What is a customs separation declaration? Meaning of 3 streams and processes

1. What is the selectivity of customs declaration form ?

The practice of overseeing and coordinating cargo across international borders, seaports, or border gates is known as customs channeling. The idea of customs channeling is adhering to the unique laws and protocols governing customs in each nation.

Put customs clearance declarations into action to guarantee that shipments are authorized, inspected, and taxed in compliance with laws. By facilitating the export/import procedure in accordance with legal requirements, this helps safeguard national security.

2. Three rating levels and current channeling declaration kinds 

To facilitate the seamless export and import of goods across borders, separate customs declarations are a crucial first step. Green channel, yellow channel, and red channel are the three primary customs channel ratings at the moment. Businesses should specifically take note of the following:

2.1. Green Lane

• Symbol: Symbol code 1

The green channel is a practical customs channel that prioritizes products that have complied with customs legislation and pose no danger. Declared goods via the green channel pass customs inspection with ease and speed. This saves money and time for businesses.

The following requirements must be met for products to be brought into the green channel: the commodities must have fully conformed with customs laws and clearance prior to entering the nation.

• At the export port or the preceding inspection site, the goods have undergone a comprehensive verification and inspection.
• This kind of product is regarded as reliable because it has a history of safe export.

2.2. Yellow Lane

• Symbol: Symbol code 2

Products that require testing and authentication but are at a lesser risk level than those in the red stream fall under the yellow stream. Generally, the yellow stream contains things that fit within the following categories:

• Goods have either been confirmed by customs officials or have undergone prior inspection and verification in the exporting nation.
• The product is included in the inventory for arbitrary scrutiny.
• Goods that have inaccurate or erroneous information on associated paperwork or invoices.

The yellow channel often has faster customs clearance service times than the red channel. To avoid missing the deadline for classifying customs declarations, businesses must still pay attention to supplying appropriate information and documentation.

2.3. Red Lane

• Symbol: Symbol code 3

Shipments that require a thorough inspection or those that appear to be in violation of customs laws are routed through the red channel. Items that are frequently listed in red channel declarations include:

• Shipment of high value
• Unknown-origin shipment of goods from specialized industries, like food and medicine...
• The package is currently being held up because of problems with customs laws

Furthermore, a few frequent mistakes made during the customs process may also be the reason why items are placed in the red channel. The particular reasons are:

• When declaring manually, the information provided does not correspond with the documentation. The information does not correspond with the product code; there is a lack of clear, comprehensive, and precise product names.
• Taxes are due on the shipment, and they may be assessed or enforced.
• The declarant disobeys the processes for the proclaimed declaration and often modifies, updates, or even cancels customs declarations.
• Regulation infractions consist of:
  • Smuggling and unlawful cross-border shipping of products
  • Tax avoidance and fraud
  • Noncompliance with customs authorities' regulations during inspection, supervision, control, and processes; After the package passes customs, make sure. For instance: bringing goods under customs supervision or shipments awaiting customs clearance... for consumption; falsifying customs seals; providing incomplete or late electronic data pertaining to export/import goods when requested by customs; exchanging physically inspected shipments with uninspected shipments; etc.

Circular 112/2005/TT-BTC states that there are three physical inspection levels at the red channel, which are as follows:

• Examine the full shipment of products.
• 10% of shipments will be inspected; if no infractions are found, the inspection will conclude; If a violation is found, keep going until the shipment's degree of violation is reached.
• Examine five percent of shipments; if no infractions are found, the inspection will conclude; If a violation is found, keep going until the shipment's degree of violation is reached.

3. What customs channel separation means

In the realm of import/export, the declaration of the customs channel separation is crucial. The separation of the three streams—green, yellow, and red—will aid in controlling the clearance of items. The threading process also facilitates the faster, more precise, and more efficient execution of operations.

Customs inspection levels will be assigned in ascending order: green channel, yellow channel, and red channel, which has the highest level of supervision. Legal restrictions state that goods brought into the red channel will be subject to a more thorough inspection.

Customs channelization also refers to assisting customs authorities in streamlining the international commerce industry's products management procedure. From there, customs officials may quickly identify legal infractions and stop the importation of low-quality, counterfeit, and commodities of unknown origin into Vietnam.

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4. Protocols for carrying out customs clearance

When putting customs processes for import and export of commodities into practice, one crucial stage is the separation of customs channels. Five phases are involved in the classification of customs declarations:

• Step 1: Documents are received and verified by the customs authority, which also registers declarations and determines the type and extent of goods inspection.
• Step 2: Following the computer's entry of the data from step 1. The proper form and degree of inspection will be automatically processed by the system.
• Step 3: The products will be physically inspected by the customs authorities.
• Step 4: The person handling the process will get the required payment, stamp the customs declaration, and give it back to the individual filing it.
• Step 5: Lastly, they will carry out the record-keeping process. If needed, these documents can be examined following customs clearance.

5. Discover in-depth how to perform a physical inspection of things

Decree 154/2005/ND-CP states that all commodities of an enterprise will be free from physical inspection if they adhere to customs regulations. Goods in this situation can be categorized as either green or yellow channels.

Other examples include conditional export items, exported goods (apart from those made using imported raw materials), and tax-exempt machinery and equipment used in both local and foreign investment projects. These products fall under either the green or yellow channel and are not subject to a physical inspection.

This Decree further states that shipments that the goods owner exports or imports and frequently violates customs laws are excluded from physical inspection; nevertheless, if customs finds evidence of a violation, the shipment must still undergo a physical inspection. worldwide. In this instance, it is evident that the shipment is part of the red channel declaration in order to conduct more thorough inspection procedures.

6. How can companies acquire green channels?

How is a company put into the "green stream"? Businesses that import and export frequently ask themselves this question when transmitting declarations that are frequently placed in the red or yellow channels. Businesses can expedite the customs process by including goods in the green channel declaration, which will facilitate the process. Consequently, all companies involved in the import/export industry share this desire.

Numerous factors affect the separation of the customs channel. Nonetheless, companies that meet the following requirements and maintain good compliance for a year or more are likely to be categorized under the green channel, per legislative regulations:

• Businesses don't evade taxes or customs
• Businesses are unable to amend or remove declarations.
• Businesses work closely with customs
• Businesses completely update data for customs authorities
• Businesses are elevated to priority status; not all businesses are able to achieve this, though.

Note: The electronic customs system separates the customs channels automatically. Customs officials will offer information on products with pricing risk, commodities that require specialized examination for certain channels, and various evaluation criteria tailored to each firm. As a result, there is no guarantee that the transmission of the declaration will be categorized as occurring in the green channel. Channel classification must wait for the Customs agency's declaration of customs clearance and channel classification results.

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7. What criteria are used to categorize customs declarations?

Directing customs declarations according to the application of risk management for export and import of products. Determining the type and degree of inspection is based on:

• Clause 2, Article 16 of Customs Law 54/2014/QH13 states that in order to guarantee effectiveness and state legal effect in the customs domain, customs inspection and supervision are conducted in accordance with the law on risk management. This makes it easier for actions related to export/import, entry/exit, and transportation.
• Clause 1, Article 13 of Decree 08/2015/ND-CP states that the results of evaluating declarants' legal compliance and categorizing risk levels are handled by the customs authorities, who also conduct inspection and supervision, inspection following customs clearance, inspection, and other professional measures based on the synthesis.
• The Ministry of Finance's Circular 38/2015/TT-BTC, which governs customs processes, inspection and supervision, import/export tax, and tax administration for import/export commodities, states in Articles 14 and 15:

Article 14: Evaluation of Customs Declarants' Legal Compliance:

Declarants' degree of compliance is evaluated using the following criteria and data:

• Regularity of tax and customs law infractions
• The kind and severity of infractions against tax and customs laws
• Compliance with decisions made by customs authorities and cooperation with them in carrying out customs processes, inspections, and monitoring.

The products will be evaluated by the customs authorities, who will then classify them appropriately.

Article 15: Classification of risk levels:

• Based on the degree of conformity with the legislation of the customs declarant, the amount of risk in export/import, exit/entry, and transit operations is classified.
• The following pertinent elements will be taken into account by customs authorities for categorizing risk levels:
  • Entry/exit and transit methods, management and tax regulations for export/import and transit commodities; bags carried by travelers entering and leaving the country.
  • The type and attributes of the cargo, mode of transportation, and baggage.
  • The frequency, kind, and severity of infractions pertaining to commodities, modes of transportation, and baggage.
  • Origin of goods that are imported, exported, and transited.
  • Routes and techniques for moving cargo and bags.
  • Other elements pertaining to the transit, exit, and import processes.
• In order to apply inspection measures, customs authorities will classify and analyze risks for customs declarants, import/export, entry/exit, and transit operations at various levels. suitable oversight and examination.

8. Declaration of customs channel separation and other important information

Many businesses continue to be concerned about various difficulties associated with customs declaration channels during the course of customs operations. Let's respond with Dolphins Sea Air !

8.1. When to notify the recipient of the channeling declaration results

Businesses must be aware of how long it takes the customs authorities to notify them of the declaration's outcomes while transmitting customs declarations. The time for notification is given in Circular 39/2018/TT-BT, Article 1, Clause 8. As a result, the statute states:

• As soon as the electronic data processing system receives, verifies, and registers information on a customs channel separation declaration, the customs authority is alerted of the results.
• As soon as the system gets information from the customs declaration, the outcomes of the channeling declaration and the customs clearing declaration will also be accessible right away.

>>>> CONTINUE: Guide for Vietnam customs declaration form online

8.2. A "super green" stream: what is it?

Actually, the idea of "super green" flow is one that many organizations frequently hear about. This idea relates to companies that make significant GDP contributions to the country's economy. Alternatively, "breaking the channel" may occur when customs officials assume that a company's products are prohibited from being imported or exported. It is typical for shipments going through the yellow or green channels to still require a partial or complete physical inspection in addition to a request for supporting documentation.

Dolphin Sea Air would like to share the selectivity of customs declaration form details with your enterprises, which are listed above in detail. With any luck, companies will know more about what knowledge is needed to complete customs processes efficiently and on time.

• DOLPHIN SEA AIR SERVICES CORPORATION
• Hotline: 1900986813
• Email: saleshan6@dolphinseaair.com
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