Decree No. 59/2018 / ND-CP clarifies regulations on transshipped goods and goods in transit

	Ha Noi Customs supports businesses in automatic surveillance at airports
	Solving the obstacles in facilitation and ensuring management requirements for goods in transit and transhipped goods
	Inadequacies in transhipment and transit of goods will be removed

Imported and exported goods are shipped at Cai Mep - Thi Vai port. Photo: Nguyen Hue.

One of the noteworthy points is the regulation related to Customs procedures for goods in transit or transshipment in Clauses 19 and 20, Article 1 of the Decree.

Clarify the concept

Issues related to the concept, monitoring and management of transit goods and transshipment have been clarified in Decree 59. This is due to difficulties in the implementation of Article 43. , 44 Decree 08/2015 / ND-CP without specific provisions on Customs procedures for transshipping, warehousing, separating or changing modes of transport and goods in transit. Decree 08 also does not clearly distinguish transshipped goods and goods in transit, resulting in inconsistencies in the implementation of regulated entities, while these are activities permitted by the Commercial Code in line with international practice, facilitating logistic operations.

Decree No. 59 supplemented the regulations on Customs procedures, Customs inspections and supervision of goods in transit and transshipment in Clauses 19 and 20 of Article 1. For example, regulations on Customs procedures for the separation, storage, modification of modes and means of transport of goods in transit, the general packing of goods in transit in Clause 1, Article 43 of Decree No. 08 has been amended as follows: "Customs procedures for goods in transit, they must be carried out at the head office of the first border gate of importation and the last exit border, except for goods in transit which share the same container, together with the export or import goods sent via postal services or express delivery services specified in Clause 9 of this Article".

For transshipment, Decree 59 supplements the concept of transshipped goods that are transported by sea from overseas to transshipment areas at seaports, and then exported from the central region to transit areas at other seaports for exporting to foreign countries. Transshipment cargoes among seaports must be transported by inland waterways or by sea. Transhipped goods are shipped all over the country once or several times.

Transshipment activities include loading, unloading, transporting and storing of goods at the request of the carrier at the transshipment area of the import border gate or transshipment area ofthe export border gate. The storing period of transit goods shall not exceed 30 days from the date of completion of the Customs procedures at the import border gate.

In the case where transshipped goods are stored at seaports in Vietnam and damaged, it is necessary to have more time to remedy them. The transshipment duration shall be extended corresponding to the time necessary for the implementation and must be approved by the Customs office. In the case where goods are transshipped according to the written permission of the competent agency, the extension of the permit must be approved by the competent agency.

The transshipment storage area must be separated from other cargo area of the port, with a surveillance camera installed and supervised by the Customs office. The goods must be monitored and managed by the application software and connected to the Customs office.

Decree additionally stipulates the area of transshipped goods at Vietnamese seaports of seaports of IA under the decision of the Prime Minister and seaports of Vietnam. Ho Chi Minh City and have adequate technical infrastructure (Clause 20, Article 1 of Decree 59).

In addition, Decree 59 also simplifies the management policy for transshipment to attract goods in transit through Vietnam, bringing into advantages of Vietnamese seaports.

The use of carrier seals is permitted

In the Customs administration, Decree 59 has added many provisions to ensure the management. According to analysis by the Drafting Board; the Law on Customs and the Commercial Law stipulates that goods in transit through the Vietnamese territory must be kept intact and must be subject to supervision by the Vietnamese Customs authority (the modes of supervision prescribed in Clause 1, Article 38 of the Customs Law). Accordingly, the responsibility of the Customs office where the goods are transported to (the border-gate of exportation) must check the Customs sealing status of the whole transported goods. The aforementioned regulations led to difficulties for the Customs office to inspect Customs seals or seals of carriers due to the fact that a number of Cambodian border gates (Vinh Xuong and Thuong Phuoc) do not have docks.

Accordingly, Decree 59 regulates that goods transported by sea, inland waterways, air and railways shall be subject to Customs sealing in the event that there is no sealing of the carrier. In the case where goods transported by inland waterway into Vietnam can not check the sealing status of the shipping carrier and fail to perform the customs sealing, the Customs declarers shall have to keep the original goods and the Customs office at the export border gate will inspect the Customs seals or inspect the seals of the carrier.

Particularly for transported goods by road or inland waterway, apart from Customs seals or seals of carriers, they must be supervised by other technical means. In case of transit goods transported by inland waterway to foreign countries, Customs Branch of export border gates shall base on information on roadmaps, transportation time and warnings (if any) to decide on inspections of Customs seals or seals of shipping companies.

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According to the Drafting Board, the use of seals by carriers instead of Customs seals in some cases still ensures a simplified procedures of shipping. At the same time, problems arising in the inspection of Customs seals or seals of carriers which were encountered at a number of Vinh Xuong and Thuong Phuoc border gates shall be solved.