What are Prohibited Act in Customs in Vietnam?

 According to Article 10, Customs Law in Vietnam, prohibited acts in customs in Vietnam are:

1. For customs officials:

-Causing troubles and difficulties when following customs formalities;

-Screening or colluding with others in smuggling or illegally transporting goods across the border, committing trade or tax fraud;

-Taking bribes, appropriating or embezzling temporarily seized goods or other acts for self-seeking purposes;

-Other violations against the law on customs.

2. For customs declarants, entities with rights and obligations related to import, export and transit of goods, or exit, entry and transit of vehicles:

-Committing fraudulent acts in carrying out customs formalities;

-Smuggling or illegally transporting goods across the border;

-Committing trade or tax fraud;

-Giving bribes or other acts for self-seeking purposes;

-Obstructing customs officials in performing their official duty;

-Hacking, falsifying or destroying the customs communication system;

-Other violations against the law on customs.

-Our customs lawyers in Vietnam at ANT Lawyers always follow development of customs law to provide the client with update.

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Summary of Customs Development Strategy from 2021 to 2030

 In order to create favorable conditions for export and import to ensure state budget revenue and combat smuggling of banned and toxic goods, intellectual property infringement, counterfeiting of origin, affecting national security, contributing to national security create fairness and equality in business as well as modernize the Customs sector, the General Department of Customs has issued the Draft Customs development strategy for the period of 2021-2030 to gradually build Vietnam’s Customs in accordance with the new situation.

The Draft Decision on Customs development strategy for the period of 2021-2030 (the “Draft”) expect to ensure the management of the State and in compliance with international commitments which Vietnam is a member. Besides, the Draft also is expected to create favourable conditions for enterprises and flexibility in management towards modernization of the Customs in the new era.

The Draft aims at the overall goal of building a regular, modern force, on par with other countries in the region and the world, towards the development of a smart customs system, propose solutions to improve efficiency in the process of carrying out customs procedures and collecting taxes effectively to create convenience for passengers and businesses. At the same time, the Draft also aims to ensure maritime security, national competition and protect Vietnam’s interests and sovereignty.

In addition, the Draft sets out the main goals for the period 2021-2030 with the smart customs model continuing to be the key goal, built in a professional direction, minimizing administrative procedures and synchronization throughout the system, applying the achievements of the Industrial Revolution 4.0 and the cooperation and facilitation of the Customs of developed countries to realize the requirements of reform and modernization of state administration towards building a digital government, E-government. In addition, the prevention of smuggling activities is still a prerequisite goal to protect the business environment in Vietnam. Moreover, the goal is to reduce the human resource apparatus, improve the capacity and qualifications of the customs force to suit the needs of innovation in customs management technology.

The Draft sets a target that by 2025, Customs will strive to complete the redesign of the customs system in the direction of digital customs while ensuring information security; to ensure 90% of applications will be processed online, minimizing manual administrative procedures; to build a paperless, simple and effective working environment. Accordingly, the Draft is expected that 80% of inspection activities will be carried out through the digital environment, the information technology system of the General Department of Customs. Along with that, the Draft would improve the efficiency of the Customs Single Window to 100% for administrative procedures and integrate it on the National Public Service Portal for easy access and implementation by businesses and people; promote the signing of international treaties on customs to create favorable conditions for domestic enterprises as well as ensure the principle of benefits for all parties.

In order to achieve the above objectives, the General Department of Customs has proposed specific solutions to improve the legal system so that the implementation is synchronized; improve management methods to prevent violations and apply information technology to gradually guide people and businesses familiar with online procedures; improve the use of technology for customs officers, step by step reduce inappropriate procedures, and put the smart customs model into the application to make appropriate adjustments to reality.

In terms of customs operations, the Draft also sets out step by step application of supply chain management models to meet current needs and research the implementation in the field of insurance and customs clearance guarantees, accelerate the inspection of goods in electronic form, reduce paperwork to the paperless stage, simplify administrative procedures, reduce waiting time at the border, implement the flow of goods, authorization to check at the border gate, apply modern technology solutions and inspection and monitoring equipment suitable to the characteristics of the border gate area, capable of integrating and exchanging data in a centralized and unified manner.

Regarding tax administration, the Draft expects to uniformly apply taxes and collection rates suitable for each type of goods, minimize the tax filing process, quickly develop tax schedules as well as clear and transparent processes, creating convenience for both payers and regulators.

Management of import and export activities, import and export of means of transport must be unified, concentrated, and minimized the handling process, cutting unnecessary intermediary stages. The Draft also aims to encourage and create conditions for people, businesses and related parties to participate in legal policy criticism, cooperate with customs authorities in law enforcement and supervision.

With this Draft, Vietnam has the prospect that by 2030, Vietnam will complete the renovation and modernization in the customs sector, including building a strong and clean customs force, as well as equipping vehicles and applying artificial intelligence technology in customs management, striving to build a customs force on par with developed countries in the region, keeping up with advanced countries in the world.

ANT Lawyers, a law firm in Vietnam always follow up customs cases and its development to update clients on regular basis.

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Customs Lawyers in Vietnam Update on Customs Law 2014

 Customs laws are some of the most complex laws in any country, and Vietnam is no exception. As a result of the country’s rapidly changing economic situation and its increased globalization, the Vietnam government has had to update and revise its customs regulations frequently. Customs lawyers in Vietnam could help follow up with changes and update the client.

General About Customs Laws in Vietnam 

On 23rd June 2014, the Vietnam National Assembly has issued the new Vietnam Customs Law. This new law comprises of 8 Chapters, 104 Articles and shall come into effect on 1st January 2015.  

Accordingly, the new 2014 Vietnam Customs Law is focusing on customs procedure reform, modernization of customs administration, codify international laws on international commitment in order to meet the requirements and facilitate integration beneficial for import and export activities; improve the effectiveness and efficiency of customs operations management.

Vietnam’s customs laws are divided into two main areas: import/export regulations and taxation.

These two areas of customs law are regulated by the Ministry of Finance and the General Department of Customs, respectively.

Import/export regulations cover everything from documentation requirements to tariff rates, while taxation regulations cover the collection of customs duties and other taxes on imported goods.

Both areas of customs law are complex and often require the assistance of experienced customs lawyers in Vietnam to understand and navigate.

All imported and exported goods must comply with the requirements of the Vietnam Customs Law, which includes detailed regulations on the types of goods that can be imported and exported, as well as documentation and certification requirements.

In addition, imported and exported goods must comply with the requirements of the Free Trade Agreement  which sets out rules on tariff rates and other restrictions.

It is important for businesses to understand and comply with these regulations in order to avoid delays or fines.

The taxation regulations in Vietnam are also complex. Imported goods are subject to customs duties, which vary depending on the type of goods and their origin.

In addition, businesses may be required to pay other taxes, such as value added tax, excise tax, and stamp duty. 

Highlights of Customs Laws in Vietnam 2014 

Article 23 of the law regulates the custom documents towards reducing the numbers of papers of customs documents required in the relevant documents to be submitted when doing customs procedures i.e. commercial invoices, import-export document. Custom documents can also be in writing or electronic invoices.

Besides, the new Vietnam Customs Law boosts the management practices from pre-check to post-check. Mechanism of post-clearance inspection for a period of 5 years is strictly specified in terms of objects, conditions and sanctions when a violation is detected. This provision not only facilitates but also tightly controls the flow of goods to ensure that it is in compliance with the customs declaration.

Clause 6 Article 88 of the 2014 Vietnam Customs Law regarding the jurisdiction of the customs authorities in the application of prevention of smuggling and illegally transporting goods across borders has been supplemented to detail the measures to control custom.

In addition, the provisions of Article 92 stipulates that Customs agency, customs officers shall be equipped with and using professional technical facilities, weapons, support tools, flags, signal flares, lights, screening, biochemical technology, mechanical equipment, electrical, electronic and other means as prescribed by law to perform the task of preventing and battling against smuggling, illegal transport of goods across the border. The equipment and the use of weapons and tools to support prescribed by law shall be governed in complied with regulations for management and use of weapons, explosives and support tools. These are important provisions to prevent and battling against smuggling, illegal transport of goods across the border.

How Customs Lawyers in Vietnam Can Help?

Customs lawyers in Vietnam can play an essential role in helping companies to navigate through the various complexities of customs laws in Vietnam. 

Customs lawyers in Vietnam could help review the internal documents to ensure it reflect the current changes in customs laws.

In particular, the customs lawyers in Vietnam can help to interpret the rules and regulations in order to ensure that companies are in compliance with the current laws. 

Further, customs lawyers in Vietnam provide legal advice on compliance, and help represent the client to work with Customs Authorities for clarifying decisions, and or file disputes on administrative matters, HS code application, tax level… to protect the client’s best interests.

ANT Lawyers, law firm in Vietnam

We help clients overcome cultural barriers and achieve their strategic and financial outcomes, while ensuring the best interest rate protection, risk mitigation and regulatory compliance. ANT lawyers has lawyers in Ho Chi Minh city, Hanoi,  and Danang, and will help customers in doing business in Vietnam.

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The Crucial Evolution of Customs Law in Vietnam: Steering Towards Trade Promotion and Economic Resilience

 As Vietnam strides confidently into a future marked by significant economic growth and an expanding role on the global manufacturing stage, the evolution of its customs laws stands as a testament to the nation’s commitment to fostering a conducive environment for trade and investment.

The expected surge in Vietnam’s wealth and its consolidation as a manufacturing hub necessitate a robust legal framework that can adapt to changes while promoting trade efficiency.

In this vein, Vietnam’s customs laws have been undergoing a transformative journey, aiming to streamline administrative procedures and enhance transparency, thus serving as a critical pillar in the country’s economic development strategy.

A Responsive Legal Framework for an Expanding Economy

In recent years, Vietnam has witnessed a rapid increase in international trade activities, compelling a strategic overhaul of its customs legal framework. This overhaul is not merely a bureaucratic update; it represents a deep-seated commitment to simplifying administrative processes and creating a legal basis for smooth import-export operations.

This commitment has been crucial in driving economic development, ensuring budget revenue, and combating smuggling and trade fraud.

The refinement of customs laws has been a proactive response to the changing dynamics of global trade and the specific challenges posed by events such as the COVID-19 pandemic. During such critical times, Vietnam’s customs authorities have adeptly proposed and enacted legal norms to support the continuity of trade, demonstrating an admirable flexibility and resilience.

Customs Law Facilitating Trade, Ensuring Compliance

The essence of Vietnam’s customs law refinement lies in its dual objective: to facilitate trade and ensure rigorous state management over customs procedures. The introduction and amendment of legal documents have been guided by principles of national administrative reform—uniformity, transparency, and simplicity.

These principles not only make trade operations more convenient but also tighten customs control in compliance with the law, enhancing businesses’ legal adherence.

Significantly, the pandemic’s adverse effects on economic life underscored the importance of timely legal interventions. For instance, resolutions allowing the continued storage of goods affected by COVID-19 disruptions exemplified the government’s supportive stance towards businesses, easing considerable burdens during unprecedented times.

Towards Modernization and Digitalization

Looking ahead, Vietnam’s strategic direction for customs law development aligns with the broader vision of creating a modern, transparent, and efficient customs environment. This vision encompasses the adoption of digital solutions and the integration of international best practices to streamline customs processes.

The focus is on crafting a legal foundation robust enough to support modern customs management methods, facilitating international trade while securing national economic interests.

In essence, the journey of refining customs laws in Vietnam is a reflection of the nation’s broader economic aspirations. It underscores a recognition of the critical role that a transparent and efficient customs system plays in attracting foreign investment, enhancing trade, and ultimately contributing to sustainable economic growth.

The Heart of Economic Transformation

As Vietnam continues to carve out its place in the global economy, the evolution of its customs laws represents more than just regulatory changes. It symbolizes a nation’s adaptability, resilience, and forward-looking vision.

The systematic refinement of these laws, aimed at simplifying procedures and ensuring legal compliance, mirrors Vietnam’s broader aspirations for economic prosperity and resilience.

At a time when global trade dynamics are increasingly complex and competitive, Vietnam’s focus on modernizing its customs laws is a strategic move that positions the country as a reliable and attractive destination for international business.

This legal evolution is not just about facilitating trade; it’s about crafting a legacy of economic resilience and strategic foresight.

The transformative journey of Vietnam’s customs laws is a compelling narrative of adaptation, resilience, and strategic foresight.

As the country navigates its path towards economic prosperity and a more significant role in the global manufacturing landscape, the refinement of customs laws stands as a critical enabler.

It is a testament to Vietnam’s commitment to creating a conducive trade environment, underpinned by transparency, efficiency, and compliance with international standards.

In the evolving tapestry of Vietnam’s economic development, the customs law serves as both a foundation and a catalyst, ensuring that the nation’s growth is not just rapid but also sustainable and inclusive.

ANT Lawyers, law firm in Vietnam

We help clients overcome cultural barriers and achieve their strategic and financial outcomes, while ensuring the best interest rate protection, risk mitigation and regulatory compliance. ANT lawyers has lawyers in Ho Chi Minh city, Hanoi, and Danang, and will help customers in doing business in Vietnam.

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Sales and Purchase of Ocean Ships in Vietnam

 Ship sales and purchase should involve shipping lawyers in Vietnam whom understand the laws and the shipping industry.

For long, maritime activities and carriage of goods by sea are important parts of the international economic life, supporting the import and export of goods, connecting Vietnam to the world commodities market and therefore playing as driving factors behind the development of maritime transportation field.

As the demands for transportation exists, although some times up and down depending on the cycle of the economy, ships purchase and sales are important part of maritime related transaction businesses. With its own special characteristics, the purchase or sale of ships usually involve enormous economic interests, and risks at the same time. Ships are special objects in transactions therefore require the help of local and international ship lawyers with knowledge and experience to handle.

Stages in a Ship Transaction

The sale and purchase of a ship include contract, inspections, and the closing.

At the first step, both buyer and seller appoint ship brokers to carry out the negotiating and defining the clauses needed in the contract. Once details of the contract are agreed, the parties shall initiate the process of drafting the contract under Memorandum of Agreement (MOA) which normally is under a standard form. The governing law applies to such contract is usually the law of the country where the ship is registered its nationality. To enable the international transaction of ship, parties will sign an addendum to the MOA, stating necessary documents to be provided which may include: Approval from Director or Shareholders of resolving the sale of the vessel; Export or Import Permission of the Maritime Administration (requirement depending on national legislation), Power of Attorney, as well as other related documents involving the grade, commitments of the seller, etc. Once lawyers of buyers and sellers agree on the documents and have initial checking of such, the buyer may pay a deposit as a percentage of the value of the contract.

After the forming of contract, shipping lawyers of buyer start to inspect the documents provided by the seller. The inspection of the ship could be conducted in parallel. For the documents inspection, the buyer will check the ship’s class records and certificate records. The inspection of records will reveal the history of the ship’s maintenance in compliance with the requirement of class. Furthermore, the buyer need to check the mortgages and the maritime lien records to make sure that the vessel is free from encumbrances, debts, taxes, mortgages and maritime liens. This will help prevent any damages or loss subject to the legal issue of the ship which may occur before the delivery of the ship. The buyer should also acknowledge of whether the ship owner is in debts for fuels or salaries, etc. However, in some case, it may be difficult to verify such information without the collaboration of the ship owner.

For the physical inspection, instead of just checking the logbook for the status of the ship, it is preferable to hire a professional examiner to control the process of physical inspection relating the safety, certificates, equipment and engine issues. Sending a person on the ship to participate in some of the ship’s voyages may be advisable in circumstances.

At closing, the parties shall transfer the ship and all related documents as required. During the stage of delivery, the buyer physically accepts the delivery of the vessel after re-checking the status of the vessel, the remaining amount of fuel and engines status at the designed port. The place for delivery may be at a different location from where the contract was made. It depends on the agreement between the parties and usually for the convenience of the voyage.

An important document that needs to be transfer at this stage is the Bill of Sale. The Bill of Sale should be in proper form and duly notarized. In some country, it is crucial to get the Bill of Sale registered at the authority agencies in order for it to take effect.

Other procedures that the parties also need to complete at the state’s authority agencies include legalization of the ship transaction process, transference of vessel ownership and modification of the shipping registration. The state where parties are to complete such procedure shall be the country where the vessel is registered (the country which the vessel is permitted for flying flag).

Why Shipping Lawyers are Important in Ship Transaction?

Seagoing vessel is a special type of asset in a commercial transaction. When engaging in a contract to purchase a vessel, it is important to consider not only the nationality of the owner but also the nationality of the vessel itself. As the process of the transaction involves many procedures and requirements which usually need to be complete at the state’s authority agencies, the law of the country where the vessel is registered shall have a strong influence on the interpretation and execution of the contract.

The model contract usually comes with specific requirements on the content and form of the commercial invoice and the Bill of Sale pursuant to the national legislation (the nation where the vessel is registered). The parties may agree to change some of the clause in the model contract to meet their demand in the transaction. However, if a model contract is chosen to be used, the parties should at all time acknowledge of all the clauses existing in the contract and try to comply with the form and requirement of such documents.

Most of the transferred documents in a vessel transaction need to be notarized or legalized in order for the contract to take effect. However, the process of notarized and legalized in some country only certify that the documents have been duly signed and stamped, it doesn’t confirm or verify the certainty of the content and information provided in the documents. Therefore, both parties should require the other to provide the certificate or proof of the competent authority agencies confirming the certainty of the information or content that they have committed in the contract. For example, in a ship transaction, the buyer usually required seller to commit that the ship is free from any encumbrances, debts, taxes, mortgages and maritime liens. To confirm the certainty of such information, the buyer may require the seller to provide documents or certification from National Registration Agency for Secured Transactions to ensure the documents are provided in good faith. To reduce the risks, the buyer may also ask for a specific clause in a contract stating the liability of the seller in the event of future dispute relating the vessel.

In case one parties of the contract is an organization or company, the required documents should include the Minute of the Joint Meeting and Decision/ Approval of Directors or Shareholders resolving the sale of the vessel in accordance with the term and conditions of the MOA. Those documents should be duly established and signed in accordance with the requirement of the national legislation (law of the country where the company is set up). The Approval of Shareholder should also require the signature of all the shareholders of the company in order to avoid future disputes that may arise. Other documents which parties should also consider including Association’s Regulation, authorized papers, passports and personal documents of the representatives of each party. This will help better understand the legal position of parties in the contract, ensure their legal status to engage and perform in the contract.

ANT Lawyers have experience in laws and shipping matters to advice clients whom are interested to buy ships from Vietnam ship owners. We assist our clients in the process of reviewing contract, examining the documents and giving useful consultation for the sale and purchase procedure.

We help clients overcome cultural barriers and achieve their strategic and financial outcomes, while ensuring the best interest rate protection, risk mitigation and regulatory compliance. ANT lawyers have Attorneys in Hanoi, Attorneys in Ho Chi Minh and Attorneys in Danang.

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