VIETNAM GENERAL CONFEDERATION OF LABOR

TON DUC THANG UNIVERSITY

FACULTY OF BUSINESS ADMINISTRATION

FINAL REPORT

CUSTOMS PROCEDURES

Topic: Presenting work related to goods customs clearance for

enterprises business contracts

Lecturer: Ph.D Nong Thi Nhu Mai

Group 3’s member:
Nguyen Ngoc Ngan - 720I0511
Ngo Thuy Nga - 720I0180
Bui Chi Thanh - 720I0476
Nguyen Hien - 720I0516

HCMC, December 8th, 2023

 LIST OF GROUP MEMBERS

Student
STT Full name Content Evaluation
ID
1 Nguyễn Ngọc Ngân 720I0511 Chapter 2 + Conclusion 100%

2 Ngô Thuý Nga 720I0810 Chapter 2+ Solution 100%

3 Nguyễn Hiển 720I0516 Chapter 1+ Introduction 100%

4 Bùi Chí Thành 720I0476 Chapter 1 + Format Report 100%

 Table of Contents
INTRODUCTION .......................................................................................................................... 1
CHAPTER 1: THEORETICAL BASIS RELATED TO GOODS CUSTOMS CLEARANCE FOR
SALE CONTRACTS OF ENTERPRISES ..................................................................................... 2
1.1. Theoretical basis of foreign trade contracts ................................................................................ 2
1.1.1. Concept of foreign trade contract ......................................................................................................... 2
1.1.2. Characteristics of foreign trade contracts .............................................................................................. 2
1.1.3. Classification of foreign trade contracts ................................................................................................ 3
1.1.4. Terms in foreign trade contracts ........................................................................................................... 3

1.2. Theoretical basis for customs procedures for import and export goods .................................... 4
1.2.1. Process of making import and export documents .................................................................................. 4
1.2.2. State management policy on goods origin ............................................................................................. 5
1.2.3. How to determine HS code in sales contract ......................................................................................... 6
1.2.4. Determine the tax amount payable upon customs clearance .................................................................. 8
1.2.5. Customs procedures for import and export goods ............................................................................... 10

CHAPTER 2: CUSTOMS CLEARANCE ANALYSIS OF VIETNAM BLACK TEA EXPORT

SHIPMENTS................................................................................................................................ 13
2.1. Analyze commercial contracts ....................................................................................................... 13
2.2. State management policy for exported goods ................................................................................ 19
2.3. Determine the HS Code of the Goods ............................................................................................ 19
2.4. Customs clearance process for exported goods ............................................................................. 20
2.5. Determination of customs value ..................................................................................................... 21
2.6. VNACCS - VCIS customs declaration steps .................................................................................. 22
CHAPTER 3:COMMON RISKS AND RECOMMENDATIONS ................................................. 27
3.1. Risks encountered ........................................................................................................................... 27
3.2. Recommendation ........................................................................................................................... 28
CONCLUSION ............................................................................................................................. 29
REFERENCES ............................................................................................................................ 30
 INTRODUCTION
Goods customs clearance is a critical aspect of international trade for businesses of all sizes.
Navigating complex regulations, procedures, and documentation can be a daunting task, impacting
the efficiency and cost of importing and exporting goods. This report “ Presenting work related to
goods customs clearance for enterprises business contracts” aims to provide a comprehensive
overview of goods customs clearance, specifically focusing on its relationship with enterprise
business contracts.

Background
In the globalized economy, businesses rely heavily on international trade to access new markets,
source materials, and expand their reach. However, the movement of goods across borders
necessitates compliance with customs regulations set by individual countries. Goods customs
clearance refers to the process of ensuring that imported and exported goods meet these regulations,
allowing them to be released for sale or use within the destination country.

Problem Statement
Despite its importance, goods customs clearance often presents significant challenges for
businesses. The complexity of regulations, varying requirements across different countries, and
potential delays can lead to increased costs, logistical hurdles, and disruptions to business
operations. Additionally, contractual obligations between businesses often involve the timely
transfer of goods, making efficient and compliant customs clearance a critical factor in fulfilling
agreements.

Objective and Scope

This report seeks to address these challenges by providing a clear understanding of goods customs
clearance and its connection to enterprise business contracts. It will cover key aspects such as:
• Relevant customs regulations and procedures for importing and exporting goods.
• Documentation requirements and common issues encountered during customs clearance.
• Impact of customs clearance on enterprise business contracts and strategies for mitigating
related risks.
• Best practices for managing customs compliance and ensuring smooth cross-border
transactions.

Structure of the Report

The report will be structured in the following sections:
› Chapter 1: THEORETICAL BASIS RELATED TO GOODS CUSTOMS CLEARANCE FOR
SALE CONTRACTS OF ENTERPRISES
› Chapter 2: CUSTOMS CLEARANCE ANALYSIS OF VIETNAM BLACK TEA EXPORT
SHIPMENTS
› Chaper 3: COMMON RISKS AND RECOMMENDATIONS

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 CHAPTER 1: THEORETICAL BASIS RELATED TO GOODS CUSTOMS CLEARANCE
FOR SALE CONTRACTS OF ENTERPRISES
1.1.Theoretical basis of foreign trade contracts

Foreign trade contracts are the legal basis establishing rights and obligations as well as related issues
between the parties in the process of buying and selling goods between buyers and sellers. The
contract will stipulate that the seller must provide correct and complete goods and transfer relevant
certification documents as well as ownership rights to the buyer.

The buyer's duty will be to pay the amount of goods to the seller.

In the official foreign trade contract, the seller has agreed to sell and at the same time the buyer has
also agreed to buy the goods. This exchange needs to be through the terms and conditions available
in a specific sample document and authenticated through the signatures of both buyers and sellers.
In import and export, it defines the roles and responsibilities of both parties:

• Buyer: receives goods and pays the amount to the seller.

• Seller: delivers goods in the right quantity and quality on time.

1.1.1. Concept of foreign trade contract

Foreign trade contracts are also known as import-export contracts. It is an agreement between a
buyer and a seller in two different countries.

The contract will stipulate that the seller must provide correct and complete goods and return
relevant documents to the buyer. The buyer's obligation is to pay the seller the amount for the goods.
A foreign trade contract is an official document, its terms and conditions are available in a specific
sample document, authenticated by the signatures of both parties.

1.1.2. Characteristics of foreign trade contracts

Foreign trade contracts are signed based on the wishes of both the seller and the buyer. The subject
matter of the contract is the goods transferred or transferred from one country to another. The
payment currency in the transaction is the foreign currency of one of the two parties or used by both
parties.

• The subject of the contract is the buyer and the seller; They can be natural persons, legal entities
and, in special cases, states. The subject matter of the contract must be goods.

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• The content of the contract is the entire obligation of both parties to transfer ownership of the
goods, as well as deliver the goods to the buyer and pay the seller.

• The form of the contract can be oral, written or established by specific actions.

• A contract for the sale of goods is a bilateral contract with commitments.

1.1.3. Classification of foreign trade contracts

 Long-term contracts have a long performance period and deliveries are divided into several
installments during that period.
 Short-term contracts have short performance periods and usually deliver in one go.
o By business form: Contracts include: Import-export contracts, processing contracts,
temporary import for re-export, technology transfer,...
 Export contract: A contract to sell goods to foreigners to transfer goods abroad. At the same
time, transfer ownership of goods to overseas buyers.8
 Import contract: A contract to purchase goods from abroad and bring goods into the country
to serve domestic consumption needs or purchase raw materials from other countries to serve
domestic production needs. .
 Re-export contract: A contract to export goods previously imported from abroad and these
products are not processed or produced domestically.
 Re-import contract: A contract to purchase goods produced in one's own country and sold
abroad. These products must not have been processed or produced abroad.
 Export processing contracts: These are contracts to import raw materials from abroad to the
country for assembly, processing or processing into products and consumption in the country
importing the raw materials. This means that these products will not serve consumer needs in
the producing country.
1.1.4. Terms in foreign trade contracts

If both the buyer and the seller have had a long-term cooperative relationship, the foreign trade
contract will be calculated according to certain items. However, some terms and agreements must
still be met as follows:

• The contract clearly states the number and date (The following documents are based on the
information in the contract to prepare).

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 • Detailed information about the seller and buyer's company (company name, address, contact
details...)
• Subject of sales contract (Subject)
• Description of the goods
• Unit price of goods, total contract quantity and total amount to be paid specifically in the
contract
• Packaging and shipment details (Package and shipment details)
• Discharging & Loading Port (Information about unloading & loading port)
• Time specified for delivery date or delivery period (Delivery date or delivery period)
• Penalties applied when the seller delivers goods short or late (Penalties of late shipment)
• Delivery terms according to Incoterm (must be in the contract)
• Payment method (TTR and L/C will usually apply)
• Documents provided from the exporter. (Those are documents such as Number of originals
and copies, time of transfer to the importer).
• Force majeure (applicable in cases of war, embargo, natural disasters, strikes, etc.)
• Dispute resolution (through arbitration or litigation).
• The contract will have the signature of a person with high authority in the business. (usually
the director).
• Translation of the contract. (Businesses should make bilingual contracts, which clearly state
which language will be used in the event of a dispute).
1.2. Theoretical basis for customs procedures for import and export goods
1.2.1. Process of making import and export documents

The process of making import and export documents goes through 5 main steps as follows:

*Step 1: Prepare a set of goods documents

Before going through customs procedures to export or import goods, businesses need to prepare
documents (mentioned above) in advance by printing forms, Then fill in all information. Besides,
you can also fill it out directly on the machine before printing it out.

*Step 2: Install VNACCS customs declaration software

Note: If your business has not installed VNACCS customs declaration software, you need to install
the software to facilitate the declaration and transmission of declarations.

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*Step 3: Register for specialized examination (if any)

If the imported goods are on the list of import and export goods subject to specialized inspection, the
enterprise needs to supplement documents and declare to the inspection agency in accordance with
regulations. And in the opposite case, businesses can skip this step.

*Step 4: Declare and transmit the declaration

After downloading the customs declaration software, businesses can now proceed to declare and
transmit the customs declaration. Then get the delivery order. Delivery order is one of the important
documents so that importers can take goods out of the port and then transport them to their
warehouse.

*Step 5: Complete procedures at the Customs Branch

The next step in the goods import process is to open and clear the customs declaration. The process
of opening a customs declaration requires preparing the following documents:

• Referral
• Streaming declaration
• Invoice
• Packing list
• Bill of Lading
• Other necessary documents if requested (C/O, freight invoice, import license,...).

After presenting the documents to the customs authority, if the documents are found to be valid, the
Customs will proceed with customs clearance on the system.

1.2.2. State management policy on goods origin

The Vietnamese state's management policy on goods origin is based on the regulations and rights
stipulated in the Commercial Law and other related legal documents.

Regulations on origin of goods: Vietnam implements a system of regulations on origin of goods to

ensure compliance with international rules and protect the country's production and export interests.
For some types of goods, a certificate of origin may be required to enjoy preferential tariffs under
free trade agreements that Vietnam has signed.

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Goods quality management: Vietnam establishes regulations on the quality of exported goods to
ensure compliance with national and international technical regulations and quality standards.
Products must meet technical, safety and environmental requirements before being exported.

Management of export of prohibited and restricted goods: There are a number of goods that are
prohibited from export or can only be exported according to specific regulations. Goods such as
weapons, explosives, toxins, wildlife, and rare animals and plants may be restricted or prohibited
from export according to the provisions of law.

Strategic commodity export management: Vietnam can apply export management measures to
protect local resources, ensure food security and meet the country's economic development needs.
These measures may include quantity controls, export licenses, and policies to promote value
addition in strategic industries.

Export tax policy: Vietnam applies an export tax system to regulate the export of goods. Export tax
rates can change over time and by type of goods to promote or discourage exports depending on the
state's policy goals.

1.2.3. How to determine HS code in sales contract

The HS Code System, also known as the Harmonized Commodity Description and Coding System
(Harmonized System), is an internationally unified classification system for all goods. The HS code
system is used in every country in the world to make transactions safer, faster and more efficient.

The HS Code system divides all types of goods into: Sections, Chapters, Subchapters, Groups and
Subheadings. For each level of the system, there are explanatory notes, legal definitions of goods,
and sequential item details of goods based on a unified structure.

Within the Catalog, Sections are groups of Chapters, created to group together a variety of goods
that have the same type, function, composition, effect, purpose or use. Next, Chapters are groups of
goods that are more closely related to each other, to provide clearer details. The HS comprises 21
Parts, 99 Chapters, 1,228 Groups, and 5,612 Subgroups.

• section i – live animals; animal products.

• ection ii – vegetable products
• section iii – animal or vegetable and oils and their cleavage Products; prepared edible fats;
animal or vegetable waxes

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• section iv – prepared foodstuffs; beverages, spirits and vinegar; tobacco and manufactured
tobacco substitutes
• section v – mineral products
• section vi – products of the chemical or allied industries
• section vii – plastics and articles thereof; rubber and articles thereof
• section viii – raw hides and skins, leather, furskins and articles thereof; saddlery and harness;
travel goods, handbags and similar containers; articles of animal gut (other than silk-worm
gut)
• section ix – wood and articles of wood; wood charcoal; cork and articles of cork;
manufactured of straw, of esparto or of other plaiting materials; basketware and wickerwork
chapter 2-hs classification
• section x – pulp of wood or of other fibrous cellulosic material; waste and scrap of paper or
paperboard; paper and paperboard and articles thereof
• section xi – textiles and textiles articles
• section xii – footwear, headgear, umbrellas, sun umbrellas, walking-sticks, seat-sticks,
whips, riding crop and parts thereof; prepared feathers and articles made therewith; artificial
flowers; articles of human hair
• section xiii – articles of stone, plaster, cement, asbestos, mica or similar materials; ceramic
product; glass and glassware
• section xiv – natural or cultured pearls, precious or semi-precious stones, precious metals,
metals clad with precious metal and articles thereof; imitation jewellery; coin
• section xv – base metals and articles of base metal chapter 2-hs classification
• section xvi – machinery and mechanical appliances; electrical equipment; parts thereof;
sound recorders and reproducers, television image and sound recorders and reproducer, and
parts and accessories of such articles
• section xvii – vehicles, aircraft, vessels and associated transport equipment
• section xviii – optical, photographic, cinematographic, measuring, checking, precision,
medical or surgical instruments and apparatus; clocks and watches; musical instruments;
parts and accessories thereof
• section xix – arms and ammunition; parts and accessories thereof
• section xx – miscellaneous manufactured articles
• section xxi – works of art, collectors’ pieces and antiques

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Vietnam uses 8 digits for its HS Code system, adding two digits at the end of the international HS
Code system, following the ASEAN – AHTN (ASEAN Harmonized Tariff Nomenclature) for tax
harmonization.

• The first 2 digits represent the chapter (for raw materials).

• The next 2 digits represent the heading (for unfinished products).
• The following 2 digits represent the sub-heading (for semi-finished products).
• The last 2 indicate the Local classification Number (for finished products).
1.2.4. Determine the tax amount payable upon customs clearance
1.2.4.1.Taxes

According to current regulations, when importing goods, depending on the type and imported goods,
businesses may have to pay taxes including:

• Import tax: This is a tax that applies when goods are imported from one country into another.

• Export tax: tax applied when goods are exported from a country to another country

• Value Added Tax (VAT): VAT is a consumption tax applied to goods and services within a
country.

• Special consumption tax: Some countries apply special consumption tax on certain types of goods
such as gasoline, cigarettes, alcohol, beer and other special products.

• Environmental protection tax: This is a tax applied to encourage environmental protection and
minimize the negative impacts of production and import-export activities on the environment.

• Safeguard tax: Safeguard tax is applied to protect domestic industry from unfair competition from
cheap imported goods.

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 • Anti-dumping tax: Anti-dumping tax applies when imported goods are sold at a price lower than
the actual market price of similar domestic goods.

• Anti-subsidy tax: Anti-subsidy tax applies when imported goods are produced or supported by
subsidy programs of the exporting country.

1.2.4.2. How to calculate import and export tax

- Calculate import/export tax

Import duty/Export duty = Taxable Value x duty rate

In which:

• Taxable Value = Value of goods + international transportation charges under delivery

terms + other applicable charges.
• Duty rate: Depending on the HS code, the duty rate can be determined, or if the goods
have preferential Certificate of Origin (C/O), the duty rate of the C/O goods will be
applied
- Calculate Special Consumption Tax

Special Consumption tax = Taxable Value. Special Consumption tax x duty rate

In which: Taxable Value.Special Consumption tax is the taxable value for special consumption
tax = (Import Duty+ Value of taxable import) x duty rate

- Calculate protection/anti-dumping tax

Safeguard/anti-dumping duties = Taxable value for import duties x Protective tariff rate

In which:

• Taxable value for import duties is the taxable value for import duty
• Protective tariff rate is the duty rate for safeguard duties (refer to the import and
• export tax schedule)
- Calculate VAT on imported goods

VAT = (Taxable value for import duties + Import duty+ Special Consumption tax +
Safeguard/anti-dumping duties + Environmental 9protection tax) x VAT rate
1.2.5. Customs procedures for import and export goods
1.2.5.1.Theoretical basis for customs procedures for import and export goods
1.2.5.1.1. EXPORT AND IMPORT GOODS (Art 17 Customs Law - Section 1 Circular 38)
- Exports of goods:
• Export declaration: The exporter or authorized representative needs to submit an export
declaration to the customs authority. This declaration provides information about the
exported goods such as description, quantity, value and destination.
• Documentation: Certain documents such as commercial invoice, packing list and shipping
documents may be required for the export of goods. These documents prove the transaction
and help smooth the customs clearance process.
• Customs Inspections: Customs authorities may conduct inspections or inspections of goods
to ensure compliance with export regulations and verify the accuracy of information
provided in the export declaration.
• Export taxes and fees: If applicable, export taxes or fees must be paid or reported in
accordance with customs regulations. Certain goods may be subject to export restrictions or
export prohibitions.
- Imports of goods:
• Import declaration: The importer or authorized representative needs to submit an import
declaration to the customs authority. This declaration contains information about imported
goods such as description, quantity, value and origin.
• Customs valuation: Customs authorities determine the customs value of imported goods
based on applicable valuation methods. This value is used to calculate taxes, customs fees
and other charges.
• Customs Clearance: Imported goods must go through customs clearance processes, including
document verification, payment of customs taxes and fees, and compliance with import
regulations and restrictions.
• Import taxes and fees: Imported goods may be subject to taxes, fees and other charges. Rates
and methods of calculating taxes and fees vary depending on the customs duty schedule and
goods classification.
• Import restrictions and prohibitions: Certain goods may be subject to import restrictions or
prohibitions, for example related to health, safety, environment, national security or
intellectual rights. Compliance with these requirements is critical to successful imports.

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 1.2.5.1.2. CUSTOMS CLEARANCE (Article 37 Customs Law – Clause 2 Article 32 Decree
08 – Art 34 Circular 39)
Decision on customs clearance
• If the inspection result is satisfactory → the e-customs system shall automatically check the
fulfillment of tax liabilities → decide to grant customs clearance.
• If the e-customs system fails to perform such check → the declarant shall submit 01
photocopy of every document proving fulfillment of tax liabilities → the Sub-department of
Customs consider granting customs clearance
1.2.5.1.3. CANCELLATION OF CUSTOMS DECLARATION (Art 22 Circular 39)
- Conditions for Cancellation: The customs declaration can be canceled if any of the following
conditions are met:

• The goods have not yet been released from customs control.

• The goods have been released from customs control but have not yet left the customs area.

• The customs authority has not yet made a decision or taken any action based on the customs
declaration.

- Cancellation Request: The declarant (importer or exporter) must submit a written request to
the customs authority to cancel the customs declaration. The request should include the
reasons for cancellation and any supporting documents or evidence.
- Customs Authority's Decision: The customs authority will review the cancellation request
and make a decision based on the provided information. If the request meets the conditions
for cancellation, the customs authority may approve the cancellation.
1.2.5.2. Steps for electronic customs declaration on VNACCS-VCIS

Overview diagram of the declaration and amendment and supplementation process in customs
clearance for imported goods:

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Electronic customs declaration consists follow 5 step:
*Step 1: Export information declaration (EDA)
- Customs declarants declare export information using EDA operations before registering export
declarations. Once all criteria have been declared on the EDA screen (109 criteria), the customs
declarant sends it to the VNACCS system, the system will automatically issue a number and
automatically output criteria related to tax rates, names, etc. corresponding to the entered codes
(for example: the name of the importing country corresponds to the country code, the name of
the exporting unit corresponds to the business code...), automatically calculates criteria related to
value and tax. ... and feedback to the customs declarant at the declaration registration screen -
EDC.
- When the system issues a number, the EDA export information declaration is saved on the
VNACCS system.
*Step 2: Register export declaration (EDC)
- When receiving the declaration registration screen (EDC) responded by the system, the
customs declarant checks the declared information and information automatically exported and
calculated by the system. If the customs declarant confirms that the information is correct, it will
be sent to the system to register the declaration.
- In case after inspection, the customs declarant discovers that the declared information is
incorrect and needs to be amended, he must use the EDB service to call back the export
information declaration screen (EDA) to correct the information. necessary information and
perform the tasks as instructed above.
*Step 3: Check the conditions for registering the declaration
Before allowing declaration registration, the system will automatically check the List of
businesses that are not eligible to register declarations (enterprises with overdue debts of more
than 90 days, enterprises that temporarily suspend operations, dissolve, bankrupt…). If the
enterprise belongs to the above list, it will not be allowed to register the declaration and the
system will respond to the customs declarant.
*Step 4: Streamlining, inspection, and customs clearance
Once the declaration has been registered, the system automatically divides the stream, including
3 streams: green, yellow, and red
*Step 5: Declare amendments and supplements during customs clearance
– The declaration of amendments and supplements in customs clearance is carried out from the
time the declaration is registered until before the goods are cleared. To make additional

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 declarations during customs clearance, customs declarants use the EDD service to recall export
declaration information (EDA) in case the declaration is amended or supplemented for the first
time, or the export declaration information has been amendment (EDA01) in case of declaration
of amendments and supplements from the 2nd time onwards.
– Once the declaration has been completed at operation EDA01, the customs declarant sends it
to the VNACCS system, the system will issue an amended declaration number and respond to
the declaration amendment information at the EDE screen, the customs declarant Press the
"send" button on this screen, then complete the registration of the amended and supplemented
declaration.
– The number of the amended declaration is the last character of the declaration number box.
The maximum number of declarations for amendments and supplements in customs clearance is
9 times corresponding to the last character of the declaration number from 1 to 9; In case no
additional declaration is made during customs clearance, the last character of the declaration
number is 0.
– When the customs declarant declares amendments or supplements to the declaration, the
amended or supplementation declaration can only be classified as yellow or red (not green).
– The criteria on the amendment and supplement declaration screen (EDA01) are the same as
those on the export information declaration screen (EDA). The difference is that some indicators
(will be specifically stated in the EDA01 professional guidance section) cannot be entered at
EDA01 because they have not been modified or are not subject to modification.

CHAPTER 2: CUSTOMS CLEARANCE ANALYSIS OF VIETNAM BLACK TEA EXPORT

SHIPMENTS
2.1. Analyze commercial contracts

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- Based on information on the sale contract:
• Buyer: DAMACUSHERS CO.,LTD company in Syria
• Seller: VIETNAM BLACK TEA CO. LTD in Vietnam
- Both parties signed a contract to export Vietnamese black tea on July 14, 2021. Both parties
agree to all 7 terms written in the contract as follows:

• Item: The seller agrees to sell to the buyer 35,000 kg of Vietnamese black tea,
standard 3983 (Standard 3983 is applied to black tea exported from Vietnam to
countries around the world). The selling price of Vietnamese black tea is 2 USD/kg,
CIF price at Tartous port, Syria. And the total is 70,000 USD
• Term (1) Packing: Black Tea products are required to be packed in small boxes
(cartons) onto larger platforms called pallets for transportation and storage.
• Term (2),(3),(4): The two parties agree to choose the delivery terms as CIF-(CIF
stands for the phrase "Cost, Insurance, and Freight". Delivery terms are CIF, Party
The seller will deliver the goods to the buyer at Tartous port, Syria in August 2021
+ According to CIF delivery terms,
The seller (VIETNAM BLACK TEA CO. LTD) is responsible for clearing customs
at the port of departure, putting the goods on the ship and paying insurance at the
minimum insurance level until the goods are unloaded at the port of destination.
Buyer (DAMACUSHERS CO.,LTD): is responsible for risks at the time the goods
board the ship, paying the value of the goods, handling fees and costs to the
destination port after the goods have been delivered. DAMACUSHERS CO.,LTD is

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 also responsible for import taxes, management fees and other fees related to the
import process of goods.
• Term (5) Payment method: The buyer will pay the seller 30% of the contract value by
international transfer (T/T). The buyer will make a money transfer transaction to the
seller before or after receiving the goods. The money will be transferred from the
buyer's bank to the seller's bank, via wire transfer (Swift/telex) immediately after.
when signing the contract and 70% of the contract value after receiving a copy of the
bill of lading (draft of B/L)
• Term (6) Buyer's bank account information:
+ Bank name: Commercial Bank of Syria Branch International Department
+ Account number: 09-0414884040033157
+ Swift code: ABOCCNBJ090
• Term (7) Necessary documents include:
+ 03 Sale contract
+03 commercial invoice
+ 03 packing list
+ 03 original bills of lading
+ Certificate of orgin
+ Quality and quantity certificate
+ Phytosanitary certificate
+ Health certificate
+ Insurance

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16
17
 - According to the marine cargo insurance contract under CIF terms, the insured party is
DAMASCUSHERS CO. The insured cargo is VIETNAM BLACK TEA STD 3983,
transported from Hai Phong, Vietnam to Tartous, Syria on the vessel MV: BUXLAGOON
V.1129R, under bill of lading number MSCUV6092190.

• Insurance money
The insurance amount is 110% CIF, equivalent to USD 77,000.00. . This means that, if the goods
are lost or damaged, the insured party will be compensated up to a maximum of USD 77,000.00.
The insurance condition of the contract is INSTITUTE CARGO CLAUSE "C" ICC. 1.1.82 OF
LLOYD'S LONDON. This is the most common insurance condition in marine cargo insurance. This
term covers loss or damage to goods occurring during carriage, including loss or damage due to the
actions of the ship operator, shipwreck, stranding, collision, fire or explosion. ,...
• Other provisions
This insurance contract also applies the ISM clause and the ISPS clause. The ISM clause
regulates the ship's safety management system, and the ISPS clause regulates the seaport
security system. These are two mandatory clauses in international maritime cargo
insurance.
• Claim:

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 In the event of loss or damage, the claim must be immediately notified to the insurance
company and have an inspection report appointed by the insurance company. Claim filed
at/in Tartous, Syria. The insurance company is responsible for compensating the
insurance buyer according to the insurance liability level specified in the contract.
2.2. State management policy for exported goods
State management policies for black tea goods exported abroad are stipulated in the following
circulars:
• Circular No. 03/2018/TT-BCT dated February 3, 2018 of the Ministry of Industry and Trade
regulating the management of export and import of goods on the List of goods banned from
business, restricted from business, and subject to conditional business. Packages and goods
are subject to specialized management.
• Circular No. 27/2016/TT-BYT dated December 30, 2016 of the Ministry of Health
regulating food safety management for exported and imported food.
• Circular No. 38/2015/TT-BTC dated March 25, 2015 of the Ministry of Finance regulating
customs procedures for exported and imported goods.
- According to Circular No. 03/2018/TT-BCT, black tea goods are not on the list of goods
banned from business, restricted from business, subject to conditional business, and goods
subject to specialized management.
- According to Circular No. 27/2016/TT-BYT, exported and imported food must meet the
following requirements: produced, processed and preserved in accordance with Vietnamese
law on food safety.
Compliant with regulations on food hygiene and safety of the importing country.
- According to Circular No. 38/2015/TT-BTC, customs procedures for exported and imported
goods include:
• Register Customs declaration.
• Payment of taxes, fees and charges.
• Customs inspection and supervision.
2.3. Determine the HS Code of the Goods
- With this information, the HS code of the Vietnamese black tea shipment is 09023010,
belonging to the subgroup Black tea (fermented) and partially fermented tea, pre-packaged with
a package weight of no more than 3kg (each package weighs only 2kg). <= 3kg): Tea leaves.
- This HS code is determined based on the following factors:

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 • Type of tea: Black tea
• Packaging form: Tea leaves, packed in paper bags, weight of each bag not exceeding 3
kg
• Quality standards: Meets Vietnamese standards TCVN 5609:2007
HS code 09023090 can also be used for this lot, belonging to the subgroup Black tea (fermented)
and partially fermented tea, prepackaged with a package weight not exceeding 3kg: Other.
Therefore, HS code 09023010 is preferred because it is more specific, clearly showing that the
shipment is tea leaves.

2.4. Customs clearance process for exported goods

*Step 1: Check goods and tax policies.
*Step 2: Prepare documents and documents. Documents serving customs declaration and customs
procedures for exporting goods are: foreign trade contract (Sale Contract), packing list (Packing
List), commercial invoice (Commercial Invoice), agreement Booking Note, EIR, and also a number
of other documents for some specific items that require specialized inspection.
*Step 3: Proceed to declare the customs declaration and transmit
*Step 4: Carry out customs procedures to export goods. After the customs declaration is transmitted,
the system will automatically classify the channel. Whether your goods are exported quickly or
slowly depends on the flow of goods (green channel ⇒ yellow channel ⇒ red channel).

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*Step 5: Customs clearance and liquidation of customs declaration
2.5. Determination of customs value
Customs value is determined based on Circular No. 39/2018/TT-BTC of the Ministry of Finance
regulations on customs value for exported and imported goods.This contract is determined by
customs value according to the transaction value method. Set documents are not accompanied by
supporting documents for plus and minus adjustments.Adjusted and deducted, so the customs value
is equal to the actual price at the export border gate that has been (or will be) paid, which is 70,000
USD

• Customs value = actual price paid (or to be) paid + additional adjustments- deductions
= 70,000 x 23,400 = 1,696,100,000 (đồng). (According to Customs exchange
rate on December 8, 2023, 1USD= 23,400 VND)

Determine the amount of tax payable

• Because Vietnam encourages exports, the export tax for black tea is 0. And the value added
tax (VAT) is also 0%.
• Export tax equal to 0% = customs value x export tax rate =1,696,100,000 x 0% =0

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 • Value added tax is 0%
2.6. VNACCS - VCIS customs declaration steps
Currently, there are two software used by import-export businesses for customs clearance.Electronic
management is Thai Son's ECUS5-VNACCS software and FPT.VNACCS software278 of FPS FPT.
In this business, businesses will use ECUS software customs declaration.
*Step 1: Start the ECUS5-VNACCS software and set up business information
As soon as you start the software, the ECUS Login panel appears on the screen asking for
registration login, since it is the first login,will use the default account with Username
“Root” and leave the Access Code blank, no need to set up anything else for this first login. The first
time you run the program, the program will ask for business information, enter all information.

Figure 1 ECUS Login

• Export Code:0314913321 (The tax code of the exporting company)

• Business Name: CÔNG TY TNHH TRÀ ĐEN VIỆT NAM
• Address: 141 Đinh Tiên Hoàng, Phường Đa Kao, Quận 1, Thành phố Hồ Chí Minh, Việt Nam
• Phone Number: 02838654783
• After filling in the information, click 'Agree' to proceed.
*Step 2: Declare Export Information (EDA)
Click on 'Declaration of Import and Export' on the menu bar, then select 'Register a new export
declaration' and provide relevant information about the batch of goods

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 Figure 2 Business information registration window

1) Fill in information in the "General information" tab (only fill in boxes marked with * to be required
forced, the remaining cells will be automatically returned by the system)

2) Information to fill in in the "Type group" section:

• Type group: Business, investment
• Type code: enter “B11”, automatically display the corresponding box “Export business”

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• Customs agency: select “HAI PHONG PORT REGION III (03TG)”
• Classify individuals/organizations: select “4. Goods from organization to organization”
• Code of declaration processing department: select “02. Export goods procedure team
• Shipping method code: select “3. By sea (with containers)”
- Fill in the information in the "Import and export unit" section as follows:
• Exporter: automatically filled in by the system based on declared information
• Import consignor: leave blank
• Importer:SHARKASSIYEH, IBN, AL HAITHAM STREET, RUMANEH, DAMASCUS, SYRIA
3) “Bill of lading” information of customs declaration:

4) “Invoice” information of the shipment:

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 • Classification of invoice form: A- Commercial invoice
• Total invoice value: 70,000.00
• CIF invoice price conditions
• Invoice currency code: USD
5) Taxes and guarantees:

Information about tax guarantees and tax payment methods of customs declarants, depending
on each specific case, the declarant will enter information for this section.
The declarant needs to determine the tax payment type code. If there is a tax guarantee
document, select the type of guarantee (there are 2 forms of guarantee: "general guarantee"
and "separate guarantee for each declaration") and Enter full guarantee registration
information including: Guarantee bank code, year of registration, Document symbol and
document number.
In case the business does not have a tax guarantee and must pay taxes immediately, choose
the code D - Pay taxes immediately. At the same time, when declaring amendments and
supplements, the declarant also selects code 'D' to be granted customs clearance after
performing the temporary release process.
*Step 3: Fill information for Tab “Information Container”

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 • Number container: INKU6515772/9436022 và TGHU7502610/9436021
• Seal: 9436022 và 9436021
• Type of container: TEU 40'
*Step 4:Fill information for tab “List of goods”

• Name of product: VIETNAM BLACK TEA STD 3983

• HS code: 09023010
• Origin: VIETNAM
*Step 5: Transmit the export customs declaration
After checking the accuracy of the information on the electronic declaration, proceed with advance
declaration information (EDA), by logging in to the company's digital signature and receiving the
declaration number and declaration information. .After successfully registering the pre-declaration
declaration information and checking the correct information returned by the system. The declarant
officially registers the declaration with the Customs agency, selecting the operation code "3. Official
declaration (EDC)".

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*Step 6: Receive the results of channeling, print out the export customs declaration.
When the declaration is successful, the declaration will be included in customs clearance
procedures. Businesses continue to click "4. Get results of channeling and customs clearance" This
function is similar to "Get feedback from HQ to receive results of channeling, customs fees, tax
notices and customs clearance acceptance of declarations.

CHAPTER 3:COMMON RISKS AND RECOMMENDATIONS

3.1. Risks encountered
• Security risks: Electronic customs declaration requires accessing the system and sending
information online. If the system is not well secured, important information can be stolen or
accessed illegally. This can cause loss of important data or misuse of information to commit
fraud or attacks
• The ECUS declaration system is quite complicated and often has errors. The electronic
customs declaration system may encounter technical errors or technical problems. This can
interrupt the declaration process and cause delays in customs clearance of goods. Without a
backup plan or technical support, businesses may have difficulty handling this problem.
• Errors in declaring information: Incorrectly entering or omitting important information
during the customs clearance process can lead to delays or delays in customs clearance
procedures. This can cost your business time and money.
• Submitting incomplete or inaccurate documents: If company do not submit complete or
inaccurate documents, vouchers and related information, there may be a situation where
customs clearance is denied or there is a delay in customs clearance. customs clearance. This
may affect your export schedule.

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 • Complicated customs procedures: Importing this item requires compliance with many
regulations documents and import taxes, making the import process complicated and
expensive a lot of time
• Slow inspection and customs clearance: Goods inspection and customs clearance procedures
are often very slow, resulting in the product not being shipped on time. This’s possible
causing risks for importers, such as delayed delivery or having to pay fee.
3.2. Recommendation
• Ensure information security: Ensure that the electronic customs declaration system is well
secured. Use security measures such as data encryption, two-factor authentication, and
access controls to ensure information is not stolen or accessed illegally.
• Employee training : Ensure that employees have sufficient knowledge and skills to perform
electronic customs declaration accurately and effectively. Provide ongoing training on the
latest electronic customs declaration processes and systems to ensure regulatory
understanding and compliance
• Develop a backup plan: Prepare a backup plan to deal with technical or system problems.
This includes maintaining backup copies of important data, establishing emergency
procedures, and having a data recovery plan when necessary.
• Data quality control: Ensure that data entered into the electronic customs declaration system
is accurate and complete. Establish data testing and verification processes to ensure accuracy
and avoid errors.
• Prepare all necessary documents as required
• Monitor and update: Monitor changes in customs regulations and update the electronic
customs declaration system in accordance with the latest regulations. This ensures that your
business complies with regulations and avoids fines or delays in clearing goods.

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 CONCLUSION
In conclusion, goods customs clearance plays a vital role in facilitating international trade and
ensuring compliance with regulations. Businesses engaging in import and export activities need
to understand and comply with customs procedures to ensure smooth and timely clearance of
their goods. This report has explored the key aspects of goods customs clearance for business
contracts, including the relevant regulations, procedures, documentation, and potential
challenges.
By understanding these elements, businesses can effectively manage their customs clearance
process, minimize delays and costs, and ensure the successful completion of their business
contracts. Additionally, utilizing technological advancements and collaborating with customs
authorities can further streamline the process and enhance trade efficiency.
However, it is important to note that customs regulations and procedures can be complex and
continuously evolving. Businesses should remain informed of the latest updates and maintain
strong relationships with customs authorities to ensure compliance and navigate any challenges
effectively.
Ultimately, the successful conclusion of goods customs clearance is crucial for fulfilling
business contracts and promoting international trade. By focusing on compliance, efficiency, and
collaboration, businesses can contribute to a smooth and thriving global marketplace.

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 REFERENCES

https://vntr.moit.gov.vn/vi/hscode-la-gi

https://xuatnhapkhauleanh.edu.vn/cach-tinh-thue-xuat-nhap-khau.html

https://vinalinklogistics.com/ban-tin/quy-trinh-khai-bao-hai-quan-dien-tu-hang-nhap-vnaccs-
1704.html

https://vntr.moit.gov.vn/vi/search?t=good&v=09023010%20-%20-
%20L%C3%A1%20ch%C3%A8&id=09023010

https://xuatnhapkhauleanh.edu.vn/quy-trinh-thong-quan-hang-hoa-xuat-nhap-khau.html

https://vinalinklogistics.com/ban-tin/quy-trinh-khai-bao-hai-quan-dien-tu-hang-xuat-vnaccs-
1705.html

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