What are the cases of shutdown of customs brokerage agents in Vietnam? Who has the power to terminate the operation?
Who has the power to terminate the operation of customs brokerage agents in Vietnam?
Pursuant to Section 2 of Official Dispatch No. 19046/BTC-TCHQ in 2014 guiding as follows:
2. Customs brokerage agents
2.1. Requirements for customs brokerage agent employees are specified in Clause 2 Article 20 of the Law on Customs.
2.2. The Director General of the General Department of Vietnam Customs has the power to decide recognition, suspension or termination of customs broking; grant of certificates of training in customs declaration; grant and revocation of customs brokerage agent employee’s codes.
2.3. Recognized customs brokerage agents and customs brokerage agent employees granted certificates of training in customs declaration may continue working. Customs brokerage agents shall exercise their rights and fulfill their duties according to regulations of Clause 3 Article 18 of the 2014 Law on Customs.
Thus, the Director General of the General Department of Vietnam Customs has the power to decide termination of customs broking.
What are the cases of shutdown of customs brokerage agents in Vietnam? Who has the power to terminate the operation?
What are the cases of shutdown of customs brokerage agents in Vietnam?
Pursuant to Clause 2, Article 7 of Circular No. 12/2015/TT-BTC as amended by Clause 5, Article 1 of Circular No. 22/2019/TT-BTC, as follows:
Suspension and shutdown of customs brokerage agents
…
2. Shutdown
a) The operation of a customs brokerage agent shall be shut down in any of the following cases:
a.1) The customs brokerage agent’s smuggling; illicit cross border transport of goods and money; production and trading of banned commodities; and tax evasion is so serious that it is liable to criminal prosecution;
a.2) The customs brokerage agent submits fraudulent application for recognition of customs brokerage agent or application for customs broker number to the customs authority;
a.3) Use the documents not provided by the goods owner to carry out customs procedures for exported/imported goods;
a.4) Over 06 months from the date of suspension as prescribed in Subpoint a.1, Subpoint a.2 and Subpoint a.3 Point a Clause 1 of this Article, if the customs brokerage agent fails to correct objectionable conditions and fail to submit any application for resumption of operation to the General Department of Customs;
a.5) Over 06 months from the date of suspension as for the case prescribed in Subpoint a.4, Point a, Clause 1 of this Article but customs brokerage agent has not submitted any application for resumption of operation;
a.6) The customs brokerage agent dissolves or goes bankrupt as prescribed in Law on Enterprises and the Law on Bankruptcy;
a.7) The customs brokerage agent submits an application for shutdown;
b) Regarding the cases prescribed in Subpoints a.1, a.2, a.3, a.4, a.5 and a.6 Point a of this Clause;
b.1) Regarding the cases prescribed in Subpoints a.1, a.2, a.3 and a.6 Point a of this Clause, where the customs authority, during management or inspection process, detects a violation, it shall report to the General Department of Customs to issue a decision on shutdown of customs brokerage agent using form No. 06 issued herewith. The General Department of Customs shall issue the decision on shutdown of customs brokerage agent within the time limit prescribed in Point b Clause 1 of this Article.
Regarding the cases prescribed in Subpoints a.1, a.2, a.4 and a.5 Point a of this Clause, where the Director of the General Department of Customs detects a violation, he/she shall issue a decision on shutdown of customs brokerage agent using form No. 06 issued herewith.
b.2) The customs brokerage agent being shut down as prescribed in this Point shall not be recognized as a customs brokerage agent within 2 years from the date on which the decision on shutdown is issued, except for the case prescribed in Subpoint a.5 Point a of this Clause.
c) Any customs brokerage agent wishing to ceases its operation shall send an application dispatch to the General Department of Customs using form No. 12 issued herewith. Within 5 working days from the receipt of the above application of the customs brokerage agent, the Director of General Department of Customs shall issue a decision on shutdown to such customs brokerage agent.
d) If the operation of a customs brokerage agent is shut down, the customs broker number shall be revoked and cease to be valid.
Thus, the customs brokerage agent will shut down its operation in one of the above cases.
What are the requirements for customs brokerage agents in Vietnam?
Pursuant to Article 20 of the 2014 Law on Customs in Vietnam stipulating as follows:
Customs brokerage agents
1. Requirements for a customs brokerage agent:
a/ There is a business registration certificate or an enterprise registration certificate, in which operation of good forwarding or customs brokerage agents is stated;
b/ There are employees in charge of customs brokerage services (hereinafter referred to as customs employees);
c/ There is information technology infrastructure satisfying the requirements for making e-customs declaration and other requirements as prescribed.
2. A customs employee must be a Vietnamese citizen who fully satisfies the following requirements:
a/ Obtain at least a collegiate degree in economics, law or technique;
b/ Obtain a certificate of training in customs declaration;
c/ Obtain customs employee’s code granted by a customs office.
3. The General Director of Customs shall decide the recognition, suspension or termination of customs broking; grant of certificates of training in customs declaration; grant and revocation of customs employee’s codes.
4. Customs brokers and customs employees shall exercise the rights and perform the obligations of customs declarants as prescribed in Article 18 of this Law.
5. The Minister of Finance shall provide guidance on procedures for recognition and operation of customs brokers; procedures for grant of certificates of training in customs declaration, and grant and revocation of customs employee’s codes.
Thus, the following requirements must be met to be allowed to act as a customs brokerage agent:
- There is a business registration certificate or an enterprise registration certificate, in which operation of good forwarding or customs brokerage agents is stated;
- There are employees in charge of customs brokerage services (hereinafter referred to as customs employees);
- There is information technology infrastructure satisfying the requirements for making e-customs declaration and other requirements as prescribed.
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