The Customs to remove obstacles actively for enterprises

A Dong Nai Customs official was inspecting the export-import goods. Picture: Nguyen Hien.

The Vietnam B$ Limited Company reflected that Circular 38/2015/TT-BTC had not defined clearly whether the processing enterprises taking processing for another export processing enterprises would change a part of the contract to process for the foreign enterprises.

Regarding the above issues, according to the General Department of Customs, the provisions of Point b, Clause 2, Article 32 of the Government's Decree No. 187/2013/ND-CP dated November 20th, 2013 on the rights and obligations of the processor, the processor could hire another processor to re-process. Therefore, in cases that the processing enterprises hire foreign enterprises to re-process, the customs procedures comply with the provisions in Section 3, Chapter III of Circular No. 38/2015/TT-BTC of the Ministry of Finance.

A number of enterprises that are conducting import-export activities through the Dong Nai province stated that Clause 3, Article 57 of the Ministry of Finance's Circular No. 38/2015/TT-BTC stipulated the inspection for the units of the processing and production of export goods; Processing and production capacity including: the inspection of warehouse, machinery, equipment; Verifying the documents to prove the legal using right of warehouses, production ground, yards for raw materials, materials, machinery and equipment;

Also in accordance with the guidance at No. 11, Section IV of the Appendix to Official Letter No. 11567/TCHQ-TXNK dated December 8th, 2016 of the General Department of Customs on the implementation of the Law on Export and Import Tax, Decree No. 134 /2016/ND-CP: “…if the enterprise does not have production facilities, does not organize production and rents other production units or enterprises having production facilities, but there are not enough documents to prove the legal using right for the production ground, the factory and the enterprise will not be exempted and refund the tax”

Many enterprises said that the inspection of this content was not necessary because Decree 134/2016/ND-CP only required the enterprises to “have the production establishments of export goods on the territory of Vietnam, have the using right for the machinery and equipment at the production establishments…”, there was no requirement to have the documents proving the legal using right of factory, the production establishment. On the other hand, such requirements were extremely difficult for the small and medium enterprises in Vietnam which did not have enough resources to build or lease the factories in the industrial parks, and had to build the factories outside the industrial park, it led to not obtaining the documents proving the right to use the workshop and production establishments due to the problems in planning, construction permit...

The enterprises explained there had not currently been the uniform guidelines on which the documents were considered as proof of the legal using right of the factories and the production establishments for the enterprises to implement uniformly. In the long run, the proposal of Circular No. 38/2015/TT-BTC was amended in line with only inspection for the enterprises which had the production facilities for export goods in the territory of Vietnam with the ownership or using rights for machinery, equipment in production establishments, had the workers, production activities; It is not necessary to check the documents proving the legal using right of the factory or production ground.

According to the General Department of Customs, for the comments of enterprises, the unit had issued Official Letter No. 7513/ TCHQ-TXNK dated November 15th, 2017 guiding the Dong Nai Customs Department. Accordingly, for problems in inspection of production facilities: the General Department of Customs had the Official Letter No. 6435/TCHQ-TXNK dated October 2nd, 2017 guiding in the direction:

Pursuant to the provisions of Article 10, Article 12, Article 36 of Decree No. 134/2016/ND-CP; Clause 1 of Article 37 and Clause 3, Article 39 of Decree No. 08/2015/ND-CP; Clause 3, Article 57 of Circular No. 38/2015/TT-BTC and guided in the Finance Ministry's Official Dispatch No. 6751/BTC-TCHQ of May 24th, 2017, one of the basics for tax exemption or refund is that the organizations or individuals importing the goods for the purpose of processing or producing export goods with an establishment of the goods processing and production in Vietnamese territory, these organizations or individuals have the legal using right; One of the contents of the Customs office on checking the processing and producing establishments of the export goods, the processing and production capacity is that the inspection of documents proving the legal using right of the factory, the production ground to determine the tax preferences for taxpayers in the course of export goods production and trading.

Therefore, if the taxpayers fail to meet the provisions of Articles 10, 12 and 36 of Decree No. 134/2016/ND-CP, Decree No. 08/2015/ND-CP, Circular No. 38/2015/TT-BTC, they will be not entitled to the tax exemption or refund under the regulations.

For the proposal stipulating clearly which documents are considered as proof of the legal using right of warehouses and production ground: The General Department of Customs record to make the amendments and supplements to Circular No. 38/2015/TT-BTC.

Many enterprises said that when the account of enterprises lost their passwords, their digital signature, it took a lot of time to send the records and documents to recover, re-provide the account information from the General Department of Customs. So that, the enterprises proposed a mechanism to re-issue passwords without the need to send documents, and records.

In this regard, the General Department of Customs said that the account information and the digital signatures were very important information because they affected directly the customs declaration of enterprises. Therefore, to protect the information for the enterprises, it was necessary to implemented strictly.

The Hai Duong Tax Department reflected that the Customs office (specifically the post-customs clearance audit agency) applied the foreign codes and barcodes for the processing enterprises mechanically and inefficiently, the enterprises were charged with this point, while almost 100% of the processing enterprises could not be issued the code and barcode aboard.

According to the General Department of Customs, the application of the Customs for foreign codes and barcodes of the processing enterprises as reflected was inappropriate. However, it was necessary to clarify the reflection of the enterprises on this question: accordingly, the post-customs clearance audit agency requested how to apply. To determine whether this issue was true or not, whether this issue related to the Customs office, the General Department of Customs requested the Hai Duong Tax Department to send a detailed reply to give the answer in detail.