Customs clearance is the most important thing that cannot be ignored when exporting and importing official goods. So what is customs clearance? What needs to be done for the goods to be cleared?
What is customs clearance?
Before introducing the details of the customs clearance steps, let’s first learn about the definition. Customs clearance is a collection of tasks related to customs procedures for goods to be exported or imported or under other professional management regimes.
From the above definition, it can be understood that goods clearance includes activities such as declaration, presentation of documents and goods for customs inspection. After the inspection is completed and meets the set regulations, the goods will be allowed to clear.
What is Cargo Clearance?
How long does customs clearance take?
The time for customs clearance of imported goods has now been significantly shortened compared to the past. Accordingly, the average customs clearance time has been reduced from 21 days to 13 days. Shortening the clearance time also reduces costs by up to 20% for individuals and businesses. Typically, customs clearance of Chinese goods is being shortened, helping to transport goods to the country only 2-3 days.
Conditions for customs clearance of goods
Goods are cleared after completing the prescribed customs procedures. However, in order to ensure favorable customs clearance activities, it is necessary to note some additional contents on the following customs clearance conditions.
Subjects allowed for customs clearance
Subjects of application of customs clearance procedures are goods and vehicles. Accordingly, goods requiring customs clearance need to ensure that they are not on the list of goods banned from import and export. At the same time, goods need to meet the requirements of specific types, models and quantities.
Prepare all customs clearance procedures
Goods can only be cleared when there are full customs procedures. Therefore, you need to properly understand the documents, information to declare as well as the implementation process. Should choose a person with knowledge and understanding of the customs clearance process to carry out customs clearance procedures.
Customs clearance of import and export goods
As mentioned above, in order for goods to be cleared, it is necessary to perform many different activities and procedures. To ensure the smooth clearance of your goods, please refer to the detailed steps of customs clearance below.
Customs clearance process for export goods
Check goods, tax policy
The State has specific policies on which products are encouraged to be exported or restricted. To ensure that goods are exported smoothly, you should check the item policy in the list of items subject to export tax.
Not only commodity policy but also tax policy need to be carefully studied. There will be groups of items subject to additional export tax according to state regulations.
Prepare documents
When carrying out customs procedures for exported goods, it is necessary to prepare all the following documents and papers:
- Foreign trade contracts
- Invoice
- Waterway transportation requires a storage agreement
- Packing slips
Declare the customs declaration
If you are exporting goods for the first time, you need to buy and register a digital signature with the General Department of Customs. Then, you download and install the customs declaration software and declare the information related to the software shipment. After printing, print the declaration to complete the procedures at the customs branch.
Bringing goods to the gathering point
In order for the customs authority to check and confirm the goods against the declared information, the enterprise or individual must bring the goods to the gathering point. The Customs Law 2014 stipulates the specific gathering points as follows:
- The border gate includes a road, an intermodal railway station and an international civil airport.
- International postal border gate.
- Seaports and inland waterway ports with import and export activities.
- The customs sub-department where the customs clearance documents are received.
- Other areas according to the director of the General Department of Customs.
- Warehouses and retail collection locations.
Taxpayer
Customs declarants will have to pay all kinds of fees, charges and taxes for export items according to state regulations before customs clearance. After completing the procedures and paying enough taxes, fees, and eligible goods, the goods will be cleared.
Steps to carry out customs clearance procedures for imported goods
8 steps to carry out detailed import customs clearance procedures
Identify imported goods
Determining the type of imported goods is the first step that needs to be taken for the goods to be cleared. Accordingly, if the goods belong to the group of normal commercial goods, they will be subjected to normal import procedures. In the case of goods banned from import, all subsequent import activities will have to be stopped.
Contract
Foreign trade contract, also known as Sale Contract, is a contract representing a transaction between two parties and is required in all documents throughout the customs clearance process. The foreign trade contract must show the name, quantity of goods, weight, price and packing specifications….
Check the set of documents
Enterprises who want to import 1 shipment need to prepare a full set of documents as follows:
- Foreign trade contracts
- Consignment Bill of Lading
- Commercial Invoice
- Goods packing slip
- Certificate of Origin
- Related documents.
Specialized test
Registering for inspection of changing industries is something that enterprises importing goods must do. After receiving the Arrival Notice ie the notice of arrival, the importer needs to register for specialized inspection.
Customs declaration
Similar to exporting goods, importing goods also requires you to buy a digital signature with the General Department of Customs. After the carrier sends the notice to you, you need to declare the customs right on the system of the General Department of Customs. After filling in all information related to the consignment completely and correctly, the declaration will be updated on the system. You should double-check to make sure there are no mistakes, especially in the codes.
Get a delivery order
Delivery order is used to request the carrier to store the goods at the warehouse or port. To get the delivery order, you need to prepare a set of documents including CCCD copy, copy of bill of lading, original bill of lading stamped by leader and fee.
Customs documents by stream
After receiving the declaration, the Customs Sub-department will divide it into streams for easy control. Accordingly, the green stream is the stream that businesses do not need to check or do other procedures. Businesses only need to print the declaration and pay the fee and rent it in full.For goods in the yellow channel, the customs authority will have to check the paper records of that shipment. In order for goods to be cleared in this stream, businesses need to be careful in preparing relevant documents.
When goods are in the red channel group, this group of goods must be inspected from the General Department of Customs. The inspection process will be rigorous and time-consuming, increasing the cost of the business.
Pay your taxes and complete
After the declaration is approved, the enterprise pays tax in full as prescribed by law. Some taxes that import goods need to pay such as import tax, VAT, environmental tax or excise tax.