Enterprise transporting goods in transit raises many questions on specialized inspection

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Infringing goods in transit discovered by Sai Gon Port Zone 1 Customs Branch. Photo: T.H
Infringing goods in transit discovered by Sai Gon Port Zone 1 Customs Branch. Photo: T.H

Reducing violations to cut inspection rate

According to Deputy Director of HCM City Customs Department Nguyen Huu Nghiep, through mass media, HCM City Customs Department grasped information that four enterprises transporting goods in transit recommended some contents related to the transportation of goods in transit. Following the direction of the General Department of Customs, HCM City Customs Department organized a meeting with the above enterprises to exchange and clarify the recommendations.

Although HCM City Customs Department invited representatives of these four enterprises to the meeting at 9am on December 5, only one enterprise attended the meeting, which was the representative of Global Logistics Services Co., Ltd.

Mr. Hoang Long, the representative of Global Logistics Services Co., Ltd. said that requirements for documents for goods in transit are now losing opportunities and advantages of enterprises.

Permits required for goods in transit, such as a Phytosanitary certificate which is not granted by the Southern Veterinary Department but the Plant Protection Department in Hanoi, taking up a lot of time and costs.

In addition, regulations on the permit of the Ministry of Industry and Trade for goods in transit cause difficulties for enterprises. Enterprises must apply for this permit and wait for the issuance. If the permit is not granted at the described time, enterprises will be unable to carry out the transportation of goods in transit.

For the inspection and declaration of goods, the customs inspection and declaration for anti-smuggling is appropriate but the inspection rate is high, affecting enterprises. “For goods in transit, it is not necessary to declare in detail like imported goods, which can assist the company in the declaration,” Mr. Hoang Long suggested.

However, according to the customs Branch of Saigon port zone 1, the four enterprises that have complaints are enterprises regularly sanctioned for administrative violations for the following acts: mispresenting name, quantity, type, and origin of goods and transiting goods subject to quarantine without quarantine permit.

The violation rate in 2022 of the above enterprises is 47 -56%, higher than the general average of this type.

Noting the problems and recommendations of the enterprises, Deputy Director HCM City Customs Department Nguyen Huu Nghiep said that the unit always complies with its commitments to the business community on trade facilitation.

Mr. Nguyen Huu Nghiep said, in addition to facilitating trade and supporting enterprises to well comply with the law on customs in goods transit activities, HCM City Customs Department has strictly controlled and prevented violations and the taking advantage of transit services to carry out illicit trade in goods.

For the inspection rate, Customs has relied on a lot of information obtained from risk management work. If an enterprise regularly violates, it will be recognized and classified by the risk management system of the Customs sector as a group of risky enterprises. Therefore, enterprises transporting goods in transit must reduce violations to reduce the inspection rate.

The inspection time depends on the presentation of goods by the enterprise. In fact, some enterprises still delay presenting goods to the customs office for inspection. The customs authority will review and carry out the inspection as quickly as possible. However, enterprises also need to fulfill the requirements of the Customs.

Listening to recommendations and giving instructions to enterprises

At this meeting, HCM City Customs Department guided the legal provisions related to goods in transit; listened to the recommendations of the enterprises and immediately solved problems within its authority, and reported to the superiors on problems beyond its authority.

For specialized inspection, goods transited through any country’s territory must comply with national regulations, giving the first priority to national interests. Enterprises must be proactive to apply for these permits. Violations of quarantine will be seriously handled and the goods will be confiscated.

For the recommendation on goods inspection, the customs authority shall coordinate with the enterprise to cut the inspection time. Currently, the inspection is conducted within the day when the order for inspection is issued. Enterprises should present goods early for a quick inspection. Logistics enterprises actively coordinate with owners to present goods.

Deputy Director of HCM City Customs Department Nguyen Huu Nghiep said that the inspection of goods, channeling, and inspection rates are all shown on the management system of the Customs.

According to the Customs Branch of Saigon port zone 1, the physical inspection data of the Customs agency shows that up to 90% of the goods stopped for inspection are containers containing multiple items with diversified packing specifications; 10% of containers declared as containing one kind of goods but a fully-loaded container, there is not enough space to check the goods if the goods are not taken out of the container.

Regarding inspection of goods in transit, and recommendations on the detailed declaration of goods, HCM City Customs will collect more information to report to ministries and agencies. Regarding specialized permits, the provisions of the law are very clear and specific, businesses must actively and strictly comply with the provisions.

Goods in transit must comply with the general agreements of Vietnam and transit countries.

GDVC guides customs procedures for goods in transit GDVC guides customs procedures for goods in transit

Regarding coordination, Customs authorities are more proactive in exchanging information with enterprises to request them to provide information and present goods; periodically actively meet with enterprises transporting goods in transit to disseminate regulations on goods in transit.

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