Customs inspection means the verification of customs, legitimate and corresponding documents; and the physical inspection of goods and vehicles by customs authorities.
Post-customs clearance inspection means inspection carried out by customs authorities of customs documents, accounting books and documents and goods-related documents and data; and a physical inspection of goods where necessary and requirements which are required to meet after such goods are granted clearance. Post-customs clearance inspection aims to assess the accuracy and truthfulness of documents and dossiers that are declared, submitted and produced by customs declarants to customs authorities; and observance by customs declarants of the law on customs and other laws related to the management of imported and exported goods.
Post-customs clearance inspection shall be carried out at customs authorities or premises of customs declarants. Premises of customs declarants include their head offices, branches, stores and goods production and preservation establishments.
POST-CUSTOMS CLEARANCE INSPECTION
Cases of post-customs clearance inspection
- Inspection in case there are violations of the law on customs and other laws relevant to the management of imported and exported goods.
- In cases other than those as prescribed in Clause 1 of this Article, post-customs clearance inspection shall be carried out based on the application of risk management.
- Inspection of law observance by customs declarants.
Post-customs clearance inspection at premises customs declarants
- Competence to make a decision on post-customs clearance inspection: The General Director of Customs and Director of the Department for Post-Customs Clearance Inspection shall make a decision on post-customs clearance inspection nationwide; Directors of Customs Departments shall make a decision on post-customs clearance inspection in localities under their management.
- In case of inspection of enterprises that are not located in administrative divisions under their management, Customs Departments shall report to the General Department of Customs for consideration and assignment of other units to conduct inspection. The inspection and assessment of law observance of customs declarants must comply with annual post-customs clearance inspection plans promulgated by the General Director of Customs.
- Duration of post-customs clearance inspection:
- The duration of post-customs clearance inspection shall be determined in the inspection decision provided that it is not more than 10 working days. The inspection duration is determined from the day on which the inspection begins. In case the scope of inspection is large and matters are complicated, the inspection decision issuer may grant an extension of the inspection duration once for not more than 10 working days.
- The decision on post-customs clearance inspection must be sent to the customs declarant within 3 working days from the day on which it is signed and within 5 working days before the inspection is conducted.
- Order and formalities for post-customs clearance inspection:
- Announce the post-customs clearance, inspection decision before the inspection is conducted;
- Compare declared statements with accounting books and documents, financial statements, related documents and actual requirements of imported and exported goods within the scope and content of the post-customs clearance inspection decision;
- Make a written record of post-customs clearance inspection within 5 working days after the inspection is concluded;
- Within 15 working days after the inspection is concluded, the inspection decision issuer shall sign the inspection conclusion and send it to the customs declarant. In case the inspection conclusion requires expert opinions of a competent agency, the time limit for signing the inspection conclusion is determined from the day on which the competent agency gives its opinions. Competent professional agencies shall give their opinions within 30 days from the date of receiving requests of customs authorities;
COMMON RISKS
Depending on the type of production and business and Customs inspection objectives, enterprises will often face typical risks as follows:
- Conditions to meet the conditions for processing and trading specialized goods, meet the criteria for tax reduction, tax refund, tax grace…
- Customs declarations showing signs of violation, related to prohibited goods, non-tax-exempt goods, and related to other businesses that are violating.
- Differences in inventory and scrap compared to norms, use of temporarily imported and re-exported goods not in accordance with regulations.
- Tax discrepancies and violations…
- Negative recommendations from Customs to other specialized management agencies on taxes, labor management, investment…
WORKING PLAN
Internal audit of compliance records
- Prepare a list of documents that comply with post-customs clearance inspection criteria.
- Apply internal audit operations to review the completeness, reasonableness, and legality of import and export data according to financial reports, import and export records, tax declaration records, and accounting documents.
- Identify risks, causes, determine solutions and explanations.
- Prepare a management letter to submit to the Board of Directors.
Make a comprehensive management plan for post-customs clearance inspection procedures
- Proactively overcome risks according to internal audit results.
- Plan and provide information and explanations.
- Prepare special support channels in advance.
- Manage documents, sign working minutes.
- Set goals to prove business capacity, compliance credibility, and optimally overcome violations, if any.
Required papers
- Legal records of enterprise.
- Dossiers for registration of export processing enterprise.
- Production records: Process, norms, reports…
- Financial statements and annual corporate income tax finalization declaration.
- Customs declaration report.
- Liquidity records of raw materials and processed goods.
- Invoices, documents and tax declarations according to regulations.
- Commercial contracts related to import and export.
- Inventory table of goods.
- Overview of production and business situation – annual use of imported and exported raw materials.
VIVA BUSINESS CONSULTING SERVICES
- Comprehensive consulting on compliance procedures, regulations, and generally accepted practical solutions.
- Make a list and guide the preparation of relevant documents.
- Internal audit and coordination to complete documents proving compliance and meeting inspection requirements.
- Develop a work plan.
- Representatives work directly and with support from stakeholders to ensure optimal results.
- Control documents and working minutes in a safe manner.
- Collect records and organize storage for related compliance requirements in the following years.
Best regards,
ABOUT VIVA BUSINESS CONSULTING
VIVA is the local expertise for local business compliance procedures, has been trusted by thousands of foreign investors, multinational companies from Europe, Japan, Singapore, India, Korea, USA… for the required business compliance procedures by local laws and regulations since 2006.
Thanks for consistent of practice expertise in Business laws - Employment relations – Tax and accounting – Corporate finance – Corporate services, VIVA has been successfully providing service for thousands of leading companies in such industries: Garment, energy, pharma, advertising, agricultural…
VIVA keeps its signature by offering one-stop business platform with regard to market entry and the mandatory business compliances. We ensure for our client’s good standing, in lawful and optimal manners whenever they are working and doing business in Vietnam.
Thanks to a unique combination of local expertise and global experiences, VIVA BUSINESS CONSULTING is the one-stop solution for the required compliance procedures in Vietnam for foreign investors and experts. We are still here since 2006s because of our thousands of satisfied clients and our employees. Our staying power is a testament to the professional resources, and so much more.
VIVA not only manage business required procedures by laws but firstly places client’s compliance and good standing, in the optimal methods when offering any solution, and integrated with our intensive resources that allow us to prevent most of the risks in advance, create more benefits, advantages and business inspiration for entrepreneurs.
The insights and consistent backgrounds in Business Laws – Accounting and Corporate Finance – Tax Management – Labor Relations and Payroll – Serectarial and consistent with our exclusive standard operation processes, consisting of consultation – implementation – pratice operation help us fully protect client interests as one-stop solution.
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