Pricing consultations to build consensus between Customs and businesses

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The Customs-Business Partnership is appreciated by the business community and relevant units. Photo: N. Linh.

According to Mr. Hoang Dinh Trung, the Deputy Director of Customs Reform and Modernization Board (under the General Department of Vietnam Customs), recently, Customs authorities have improved the quality of consultation on the basis of selection of topical issues, which largely affects the interests of the business community. Accordingly, Customs authorities and businesses should cooperate to implement new legal regulations, contributing to the improvement of policies and legislation.

One of contents in consultation which is appreciated by the business community and relevant units is how to amend and supplement policies of Customs legislation.

Another matter which has received a great deal of feedback from the business community is the simplification of tax procedures for raw materials and materials which are imported to manufacture exported goods, in order to facilitate and improve the business environment and promote the competitiveness of domestic enterprises. This problem derives from the fact that after 10 years of the implementation of the Law on export tax and import tax, it has shown many shortcomings which are not in accordance with international integration requirements, the process of implementation of international commitments, the process of institutional reform as well as the development of production and business, enhancing national competitiveness.

In order to overcome these shortcomings, the General Department of Vietnam Customs has made a plan to amend and supplement the Law on export tax and import tax. During the implementation of the plan, the General Department of Vietnam Customs has carried out public consultation between the business community and relevant units about the content of the Law on export tax and import tax which shall be amended and supplemented. The solution from consultation is that materials imported to produce exported goods which attract import tax and tax refund will enjoy tax exemption. Through analysis and assessment of the relevant factors, the functional authorities have agreed to apply that solution in the draft amending the Law on export tax and import tax to submit to the competent authorities for consideration and decision. The amendment of the Law on export tax and import tax shall be approved by the National Assembly on April 6, 2016, including tax exemption on raw materials and materials which are imported for production of exported goods.

The improvement of the enforcement capacity of Customs legislation on the declaration of exports and imports is also of concern to both Customs authorities and the business community. For example, Apparel Far Eastern Co. Ltd is a large company, specializing in processing and manufacturing garments, with about 5,000 workers. This company often implements import activities in the domestic market. In spite of being a large-scale company, it has a group of inexperienced and incompetent staff in charge of Customs procedures, which leads to many cancelations and modifications of declarations. Therefore, the Customs Branch of Vietnam-Singapore Industrial Park has actively requested consultation with Apparel Far Eastern Co. Ltd to seek solutions to overcome these shortcomings. As a large enterprise with high prestige in the community, not violating Customs regulations on purpose, this company has agreed to cooperate with Customs authorities in the process of consultation. Based on the consultation, the two sides agreed on many solutions and tasks to overcome these problems. Accordingly, Apparel Far Eastern Co. Ltd shall use qualified staff to implement Customs procedures, comply with regulations on opening declarations for trading with local businesses, coordinate to exchange information and sign a memorandum with Customs authorities. Besides, the Customs Branch of Vietnam-Singapore Industrial Park will build a mechanism for monitoring, and sign a memorandum of understanding with Customs authorities for the cooperation, exchange of information and the implementation of Customs procedures.

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During the implementation of Customs procedures, in the case where Customs officers and enterprises cannot agree on the analysis and classification of goods, the two sides will handle the problem through consultation. For example, Youl Chon Vina Plastic Joint Stock Company proposed to review the analysis results for virgin polypropylene plastic items. This company did not agree with the results of analysis and classification of goods from the Center of analysis and classification of exported and imported goods in HCM City. After receiving the proposal of the company, the Binh Duong Department of Customs implemented the consultation. Results of consultation showed that the two sides agreed to assign the Customs Branch of My Phuoc Industrial Park to guide the company to implement sampling for analysis and classification under current regulations. Specifically, Youl Chon Vina Plastic Joint Stock Company shall be responsible for sampling with sufficient quantities and the Customs Branch of My Phuoc Industrial Park shall notify the company how to apply codes and regulations properly. Through the results of consultation, the representatives from the two sides will assess and review the content in a timely fashion to coordinate with the Center of analysis and classification of exported and imported goods to handle problems of businesses.