Solutions for settlement reports, excess supplies and bonded warehouses

	Hai Phong: Collecting nearly 550 billion VND of temporary import and re-export goods
	Charging for late payment is not the form of administrative sanction
	2 more bonded warehouses in Hai Phong

Operations at EIDAI Co., Ltd. (Dong Van, Ha Nam). Photo: Hong Nu.

The Hanoi Branch Office of Industrial Park asked that from January 2016 to date, it had not issued import declarations for export, so in 2016, did it have to make a settlement report? With the declaration of import and export unchanged before 31st December 2016, is any penalty for administrative violations? For the processing declaration, when the processing contract ends, does the enterprise have to notify the Customs office?

For the enquiry of the enterprise, the General Department of Vietnam Customs said that according to the guidance of the Ministry of Finance's Official Letter No. 16120 / BTC-TCHQ and Point 1 of the General Department of Vietnam Customs’s Official Letter 1501 / TCHQ-GSQL, for enterprises importing raw materials for the production of exported goods (E31, already paid import tax), they shall not be required to make final settlement reports. The Customs office shall manage exported and imported raw materials on the basis of enterprises’dossiers of a tax refund.

Provisions in Decree 127/2013 / ND-CP (amended and supplemented in Decree No. 45/2016 / ND-CP of 26th May 2016) on import declarations for unchanged exports before 31st December 2016, Customs officers shall not consider administrative violations for this case.

Article 64 of the Ministry of Finance’s Circular 38/2015 / TT-BTC stipulated that least 15 days from the date of expiry of the processing contract, the organization or individual shall notify in writing to the Customs Branches where the procedures are implemented for excess raw materials and supplies, machinery and equipment according to form 17 / XL-HDGC / GSQL, therefore, the General Department of Vietnam Customs requests enterprises to comply with the regulations.

Kohsei Multipack Vietnam Co., Ltd asked that accounting report data is the number of raw materials imported for export; the source of raw materials imported of the business and the source of raw materials in the country, so which methods should the enterprises report to the Customs office?

In this regard, according to the General Department of Vietnam Customs, for the settlement report on the type of production for export, enterprises are requested to comply with the provisions in Point b, c, Clause 3, Article 60 of the Ministry of Finance’s Circular No. 38/2015 / TT-BTC; guidance in form 15 / BCQT-NVL/GSQL, Annex V issued with Circular 38/2015 / TT-BTC and Point 2.2, Section 2 of the General Department of Customs’s Official Letter 1501 / TCHQ-GSQL. Businesses shall synthesise the data of raw materials, finished products from the source of imports, so based on the source of raw materials constituting products and the situation of using raw materials for export, enterprises shall report under the Law.

Sai Gon Port Services Joint Stock Company said that in 2009, enterprises operated in warehouses according to the General Department of Vietnam Customs’s Decision No. 339 / QD-TCHQ. At present, the warehouse system of the enterprise has an overall area of 26,127.7 m2, separated from the outside by a protective fence, and 1 bonded warehouse of 2,000 m2 (bonded warehouse with inside and outside surveillance cameras). The HCM City Customs Department has requested enterprises to expand the bonded warehouse up to 5,000 m2 in accordance with the new regulations. Therefore, the enterprise asked the Customs office to explain and have specific guidance for enterprises on the regulation on "bonded warehouse with a minimum area of 5,000 m2 (including warehouses, yards and auxiliary facilities) and storage area must have an area of 1,000 m2 or more. Can the enterprise meet the requirements of Decree 68/2016 / ND-CP and be allowed to continue to trade bonded warehouses in a flexible and effective way?

Regarding this issue, the General Department of Vietnam Customs has sent Official Letter No. 47 / CV-SPTS of 6th October 2016 (stamp on the letter of 10th October 2016) explaining reason and request for recognising the conditions on bonded warehouses according to Decree 68/2016 / ND-CP. Accordingly, enterprises have been issued the General Department of Customs’s Decision No. 339 / QĐ-TCHQ of 23rd February 2009 for bonded warehouse of 2,000 m². There is no basis for a business to said that the bonded warehouse had an area of 26,127.7 m². As a result, the General Department of Vietnam Customs has issued Official Letter No. 1385 / GSQL -TH of 17th October 2016 guiding enterprises on conditions and procedures for expansion of bonded warehouses as stipulated in Articles 10, 12 and 13 of Decree 68 / 2016 / ND-CP and requested enterprises to submit dossiers as prescribed in Article 11 of Decree No. 68/2016 / ND-CP to the General Department of Vietnam Customs for consideration and settlement according to regulations. However, till now, the General Department of Vietnam Customs has not received a dossier requesting the expansion of bonded warehouses of the enterprise.

Recognising for deploying in the coming time for bonded warehouse management, the General Department of Vietnam Customs emphasised that this was also a component in the overall design of information technology application in the Customs sector.

Saigon Port Trading and Service Joint Stock Company said that in order for the enterprises to be efficient with the flow of imports and exports convenient, the goods must be cleared quickly, contributing to the promotion of the distribution. The Ministry of Finance should consider removing the sanction of not allowing goods with a tax rate of over 10% in bonded warehouses because this has greatly affected the efficiency of the exploitation of the bonded warehouses of enterprises.

Bonded warehouses in Cao Bang operate smoothly VCN- All bonded warehouses operating in Cao Bang are in good compliance with the Law and Customs ...

On this recommendation of the enterprise, the General Department of Vietnam Customs has requested enterprises to comply with the guidance in Official Letter No. 8079 /TCHQ-GSQL of 4th September 2015. Accordingly, in the case where bonded warehouse does not meet the minimum area prescribed at Point c, Clause 1, Article 82 of Decree No. 08/2015 / ND-CP, it shall not be entitled to store imported and export goods subject to the tax rate of 10% or more.