Legal provisions on preferential customs procedures

In the priority regime for customs procedures, can businesses be given priority by the customs authority to carry out goods delivery procedures first?

1. In the priority regime on customs procedures, can businesses be given priority by customs authorities to carry out goods delivery procedures first?

In the priority regime of customs procedures, can businesses be given priority by customs authorities to carry out goods delivery procedures first as stipulated in Article 9 of Decree 08/2015/ND-CP supplemented by Clause 6, Article 1 of the Decree. 59/2018/ND-CP as follows:

Priority mode

1. Priority regime is implemented according to the provisions of Article 43 of the Customs Law.

2. Priority is given to customs authorities and port and warehouse business agencies to carry out goods delivery and receipt procedures first, and to prioritize inspection and supervision first.

3. In case the goods are subject to specialized inspection, the enterprise is allowed to bring the imported goods to the enterprise’s warehouse for preservation while waiting for the results of the specialized inspection, unless the law on specialized inspection stipulates that the goods must be inspected at the border gate. In cases where goods are subject to specialized inspection at the border gate, priority will be given to inspection first.

4. Exempt from post-customs clearance inspection at the customs office, except for the case specified in Clause 1, Article 78 of the Customs Law

Thus, according to the law on priority customs procedures, enterprises are given priority by the customs agency to carry out goods delivery and receipt procedures first.

2. Are businesses that have committed tax evasion eligible to apply for priority in customs procedures?

Are businesses that have committed tax evasion to be eligible to apply for priority as prescribed in Article 10 of Decree 08/2015/ND-CP as follows:

Conditions for applying for priority first

1. Comply with customs and tax laws

For a period of 02 consecutive years up to the time the enterprise submits a written request for recognition as a priority enterprise, the enterprise has not violated the provisions of law on taxes and customs to the extent of being handled for violations of the following acts:

a) Tax evasion acts; tax fraud; smuggling and illegal transportation of goods across borders;

b) Administrative violations with forms and penalties beyond the authority of the Head of the Customs Branch and equivalent positions.

2. Conditions for good compliance with accounting and auditing laws:

a) Apply accounting standards according to regulations of the Ministry of Finance;

b) Annual financial statements must be audited by an auditing company qualified to provide audit services in accordance with the law on independent auditing. The audit opinion on the financial statements stated in the audit report must be a fully accepted opinion according to Vietnamese auditing standards.

3. Conditions on the internal control system:

Enterprises must implement and maintain systems and processes for management, supervision, and control of actual operations in their entire supply chain of imported and exported goods.

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Thus, according to the law, if an enterprise has ever committed tax evasion for a period of 02 consecutive years up to the time the enterprise submits a written request for recognition. Recognizing a priority enterprise will not meet the conditions.

And an enterprise that has committed tax evasion before a period of 02 consecutive years by the time the enterprise submits a written request for recognition as a priority enterprise can still meet the conditions.

3. Who has the authority to make a decision to recognize priority regimes for businesses in customs procedures?

Who has the authority to make decisions to recognize priority regimes for businesses in customs procedures as prescribed in Article 11 of Decree 08/2015/ND-CP supplemented by Clause 7, Article 1 of Decree 59/2018/ND-CP as follows: following:

Procedures for recognition, extension, temporary suspension, suspension of application of priority regime

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2. Appraisal and recognition of priority enterprises

a) Within 30 days from the date of receipt of complete documents as prescribed in Clause 1 of this Article, the General Department of Customs shall appraise and conclude the recognition of priority enterprises.

For complicated cases where it is necessary to consult relevant Ministries and branches, the appraisal time can be extended but must not exceed 30 days;

b) In case the enterprise is eligible, the General Director of the General Department of Customs shall issue a decision to recognize priority enterprises.

The decision to recognize priority enterprises is valid for a period of 03 year from the date of issuance of the decision and automatically extended for the next 3 years if the enterprise still fully meets the prescribed conditions.

3. Temporarily suspending the application of priority regime: In case an enterprise has not fulfilled its responsibilities as prescribed in Article 45 of the Customs Law when notified by the customs authority, the customs authority shall temporarily suspend the application of priority regime for a period of 60 days.

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Thus, according to the provisions of law, the person with the authority to make a decision to recognize the priority regime for enterprises in customs procedures is the Director General of the General Department of Customs.