CFS Warehouse Registration Requirements in Vietnam

In the logistics and import-export sector, the Container Freight Station (CFS) plays a pivotal role in the supply chain. This location is designated for consolidating, sorting, and grouping cargo that does not yet meet the full container load. It is also where customs inspection and clearance procedures are conducted before export or after import. To be authorized to provide CFS services, enterprises must strictly comply with legal conditions and obtain recognition from competent authorities for their CFS location. In this article, Viet An Law provides a comprehensive overview of the conditions for CFS Warehouse Registration Requirements in Vietnam.

Overview of Container Freight Station (CFS)

Definition

A Container Freight Station (CFS) is a designated warehouse or yard area used for consolidating, separating, and handling cargo belonging to multiple consignors transported in the same container (as defined in Article 4 of the 2014 Customs Law).

Permissible Services at a Container Freight Station (CFS)

• Packing, repacking, arranging, and rearranging goods awaiting export.
• Transit and transshipment cargo may be brought into CFS locations within the port for separation, consolidation into export containers, or consolidation with Vietnam’s export goods.
• Separation of imported cargo shipments pending import procedures or consolidation with other export shipments for export to a third country.
• Transfer of ownership of goods during the storage period.

CFS Warehouse Registration Requirements in Vietnam

Requirements for Recognition of a Container Freight Station (CFS)

The Container Freight Station (CFS) must be located within the areas specified under Clause 1, Article 62 of the Customs Law 2014.

The CFS must have a minimum warehouse area of 1,000 m², excluding yards and auxiliary facilities, and must be enclosed by a fence separating it from surrounding areas.

• A software system must be in place to manage the storage of goods, allowing online data transmission to customs authorities. This system must provide detailed information on goods names, quantities, conditions, times of entry and exit, and storage status based on bills of lading and/or customs declarations, in line with the automated cargo management and monitoring system.
• A camera surveillance system must be installed, ensuring real-time connection with customs authorities. It must provide full coverage of all CFS areas 24/7, with recorded footage retained for a minimum of six months.
• For CFS locations situated within seaport or inland container depot (ICD) areas.

In cases where the enterprise operating the Container Freight Station (CFS) is a port operator, it is not required to undergo the recognition procedure under Decree No. 68/2020/ND-CP, as amended by Decree No. 67/2020/ND-CP. However, it must complete the procedure for obtaining a code for the CFS location in order to carry out customs procedures for goods entering and exiting the CFS location before commencing operations.

The port-operating enterprise shall submit an official request to the local Sub-Department of Customs, requesting the issuance of a CFS location code using Form No. 03 provided in the Appendix issued with this Decree (01 original copy).

Within 05 working days from the date of receipt of the enterprise’s request, the local Sub-Department of Customs shall complete the physical inspection of the location and report to the Customs Department regarding the issuance of the CFS location code.

Within 05 working days from the date of receiving the report from the Sub-Department of Customs, the Customs Department shall issue the code and notify both the enterprise and the Sub-Department of Customs.

In cases where the enterprise operating the CFS is not a port operator, it must undergo the recognition procedure for the CFS location in accordance with Clauses 1 through 5 of Article 19 and Article 20 of Decree No. 68/2016/ND-CP on the conditions for operating duty-free businesses, warehouses, locations for customs procedures, consolidation, inspection, and supervision, as amended by Decree No. 67/2020/ND-CP.

Procedure for Recognition of a Container Freight Station (CFS) Location

• Step 1: Enterprises intending to establish a CFS must prepare a dossier in accordance with Article 12 of Decree No. 68/2016/ND-CP, as amended by Decree No. 67/2020/ND-CP, and submit it to the local Sub-Department of Customs.
• Step 2: Within 10 working days, the Sub-Department of Customs shall review the dossier and inspect the warehouse and yard. If the conditions for establishment are met, it shall report and propose to the Customs Department for consideration and decision.
• Step 3: Based on the report and accompanying dossier from the Sub-Department of Customs, the Director of the Customs Department shall issue a decision to recognize the Container Freight Station (CFS) or provide a written response to the Sub-Department of Customs and the enterprise if the conditions are not yet satisfied, within 05 working days.

Note: For CFS locations situated within seaports or inland ports handling import and export goods, enterprises are not required to follow the above establishment procedures. However, prior to commencing operations, the enterprise must notify the local Sub-Department of Customs in charge of the respective seaport or inland port.

Dossier Components for Recognition of a Container Freight Station (CFS) Location

• A written request for recognition using Form No. 01 in the Appendix issued with Decree No. 68/2016/ND-CP (as amended by Decree No. 67/2020/ND-CP): 01 original copy.
• Enterprise Registration Certificate or Investment Registration Certificate: 01 copy.
• Design layout of the CFS area clearly showing the boundary lines, locations of warehouses, internal transportation system, security stations, warehouse office, and customs working area: 01 copy.
• Documentation describing the software program used for managing the CFS location: 01 original copy.
• Documents proving the right to use the premises: 01 copy.
• Certificate of compliance with fire prevention and fighting requirements issued by the police authority: 01 copy.
• Operational regulations: 01 original copy.

Receiving Authority for the CFS Recognition Dossier

• The dossier shall be submitted to the local Sub-Department of Customs where the CFS is located.
• The Sub-Department of Customs will conduct an on-site inspection and submit its proposal to the Customs Department for review and decision on recognition.

Procedure for Issuance of a Container Freight Station (CFS) Location Code

• Dossier Component: A written request for issuance of a CFS location code using Form No. 03 in the Appendix issued with Decree No. 68/2016/ND-CP (as amended by Decree No. 67/2020/ND-CP).
• Place of Submission: Local Sub-Department of Customs where the CFS is located.
• Processing Timeframe:
  • Within 05 working days from the date of receiving the enterprise’s written request, the Sub-Department of Customs shall complete the physical inspection of the location and report to the Customs Department regarding the issuance of the CFS code.
  • Within 05 working days from the date of receiving the report from the Sub-Department of Customs, the Customs Department shall issue the code and notify both the enterprise and the Sub-Department of Customs.

If you have any questions or require specific legal advice regarding the conditions for CFS warehouse registration requirements in Vietnam, please do not hesitate to contact Viet An Law Firm for prompt assistance and support.