Binh Duong Customs answers questions for businesses

	Binh Duong Customs reforms procedures to support business recovery
	Binh Duong Customs supports businesses in restoring import and export activities
	Binh Duong Customs applies initiatives in customs reform and modernisation

Customs officers of Bau Bang Customs Team, My Phuoc Industrial Park Customs Branch guide import-export procedures for businesses. Photo: T.D

Are coffee grounds scrap?

Guiding procedures for importing coffee grounds for Trau Viet Trading and Service Co., Ltd (an export processing enterprise), Binh Duong Customs Department said, according to the Law on Environmental Protection 72/2000/QH14 dated November 17 2020, for coffee grounds, based on the nature of the product and the purpose of use to determine whether the product is scrap obtained from the coffee production process or waste to serve as a basis to make a declaration to carry out customs procedures.

Based on Clause 1, Article 55 of Circular 38/2015 of the Ministry of Finance, as amended and supplemented in Clause 35, Article 1 of Circular 39/2016 dated April 20, 2018 of the Ministry of Finance, scrap is unusable raw materials that are leftover during processing or manufacturing of exports and then collected to be used as raw materials for manufacturing of other products; discarded products are finished products or semi-finished products that fail to meet technical standards (in terms of specification, size, quality, etc.) and discarded during the processing or manufacturing of exports instead of being exported.

Regarding customs procedures for handling goods which are determined as scrap obtained from the production process, under provisions of Point a, Clause 4, Article 75 of Circular 38, as amended and supplemented at Clause 51 of Article 1 of Circular 39.

For scrap and discarded products permitted to be sold in the domestic market, Customs procedures shall comply with Chapter II of this Circular. Accordingly, the export processing enterprises shall complete export procedures and the domestic enterprise shall open a corresponding import declaration.

In the case of goods are identified as waste, the export processing enterprises shall comply with the provisions of Clause 7 Article 75 of Circular 38, as amended and supplemented at Clause 51, Article 1 of Circular 39/2016/TT-BTC dated April 20, 2018 of the Ministry of Finance.

Accordingly, export processing enterprises shall handle waste according to the provisions of the law on environmental protection. The export processing enterprises are responsible for record books and presenting them to the customs authority for inspection.

Removing obstacles on certificates of origin

Regarding the obstacles on certificates of origin in the EVFTA, Binh Duong Customs Department reported to the General Department of Customs and received specific instructions.

Regarding certificates of origin of goods, the EVFTA stipulates: “The European Union, hereinafter to as "the Union" jointly referred to as "the Parties" or individually referred to as "Party". Clause 5, Article 3 of Circular 11/2000/TT-BCT on rules of origin “Exporter is an individual or organization whose head office is located in the exporting Member State, exporting goods to another Member State, and is able to prove the origin of the goods.”

Accordingly, a commercial document with a declaration of origin issued by a Company based in the Netherlands while the goods are shipped directly from Belgium, which is also a member of the European Union, does not affect the validity of the proof of origin of the goods.

For written statements certifying the origin declared on commercial invoices and goods manifest, Article 24 of Circular 11/2020/TT-BCT stipulates that an origin declaration shall be made out by the exporter on the invoice, the delivery note or any other commercial documents which describe the products concerned in sufficient detail to enable them to be identified, by typing, stamping or printing on that document the declaration.

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Accordingly, in case the importer presents the commercial documents (commercial invoice and manifests) with the content of self-certification of origin declared REX NLREX1117 code, these documents will be valid.