Licensing for Consumption of Goods in Transit

The Licensing for Consumption of Goods in Transit is a mandatory administrative procedure when a cargo owner wishes to change the purpose of use for goods currently in transit through Vietnamese territory. This process is strictly regulated to ensure state management of border trade. This article analyzes detailed legal regulations.

Cases requiring permits for the consumption of goods in transit.

Based on Article 12 of Circular 27/2014/TT-BCT (amended by Circular 24/2024/TT-BCT):

• Prohibited: It is strictly forbidden to consume transit goods in Vietnam if they belong to the List of goods banned/suspended from business, export, or import.
• Permitted (Exception): For goods not on the prohibited list, domestic consumption is generally not allowed, except in force majeure cases. In such events, domestic consumption requires written approval from the Ministry of Industry and Trade (MOIT).
• Note: Even with approval, goods cannot be sold directly to retail; they must be sold through Vietnamese traders and undergo import procedures at Customs, fulfilling all tax and specialized management obligations.

The competent authority grants permits for the consumption of goods in transit.

Based on Subsection 4, Section I, Part II of Decision 3181/QD-BCT (2024), the competent authority is the Agency of Foreign Trade (under the Ministry of Industry and Trade).

• Role: Receives and appraises dossiers; submits to MOIT leadership for decision.
• Address: 54 Hai Ba Trung, Hoan Kiem District, Hanoi.

Required Dossier for obtaining a permit to sell goods in transit.

According to Decision 3181/QD-BCT (2024), the standard dossier includes:

1. Request Form: Request for permission to consume goods in transit (Form in Appendix V of Circular 24/2024/TT-BCT).
2. Transit License: 01 copy (certified true copy by the cargo owner) of the granted license (if applicable).
3. Force Majeure Proof: Documents proving the force majeure event necessitating domestic consumption.

Procedure for granting permits for the consumption of goods in transit.

The procedure is standardized as follows:

Step 1: Submission The cargo owner submits the dossier online via the MOIT Public Service Portal, or directly/by post to the Agency of Foreign Trade (MOIT).

Step 2: Appraisal The Agency of Foreign Trade checks the validity and completeness of documents (comparing the request with the transit license and force majeure proof). If incomplete, supplementation is requested.

Step 3: Decision Making Based on the appraisal report, MOIT leadership decides to approve or refuse.

• Processing Time: 15 working days from receiving a complete and valid dossier.

Step 4: Result Return The result is a written Approval or Refusal (stating reasons).

>>> See more at: Note when drafting a goods transit service contract

Consulting services for procedures to apply for permits to sell goods in transit at Long Phan.

Long Phan Consulting Company provides comprehensive support to optimize time and ensure compliance:

• Situation Analysis: Assessing the force majeure event and likelihood of approval.
• Review & Risk Assessment: Reviewing documents against regulations; identifying gaps.
• Drafting: Preparing the Request Form and guiding the authentication of supporting documents.
• Representation: Submitting the dossier to the Agency of Foreign Trade; monitoring progress; updating status.
• Explanation: Working with state agencies to explain issues if arisen.

Frequently Asked Questions

Below are some frequently asked questions regarding the licensing of goods in transit; please refer to them:

Are there administrative fees?

No. There are no state fees for this procedure, though applicants bear postal or preparation costs. (Legal Basis: Item h, Subsection 4, Section I, Part II, Decision 3181/QD-BCT).

What if the transit license expires while waiting for approval?

The owner must apply for an Extension of Transit Time. Each extension is max 30 days (max 3 times).

• Authority: MOIT (for licensed goods) or Customs (for non-licensed goods). (Legal Basis: Clause 2, Article 1, Circular 24/2024/TT-BCT).

Can prohibited goods be consumed domestically in force majeure cases?

No. Domestic consumption is strictly prohibited for banned goods. They must be destroyed or re-exported. (Legal Basis: Clause 1, Article 12, Circular 27/2014/TT-BCT).

Can I submit the request to the Customs Branch?

No. Customs has no authority to license this. You must submit to the Agency of Foreign Trade (MOIT). Customs only processes import clearance after MOIT approval.

What counts as valid force majeure proof?

Documents from competent authorities at the incident location, e.g., Traffic Police accident reports, natural disaster/fire confirmations from local People’s Committees/Fire Police, or loss assessment reports from insurance/independent survey firms.

What if permission is refused?

The cargo owner must continue transporting goods out of Vietnam according to the original transit route or re-export to the country of origin, under customs supervision.

Conclusion

The Licensing for Consumption of Goods in Transit requires thorough legal understanding. Compliance avoids unnecessary risks in border trade. Please contact Long Phan Consulting Company via Hotline 1900636389 for timely expert advice.