Vietnam Customs Law 2014: What Importers Should Know

Vietnam customs law 2014 is a new Law on Customs, numbered 54/2014/QH13, which the National Assembly passed on June 23 and which takes effect on January 1. If you import goods into Vietnam, you have a few weeks to get ready. This note explains what is happening and what to do first.

What has been decided

The National Assembly passed the Law on Customs on June 23, 2014. It carries the number 54/2014/QH13. It starts to apply on January 1, which is the first day of next year. Until then, the current rules stay in force.

A law of this kind sets the main framework. The government and the Ministry of Finance then issue detailed guidance on how the framework works day to day. Importers should expect that guidance to arrive in the weeks before and after the start date. Do not wait for every detail before you begin to prepare.

Sources: Law on Customs No. 54/2014/QH13, National Assembly of Vietnam, passed June 23, 2014 (Vietstock, July 2014).

The electronic system is already running

The customs authority has already moved clearance onto computers. The General Department of Customs planned the start of the VNACCS/VCIS system for April 1, 2014, and its website now lists the system as running. VNACCS handles the electronic filing and processing of declarations. VCIS is the companion system that supports risk work and information sharing.

For an importer, the message is simple. Declarations are filed electronically, and the quality of the data you send matters more than before. A wrong code or a missing field is easier for a system to flag than for a person to overlook.

If your declarations are filed by a customs broker, ask them how they use the system. Ask who checks the data before it is sent. Ask how they handle a declaration that the system rejects.

Sources: Baker McKenzie, March 17, 2014, on the April 1 start; General Department of Customs of Vietnam website, October 2014, which lists the VNACCS/VCIS system as in operation.

What to review in your own paperwork

Good paperwork is the best preparation for any new rule. Start with the documents you already hold, and check that they agree with each other.

• Your commercial invoice, packing list and contract should show the same goods, quantities and prices.
• Your description of each product should be clear enough that someone outside your company can tell what it is.
• The tariff code you use for each product should be written down, along with the reason you chose it.
• Your transport documents should match the invoice on weights, packages and consignee.
• Any licence or certificate that a product needs should be valid, and you should know its expiry date.

Mismatches between documents are a common cause of delay at the border. Fixing them now costs a little time. Fixing them with a container waiting costs much more.

Keep records you can find

Customs authorities can ask an importer to explain a past shipment. That means your records must be easy to find, not just stored somewhere. Decide now where each shipment file lives, who is responsible for it, and how long you keep it.

A simple folder for each shipment works well. Put the declaration, the invoice, the packing list, the transport document, payment proof and any licences in the same place. When someone asks a question about a shipment from months ago, you can answer in minutes.

Write down the reasoning behind decisions that could be questioned. This includes how you worked out the declared value and why you chose a tariff code. A short note made at the time is worth more than a long explanation made later.

Sources: Law on Customs No. 54/2014/QH13, National Assembly of Vietnam. Please read the full text for the exact record-keeping rules that apply to you.

Talk to your broker and your suppliers

You are not the only one who needs to adjust. Your customs broker, freight forwarder and overseas suppliers all touch the paperwork. Talk to each of them before the start date.

1. Ask your broker what they expect to change and when they will brief you.
2. Ask your forwarder to confirm how documents reach you and how fast.
3. Ask your suppliers to send complete and consistent documents with every shipment.
4. Agree who will answer questions from customs, and how quickly.

Small changes in routine, agreed early, prevent most last minute problems. If you ship in the busy weeks around the start of the year, plan a little extra time.

A short checklist for the next few weeks

Use the time between now and January 1 well. A short plan is enough.

• Get a copy of the Law on Customs, No. 54/2014/QH13, and read the sections that touch your goods.
• Watch for guidance from the government and the Ministry of Finance, and share it with your team.
• Review one recent shipment file from start to finish, and fix any gaps you find.
• Confirm that your broker files declarations through the electronic system.
• Name one person in your company who owns customs questions.

This note is general information for importers. It is not legal advice, so check the official text or ask a qualified adviser about your own shipments.

Sources: Law on Customs No. 54/2014/QH13, National Assembly of Vietnam; General Department of Customs of Vietnam website, October 2014.