HOW DOES THE RED CHANNEL INSPECTION WORK?

Having a customs declaration assigned to the red channel is an undesirable situation for import-export staff due to the complex red channel inspection process, which affects the clearance time of goods. So, what causes a customs declaration to be assigned to the red channel? How does the red channel inspection process work? Let’s explore this with SmartLink in the article below!

Reasons for a Red Channel Assignment

Currently, Vietnam Customs classifies goods into three channels:

Green Channel: Exempt from detailed documents and physical inspection of goods.
Yellow Channel: Detailed document inspection but exempt from physical inspection of goods.
Red Channel: Both detailed document inspection and physical inspection of goods.

No company or customs declarant wants their goods assigned to the red channel. Here are some common reasons:

Customs Declaration Errors:

The declarant provides incorrect information compared to the documents and invoices.
Frequent additions, modifications, or cancellations of declarations by the company.
Failure to fully comply with customs regulations and submit documents on time.

Violations by the Company:

Tax arrears, enforcement, or tax determination.
Fraud or indications of tax evasion.
Smuggling or illegal cross-border transportation of goods.
Swapping inspected goods with uninspected goods.
Forging or breaking customs seals without permission.
Failure to comply or cooperate with customs to resolve issues.

Common Types of Inspections

Currently, there are two main types of inspections: manual inspection and X-ray inspection, each with different red channel inspection processes:

Manual Inspection:

Customs requires the company to bring the container to a designated yard and sends personnel to inspect the goods on-site.
Depending on the goods, customs may inspect part or the entire shipment.
For sensitive goods, customs inspects 100% of the shipment.

X-ray Inspection:

Goods are brought to the X-ray station for inspection through automated software.
No need to break the seal, based on the X-ray results, customs decides on clearance.
If abnormalities are detected, it switches to manual inspection, causing time and cost increases.

Red Channel Inspection Process

Checking the name of the goods against the declared documents.
Verifying the HS Code of the goods.
Checking the actual quantity against the declaration.
Assessing the quality of goods by taking samples or referring to product documents.
Verifying the import/export license of the shipment.
Checking the origin of the goods.
Verifying the customs tariff rate.
For temporary import for re-export or temporary export for re-import, providing information on quantity, type, origin of goods, and taking photos of the intact shipment.

Some Notes for Inspection

To ensure the red channel inspection process is smooth and quick, companies should:

Have the goods ready, send staff to the port early, and locate the container before customs arrives.
Be well-informed about the goods to accurately explain to customs authorities.
Ensure goods have full labels and markings to avoid fines or re-export requirements.
Prepare tools like seals and tape to repack and seal the container after inspection.

We hope that the information on the red channel inspection process will be helpful for companies during the import process. SmartLink, a reputable import-export logistics partner with 13 years of experience, always accompanies you.

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If you require assistance with international import and export of goods, please contact our team at Smartlink Logistics. We are available to provide you with professional guidance on our services and the necessary customs procedures.

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