Decree No. 46/2020/NĐ-CP stipulates customs procedures and customs inspection and supervision for goods in transit through the ASEAN Customs Transit System to implement Protocol 7 on the ASEAN Customs Transit System.

 

DECREE

Regulations on customs procedures, inspection, and supervision for goods transiting through the ASEAN Customs Transit System to implement

Protocol 7 on the ASEAN Customs Transit System

dated June 23, 2014;

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Pursuant toLaw on Government Organization June 19, 2015;

Pursuant toCustoms Lawdated April 6, 2016;

Pursuant toLaw on Export Duties and Import Dutiesdated November 29, 2006 and

Pursuant toLaw on Personal Income Taxdated November 20, 2012;The Minister of Finance issues this Circular guiding the collection and management of budget revenues through the State Treasury.dated November 26, 2014 and April 6, 2016;

Pursuant toLaw amending and supplementing certain provisions of the Tax Lawsdated June 12, 2017;

Pursuant tothe Law on Foreign Trade ManagementTo enforce Protocol 7 on the ASEAN Customs Transit System;

The Government issues this Decree to regulate customs procedures, inspection, and supervision for goods transiting through the ASEAN Customs Transit System to implement Protocol 7 on the ASEAN Customs Transit System.

At the proposal of the Minister of Finance;

This Decree stipulates customs procedures, inspection, and supervision for goods transiting through the ASEAN Customs Transit System (hereinafter referred to as the ACTS); preferential treatment for businesses conducting transit activities through the ACTS; guarantees, deposits, and recovery of customs duties for goods transiting through the ACTS.

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

1. Organizations and individuals implementing transit of goods through the ACTS.

Article 2. Applicability

2. Organizations and individuals with related rights and obligations.

4. Other state agencies involved in coordinating management of transit activities of goods through the ACTS.

3. Customs authorities and customs officers.

5. Guarantors.

1. The ACTS is an integrated information technology system established by ASEAN member countries and connected to exchange information among each other to implement electronic transit procedures, control the movement of goods transiting through the territory of ASEAN member countries, and support customs authorities of ASEAN member countries in calculating customs duties, guarantee fees, and exchanging information on the recovery of customs duties based on Protocol 7 on the customs transit system (hereinafter referred to as Protocol 7).

Article 3. Explanation of Terms

In this Decree, the following terms are understood as follows:

2. A customs transit declaration is an electronic customs declaration form containing information indicators that the declarant must fill out when implementing transit procedures for goods through the ACTS.

One customs transit declaration can only be used to declare goods being transported on a single conveyance for a single transit journey through the ACTS.

3. Accompanying documents for goods in transit (referred to as TAD) are customs transit declarations approved by the departure customs authority and printed from the ACTS system.

4. A transit journey is the transportation route of goods in transit from a customs authority at the point of departure to a customs authority at the destination through the ACTS.

5. Transit guarantee is the guarantor's assurance of payment for any customs duties that may arise during the transit journey.

6. Guarantee for a single journey is the guarantor's commitment to fulfill all customs duty obligations that may arise during a single transit journey.

7. Guarantee for multiple journeys is the guarantor's commitment to fulfill all customs duty obligations that may arise during multiple transit journeys.

8. Guarantor is a legal entity or natural person who commits to the departure customs authority, transit customs authority, and destination customs authority regarding the obligation to pay any customs duties that may arise according to the requirements of the participating customs authorities in the transit transportation of goods.

9. Guarantor in Vietnam (in cases where goods in transit originate from Vietnam and pass through other ASEAN countries) is a credit organization or foreign bank branch operating under the Law on Credit Institutions, which ensures a commitment to the Vietnamese customs authority, transit customs authority, and destination customs authority regarding the fulfillment of the obligation to pay any customs duties that may arise during the transit transportation of goods.

10. Guaranteeing authority is the authority designated by ASEAN member countries participating in Protocol 7 to approve guarantors and supervise guarantees during the transit transportation of goods. The guaranteeing authority in Vietnam is the customs authority.

11. Customs duties are import duties, other taxes, and fees payable arising from goods in transit during transportation.

12. Arrears in customs duties are customs duties that the declarant has not paid into the state budget by the prescribed deadline.

13. Assistance in recovering arrears in customs duties is the support provided by customs authorities of ASEAN member countries participating in Protocol 7 to recover customs duty arrears arising during the transit transportation of goods at the request of ASEAN member countries.

14. Customs authority responsible for recovery of arrears in customs duties, customs authority providing assistance in recovery of arrears in customs duties, or customs authority requesting assistance in recovery of arrears in customs duties in Vietnam is the customs authority.

15. Abnormalities in transit journeys include: loss or damage of goods; initial transit journey changed; seals removed during transit or goods transferred to another conveyance due to objective reasons beyond the carrier's control; situations requiring immediate removal of part or all of the goods from the conveyance due to imminent danger; other cases affecting the completion of transit activities of goods through the ACTS.

16. Goods illegally moved out of the customs transit procedure through the ACTS is the movement of goods in transit outside the customs transit procedure through the ACTS without the consent of the competent authority or without presenting documents proving that the goods are under another customs procedure regime.

16. Goods illegally moved out of transit customs procedures through the ACTS System is the movement of transit goods out of the transit customs procedures through the ACTS System without the consent of the competent authority or without presenting documents proving that the goods are subject to another customs regime.

Article 4. Person filing customs declaration

The person filing customs declaration for goods in transit under this Decree (hereinafter referred to as the person filing customs declaration) includes:

1. Owner of goods in transit.

2. Service provider for goods in transit.

3. Customs clearance agent.

4. Owner of means of transport or person in charge of means of transport carrying goods in transit or person authorized by the owner of means of transport carrying goods in transit.

Article 5. Rights and obligations of the person filing customs declaration

1. Rights of the declarant:

a) To be guided by the customs authority on procedures for filing customs declarations for goods in transit through the ACTS System as prescribed in this Decree;

b) To choose to implement customs procedures for goods in transit through the ACTS System prescribed in this Decree or customs procedures for goods in transit according to current Vietnamese laws;

c) To use software connecting with the electronic data processing system of the customs authority to file customs procedures for goods in transit through the ACTS System;

d) Other rights as prescribed in the Customs Law.

2. Obligations of the customs declaration person:

a) To bear responsibility for fully, accurately, and truthfully declaring all information items on the customs declaration form for goods in transit through the ACTS System;

b) To comply with regulations on goods in transit as prescribed in this Decree and related laws;

c) To transport goods along the specified route and border gate as prescribed and within the time registered with the customs authority of the exporting country;

d) Not to open customs seals without permission from the customs authority;

đ) To fulfill all duties regarding import taxes, other taxes, and fees payable arising from goods in transit;

e) To study and research information about management policies for goods in transit of countries where transit activities are planned to be carried out and to request relevant authorities to issue transit permits (if required) before declaring information items on the customs declaration form for goods in transit through the ACTS System. Information about transit permits for goods in transit must be declared through the ACTS System when registering the customs declaration form for goods in transit and presented to the customs authority handling the transit procedures;

g) To notify the customs authority or one of the following authorities: local government, police, border guard force at the location where irregularities occur during the transit journey after applying necessary measures to limit and prevent losses as prescribed in this Decree;

h) To retain customs records, accounting books, accounting vouchers, and other relevant documents concerning goods in transit for five years from the date of registering the customs declaration form for goods in transit through the ACTS System;

i) Other obligations as prescribed in the Customs Law.

Article 6. Provisions on goods in transit through the ACTS System

1. Goods in transit originating from Vietnam and transiting through other ASEAN member countries via the ACTS System must comply with the management policy for goods in transit of the transiting country.

2. Goods in transit passing through other ASEAN member countries and imported into Vietnam via the ACTS System must comply with the management policy for goods in transit of other member countries and the management policy for imported goods under relevant Vietnamese laws.

3. Goods in transit passing through Vietnam via the ACTS System must comply with the management policy for goods in transit as prescribed by relevant laws.

4. The Director of the Customs Sub-department shall base on the channeling results of the ACTS System and any related information on goods in transit (if available) to decide on inspecting customs records and/or physically inspecting goods. Physical inspection of goods shall be conducted using machinery and technical equipment; if the Customs Sub-department has not been equipped with such machinery and technical equipment or if physical inspection by such machinery and technical equipment does not provide sufficient basis to determine the actual condition of goods or if there are signs of violation of laws, then the customs officer shall directly conduct the physical inspection.

5. Fees and charges collected in Vietnam for goods in transit through the ACTS System shall be implemented in accordance with the provisions of the law on fees and charges.

Goods in transit passing through Vietnam's territory and intended for domestic consumption in Vietnam shall follow the procedures for domestic consumption as prescribed by current laws on customs.

The deadline for implementing customs procedures for goods in transit through the ACTS System shall be carried out in accordance with Article 23 of the Customs Law.

Article 7. Place of Customs Procedures Execution

1. Customs procedures for goods transiting through the ACTS System shall be carried out at:

a) The first Entry Port Customs Sub-Department, Non-Port Customs Sub-Department for goods transiting through ASEAN member countries and imported into Vietnam.

In case goods transiting through ASEAN member countries and imported into Vietnam belong to the list of goods that must go through customs formalities at the entry port according to the Prime Minister's regulations, customs procedures for goods transiting through the ACTS System will end at the first Entry Port Customs Sub-Department;

b) Non-Port Customs Sub-Department, Exit Port Customs Sub-Department for goods originating from Vietnam transiting through other ASEAN member countries;

c) The first Entry Port Customs Sub-Department for goods transiting from non-ASEAN countries through Vietnam to ASEAN member countries;

d) The first Entry Port Customs Sub-Department and the last Exit Port Customs Sub-Department for goods transiting from ASEAN member countries through Vietnam to other ASEAN member countries;

đ) The first Entry Port Customs Sub-Department for goods transiting from ASEAN member countries through Vietnam to continue transportation to non-ASEAN countries. Customs transit procedures through the ACTS System will end at the entry port. Customs procedures for continuing the transportation of goods transiting to non-ASEAN countries will be carried out according to current Vietnamese laws.

2. Goods transiting through the ACTS System can only be transported from Vietnam to ASEAN member countries or from ASEAN member countries into Vietnam via international border gates: Cầu Treo (Ha Tinh), Lao Bảo (Quang Tri), Moc Bai (Tay Ninh).

Chapter II

CUSTOMS PROCEDURES FOR GOODS TRANSITING THROUGH THE ACTS SYSTEM

THROUGH THE ACTS SYSTEM

Article 8. Customs procedures for goods originating from Vietnam transiting through other ASEAN member countries

1. Customs Documents:

a) A customs transit declaration form according to information criteria issued by the Ministry of Finance;

b) Transit permit for goods or equivalent documents in cases where the laws of ASEAN member countries along the transit route require a transit permit for goods or equivalent documents: 01 copy;

c) Guarantee letter or deposit slip for tax: 01 original.

For multi-journey guarantees, the declarant submits the original when registering the first customs transit declaration form using such guarantee;

d) Export declaration completed with export formalities: 01 copy.

2. Responsibilities of the declarant:

In addition to the obligations stipulated in Clause 2, Article 5 of this Decree, the declarant shall fulfill the following responsibilities:

a) Fully complete the customs transit declaration form and submit the accompanying documents specified in Points b, c, and d of Clause 1 of this Article when registering the customs transit declaration form through the ACTS System. In cases where the ACTS System does not have the function to attach customs documents, the declarant shall submit the paper documents to the customs authority;

b) Present goods for the customs authority to seal or issue a record of confirmation in cases where goods cannot be sealed;

c) Present documents and goods for document inspection and physical inspection of goods upon request of the customs authority;

d) Supplement the customs transit declaration form according to the provisions of Article 10 of this Decree;

đ) In cases of abnormal situations during transit as stipulated in Clause 15, Article 3 of this Decree, the declarant shall take necessary measures to limit and prevent damage and report to the customs authority via the hotline on the Customs Portal website.

In cases where immediate reporting to the customs authority is not possible, the declarant shall immediately report to the local authorities or police or border guard unit where the abnormal situation occurred to confirm the abnormal situation according to the actual situation, sign and stamp on the TAD, and report to the customs authority for handling according to regulations.

3. Responsibilities of the Non-Port Customs Sub-Department (Departure Point Customs Sub-Department) in cases where customs procedures for goods transiting through the ACTS System are carried out at the Non-Port Customs Sub-Department:

a) In cases where the consignment does not require document inspection or physical inspection of goods, the Departure Point Customs Sub-Department shall implement the provisions of Points d, đ, e, and g of this Clause;

b) In cases where the consignment requires document inspection, the Departure Point Customs Sub-Department shall inspect and compare the information of the customs transit declaration form accepted and assigned an ARN number by the ACTS System with the documents in the customs file.

If the inspection results are complete and consistent, the customs authority shall implement the provisions of Points d, đ, e, and g of this Clause.

If the inspection results are incomplete or inconsistent, the Departure Point Customs Sub-Department shall guide the declarant to supplement missing or incomplete information through the ACTS System according to the provisions of Article 10 of this Decree.

If there are suspicious signs during inspection, it shall require the declarant to present goods for physical inspection according to the provisions of Point c of this Clause;

c) In cases where the consignment requires physical inspection of goods, the Departure Point Customs Sub-Department shall inspect and compare the information of the customs transit declaration form accepted and assigned an ARN number by the ACTS System and the documents in the customs file with the actual goods. If the physical inspection results are consistent with the declaration and customs file, the Departure Point Customs Sub-Department shall carry out customs procedures according to the provisions of Points d, đ, e, and g of this Clause.

If the physical inspection results are inconsistent with the declaration and customs file, the Head of the Departure Point Customs Sub-Department shall examine and decide whether to continue the transit procedure through the ACTS System or stop the transit procedure through the ACTS System.

For priority transit enterprises, physical inspection of goods may be conducted at the enterprise's storage location if there are signs of legal violations. The enterprise's storage location is the place registered by the enterprise in the document requesting recognition of a priority enterprise as stipulated in point a, Clause 1, Article 34 of this Decree.

d) Seal the container, update the customs seal number or record information on the confirmation certificate for cases where goods cannot be sealed through the ACTS System.

In the case of priority transit enterprises, the declarant updates the special seal number through the ACTS System before the goods are approved for transit.

đ) Approve the transportation of goods through transit via the ACTS System;

e) Provide the declarant with one copy of the TAD printed from the ACTS System to be used as accompanying documentation for the transit goods;

g) Monitor and coordinate with relevant agencies (guarantor agency, export customs checkpoint, transit country customs, and destination customs) to handle irregularities that occur during the transit of goods as prescribed.

4. Responsibilities of the Export Customs Checkpoint Revenue Collection Office (Transit Customs Checkpoint Revenue Collection Office) when transit procedures are carried out at a customs office outside the checkpoint:

a) Verify the information on the TAD presented by the declarant against the declaration information for transit goods on the ACTS System;

b) Inspect the original condition of the goods; inspect the customs seal or special seal for cases involving the transit goods of priority transit enterprises.

If the inspection results do not reveal any signs of violation, the Transit Customs Checkpoint Revenue Collection Office approves the continuation of the transit journey through the ACTS System.

If the inspection results reveal signs of violation regarding sealing or the goods are no longer in their original condition, the Transit Customs Checkpoint Revenue Collection Office will prepare a record confirming the status of the goods and conduct a physical inspection of the goods, recording the inspection results through the ACTS System.

The Director of the Transit Customs Checkpoint Revenue Collection Office bases the decision to allow the continuation of the transit journey or to stop the transit procedures on the level of violation, through the ACTS System.

If the continuation of the transit journey is allowed, sealing or preparing a confirmation certificate must be done for cases where goods cannot be sealed; updating the new seal number or recording information on the confirmation certificate through the ACTS System, while simultaneously noting these details on the TAD.

If the customs procedure is stopped, notify the Departure Point Customs Checkpoint Revenue Collection Office to cancel the declaration according to Article 11 of this Decree and guide the declarant to proceed with the necessary export procedures as prescribed.

c) Confirm that the goods have crossed the border through the ACTS System;

5. Responsibilities of the Departure Point Customs Checkpoint Revenue Collection Office (Departure Point Customs Checkpoint Revenue Collection Office) when transit procedures are carried out at the departure point customs checkpoint: implement as prescribed in Clause 3 of this Article.

Article 9. Customs procedures for goods in transit through the ACTS System from non-ASEAN countries to ASEAN member countries via Vietnam's territory.

1. Customs Documents:

a) A customs transit declaration form according to information criteria issued by the Ministry of Finance;

b) A valid transit permit for goods in cases where Vietnamese law requires such a permit: 01 original copy;

c) Notification of quarantine inspection results issued by the quarantine authority meeting the requirements stipulated by the law on quarantine or quarantine certificates issued by foreign quarantine authorities and recognized by the law on quarantine for goods in transit that require quarantine: 01 original copy;

d) A valid transit permit for goods or equivalent documents in cases where the laws of ASEAN member countries along the transit route require such permits or equivalent documents: 01 photocopy;

đ) A letter of guarantee or deposit slip for taxes: 01 original copy.

For multi-journey guarantees, the declarant submits the original when registering the first customs declaration for transit using that guarantee.

2. Responsibilities of the declarant: To comply with the provisions set forth in Clause 2, Article 8 of this Decree.

3. Responsibilities of the Import Customs Sub-Department (Departure Customs Sub-Department): To comply with the provisions set forth in Clause 3, Article 8 of this Decree.

4. Responsibilities of the Export Customs Sub-Department (Transit Customs Sub-Department): To comply with the provisions set forth in Clause 4, Article 8 of this Decree.

Article 10. Supplementing the customs declaration for goods in transit

1. Cases for supplementing the customs declaration for goods in transit through the ACTS System:

a) The declarant discovers errors before the Import Customs Sub-Department notifies the inspection of the customs documents or physical inspection of the goods, or before the approval of the goods being transported in transit through the ACTS System;

b) The Import Customs Sub-Department inspects, discovers errors, and requests supplementation before the approval of the goods being transported in transit through the ACTS System.

2. Responsibilities of the declarant:

Supplement the information of the customs declaration for goods in transit and submit related documents through the ACTS System. In cases where the ACTS System does not have the function to attach related documents for supplementation, the declarant shall submit paper copies to the customs authority.

3. Responsibilities of the Import Customs Sub-Department:

Receive supplementary declaration information; inspect the supplementary declaration information, and notify the declarant of the inspection results through the ACTS System within two working hours from the time of receiving complete information or documents (if applicable).

Article 11. Cancellation of the customs declaration for goods in transit

1. Cases for canceling the customs declaration for goods in transit through the ACTS System:

a) Exceeding the 15-day period from the date the customs declaration for goods in transit was assigned an ARN number but the goods were not presented to the customs authority for sealing or issuing a Certificate of Verification (in cases where the goods cannot be sealed) or not delivered to the export port;

b) Exceeding the 15-day period from the date the customs declaration for goods in transit information was accepted and assigned an ARN number by the ACTS System but not approved by the customs authority due to system failure;

c) In cases where the Export Customs Sub-Department stops processing transit procedures through the ACTS System as provided for in Point b, Clause 4, Article 8 of this Decree;

d) Declaring multiple customs declarations for goods in transit for the same consignment; incorrectly declaring information in the customs declaration for goods in transit and the declarant requests cancellation of the declaration.

2. Responsibilities of the declarant: Submit a request to cancel the customs declaration for goods in transit through the ACTS System to the departure customs authority.

3. Responsibilities of the Import Customs Sub-Department:

a) Within eight working hours from the time of receiving the cancellation request from the declarant, the Import Customs Sub-Department checks the reasons, conditions, and information of the cancellation request through the ACTS System, implements the cancellation, and provides feedback to the declarant through the ACTS System;

b) After the 15-day period specified in Points a and b, Clause 1 of this Article, if the declarant does not request cancellation, the Import Customs Sub-Department will implement the cancellation of the customs declaration for goods in transit and notify the declarant of the handling result through the ACTS System;

c) In cases where the declarant requests cancellation of the customs declaration for goods in transit but the Import Customs Sub-Department has information indicating violations related to the consignment, the cancellation of the customs declaration for goods in transit can only be implemented after the customs authority confirms that the consignment does not violate the law or has completed the violation handling process (if applicable).

Article 12. Customs procedures for goods transiting through ASEAN member countries and imported into Vietnam or goods transiting from ASEAN member countries through Vietnam's territory to non-ASEAN countries.

1. Customs Documents:

TAD documents (in case the ACTS system encounters issues, the TAD must be confirmed by customs authorities of participating ASEAN countries along the transit route).

2. Responsibilities of the declarant:

a) Present the goods together with the TAD specified in Clause 1 of this Article to the Import Border Gate Customs Sub-department and the Destination Customs Sub-department for inspection upon request of the customs authority.

Send "arrival notification" to the destination customs authority via the ACTS System before unloading the goods. In cases where priority transit enterprises are involved, send "arrival notification" immediately upon arrival at the enterprise's headquarters or registered location.

In case of irregularities during the transit journey as stipulated in Clause 15, Article 3 of this Decree, the declarant shall take necessary measures to prevent damage and report to the customs authority via the hotline on the General Department of Customs' website.

If immediate reporting to the customs authority is not possible, the declarant shall promptly report to the local government, police, or border guard unit where the irregularity occurs, obtain confirmation of the irregularity, sign and stamp on the TAD, and notify the customs authority for handling according to regulations.

c) Retain the TAD that has been confirmed by the destination customs authority.

d) Carry out import procedures for goods or transit procedures for goods in accordance with current Vietnamese laws.

3. Responsibilities of the Import Border Gate Customs Sub-department (Destination Customs Sub-department) when the transit procedure through the ACTS System ends at the import border gate:

a) Accept the TAD specified in Clause 1 of this Article; inspect the original condition of the goods; inspect the customs seal or special seal for cases involving priority transit enterprises.

If the inspection results do not indicate any violations, clear the consignment.

If the inspection results indicate signs of violation, follow the provisions of Point b of this Clause.

b) Inspect the customs declaration documents and physically inspect the goods for cases requiring such inspections.

If the inspection results are consistent, clear the consignment and send information "No Violations Found" to the departure customs authority abroad via the ACTS System to conclude the transit journey.

If the inspection results are inconsistent, send a verification request via the ACTS System to the departure customs authority abroad to clarify and only clear the goods once the verification request is clarified.

For priority transit enterprises, after receiving the "arrival notification" from the enterprise via the ACTS System, the Director of the Destination Customs Sub-department decides on physical inspection of the goods and notifies the declarant via the ACTS System.

c) Update the arrival date information, send "inspection results" information via the ACTS System to the departure customs authority within two days from the time of presentation of the goods and send "arrival notification" to the departure customs authority abroad, customs authorities of transit countries, and the initial destination customs authority if there is a change in the destination customs authority via the ACTS System to conclude the transit journey.

d) Confirm on the TAD that the consignment has been cleared according to the declarant's request (if applicable).

đ) Carry out import procedures for goods or transit procedures for goods in accordance with current Vietnamese laws.

4. Responsibilities of the Import Border Gate Customs Sub-department (Transit Customs Sub-department) when the transit procedure through the ACTS System ends at a customs sub-department outside the border gate:

a) Accept the TAD specified in Clause 1 of this Article; inspect the original condition of the goods; inspect the customs seal or special seal for cases involving priority transit enterprises.

If the inspection results do not indicate any violations, the Transit Customs Sub-department approves the goods to continue the transit journey via the ACTS System.

If the inspection results indicate signs of violation regarding sealing or the goods are no longer in their original condition, send a verification request via the ACTS System to the departure customs authority abroad to clarify and conduct a physical inspection of the goods as provided in Point c of this Clause.

b) Conduct a customs declaration document inspection for cases requiring such inspections.

If the inspection results determine that the goods do not fall under the category eligible for transit procedures through the ACTS System at a customs sub-department outside the border gate, require the declarant to conclude the transit procedures through the ACTS System at the border gate.

If the inspection results do not indicate any violations, the Import Border Gate Customs Sub-department approves the goods to continue the transit journey to the destination via the ACTS System; update the customs declaration inspection results via the ACTS System.

If the inspection results are inconsistent, send a verification request via the ACTS System to the departure customs authority abroad to clarify and only approve the goods to continue the transit journey to the destination via the ACTS System once the verification request is clarified. Update the customs declaration inspection results via the ACTS System; if the verification information is inconsistent, follow the provisions of Point c of this Clause.

c) Conduct a physical inspection of the goods for cases requiring such inspections, perform the tasks specified in Points c, d, đ of Clause 3 of this Article, and conclude the transit procedures via the ACTS System.

d) Confirm the goods crossing the border via the ACTS System.

5. Responsibilities of the Customs Sub-department at the final destination in the case where the transit procedure ends at a Customs Sub-department outside the port: Implement according to the provisions set out in Clause 3 of this Article.

Article 13. Customs procedures for goods in transit from ASEAN member countries through Vietnam to other ASEAN member countries

1. Customs Documents:

a) TAD document (in case the ACTS system encounters technical issues, confirmation from the customs authorities of participating ASEAN countries along the transportation route must be provided);

b) A valid transit permit for goods in cases where Vietnamese law requires such a permit: 01 original copy;

c) Notification of quarantine results from the quarantine authority meeting the requirements stipulated by the law on quarantine or quarantine certificate issued by foreign quarantine authorities and recognized by the law on quarantine for goods in transit that require quarantine: One original copy.

2. Responsibilities of the declarant:

a) Present the customs declaration dossier as prescribed in Clause 1 of this Article and the goods to the Customs Sub-department at the port of entry and exit (Customs Sub-department for transit) for inspection upon the request of the customs authority;

b) In case an abnormal situation occurs during the transit journey as specified in Clause 15, Article 3 of this Decree, the declarant shall take necessary measures to limit and prevent damage and report to the customs authority via the hotline number on the General Department of Customs' website.

In cases where immediate reporting to the customs authority is not possible, the declarant shall immediately report to the local authorities or police or border guard unit where the abnormal situation occurred to confirm the abnormal situation according to the actual situation, sign and stamp on the TAD, and report to the customs authority for handling according to regulations.

3. Responsibilities of the Customs Sub-department at the port of entry (Customs Sub-department for transit):

a) Accept the dossier as prescribed in Clause 1 of this Article; inspect the condition of the goods; check the customs seal or special seal for goods in transit of priority enterprises.

If the inspection result does not reveal any violation signs, approve the goods to continue their transit journey.

If the inspection results indicate signs of violation, follow the provisions of Point b of this Clause.

b) Conduct inspection of the customs declaration dossier and physical inspection of the goods for consignments requiring dossier inspection and physical inspection.

If the inspection result does not reveal any violation signs regarding sealing or the condition of the goods, the Customs Sub-department at the port of entry approves the goods to continue their transit journey to the final destination through the ACTS System.

If the inspection result reveals violation signs regarding sealing or the goods are no longer in their original condition, the Director of the Customs Sub-department for transit will consider and decide based on the degree of violation whether to allow the continued transport of goods to the final destination through the ACTS System or to stop the transit procedure through the ACTS System, updating the inspection results through the ACTS System.

If continuing the transit journey is allowed, reseal the goods after completing the physical inspection, record it on the TAD, and update the new seal number through the ACTS System.

Notify the overseas departure customs authority about stopping the customs procedure through the ACTS System and guide the declarant to proceed with the transit goods procedure according to Vietnamese law.

c) Monitor and coordinate with the Customs Sub-department at the port of exit (Customs Sub-department for transit) to handle any abnormalities occurring during the transit of goods as prescribed;

d) Confirm the transit of goods across the border through the ACTS System.

4. Responsibilities of the Customs Sub-department at the port of exit (Customs Sub-department for transit):

a) Implement according to the provisions set out in points a and b of Clause 3 of this Article;

b) Monitor and coordinate with relevant agencies (guarantor agency, Customs Sub-department at the port of entry, transit country's customs authority, and destination country's customs authority) to handle any abnormalities occurring during the transit of goods as prescribed;

c) Confirm the transit of goods across the border through the ACTS System.

Article 14. Procedures for verifying the completion of transit activities

1. Cases requiring verification:

a) The customs authority at the point of departure does not receive the "arrival notification" from the customs authority at the destination through the ACTS System within two working days from the end date for completing transit procedures as determined by the ACTS System;

b) The customs authority at the point of departure does not receive confirmation of the "inspection results" from the customs authority at the destination within six working days from the date of receiving the "arrival notification" from the customs authority at the destination.

2. Procedures for verifying the completion of transit activities:

a) The customs authority at the point of departure sends a request through the ACTS System to the customs authority at the destination to confirm the status of the goods.

The customs authority at the destination performs confirmation of the "arrival notification" and "inspection results" through the ACTS System if the transit goods have been completed according to regulations;

b) In case the customs authority at the destination confirms that the goods have not reached the destination, the customs authority at the point of departure sends a document in the form issued by the Ministry of Finance requesting the declarant to provide documentation proving that the goods have completed ACTS customs procedures according to regulations within a maximum period of thirty days from the date the customs authority at the point of departure issues the request;

c) After completing the verification process, if there is sufficient documentation proving that the transit activity has completed customs procedures through the ACTS System according to regulations, the customs authority at the point of departure will notify through the ACTS System the customs authority at the destination and the initial customs authority at the destination in cases where the customs authority at the destination has changed during the transit journey;

d) In case the declarant cannot provide documentation proving that the goods have completed ACTS customs procedures according to regulations, the customs authority at the point of departure sends a document in the form issued by the Ministry of Finance requesting the customs authority in the last country under which the goods are placed under customs supervision through the ACTS System to verify the status of the transit goods;

If the customs authority in the last country under which the goods are placed under customs supervision confirms that the transit journey has ended, this authority will perform confirmation of the "arrival notification" and "inspection results" through the ACTS System;

e) In case there is insufficient evidence to prove that the transit activity has completed customs procedures through the ACTS System, or if the customs authority at the destination or the transit customs authority confirms that the transit activity has not been completed according to regulations, the customs authority at the point of departure shall implement recovery and support recovery of tax debts in accordance with Article 31 of this Decree.

Article 15. Supervision of transit goods through the ACTS System

1. Transit goods must be sealed in accordance with regulations, except for goods that cannot be sealed (loose cargo, oversized, overweight, bulky goods), the customs authority at the point of departure bases on the certification record to record information about the goods through the ACTS System.

2. Transit goods passing through the territory of Vietnam that require a transit goods permit from the Prime Minister shall be supervised using technical means or directly by customs officials.

Article 16. Sealing of Transit Goods through the ACTS System

1. Customs Sealing:

Transit goods must be sealed with customs seals or special seals (for priority transit enterprises), except for cases where customs seals cannot be applied (loose goods, oversized goods, overweight goods, bulky goods).

2. Special Seals shall be applied to transit goods of priority transit enterprises passing through the ACTS System if they meet the following technical conditions:

a) Ensuring safety under normal usage conditions;

b) Easy to inspect and identify;

c) Any activity aimed at breaking or moving them leaves visible traces;

d) Designed for single-use only; for special seals designed for multiple uses, identification marks must be shown after each use;

đ) Having identification marks that cannot be forged and are difficult to reproduce;

e) Materials used for sealing must withstand natural impacts and have anti-counterfeiting and anti-reuse capabilities;

g) For electronic seals (using electronic chips): when activated, if there is any damage attempt, this electronic seal must automatically transmit signals via satellite and send information to the customs authority and enterprise regarding the transport vehicle and goods contained therein (including location information of the vehicle);

h) Special seals (accepted by customs authorities upon registration of priority transit enterprises and updated with special seal numbers through the electronic data system) must ensure the supervision and management work of the customs authority.

In case of changing registered special seal numbers or registering additional special seals, priority transit enterprises must submit a list of additional special seal numbers according to the form issued by the Ministry of Finance to the General Department of Customs for updating on the electronic data system before use.

The customs authority checks the information and updates the electronic data system with changed or added special seal numbers within eight working hours from receiving the list of changed or added special seal numbers.

Article 17. Precautionary Procedures in Case of ACTS System Non-Operation (ACTS Transit Goods Precautionary Procedure)

1. The ACTS Transit Goods Precautionary Procedure shall be applied in the following cases:

a) Electronic systems at one of the customs authorities along the transit route are not operational;

b) The declarant's electronic declaration system is not operational;

c) The entire or part of the ACTS System connecting electronically between customs authorities and declarants is not operational.

The declarant may choose to follow the current legal procedures for transit goods in the exporting country or wait for the ACTS System to resume operation to continue the transit goods procedure through the ACTS System.

The declarant should contact the ACTS System support department at the customs authority where the transit operation is taking place for advice.

2. The departure customs authority can only apply the ACTS Transit Goods Precautionary Procedure when the TAD has been approved through the ACTS System and printed out from the ACTS System.

3. The ACTS Transit Goods Precautionary Procedure at the Transit Customs Sub-Department:

a) The declarant presents the goods together with the TAD and related documents to the Transit Customs Sub-Department;

b) The Customs Sub-Department checks the original condition of the goods; inspects the customs seal or special seal for priority transit enterprises' goods; compares the seal number on the TAD with the seal number on the transport vehicle or container carrying the transit goods;

c) If the inspection and comparison results stipulated in point b of this clause are consistent, the Customs Sub-Department approves, records the result, signs and stamps the back of the TAD; retains one copy of the approved, signed, and stamped TAD; returns the original TAD to the carrier to continue the transit journey;

d) If the inspection and comparison results stipulated in point b of this clause are inconsistent, the Head of the Customs Sub-Department bases the degree of inconsistency to consider and decide on the actual inspection of the goods.

When conducting an actual inspection of the goods, the Customs Sub-Department checks the information on the TAD document and other documents in the customs file against the actual goods; if the actual inspection results match the declaration, the Customs Sub-Department follows the provisions of point c of this clause. If the actual inspection results do not match the contents declared on the TAD, the Head of the Customs Sub-Department bases the actual inspection results to consider and decide on continuing the transit procedure or stopping the transit procedure.

Seal the goods after completing the actual inspection in cases where the goods are allowed to continue transportation to the destination and update the new seal number on the original TAD.

4. The ACTS Transit Goods Precautionary Procedure at the Destination Customs Authority:

a) The carrier must present the goods together with the original TAD to the customs authority;

b) The Customs Sub-Department checks the original condition of the goods; inspects the customs seal or special seal for priority transit enterprises' goods; compares the seal number on the TAD with the seal number on the transport vehicle or container carrying the transit goods;

c) If the inspection results stipulated in point b of this clause are consistent, the customs authority approves, records the result, signs and stamps the back of the TAD; retains one copy of the approved, signed, and stamped TAD; returns the original TAD to the carrier to conclude the transit journey and proceed with subsequent procedures (import procedures, transit to countries outside ASEAN);

d) If the inspection and comparison results stipulated in point b of this clause are inconsistent, the Customs Sub-Department bases the degree of inconsistency to consider and decide on the actual inspection of the goods.

When conducting on-site inspections of goods, the Customs Branch shall compare the information on the TAD and other documents in the customs file with the actual goods. If the inspection results match the declaration, the Customs Branch shall implement the provisions set forth in point c of this clause. In case the inspection results do not match the declaration on the TAD, violations shall be handled, and the Director of the Customs Branch shall base their decision to allow further procedures (import procedures, transit to non-ASEAN countries) on the actual inspection results.

5. In cases where priority transit enterprises are involved, the transit customs authority and the destination customs authority must notify the declarant about system unavailability, requiring the declarant to follow the procedures for transit as stipulated in clauses 3 and 4 of this Article.

6. Immediately upon the resumption of ACTS System operations, the transit customs authority and the destination point must update the information on the TAD: inspection results of the file, on-site inspection of goods, sealing status, seal number (if applicable) into the ACTS System.

The destination customs authority must send "arrival notifications" and "inspection results" to the departure customs authority to confirm the completion of the transit operation through the ACTS System.

Chapter III

ACTS SYSTEM

Article 18. The ACTS System

1. The ACTS System is established, managed, and operated by the General Department of Customs based on technical documents agreed upon among ASEAN member states participating in Protocol 7.

2. Electronic transactions conducted through the ACTS System include:

a) Declaration, receipt, and feedback of information related to transit procedures for goods;

b) Transmission of processing results of transit customs declarations to the declarant;

c) Exchange of information related to transit goods with the corresponding ACTS Systems of ASEAN countries along the transit route;

d) Connection of information with the corresponding ACTS Systems of ASEAN countries to facilitate transaction monitoring and statistics related to transit goods through the ACTS System;

3. The customs authority processes transit customs declarations and issues decisions on the clearance of transit goods through the ACTS System.

Article 19. Receiving, Processing Electronic Declarations and Providing Feedback Results Through the ACTS System

1. Receiving electronic declarations:

a) The ACTS System receives electronic declarations 24 hours a day, seven days a week;

b) The ACTS System automatically receives and provides feedback on electronic declarations to the declarant and relevant processing systems.

2. When processing transit customs declarations, the customs authority is responsible for:

a) Receiving and processing declarations;

b) Providing feedback on the status of receiving and processing transit customs declarations to the declarant.

Article 20. Principles of Operation of the ACTS System

1. Compliance with laws regarding state secrets protection, commercial confidentiality, business secrecy, and related regulations for electronic transactions conducted through the ACTS System.

2. Ensuring the accuracy, objectivity, completeness, and timeliness of electronic transactions through the ACTS System.

3. Ensuring information security in accordance with Decree No. 85/2016/NĐ-CP of July 1, 2016 of the Government on ensuring information system security at different levels.

4. Facilitating individuals and organizations within and outside the country when performing transit procedures through the ACTS System.

Article 21. Electronic Documents Exchanged Through the ACTS System

The exchange, use, sharing, and storage of electronic information and documents through the ACTS system must comply with the regulations on the implementation of transit procedures stipulated in this Decree and the provisions of the Law on Electronic Transactions.

Electronic information and documents transmitted and exchanged through the ACTS system are used by customs authorities during the process of implementing goods transit procedures.

Article 22. Registration, Modification, Supplement, and Cancellation of Effectiveness of User Accounts in the ACTS System

1. Account Registration:

a) Organizations shall register user accounts according to the form issued by the Ministry of Finance, which is published on the customs authority's electronic portal (address: https://www.customs.gov.vn) and send it to the customs email address: [email protected] to request registration;

b) Within three working days from the date of receiving the registration request, the customs authority will check the content of the user's registration and provide feedback via the registered user's email.

In cases where the provided information is incomplete or inappropriate, the customs authority will request the user to modify or supplement the information or provide additional information.

If the provided information is complete and appropriate, the customs authority will provide the user with account information and connection details to the ACTS system.

If the customs authority rejects the user's registration information, it will notify the user of the reasons for rejection.

c) After receiving feedback from the customs authority, the user shall proceed as follows:

If the customs authority requests modification or supplementation of information, the user shall make the necessary modifications or supplements and send the updated information to the customs authority's email.

If the customs authority accepts the registration information, the user shall use the feedback from the customs authority to access the ACTS system and proceed with subsequent steps to complete the registration.

2. Modification and Supplement of Registration Information for User Accounts:

a) For information related to individual user accounts of enterprises on the ACTS system (including name, surname, phone number, street name, city name, postal code, country name, password, email address): Users shall log into the customs electronic portal and update the modified or supplemented information through the ACTS system.

b) For requests to modify or supplement other information related to users:

Users shall access the customs electronic portal (address: https://www.customs.gov.vn) to obtain the form for requesting modification or supplementation of information issued by the Ministry of Finance.

After filling in the required modified or supplemented information, users shall submit the modification or supplementation request to the customs email address: [email protected].

Within three working days from the date of receiving the modification or supplementation request, the customs authority will check the content of the user's registration and provide feedback via the registered user's email.

If the provided information is incomplete or inappropriate, the customs authority will request modifications from the user.

If the provided information is complete and appropriate, the customs authority will accept the user's modification or supplementation request and update it through the ACTS system.

If the customs authority rejects the modification or supplementation information, it will notify the user of the reasons for rejection.

3. Cancellation of Effectiveness of User Account Information:

Users shall access the customs electronic portal (address: https://www.customs.gov.vn) to obtain the form for requesting cancellation of account effectiveness issued by the Ministry of Finance.

After filling in the required information according to the form, users shall submit the account cancellation request to the customs email address: [email protected].

Within three working days from the date of receiving the cancellation request, the customs authority will review the content of the user's request and provide feedback via the registered user's email.

If the provided information is incomplete or inappropriate, the customs authority will request modifications from the user.

If the provided information is complete and appropriate, the customs authority will accept the user's account cancellation request and update it through the ACTS system.

If the customs authority rejects the user's request, it will notify the user of the reasons for rejection.

Article 23. Handling Incidents

In cases where the ACTS System cannot exchange or provide information in electronic form:

1. The system management unit immediately notifies the person currently handling the transit procedure for the consignment of goods that has been approved by the departure customs authority through the ACTS System, and the countries along the transit route, using appropriate methods such as telephone calls or emails registered with the system management unit.

2. During the incident resolution period, the transit procedures for goods shall be carried out in accordance with the provisions of Article 17 of this Decree.

Chapter IV

GUARANTEES AND RECOVERY OF CUSTOMS DUTIES

Section 1

GUARANTEES AND DEPOSITS FOR TRANSIT GOODS

Article 24. Guarantee for Transit

1. Before registering the customs declaration for transit goods originating from Vietnam, the declarant selects either a single journey guarantee or a multiple journey guarantee and submits the letter of guarantee issued by a credit institution or foreign bank branch to the customs office where the declaration is registered for updating through the ACTS System. The guarantee is valid for all participating countries in the transit transportation route.

If the declarant is recognized as a preferred transit enterprise, they shall comply with the provisions of Article 26 of this Decree.

2. Calculation of the guarantee amount:

a) The guarantee amount for a single customs transit declaration is equal to 110% of the highest possible customs duty that may arise among the participating countries in the transit route. The ACTS System supports determining the guarantee amount for each customs transit declaration;

b) The multiple journey guarantee amount is determined based on a reference amount. The reference amount is equivalent to the total customs duties that could have arisen from previously processed transit consignments through the ACTS System over a minimum period of seven days.

A multiple journey guarantee is reduced or restored corresponding to the customs duties guaranteed that have completed their transit transportation without any irregularities occurring, or correspondingly to the customs duties paid by the declarant or guarantor when irregularities occur;

c) The import tariff rate and other taxes are calculated at the highest applicable rate according to the tax laws of the relevant country through which the transit goods pass. The import tariff rate in Vietnam is calculated according to the Most-Favored-Nation (MFN) Tariff Schedule;

d) The calculation of import tariffs and other taxes (if any) in Vietnam is carried out in accordance with the tax laws.

3. Currency of the guarantee and currency of payment:

a) Currency of the guarantee: For goods originating from Vietnam transiting through ASEAN member countries, the currency stated on the letter of guarantee is the Vietnamese Dong. In other cases, the currency stated on the letter of guarantee follows the regulations of the departure country.

b) Currency of payment: The currency for paying the generated customs duties to the Vietnamese customs authority is the Vietnamese Dong, except in cases permitted to declare and pay taxes in freely convertible foreign currencies according to the Law on Tax Administration. The exchange rate for taxation is implemented according to the regulations of the Customs Law.

4. Validity period of the guarantee: As specified on the letter of guarantee issued by the credit institution or foreign bank branch. If the letter of guarantee is accepted by the departure customs authority on or before the last day of its validity period, it remains valid until the end of the transit operations or when the declarant or guarantor has fully paid the customs duties, late payment fees, and penalties (if any) as stipulated.

5. The letter of guarantee issued by a credit institution or foreign bank branch in Vietnam must comply with current regulations on tax guarantees and meet the following criteria and requirements:

a) Name, address, phone number, email, tax code of the credit institution or foreign bank branch;

b) Name, address, phone number, email, tax code of the taxpayer or individual organization representing the taxpayer;

c) Guarantee amount: Implemented according to the provisions of Clause 2 of this Article;

d) Validity period of the guarantee: Implemented according to the provisions of Clause 4 of this Article;

đ) Name and address of the customs office where the customs transit declaration is registered, the customs office of the first transit country, second transit country, or more (if any), and the destination customs office;

e) Name and address of the headquarters of the credit institution or foreign bank branch issuing the guarantee in Vietnam;

g) Name and address of the branch or representative office of the credit institution or foreign bank branch issuing the guarantee in the first transit country;

h) Name and address of the branch or representative office of the credit institution or foreign bank branch issuing the guarantee in the second, third, or more transit countries (if any);

i) Name and address of the branch or representative office of the credit institution or foreign bank branch issuing the guarantee in the destination country;

k) The guarantor is responsible for the full duration of the guarantee's validity.

A sample letter of guarantee can be found on the ACTS System's website: https://acts.asean.org/

6. The guarantor must meet the following conditions:

a) Guarantors issuing guarantees in Vietnam are credit institutions or foreign bank branches operating under the Law on Credit Institutions, with headquarters or branches in Vietnam;

b) They have branches or transaction addresses within the territory of the countries participating in the transit transportation route, or must designate agents within the territory of the countries involved in the transit route.

7. In cases where the competent authority detects irregularities during the transit of goods as stipulated in Clause 15 of Article 3 of this Decree, they notify the customs office where the irregularities were discovered to take the following actions:

a) Within ninety days from the date the customs transit declaration was approved, notify the guarantor according to the model form issued by the Ministry of Finance about the incomplete transit consignment;

b) Within two hundred seventy days from the date the customs transit declaration was approved, notify the guarantor according to the model form issued by the Ministry of Finance to settle the customs duties for the transit consignment.

8. Responsibility for paying customs duties:

a) The declarant is responsible for paying the full customs duty within ten days from the date the customs authority issues the notification form promulgated by the Ministry of Finance.

b) The guarantor is responsible for paying the full customs duty within thirty days from the date of the customs authority's notification issued according to the form promulgated by the Ministry of Finance, in the event that the declarant does not fulfill or fulfills incompletely their tax obligation within the time limit stipulated in point a of this clause.

In addition to paying the full customs duty, the declarant or guarantor must also pay any late payment fees and penalties (if applicable) as prescribed by current laws.

c) If, more than ninety days from the deadline for tax payment specified in points a and b of this clause, the declarant or guarantor fails to fulfill their tax obligations, the customs authority shall enforce administrative decisions on taxes through compulsory measures as provided by law.

9. Monitoring, tracking, and handling guarantees:

The customs authority at the place where the transit declaration is registered shall monitor, track, and handle guarantees as follows:

a) Where the guarantor meets all conditions as prescribed and the guarantee letter is valid, the guarantee letter will be accepted and data updated via the ACTS system. The system automatically assigns a reference number for the guarantee (hereinafter referred to as GRN) for the declarant to declare on the transit customs declaration.

b) Where the guarantor does not meet all conditions as prescribed in Article 6 of this Decree, or the guarantee letter is invalid as prescribed in Article 5 of this Decree, the customs authority shall notify the declarant.

c) Where there is suspicion regarding the authenticity of the guarantee letter or the guarantee is being used but no longer meets the prescribed conditions, the customs authority shall suspend or revoke the guarantee and exchange written communications with the guarantor for verification.

If the verification results confirm the validity of the guarantee letter, the customs authority shall proceed as prescribed in point a of this clause.

If the verification results confirm the invalidity of the guarantee letter, the customs authority shall cancel the guarantee as prescribed in Article 28 of this Decree.

d) Where the declarant requests to modify the guarantee information, such updates or modifications can only be made before the customs authority at the departure point approves the transit customs declaration.

đ) Where, thirty days from the date the customs authority issues a notification regarding the amount of customs duty payable, the guarantor fails to comply with the commitment, within three working days, the customs authority shall issue a notification according to the form promulgated by the Ministry of Finance or through the electronic data system to inform all customs units nationwide and customs authorities of countries participating in the ACTS system so as not to accept guarantee letters issued by that guarantor.

e) Customs duties paid will be refunded to the declarant or guarantor if, within one year from the date of payment, competent authorities determine that there has been no violation during the transportation of goods in transit and the goods have completed their transit journey.

Where both the declarant and guarantor simultaneously pay the customs duty, any excess customs duty paid will be refunded to the guarantor.

The refund of customs duties shall be processed in accordance with the provisions governing the refund of excess tax payments under the law on tax administration.

g) Upon receiving information from the destination customs authority that the declarant has completed the transportation of goods in transit, the departure customs authority shall notify the guarantor according to the form promulgated by the Ministry of Finance or through the electronic data system.

Article 25. Deposit of Guarantee Money for Transiting Goods

1. Prior to registering the customs declaration for transiting goods, the declarant may choose the form of guarantee as depositing money with the customs authority to ensure payment of any customs duties that may arise from a customs declaration for transiting goods, and submit the payment receipt to the customs authority to update through the ACTS system.

2. The amount of deposit for a customs declaration for transiting goods, the currency of deposit, the tax currency, and the responsibility for paying customs duties shall be implemented according to the provisions of Article 24 of this Decree. The deposit amount for guaranteeing transiting goods is valid for countries participating in the transportation route of transiting goods.

In case the declarant registers a customs declaration for transiting goods in Vietnam, the deposit amount shall be transferred into the deposit account of the customs authority where the customs declaration for transiting goods is registered at the State Treasury.

3. Inspection, monitoring, and handling of deposits:

The customs authority where the customs declaration for transiting goods is registered shall inspect, monitor, and handle deposits as follows:

a) In case the declarant deposits the required amount according to regulations for a customs declaration for transiting goods, the customs authority where the customs declaration for transiting goods is registered shall update data through the ACTS system. The system automatically issues a GRN number for the declarant to declare on the customs declaration for transiting goods.

b) In case the deposit amount for a customs declaration for transiting goods is less than the required amount, the customs authority where the customs declaration for transiting goods is registered shall request the declarant to make up the difference.

4. After the transportation of transiting goods ends, the customs authority shall refund the deposit amount as per the regulations governing the refund of excess tax payments.

5. In case customs duty arrears occur, the handling of recovery and support for recovery of customs duty arrears shall be carried out according to the provisions of Article 31 of this Decree.

6. In case customs duty arrears occur in Vietnam, the customs authority where the arrears occur shall send a request in the format issued by the Ministry of Finance or through the electronic data system to the customs authority of the country holding the deposit amount, to transfer the equivalent amount of the customs duty payable into the revenue account of the customs authority at the State Treasury.

In case the customs authority of the country agrees to transfer the deposit amount in US dollars or its own payment currency, the exchange rate for conversion to Vietnamese Dong shall be implemented according to current laws.

Article 26. Exemption from Multiple Journey Guarantees

1. A business entity is exempted from multiple journey guarantees if it meets the following conditions:

a) Recognized as a preferred transit business entity;

b) The business entity has registered to operate transportation services or logistics services in accordance with the law;

c) The business entity does not have overdue tax, late payment penalties, fines, and is not subject to administrative coercive measures in the field of customs within two consecutive years up to the time of requesting exemption from guarantee.

2. Documents for exemption from guarantee:

a) A request for exemption from guarantee in the format issued by the Ministry of Finance: 01 original copy;

b) Decision recognizing the preferred transit business entity: 01 copy for the first time requesting exemption from guarantee.

3. Procedures for exemption from guarantee:

a) The declarant shall submit the documents specified in Clause 2 of this Article to the customs authority where the first customs declaration for transiting goods is registered through the ACTS system;

b) Within five working days from the date of receiving the request for exemption from guarantee, the customs authority shall check and compare with the provisions of Clause 1 of this Article and notify the declarant about the exemption from guarantee in the format issued by the Ministry of Finance, while updating information through the ACTS system for the declarant to declare the GRN number on the customs declaration for transiting goods.

4. When customs duties and other payable amounts for transiting goods arise, the transit business entity exempted from guarantee under this provision shall fulfill all tax obligations and other payable amounts in accordance with the law.

Article 27. Reduction of Guarantee for Multiple Journeys

1. The amount of guarantee shall be reduced to 50% of the reference amount if the declarant satisfies the following conditions:

a) Within a continuous period of two years up to the date when the declarant submits the request for reduction of guarantee, they have not been subject to administrative penalties for acts of tax evasion, tax fraud, smuggling, illegal cross-border transportation of goods, and have not committed administrative violations with forms and levels of fines exceeding the authority of the Head of the Customs Sub-department and equivalent positions;

b) They do not owe overdue taxes, late payment fees, and fines at the time of requesting the reduction of guarantee.

2. The amount of guarantee shall be reduced to 25% of the reference amount if the declarant satisfies the following conditions:

a) Within a continuous period of three years up to the date when the declarant submits the request for reduction of guarantee, they have not been subject to administrative penalties for acts of tax evasion, tax fraud, smuggling, illegal cross-border transportation of goods, and have not committed administrative violations with forms and levels of fines exceeding the authority of the Head of the Customs Sub-department and equivalent positions;

b) They do not owe overdue taxes, late payment fees, and fines at the time of requesting the reduction of guarantee.

3. The period of guarantee reduction is two years, starting from the date the customs authority issues the notice of guarantee reduction.

During the period of guarantee reduction, if the declarant violates any of the conditions stipulated in Clause 1 and Clause 2 of this Article, they will not continue to benefit from the guarantee reduction.

4. Procedures for reducing guarantee:

a) If the declarant requests a reduction in guarantee according to the provisions of Clause 1 and Clause 2 of this Article, they must submit a written request for reduction of guarantee in the form prescribed by the Ministry of Finance to the customs authority where the first customs transit declaration was registered using the guarantee through the ACTS system;

b) Within five working days from the date of receipt of the request for reduction of guarantee, the customs authority will check and compare against the provisions of Clause 1 and Clause 2 of this Article and notify the declarant about whether the reduction of guarantee is granted or not in the form prescribed by the Ministry of Finance.

In case the conditions for reduction of guarantee are met, the customs authority will update the information through the ACTS system so that the declarant can declare the GRN number on the customs transit declaration.

5. When customs duties and other payable amounts arise for transit goods, the enterprise benefiting from the guarantee reduction under this Article shall fulfill all tax obligations and other payable amounts in accordance with the law.

Article 28. Cancellation of Guarantee

1. When canceling the guarantee for a single journey or multiple journeys, the guarantor must notify the customs authority where the first customs transit declaration was registered using the guarantee via postal service or electronic data system regarding the cancellation of the guarantee according to the form prescribed by the Ministry of Finance.

2. The guarantee letter ceases to be valid for use on the fourteenth day after the guarantor submits the request to cancel the guarantee. The customs authority will update the cancellation of the guarantee through the ACTS system.

3. The cancellation of the guarantee does not affect the payment of customs duties and other payable amounts arising during the transportation of transit goods declared using the guarantee before the cancellation of the guarantee takes effect.

4. In cases where the guarantor no longer meets the conditions stipulated in Clause 6 of Article 24 of this Decree or the guarantee letter is no longer valid as prescribed in Point c, Clause 9 of Article 24 of this Decree, the customs authority will notify the declarant and guarantor about the cancellation of the guarantee letter in the form prescribed by the Ministry of Finance and update the information through the ACTS system.

Article 29. Rights and responsibilities of the guarantor

1. The guarantor has the following rights:

a) To be exempted from guarantee liability related to transit activities if within the time limit specified in Clause 7, Article 24 of this Decree, the guarantor does not receive notification about the incomplete transit journey and customs duty payment;

b) To be exempted from guarantee liability related to transit activities when the transit procedures for goods have been completed.

In case the transit activity ends due to false information but within one year from the date the departure customs authority approves the transported goods for transit, the guarantor does not receive notification about the customs duty payment, the guarantor is exempted from guarantee liability related to transit activities;

c) To be notified by the departure customs authority according to the form issued by the Ministry of Finance or through the electronic data system that the declarant has completed the transit procedures through the ACTS System;

d) To be refunded the amount of customs duties paid on behalf of the declarant in cases where within one year from the date the guarantor pays the customs duties, the competent authority determines that there is no violation related to transit activities or the related transit activities have ended.

2. The guarantor has the following responsibilities:

a) To pay the full amount of customs duties arising as prescribed in Clause 1, Article 30 of this Decree, but not exceeding the guarantee value stated in the guarantee letter, in cases where the declarant does not fulfill or fulfills incompletely the obligation to pay customs duties;

b) To cooperate and provide information upon request of the customs authority when receiving a document requesting verification of guarantee information and conditions as stipulated in Point c, Clause 9, Article 24 of this Decree;

c) To fully perform other guarantee obligations as prescribed by relevant laws.

Section 2

PAYMENT OF CUSTOMS DUTIES AND REDUCTION OF DUTIES; NON-COLLECTION OF DUTIES;

RECOVERY AND SUPPORT FOR RECOVERY OF CUSTOMS DUTY DEBTS

Article 30. Cases of Arising Customs Duties to be Paid and Reduction of Customs Duties

1. The following cases are determined as arising customs duties to be paid:

a) Goods illegally moved out of the transit procedures through the ACTS System as prescribed in Clause 15, Article 3 of this Decree, or after thirty days, the departure customs authority does not receive the declaration forms and documents of the declarant or of the customs authorities along the transit route proving that the transit procedures have been completed through the ACTS System as prescribed in Clause 2, Article 14 of this Decree;

b) Goods in transit being consumed domestically or changing in quantity, value, origin, commodity code compared with the declaration, and other cases leading to the arising of customs duties payable.

2. The place where the arising of customs duties payable is determined is the location where the goods in transit are illegally moved out or consumed domestically or changed in quantity, value, origin, commodity code, and other cases leading to the arising of customs duties. If the specific location cannot be determined, the place where the customs duties payable arise is the location where the customs authority or the competent authority discovers the illegal movement or domestic consumption or changes in quantity, value, origin, commodity code, and other cases leading to the arising of customs duties.

3. Those responsible for the customs duties payable include:

a) The declarant is primarily responsible for the customs duties arising during the transportation of goods in transit;

b) The guarantor is responsible for paying all or part of the customs duties arising during the transportation of goods in transit if the declarant does not fulfill or fulfills incompletely the obligation to pay customs duties;

c) The person moving or participating in the illegal movement of goods out of the transit procedures through the ACTS System is responsible for paying the corresponding customs duty debt for the quantity of goods illegally moved. The payment of customs duties shall be carried out in accordance with Clause 8, Article 24 of this Decree.

The owner or holder of goods illegally moved out of the transit procedures through the ACTS System is responsible for paying the corresponding customs duty debt for the quantity of goods owned or held due to illegal movement. The payment of customs duties shall be carried out in accordance with Clause 8, Article 24 of this Decree.

4. Reduction of duties, non-collection of import duties:

a) In cases where goods in transit are under customs supervision as prescribed by customs laws and suffer damage or loss due to objective reasons as stipulated in the Law on Export Tax, Import Tax, they are eligible for reduction of import duties. The reduction rate is equivalent to the actual loss rate of the goods. In cases where the goods are completely damaged or lost, no duty needs to be paid;

b) The procedures, authority for reducing import duties and non-collection of import duties are implemented in accordance with the Law on Export Tax, Import Tax and guiding documents.

Article 31. Recovery and Support for Recovery of Customs Tax Arrears

1. Recovery of customs tax arrears:

a) In cases where the amount of customs tax payable arises as prescribed in Clause 1, Article 30 of this Decree, the customs authority shall recalculate the amount of customs tax payable according to current regulations;

b) The recovery of customs tax arrears shall be carried out in accordance with the provisions of Clause 7, Clause 8, Article 24, Clause 2, Clause 3, Clause 4, Article 31 of this Decree and the tax laws.

2. Support for recovery of customs tax arrears:

a) In cases where the customs tax arrears have not been recovered or have not been fully recovered, the customs authority of the country where the customs tax arrears arise shall request the customs authority of the country participating in the transit journey to support the recovery of the tax arrears;

b) In cases where the person in transit chooses the form of depositing collateral, upon receiving the request from the customs authority where the customs tax arrears must be paid, the customs authority of the departure country shall be responsible for transferring the amount of collateral deposited by the declarant to the customs authority of the country where the customs tax arrears must be paid.

3. Forms of support for recovery of customs tax arrears:

The support for recovery of customs tax arrears shall be implemented in the form of written documents or through electronic systems. When there is a request for support in recovering customs tax arrears, the requesting customs authority must provide the requested customs authority with the following minimum information:

a) Name, taxpayer code of the declarant;

b) Transit declaration number, registration date;

c) GRN number;

d) Financial institution, foreign bank branch issuing guarantee;

đ) Amount and reason for the customs tax arrears;

e) Other information (if necessary).

The provision and confidentiality of information shall be carried out in accordance with the Law on Tax Administration and related laws.

4. Time limit for processing requests for support in recovering customs tax arrears:

Within sixty days from the date of receipt of the request for support, the requested customs authority must inform the requesting customs authority about the following information:

a) Activities conducted to recover customs tax arrears and the results of recovering customs tax arrears (if any);

b) Reasons for non-recovery, insufficient recovery, or refusal to support recovery of customs tax arrears.

5. Suspension of support for recovery of customs tax arrears:

If the declarant presents documents and materials certified by the competent authority proving that the customs tax arrears are being reviewed in the country where the debt arose, the requested customs authority shall temporarily suspend activities to recover customs tax arrears and issue a written notice to the requesting customs authority.

Chapter V

PRIORITY REGIME FOR TRANSIT ENTERPRISES

Article 32. Conditions for Applying the Priority Regime

A transit enterprise may apply the priority regime when it conducts transit of goods through the ACTS System if it meets the following conditions:

1. Conditions regarding the headquarters of the enterprise:

The transit enterprise is a Vietnamese enterprise with its headquarters in Vietnam or a branch or representative office of a foreign transit enterprise established and having its headquarters in Vietnam by a competent Vietnamese authority.

2. Conditions regarding the level of use of transit procedures through the ACTS System:

Enterprises conducting transit procedures for goods through the ACTS System must ensure that the volume of transit declarations processed through the ACTS System is at least 60% of the total number of transit declarations processed through ASEAN countries within one year up to the time the enterprise applies for recognition as a priority transit enterprise.

3. Conditions regarding compliance with good audit laws:

Annual financial statements must be audited by an auditing company qualified to operate auditing services under the independent auditing laws. The audit opinion on the financial statements stated in the audit report must be an unqualified opinion according to Vietnamese auditing standards.

4. Conditions regarding retention of customs records, accounting books, accounting vouchers, and other documents related to transit goods:

Customs records, accounting books, accounting vouchers, and other documents related to transit goods must be retained by the enterprise in accordance with the laws on customs.

5. Conditions regarding compliance with customs laws and tax laws:

a) As of the date the enterprise submits the application for recognition as a priority transit enterprise, the enterprise does not owe overdue taxes, late payment penalties, or fines.

b) Within five consecutive years up to the date the enterprise submits the application for recognition as a priority transit enterprise, the enterprise does not violate tax and customs laws to the extent of being penalized for the following acts:

Evading taxes, fraudulently evading taxes, smuggling, and illegally transporting goods across borders;

Administrative violations in the customs sector with forms and levels of punishment exceeding the authority of the Head of the Customs Branch and equivalent positions.

6. Conditions regarding the use of special seals: Special seals have been accepted by the customs authority.

Article 33. Preferential Regime

1. Exemption from guarantee as prescribed in Article 26 of this Decree.

2. Exemption from presenting TAD (Temporary Admission Declaration), presenting goods at customs authorities, except in cases where the Customs Control System encounters technical issues.

3. Exemption from inspecting customs documents, exemption from physically inspecting goods at the departure customs authority, except in cases where there are signs of violation of laws.

4. Permission to use special seals that have been accepted by customs authorities.

5. The period during which a transit enterprise enjoys the preferential regime is thirty-six months from the date of issuance of the decision recognizing the enterprise as eligible for preferential treatment.

Article 34. Procedures for Recognizing Transit Enterprises Eligible for Preferential Treatment

1. Responsibilities of the Enterprise

The enterprise shall compare with the conditions stipulated in Article 32 of this Decree, submit the application directly or through postal service to the General Department of Customs to request recognition as a transit enterprise eligible for preferential treatment, including the following documents:

a) A proposal letter according to the form issued by the Ministry of Finance: one original copy;

b) Certificate of Business Registration (for Vietnamese enterprises), establishment permit (for branches or representative offices of foreign enterprises): one copy;

c) Audited financial statements for the two most recent consecutive fiscal years: one copy;

d) Audit report for the two most recent consecutive fiscal years: one copy.

2. Responsibilities of the General Department of Customs:

a) To check the application documents for recognition as a transit enterprise eligible for preferential treatment to ensure their completeness, legality, and compliance; to cross-check information provided by the enterprise, including special seals (if applicable), against the conditions for applying the preferential regime as stipulated in Article 32 of this Decree.

In case the enterprise does not meet the conditions for applying the preferential regime as prescribed, within three working days from the date of receipt of all application documents, the General Department of Customs shall issue a written response to the enterprise, stating the reasons for non-compliance.

In case the enterprise meets the conditions for applying the preferential regime as prescribed, within three working days from the date of receipt of all application documents, the General Department of Customs shall issue a written notice to the enterprise regarding the inspection plan. The General Department of Customs will conduct on-site inspections at the enterprise ten working days after sending the notification letter to the enterprise.

b) On-site inspection at the enterprise: To review documents, certificates, and materials related to the transit activities conducted by the enterprise in the past five years to assess the enterprise's compliance with the conditions stipulated in Article 32 of this Decree.

The duration of the on-site inspection at the enterprise shall be a maximum of three working days from the date when the enterprise provides all required documents, certificates, and materials to the customs authority. Upon completion of the on-site inspection, a report on the results of the document inspection and the on-site inspection must be prepared, signed by both the customs authority and the enterprise, and kept in the file for recognition of the enterprise as eligible for preferential treatment.

Based on the report on the results of the on-site inspection at the enterprise, customs data, collected information, and verified supplementary information (if any), if the enterprise meets the conditions for applying the preferential regime, the Director-General of the General Department of Customs shall sign a decision recognizing the enterprise as eligible for preferential treatment according to the form issued by the Ministry of Finance. The decision recognizing the enterprise as eligible for preferential treatment shall be issued within ninety days from the date of receipt of the application for recognition as a transit enterprise eligible for preferential treatment as stipulated in Clause 1 of this Article.

In case the enterprise does not meet the conditions for applying the preferential regime, within three working days from the end of the inspection at the enterprise, the General Department of Customs shall issue a written response to the enterprise, stating the reasons for non-compliance.

Article 35. Procedures for suspending and revoking decisions recognizing priority transit enterprises

1. A priority transit enterprise shall have its decision recognizing it as such suspended in any of the following cases:

a) It no longer meets one of the conditions stipulated in Article 32 of this Decree and within thirty days from the date the enterprise or customs authority notifies that the enterprise no longer meets the prescribed conditions for priority treatment under Article 32 of this Decree, the enterprise does not take corrective measures or fails to correct the situation.

b) The enterprise violates customs laws to the extent that it is subject to administrative violation penalties in the field of customs with forms and levels of punishment within the jurisdiction of the Head of the Customs Sub-department and equivalent positions.

2. A priority transit enterprise shall have its decision recognizing it as such revoked in any of the following cases:

a) The enterprise has its decision recognizing it as a priority transit enterprise suspended according to point a, Clause 1 of this Article and within thirty days from the date the Director General of the General Department of Customs issues the suspension decision, the enterprise does not take corrective measures or fails to correct the situation.

b) The enterprise fails to complete the decision on handling violations issued by the customs authority within sixty days from the date the customs authority issues the administrative violation penalty decision as stipulated in point b, Clause 1 of this Article.

c) The enterprise violates tax and customs laws to the extent that it is subject to penalties for one of the following acts:

Evading taxes, fraudulent tax practices, and illegal cross-border transportation of goods;

Administrative violations in the field of customs with forms and levels of punishment exceeding the jurisdiction of the Head of the Customs Sub-department and equivalent positions.

d) The enterprise requests to abandon the preferential regime.

3. Responsibilities of priority transit enterprises:

a) Notify the General Department of Customs in the form issued by the Ministry of Finance about the conditions that the enterprise no longer meets as stipulated in Article 32 of this Decree.

b) Notify in the form issued by the Ministry of Finance and submit proof documents demonstrating that the enterprise has taken corrective measures for the conditions not met for the preferential regime within the time limit specified in point a, Clause 2 of this Article to the General Department of Customs.

c) Submit a request in the form issued by the Ministry of Finance to the General Department of Customs in the case where the enterprise requests to abandon the preferential regime.

d) Notify and submit proof documents demonstrating that the enterprise has completed the administrative violation penalty decision issued by the customs authority as stipulated in point b, Clause 1 of this Article to the General Department of Customs within the time limit specified in point b, Clause 2 of this Article.

4. Responsibilities of the General Department of Customs regarding the suspension and revocation of decisions recognizing priority transit enterprises:

a) Notify the enterprise in writing about the conditions stipulated in Article 32 of this Decree that the enterprise does not meet or based on the notification of the enterprise as stipulated in point a, Clause 3 of this Article, the Director General of the General Department of Customs signs the decision to suspend the decision recognizing the enterprise as a priority transit enterprise.

b) After collecting sufficient documents and determining that the enterprise has violated customs laws as stipulated in point b, Clause 1 of this Article, the Director General of the General Department of Customs signs the decision to suspend the decision recognizing the enterprise as a priority transit enterprise.

c) Accept, review the notification documents and proof documents as stipulated in point b, Clause 3 of this Article and compare them with the provisions of Article 32 of this Decree, implement inspections of the conditions that the enterprise has corrected according to Clause 2 of Article 34 of this Decree.

If the enterprise meets the conditions for applying the preferential regime as prescribed, the Director General of the General Department of Customs signs the decision to revoke the decision suspending the priority transit enterprise.

If the enterprise does not meet the prescribed conditions, the Director General of the General Department of Customs signs the decision to revoke the decision recognizing the priority transit enterprise.

d) Based on the notification documents and proof documents as stipulated in point d, Clause 3 of this Article, the Director General of the General Department of Customs signs the decision to revoke the decision suspending the priority transit enterprise.

5. Responsibilities of the General Department of Customs regarding the revocation of decisions recognizing priority transit enterprises:

a) Within three working days from the date of receipt of the enterprise's request to abandon the preferential regime, the Director General of the General Department of Customs signs the decision to revoke the decision recognizing the priority transit enterprise.

b) Within three working days from the date the deadline specified in points a and b, Clause 2 of this Article expires but the enterprise does not correct the preferential conditions or does not complete the administrative violation penalty decision of the customs authority; or after collecting sufficient documents and determining that the enterprise has violated customs laws as stipulated in point c, Clause 2 of this Article, the Director General of the General Department of Customs signs the decision to revoke the decision recognizing the priority transit enterprise.

6. The Ministry of Finance promulgates the model Decision to Suspend, Revoke the Decision Recognizing Priority Transit Enterprises, and the Decision to Revoke the Decision Suspending Priority Transit Enterprises. These decisions take effect from the date of issuance of the decision.

Article 36. Customs authority's management responsibility

1. Evaluate the report of the enterprise as stipulated in Clause 2, Article 37 of this Decree to consider whether the enterprise meets the conditions for priority transit enterprise as prescribed in Article 32 of this Decree.

2. Notify the parties to the Agreement on decisions to recognize, suspend, revoke recognition decisions of priority transit enterprises through the ACTS System.

Article 37. Responsibilities of priority transit enterprises

1. Comply with customs laws and tax laws.

2. Implement annual reporting according to the form issued by the Ministry of Finance and submit to the General Department of Customs no later than January 20 of the following year, or submit ad hoc reports upon request of the customs authority. Reports shall be sent directly or via postal service to the General Department of Customs.

3. Conduct self-inspection, identify, rectify errors, report to the customs authority; maintain the conditions for priority transit enterprises as prescribed in this Decree.

In case issues arise that affect the priority conditions, they must be promptly reported to the customs authority that issued the decision recognizing the priority transit enterprise for consideration and decision.

Chapter VI

IMPLEMENTING PROVISIONS

Article 38. Effective Date

This Decree takes effect from June 1, 2020.

Article 39. Implementation organization and enforcement responsibility

1. Ministry of Finance:

a) Take the lead and coordinate with relevant ministries and sectors to implement the provisions of this Decree;

b) Take the lead and coordinate with relevant ministries and sectors to develop, guide, and issue specific requirements regarding technical standards, development, deployment, management, and operation of information technology systems for ASEAN Transit ACTS activities.

2. The Ministry of Transport shall specify the routes for transporting goods under ASEAN Customs transit.

3. The Ministry of Industry and Trade shall take the lead and coordinate with relevant ministries to provide the list of prohibited transit goods, restricted transit goods, and goods requiring transit permits to the Ministry of Finance (General Department of Customs) to send to the ASEAN Secretariat immediately after this Decree takes effect. In cases where the list of prohibited transit goods, restricted transit goods, and goods requiring transit permits is amended or supplemented, the provision of the amended or supplemented list to the ASEAN Secretariat shall be carried out immediately after the competent authority issues the list.

2. The Ministers of National Defense, Public Security, and other ministers and sector heads shall be responsible for providing professional guidance and technical support to implement clinical pharmacy activities for medical examination and treatment facilities under their management authority.