Business denounces Customs: Quang Ninh Customs carried out procedures in accordance with regulations

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Customs operation At Cam Pha Seaport Customs Branch. Photo: Q.H

The Company did not submit original C/O so that it was not permitted Customs clearance

Talking with the Customs Newspaper’s reporter, the representative of Quang Ninh Customs Department said that on 30 November 2018, the Department reported to Quang Ninh Provincial Party Committee, Quang Ninh Provincial People's Committee, and General Department of Vietnam Customs about the implementation of coal import procedures of Hong Quang Import Export Company Limited (referred to as Hong Quang Company).

Specifically, on 27 November 2018, Quang Ninh Customs received an official dispatch that Hong Quang Import-Export Company Limited sent to the Quang Ninh Provincial People's Committee, the Office of the Provincial Party Committee and the General Department of Vietnam Customs, on the delay in Customs clearance for the Ocean Conqueror vessel at Cam Pha Seaport Customs Branch (Quang Ninh Customs Department), with the implementation of Customs procedures for coal item transported on the vessel under the declaration No. 102349698840/A11 dated 23 November, 2018.

According to Hong Quang Company’s proposal, this shipment under the declaration No. 102349698840/A11 dated 23 November, 2018, had paid sufficient import duty, VAT and environmental tax, but it was not implemented Customs clearance due to the company did not submit the original C/O of the shipment.

For this problem, Cam Pha Seaport Customs Branch said that on 24 November 2018, after receiving e-Customs dossier due to the lack of prescribed documents, the branch requested the company to submit the original C/O on the system.

On 26 November 2018, the Hong Quang Company’s representative submitted C/O copies at Customs Branch and proposed to submit the original C/O later to carry out Customs procedures and release goods.

Because the Company did not submit the original C/O as prescribed, the Branch clearly explained and gave instructions for current provisions, and requested the company to submit the original C/O at the time of carrying out Customs procedures as a basis for the goods release and clearance.

At 4pm on 27 November 2018, the company’s representative submitted the original re-export Certificate No. 1810109 dated 23 November 2018, confirming the shipment originated from Indonesia. The Branch received, inspected and released the company’s goods at 16h 55 minutes on the same day (the time for implementation of Customs procedures at the branch was recorded on the system).

As per the provisions of Circular 38 of the Ministry of Finance, imported coal is required to be submitted with an original C/O at the time of Customs clearance. If the declarant fails to submit C/O as prescribed, the Customs clearance shall not be allowed.

The reference to provisions in Circular 45/2007/TT-BTC and Clause 2 Article 5 of Circular 38 in submitting C/O for coal item by Hong Quang Company is inaccurate.

Because, Circular 45 was invalid from 1 April 2015. On the other hand, Clause 2 Article 5 of Circular 38 only applies to goods which have not yet submitted origin documents of goods at the customs clearance time while the coal item must submit the original C/O.

Thus, the original C/O of the Hong Quang Company’s shipment was not submitted at the Customs clearance time, it is not eligible for Customs clearance and release.

In addition, for imported coal, the submission of C/O is a condition for customs clearance under Resolution 2371 of the United Nations Security Council on strengthening the origin management for imported coal (the Ministry of Finance has instructed in Official Letter No. 15203 dated 9 November 2017).

... not entitled to tariff preferences

In addition to this shipment, Hong Quang Company also petitioned that on 1 November 2018, the company registered an import declaration No. 10229758413/A11, for coal shipped on Germ Success Vessel, and submitted all documents according to regulations. However, Cam Pha Seaport Customs Branch did not allow the company to enjoy tax incentives because the branch did not accept C/O for the shipment of temporally imported for re-export via China. The company was forced to pay tax for customs clearance even though it submitted the original C/O EAV form. On 14 November 2018, Hong Quang Company sent an official letter asking for a tax refund but it was not accepted.

Regarding this case, Quang Ninh Customs Department said that at the time of receiving the documents for customs clearance, the company did not present the original C/O form EAV, but it only presented the C/O No. MERZJG1800112-01-W dated 30 October 2018 (it was not a C/O EAV form).

The Customs authority accepted the normal submission of C/O by the Company at the Customs procedure time for tax payment and clearance in accordance with regulations.

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According to the provisions of Article 16 of Circular 21 of the Ministry of Industry and Trade, and Point b of Article 7 of Circular 38 of the Ministry of Finance, Hong Quang Company must submit C/O EAV form at the Customs clearance time.

Therefore, at the customs clearance time, Hong Quang Company implemented late submission of C/O form EAV, so it did not enjoy preferential tariffs under the Free Trade Agreement between Vietnam and the Eurasian Economic Union.