Regulations on the management of temporarily imported goods for re-export are overlapping

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Import and export activities at Tan Thanh border gate. Photo: Huu Linh.

Need to clarify the responsibilities of relevant units

According to the Ministry of Finance, at the time of issuance of Circular 05/2014/ TT-BCT regulating the provisions on the specific business conditions, the list of temporarily imported goods for re-export and the selection of companies to be allowed to re-export goods via auxiliary border gates and border crossings are specified clearly, which creates favorable conditions for State agencies and individuals to carry out temporary import for re-export activities. However, Circular 05/2014 / TT-BCT also has many problems, causing difficulties in the management of Customs authorities.

Regarding the release of the congestion of temporarily imported goods for re-export at ports and border gates, under the provisions of Clause 2, Article 15 of Circular 05/2014/ TT-BCT, enterprises are responsible for “the release of frozen food at ports and border gates to their warehouses at the request of the Ministry of Industry and Trade in the event of congestion”. Accordingly, the Ministry of Industry and Trade has the jurisdiction to release frozen food at ports and border gates, in order to prevent congestion. However, according to regulations on the management of temporarily imported goods for re-export and Customs procedures, Customs officers are responsible for monitoring temporarily imported goods from production to outside the territory of Vietnam. Therefore, when the Ministry of Industry and Trade has the jurisdiction to release frozen food at ports and border gates in the event of congestion, Customs officers will not actively implement Customs supervision; especially in the case where the warehouses of enterprises are out of Customs areas (areas under the management of Customs officers).

Regarding the selection of import-export traders via auxiliary border gates and crossings, Clause 1, Article 5 of Decision No 52/2015 / QD-TTg regulates that Provincal People’s Committees coordinate with the Ministry of Industry and Trade to select the traders who meet the conditions prescribed by the Law. According to Clause 3, Article 5 of Circular 05/2014/TT-BCT, "Provincial People’s Committees at the border areas coordinate with the Ministry of Industry and Trade to choose enterprises for re-exporting goods via auxiliary border gates specified in Clause 2, Article 5 and publish the list of selected enterprises". Thus, in the case where temporary import for re-export enterprises which want to re-export goods via auxiliary border gates and crossings must implement two registration procedures with selection and announcement under the 2 legal documents above.

Regarding the border gates for re-export of goods, the Ministry of Finance said that, under the provisions of Article 5 of Circular 05/2014 / TT-BCT, auxiliary border gates and Customs clearance points for re-export of goods will be determined by Provincial People’s Committees after they exchange with the Ministry of Defence, the Ministry of Finance, the Ministry of Industry and Trade, and the Ministry of Agriculture and Rural Development. Accordingly, Provincial People’s Committees at the border areas issue Decisions in the name of auxiliary border gates and Customs clearance points for re-export of goods. However, there has been no announcement of an official list of auxiliary border gates and Customs clearance points for re-export of goods. Besides, several Provincial People’s Committees also limit the time and quantity of re-exported goods through border gates, leading to difficulties for Customs authorities and enterprises to carry out Customs procedures and business plans.

Ensure the operation of temporary import for re-export to be effective

In order to overcome the current problems related to the management of temporary import for re-export activities, the Ministry of Finance said that in order to improve Customs supervision on the congestion of temporarily imported goods for re-export at the ports and border gates, the Ministry of Industry and Trade should consider amending Clause 2, Article 15 of Circular 05/2014/TT-BCT towards assigning Customs authorities for directing and implementing the clearance of goods in the event of congestion at ports and border gates.

In order to reduce the overlap of regulations on the selection of import-export traders via auxiliary border gates and crossings between Circular 05/2014/TT-BCT and Decision 52/2015/QD-TTg, and ensure the implementation of reform administrative procedures to be effective facilitating business activities, the Ministry of Industry and Trade should remove the provisions on the selection of enterprises for e-export of goods through auxiliary border gates and Customs clearance points stipulated in Clause 3, Article 5 of Circular 05/2014/ TT-BCT.

Regarding the border gates for re-export of goods, the Ministry of Industry and Trade needs to systemize the auxiliary border gates and crossings and reduce loopholes in management; and request Provincial People’s Committees to issue specific provisions on the amount of time and the quantity of goods for re-export via auxiliary border gates and Customs clearance points. The Ministry of Finance also said that the other provisions on the amount of time and the quantity of re-exported goods should be limited because it can make the management of the relevant agencies and enterprises more complicated. In the case where auxiliary border gates and Customs clearance points do not meet the conditions for re-export of goods, they should be eliminated from the list of the auxiliary border gates and Customs clearance points for re-export of goods.

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In order to ensure the operation of temporary import for re-export to be effective throughout the territory of Vietnam, not divided by regions, the Ministry of Finance said that authorities should restrict the application of management policies on the basis of regions under Circular 05/2014/TT-BCT and make the temporary import for re-export activities more effective; research appropriate forms for the case where enterprises transport goods through Vietnam's territory to a third country in order to receive service charges and commission (transit, transshipment and import-export services).