IMPORTANT NOTES WHEN DOING CUSTOMS PROCEDURE FOR 3 PARTIES TRADE

Normally, in import-export trading activities, there is not only a simple commitment between the two parties buying and selling, but there may also be the participation of a third party. So what is the difference when doing Customs procedure for 3 parties trade? What should we pay attention during this procedure? Please read the following article with us:

I. What are the Customs procedure for 3 parties trade?

Firstly, 3 parties trade is understood as the activity of 3 businesses join in a project or business together, belonging to 3 different countries. The 3 parties trade activity will be of a bridging nature, in which one party will act as the buyer, one party will act as the seller and the other party will act as an intermediary. The intermediary will act as both a buyer and a seller to get the profit margin.

In addition, the 3 parites trade is also known by another name called the 3 parites trade delivery Customs procedure. This is the process includes the job that Customs staff and competent authorities perform to inspect, control cargo circulating across the borders of countries around the world.

II. Are 3 parites trade Customs procedure obligated?

If we learn deeply about current regulations, we wil realize that there are some cases which the Law does not require enterprise do Customs clearance. So does this work similarly with 3 parties trade? Let’s find out!

1. Companies and enterprises import cargo, store them in warehouses and then sell them to export processing zone in Vietnam.

With this case, company, enterprise import cargo need to do import procedure, Customs declaration and must pay full tax before cargo are declared Customs. Next, to sale cargo to Export Processing Zone, it is obligated to do on-site import & export Customs procedure.

More: CUSTOMS DECLARATION PROCEDURE FOR EXPORT CARGO

2. Export Processing Zone in Vietnam buy cargo from seller in Vietnam but nominate to receive cargo from abroad

With this case, Export Processing Zone must carry out Customs procedure base on Clause 6, Article 1 of Circular No. 39/2018/TT-BTC of the Ministry of Finance.

III. Place for doing Customs procedure in 3 parties trade

When doing 3 parties delivery, enterprise need to determine the exact location for Customs clearance. According to current regulations now, the location to do 3 parties Customs procedure is usually place the Customs authority receive, register, check Customs document, as well as inspect cargo. This location may be at the Customs Branch or at the competent local Customs Department.

IV. Noted in 3 parties trade contract about international cargo trade

The contract is the legal basis determining the rights and obligations of the parties in trading and commerce activities. Enterprise need to build detail Contract show legal rights an interests as well as consider this as the basis for Customs procedure. When doing 3 parties contract, enterprise need to note as below:

• Contract must be in writing with clear terms. Acceptable forms of writing include:
  letter, telegram, telex, fax. Please note that any form of agreement or oral statement is not valueable.
• Clearly identify the roles of 3 parties in the purchase and sale transaction and must be clearly stated in the value-added tax invoice, that is, clearly identify the buyer, seller and intermediary.
• Enterprise are only allowed to sign 3 parties sales contracts with cargo listed in their business licenses.
• Cargo in buying and selling transaction must be allowed to circulate on the market and not on the list of prohibited import and export cargo.

V. Change bill of lading when doing Custom procedure in 3 parties trade

In some cases, enterprise need to change bill of lading in 3 parties trade. This actions is called internationally Switch Bill of Lading. The purpose of this is to change the content compared to the original bill of lading according to the agreement of the parties involved. Generally, some contents can be changed are seller name, shipper name, quantity of cargo, Port of loading, port of destiantion…

Some notes when changing bill of lading

The most important note when changing the bill of lading is choosing the correct Incoterm and payment method. So, the third party is an intermediary can take the initiative in the process of changing the bill of lading when doing 3 parties Customs procedure in 3 parties trade. Specifically:

• The intermediary always reserves the right to book vessel.
• Book vessel via forwarder to change bill of lading easily.
• Try to choose payment method as simply as possible.

Hopefully with the above information, your company know how to do Customs procedure for 3 parties trade. The actual Customs procedure for 3 parties trade are not complicated if businesses understand and know how to do this type of procedure.

Contact Information and Person in Charge

MRS Lucia

Hotline(Tel/Zalo/Viber/WhatsApp/Line): 035. 4376.089.

Email: lucia@5startrans.vn.

Skype: Truongthao2504.