Tighten regulations on temporary import for re-export goods

	Handling violations related to temporary import and re-export of cars
	Hai Phong: Collecting nearly 550 billion VND of temporary import and re-export goods
	Answering the contents on the implementation import and export duties

Customs inspection of goods at Tà Lùng customs Branch (Cao Bằng). Photo: T. Bình

Potential risks

Soon after the direction of the Deputy Prime Minister Truong Hoa Binh, the Ministry of Finance has review and evaluated the State administration and anti-smuggling campaign in this area. According to the Finance Ministry, in recent years, there have been many positive changes in management policies for temporarily imported for export goods. In particular, the issue of Law, the Circular by the Ministry of Finance guidelines and the Ministry of Industry and Trade has promptly redressed and remedied shortcomings in the operation of re-import and re-export of goods as follows:

Shorten the time storing commodities subjected to temporary import for re- export trading in the territory of Vietnam in order to limit the potential risks; detail the list of goods banned from temporary import for re- export; goods of this kind must be granted licenses from competent authorities to transparent management policy of this type; specify Customs bonded warehouse to place the goods; not allow to split containers during transportation of goods from the gate to the areas supervised by Customs authorities, and gate points for re- export and Customs clearance points.

At the same time, Customs procedures as well as the monitoring and management of businesses and enterprises implementing such activities are also controlled via electronic devices even for liquidity management.

In fact, through inspection, supervision and control of temporary import of goods for re-export, Customs Authority has unmasked many violating businesses in some ports and land border gates; for example: import goods which are overdue for Customs procedures at the port of Hải Phòng and Quảng Ninh; 2,796 imported containers of fake Customs seals overdue Customs procedures at the port of Haiphong which trade names shown on the manifest are tires, used tires, scrap rubber. As a matter of fact, many loopholes of the policy have been detected so competent authorities could take necessary measures to deal with the backlog of goods at the seaports.

As a result, Customs authorities have discovered thousands of overdue Customs declarations of temporary import for re-export goods without liquidity; prosecuted many criminal cases of illegal transportation of goods across the border; inspected and handled thousands of expired cargo containers. Many professional smuggling lines and extremely serious violations related to business activities goods of this category have been detected and handled through specialized investigations.

Heavier penalty proposals

To improve the effectiveness of state management of Customs agencies and anti- smuggling operations, the Ministry of Finance has proposed to the Prime Minister several solutions to enhance the effectiveness of governance justice, and prevent the abuse of regulations on temporary import for re-export for commercial fraud and tax evasion.

As proposed by the Finance Ministry, it is high time to amend and supplement regulations guiding the implementation of the Commercial Law towards assuring the management and implementation of temporary import for re-export business activities in accordance to the nature and international rules, eliminating loopholes in the management policy. At the same time, the decree on sanctions must be amended and supplemented toward demanding heavier penalties for violations of regulations on business management of these items such as: domestic consumption of temporary import for re- export without permission from authorities; slow liquidation of Customs declarations; re-export of goods cross the border in contravention of regulations; false declaration of names and numbers of commodities.

Besides, the Ministry of Industry and Trade should promptly supervise, and guide the implementation of Circular 05/2014 / TT-BCT regulating temporary import for re-export, transfer of goods in order to put this type of business in accordance with its nature.

Severely handling cases of temporary import for re-export for smuggling VCN- The National Steering Committee 389, Ministries, Departments and local authorities should focus on updating the situation ...

Moreover, it is necessary to regulate appropriate business types for such companies which only conduct border-gate transfer of goods via Vietnam's territory to a third country for fee or commissions. At the same time, changes in border trade policies must be updated constantly in order to to make recommendations for domestic businesses to carry out timely adjustments and avoid jams goods at the gate and preventing seepage into the domestic market which causes damage to the local economy. On the other hand, the 389 National Steering Committee also directs the functional forces to strengthen collaboration through peaking campaigns to detect and handle crimes in this area. More importantly, the anti-smuggling work must be associated with State agencies with the purpose of breaking up gangs and criminal organisations operating at the ports, routes, and land border areas.