It is necessary to amend the policy on management of low-value goods sent via the CPN service

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Since the outbreak of the Covid-19 pandemic, imported goods and imported goods purchased electronically using express delivery services have increased dramatically. Photo: ST

Sudden increasing in goods volume

The Hanoi Customs Department has two sub-departments to carry out customs procedures for goods using express delivery services, Express Customs Sub-Departments and Gia Thuy Customs Sub-Departments, which manage six gathering, inspection and supervision locations. At these locations, 23 express delivery service enterprises (either location owners or warehouse tenants) registered to operate.

According to the Hanoi Customs Department, the trend of globalisation, the development of cross-border e-commerce, the development of goods transported by air, especially since the outbreak of the Covid-19 pandemic, imported goods in general and imported goods purchased electronically using express delivery services have increased dramatically.

In addition to making efforts to meet the needs of quick and convenient customs clearance of goods, in the process of conducting inspection and management of this type under legal regulations, Hanoi Customs Department said that there were still some problems which should remove.

Customs dossiers and procedures for low-value imported goods sent through the express delivery service are very simple (only includes low value import declaration, bill of lading or other equivalent transport documents, commercial invoice (if any). But VNACCS/VCIS does not have a number of information fields, leading to insufficient information for customs officers to compare the exact name of goods, customs value, policy of goods, track and identify key subjects to apply the correct management measures.

According to Clause 2, Article 29 of Decree 134/2016/ND-CP, as amended and supplemented in Clause 11 Article 1 of Decree 18/2021/ND-CP, import goods are sent via postal or express delivery services with a customs value of VND 1,000,000 or less or with a payable tax of VND 100,000 or less, they are exempt from import tax. This regulation does not limit the number of times/time unit which an organisation or individual is exempt from tax such as tax exemption.Therefore, at the Express Delivery Customs Sub-Department, there were cases where the same organisation, individual, one phone number imported many declarations of low value goods in their name in a short time.

In addition, the VASSCM system for postal and express delivery locations has not been implemented. Therefore, customs supervision of exported and imported goods brought in, stored, and brought out of the warehouse or location is done manually by customs officials when not connected with the customs electronic data processing system.

For goods without great value, there are many cases where individuals and organisations do not accept to pay tax, do not want or samples are not eligible for specialised inspection, so they have refused to receive goods. As a result, at express warehouses, there is often a large amount of backlogged goods. Customs authorities must spend resources to work with the Department of Finance and specialised agencies to solve.

It is necessary to amend and supplement legal regulations

From problems in the process of inspection and supervision for express goods, the Hanoi Customs Department said it might bring potential risks for low-value express goods. Individuals, organisations and enterprises providing express delivery services might take advantage of policies to divide and separate goods for the purpose of tax evasion, without carrying out specialised inspection procedures. Goods imported in small quantities are very large volume, the main importers are individuals and organisations with no tax codes, little declared information. They were the difficulties in determining the risks to manage and carry out inspection, post-customs clearance inspection and post-inspection handling issues.

To ensure conditions for customs inspection and supervision, to prevent smuggling and trade fraud and to create favourable conditions for enterprises, it is necessary to amend and supplement legal regulations. Promote the progress of construction and submission to the Government for promulgation of the decree on management of e-commerce activities for imported and exported goods. In particular, customs procedures must be simple and fast, ensuring the management of the Customs authorities, correctly and fully collecting import and export taxes, and preventing commercial fraud. Parties involved in e-commerce transactions send advance information on orders, information on transportation of export and import shipments transacted via e-commerce to the Customs Management System.

At the same time, submit to the Government for promulgation the decree on State inspection of quality and State inspection of food safety. In which, it clearly stipulates the order of procedures to be carried out at Customs, cases of exemption from inspection, and inspection methods. Amending and supplementing Decree No. 134/2016/ND-CP, Decree No. 18/2021/ND-CP. In particular, stipulating tax exemption rates for goods sent via the express delivery service (including: value, minimum tax amount and number of times/ time unit that an organisation or individual is exempt from tax). Amending and supplementing Decree No. 128/2020/ND-CP, which stipulates that the subject of administrative penalties is an express delivery service enterprise when declaring on behalf of the goods owner for low value goods.

In addition, it is necessary to amend Circular No. 191/2015/TT-BTC, Circular No. 56/2019/TT BTC to improve the responsibility of express delivery service enterprises; Thoroughly apply risk management, so Customs officers can focus on inspecting and supervising key subjects, consignments, and goods showing signs of violation (banned goods, weapons, drugs). Amending and supplementing Circular No. 203/2014/TT-BTC, which simplifies the order and procedures for handling backlogged goods. Supplementing the obligations of firms doing business on location and express delivery service which handles backlogged goods and is responsible for paying costs.

Hanoi Customs Department also proposed the General Department of Customs guide and issue the process; upgrade the system of customs operations; equipped with material and technical facilities to ensure the management of goods sent via express delivery service.