The General Department of Vietnam Customs removes obstacles for enterprises

	Dialogue to remove problems for key petroleum traders
	Businesses raise problems in specialized inspection
	Listening to comments from enterprises on tax and customs policies

The business dialogue conference on Tax and Customs policies and administrative procedures in 2018 held in Ha Noi. Photo: Q.H

Remove difficulties related to tax policy

The Indochina Hoi An Course Joint Stock Company (MONTGOMERIE) said that the Company is importing a consignment of machinery and equipment under the regime of duty-free investment import for business. After a few years of operation, some machines were damaged and the company bought spare parts to fix them. After a period of use, some parts cannot be replaced, so the damaged machines were dissembled to get usable spare parts to replace inother machines. Thus, there will be a situation of failure to find the origin of machines. Under the regulations on transfer of purpose use, only the solution of selling scrap and destruction is described. However, according to the current situation, the company did not sell or destroy the damaged machines. Thus, the company is waiting for guidance from Customs inthis case.

According to the General Department of Vietnam Customs, Customs procedures for import of duty-free goods serving project execution are specified in Article 85 of Circular 38/2015/TT-BTC of the Ministry of Finance. If the company liquidates, changes the purpose of use of machinery and equipment that are no use value or damaged, the company shall comply with Clause 3 Article 85 of Circular 38/2015/TT-BTC.

Dalat Hasfarm Company asked Customs to instruct regulations on greenhouse import tax and the insect trap import permit.

The General Department of Vietnam Customs said the company did not describe in detail the item of “insect trap”, there is no basis for specific answers. However, if the insect trap is chemical, insecticidal preparation in the list of insecticidal and germicidal chemicals and preparations for household and medical use which are under the management of the Ministry of Health issued in Circular 09/2018/TT-BYT dated April 27, 2018 of the Ministry of Health; Management policies for imported goods comply with the Government's Decree No. 91/2016/ ND-CP of July 1, 2016.

The Lap Phuc high-tech mold Company asked Customs to allow the application of tax rate for spare parts lower than the import tax on complete products for mould products.

The General Department of Vietnam Customs said that “import duties are regressive from finished products to raw materials” which is one of principles for issuing the tariff schedule and tax rate in accordance with Article 10 of the Law on Import and Export Duty Law. However, the company did not describe in detail that the imported spare parts used for moulds or finished moulds and their code and tax rate. So the General Department of Vietnam Customs has no basis to consider.

The General Department of Vietnam Customs said the Ministry of Finance is assigned by the Government to develop a decree amending Decree 125/ 2017/ND-CP and Decree 122/2016/ND-CP. The draft revised decree is being reported by the Ministry of Finance to the Ministry of Justice for completion and submission to the Government. Previously, the Ministry of Finance consulted with ministries, provincial and municipal People's Committees and published on the website to consult widely from organisations and the business community .

The General Department of Vietnam Customs requested the company to provide names of imported spare parts for moulds or finished moulds and their codes according to Vietnam's List of Imports and Exports for the Ministry of Finance to consider when amending the preferential import tariff schedule in the future.

The Dialogue Conference between Ho Chi Minh City Customs Department with British Consulate and British Business Association held on September 26, 2019.

Businesses still face problems for processing contracts

Vard Vung Tau Co.,Ltd proposed the Ministry of Finance consider abolishing the risk assessment for imported steel plates for processing contracts or applying partial inspection for steel import declaration to release and means of transport after each inspection.

For this proposal, the General Department of Vietnam Customs said Customs applied risk management in customs inspection in accordance with Clause 2, Article 16 and Article 17 of the Customs Law 2014. The risk assessment and inspection channel classification for import and export goods of the company complies with Articles 13, 14 and 15 of the Government’s Decree No.08/2015/ND-CP and Article 8 of Circular 38/2015/TT-BTC of the Ministry of Finance. Accordingly, inspection channel classification for goods is implemented according to requirements in each period. Customs regularly assesses the inspection channel classification for goods to apply appropriate inspection measures.

Regarding physical inspection of goods, the General Department of Vietnam Customs said Point a, Point b, Clause 1, Article 21 of the Law on Customs specifies that when carrying out customs procedures, the Customs declarant shall declare and submit a customs declaration.

For import and export goods subject to the physical inspection by Customs, which are not inland transport vehicles.For goods subject to the physical inspection, only after the customs declarant takes the goods to inspection site, Customs must inspect and complete the inspection in a specified period. Therefore, for large shipments and goods in multiple transports to gather at customs checkpoints, after customs declarants fulfill their obligations on taking goods to customs checkpoints, the customs agency must conduct the inspection and finish within the time described.

Vard Vung Tau Co., Ltd.proposed the Government, ministries and sectors allow the exemption of sub-licenses for goods imported for processing, which will create an open business environment and increase competitiveness for Vietnamese enterprises in the international market.

Regarding the management of goods processing operations for foreign traders, According to the General Department of Vietnam Customs, the provisions of Article 51 of the Law on Foreign Trade Management and Article 38 of Decree 69/2018/ ND-CP of the Government specifythe management of goods processing operations for foreign traders. Accordingly, for import-export goods under license, traders can only sign processing contract with foreign traders after the Ministry of Industry and Trade grantspermits. The proposal for non-application of permits for import and export goods under permits is not consistent with these provisions.

Regarding licenses of each specific commodity, according to the General Department of Vietnam Customs, Article 51 of the Law on Foreign Trade Management stipulates a trader may process legal products of foreign traders, except for products included in the list of prohibited or suspended exports and imports.If imports and exports require licenses, the trader will only sign the processing contract after being licensed by the Minister of Industry and Trade in accordance with procedures prescribed by the Government. The licensing dossier is specified in Clause 4, Article 38 of Decree 69/2018/ND-CP of the Government. The General Department of Vietnam Customs requested the company base on these provisions for implementation. If facing problems, the company shall contact the Ministry of Industry and Trade

Chau Giang Hai Phong Co., Ltd asked Customs to review regulations on false declaration of goods material.

According to the General Department of Vietnam Customs, Clause 1, Article 30 of the Law on Tax Administration provides “1. Taxpayers must accurately, truthfully and fully fill contents in tax declaration as prescribed by the Ministry of Finance and submit documents in the tax dossier to the tax administration authority”.

Point c, Clause 2, Article 18 of the Customs Law stipulates the obligations of the customs declarant “To be held responsible before the law for the truthfulness of declared contents and submitted or produced documents, for the information consistency between the dossiers kept by enterprises and dossiers kept by customs”.

The General Department of Vietnam Customs said “taxpayers and customs declarants must accurately and truthfully fill contents in the tax declaration and take take responsibility before lawfor the truthfulness of declared contents.”