Notices when implementing the temporary admission mechanism under the Istanbul Convention

illustration image. By: T.Bình

Decree 64/2020 / ND-CP guiding customs procedures, customs inspection and supervision, procedures for granting and returning ATA Carnet, ensuring import duty, other taxes and late payment interest, fines, fees and charges for goods subjected temporary admission under the convention.

This is not applicable to goods sent via postal services or goods in transit.

Besides that, issues are also specifically guided such as temporary admission of goods is the management regime for goods temporarily imported and re-exported, temporarily exported and re-imported to serve events.

ATA Carnet is used to replace declarations when implementing procedures to serve temporary import, temporary export, re-export and re-import. ATA carnet is granted by a guarantee agency. In Vietnam, it is granted by the Vietnam Chamber of Commerce and Industry (VCCI).

Regarding the guarantee agency, the agency is obliged to pay the import duty, other taxes, late payment interest, fines, fees and charges arising in the process of temporary admission of goods in accordance with the value of the collateral.

When implementing procedures for granting ATA carnet, goods owner must have collateral for the shipment under the rate of 110% of the total import duty amount and other highest taxes of the country where the temporarily admitted goods are transported through.

The events include exhibitions, fairs, shows, exhibitions about commerce and technology; conferences, international seminars, official meetings and memorials.

Goods subject to temporary admission include goods in Clause 1, Article 4 of the decree. At the end of the event, goods must implement re-export or re-import procedures, or implement procedures for transferring to domestic sale or change of use purposes in accordance with regulations.

Conditions for applying temporary admission are specified as follows: Goods subject to temporary admission must comply with the policies on management of goods temporarily imported and re-exported, temporarily exported and re-imported; temporary admission goods are identified by their serial number or unique identifier.

The time limit for temporary import and re-export and the time limit for temporary export and re-import is 12 months from the date of completing procedures for temporary import but must be within the period of use of the ATA carnet (including the term of the replacement book).

If goods can’t be re-exported from the destination country (for goods temporarily exported from Vietnam), the customs declarant can extend the time limit at the customs authority where temporary export procedures were carried out.

If the goods are temporarily seized under a decision of a competent authority, the violation will not be handled during the time of temporary seizure if the temporary importation period is exceeded.

Regarding procedures for granting ATA carnet, returning ATA books (Articles 8, 9, 10) are part of the functions and tasks of VCCI, of that the General Department noted:

Before using the replacement ATA carnet, the owner presents the ATA carnet to the customs authority where the first shipment implemented procedures for temporary export of the replaced book for confirmation.

In case of being ineligible for confirmation on the ATA carnet, the owner of ATA carnet will be guided to carry out procedures on the paper customs declaration.

Instructions on customs procedures and ATA carnet information and how to use them have been given. For example, customs procedures for temporary admission implemented at border-gate customs branches and express customs branch.

Customs authority will base on dossiers (including ATA carnet) to carry out customs procedures; conduct inspection of customs dossiers; the physical inspection of goods should be implemented on applicable risk management principles; and perform information confirmation on the ATA carnet.