Quote
Factory Buyer Rate Questions

Blog

Understanding Vietnam's Export Customs Clearance Process

07 Oct 2024

By Eric Huang    Photo:CANVA

 

Every country has its own specific customs regulations and procedures. While the fundamental principles are quite similar, there are always regional differences that need special attention. Located in the Indochina Peninsula and acting as a driving force for regional economic growth, Vietnam's export volume has steadily increased over the years, gaining more recognition in the global trade market. For businesses aiming to engage in export trade with Vietnam, understanding the country’s customs clearance regulations and procedures is crucial. Mastering the nuances of Vietnam’s export customs process can lead to a smooth trading experience, while missteps could cost a company dearly. Here are some key insights into Vietnam's customs clearance process:

 

When you plan to export goods from Vietnam, the first step is to prepare all the necessary documents, which include the declaration form, packing list, invoice, certificate of origin, and bill of lading. If the goods are classified as special items (such as hazardous materials or food products), additional documents will be required, such as a Material Safety Data Sheet (MSDS), United Nations Dangerous Goods (UN) number, or a U.S. FDA certificate. Once all documents are ready, the customs clearance process can begin.

 

The Vietnamese government is currently promoting an electronic customs declaration policy. All customs procedures must be submitted online, and every exporting company is equipped with a unique i-Key, which is essential for filing the declaration. The exporter or their agent uses this i-Key to submit all the necessary documents through the VNACCS (Vietnam Automated Cargo and Port Consolidated System) for review by the customs office at the export location. Once the VNACCS system receives the declaration data, a local customs officer is automatically assigned to review the case. This officer will determine the treatment of the export declaration based on the exporter’s past records and the nature of the goods.

 

Vietnam's customs declarations are categorized into three levels: green lane, yellow lane, and red lane. If the customs officer assigns a green lane to the declaration, they will approve it after verifying that all documents are accurate. The system will then release the goods once the exporter has paid the necessary fees (such as business tax, value-added tax, and declaration fees). Green lane declarations are usually processed on the same day of submission. According to Vietnam's customs standards, exporters with a clean record and no recent issues with declarations are more likely to receive green lane treatment. However, it’s important to note that the final decision is at the discretion of the customs officer.

 

If a declaration is assigned yellow lane status, the officer will need one to two working days to review all the documents before deciding whether to approve the clearance or upgrade it to red lane status. If the yellow lane declaration is approved, the goods will be released after the exporter completes all fee payments. Yellow lane declarations typically take about three working days to clear, though in some cases, an expedited processing fee may allow for clearance within one business day.

 

If a declaration is given red lane status, it indicates a stricter process. The officer will conduct a thorough review of all documents and require a physical inspection of the goods. After assigning a red lane, the officer will notify the exporter of the scheduled inspection date. The inspection will take place at a designated container inspection site rather than at the exporter’s factory. The officer will inspect the contents based on the documents provided, including weight, size, model, and any potential pest contamination. If the inspection is passed, the exporter can proceed with fee payment and obtain clearance. If the inspection fails, customs will issue a decline notice, requiring the exporter to return the goods to the factory for adjustments and then restart the customs process —this time, with another red lane. Even in cases where the red lane inspection is successful, it usually takes four to five working days to obtain clearance, although paying an expedited fee may reduce this to two working days.

 

In Vietnam, regardless of the customs clearance status (green, yellow, or red lane), goods can only enter the port once the declaration is cleared. Therefore, it is essential to allow ample time for the customs declaration process to avoid missing gate in deadlines. Additionally, even if your declaration receives green lane treatment, there’s no absolute guarantee of smooth sailing. Since Vietnam operates under a more human-driven system, customs officers may still find various reasons to hold your shipment before on board. Working with an experienced custom broker can help ensure a more secure and efficient customs process.

 

 

Appreciate if you could share TGL Blog among your friends who are interested in first-hand market information of supply chain and updated economic incidents.

Get a Quote Go Top