DECISION

PILOT PROCEDURES REGARDING MANAGEMENT AND USE OF ELECTRONIC NAVIGATIONAL SEALS IN SUPERVISION OF GOODS SUBJECT TO CUSTOMS SUPERVISION AND TRANSPORTED BY CONTAINERS

 DIRECTOR GENERAL OF GENERAL DEPARTMENT OF CUSTOMS

Pursuant to Law on Customs No. 54/2014/QH13 dated June 23, 2014;

Pursuant to Decree No. 08/2015/ND-CP dated January 21, 2015 of Government on elaborating to Law on Customs and Customs Procedures, Customs Examination, Supervision and Control;

Pursuant to Decree No. 59/2018/ND-CP dated April 20, 2010 on amendments to Decree No. 08/2015/ND-CP dated January 21, 2015 of Government on elaborating to Law on Customs and Customs Procedures, Customs Examination, Supervision and Control;

Pursuant to Decision No. 65/2015/QD-TTg dated December 17, 2015 of Prime Minister on functions, tasks, powers, and organizational structure of General Department of Customs affiliated to Ministry of Finance;

Pursuant to Circular No. 38/2015/TT-BTC dated March 25, 2015 of Ministry of Finance on customs procedures; customs examination and supervision; import, export tariffs and tax administration for import and export goods;

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At request of Director General of Customs Supervision and Management Department,

HEREBY DECIDES:

Article 1. Attached to this Decision are pilot procedures regarding management and use of electronic navigational seals for goods subject to customs supervision and transported by containers.

Article 2. This Decision comes into effect from the day of signing. Pilot implementation shall last until September 30, 2020 inclusively.

Article 3. Directors of Customs Departments of provinces and cities and heads of entities affiliated to General Department of Customs are responsible for implementation of this Decision. Difficulties that arise during the pilot implementation should be reported immediately to enable General Department of Customs to consider and adjust accordingly./.

PP. DIRECTOR GENERAL
DEPUTY DIRECTOR GENERAL




Mai Xuan Thanh

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MANAGEMENT AND USE OF ELECTRONIC NAVIGATIONAL SEALS IN SUPERVISION OF GOODS SUBJECT TO CUSTOMS SUPERVISION AND TRANSPORTED BY CONTAINERS
(Attached to Decision No. 138/QD-TCHQ dated January 21, 2020 of Director General of General Department of Customs)

Part I.

GENERAL PROVISIONS

Article 1. Regulated entities

1. These procedures provide guidelines for managing and using electronic navigational seals to supervise goods transported by containers and subject to customs supervision as specified under Circular No. 38/2015/TT-BTC dated March 25, 2015 and amendments thereto under Circular No. 39/2018/TT-BTC dated April 20, 2018 of Minister of Finance.

2. Goods that are transported by containers, subject to customs supervision and equipped with electronic navigational seas for customs sealing shall be supervised according to these procedures.

Article 2. Regulated entities

1. Customs officials;

2. Customs declarants in case of import and export goods that are brought into, stored in and brought out of customs controlled areas.

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Managing system of customs electronic navigational seals shall be online data connection system whose server is located in data center which is under management of Information Technology and Customs Statistics Department and shall be operating around the clock;

Supervisory center of electronic navigational seals in General Department of Customs shall be located in Online Customs Supervision Department which is under management of Anti-smuggling Investigating Authority and shall be operating around the clock;

Supervisory centers of electronic navigational seals in Customs Departments shall be located in Customs Supervision and Management Departments/Professional Affair Departments/Customs Control Teams/Online Customs Supervision Departments (decided by Directors of Customs Departments of provinces and cities) and shall be operating around the clock;

Supervisory stations of electronic navigational seals shall be located in Customs Sub-departments to supervise and shall be operating around the clock to ensure online supervision of movement of containers/transports equipped with electronic navigational seals.

Supervision data stored on the managing system of electronic navigational seals shall serve as the basis for handling related cases. Can be backed up in case of violations or when storage system is full as per the law.

Article 4. Choosing subjects of electronic navigational seals

1. Directors of Customs Departments of provinces and cities, Director of Anti-smuggling Investigating Authority, Director of Customs Supervision Department and Director of Risk Management Authority shall decide on choosing subjects of customs supervision via electronic navigational seals as specified under Article 27 of Circular No. 81/2019/TT-BTC dated November 15, 2019 of Minister of Finance based on gathered information and risk classification criteria of General Department of Customs at the time of issuing decision.

2. Choosing subjects for electronic navigational seals must be based on list of containers that require customs sealing, list of declaration of transportation from professional customs system (E-Customs) transferred to electronic navigational seal system.

3. Assign Managers of Customs Sub-departments where goods are being shipped off to decide on installation of electronic navigational seals, management and monitor of containers/transports installed with electronic navigational seals as specified under Article 8 of these procedures. List of vehicles equipped with electronic navigational seals shall be transferred to supervision team to implement and inform customs declarants.

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Article 5. Method of installing electronic navigational seals

1. Assigned officials shall install electronic navigational seals on the upper right door handles of containers subject to customs supervision when transporting by railway or road.

2. In case of transportation via waterways and containers that are stacked storeys high in a tight manner that makes installation of electronic navigational seals impossible, assigned officials shall install the electronic navigational seals on the transports to supervise route, duration of transport and issue warnings during the period in which containers/transports move from one Customs Sub-department to another.

Article 6. Levels of warning

1. High risk warning (red warning on the system) includes:

a) Warnings about illegal interference and influence on electronic navigational seals (illegally breaking locks, cutting wires, removing seals, etc.);

b) Warning about containers installed with electronic navigational seals having had travel time exceeding the period originally registered with customs authorities.

Warnings in this level require officials who are assigned to supervise shipments in Customs Sub-departments where goods are shipped off to investigate the causes, search and intercept the violations (if any) as per the law. In case of signs of violations, inform Customs Sub-departments where goods are shipped to to perform physical inspection.

2. Moderate risk warning (orange warning on the system) includes:

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b) Warning about loss of connection with the electronic navigational seals;

c) Warning about battery capacity of electronic navigational seals.

Warnings in this level require officials who are assigned to supervise shipments in Customs Sub-departments where goods are shipped off to monitor, assess and identify causes of the warnings via operators of the transports. In case signs of violations are revealed via assessment, inform Customs Sub-departments where goods are shipped to to perform physical inspection.

3. Low risk warning (green warning on the system) includes:

Warning about irregular stop/parking of the transports;

Warnings in this level require officials who are assigned to supervise shipments in Customs Sub-departments where goods are shipped off to monitor and verify information via operators of the transports. Inform contact officials in Customs Sub-departments where goods are shipped to to assess the risks and take actions as per the law (if any).

Part II.

SPECIFIC PROVISIONS

Article 7. Seal installation, activation and supervision of containers/transports

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a) inform customs declarants/transport operators to declare information using application cum notice of receiving electronic navigational seals whose form is specified under Annex III of these procedures and update respective dossiers on electronic navigational seal system;

b) examine working conditions of electronic navigational seals, SIMs and battery which must be at at least 80% before being installed on containers/transports;

c) install electronic navigational seals on containers/transports and turn on the devices;

d) hand 1 copy of application cum notice of receiving electronic navigational seals bearing confirmation of supervisory customs officials to customs declarants/transport operators.

2. Supervise containers/transports.

a) Before containers/transports are brought out of customs controlled areas, supervisory officials shall add necessary information in supervisory dossiers to the system such as license plate and information of operators (full name and phone number) and supervise containers/transports on electronic navigational seal system;

b) Supervise on the basis of warnings from the system for containers whose electronic navigational seals have been activated on the system until Customs Sub-departments where goods are shipped to verify on the system that goods have arrived;

c) Deal with warnings issued by the system as per the law, update information on dealing with respective warnings on the system and take actions against violations (if any);

d) In case an official is unable to fully supervise travel route of containers that he/she is assigned to, he/she must report to team leader in order to hand the task to the replacement official.

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When containers/transports arrive at destinations (unloading areas – into customs controlled areas of Customs Sub-departments where goods are shipped to), assigned officials shall:

a) verify goods arrival and retrieve navigational seals on the system;

b) examine information on route of containers/transports on the system, check warning history and acknowledge warnings and verification thereof (if any);

c) in case of unverified warnings along travel route of containers/transports, request customs declarants/transport operators to provide reasons for the warnings;

d) examine integrity of containers and electronic navigational seals. In case containers or electronic navigational seals show signs of being pried, opened or inadequate warning verification results, make records to acknowledge and report to heads of Sub-departments to perform a thorough physical inspection of containers/transports;

dd) turn off and remove electronic navigational seals from containers/transports;

e) update information on inspection results on electronic navigational seal system, the information consists of: conditions of containers, electronic navigational seals and whether or not customs seals are intact; in case customs seals are not intact, update reasons provided by customs declarants/transport operators; measures of the entities and results thereof;

g) upon receiving the seals, rely on information printed on electronic navigational seals or on the system and use equipment to supervise in case of shipments transported to customs bodies that own and manage electronic navigational seals or return electronic navigational seals via express delivery.

4. Actions to be taken in case containers/transports are issued with warnings during transportation.

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4.1. At Customs Sub-department where goods are shipped off from

a) Officials

a.1) Supervisory officials shall examine warnings on the system in details, update verification of the warnings and search for the containers on the system;

a.2) Verify the warnings via communication information of transport operators specified on supervision dossiers on the system;

a.3) In case of warnings of the system about containers/transports failing to arrive at the destination within the registered period and warnings about illegal interference and influence to electronic navigational seals (illegally breaking locks, cutting wires, removing seals, etc.), report and request heads of Sub-departments to verify via cooperation with Control team affiliated to Anti-smuggling Investigating Authority;

a.4) Upon receiving approval of heads of Sub-departments, rely on warnings on the electronic navigational seal system, officials shall cooperate with contact points of the control teams currently located near the warning location to verify and handle related affairs. Inform Customs Sub-departments where goods are shipped to for cooperation;

a.5) Instruct, provide information for officials of Control teams located near warning location to search for the containers/transports;

a.6) Update verification results on the system in warning handling interface;

a.7) During supervision and handling dossiers, officials may search for declarations, shipping dossiers, goods supervision information, etc. related to containers/transports currently under supervision from customs information systems.

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Heads of Sub-departments shall, based on reported information, inform contact points of Control team via telephones located near warning location to verify the warnings.

4.2. Customs Control teams affiliated to Anti-smuggling Investigating Authority receive request for cooperation in verification

a) When a Control team receives request for cooperation from a Customs Sub-department where goods are shipped off, send officials to rapidly verify the warnings;

b) During verification process, maintain contact with contact points of Customs Sub-departments where goods are shipped off to search for containers/transports emitting the warnings;

c) Upon discovering containers/transports emitting the warnings:

c.1) Verify reasons for the warnings;

c.2) If violations against customs regulations and law are found, make records and take actions as per the law;

c.3) Inform Customs Sub-departments where goods are shipped off from about the verification results.

4.3. At Customs Sub-department where goods are shipped off to

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4.4. Customs Departments managing Customs Sub-departments where goods are shipped off from and Customs Departments managing Customs Sub-departments where goods are shipped off to shall

Examine and monitor warnings and handling thereof of Sub-departments affiliated to them.

4.5. In Online Customs Supervision Department - General Department of Customs.

Examine and monitor warnings and handling thereof of entities.

Article 8. Responsibilities for managing electronic navigational seals.

1. General Department of Customs.

Assigning and transferring electronic navigational seals to enable Customs Departments of provinces and cities to organize supervision of goods/transports subject to customs supervision as per the law.

2. Customs Departments of provinces and cities.

Based on number of electronic navigational seals transferred to by General Department of Customs, shall:

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b) Distribute and circulate electronic navigational seals between affiliated Customs Sub-departments to ensure number of seals in each affiliated Sub-department fits the number of containers/transports subject to customs supervision.

3. Customs Sub-departments.

a) Organize implementation and assign tasks for officials working in Sub-departments to ensure the use of electronic navigational seals conforming to following principles:

- Attaching electronic navigational seals transferred to by Customs Departments to supervise containers/transports departing from the Sub-departments;

- Based on information printed on electronic navigational seals or on the system, using equipment to supervise in case of shipments under customs supervision transported to customs bodies that own and manage electronic navigational seals or return electronic navigational seals via express delivery.

- Transferring electronic navigational seals via express delivery to bodies that own and manage electronic navigational seals according to information printed on electronic navigational seals in case bodies that own and manage electronic navigational seals encounter little goods subject to customs supervision.

b) Preserve and transfer electronic navigational seals according to regulations and law on management and use of specialized machinery and equipment under Decision No. 3104/QD-TCHQ dated October 16, 2018 of Director General of General Department of Customs.

Part III.

IMPLEMENTATION

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1. Directors of Customs Departments of provinces and cities, heads of entities affiliated to the General Department of Customs and relevant entities are responsible for organizing implementation of this pilot Regulation;

2. Responsibilities of entities during implementation of electronic navigational seal system in supervising goods transported by containers and transports.

2.1. Customs Supervision and Management Department

a) Taking charge and providing guidelines for supervision using electronic navigational seal system, examination and supervision of implementation of the Procedures;

b) Cooperating with Anti-smuggling Investigating Authority in examining and monitoring operation of electronic navigational seal system;

2.2. Information Technology and Customs Statistic Department

a) Taking charge implementing the electronic navigational seal system and cooperating with entities (Customs Supervision and Management Department; Anti-Smuggling Authority; Risk Management Department) in choosing location for pilot implementation of electronic navigational seal system;

b) Taking charge issuing and revoking access to the system to enable managers to grant General Department and Departments;

c) Managing and ensuring around the clock operation for the system and transmission as per the law; preparing plans for maintenance of system and transmission for continuous operation of the electronic navigational seal system; assigning contact officials in assuring around the clock operation of the electronic navigational seal system;

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dd) Repairing and updating the system to meet professional demands arising during implementation;

e) Ensuring privacy of itinerary data of containers/transports and system safety.

2.3. Department of Financial Affairs and Administration

Allocating budget for additional expenditure of Customs Departments of provinces and cities such as: expenditure on SIM cards and transferring seals during implementation.

2.4. Anti-smuggling Investigating Authority

a) Managing information technology equipment of the system installed in Online Customs Supervision Department;

b) Cooperating with Customs Departments of provinces and cities in monitoring and supervising vital containers according to professional demands or directions of heads of General Department on the electronic navigational seal system. Promptly encouraging and directing entities to examine and verify or directly establish forces to examine and verify if necessary;

c) Cooperating with relevant entities as per the law to deploy examining and verifying forces when requested;

d) Updating information on contact officials, phone number, email address, etc. on the electronic navigational seal system to cooperate in verifying and handling relevant affairs in case of warnings. Contact officials who are heads of Anti-smuggling control team and Online Customs Supervision Department affiliated to Anti-smuggling Investigating Authority.

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a) Extracting, analyzing information on the electronic navigational seal system and other relevant information serving analysis and determination of focus of import goods;

b) Developing criteria for classifying risk levels to enable Customs Departments of provinces and cities to decide on method of performing customs supervision via electronic navigational seals.

2.6 Customs Departments provinces and cities

a) Assigning officials to monitor supervision operation via electronic navigational seal system of entities affiliated to the Departments;

b) Taking charge verifying warnings from the system for containers under management of the Sub-departments and taking actions against violations (if any);

c) Issuing and revoking access to the system of users affiliated to the Departments;

d) Examining implementation of supervision using electronic navigational seal in the entities;

dd) Cooperating and assisting entities in case of request for searching vehicles and containers emitting warnings; organizing supervision of vital containers according to professional request or directions;

e) Updating information on contact officials, phone number, email address, etc. on the electronic navigational seal system to cooperate in verifying and handling relevant affairs in case of warnings. Contact officials shall be leaders and vices of customs control teams or directors of supervision management department/professional affair department (decided by directors of Customs Departments of provinces and cities).

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a) Taking charge monitoring, supervising and dealing with warnings of the system, organizing examination and verification in case of signs of violations and taking actions against violations (if any) for containers installed with electronic navigational seals;

b) Organizing implementation of supervision of containers installed with electronic navigational seals;

c) Updating information on contact officials, phone number, email address, etc. on the system for cooperating in verifying upon request in case shipments of other entities emit warnings near the Sub-departments. Directors of Customs Sub-departments are responsible for assigning officials of relevant departments to act as contact points to receive information (contact officials shall be leaders and vices of customs control teams, professional teams or officials under management of Customs Sub-departments).

3. Responsibilities of officials

3.1. Tasks of officials in supervisory centers of electronic navigational seal in General Department of Customs

a) Monitoring operation of the electronic navigational seal system, in case the system is malfunctioning, inform contact point of Information Technology and Customs Statistic Department for solution;

b) Examining information statistics for containers in transport/history of container trips stored on the system; comparing actual travel routes of supervised entities with registered information, supervising travel duration, down-time; monitoring warning history, listing and extracting warning data based on time and location, etc.;

c) In case of warnings on the system, directing and cooperating with entities for solutions;

d) Via historical data analyzing function, officials are responsible for consolidating historical data of transports/transport service providers/enterprises/transport history by goods type/transport history of operators/transport condition on any single route, area, itinerary, etc. to serve supervision, monitor and detection of suspicious points for timely interference.

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a) Granting access as specified under Point 7 Part I of these Procedures;

b) Via the system and information channels, managing, examining and monitoring management and supervision of goods subject to customs supervision and transported by containers installed with electronic navigational seals in affiliated Customs Sub-departments;

c) On a periodic basis, monitoring online or examine history of container routes stored on the system; comparing actual routes of supervised entities with registered information, travel time and down-time;

d) At request of heads or request for cooperation of entities, monitoring online or examining itinerary history of containers installed with electronic navigational seals stored on the system along specific route/itinerary or vital areas;

dd) Record additional information (physical inspection results, important information, etc.) serving supervision of containers/transports;

e) Receiving warnings from the system, updating information on dealing with respective warnings on the system and taking actions against violations (if any); after concluding supervision, assigned officials in Customs Sub-departments where goods are transported to are responsible for updating post-supervision information on the system. In case of cases that exceed entitlement of the Sub-departments, direct Customs Sub-departments to handle the warnings. In case of cases that exceed entitlement of Customs Departments, consult heads of General Department of Customs;

g) Transferring electronic navigational seals between entities as specified under Part III of these Procedures, consolidating statistical and transfer reports serving management of seal equipment.

3.3. Tasks of officials monitoring via the system in Customs Sub-departments

a) Heads of Sub-departments

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a.2) Organizing and assigning officials to update dossiers on monitoring containers and transports; installing seals, activating seals; assigning officials to supervise transportation of containers/transports installed with electronic navigational seals.

b) Officials

b.1) Based on list of containers/transports that require customs supervision on the electronic navigational seal system, proposing containers to be installed with electronic navigational seals, reporting to heads of the Sub-departments to approve on the electronic navigational seal system;

b.2) Updating dossiers on monitoring containers and transports; installing seals as assigned by heads of the Sub-departments, activating seals, turning off seals and retrieving seals according to instruction manuals of manufacturers;

b.3) Supervising and monitoring warnings on the system for containers/transports assigned for management;

b.4) Receiving warnings from the system and taking actions as per the law within their competence. In case of cases that exceed entitlement, consult heads of Sub-departments;

b.5) Dealing with warnings specified under Point 5 Part II of these Procedures, updating information on dealing with respective warnings on the system and taking actions against violations (if any); after concluding supervision, assigned officials in Customs Sub-departments where goods are transported to are responsible for updating post-supervision information on the system;

In case the system warns about opening of containers/breaking of seal equipment locks, etc. and goods exceeding the registered period without receiving response of Customs Sub-departments where goods are transported to, Officials assigned to supervise the shipments in Customs Sub-departments where goods are shipped off from shall report to heads of the Sub-departments, cooperate with the Customs Sub-departments where goods are transported to, customs control teams affiliated to Anti-smuggling Investigating Authority in verifying and taking actions as per the law;

b.6) At the end of the shift, transferring list of containers/transports currently under supervision via transfer records to the next shifts. According to the list, the following shifts are responsible for continuing monitoring delivery of containers/transports on the system;

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b.8) Being responsible for transferring electronic navigational seals between entities, consolidating statistical and transfer reports serving management of seal equipment.

3.4. Tasks of officials managing the system

a) Officials managing the system in General Department level shall have accounts to access the entire system to use every function and be responsible for granting access for officials managing the system in Department level and Sub-department level;

b) Officials managing the system are responsible for managing and decentralizing users under management of customs bodies and documents related to the customs bodies;

c) Managing the warnings; establishing contents and methods of warning depending on level of warning (SMS, email, system) etc.; establishing configuration to prevent false alarm;

d) Managing equipment: managing equipment properties (general specification, battery conditions, etc.); establishing and changing frequency in which navigational information of the equipment is sent at request; managing access to the equipment of users, establishing commands executable from afar; managing SIM card information;

dd) Managing utilities of the system: Adjusting digital maps; updating, managing locations of customs bodies, sea ports, warehouses, customs controlled areas, etc.;

4. Information Technology and Customs Statistic Department shall take charge and cooperate with Customs Supervision and Management Department, Anti-smuggling Investigating Authority and Risk Management Department in choosing provinces and cities for pilot implementation of customs supervision for goods subject to customs supervision and transported by containers on the electronic navigational seal system. At the end of pilot implementation period, cooperating with entities in concluding and assessing in order to implement on a nationwide scale;

5. Responsibilities of customs declarants or transport operators:

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Difficulties that arise during the implementation of this Circular should be reported to the General Department of Customs for consideration./.

LIST OF ANNEXES

(Attached to Decision No. 138/QD-TCHQ dated January 21, 2020 of Director General of General Department of Customs)

1. Annex I – Record form for supervisory center of electronic navigational seal system.

2. Annex II – Report and propositions in case of warnings of electronic navigational seal system.

3. Annex III – Application cum notice of receiving electronic navigational seals.

Customs Department: ………………
Customs Sub-department: …………
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RECORD FOR SUPERVISORY CENTER OF ELECTRONIC NAVIGATIONAL SEAL SYSTEM

(dd/mm/yyyy)

Working shift (from <time> to <time>)

System condition

Number of departing container

Number of arriving container

Number of container under supervision

Signature and full name

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- Record shall be written periodically in each shift of officials supervising the system in Sub-departments, Departments and General Department.

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Annex II

REPORT AND PROPOSITIONS IN CASE OF WARNINGS OF ELECTRONIC NAVIGATIONAL SEAL SYSTEM

Customs declaration No. ………………………………………… Container No. …………………………

Warnings recorded from the system: ……………………………………………………………………

………………………………………………………………………………………………………………..

Reasons provided by transport operators: ……………………………………………………………………

……………………………………………………………………………………………………………….

Location where the warnings were produced: ……………………………………………………………

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……………………………………………………………………………………………………………….

Due to location of the warnings is beyond entitlement of entities and within entitlement of customs control teams of ………………………………………. affiliated to Anti-smuggling Investigating Authority

With …………………………… as contact official Phone number: ………………………………….

Propositions: Inform the aforementioned team for cooperation in verifying the warnings.

APPROVAL OF HEADS OF SUB-DEPARTMENT
(Signature and full name)

SUPERVISORY OFFICIAL
(Signature and full name)

Customs Department: ………………
Customs Sub-department: ……………
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APPLICATION CUM NOTICE OF RECEIVING ELECTRONIC NAVIGATIONAL SEALS

Name of enterprise: ……………………………………………………………………………

Phone number of competent individual/enterprise representative: ………………………………………

Full name of customs declarant: ………………………………… Phone: ………………………

Full name of transport operator: ................................................ Phone number: .............................................

Customs declaration No. ………………………………………… Container No. ………………………………

License plate: …………………………………………….. Trailer license plate: ……………………………………………..

Loading location: ……………………………………………………………

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Estimated date and time in which transportation is initiated: ………………………………………………………………

Estimated date and time in which transportation is concluded: ………………………………………………………………

Registration of transport route (specify all national highways and provincial roads to be taken): ………………………………………………………

………………………………………………………………………………………………………………..

Pursuant to Article 40 of Law on Customs dated 2014, customs declarant/transport operator hereby commits to:

- Ensure current condition of customs seals and electronic navigational seals;

- Follow the roads, route and period approved by customs authority. Changes must be reported to the customs authority.

- Ensure safety and security for electronic navigational seals during transportation;

- Customs declarant shall be responsible for any loss, missing or damage as per the law./.

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Customs declarant
(Signature and full name)

Transport operator
(Signature and full name)

CONFIRMATION OF CUSTOMS BODY OF DEPARTURE
(Signature and stamp of official)

CONFIRMATION OF CUSTOMS BODY OF ARRIVAL
(Signature and stamp of official)

Quyết định 138/QĐ-TCHQ năm 2020 quy trình thí điểm về nghiệp vụ quản lý, sử dụng seal định vị điện tử trong giám sát đối với hàng hóa chịu sự giám sát hải quan vận chuyển bằng container do Tổng cục Hải quan ban hành