I. Why do we need Customs clearance?
To begin the article, we come to the definition of Customs declaration procedure as the tasks that Customs staff and customs officials must perform according to the provisions of this Law for cargo, transportation. – excerpt from the 2014 Customs Law.
Or to understand easier, you can image it as below: Customs declaration procedure is the process of carrying out procedure and forms related to reporting information about cargo, transported across national borders or imported into Vietnam through seaports, border gates, and airports.
Customs declaration helps your goods circulate “smoothly” and more safely in transportation, in addition, the exchange – purchase and sale of your goods both contribute indirectly or directly (the state collects goods tax) to other great benefits for people and the country.
1. What cases are Customs procedure applied for?
According to Decree No. 08/2015/ND-CP dated January 21, 2015, subjects subject to customs inspection include: subjects required to carry out customs procedures, customs dossiers and documents related to subjects required to carry out customs procedures.
| Cusctoms Procedure | Object | Location |
| Influenced by | – Cargo, items on transportation, cash (VND, foreign currency) – Negotiable instrument (gold, diamond,…), relic, antique,… – road transport, railway, airway, seaway, inland waterways, waterway exit, entry, transit | – Road border gate, internation railway station, international civil airport – Sea port, inland waterway port with export, import exit, entry and transit activity – Area where cargo are stored under Customs supervision, export processing zones and Customs preferential area – Customs clearance locations, bonded warehouses, tax-free warehouses, international post offices, customs declarant headquarters during post-clearance inspection… In addition, there are many other areas. |
2. Common English terms in Customs industry
| Name / Acronym | Commentary |
| Dispatch / Demurrage | Bonus for early loading/ Penalty for late loading(overdue) |
| COD: Cash on delivery | Payment then delivery |
| ETA: Estimated time of arrival | Estimated time vessel arrive |
| ETD: Estimated time of departure | Estimated time vessel depart |
| Combined B/L | Combined/multimodal bill of lading (but must have at least ocean freight) |
| Tolerance | Tolerance allowed |
| 1×20′ Said to contain | 1 container 20 feet |
| Shipper | Shipper (usually the exporter) |
| Complete name and address | Full name and address |
| Consignee | Consignee (usually the importer, authorized party, or bank if using L/C as payment method) |
| F.a.s: Free alongside ship | Includes shipping cost to port but excludes loading cost |
| F.o.b: Free on board | Seller is responsible until cargo have been loaded on board the vessel. |
| Freight | Cargo shipped |
| Irrevocable | Irrevocable |
| Letter of credit (L/C) | Letter of credit |
| Merchandise | Cargo buy and sell |
II. What documents are included in the Import-Export Customs clearance?
1. Common types of documents
Customs declarations are now all done online. No need for notarization or certification as before, except for some special documents such as: Original C/O, license…However, electronic or paper declaration require a complete set of documents to be sent to the customs authority for comparison, including:
| No | Type of document | Description |
| 1 | Bill of lading – B/L:(sea, air, border bill of lading) | This is a document to confirm that cargo have been loaded onto the means of transport. |
| 2 | Export, Import Customs declaration form | This is a document declaring cargo to ensure that the cargo are eligible for customs clearance |
| 3 | Commercial Invoice: | This is a document issued by the exporter with the main purpose of claiming payment from the buyer for the sold cargo as stipulated in the contract. |
| 4 | Packing List | This document is intended to show the packing specifications of the shipment. The weight, quantity and dimensions of the packages. |
| 5 | Sales contract – P.O, Sale Agreement: | This contract shows information between two parties such as unit price, payment method, … |
| 6 | Import and export license | Only when your product category requires a license |
| 7 | Certificate of origin | There are many C/O such as C.O form E, Form D, Form AJ…. |
| 8 | Other documents that may arise: | Catalogue; cargo photo; C/A; C/Q; CFS; Test report;… |
2. Characteristic documenrs for commodity industry
It is very complicated with document for Customs declaration, multiple stages of review and huge quantities (98 chapters with nearly 20,000 different items), to help you visualize, we will briefly summarize the main ideas as below:
| Kind of cargo | Additional documents (if any) |
| – Animals include: terrestrial, aquatic and celestial (whole, meat or products made from them) | – Animal quarantine certificate – Certificate of Conservation – Food safety certificate |
| – Plants include: wild or cultivated (whole plants, parts, processed or prepared products from them) | – Phytosanitary certificate – Certificate of Conservation – Plant variety certificate – Medicinal materials (including origin, preparation method, etc.) |
| – Cargo subject to import tariff quotas (sugar, salt, tobacco, eggs, etc.) | – Customs procedure at the import gate – Import license under tariff quota – Phytosanitary certificate – Food safety certificate |
| – Alcoholic beverages or vinegar | – Customs procedure at the import gate – Food safety certificate |
| – Minerals, fuels, chemicals (crude or refined) or products for use as raw materials or fuels in construction and general manufacturing | – Customs procedure at the import gate – Import license under tariff quota – Types and standards of exported minerals – Minerals (chemicals) as construction materials – Chemicals to be declared; Restricted chemicals; Dangerous chemicals; Prohibited chemicals;… – Medicinal materials (including origin, preparation method, etc.) – Pesticides (a few items require this license) – Petroleum license |
| – Scrap, waste or similar products | – License for scrap imported from abroad for production materials – Used consumer goods are allowed to be imported. |
III. Electronic Customs clearance procedure
The process and steps for electronic customs declaration and online customs declaration can be simplified with the following images and steps:
- Step 1: Checking documents provided by customer for customs declaration including: Contract; Invoice; Packing List; Bill; Arrival Notice; C/O… support them checking and reconciling documents of shipment accurately.
- Step 2: File draft Customs declaration form and file automatically software VNACCS or ECUS (after customer check this form exactly).
- Step 3: Prepare completed set of documents and send them to customer sign (Online documents).
- Step 4: Register specialized examination according to each appropriate specialized agency (If any).
- Step 5: Customs declaration at port (Operation staff process this shipment with Customs staff).
- Step 6: Inform customer date of delivery.
- Step 7: Collect all documents, issue invoices for customer payment.
1. Customs clearance location
Nowadays, customs declaration are mostly made electronically, and customs clearance location are only related to reality inspection of cargo, including:
Inspection location are at road border gates, international railway stations, international civil airports; international post offices; seaports, inland waterway ports with export, import, exit, entry, and transit activities; ports for export and import of goods established inland;
- Customs branch headquarters.
- Centralized inspection location according to the decision of the General Director – General Department of Customs.
- Inspection locations at production facilities, construction sites; fair and exhibition venues.
- Inspection locations at bonded warehouses, tax-free warehouses, and consolidation warehouses.
- Inspection location between Vietnam Customs and neighboring country Customs at road border gate area.
- Other locations decided by the General Director of the General Department of Customs if necessary.
2. Advantage and disadvantage of electronic customs procedure
There are two forms of customs declaration: electronic declaration and paper declaration,
electronic customs declaration is now dominant. Paper declaration form remains only in some customs branches or when the electronic declaration system has serious problem or special cases according to Clause 2, Article 25, Decree No. 08/2015/ND-CP dated January 21, 2015.
| Advantage | Disadvantage | |
| Electronic declaration | – Fast time – Security of cargo information – Convenience for user | – Frequent system crash – Need experienced person – Exploit loophol for profit |
| Paper declaration | – Use for special case – There is almost no error casue dealing directly with customs staff | – Time consuming, error prone – Inconvenience, have to go a lot |
IV. Free Customs procedure consulting service
Fastest time commitment: Complete customs procedure within 1-2 days for import cargo, 1 day for export cargo.
Best cost commitment: Service cost for procedure and delivery of cargo are 15 ~ 30% lower than market. Special offer for new customers.
Quality commitment: free consultation, professional customer service, staff with over 5 years of experience, good relationship with customs.
>> More: Custom Clearance
V. Contact Information and Person in Charge
5 STAR GLOBAL TRANSPORT CO.,LTD
Address: 157 Dao Duy Anh, Ward 9, Phu Nhuan District, Ho Chi Minh City, Vietnam
MRS Lucia
Hotline(Tel/Zalo/Viber/WhatsApp/Line): 035. 4376.089.
Email: lucia@5startrans.vn.
Skype: Truongthao2504.
