FINAL SETTLEMENT REPORT

2025-04-25 08:00:43 Views

Customs Settlement Report

1. What is a Customs Settlement Report?

A Customs Settlement Report is a report on the utilization of imported raw materials, supplies, and exported products under customs supervision. It is a mandatory report for export manufacturing enterprises, processing enterprises, and export processing enterprises (EPEs).

The report enables customs authorities to monitor the use of imported duty-exempt materials and verify compliance with customs regulations and tax exemption policies.

2. Which Businesses Must Submit a Customs Settlement Report?

Export manufacturing enterprises, processing enterprises, and export processing enterprises are generally granted import duty exemptions on raw materials used for production and export activities.

These businesses are required to reconcile:

Imported raw materials and supplies.
Production consumption norms.
Exported finished products.
Inventory balances.

Therefore, the Customs Settlement Report is a mandatory filing for enterprises engaged in export manufacturing, processing, and export processing activities.

3. Latest Regulations on Customs Settlement Reports

Regulations governing Customs Settlement Reports are specified in Clause 39, Article 1 of Circular No. 39/2018/TT-BTC, which amends Article 60 of Circular No. 38/2015/TT-BTC.

Submission Deadline

According to Point 2, Clause 39, Article 1 of Circular No. 39/2018/TT-BTC:

Organizations and individuals must submit the Customs Settlement Report no later than the 90th day from the end of the fiscal year, or before carrying out procedures related to merger, consolidation, division, dissolution, or transfer of customs procedures to another customs authority.

The report must be submitted electronically through the customs system.

Amendments and Supplements

According to Point b, Clause 39, Article 1 of Circular No. 39/2018/TT-BTC:

Within 60 days from the submission date, and before customs authorities issue a decision on customs inspection, post-clearance audit, or customs examination, enterprises may amend and resubmit their Customs Settlement Report if errors are identified.

After the 60-day period or once customs authorities have initiated inspections, any amendments must be reported to customs authorities and may be subject to penalties in accordance with tax and administrative violation regulations.

Penalties for Late Submission

According to Clause 3, Article 7 of Decree No. 128/2020/NĐ-CP:

Enterprises that fail to submit the Customs Settlement Report within the prescribed deadline may be fined from:

VND 2,000,000 to VND 5,000,000

For individuals, the penalty is equal to 50% of the fine imposed on organizations.

4. Difference Between Financial Statements and Customs Settlement Reports

Although both reports must generally be submitted within 90 days after the end of the fiscal year, they serve different purposes.

Financial Statements

Submitted to tax authorities.
Required for most businesses.
Focus on financial performance and accounting records.
Reflect assets, liabilities, revenues, expenses, and profits.

Customs Settlement Reports

Submitted to customs authorities.
Required only for enterprises benefiting from import duty exemptions on production materials.
Focus on imported raw materials, production consumption, exports, and inventory balances.
Used for customs supervision and compliance purposes.

In simple terms, financial statements deal primarily with money and financial performance, while customs settlement reports focus on goods, inventory, and imported raw materials.

5. What is Customs Settlement Reporting Software?

Many enterprises in Vietnam use ECUS5-VNACCS, developed by Thai Son Soft, as their customs settlement reporting software.

The software assists businesses in:

Processing settlement data.
Preparing customs settlement reports.
Reconciling inventory and production records.
Electronically submitting reports to customs authorities.

6. How to Prepare a Customs Settlement Report

Step 1: Collect Data

Gather information from:

Warehouse department.
Accounting department.
Import-export department.

Step 2: Reconcile and Compile Data

Prepare detailed records of:

Opening inventory.
Imports during the reporting period.
Consumption during production.
Exports during the reporting period.
Closing inventory.

Use these figures to prepare the Customs Settlement Report.

Step 3: Prepare Supporting Documents

Required documents include:

Import documents:
- Contracts.
- Packing Lists.
- Commercial Invoices.
Production consumption norms and related adjustments.
Import customs declarations.
Export customs declarations.
Warehouse receiving slips.
Material issuance records.
Finished goods delivery records.
Scrap and waste disposal documentation.
Financial statements and related accounting records.
Documents evidencing the handling of excess raw materials at the end of the fiscal year.

7. How to Review a Customs Settlement Report

The review process generally focuses on the following areas:

Verification of Production Consumption Norms

Customs authorities may review:

Material consumption rates.
Production yields.
Production losses and wastage.

Inventory Reconciliation

Customs authorities compare the enterprise's inventory records with customs declarations.

Three situations may occur:

No Discrepancy

Inventory records match customs declarations.

Excess Inventory

Actual inventory exceeds the quantity declared to customs.

Inventory Shortage

Actual inventory is lower than the quantity declared to customs.

Inventory discrepancies may trigger further customs inspections, tax reassessments, or administrative penalties.

Conclusion

The Customs Settlement Report is a mandatory compliance requirement for export manufacturing enterprises, processing enterprises, and export processing enterprises. Proper inventory management, accurate recordkeeping, and timely submission of reports help businesses maintain customs compliance, avoid penalties, and ensure smooth import-export operations.