Incorporate the protocol on the Customs Transit System into national law to ensure national interests

	Preparing to put ASEAN Customs Transit System into operation
	Proposing to implement Customs procedure via ASEAN transit system
	New chance for transporting transit goods between ASEAN countries

Minister Dinh Tien Dung presented the Government’s Proposal at the session.

Implemented on a single system

Presenting the Government’s Proposal, Minister of Finance Dinh Tien Dung said that implementing the provisions of the Law on Promulgation of Legislative Documents 2015, and implementing Conclusion No. 160 / KL-UBTVQH14 dated 14/07 / 2017 of the National Assembly Standing Committee on approving Protocol 7 on the ASEAN Customs Transit System on the facilitation of goods in transit, the Government would like to propose a draft decree defining customs procedures, customs inspection and supervision of goods in transit through the ASEAN Customs Transit System to implement Protocol 7 on the Customs Transit System.

Minister Dinh Tien Dung said that the development of legislative documents to implement customs procedures, customs inspection and supervision of goods in transit through the ASEAN Customs Transit System (referred to as ACTS System) is required.

This creates a legal basis for implementing customs modernisation for goods in transit among ASEAN countries, including Vietnam, reducing paperwork in customs clearance for goods in transit.

Also, improving the competitiveness of enterprises involved in goods in transit, facilitating and promoting transit of goods, promoting Vietnam's geographical advantages in transportation of goods in transit as well as ensuring Vietnam's commitment when participating in the approval of Protocol 7 on the ACTS System to further facilitate the transportation of goods in transit and supporting the implementation of ASEAN Free Trade Area and regional economic integration.

Under Protocol 7, Customs procedures will be electronically handled on a single system from the departure country to the transit country, and to the final destination country, contributing to reducing costs and facilitating enterprises in transit of goods between Vietnam and ASEAN member countries.

The Minister stated that the Decree provides for customs transit procedures through the ACTS system, which stipulates customs procedures for goods in transit under four cases when Vietnam is the departure, destination and transit of the customs transit journey.

However, "Current legal provisions have not revised the guarantee mechanism, the application of authorised economic operators for transit of goods should be consulted by the National Assembly Standing Committee," said Dung.

For example, to carry out the transit of goods under the Protocol, the goods must be under the guarantee and tax deposit. This is a new regulation compared to the current law, so the draft decree specifies issues related to tax guarantees for goods in transit, guarantor organisation, and support mechanisms in tax debt recovery, arising circumstances or force majeure circumstances and the handling mechanism because the current tax law is stipulating that goods in transit are not subject to tax.

The promulgation of a Decree is mostly approved

Reviewing this content, Chairman of National Assembly's Finance and Budget Committee, Nguyen Duc Hai, said that the committee agreed on the need to issue a Government's Decree to stipulate customs procedures, and Customs inspection and supervision for goods in transit through the ATSC system to implement Protocol 7 on the Customs Transit System to concretise Conclusion No. 160 / KL-UBTVQH14 of 14 / July 2017.

The content of the draft Decree include provisions that the current domestic law has not yet adjusted to, such as the guarantee mechanism for goods in transit, the application of authorised economic operators in the transit activity. Moreover, there are stricter regulations than the current Law, such as the regulation on rights of Customs declarants and Customs checkpoints.

Members of the National Assembly Standing Committee confirmed that it is necessary to promulgate a Decree to codify Protocol 7, in accordance with the signed international treaties.

Deputy Chairman of the National Assembly, Phung Quoc Hien, said that the Decree must ensure the principle of "not applying the entire Protocol 7 but incorporate it into Vietnamese laws, ensuring sovereignty and national interests and interests of Vietnamese organisations, enterprises and individuals.”

Regarding the contents on mechanisms on guarantee, deposit and authorised economic operators, the commissioners agreed in principle, but requested the Government to review the authority to decide and approve international treaties under the National Assembly or the National Assembly Standing Committee.

Hien also proposed that, based on the comments of the Finance - Budget Committee, the Legal Committee and the Government should acquire and be responsible for guiding and ensuring the principle of sovereignty and national interests and those of organisations and individuals, avoiding damage to the Vietnamese side.

Regarding the responsibility of promulgating the Government's Decree, the promulgation of the Decree must comply with the principles of the Law on Promulgation of Legislative Documents. Notably, members of National Assembly Standing Committee also said that it needs a pilot with cautious steps, thereby drawing experience before official implementation.

The Government is assigned to consider the time of approving Protocol 7 according to the schedule and approving procedures of other countries. The Government is assigned to decide the effective date of the Decree.

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The National Assembly Standing Committee also assigned the Government to direct and continue to improve the capacity of customs, especially electronic customs, to ensure security, smooth connectivity, and enhance inspection and control, combat against smuggling, trade fraud, or acts of abusing transit for trade fraud.