To closely control goods in transit across borer gates, seaports, airports, HCM City Customs Department has implemented solutions to manage this regime.

Illegally imported rhino horns in the shipment in transit were seized
by the Tan Son Nhat Airport Customs Department. 

Strictly control goods in transit

According to HCM City Customs Department, with a large volume of goods in transit, over the past time, border gate customs branches under HCM City Customs Department always create the most favourable conditions for businesses. At the same time, to ensure management of goods in transit and strengthen anti-smuggling to prevent the situation that smugglers take abuse of transit regimes to smuggle goods into the domestic market.

Recently, viacustoms supervision and control, customs branches have conducted physical inspection for goods in transit goods showing signs of violations of the law and detected violations such as goods are not declared or falsely declared in quantity, code, origin and fake goods.

At Cat Lai port, in 2020, Sai Gon Customs Branch of Zone 1 processed nearly 46,000 declarations of goods in transit, including conducting physical inspection for 339 declarations for 339 declarations with suspicious signs and discovered 106 violation declarations.

Bui Le Hung, Manager of Tan Son Nhat International Customs Branch said that the volume of goods in transit through Tan Son Nhat international airport accounted for a small proportion, in by 2020, the branch processed for 3,600 declarations of goods in transit. However, due to the characteristics of the transit regime with a variety of items and potential risks, businesses take advantage of incentive policies for smuggling.

To manage the regime, Tan Son Nhat International Airport Customs Branch has deployed and strengthened many supervision and control solutions for this regime, ensuring compliance with customs procedures and legal documents applicable to the regime.

The branch has collected and handled information related to shipments in transit and taken operational measures to detect signs of violation and abuseof transit regime for smuggling and trade fraud in carrying out customs procedures. At the same time, the branch workswith relevant anti- smuggling forces and customs branches at exit border gates to inspect and supervise goods.

In 2019 and 2020, Tan Son Nhat International Airport Customs Branch fined 53 cases of administrative violations related to goods in transit. Most of the businesses were fined for false decalarion of goods name, quantity and origin.

Propose to remove shortcomings

According to the leader of Tan Son Nhat International Airport Customs Branch, asthe highest fine for violation of goods in transit is VND 4,000,000 there is no additional fine or remedial measures. Therefore, businesses think that even if they are fined, thegoods are still cleared. Some businesses still do not comply with the law and continue to reoffend.

On the other hand, legal provisions on intellectual property issue are still unspecific. Specifically, Clause 3, Article 73 of Customs Laws stipulates intellectual property does not apply to goods in transit. However, Decree 99/2013/ ND-CP on administrative penalties in industrial property allows the customs authority to impose penalties for transit goods related to intellectual property such as infringement of rights to inventions, utility solutions, layout designs; infringement of rights to trademarks, geographical indications, trade names andindustrial designs.

To strictly manage goods in transit, customs branches proposed ministries and sectors to soon issue mandatory regulations on installation of GPS tracking devices for land means of transport and information exchange with the Customs in transporting goods in transit subject to customs supervision via the National Single Window Portal. Manage license of goods subject to licensing of transit goods by the Ministry of Industry and Trade on the National Single Window for easy comparison and update.

HCM City Customs Department requests the transit service provider to coordinate with the business to inspect seal asthe provider is in charge of transporting and delivering goods to the receiver. If the seal is incorrect, broken or lost, the provider must notify to Customs officer and port operators for handling. In addition, the provider has tocomply with regulations on customs procedures for goods in transit.

Particularly, the provider is not allowed to move means of transport to other ports for loading, unloading and transshipment; not allowed to dock, stop means of transport for loading, unloading or transshipment of goods during transportation.

If the provider has a need to transport goods other than goods in transit, or move the means of transport to another port, stop means of transport during the transport of transit goods for loading or unloading. The provider will send a written document to the General Department of Vietnam Customs and the Ministry of Finance for consideration and settlement.