Foreign firms propose support for customs procedures

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The Investment Customs Branch officers at work (HCM City Customs Department). Photo: T.H

Essential commodities are prioritised for customs clearance

It is proposed a priority customs mechanism should be issued to promptly respond to customs clearance requirements for firms importing essential commodities such as drugs, vaccines, medical equipment, medical nutrition food and milk for children; to reduce red channelling during social distancing and to support customs clearance and release of goods stuck at the port, especially Cat Lai port.

Firms propose that Customs allows firms to use customs dossiers opened at Cat Lai port to release goods at transhipment ports without cancelling dossiers and opening a new dossier at transhipment ports.

Regarding the draft circular on customs supervision during the pandemic, firms said that this circular is only valid for imported goods transported in the social distancing period under Directive 16. If the cargo congestion continues after this period, it will be tough to apply this circular.

Firms proposes to extend the application period of this circular in Clause 2, Article 18 similar to Circular 47/2020 of the Ministry of Finance on the time of submission of origin proof and submission method for imported goods applied during the Covid-19 pandemic period as follows: “Based on the development of the Covid-19 pandemic in the world, the Minister of Finance will announce the termination of this circular.”

Due to the regulations restricting travel within the inner city as well as to other provinces, firms face difficulties in signing, stamping and submitting originals such as lease contract of bonded warehouse, service contract and origin certificate. Therefore, they have proposed to implement this work online.

After implementing customs clearance procedures by TOKEN, businesses must submit the original, but due to the Covid-19 pandemic, businesses recommend submitting this document by email or other electronic format.

In addition, there are some time network errors, so businesses have recommended authorities improve network transmission and upgrade software to support businesses.

Increase customs force to work at office

Recently, importers of drugs and medicinal ingredients have faced many difficulties in terms of customs clearance due to enhanced control measures by Customs for pharmaceuticals, medical and diagnostic equipment. They are essential goods for health treatment so there must be a priority mechanism for customs clearance for these goods. Firms have asked the Customs to speed up the customs clearance process to release the blocked shipments and apply the priority customs regime and clear medical and diagnostic equipment.

In addition, many documents in the customs dossier are not accepted due to administrative differences, such as typographical errors, late submission of declarations, etc. This may be why medical equipment for pandemic prevention has been classified into the red channel. The outdoor inspection stage lasts for a long time (about 2-4 hours), so products that need to be stored in special conditions will be affected.

Currently, most businesses are working from home, leading to more delays in import and export activities. Therefore, businesses expect Customs authorities to expand the working time.

In case of goods transported by air, firms need to quickly export goods. In the current blockade situation, not only the number of Customs officers working at officer is reduced, but they must return home before 6pm, so businesses must take goods to the airport earlier. Thus, firms expect the Customs to increase number of customs as well as working time.

According to businesses, after the end of social distancing, to overcome the delay in production, it is expected that businesses will carry out non-stop production including Saturdays and Sundays and holidays. Therefore, it is proposed the Customs might work on the holidays to support businesses.

After easing social distancing, the volume of exports will skyrocket, and airlines and shipping companies will ask for more flights and shipments. It is proposed the Customs office should check the documents and clear goods quickly.

Regarding logistics costs, businesses are concerned storage charges and empty containers fees will increase. Businesses have suggested Customs should offer appropriate fees and extend the payment deadline of fees for seaport infrastructure at the ports of HCM City instead of from October 1, 2021 as prescribed; and allow firms pay the import duty later for essential items that are guaranteed by banks.