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Leaders of HCMC Customs Department gave flowers to thank to the Japanese Business Association. Photo: T.H

Many programs to facilitate enterprises

Director of HCMC Customs Department Dinh Ngoc Thang said that this is the first year HCMC Customs Department and Japanese Business Association have held the Conference together, which is expected to be an annual conference for Customs to guide Japanese enterprises on complying to Customs law with the positive support and advice from HCMC Customs Department.

"On the side of HCMC Customs Department, through the dialogue conference, the Customs has timely embraced and received the enterprise’s opinions on the export and import management policy related to specialized management agencies; tax policy and customs procedures. Accordingly, solving problems, difficulties and continuing to cút administrative procedures and costs for enterprises to promote business and production as well as create favourable conditions for investment in Vietnam"- Mr. Đinh Ngọc Thắng shared.

Mr. Kadowaki Keiichi, Chairman of the Japanese Business Association of in HCMC said that Japanese enterprises are interested in selling a part of products manufactured for export to the domestic market. Mr. Kadowaki Keiichi expects this conference to be held annually, so that enterprises can directly put questions to Customs officers, helping enterprises to understand more about Customs and creating beautiful images between Customs and Japanese enterprises.

At the conference, HCMC Customs Department answered almost 70 questions from Japanese enterprises related to commodity management policy of export processing and production enterprises and processing enterprises; tax code application; automated system for customs management and customs brokers.

Leaders of HCMC Customs Department listened to questions from enterprises. Photo: T.H

Answering questions from some enterprises about the implementation program of Automated System for Customs Management System (VASSCM), Nguyen Thanh Long, Deputy Head of Management Supervision Division under HCMC Customs Department said that the VASSCM system has been deployed by HCMC Customs Department since early 2018. So far, 28/30 locations have finished the implementation of VASSCM. In this November, HCMC Customs will complete the implementation of VASSCM at warehouses, yards and ports in HCMC.

"Only in Cat Lai port with an average of about 10,000 declarations and 15,000 teus of goods goes through the supervision area, When the VASSCM is deployed, all gateways are automated on the online system, enterprises do not have to meet the customs authorities to do any procedures for goods through the supervision area, which will save time and costs for enterprises. Each declaration is reduced 10 minutes, it will shorten the waiting time for enterprises,” Mr. Long shared about the efficiency of the program.

Recognizing the requests of some Japanese enterprises about the reputable Customs brokers which have been certified, HCMC Customs Department said that after this conference, the Department will request the General Department of Customs to publish the name of enterprises as Customs brokers which have been granted certificate on the Customs portal.

Answering the questions from enterprises about the HS code application, Mr. Nguyen Quoc Toan, Deputy Head of Import-Export Tax Division explained, Vietnam is a member of the World Trade Organization, in Vietnam, each commodity is applied one HS code. Regarding the goods classification, if enterprises do not know how to apply the code for imported goods, they may request the Customs for advance ruling on HS code.

Are enterprises allowed to sell exported goods to the domestic market?

At the conference, HCMC Customs Department guided and answered questions related to the commodity management policy of export processing enterprises. EPE Company imposed a question that the company has always sold all their products abroad, but with the dynamic domestic market, whether the company could sell a part of their products to the domestic market or not, and what is the policy?

Answering the company’s question, the representative of HCMC Customs explained that pursuant to Clause 2, Article 2 of the Law on Import and Export Duties, goods imported from a non-tariff area are subject to tax.

Pursuant to Clause 8, Article 16 of the Law on Import and Export Duties; Article 22 of Decree No. 134/2016 / ND-CP, a product which is manufactured, processed, recycled or assembled in a non-tariff area and does not use imported raw materials or components, is exempted from import tax in accordance with regulations when importing to the domestic market. A product which is manufactured, reprocessed or assembled in a non-tariff area and uses imported raw materials and components shall have to pay import tax at a tax rate and taxable value of goods imported into the inland of Vietnam

Companies raised questions at the dialogue conference. Photo: T.H

Also related to products manufactured for exports, an export processing company asked about the tax arrear from post-customs clearance audit due to the negative difference between actual inventory data and customs declared data.

Answering the question, Mr. Nguyen Quoc Toan said, according to the Customs management for imported materials for export processing and production of export processing enterprises, the raw materials imported by an export processing enterprise for export production are not subject to tax but still must carry out Customs procedures and must be inspected and supervised by Customs according to the general provisions on export production type. Customs authority shall implement the supervision, mainly indirect supervision, via Customs dossiers and declared contents of goods and use purpose of imported materials for export production. The Customs declarant shall have to manage and declare to the Customs authority on exact types and quantities of imported raw materials; the actual inventory volume. In case of changes in customs declared contents, the enterprise must make an additional declaration, if the company fails to make the additional declaration, it does not comply with its obligation under law.

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In the case where enterprises are committed to not sell the products to the inland but still lose raw materials and accessories, resulting in the negative difference between the actual data and inventory data, when the customs office discover that, if enterprises fail to explain and prove, the Customs authority shall base on the actual book data and actual inventory data to collect the tax arrears for the lost raw materials, which is reasonable and complies with regulations.

At the conference, although all the questions from enterprises have been satisfactorily answered by the HCMC Customs Department, in order for the enterprises to thoroughly understand the policies to implement, Director Dinh Ngoc Thang directed its competent units to compile the entire answered contents to send to enterprises.