Review and finalize legal framework on customs bond mechanism

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A specialized inspection unit takes a sample of import and export goods. Photo: N.Linh.

Expanding the object of customs bond

The Ministry of Finance has completed the draft scheme of customs bond for exported and imported goods and completed the National Assembly's Resolution on piloting the clearance bond mechanism; the draft Government Decree detailing the implementation of the Resolution to be submitted to the Government and the National Assembly for consideration. Currently, the Ministry of Finance is consulting the ministries, branches and localities on the issue.

According to the Prime Minister's Decision 1254/QD-TTg, approving the Action Plan to promote the National Single Window and ASEAN Single Window, reform the specialized inspection of exported, imported goods and to facilitate trade in the period 2018-2020,the project is called "Pilot implementation of the customs bond mechanism for a number of import and export goods subject to specialized inspection".

However, according to the Ministry of Finance, based on the fact the scope of the pilot application should be expanded, not only specialized inspection but also customs bond for tax payment time, for the delayed submission of certificates of origin and bond to ensure Customs management and supervision of goods eligible for tax exemption, non-tax payment or awaiting the examination of the codes and the value of the Customs authorities. The implementation in the field of customs management for import and export goods and transit goods will facilitate the implementation of customs procedures of enterprises, as well as compliance to comprehensive customs laws, tax laws and legal policies on specialized management.

Therefore, in order to ensure the legal basis and the implementation schedule, applying the customs bond mechanism for import and export goods and transit goods in the customs procedure process, in order to facilitate trade operations, reduce time of customs clearance of goods, but still ensure the supervision and management of the Customs, the Ministry of Finance proposes to build a scheme of customs bond mechanism for exported, imported, and copper goods, and the development of a Resolution on the pilot implementation of the customs bond mechanism for import and export goods and transit goods to be submitted to the National Assembly for consideration and approval.

Without affecting the fulfillment of tax obligations

The Ministry of Finance is receiving comments of relevant units for this draft Resolution. In particular, the concept of customs bond is also clarified. This is a form of commitment to ensure the fulfillment of tax obligations and other payables for import, export and transit goods of insurance enterprises with the Customs office when the guaranteed has not fulfilled tax obligations or violated the provisions of the customs law. The Customs office shall decide on customs clearance, release of goods or consignment of goods for preservation, pending the results of specialized inspection on the basis of customs bond.

Insurance enterprises, including non-life insurance enterprises and branches of foreign non-life insurance enterprises in Vietnam, are licensed by the Ministry of Finance to provide insurance in accordance with the Law on Insurance Business.

A Customs bond certificate is a document issued by an insurance enterprise, which has a commitment to the Customs office that it will perform financial obligations on its behalf and other obligations for the guaranteed as prescribed by law if the guaranteed does not perform or not fully perform the obligations prescribed by law with the Customs office so that the import, export goods and transit goods are cleared or released. Tax amounts guaranteed under the provisions of this Resolution are taxes calculated on import and export goods or transit goods, including import and export taxes, value added tax, special consumption tax, environmental protection tax and trade remedy tax.

The draft Resolution also introduces the principle of pilot implementation of the customs bond to ensure that it does not affect the implementation of tax obligations, and specialized management policies on import and export goods and transit goods.

The pilot deployment of a customs bond facilitates import and export activities, transit of goods, ensures the State management of customs in line with international practices. For import and export goods subject to full tax payment prior to customs clearance or release of goods, organizations and individuals may select organizations to guarantee tax obligations under the provisions of the Resolution or the provisions of the Export and Import Tax Law. For goods in transit related to trade agreements or international treaties in which Vietnam is a contracting party, organizations or individuals may choose to perform customs bond according to the provisions of the Resolution or in trade agreements and international treaties. For goods subject to quality inspection, if customs declarants fail to provide customs bond under the provisions of the resolution, the goods must be preserved and kept at border gates, except for goods under requests of specialized inspection agencies must be installed and operated to conduct specialized inspection according to the General Department of Customs notice.

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In addition, the draft resolution also provides for provisions regarding the refusal of customs bonds. Specifically, Customs rejects the certificate of customs bond in cases where the insurance enterprise fails to fulfill its committed obligations on the certificate of customs bond, the Customs refuses the customs bond of insurance enterprises for future import and export goods or transit goods. Insurance enterprises shall send a written request to the Customs office to refuse the certificate of customs bond presented by the guaranteed person and provide evidence proving that the guaranteed person fails to perform the obligation to return the insurance enterprise after the insurance enterprise has fulfilled the obligations of the guaranteed. Immediately after the guaranteed person refunds the full amount paid, the insurance enterprise shall send a written notice to the Customs office to accept the customs bond certificate for the next import and export goods or transit goods of guaranteed person.