THE MOST DETAILED CUSTOMS CLEARANCE CLASSIFICATION REGULATIONS

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

Understanding Customs Clearance Classification

Customs clearance classification regulations involve the sorting and processing of imported or exported shipments at border gates. This process includes determining the type of goods, customs codes, and calculating relevant taxes and fees. The goal of classification is to help customs manage, monitor, and control goods entering and leaving Vietnam’s territory more effectively.

Currently, customs declarations are divided into three main channels: the green, yellow, and red channels.

The Importance of Customs Clearance Classification

Customs clearance classification is essential to ensuring efficiency, accuracy, and speed in import-export processes. The three channels (green, yellow, and red) can be likened to traffic lights, with each color corresponding to different levels of inspection, from minimal to strict.

Goods classified under the green channel are prioritized for quick clearance without detailed inspection, saving time and costs. In contrast, goods under the red channel require full or partial inspection of both the goods and documents, ensuring stricter control. This helps minimize risks of smuggling and commercial fraud while giving priority to businesses that comply with customs regulations.

Customs Declaration Channel Regulations

Green Channel: Applies to businesses with good records, exempting them from physical inspection. Goods are cleared immediately after completing the electronic declaration, saving storage time and costs.
Yellow Channel: In the yellow channel, customs will inspect documents but waive the need for physical inspection. Goods such as machinery, project equipment, or items from free trade zones often fall into this group.
Red Channel: For goods classified under the red channel, customs will inspect both documents and the actual goods. There are three levels of inspection, from a full inspection to a random sample check (5%-10%).

Businesses classified in the yellow or red channel may experience longer clearance times and higher costs. If violations are found during inspection, they may face administrative penalties, confiscation of goods, or restrictions on future clearances.

We hope the above information provides businesses with a clearer understanding of the customs clearance classification process and helps them prepare effectively to minimize risks and optimize import-export procedures. With over 14 years of experience in logistics, Smart Link is proud to accompany you on every step of the journey.

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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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