06 eligibility requirements for authorisations when carrying out the ACTS procedure

According to Article 32 of Decree No. 46/2020/NĐ-CP of Vietnam’s Government, to be eligible for authorisations when carrying out the ACTS procedure, the following requirements must be fulfilled:

1. Headquarters of the transit trader:

The transit trader must be a Vietnamese enterprise with a registered office in Vietnam or a foreign transit trader’s branch or representative office established in Vietnam according to the establishment license granted by a competent authority of Vietnam.

2. The extent of use of the ACTS procedure:

The transit trader must ensure that the number of customs transit declarations completed through the ACTS must be at least 60% of total customs declarations for goods in transit through the Contracting Parties within a period of 01 year by the date the transit trader submits an application for authorized transit trader status.

3. Compliance with the Law on auditing:

The annual financial statements of the transit trader must be audited by an audit firm qualified to render auditing services in accordance with regulations on independent auditing. The auditor’s opinions about the financial statements indicated in the auditor’s report must be unqualified opinions according to auditing standards of Vietnam.

4. Retention of customs dossiers, accounting vouchers and records, and other documents relating to transit operations:

Customs dossiers, accounting vouchers and records, and other documents relating to transit operations must be kept by the transit trader in accordance with regulations of the Law on customs.

5. Compliance with the laws on customs and taxation:

- The transit trader does not have any overdue taxes, late payment penalties and interests by the date of application for authorized transit trader status.

- In the past 05 consecutive years by the date of application for authorized transit trader status, the transit trader has not committed any violations against the Law on taxation or customs which involve tax evasion, tax fraud, smuggling or illegal transport of goods across the border, and has not committed any administrative violations against the law on customs for which the penalty and fine exceed the power of the Director of the Customs Sub-department and holders of equivalent titles.

6. Special seal: The transit trader must have a special seal approved by the customs authority.

Note: To be eligible for authorisations when carrying out the ACTS procedure, the transit trader shall submit an application for authorized transit trader status as prescribed in Article 34 hereof directly or by post to the General Department of Customs.

View details at Decree No. 46/2020/NĐ-CP of Vietnam’s Government, effective from June 01, 2020.

Le Hai

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