What is the ACTS System in customs operations in Vietnam?

What is the ACTS System in customs operations in Vietnam?

Based on Clause 1, Article 3 of Decree 46/2020/ND-CP, it is regulated as follows:

Definitions

In this Decree, the following terms are understood as follows:

1. The ACTS system is an integrated information technology system established and interconnected by ASEAN member countries to exchange information with each other for the implementation of electronic transit procedures, control the transit of goods across the territories of ASEAN member countries, assist ASEAN member customs authorities to calculate customs taxes, guarantees, and exchange information on tax debt recovery based on the Protocol 7 on the customs transit system (hereinafter referred to as Protocol 7).

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Thus, according to the regulation, ACTS can be understood as the abbreviation for ASEAN Customs Transit System, which means in Vietnamese the ASEAN Customs Transit System. This is an integrated information technology system built by ASEAN member countries and connected with each other.

What is the ACTS System in customs operations in Vietnam? (Image from the Internet)

Shall the ACTS be employed when determining the required guarantee amount in Vietnam?

Based on Clause 3, Article 24 of Decree 46/2020/ND-CP, it is regulated as follows:

Transit Guarantee

1. Before registering a customs transit declaration for goods originating from Vietnam, the customs declarant chooses either a single journey guarantee or a multiple journey guarantee and submits a guarantee letter from a credit institution or a foreign bank branch to the customs authority where the declaration is registered for updating through the ACTS System. The guarantee is valid for the countries participating in the transit journey.

In cases where the customs declarant is recognized as a prioritized transit enterprise, the implementation follows the regulations in Article 26 of this Decree.

2. Calculation of the guarantee amount:

a) The guarantee amount for a transit customs declaration is 110% of the highest possible customs tax amount among the countries participating in the transit journey. The ACTS System is employed when determining the guarantee amount for each transit customs declaration;

b) The multiple journey guarantee amount is determined based on a reference amount. The reference amount corresponds to the possible customs tax amount for the transit shipments carried out through the ACTS System over a period of at least 7 days.

The multiple journey guarantee is deducted and restored corresponding to the guaranteed tax amounts for completed transit journeys without irregularities or corresponding to the customs tax amounts that the customs declarant or guarantor has paid when irregularities occur;

c) The import tax rate and other taxes are calculated at the highest rate according to the tax law of the country related to the transit goods journey. The import tax rate in Vietnam is calculated according to the Most Favored Nation (MFN) Tax Schedule;

d) The calculation of import tax and other taxes (if any) in Vietnam is implemented according to the tax law.

3. Guarantee currency and tax payment currency:

a) Guarantee currency: In case goods originating from Vietnam transit through ASEAN member countries, the currency indicated in the guarantee letter is Vietnamese Dong. Other cases follow the regulations of the country of departure.

b) Tax payment currency: The currency for paying the customs tax incurring to the customs authority of Vietnam is Vietnamese Dong, except in cases where it is allowed to declare and pay taxes in freely convertible foreign currencies according to the regulations of the Tax Management Law. The tax calculation exchange rate follows the customs law.

Thus, according to the above regulation, the ACTS System is employed when determining the guarantee amount for each customs transit declaration.

Which entity is responsible for the customs duty incurring during the transit of goods in Vietnam?

According to Clause 3, Article 30 of Decree 46/2020/ND-CP, those responsible for the customs tax amount incurring include:

- The customs declarant is primarily responsible for the customs tax amount incurring during the transit of goods;

- The guarantor is responsible for paying all or part of the customs tax amount incurring during the transit of goods if the customs declarant does not fulfill or inadequately fulfills the obligation to pay the customs tax;

- Individuals moving goods illegally or involving in illicit movement from the transit procedure through the ACTS System are responsible for paying customs tax debt corresponding to the illegally moved goods volume. The payment of customs tax follows the regulations in Clause 8, Article 24 of Decree 46/2020/ND-CP.

The owner or holder of goods moved illegally from the transit procedure through the ACTS System is responsible for paying customs tax debt corresponding to the goods volume owned or held due to illegal movement. The payment of customs tax follows the regulations in Clause 8, Article 24 of Decree 46/2020/ND-CP.

Thus, the primary responsibility for the customs tax amount incurring during the transit of goods lies with the customs declarant.