CUSTOMS CLEARANCE CLASSIFICATION REGULATIONS

Customs clearance classification plays a crucial role in the import-export process, directly impacting the speed of goods circulation. So, what are the customs clearance classification regulations, and what should businesses keep in mind to ensure smooth clearance? Let’s explore the details with Smart Link below!

Definition of Customs Clearance Classification

Customs clearance classification refers to the process of categorizing and handling imported or exported shipments at border checkpoints. This process includes determining the type of goods, customs codes, tax calculations, and other related fees. The goal of classification is to enable customs authorities to effectively manage, supervise, and control the movement of goods into and out of Vietnam.

Currently, customs declarations are classified into three main channels: Green Channel, Yellow Channel, and Red Channel.

Significance of Customs Clearance Classification

Customs clearance classification plays a vital role in ensuring efficiency, accuracy, and speed in import-export operations. The three classification channels (Green, Yellow, Red) can be compared to traffic lights, with each color representing a different level of inspection, from minimal to strict control.

• Green Channel: Goods are cleared quickly without detailed inspection, saving time and costs.
• Yellow Channel: Documentation is reviewed, but physical inspection of goods is waived.
• Red Channel: Requires both document verification and physical inspection, either fully or partially, ensuring tighter control.

This classification system helps minimize smuggling and trade fraud risks while prioritizing businesses that comply with customs regulations.

Customs Declaration Classification Regulations

1. Green Channel

• Applied to businesses with a strong compliance record.
• No physical inspection required.
• Goods are cleared immediately after completing the electronic declaration, reducing storage and warehouse costs.

2. Yellow Channel

• Customs officers review documents but do not inspect the goods physically.
• Common for machinery, investment project equipment, and goods from free trade zones.

3. Red Channel

• Both documentation and physical goods inspection are required.
• Three levels of physical inspection:
  • Full inspection of the shipment.
  • Partial inspection of a certain percentage (5%-10%).
  • Random inspection of select items within the shipment.

Being assigned to the Yellow or Red Channel can impact clearance time and increase costs. If violations are found, businesses may face administrative penalties, goods confiscation, or restricted clearance privileges in future shipments.

Conclusion

Understanding customs clearance classification regulations helps businesses better prepare, minimize risks, and optimize the import-export process. By ensuring compliance with customs regulations, businesses can facilitate smoother and more efficient international trade operations.

If you need legal support or assistance with customs procedures in import-export activities, please contact Smart Link Logistics for fast and efficient consultation. With over 14 years of experience in the transportation field, we are proud to accompany you throughout your journey.