Customs Procedures? The Most Detailed Methods, Techniques

1. What are customs procedures?

Customs procedures, also known as customs clearance processes, are the paperwork needed to be ready for examination by customs officials when importing or exporting products and transportation equipment into or out of a certain nation. Alternatively, it can be said that companies who wish to export their products must finish the export processes at that customs office in order for the products to be approved and shipped to other nations. 

The term "customs procedures" is frequently used in Vietnam to refer to the immigration legal procedures that take place at airports or international border gates. In actuality, though, this expression solely refers to commodities and modes of transportation used for import and export.

Border guards or security organizations will handle people's immigration formalities. Customs procedures for import and export of commodities are handled at the customs branch outside the border gate (for domestic ports) or at the border gate customs branch (for international ports).

2. Why do we need to do customs procedures?

In all nations and territories across the world, including Vietnam, import and export activities are contingent upon the completion of customs procedures. Customs clearance processes are implemented for two primary reasons:

• The government uses import/export procedures as the foundation for tax calculation and collection. This is also the procedure's fundamental and primary goal. because taxes are necessary on all imported commodities in order to maintain market stability and balance.
• The purpose of customs clearance procedures is to guarantee the security of imported goods by making sure they do not fall under any lists of forbidden or illicit commodities. For instance, no company is allowed to import stimulants, weapons, or ammo into Vietnam. Additionally, no person or group is permitted to export rare, wild, or ancient animals via authorized export routes.

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3. Who must go through customs clearance procedures?

As per the Government's Decree 08/2015/ND-CP, Article 5, the following subjects are required to finish the customs procedures:

• Companies and organizations offering assistance with customs clearance.
• Companies offering services for worldwide delivery, unless shippers specify otherwise.
• Proprietors of cargoes for import and export. Should the shipment's owner be a foreign trader, the processes will be carried out at an agent with expertise in customs clearance and procedures.
• Owners of vehicles in transit or at the point of entry/exit; those designated by the owner of the vehicle to handle the processes.
• People who have been given permission by the owner of the commodities, in the event that the products are gifts, gifts, or luggage that has been sent before or after the owner has left or entered the nation.
• Unit offering services for the passage of commodities. 

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4. 9 steps in the customs clearance process

When importing and exporting products, customs procedures are an obligatory process that needs to be completed. This procedure is now rapid and convenient because of recent innovations. The steps that are special to customs processes are as follows:

4.1. Identify the categories of import and export commodities

Businesses must identify the kind of commodities they import and export in order to determine which category the shipment falls into—is it included in the list of restricted, special, or prohibited goods? Specific categories of commodities are mentioned:

• Shipments classified as general commercial commodities are those that can be imported and easily pass customs inspection.
• Products that are forbidden: A business must refrain from importing shipments of goods if they are on the list of prohibited commodities in order to minimize legal risks. Companies are able to consult Decree 187/2013/ND-CP.
• Special items that need a permit: Decree 187/2013/ND-CP lays out exactly what kinds of commodities need a permit in order to be imported. As a result, companies must finish all legal requirements before shipping goods to the port. If not finished beforehand, it is possible to find yourself in a scenario where storage expenses increase while you wait for the license.
• Goods must declare compliance with regulations: Companies must finish the process of declaring compliance with regulations prior to goods arriving at the port. Circular 28/2012/TT-BKHCN outlines the announcement procedure.
• Products needing a specialist inspection Before the package reaches the port, officials collect samples to examine the contents. Businesses can move forward with the remaining procedures once the results are ready. 

4.2. Execute a contract for international trade

One kind of contract that depicts a deal between two parties involved is a foreign trade contract. All customs dossiers supporting the goods clearing process must include this contract. A foreign trade contract's contents might include a variety of information, such as the product name, amount, weight, price, and packaging.

4.3. Examine the product documentation

Businesses must compile a number of documentation before beginning the importation process, which includes:

• Sale Contract
• Bill of Landing
• Commercial Invoice
• C/O
• Packing List
• Additional pertinent papers

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4.4. Mandatory specialist product inspection

If the package that a business is shipping falls within the category of products that require inspection, then they must register for specialized inspection. Businesses must register for specialized inspection following receipt of the Arrival Notice. Usually, the shipping company gives you this kind of paperwork two days prior to the ship arriving at the port.

4.5. Register your customs declaration

Registering a customs declaration form Vietnam is synonymous with disclosing customs information when it comes to export/import customs procedures. The law specifies two procedures for registering customs declarations:

• An electronic customs declaration is filed online.
• Document registration and declaration for customs made in-person at customs offices.

Only if the customs authority has approved the customs declarant's declaration will the customs declaration be registered. If the customs declarant is refused, the customs authority will inform them in writing or electronically.

Customs clearance staff can submit the customs declaration and other papers in the customs dossier set on the VNACCS system, as well as declare information on import and export declarations, using the VNACC/VCIS software. 

4.6. Get delivery order

A delivery order is a written document that a shipping business issues. Businesses must prepare a collection of paperwork, such as the following documents, in order to receive a delivery order:

• A duplicate of the national identification card
• A duplicate bill of lading
• The company owner signs the initial bill of lading.
• Money for freight

Note: Businesses should confirm the duration of the free container storage period before shipping full containers. Businesses must fork up an extra renewal cost when the free storage time ends.

4.7. Compile customs paperwork and categorize declarations

The head of the agency processing the customs documents will determine whether to physically inspect the goods (stream 3) and check the customs documentation (stream 2) based on the information provided. The VNACCS/VCIS System is used by customs declarants to obtain feedback and categorization results. Specifically:

• Stream 1 - Green channel: The following information is recognized from the customs declaration: 

In this instance, the customs clearance agent may proceed to step 3 after clearing the items in accordance with the data in the customs declaration. 

• Stream 2 - Yellow Stream: Examine the customs documents' contents:

The completeness, accuracy, and correspondence between the declared content and the papers in the customs records will be examined by customs authorities while reviewing the records; Verify adherence to import/export tax laws, commodities management policies, and other pertinent legal requirements.

Either customs officials or the customs electronic data processing system review customs records. Steps for checking include: reviewing pertinent papers on the National One-Stop Information Portal; reviewing pertinent documents in customs dossiers supplied by the person handling export/import operations via the VNACCS/VCIS system; submitting documents requires originals in accordance with regulations. 

Proceed to step 3 in case the application satisfies the necessary requirements. The customs authority will move the declaration to Stream 3 for a physical inspection of the items in the event that the application is deemed suspicious or does not meet the necessary parameters.

• Stream 3 - Red Stream: Physically verify the merchandise

The following categories of goods are free from physical inspection:

• Necessities
• Goods pertaining to the defense and security industries
• Unique products as determined by the government.
• If any evidence of a legal infraction is found, the aforementioned products will need to be physically examined.

Products that are subject to physical inspection and are not exempt will be examined using risk management techniques. In this instance, items that are hard to keep, live animals and plants, and special goods are prioritized for examination first. Customs personnel do the inspection directly, or they use professional measures, machinery, and technical equipment.

The legal representative or customs declarant must be present when the goods are physically inspected. Goods may be subject to a physical inspection at a location shared with a neighboring nation.

The customs broker will simultaneously register and receive information regarding the kind and level of goods inspection informed by the customs authorities via the VNACCS/VCIS system, should the items require physical inspection. The location and timing of the real customs authority inspection. It is the duty of the person filing the customs declaration to set up the prerequisites for a physical examination of the goods in question. 

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4.8. Pay taxes and fees in compliance with the law 

In the course of export/import customs operations, enterprises encounter two scenarios:

• The system will automatically provide customs clearance and issue a "Decision to clear goods" to the declarant in the event of a tax exemption.
  • If there is tax to be paid: If you have used a cap or guarantee when declaring and paying taxes, The declaration requirements pertaining to the guarantee and limit will be verified by the system. A "document recording tax receivable" and a "Decision to clear goods" will be issued by the system if the amount within the limit or guarantee exceeds or equals the tax amount. The system will report an error if the limit or guarantee amount is less than the tax amount.

• The system will provide the declarer with a "voucher recording the rent receivable" in the event that they need to pay tax right away. "Decision to clear goods" will be issued by the VNACCS system once the declarant has finished paying all taxes and fees.

4.9. Execute orders modification and customs clearance processes

The individual in charge of customs procedures prints the lists of items and containers from the declarant's declaration system or the Customs Electronic Information Portal and gives them to the Customs Branch, which is in charge of overseeing ports, warehouses, and other sites. point to deliver items to a storage facility or release/clear customs.

Note to businesses: the required delivery order is still in effect. If not, you will need to arrange an extension with the shipping firm. Subsequently, the company presents itself to the Port's commercial department with the necessary paperwork, including a D/O, a barcode, an introduction letter from the products owner, etc. Employees will generate bills so that companies can pay the required amounts. All that businesses need to do is pay costs to obtain an ER slip, or delivery receipt. The company can then go ahead and put the products onto the transport van.

The declarant must print the list or ask a civil servant at the Customs Branch to print it if, after the products have entered the supervision area, the list of goods or list of containers differs from what is stated in the customs declaration. products, the system's list of containers.

When releasing or transporting items to a storage facility, the customs declarant is responsible for filling out all necessary paperwork and submitting it to the customs authority, which handles the steps involved in finishing the customs clearance process for that batch of goods.

5. Typical mistakes made when finishing the customs process

Data that can be altered as well as data that cannot be altered will be present in the software when export/import processes for importing and exporting items are implemented. If done wrong, businesses risk fines and having to start over with new declarations, which will take time to rectify or supplement. Furthermore, if the declaration has been stamped for tax payment but the tax amount needs to be changed, it takes even longer. In order to prevent unintended events, firms should be aware of some of the following typical mistakes.

5.1. The documents' information is inaccurate

When completing customs processes, one of the most frequent errors is having inaccurate information on paperwork. As a result, companies need to make sure that all of the information on the paperwork, including the shipment details and delivery method, is correct.

When an error is found, the company must either fix it right away or tell the person with the necessary authority. Common mistakes in document information include misspellings, incorrect weight or quantity of commodities, inconsistent conditions, and so on. The owner of the items is vulnerable to loss once an error happens. a great deal of money, time, and effort simply as a result of an inaccurate or careless declaration of the cargo ship, container number, or delivery location.

5.2. Typical C/O mistakes

The FOB value, computed in USD, must be the figure in the C/O. But occasionally, other values (EXW, CIF, CFR, etc.) in accordance with the contract and invoice value; the goods contain numerous data that the C/O does not fully display.

One of the things that businesses may do to take advantage of reduced tax rates is to apply for a C/O. The business will be subject to non-preferential tax rates if an error occurs that results in the C/O being rejected (for example, if the FOB value on the C/O does not match other values on the invoice/contract).

In the event that a third party issues the C/O, the seller's invoice number—rather than the consignor's—must be included into the "Third Party Invoicing" box. If the C/O has the aforementioned mistakes, the Customs office will reject, reject consideration, and accept refusal.

5.3. Misuse of the HS code

When performing import and export customs procedures, it is common for errors to arise related to incorrectly looking up the HS code. The tariff schedule's fairly identical descriptions of several sorts of commodities are the explanation for this. On the other hand, using various HS codes demonstrates that various commodities have various tax rates. In this situation, customs declarants are frequently perplexed because they do not fully understand the professional guidelines for applying the HS code.

Every kind of goods has a single HS code. The HS code application guidelines must be scrupulously adhered to by those handling customs operations. On the other hand, customs units act in the opposite direction from shippers, who always consider applying the HS code with the lowest tax rate for goods. Customs declarers must therefore use extreme caution when applying the HS code. Please consult the customs authority's HS code if you are genuinely unsure.

6. Frequently requested inquiries

Even though customs processes are much quicker, not all businesses can easily finish them. Come along with Dolphin Sea Air as we address some common queries and issues that companies have!

6.1. What is contained in customs documents?

The Customs Law lists the following as examples of customs documents:

• Documents or a customs declaration may be used in place of one.
• Pertinent records

Documents such as commercial invoices, commodity trading contracts, documents attesting to the origin of the goods, transport documents, import/export licenses, written notifications of test results or exemptions from testing, and other documents pertaining to goods as required by law must be submitted or presented by the person handling customs procedures, depending on the specifics of each case.

Take note:

• Both paper and electronic papers must be included in the customs dossier. Electronic papers must guarantee integrity and format in compliance with legal requirements.
• Customs paperwork must be filed and delivered in person at the customs authority's headquarters.

If the single-window procedure is used, the nation or a designated state management agency will use an integrated system to provide electronic information in the form of import/export licenses, written notifications of inspection results, or exemptions from inspection.

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6.2. Where to go to clear customs ?

The following locations for approval procedures are mandated by law:

• The customs authority receives, registers, examines customs documents, and physically inspects the products and transportation equipment at the area designated for customs clearing processes.
• The Customs Department headquarters and the Customs Branch are the places where documents related to customs can be received, registered, and verified.
• The following places are used for physical inspections of goods: international post offices, international railway stations, international airports, seaports with immigration, transit, and inland waterway ports; road border gates; and inland areas with established import and export ports.
  • The Customs Branch's headquarters address
  • The General Director of the Customs Department determines where the centralized inspection will be located. Construction sites, production facilities, and areas hosting fairs and exhibitions are the locations of inspection.
  • Retail consolidation areas, bonded warehouses, and tax bonded warehouses are the locations for inspection.
  • At land border gates, customs officials from Vietnam and a neighboring country jointly inspect the area.
  • The General Director of the Customs Department determines additional inspection sites when necessary.

6.3. The amount of time customs officials have to complete customs procedures

The Customs Law specifies the following deadlines for customs officials to complete export/import procedures:

• As soon as the customs declarant submits or produces the customs documents, the Customs Authority will receive, register, and inspect the documents.
• The following is the time frame within which customs officers must finish document inspection and physical inspection of goods and means of transportation after the customs declarant has fully implemented the requirements for customs clearance procedures:
  • The customs authorities must finish document examination within two working hours of receiving all completed documents.
  • The physical inspection of the products is finished within eight working hours of the customs declarant presenting the goods in full.
  • The deadline for finishing the food inspection is determined by the time the results of the specialized inspection are received, if certain types of goods are required by law to undergo specialized inspections for quality, health and culture, animal and plant quarantine, and food safety.
  • The Head of Customs will decide whether to prolong the time for the physical inspection in cases of high volume shipments with many types or complex physical inspections; the extension period, however, cannot be longer than two days.
  • The loading and unloading of import and export commodities, the admission and exit of passengers, and the provision of appropriate inspection and supervision in compliance with the legislation must all be taken into consideration during the inspection of transportation methods.

• In order to ensure that goods are promptly loaded and unloaded for import and export, ensuring entry/exit time of passengers and means of transportation, customs authorities carry out customs management procedures on holidays, days off, and outside of working hours. Alternatively, they carry out customs management procedures at the request of the customs clearance person and in accordance with actual conditions in the area of operation.

6.4. The cutoff date for filing customs paperwork

The Customs Law states that the following deadlines apply to the submission of particular customs documents:

• In the event of an export shipment, goods must be sent to the courier board no later than 02 hours before the vehicle departs the nation. Customs documentation must be submitted once the package has been assembled at the site advised by the customs declarant.
• When shipping something imported, you must turn in your customs paperwork either in advance of the products arriving at the border gate or within 30 days of that date.
• The customs declaration is valid for 15 days following the customs declarant's registration date.

There are deadlines for submitting pertinent documents:

• The person handling customs procedures must submit all documents included in the customs dossier in the case of an electronic customs declaration, with the exception of documents included in the national single-window information system, when the customs authority reviews the customs dossier and requests a physical inspection of the goods.
• If a customs declaration is made on paper, the declarant must register the declaration and provide any necessary documentation.

7. A trustworthy and committed customs broker service provider is Dolphin Sea Air

The most reliable company in Vietnam for customs procedures is Dolphin Sea Air. With over 15 years of expertise, we take great pride in offering our clients the best services at competitive prices. At the moment, Dolphin Sea Air employs more than 300 skilled and knowledgeable workers. In order to meet the demands of all enterprises, our office system is expanding across the country at the same time, particularly in major cities and industrial hubs.

Dolphin Sea Air's exceptional benefits make it the go-to option for organizations seeking customs clearing services; the processes are quick and easy, utilizing many digitization steps.

• Dolphin Sea Air has successfully navigated numerous challenging situations, assisting numerous companies with seamless customs clearance.
• We always keep companies informed about the most recent modifications to customs regulations and processes.
• Clients who use Dolphin Sea Air's customs clearing services are entitled to a complimentary customs clearance consultation.

Dolphin Sea Air additionally makes the following commitments to its clients:

• Handle shipments that are challenging to cross customs quickly.
• Get approval from customs for shipments that are urgent.
• Provide services in a respectable and professional manner; high-quality work at a reasonable price
• Complete service quote with no hidden fees
• Field personnel and documentation workers are highly responsible and have a wealth of expertise.

Dolphin Sea Air Services Corporation

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

Dolphin Sea Air would like to share with your businesses the comprehensive information regarding customs procedures that is provided above. Businesses must acquire professional knowledge to execute customs clearance procedures with the highest accuracy because they are relatively complex.

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