Are FDI enterprises subject to on-spot import and export?

VCN - In the implementation of the Law on Foreign Trade Management and Government’s Decree No. 09/2018 / ND-CP dated 15th January 2018, Ho Chi Minh City Customs Department raised many problems related to on-spot import and export of foreign direct investment (FDI) enterprises.
are fdi enterprises subject to on spot import and export
Ho Chi Minh City Customs officers guide procedures for FDI enterprises. Photo: T.H

Accordingly, are FDI enterprises which have the right to export permitted to use goods purchased in Vietnam, or goods legally imported into Vietnam for on-sport export?

Currently, the Ho Chi Minh City Customs Department has raised many cases where FDI enterprises which have been granted export permit to apply for on-spot export of goods purchased in Vietnam and of goods legally imported into Vietnam.

According to the provisions of Clause 1, Article 7 of Decree No. 09/2018 / ND-CP, FDI enterprises which have already been granted the export permit shall only be permitted to export goods purchased in Vietnam; For goods processed in Vietnam under orders by those enterprises and goods legally imported into Vietnam from a foreign country or a private Customs area, there is no specific regulation on permission for on-spot export to FDI enterprises.

Therefore, in this case, Ho Chi Minh City Customs Department has not enough legal basis to solve the on-spot export procedures for the enterprises

In addition, the Ho Chi Minh City Customs Department noted that the Law on Foreign Trade Management No. 05/2017 / QH14 and Decree No. 09/2018 / ND-CP do not stipulate the on-spot import and export activities of FDI enterprises.

Recently, the Department has received an Official Letter No. 130 / XNK-CN dated 31st January 2018 from the Import-Export Department (under the Ministry of Industry and Trade) answering on the on-spot export of foreign enterprises.

Under this Official Letter, the Import and Export Department guided that the on-spot export of goods complies with Article 32 of Decree 187/2013 / ND-CP dated 20th November 2013 and Point C, Clause 3, Section II of Circular 04/2007/ TT-BTM.

However, Decree 108/2006 / ND-CP has expired and is replaced by Decree 118/2015 / QH13, so Circular 04/2007 / TT-BTM also expires in accordance with the provisions of Clause 4 of Article 154 of the Law on Promulgation of Legal Documents No. 80/2015 / QH13.

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Therefore, at present, there are no documents specifying on-spot import and export activities for goods subject to on-sport import and export by FDI enterprises so that Ho Chi Minh City Customs Department is facing difficulties for the guidance of enterprises.

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