The results of the post-customs clearance inspection in the first quarter of 2024 and important notes for business

The results of the post-customs clearance inspection for the first quarter of 2024

In 2023, the entire industry conducted 2.181 post-clearance examinations, of which 893 examinations took place at the customs declarant’s headquarters and 1.288 examinations took place at the customs authority’s headquarters.

Based on the inspection results, the Customs authority determined taxes and imposed administrative fines totalling 1,081.62 trillion Vietnamese dong (an increase of 63% compared to 2022). The amount collected for the state budget was 966.28 trillion Vietnamese dong (an increase of 115% compared to 2022).

In 2024, the Customs industry continues to strengthen post-customs clearance inspections throughout the country. It focuses on implementing major, important, and prioritized topics, and directs local customs offices to ensure comprehensive, unified, timely, and prevention of violations nationwide.

In the first quarter of 2024, the post-clearance examination conducted by the entire industry consisted of 339 inspections. Out of these, 132 inspections took place at the customs declarant’s headquarters, and 207 inspections took place at the customs authority headquarters. The total amount of taxes determined and administrative fines imposed was 77.6 billion Vietnamese dong, with 71.52 billion Vietnamese dong collected for the state budget.

The amount of uncollectible tax debt arising from post- clearance examination operations is also quite large, particularly, in the HCMC Customs Department, where the total debt amounts to nearly 115 billion Vietnamese dong from 67 businesses.

“In the upcoming period, the Customs Department will focus on the inspection of the taxable value for goods with high tax rates, large import-export turnover, and high risks of trade fraud. Post-customs clearance examination will be conducted for cases suspected of undervaluation compared to customs value databases, aiming to create a level playing field for investors and businesses. There will be enhanced coordination with relevant departments and agencies in the recovery and handling of tax arrears”, shared Huynh Van Cuong, Deputy Director of the Quang Ngai Provincial Customs Department.

Important considerations for businesses

According to Decree No. 38/2024/NĐ-CP, which has been supplemented, additional personnel have been empowered to impose administrative penalties by the Customs authority. Specifically, the General Director of the Customs Department has the authority to impose fines of up to 1 billion Vietnamese dong. They also have the power to revoke the use of licenses or professional certificates with a specific duration or suspend activities with a specific duration. Additionally, they can confiscate assets and vehicles involved in administrative violations.

The Director of the Post-Customs Clearance Inspection Department under the Customs Department has the authority to impose fines of up to 50 million Vietnamese dong and exercise other penalty functions as mentioned above.

The Director of the Post-Customs Clearance Inspection Office has the authority to impose fines of up to 25 million Vietnamese dong and confiscate assets and vehicles involved in administrative violations with a value not exceeding 50 million Vietnamese dong. The team leader within the Local Post-Customs Clearance Inspection Office has the power to impose fines of up to 5 million Vietnamese dong.

Furthermore, the existing procedural regulations remain unchanged. The post-clearance examination period is 10 days, with the possibility of a 10-day extension granted by customs inspection.

Post-customs clearance inspection process

Step 1: Public announcement of the decision to conduct a post-clearance examination at the beginning of the examination process.

Step 2: Cross-reference the declared information with accounting records, accounting documents, financial reports, relevant documents, and the actual condition of exported and imported goods within the scope and content of the post-clearance examination decision.

Step 3: Prepare the post-clearance examination report within a deadline of 5 working days from the completion of the examination.

Step 4: The authorized person responsible for the examination signs the examination conclusion and sends it to the customs declarant within a deadline of 15 days from the completion of the examination.

If the inspection conclusion require expert opinions from the competent authority, the deadline for signing the examination conclusion is calculated from the date of receiving the opinations from the competent authority. They competent authority provides opinions with a deadline of 30 days from the date of receiving the request from the customs authority.

Step 5: Take appropriate actions according to to the authority or escalate the case to the competent authority for further actions based on the examination results.