General Department of Vietnam Customs handles obstacles of cashew companies

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Cashew nuts processed for export.

Regarding the obstacle of enterprise on Customs clearance station for goods in the list of raw materials used for processing and manufacturing for export, a Customs officer of Customs Management and Supervision Department (General Department of Vietnam Customs) said that: in Article 2, Decision No. 15/2017 / QD-TTg specifies: "Customs procedures for imports on the list enclosed with this Decision may be carried out at the port of entry or customs clearance stations outside the port of entry in the following cases: 2. Customs procedures for raw materials, supplies, equipment, machinery, accessories and spare parts which are imported to use for processing and manufacturing operations may be implemented at Customs authority at the place where their production establishments or factories are located.

It means that companies have the right to choose the Customs clearance stations at the port of entry or Customs authority at the place where their factories and factories are located. For local Customs authorities which have not strictly abide by the Decision No. 15/2017/QD-TTg, the General Department of Vietnam Customs will issue a document to adjust and guide the implementation.

Earlier, on July 25, 2017, Vietnam Cashew Association (VINACAS) has sent a document 115/2017 / CV -HHD to the Ministry of Finance, Industry and Commerce, Agriculture and Rural Development, General Department of Customs (Ministry of Finance) and municipal and provincial Customs branches to request for permission for cashew companies to choose Customs declaration at Customs branches in Ho Chi Minh City or the Customs branches at the province/city where these companies have manufactory establishments.

The document of VINACAS pointed out: According to VINACAS member companies, from the end of July to now, hundreds of containers of raw cashew nuts and cashew kernel for export transported to the HCMC port are forced to store in warehouses waiting for clearance.

This is due to obstacles in new regulations on customs clearance based on Official Dispatch No. 4828/TCHQ-GSQL dated June 27 2017 and Official Dispatch no, 4824/TCHQ-GSQL dated July 20, 2017 of the General Department of Vietnam customs on the implementation of Decision No. 15/2017/QD-TTg dated May 17, 2017 of the Prime Minister,

Specifically, in the past, companies were permitted to implement Customs declaration and plant quarantine at the port of entry (single-window) through Customs branch in Ho Chi Minh city within quick Custom clearance time, but now enterprises have to declare at Customs branches in the city and province where their manufactory establishments are located (Binh Phuoc, Dong Nai)

According to VINACAS, this new regulation has created a second window because the plant quarantine is still required to be implemented in the Ho Chi Minh city. However, the Quarantine Agency Region II cannot take samples for plant quarantine as soon as goods arrive at Ho Chi Minh City port but have to wait until goods have been inspected by the Customs branch in the province/city where the companies have manufactory establishments.

“Thus, a shipment shall be transported from Ho Chi Minh City to the related province/city for Customs clearance and then transported from that city/province to the Ho Chi Minh City for quarantine, then they must be transported back to that city/province for storage and production) wasting time and costs for companies as well as society (raising demurrage charges and storage charges; raising time for transport of goods from port to the company’s storage; delaying the loading and unloading of goods, progress of manufacture and delivery of goods for customers)”. Mr. Dang Hoang Giang, Vice President cum Secretary General of VINACAS noted.

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Based on actual situation of the cashew industry with large volume of imports and exports and short manufacturing and processing cycle, VINACAS proposed relevant agencies to allow cashew companies to flexibly choose the Customs declaration at Customs branch in Ho Chi Minh city or Customs branch in province or city where enterprises have their manufactory establishments according to actual conditions of each enterprise.