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Deputy Prime Minister at the conference

Do not adjust the exceptions

Chairman of the Economic Committee Vu Hong Thanh reported: At the second session, the National Assembly discussed in the group and the hall on the Foreign Trade Administration Law Project. Most members of National Assembly agreed with the verification report of the Economic Committee and approved with the basic contents of the Law project submitted by the Government and contributed many ideas to the Law project.

The National Assembly Standing Committee directed the Leading Verification Agency, the Draft Agency and relevant agencies to study, adopt and revise the draft Law consisting of 8 chapters and 117 articles, in which adding two articles and combining two articles into one and supplementing some points, clauses and sending it to ask for approval of the National Assembly’s delegates. There were many contents relating to Customs management in the contents of explanation and acceptance.

Specifically, Mr. Thanh proposed to review regulations on exceptions for export restriction and import restrictions in Article 17 to avoid creating misunderstandings, to restrict freedom of doing business and add non-commercial exports and imports (aid goods, donated goods, etc.).

In essence, this content is not adjusted in the draft Law due to the management of aid goods, charity goods or personal luggage and belongings of individuals subject to diplomatic immunity, which is currently implemented under Customs Law in Section III Chapter III and the guiding documents. Therefore, Article 17 of the draft Law stipulates cases which are not necessary to apply the export or import restrictive measures: do not apply these restrictive measures to export and import activities of separate Customs zones and non-commercial exports or imports to facilitate the business community operating in the separate Customs zones or to enterprises having trade relations with enterprises in separate Customs zones.

Others argue that Article 4 and Article 3 provide that a separate Customs zone is a zone where there has import and export relationship with other zones in the domestic market, while Article 56, 57 and Article 68 provide that foreign trade administration measures are not applied for goods transported from the domestic market or foreign countries into the separate Customs zones and goods traded and transported within the separate Customs zones of Vietnam.

Explaining this matter, Mr. Thanh stated that the provisions in Articles 57, 58 and 59 of the draft Law do not reflect the concept of export and import as stipulated in Article 28 of the Commercial Law, but stipulate the exemption from application of foreign trade administration measures for the cases provided in these articles.

The transport of goods from the domestic market into the separate Customs zones is still an export and import relationship and still requires on-the-spot import and export procedures in accordance with the Customs Law. Therefore, it was proposed to remain the provisions of the draft Law.

It must be thoroughly reviewed

At the conference, the Deputy Minister of Finance Vu Thi Mai requested to review the provision on “separate Customs area" and explain in detail the differences of this zone with the non-tariff zone in the Law on Import and Export Duties to avoid the same area that has two names.

Responding to the questions of the Deputy Minister, the Deputy Minister of Industry and Trade Tran Quoc Khanh said that the non-tariff zone defined in the Law on Export Tax and Import Tax is the area which has defined geographical boundaries and is separated from the outside by solid fences, and ensures the conditions for Customs inspection, supervision and control of Customs agencies and relevant agencies for imported and exported goods as well as means of transport and passengers on exit or entry".

Meanwhile, the separate Customs zone in this draft law is a defined geographical area in the territory of Vietnam and established under the provisions of Vietnamese law and international treaties of which Vietnam is a member, and has trade and exchange relations of goods with the rest of the territory and import and export relation with foreign countries. The two concepts are different and distinguishable.

Chairman of the National Defense and Security Committee Vo Trong Viet and many members of the National Assembly Standing Committee assessed that this draft Law is well accepted ad adjusted, if the Law comes into force, it will be supported because its provisions are very clear, not complicated and superfluous. However, the Drafting Board should review again to further specify some provisions on road tolls and storage charges to avoid causing difficulties for enterprises.

The Vice chairman of the National Assembly Uong Chu Luu proposed to clarify the provision on foreign trade development through trade promotion and requested to further clarify and add provision on foreign trade promotion in Vietnam.

The Chairwoman of the Committee for Social Affairs Nguyen Thuy Anh suggested to review the provisions of the Law and other relevant Laws to avoid inconsistencies in the provisions of the draft Law.

In conclusion, Vice Chairman of the National Assembly Phung Quoc Hien stated that, with care, the National Assembly Standing Committee suggested the Drafting Board to further review to ensure high uniformity with the current Laws such as the Law on Customs, and the Law on import and export duties to avoid conflict, overlap and duplication. There are still unclear and unspecific words and language conflicts which should be reviewed, like articles 76, 86 and article 113 of the draft Law.

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Provisions on cross border policy in Article 54 and Article 55 of the draft Law are quite open to create the right for the Government to flexibly handle, the Deputy Chairman of the National Assembly Phung Quoc Hien proposed that the implementation should be uniform and provisions should not be too loose as well as not too tight, causing difficulties for enterprises and people.