Circular No. 81/2019/TT-BTC on risk management in customs operations

CIRCULAR

Regulations on risk management in customs operations

Pursuant to the Customs Law dated June 23, 2014;

Pursuant to Decree No. 08/2015/NĐ-CP of January 21, 2015 of the Government on customs procedures; customs inspection and supervision; export duties, import duties, and tax administration for exported and imported goods, and Decree No. 59/2018/NĐ-CP of April 20, 2018 of the Government amending and supplementing certain articles of Decree No. 08/2015/NĐ-CP of January 21, 2015 of the Government;

Pursuant to Decree No. 87/2017/NĐ-CP dated July 26, 2017 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;

At the proposal of the Director General of the General Department of Customs,

The Minister of Finance issues this Circular on risk management in customs operations.

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

This Circular stipulates:

1. Collection, processing, management, and utilization of risk management information; assessment of compliance with laws by declarants.

2. Classification of risk levels of declarants and activities of export, import, exit, entry, transit.

3. Application of risk management in customs operations.

Article 2. Applicability

1. The declarant.

2. Customs authorities, customs officers.

3. State agencies in coordinating state management of customs.

4. Organizations and individuals related to export, import, transit of goods, exit, entry, transit of means of transport.

Article 3. Explanation of Terms

1. Risk management application is the application of principles, procedures, measures, techniques of risk management and risk management information products to decide and implement decisions on customs inspection and supervision, post-clearance audit, inspection, and other customs operations.

2. Risk management information is customs information collected and processed to apply risk management in customs operations.

3. Risk management information system are information systems and data managed by customs authorities to collect, process, and provide risk management information products for customs operations.

4. Compliance level is the result of classification by customs authorities regarding the compliance with laws by declarants in managing export, import, exit, entry, transit activities.

5. Compliance evaluation criteria are standards for evaluating and classifying compliance levels in export, import, exit, entry, transit activities.

6. Compliance evaluation index are specific values of information indicators of compliance evaluation criteria.

7. Compliance evaluation is the collection, analysis, verification, and comparison of information about the process of operation and compliance with laws against compliance evaluation index criteria to classify the compliance level of declarants with laws.

8. Compliance management is the implementation by customs authorities of compliance evaluation, classification of risk levels of declarants, thereby applying appropriate management measures according to each level to ensure the full and accurate enforcement of customs laws.

9. Risk analysis is the prediction of frequency and consequences of risks.

10. Risk level is the severity of risk determined based on the combination of frequency and consequences of risk.

11. Risk level classification criteria are standards for evaluating and classifying risk levels in managing export, import, exit, entry, transit activities.

12. Risk level classification index are specific values of information indicators of risk level classification criteria.

13. Risk assessment is the classification, examination, and comparison of risk levels with risk level classification criteria indices and the handling of previous risks to prioritize.

14. Risk indicator is a factor carrying information reflecting potential risks of violations of customs laws.

15. Violation indicator is a factor carrying information, through which there is sufficient basis to assess the occurrence of violations of customs laws.

16. List of risky goods is a list of goods at risk of smuggling, tax evasion, trade fraud, and other violations of customs laws.

17. Identification of key points is the use of compliance evaluation results, risk assessment to decide on the application of risk control measures in customs inspection and supervision, post-clearance audit, inspection, and other customs measures for export, import, exit, entry, transit activities.

18. Key enterprise is an enterprise (assessed) with high risk in customs operations in each field of export, import, transit during each period.

19. Key person exiting, entering, transiting is a person exiting, entering, transiting (assessed) with high risk in each field of exit, entry, transit during each period.

20. Risk file is a collection of information and data about risk subjects or situations where risks arise, stored in the form of text or electronic data, to serve monitoring, management, and identification of key points for customs inspection and supervision, post-clearance audit, inspection, and other customs measures for export, import, exit, entry, transit activities.

21. Risk control is the application by customs authorities of inspection, supervision, control measures, post-clearance audit, inspection, investigation, and other customs measures to prevent, stop, reduce the frequency and consequences, or detect and handle violations of customs laws.

22. Risk control plan is an overall program on risk control issued by the Director General of the General Department of Customs to organize, assign tasks, coordinate resources, and risk control measures in managing export, import, exit, entry, transit activities.

23. Compliance measurement is the decision to conduct sample checks, compile, and analyze information and data according to indices to determine compliance levels in each field of export, import, transit activities.

Article 4. Principles of Risk Management

1. Risk management information is collected from domestic and foreign sources in accordance with the provisions of the law; it is centrally managed at the General Department of Customs through the application of information technology systems and is processed, shared, and provided to customs units at all levels and other state management agencies in accordance with the provisions of the law.

2. The assessment of compliance with the law and classification of risk levels is carried out automatically and accurately based on the criteria stipulated in this Circular.

3. Decisions on customs inspection, supervision, post-clearance examination, inspection, or implementation of other customs operational measures are made based on the results of compliance assessment, risk level classification, risk management information available in the customs information system, and information on violation signs and other risk indicators provided at the time of decision-making or selection.

4. Customs authorities focus on inspecting, supervising, and controlling high and medium risks and apply appropriate measures for low risks.

5. In cases where the system encounters technical issues or fails to meet the requirements for risk management in customs operations as specified in this Circular, risk management is implemented manually through approval of proposal documents or issuance of documents by authorized persons to apply customs operational measures.

6. In cases where the provisions of the law, this Circular, and other regulations and guidelines on risk management have been properly followed, customs officials are exempted from personal responsibility in accordance with the provisions of the law.

Article 5. Technical Measures for Risk Management in Customs Operations

Technical measures for risk management in customs operations include:

1. Collection and processing of risk management information.

2. Management and evaluation of compliance with the law, classification of risk levels for declarants.

3. Risk analysis and assessment.

4. Management, development, updating, and application of criteria for evaluating compliance with the law, criteria for classifying risk levels for declarants, and criteria for classifying risk levels in export, import, exit, entry, and transit activities.

5. Inspection and evaluation of the implementation and application of risk management and compliance management in customs operations.

6. Other technical measures for risk management include:

a) Establishment and management of the List of Risk Goods;

b) Establishment and management of Risk Files;

c) Establishment and management of Key Enterprise Files;

d) Measurement of customs compliance in export, import, and transit activities;

đ) Management of Risk Control Plans; Special Topics on Risk Control; Post-Detection Analysis and Handling of Typical Smuggling, Tax Evasion, and Commercial Fraud Cases to Forecast Trends and Issue Risk Warnings.

Chapter II

COLLECTION AND PROCESSING OF RISK MANAGEMENT INFORMATION

Article 6. Risk Management Information

1. Risk management information includes:

a) Information about declarants:

a.1) Information on enterprises engaged in export, import, and transit of goods;

a.2) Information on customs agency service providers;

a.3) Information on international postal service and express delivery service enterprises;

a.4) Information on vehicle owners, vehicle drivers, or persons authorized by vehicle owners for exit, entry, and transit;

a.5) Information on persons authorized by goods owners according to Clause 3, Article 1 of Government Decree No. 59/2018/ND-CP dated April 20, 2018 amending and supplementing certain articles of Government Decree No. 08/2015/ND-CP dated January 21, 2015 detailing and providing measures to implement the Law on Customs regarding customs procedures, inspections, supervision, and control (hereinafter referred to as Government Decree No. 59/2018/ND-CP).

b) Information on exported, imported, and transited goods;

c) Information on vehicles for exit, entry, and transit;

d) Information on persons and luggage of persons exiting, entering, and transiting;

đ) Information on organizations and individuals participating or related to declarants, exported, imported, and transited goods:

đ.1) Information on organizations and individuals as foreign-invested business partners;

đ.2) Information on duty-free goods trading enterprises;

đ.3) Information on port, warehouse, and yard operating enterprises;

đ.4) Information on bonded warehouse operating enterprises;

đ.5) Information on consolidated cargo collection point operating enterprises;

đ.6) Information on consolidated cargo collection service operating enterprises;

đ.7) Information on export, import, and transit goods transportation operating enterprises;

đ.8) Information on export, import goods inspection service operating enterprises;

e) Information on the results of customs procedures, application of risk control measures, and operational information generated, provided, and processed during the application of risk management as stipulated in this Circular and related regulatory documents;

g) Other relevant information concerning state management activities in customs.

2. The risk management information detailed in points a, b, c, d, and đ of Clause 1 of this Article is specified in Appendix I of the Risk Management Information Index issued together with this Circular.

Article 7. Collection and Processing of Risk Management Information

1. Risk management information shall be collected from the following sources:

a) From the system of information and data within and outside the customs sector;

b) From state management agencies, organizations, and individuals related to the customs field as prescribed in Articles 107 and 108 of Decree No. 08/2015/ND-CP dated January 21, 2015 of the Government detailing and providing measures for implementation of the Customs Law on customs procedures, inspection, supervision, and control (hereinafter referred to as Decree No. 08/2015/ND-CP);

c) From customs authorities of other countries, relevant agencies, organizations, and individuals abroad in accordance with the law;

d) From receiving information provided by organizations and individuals exporting, importing, exiting, entering, or transiting goods in accordance with the law;

đ) Purchasing information in accordance with the prescribed regime;

e) From hotlines or email of the General Department of Customs;

g) From the process of inspecting, supervising, and controlling customs on exported, imported, or transiting goods; means of transport exiting, entering, or transiting;

h) From other necessary operational measures as prescribed by law.

2. Risk management information shall be collected in the following forms:

a) Providing and exchanging in the form of electronic data, electronic documents, emails, messages from officially announced phone numbers by customs authorities;

b) Providing and exchanging in writing, telegrams, telexes, faxes, paper documents;

c) Exchanging directly based on minutes of record, confirmed by all parties involved; sending representatives to work, verify, collect information and documents; organizing meetings and other forms.

3. After collection, risk management information shall be processed as follows:

a) Evaluating the relevance of the information to the needs and purposes of using the information; examining the reliability and accuracy of the information;

b) Comparing the collected information with information on the customs sector's information system and information obtained from different sources; classifying, arranging, and storing the information;

c) Analyzing the information, identifying factors constituting information products serving risk management;

d) Summarizing and linking related factors identified through analysis; clarifying the content and value of the collected information and completing the risk management information product.

Article 8. Construction, Management, and Use of Risk Management Information

1. Risk management information shall be constructed and managed according to a centralized information and data system, updated, integrated, processed, stored, and provided, shared in accordance with this Circular. In case of system failure or network error, updating, integrating, processing, and storing information on the system shall be carried out immediately after the system failure or error is resolved.

2. The risk management information system shall be constructed and connected online with electronic data processing systems and related information and data systems.

3. Connecting and sharing risk management information with organizations and individuals outside the customs sector; with customs authorities of other countries and international organizations must comply with regulations on information technology security systems and regulations on protecting state secrets and customs sector secrets as prescribed by Vietnamese law, international treaties, and international agreements to which Vietnam is a member.

4. Customs authorities shall apply measures for data security, computer safety, and cybersecurity in accordance with the law.

Chapter III

ASSESSMENT OF CUSTOMS DECLARANT'S COMPLIANCE WITH THE LAW AND RISK LEVEL CLASSIFICATION IN CUSTOMS OPERATIONAL ACTIVITIES

Section 1
ASSESSMENT OF CUSTOMS DECLARANT'S COMPLIANCE WITH THE LAW

Article 9. Management of Legal Compliance for Customs Declaration Subjects

1. The content of management of legal compliance for customs declaration subjects includes:

a) Building and managing files of customs declaration subjects; establishing and managing risk files for customs declaration subjects with a risk of non-compliance with laws;

b) Establishing criteria and index criteria for evaluating legal compliance for customs declaration subjects;

c) Evaluating legal compliance for customs declaration subjects;

d) Classifying the level of risk for customs declaration subjects;

đ) Applying customs inspection, supervision, control measures, post-clearance audit, inspection, and other business measures for customs declaration subjects in accordance with the provisions of the law;

e) Inspecting and evaluating legal compliance for customs declaration subjects;

g) Organizing customs-business partnership programs, exchanging and providing information to support customs declaration subjects in complying with the law.

2. Customs authorities organize the uniform application of the mechanism for managing legal compliance for customs declaration subjects.

3. The evaluation of legal compliance for enterprises operating warehouses, yards, and ports shall be carried out as for enterprises engaged in export, import, and transit activities.

Article 10. Classification of Levels of Legal Compliance for Customs Declaration Subjects

Customs declaration subjects are evaluated and classified according to one of the following levels of legal compliance:

1. Level 1: Priority Enterprise.

2. Level 2: High Compliance.

3. Level 3: Medium Compliance.

4. Level 4: Low Compliance.

5. Level 5: Non-Compliance.

Article 11. Criteria for Evaluating Legal Compliance for Customs Declaration Subjects

1. The criteria for evaluating priority enterprises (Level 1) are implemented in accordance with Article 10 of Decree No. 08/2015/NĐ-CP and Articles 12, 13, 14, 15, 16, and 17 of Circular No. 72/2015/TT-BTC dated May 12, 2015 of the Ministry of Finance on the application of preferential regimes in the implementation of customs procedures and customs inspection and supervision for exported and imported goods of enterprises (hereinafter referred to as Circular No. 72/2015/TT-BTC).

2. The criteria for evaluating high compliance customs declaration subjects (Level 2) are stipulated in Appendix II attached hereto.

3. The criteria for evaluating medium compliance customs declaration subjects (Level 3) are stipulated in Appendix III attached hereto.

4. The criteria for evaluating low compliance customs declaration subjects (Level 4) are stipulated in Appendix IV attached hereto.

5. The criteria for evaluating non-compliant customs declaration subjects (Level 5) are stipulated in Appendix V attached hereto.

Article 12. Methods for Evaluating Legal Compliance for Customs Declaration Subjects

1. The level of legal compliance for customs declaration subjects is automatically assessed by the information technology system at 00 hours daily at the General Department of Customs based on the integration and processing of customs information data according to the legal compliance evaluation criteria prescribed in Clause 1, Article 14 of Decree No. 08/2015/NĐ-CP, Article 11 of this Circular, and according to the following principles:

a) An enterprise is evaluated as a priority enterprise (Level 1) in accordance with Circular No. 72/2015/TT-BTC and Circular No. 07/2019/TT-BTC dated January 28, 2019 amending and supplementing certain articles of Circular No. 72/2015/TT-BTC of the Ministry of Finance on the application of preferential regimes in the implementation of customs procedures and customs inspection and supervision for exported and imported goods of enterprises;

b) A customs declaration subject is initially evaluated or subsequently adjusted to Level 2, Level 3, or Level 4 when meeting all corresponding criteria stipulated in Appendix II, Appendix III, or Appendix IV attached hereto;

c) A customs declaration subject is evaluated or adjusted to reduce the level of compliance to Level 5 when meeting one of the criteria stipulated in Appendix V attached hereto. The adjustment to increase the level of compliance from Level 5 is carried out as follows:

c.1) In case there is one of the acts prescribed in Point 1, Section I of Appendix VI attached hereto and meeting all the criteria for evaluating legal compliance of a higher level within 365 days from the date of the previous compliance level change, the customs declaration subject may be raised to a maximum of one level;

c.2) In case there is one of the acts prescribed in Point 2, Section I of Appendix VI attached hereto and meeting all the criteria for evaluating legal compliance of a higher level within 365 days from the date of the previous compliance level change, the customs declaration subject may be raised to Level 4. Subsequent evaluations are carried out in accordance with Point b of this clause;

c.3) In case there is none of the acts prescribed in Section I of Appendix VI attached hereto and meeting all the criteria for evaluating legal compliance of a higher level, the customs declaration subject may be raised to the corresponding compliance level.

2. In case of system failure, the result of the compliance evaluation for customs declaration subjects is determined based on the evaluation result of the nearest preceding day before the occurrence of the failure.

3. Customs authorities monitor and review the compliance evaluation results of customs declaration subjects through the following methods:

a) Randomly selecting customs declaration subjects for analysis, evaluation, and adjustment of their compliance levels according to the criteria for evaluating compliance set forth in Article 11 of this Circular;

b) Cooperating to exchange and provide information with relevant agencies regarding the process of compliance with the law by customs declaration subjects to verify emerging information.

4. Customs authorities support the enhancement of compliance levels of customs declaration subjects through applications on the Customs Electronic Portal as follows:

a) Searching for compliance evaluation results and reasons for classifying compliance levels;

b) Exchanging and providing feedback on information for compliance evaluation and reflecting issues and recommendations related to compliance evaluation.

In case the application on the Customs Electronic Portal does not meet technical requirements, the exchange and provision of information will be conducted in writing.

5. The customs authority encourages declarants to voluntarily comply with the law by organizing customs-business partnership programs, memorandums of understanding, dialogue meetings, seminars, training sessions, and supporting declarants to voluntarily comply with customs laws.

Section 2. CLASSIFICATION OF RISK LEVELS IN CUSTOMS OPERATIONS

Article 13. Principles for Classifying Risk Levels

1. The risk level in export, import, exit, entry, and transit activities shall be classified based on the level of compliance with the law by the declarant and related factors as prescribed in Article 15 of Decree No. 08/2015/NĐ-CP.

2. In cases where the related factors prescribed in Article 15 of Decree No. 08/2015/NĐ-CP are identical, the declarant with a higher level of compliance with the law will be classified with a lower risk level and vice versa.

3. The customs authority manages and applies the information management risk system to automatically integrate and process data according to the criteria set forth in Articles 15 and 17 of this Circular to classify risk levels in customs operations.

Article 14. Classification of Declarant Risk Levels

Exporting, importing, transiting enterprises; customs clearance agents; international postal service providers; international express delivery service providers; owners of means of transport, persons authorized by the owner of the means of transport for exit, entry, and transit; enterprises operating warehouses, yards, and ports shall be classified into one of the following categories:

1. Category 1: Priority enterprises as stipulated in point a, Clause 1, Article 12 of this Circular.

2. Category 2: Low-risk declarants.

3. Category 3: Medium-low-risk declarants.

4. Category 4: Medium-risk declarants.

5. Category 5: High-risk declarants.

6. Category 6: Very high-risk declarants.

7. Category 7: Declarants who have not engaged in export or import activities within 365 days prior to the evaluation date and have not violated any regulations.

8. Category 8: Declarants who have not engaged in export or import activities within 365 days prior to the evaluation date but have been penalized for violations except those specified for Category 9 under this Article.

9. Category 9: Declarants who have been penalized for violations concerning the acts specified in Part I and Part II of Appendix VI issued together with this Circular within 365 days prior to the evaluation date.

Article 15. Criteria for Classifying Declarant Risk Levels

The risk levels of declarants and enterprises operating warehouses, yards, and ports from Category 2 to Category 6 shall be classified based on the factors prescribed in Article 15 of Decree No. 08/2015/NĐ-CP as follows:

1. The level of compliance of the declarant and enterprises operating warehouses, yards, and ports as stipulated in Article 10 of this Circular.

2. Time of establishment; place of operation; number of employees; type of enterprise; information about the enterprise owner; capital; participation in the stock market.

3. Duration, frequency of activity, route; goods, type of export or import; value of export or import activities, total taxes paid; revenue, profit; results of customs inspections, post-clearance audits, investigations, and inspections conducted by the customs authority, tax authority, and other relevant authorities.

4. Frequency, nature, degree of violation, and compliance with customs laws; tax laws; postal, transportation, trade laws, and other laws related to export, import, exit, entry, and transit activities.

5. History of violations related to the consignor, sender, or recipient of goods.

6. Customs management objectives and requirements during each period.

7. Indicators of risk and violations of customs laws.

Article 16. Classification of risk levels for export, import, departure, entry, and transit activities in customs operations

Risk levels for export, import, departure, entry, and transit activities in customs operations are classified into one of the following levels:

1. High risk.

2. Medium risk.

3. Low risk.

Article 17. Criteria for classifying risk levels for export, import, departure, entry, and transit activities in customs operations

Risk levels for export, import, departure, entry, and transit activities in customs operations are classified based on factors stipulated in Article 15 of Decree No. 08/2015/NĐ-CP as follows:

1. Compliance level and risk level of the declarant as specified in Clause 10 and 14 of this Circular.

2. Management policies and tax policies for exported, imported, and transited goods.

3. History of violations related to:

a) The consignor, sender, recipient, and address of the sender of goods;

b) Exported, imported, and transited goods;

c) The owner of the means of transport for departure, entry, and transit;

d) Departing, entering, and transiting persons and their baggage.

4. Characteristics, features, origin, route, and mode of transportation of:

a) Exported, imported, and transited goods;

b) Means of transport for departure, entry, and transit;

c) Departing, entering, and transiting persons and their baggage.

5. The declarant, exported, imported, and transited goods; means of transport for departure, entry, and transit; departing, entering, and transiting persons; and baggage of departing, entering, and transiting persons are subjects of management under the Risk Control Plan, Risk Control Special Topic, and Risk File.

6. Customs management objectives and requirements during each period.

7. Results of implementing relevant operational activities concerning exported, imported, and transited goods; means of transport for departure, entry, and transit; departing, entering, and transiting persons; and baggage of departing, entering, and transiting persons.

8. Operational information and risk warnings about the subject, method, and tactics of smuggling, tax evasion, illegal transportation of goods across borders, and commercial fraud in export, import, departure, entry, and transit activities during each period.

9. Results of assessing compliance with the law for businesses operating warehouses, yards, ports; and service providers for export, import, departure, entry, and transit activities.

10. Signs of risk and signs of violation of customs laws.

11. Random selection according to management requirements during each period.

12. Other factors related to the process of export, import, departure, entry, and transit activities.

Article 18. Method of Classifying Risk Levels

1. The risk level of the declarant, export, import, departure, entry, and transit activities is automatically assessed and classified periodically based on processing customs data and information according to the factors stipulated in Article 15 of Decree No. 08/2015/NĐ-CP and Articles 15 and 17 of this Circular.

2. The system automatically updates the assessment and classification of the risk level of the declarant when the compliance level of the declarant and the factors stipulated in Article 15 of this Circular change.

3. In cases where the electronic customs data processing system has not automatically adjusted the risk level, updating the results of the risk level classification for the declarant is carried out manually by civil servants.

Article 19. List of Risk Goods

1. The list of risk goods shall be issued by customs authorities and used as a source of information for analyzing and assessing risks, supporting decisions to apply customs operational measures and recommendations, and developing management systems and policies for exported and imported goods.

The list of risk goods shall not be used as the sole basis for deciding to conduct customs inspections, supervision, post-clearance inspections, audits, and other operational activities related to export, import, and transit operations.

2. The lists of risk goods in customs operational activities include:

a) List of risk goods concerning specialized management policies;

b) List of risk goods concerning commodity classification;

c) List of risk goods concerning valuation;

d) List of risk goods concerning origin;

đ) List of risk goods concerning the environment;

e) List of risk goods concerning counterfeit goods and intellectual property rights protection;

g) List of risk goods concerning narcotics and precursor substances;

h) List of risk goods concerning weapons and radioactive materials;

i) List of risk goods concerning smuggling and illegal border crossing.

3. The list of risk goods includes the following contents:

a) Export, import sectors or only one (01) export sector or import sector;

b) Names and detailed codes of risk goods according to the 8-digit, 10-digit HS code, standardized to meet data processing requirements on the system;

c) Types and characteristics to identify goods;

d) Risk indicators and other relevant information.

4. Criteria for building the list of risk goods include:

a) Criteria for establishing, amending, and supplementing the list of risk goods concerning valuation and the list of enterprises with risk concerning valuation shall be implemented in accordance with Article 24 of Circular No. 39/2015/TT-BTC dated March 25, 2015, and Clause 13 of Article 1 of Circular No. 60/2019/TT-BTC dated August 30, 2019, which amends and supplements certain provisions of Circular No. 39/2015/TT-BTC of the Ministry of Finance on customs value for exported and imported goods;

b) Criteria for establishing the list of risk goods at points a, b, d, đ, e, g, h, and point i of Clause 1 of this Article shall be implemented in accordance with Article 17 of this Circular.

5. The list of risk goods shall be monitored, evaluated, amended, and supplemented in accordance with the criteria stipulated in Clause 4 of this Article, in line with the actual management of export and import activities and updated and managed on the risk management information system.

Article 1. SubjectsPart IV

APPLICATION OF RISK MANAGEMENT IN CUSTOMS OPERATIONS

Article 20. Application of risk management in customs operations

1. Customs authorities shall decide to apply operational measures based on the results of compliance assessment of declarants under Article 10, the results of risk level classification in customs operations under Articles 14 and 16 of this Circular as follows:

a) Decide to inspect goods during loading, unloading, storage at ports, warehouses, border areas;

b) Decide to inspect during customs procedures;

c) Select post-clearance inspection;

d) Decide to inspect in the management of processing, production of exported goods, export processing zones;

đ) Decide to inspect in the management of duty-free trade activities;

e) Classify and decide to inspect tax refund, non-payment of taxes for exported and imported goods;

g) Decide on monitoring and inspection methods for goods during customs supervision;

h) Decide to take samples for specialized inspections within the customs area;

i) Decide to inspect and supervise means of transport exiting, entering, transiting; persons exiting, entering, transiting; baggage of persons exiting, entering, transiting;

k) Decide to take samples for analysis and testing of goods;

l) Select specialized audits and apply risk management in other operational activities.

2. Customs authorities shall carry out inspections and supervision in accordance with the law and information provided on the system. In case of suspicious information or discovery of violations of customs laws, the Deputy Minister of the customs authority shall decide to change the form and level of inspection within their authority and bear responsibility for their decision.

Article 21. Decision to inspect goods during loading, unloading, storage at ports, warehouses, yards, and border areas

Based on the level of risk during loading, unloading, storage at ports, warehouses, yards, and border areas, and business information at the time of decision issuance, the customs authority decides to inspect goods and announces it on the Customs Electronic Data Processing System as follows:

1. High risk, medium risk: Inspect goods physically through one or a combination of the following methods:

a) Non-intrusive inspection using X-ray machines;

b) Inspection using other technical means;

c) Direct inspection by customs officials.

2. Low risk: Not yet conducting inspections or non-intrusive inspections using X-ray machines according to a random selection ratio to assess compliance with customs laws.

Article 22. Decision to inspect during customs procedures

1. Decision to inspect for exported and imported goods

Based on the level of risk during customs procedures, business information at the time of decision issuance, and information on the declaration form, the customs authority decides to conduct customs inspections and announces it on the Customs Electronic Data Processing System as follows:

a) Lane 1 (Green): Accepting customs declaration information for low risk or according to a random selection index;

b) Lane 2 (Yellow): Inspecting customs documents when handling customs procedures for medium risk or according to a random selection index;

c) Lane 3 (Red): Physically inspecting goods based on reviewing relevant documents in the customs file when handling customs procedures for high risk or according to a random selection index as follows:

c.1) Direct inspection by customs officials;

c.2) Inspection using X-ray machines or other technical means, other business measures;

c.3) Inspection through business analysis and testing of goods.

2. Decision to inspect for independently transported goods

Based on the level of risk during customs procedures, business information at the time of decision issuance, and information on the declaration form, the customs authority decides to conduct customs inspections and announces it on the Customs Electronic Data Processing System as follows:

a) Lane 1 (Green): Accepting customs declaration information for low risk;

b) Lane 2 (Yellow): Inspecting relevant documents in the customs file when handling customs procedures for high risk and medium risk.

Article 23. Selection of post-clearance inspections

1. Selection of post-clearance inspections based on risk management

Based on the level of risk in post-clearance activities, the customs authority selects post-clearance inspections and announces it on the Customs Electronic Data Processing System as follows:

a) High risk, medium risk: Selecting to perform post-clearance inspections;

b) Low risk: Not yet conducting post-clearance inspections, continuing to assess compliance with the law, classifying risk levels for the next assessment period.

2. Selection of post-clearance inspections to evaluate compliance with the law for declarants

The inspection to evaluate compliance of enterprises as stipulated in Clause 3, Article 78 of the Customs Law shall be selected for inspection not exceeding 0.5% of the total number of enterprises engaged in export and import activities from January 1 to December 31 of the preceding year of the assessment year.

Article 24. Decision to inspect in managing processing, production of export goods, export processing enterprises

Based on the level of risk in processing, production of export goods, export processing enterprises, and business information at the time of decision issuance, the customs authority decides to inspect and announces it on the Customs Electronic Data Processing System as follows:

1. High risk: Conducting inspections on one or several of the following contents:

a) Inspecting the processing and production capacity, storage facilities for raw materials, components, machinery, equipment, and export products as prescribed in Clause 1, Article 39 of Decree No. 08/2015/ND-CP and amended and supplemented in Clause 17, Article 1 of Decree No. 59/2018/ND-CP;

b) Inspecting the situation of usage and inventory of raw materials, components, machinery, equipment, and export products as prescribed in Clause 1, Article 40 of Decree No. 08/2015/ND-CP and amended and supplemented in Clause 18, Article 1 of Decree No. 59/2018/ND-CP;

c) Inspecting the final report on the use of imported raw materials, components, and export products as prescribed in Clause 2, Article 41 of Decree No. 08/2015/ND-CP.

2. Medium risk: Randomly selecting enterprises and conducting inspections on one or several contents as prescribed in Articles 39, 40, and 41 of Decree No. 08/2015/ND-CP and amended and supplemented in Clauses 17 and 18, Article 1 of Decree No. 59/2018/ND-CP.

3. Low risk: Not yet conducting inspections, continuing to assess compliance with the law, classifying risk levels for the next assessment period.

Article 25. Decision on Inspection in the Management of Duty-Free Goods Business Activities

Based on the level of risk in duty-free goods business activities and the operational information at the time of making the decision, the customs authority decides to inspect and notify through the Electronic Data Processing System for Customs as follows:

1. High risk: Conducting inspections on one or several of the following contents:

a) Inspect goods transported between duty-free storage warehouses and duty-free shops in accordance with point b, Clause 2, Article 10 of Decree No. 167/2016/ND-CP dated December 27, 2016 of the Government on duty-free goods trading (hereinafter referred to as Decree No. 167/2016/ND-CP).

b) Inspect the sale of duty-free goods by duty-free goods traders in accordance with point b, Clause 5, Article 12, point b, Clause 3, Article 13, point b, Clause 3, Article 14, point c, Clause 3, Article 15, and point b, Clause 2, Article 16 of Decree No. 167/2016/ND-CP.

c) Inspect the actual cash of duty-free goods traders brought into and out of quarantine zones and restricted areas in accordance with point c, Clause 2, and point b, Clause 3, Article 20 of Decree No. 167/2016/ND-CP.

d) Inspect the final report on goods brought in for sale at duty-free shops in accordance with point c, Clause 5, Article 21 of Decree No. 167/2016/ND-CP.

2. Medium Risk: Select enterprises randomly and conduct inspections on one or several contents as prescribed in Articles 10, 12, 13, 14, 15, 16, 20, and 21 of Decree No. 167/2016/ND-CP.

3. Low Risk: No inspection will be conducted, continue to assess compliance with laws, and classify risk levels for the next assessment period.

Article 26. Classification and Decision on Inspection of Tax Refund and Non-Tax Collection Documents for Exported and Imported Goods

Based on tax laws and the level of risk associated with exported and imported goods, the customs authority classifies tax refund and non-tax collection documents and applies management measures as follows:

1. High Risk: Pre-inspection followed by tax refund.

2. Medium Risk: Tax refund first, followed by post-inspection within three years from the date of the tax refund decision.

3. Low Risk: Tax refund first, followed by post-inspection with random checks within five years from the date of the tax refund decision.

Article 27. Decision on Supervision and Inspection Methods for Goods During Customs Surveillance

Based on the level of risk during customs surveillance and the operational information at the time of making the decision, the customs authority decides on supervision and inspection methods for goods and notifies through the Electronic Data Processing System for Customs as follows:

1. High Risk: Sealing by customs combined with technical monitoring using equipment or sealing as prescribed by law combined with direct supervision by customs officials.

2. Medium Risk: Sealing by customs or sealing as prescribed by law combined with technical monitoring using equipment.

3. Low Risk: Sealing as prescribed by law or technical monitoring using equipment.

4. The customs authority conducts on-site inspections of goods during customs surveillance in cases where there are signs of law violations.

Article 28. Decision on Sampling Supervision for Specialized Inspection within the Customs Operation Area

Based on the level of risk during the sampling supervision process for specialized inspection within the customs operation area and information regarding the sampling for specialized inspection, the customs authority decides on supervision and announces it on the Electronic Data Processing System as follows:

1. High risk, medium risk: Conduct direct supervision.

2. Low risk: Do not conduct supervision, continue to implement legal compliance assessment, classify risk levels for the next assessment period.

Article 29. Decision on Inspection and Supervision for Means of Transport Exiting, Entering, or Transiting; Persons Exiting, Entering, or Transiting; and Luggage of Persons Exiting, Entering, or Transiting

Based on the level of risk for means of transport exiting, entering, or transiting; persons exiting, entering, or transiting; and luggage of persons exiting, entering, or transiting, and business information at the time of decision-making, the customs authority decides on inspection and supervision and announces it on the Electronic Data Processing System as follows:

1. High risk, medium risk: Conduct inspection and supervision.

2. Low risk: Do not conduct inspection and supervision; continue to implement legal compliance assessment for declarants, classify risk for the next assessment period.

Article 30. Decision on Sample Analysis and Testing of Goods

Based on the level of risk for exported and imported goods and business information, the customs authority decides on sample analysis and testing and announces it on the Electronic Data Processing System as follows:

1. High risk, medium risk: Conduct sample analysis, testing, and appraisal.

2. Low risk: Do not conduct sample analysis, testing, and appraisal; continue to implement legal compliance assessment, classify risk for the next assessment period.

Article 31. Selection of Specialized Inspections and Application of Risk Management in Other Business Activities

1. Selection of Specialized Inspections

Based on the level of risk in specialized inspections, the customs authority selects specialized inspections and announces it on the Electronic Data Processing System as follows:

a) High risk, medium risk: Select to conduct specialized inspections;

b) Low risk: Do not conduct specialized inspections, continue to implement legal compliance assessment, classify risk for the next assessment period.

2. Application of Risk Management in Other Business Activities

Based on the level of risk in other business activities and business information, the customs authority decides on applying appropriate business measures according to its functions and tasks.

Article 32. Inspection and Evaluation of the Implementation of Risk Management in Customs Business Activities

1. Inspection and evaluation of the implementation and application of risk management in customs business activities, including:

a) Inspection and evaluation of the quality of organizing the implementation of risk management business measures and techniques;

b) Inspection and evaluation of the effectiveness of risk management application in customs business activities;

c) Inspection and evaluation of the organization and results of implementing decisions on inspection, supervision, control, post-clearance inspection, audit, or other business measures based on risk management application.

2. Content and methods of inspection and evaluation of the implementation and application of risk management in customs business activities:

a) Collecting and summarizing information and data reports from various units on the implementation and application of risk management;

b) Collecting, analyzing, and summarizing information on inspection, supervision, and post-clearance inspection results;

c) Analyzing and summarizing violation results found in inspection, supervision, and post-clearance inspection;

d) Organizing working groups to inspect the implementation and application of risk management by units at all levels of customs.

3. The Director of the General Department of Customs assigns responsibilities to risk management units to inspect and evaluate the implementation and application of risk management in customs business activities according to Clause 2 of this Article. Evaluations are conducted periodically (monthly, every six months, and annually) and according to specific business requirements.

Chapter V

IMPLEMENTATION

Article 33. Responsibility for Implementation

1. The Director of the General Department of Customs is responsible for issuing:

a) The criteria indicators prescribed in Articles 11, 15, and 17 of this Circular;

b) A list of risky goods on a regular basis;

c) Procedures and regulations for uniformly implementing risk management in customs business activities.

2. The Director of the Risk Management Department under the General Department of Customs is the lead unit and is responsible for:

a) Managing and operating the risk management information system and related information and data systems for risk management according to the assigned level;

b) Organizing the implementation and guiding business practices, inspecting the collection and processing of risk management information; risk management business measures and techniques, and the application of risk management in customs business activities;

c) Managing the set of criteria indicators issued by the Director of the General Department under point a, Clause 1 of this Article on the risk management information system and related information systems; monitoring, evaluating, adjusting, and supplementing criteria indicators to meet management requirements in each period.

3. Customs authorities at all levels and customs officers have the responsibility to implement the risk management program and plan of the customs sector; carry out business measures based on provided risk management information.

4. State agencies involved in state management of customs; declarants; organizations and individuals related to export, import, transit of goods, exit, entry, or transit of means of transport are responsible for implementing this Circular.

Article 34. Effective Date

1. This Circular shall take effect from January 1, 2020.

2. The provisions set forth in Articles 8, 9, 11, 12, 13, and 15 of Section I, Chapter II of Circular 38/2015/TT-BTC dated March 25, 2015 of the Ministry of Finance regarding customs procedures, customs inspection and supervision, export tax, import tax, and tax management for exported and imported goods; Decision 464/QD-BTC dated June 29, 2015 of the Minister of Finance promulgating regulations on risk management in customs operations; and Decision 465/QD-BTC dated June 29, 2015 of the Minister of Finance promulgating criteria for risk management in customs operations shall remain effective until January 1, 2021.

3. During implementation, if any related documents mentioned in this Circular are amended, supplemented, or replaced, they shall be implemented according to the newly amended, supplemented, or replaced documents.

4. In case of any difficulties arising, it is requested that relevant organizations and individuals promptly reflect such issues to the Ministry of Finance (General Department of Customs) for consideration and guidance on resolution./.