents.

>>>> CLICK FOR MORE INFO: Specialized inspection procedures for imported and exported goods [New]

3. Conditions for customs clearance of goods

In addition to understanding what customs clearancemeans, businesses also need to clearly understand the conditions for goods to be cleared. Depending on each product, there are different, specific conditions for customs clearance. When clearing customs for shipments to and from other countries, businesses need to pay attention to the following issues:

3.1 Subjects allowed to clear goods through customs

The subject of customs clearance procedures will be applied to means of transport and goods. Accordingly, this condition will not apply to human subjects.

• For goods: Customs-cleared goods must not appear in the list of goods banned from export or import. Those are the types of goods regulated by our country's law. In addition, each type of good must comply with certain requirements regarding design, type, and quantity.
• For vehicles transporting goods: vehicles that want to enter, exit, or transit must comply with the previous regulations in the vehicle customs dossier. The dossier will clearly state items such as the types of vehicles used (cars, ships, airplanes, trains, and other types of vehicles) by temporary import-export-re-export organizations. Imports, agencies, organizations, and individuals are not intended for commercial purposes.

Therefore, the enterprise's goods and means of transport will be cleared through customs when they fully meet the conditions prescribed in the law. These conditions will include related documents and accompanying invoices.

3.2 Customs clearance procedures must be guaranteed

Customs clearance procedures must be carried out correctly and completely so that vehicles and goods can be cleared quickly. It is understood that the steps and procedures for customs clearance must be done precisely and sequentially, ensuring compliance with regulations, and must not be changed. Customs clearance procedures must comply with the principles promulgated by law.

Enterprises need to assign and arrange people responsible for conducting customs clearance procedures and performing customs-related operations. This position needs people who are knowledgeable about the logistics field, have good professional knowledge, and are always updated on the market and regulations. From there, we ensure that the customs clearance process takes place legally and quickly.

4. Cases where goods are cleared through customs

In the Customs Law, in addition to defining what customs clearance is, it also clearly stipulates the cases in which goods are cleared. According to Article 37 of the Customs Law combined with Article 34 of Circular No. 38/2015/TT-BTC, customs clearance goods will fall into the following cases:

• Goods are cleared after completing customs clearance according to legal regulations.
• Import and export goods that have not yet paid tax, if they are waiting for tax exemption or exemption procedures, or if tax is not collected, will be cleared from customs in the following cases:
  • Goods serving security and national defense purposes must pay full environmental protection tax, special consumption tax, and other taxes according to regulations (if any).
  • Goods for disease prevention, natural disasters, and emergency relief purposes; non-refundable aid and humanitarian aid must pay all relevant taxes according to law in the case of taxable goods.
  • Goods are classified as paid with state budget capital, with confirmation from a competent authority of the unpaid tax amount from the state budget.
• The customs dossier was missing documents as prescribed, but the Director of the Customs Branch agreed to extend the time for submitting the original, as stipulated in Clause 3 and Article 27 of Decree No. 08/2015/ND-CP.
• When fulfilling tax payment obligations, items subject to specialized inspection will be cleared when all the following documents are available:
  • The results of specialized goods inspection meet the requirements of imported goods managed by specialized inspection agencies.
  • Notice of goods exempt from inspection.
  • Conclusion of specialized management agencies or handling decisions of competent state agencies regarding goods allowed to be imported.
• Import and export goods are cleared through customs when determined:
  • The deadline for payment of export-import tax is determined based on the instructions in Article 42 of Circular 38/2015/TT-BTC and Clause 11 of Article 1 of the Law amending and supplementing a number of Articles of the Law on Tax Administration.
  • Enterprises must pay tax before customs clearance of goods but have not yet paid or have not paid the correct and full tax amount. However, the credit institution still guarantees the tax amount payable.

5. What is the customs clearance process?

5.1 Step 1: Prepare the full certificate.

If you have learned in detail what the concept of customs clearance means is, businesses need to clearly understand the goods clearance processes to follow them in the correct order. The steps in the process are as follows:

5.2 Step 2: Registration and customs processing

After preparing the customs clearance documents, each country will have its own regulations on registration. After the system receives the registration, it will send the routing results for the shipment. Next, businesses need to print the declaration and submit the import dossier to the customs department to open the declaration. Regulations on classifying declarations will be divided into three categories: red, green, and yellow. After streamlining, there will be further regulations for each step of opening the declaration, as follows:

• Green Stream: If the displayed result is a green stream, the business only needs to print the declaration and go to liquidation.

• Gold Stream: If the registration results are gold stream, the business's records need to be assessed and confirmed by the competent authority. After the dossier is checked and assessed, the customs authority returns it and requests additional related papers and documents, meaning that the dossier is invalid. At that time, businesses need to urgently supplement and complete all documents to serve as a basis for customs to register goods for customs clearance.

When the documents are fully supplemented and there are no errors, customs will register the shipment information on the system and proceed with customs clearance. If the dossier still has many doubts, the customs clearance status will be changed to the red channel and transferred to the inspection department.

• Red Flow: The forwarding staff will check on the electronic system of the customs authority in case the shipment declaration is transferred to the red flow. Displayed inspection information includes the inspection officer's name, phone number, or other related information.

Once the information is available, the delivery staff contacts and coordinates with the inspection officer to verify the documents again. The inspection officer will enter the declaration information into the system and confirm that the goods have been cleared from customs in case there are any further errors or doubts.

In addition, customs officers will present it to superior leaders for advice and resolution if the order is not as declared. Each different shipment will have different handling methods.

5.3 Step 3: Check out after completion of the test

After checking, if there are no errors, the declaration will be cleared. In the next step, businesses need to pay taxes on the declaration to clear the order. Thus, your goods will be cleared after a full tax payment.

5.4 Step 4: Proceed with receiving the goods

This is the final step in the customs clearance process. The enterprise will liquidate the declaration and carry out additional procedures to receive the shipment. Currently, electronic liquidation is carried out in most customs systems. This step saves time, helps carry out processes with fast processing speed, and provides more convenience than traditional methods.

6. What charges do the freight inspectors need?

In order for goods to be cleared through customs, businesses need to pay fees, including:

• Fees and chargesImport 
• Tax

Normally, customs clearance costs are also included in the cost of goods. Therefore, taxes are also considered part of customs clearance costs for businesses. Businesses can refer to Fees and Charges as well as What is Customs Clearance Means Import Tax with the specific information below:

6.1 Fees and Fees

The collection of fees related to customs clearance of goods will be carried out by a third party (not the state, not the importing unit). Related costs include warehousing and storage services, customs clearance services, and vehicle use fees for goods inspection.

If the importing enterprise authorizes a customs agent or a relative to clear customs, this fee is not related to the state agency but will belong to the service fee. The amount of the service fee payment is not specified because it will depend on the negotiation between the authorizing party and the authorized party.

According to regulations, fees are receivables that are provided and managed by the state. The fee will be collected by the customs authority according to the provisions of the law. Currently, the fee for a customs clearance declaration, import-export, and border gate transfer will be 20,000 VND per sheet.

>>>> SEE MORE: Customs clearance fees, rates for import and export goods

6.2 Import Taxes

Import and export tax is one of the fees that must be paid for goods to be cleared through customs. Depending on each shipment and each item, import and export taxes will be different. Some types of taxes businesses must understand are:

• Import-export tax
• Environmental protection tax
• Import VAT
• The antidumping duty
• Self-defense tax;...

In Vietnam, businesses need to know the list of items that do not have to pay tax. Some types of goods that are transported for purposes such as aid, goods in transit, etc. will fall under the exception. Businesses do not need to take steps to pay import and export taxes.

7. What's the note when you're in consultation?

Many new businesses participating in the Vietnamese logistics market need to pay attention to the issues to note when clearing customs means. The following are essential things to remember when applying for customs clearance documents:

• The HS code of the item needs to be determined before import.
• Goods are cleared from customs only when the enterprise completes its obligation to pay import and export fees and taxes according to regulations.
• Enterprises need to know the list of imported goods that are subject to conditions or prohibited from import.
• Import goods from countries and territories where Vietnam has signed trade agreements. You should ask the seller to provide a CO certificate (certificate of origin) to enjoy special tax incentives.

8. List of customs clearance in Vietnam

According to Decision 1919/QD-BTC issued in 2016, it was decided to establish departments and branches in provinces and cities nationwide. Currently, the country has a total of 35 customs departments on duty. The list of branches is as follows:

• An Giang Province Customs Department
  • Customs branches at border gates: My Thoi Port, Tinh Bien, Vinh Xuong, Khanh Binh, Bac Dai, and Vinh Hoi Dong
  • Customs Control Team
  • Drug Prevention and Control Team
• Customs Department of Ba Ria-Vung Tau Province
  • Customs branches at border gates: Vung Tau port; Phu My port; Cai Mep port; Cat Lo port; Con Dao
  • Post-clearance Inspection Department
  • Customs Control Team
• Bac Ninh Province Customs Department
  • Customs Branch: Manages industrial parks in Bac Giang province, Bac Ninh, Tien Son inland port, and Thai Nguyen
  • Post-clearance Inspection Department
  • Customs Control Team
• Binh Duong Province Customs Department
  • Customs Branch: Song Than-Song Than industrial park; My Phuoc industrial park; management of import and export goods outside the industrial park; Viet Huong industrial park; Vietnam-Singapore industrial park; general port border gate Binh Duong
  • Post-clearance Inspection Department
  • Customs Control Team
• Binh Dinh Province Customs Department
  • Customs Branch: Quy Nhon port border gate, Phu Yen
  • Post-clearance Inspection Department
  • Customs Control Team
• Binh Phuoc Province Customs Department
  • Customs Branch: Hoa Lu international border gate; Hoang Dieu border gate; Chon Thanh
  • Customs Control Team
• Ca Mau Province Customs Department
  • Customs Branch: Nam Can-Hoa Trung port border gate
  • Customs Control Team
• Cao Bang Province Customs Department
  • Customs Branch: Ta Lung border gate; Tra Linh border gate; Soc Giang border gate; Po Peo border gate; Bi Ha border gate; Bac Kan
  • Customs Control Team
• Can Tho City Customs Department
  • Customs Branch: Tay Do, Can Tho Port Border Gate, Vinh Long, and Soc Trang Border Gate
  • Customs Control Team
  • Post-clearance Inspection Department
• Da Nang City Customs Department
  • Customs Branch: Da Nang International Airport Border Gate; Management of Investment and Processing Goods; Da Nang Port Border Gate; Da Nang Industrial Park; Hoa Khanh Industrial Park; Lien Chieu
  • Post-clearance Inspection Department
  • Drug Prevention and Control Team
  • Customs Control Team
• Dak Lak Province Customs Department
  • Customs Branch: Da Lat, Buon Ma Thuot, and Buprang Border Gate
  • Customs Control Team
• Dien Bien Province Customs Department
  • Customs Branch: Tay Trang international border gate; Ma Lu Thang border gate; Long Sap border gate; Chieng Khuong border gate; Son La
  • Customs Control Team
  • Drug Prevention and Control Team
• Dong Nai Province Customs Department
  • Customs Branch: Bien Hoa, Long Thanh, Nhon Trach, Long Binh Tan, Long Binh Export Processing Zone, Thong Nhat, Binh Thuan
  • Customs Control Team
  • Post-clearance Inspection Department
• Dong Thap Province Customs Department
  • Customs Branch: Dong Thap port border gate; Thuong Phuoc border gate; So Thuong; Dinh Ba border gate; Thong Binh
  • Customs Control Team
• Gia Lai Customs Department, Kon Tum
  • Customs Branch: Kon Tum, Bo Y international border gate, Le Thanh international border gate
  • Customs Control Team
• Ha Tinh Customs Department
  • Customs Branch: Cau Treo international border gate; Vung Ang port border gate; Xuan Hai port border gate; Hong Linh; Cau Treo border gate economic zone
  • Post-clearance Inspection Department
  • Drug Prevention and Control Team
  • Customs Control Team
• Ha Giang Customs Department
  • Customs Branch: Thanh Thuy international border gate; Xin Man border gate; Pho Bang border gate; Sam Pun border gate; Tuyen Quang
  • Customs Control Team
• Hanoi Customs Department
  • Customs Branch: North Hanoi, North Thang Long Industrial Park, Express Delivery, Goods Management Investment, Processing, Yen Vien, Gia Thuy International Railway Station, Noi Bai International Airport Border Gate, Ha West, Vinh Phuc, Phu Tho, Yen Bai, and Hoa Binh
  • Post-clearance Inspection Department
  • Drug Prevention and Control Team
  • Customs Control Team
• Hai Phong Customs Department
  • Customs Branch: Hai Phong port border gate area 1: Hai Phong port border gate area; 2: Hai Phong port border gate area 3: Dinh Vu port border gate; goods management investment; processing; export processing zone; and Hai Phong, Hung Yen, Hai Duong, and Thai Binh Industrial Park
  • Customs Control Team
  • Post-clearance Inspection Department
• City Customs Department, HCM
  • Customs Branch: Hiep Phuoc port border gate, express delivery Saigon port area 1 border gate, Saigon port area 2 border gate: Saigon port area 3 border gates: Saigon port area 4 border gates Tan Thuan export processing zone; Linh Trung export processing zone; investment goods management; processed goods management; Tan Cang border gate; Tan Son Nhat international airport border gate
  • Post-clearance Inspection Department
  • Drug Prevention and Control Team
  • Customs Control Team
• Ha Nam Ninh Customs Department
  • Customs Branch: Ninh Binh, Nam Dinh, and Ha Nam
  • Customs Control Team
• Kien Giang Customs Department
  • Customs Branch: Ha Tien international border gate; Hon Chong port border gate; Phu Quoc; Giang Thanh border gate
  • Drug Prevention and Control Team
  • Customs Control Team
• Khanh Hoa Customs Department
  • Customs Branch: Nha Trang-Van Phong port border gate; Cam Ranh port border gate; Ninh Thuan-Cam Ranh international airport border gate
  • Customs Control Team
• Lang Son Customs Department
  • Customs Branch: Huu Nghi border gate; Tan Thanh; Chi Ma border gate; Dong Dang international railway station; Coc Nam
  • Customs Control Team
  • Post-clearance Inspection Department
• Lao Cai Customs Department
  • Customs Branch: Muong Khuong-Bat Xat border gate-Lao Cai international railway station-Lao Cai border gate
  • Customs Control Team
  • Post-clearance Inspection Department
• Long An Customs Department
  • Customs Branch: Ben Luc, My Tho Port, Binh Hiep International Border Gate, My Quy Tay Border Gate, Hung Dien, and Duc Hoa
  • Customs Control Team
  • Post-clearance Inspection Department
• Nghe An Customs Department
  • Customs Branch: Cua Lo-Vinh Port Border Gate; Nam Can International Border Gate; Thanh Thuy Border Gate
  • Post-clearance Inspection Department
  • Drug Prevention and Control Team
  • Customs Control Team
• Quang Binh Customs Department
  • Customs Branch: Cha Lo border gate; Ca Roong border gate
  • Customs Control Team
  • Hon. La Port Border Gate Customs Branch
• Quang Nam Customs Department
  • Customs Branch: Dien Nam-Dien Ngoc Industrial Park; Nam Giang border gate; Ky Ha port border gate
  • Customs Control Team.
  • Post-clearance Inspection Department
• Quang Ninh Customs Department
  • Customs Branch: Bac Phong Sinh; Cam Pha port; Hoanh Mo border gate; Mong Cai border gate; Van Gia port border gate; Cai Lan port; Hon Gai port border gate
  • Customs Control Team No. 1
  • Customs Control Team No. 2
  • Drug Prevention and Control Team
  • Post-clearance Inspection Department
• Quang Ngai Customs Department
  • Customs Branch: Dung Quat port border gate, Quang Ngai industrial parks
  • Customs Control Team
  • Post-clearance Inspection Department
• Quang Tri Customs Department
  • Customs Branch: Lao Bao border gate; La Lay border gate; Lao Bao commercial area; Cua Viet port border gate
  • Customs Control Team
  • Post-clearance Inspection Department
  • Drug Prevention and Control Team
• Tay Ninh Customs Department
  • Customs Branch: Moc Bai border gate; Xa Mat border gate; Phuoc Tan; Ka Tum border gate; Trang Bang industrial park
  • Post-clearance Inspection Department
  • Drug Prevention and Control Team
  • Customs Control Team
• Thanh Hoa Customs Department
  • Customs Branch: Na Meo international border gate; Thanh Hoa port border gate; Nghi Son port border gate
  • Customs Control Team
  • Drug Prevention and Control Team
  • Post-clearance Inspection Department
• Thua Thien Hue Customs Department
  • Customs Branch: Thuy An-A Dot; Thuan An port border gate; Chan May port border gate
  • Customs Control Team

9. Some common questions

In the process of learning about the process and what to note when customs clearance means, businesses also have many other questions surrounding the issue of goods being cleared through customs. Some of the most frequently asked questions are:

9.1 What is a Shopee order approved for?

Shopee orders that have been cleared through customs are orders that have been checked at the border gate. Chemical goods have met all standard requirements and are being transported to Vietnam. After arriving at the Vietnamese border gate, the order will be delivered directly to the shop warehouse. Here, staff will perform the work of checking, classifying, and coordinating small local warehouses and communicating with buyers.

Shopee orders that have been cleared through customs are goods that have been inspected at the border gate.Alt: What is customs clearance?

9.2 What's a post-control check?

Customs authorities have the authority to re-inspect means of transport and imported and exported goods. They will check the reliability, reasonableness, and honesty after customs clearance by comparing the following customs clearance documents:

• Customs declaration documents
• Commercial documents related to goods
• Accounting documents related to commercial transaction activities
• Other relevant documents (if any)

Normally, shipments showing signs of violating customs laws on export or import will be immediately subject to post-customs clearance inspection. The purpose is for the state to immediately manage and prevent risky cases in the import and export of goods.

Customs clearance is one of the mandatory and important steps in managing trade transactions of goods and means of transport into and out of Vietnam. Therefore, businesses in the logistics market need to understand clearly what the concept of customs clearance means, the standard process, and pay attention to customs clearance conditions to properly and accurately comply with the provisions of Vietnamese law.

9.3 When will the order be received?

Normally, orders that have been cleared through customs will be transferred to local shipping units as soon as they are estimated. Each item and shipping unit will respond to different delivery times. Specific examples are:

• Location in Hanoi: When ordering on an e-commerce shopping site, the ability to receive the goods is very fast. For items ordered on Shopee, Lazada, or any other unit, the possibility of you receiving the goods early is very high. The average time to receive goods will be in the range of 02–04 days from the time the goods are cleared from customs (time will vary depending on the area where the goods are received).
• Other areas in the North: Average delivery time is 3–5 days.
• Areas in the Central and Southern Provinces: Delivery time is about 5–10 days. The longest time is up to 15 days if the delivery location is in the southern provinces. This time is longer than in other areas because cleared orders will be transported to the Hanoi general warehouse. After that, the goods are classified, arranged, and coordinated in the province's warehouse before being delivered to the buyer.

Normally, delivery times will be as expected. However, in some cases, it cannot be delivered on time due to the following objective reasons:

• Bad weather hinders the transportation process, such as floods, storms, tropical depressions, rain, wind,...
• In the event that the delivery time coincides with a holiday, the delivery cannot be performed as expected and will not be counted in the delivery time. In addition, if the delivery date coincides with a non-working day for the shipping unit, it is also considered a case due to objective reasons.
• In addition, due to the epidemic, policies in many countries, especially China, have been much tighter and more restrictive than before.

9.4 Where's the approved order?

If the goods are cleared through customs, your order is being shipped to Vietnam. If you place an order through the Shopee application or other shipping units, the order will be transferred to the Hanoi general warehouse after the goods arrive at the Vietnamese border gate.

Hanoi warehouse staff will check, classify, and coordinate goods according to the bill of lading code on each package. Next, the order will be transferred to the local shipping unit for delivery to the buyer.

 

9.5 When a customs clearance is being processed, is there any loss of goods?

When the status shows customs processing, the order will not be lost. In fact, this refers to the status displayed during the process of shipping orders from abroad to Vietnam. Therefore, buyers should rest assured and not have to worry about this.

9.6 Can the application be cancelled after notification?

The order that has been cleared is actually a type of goods that have been and are on their way to Vietnam. This means the order is in "delivery" status, the buyer cannot cancel the order, and the item cannot be returned to the place of sale at this time. Therefore, buyers cannot cancel orders when the status shows customs clearance.

Above are the definitions of Vietnamese law on what customs clearance means, as well as issues related to goods and means of transportation. Hopefully, the knowledge that Dolphin Sea Air provides will help businesses in the process of doing business and importing and exporting goods into and out of Vietnam. For further information, businesses can contact us via our hotline, 1900986813, or website for further guidance and advice!

• DOLPHIN SEA AIR SERVICES CORPORATION
• Hotline: 1900986813
• Email: saleshan6@dolphinseaair.com
• Fanpage Dolphin Sea Air Services Corp. - Logistics Company: https://www.facebook.com/dolphinseaairlogistics/

>>>> CONTINUE: 

• Can you amend an import declaration?  Takes place sixty days?
• A newly updated code of import and export types with instructions