Businesses anticipate new policies on customs procedures and supervision

Deputy Director General of Vietnam Customs Au Anh Tuan spoke at the workshop. Photo: T.H

Insights and feedback from businesses

A recent workshop hosted by the General Department of Vietnam Customs in Ho Chi Minh City attracted over 600 businesses with significant import-export volumes. The event focused on gathering feedback for the draft decree amending Decree No. 08/2015/ND-CP, and the draft circulars amending Circular No. 38/2015/TT-BTC and Circular No. 39/2018/TT-BTC, as well as a specialized session on the management of processing, export production, and export processing enterprises.

Businesses in attendance expressed keen interest in these draft policies, recognizing their potential to streamline operations and address long-standing issues. Many participants noted that the General Department of Vietnam Customs had already incorporated substantial feedback from previous consultations and sought further input to refine the drafts.

Tran Viet Huy, Head of the Customs and Trade Facilitation Department at the Vietnam Logistics Business Association (VLA), stated that the VLA business community highly values the transparency of customs policies. All new policies and amendments have been made publicly available for broad consultation by the Customs authorities. The current draft decrees and circulars under review have also undergone multiple rounds of consultation with businesses, organized by the General Department of Vietnam Customs.

During the two recent workshops, the VLA provided specific feedback on several key areas: making addition declaration as stipulated in Article 20 of Decree No. 08/2015/ND-CP; proposed additions to Article 52 of Decree No. 08, related to customs procedures for goods temporarily imported and re-export to supply foreign ships and aircraft docked at Vietnamese ports; clarifications in Article 56 regarding notifications for processing facilities. The association pointed out the absence of provisions addressing how to handle cases where export production enterprises fail to register their production facilities within the required timeframe. The VLA recommended that these scenarios be clearly defined in the draft amendment to Circular No. 38.

Other businesses offered detailed feedback on additional provisions in the draft decree and circulars, such as responsibilities of customs declarants, procedures for priority enterprises, post-clearance audits, supplemental declaration requirements.

During the specialized session on the management of processing, export production, and export processing enterprises, Deputy Director General Au Anh Tuan addressed 15 business inquiries, many of which focused on the proposed removal of Article 35 of Decree No. 08/2015/ND-CP. He provided detailed explanations on the legal basis, impact assessments, and proposed amendments to align with the nature of on-spot import-export activities under Article 35.

High expectations for reforms

Chairing the workshops, Deputy Director General Au Anh Tuan highlighted that processing, export production, and export processing enterprises account for approximately 60% of Vietnam’s total import-export turnover, underscoring their vital role in the economy and job creation.

Speaking on the sidelines of the event, Nguyen Vu Phu Khanh, Compliance Director at Techtronic Industries Vietnam Manufacturing, acknowledged that the drafts reflected significant improvements based on previous business feedback. However, he urged greater clarity on certain points to ensure smooth implementation and consistent interpretation in practice.

Pham Van Vinh of Pirosi Vietnam Audit Company emphasized the importance of maintaining on-spot import-export mechanisms, which have been in place for decades. “If changes are unavoidable, businesses need transitional support to adapt,” he suggested. The General Department of Vietnam Customs has proposed alternatives to Article 35 and assured businesses of its commitment to facilitating operations.

Deputy Director General Au Anh Tuan assured participants that all contributions would be carefully reviewed and integrated into the final drafts, which are expected to be submitted to the Government for approval by late 2024 or early 2025.

As of October 30, 2024, the General Department of Vietnam Customs had received 123 written submissions from organizations, agencies, and individuals regarding the draft decree. Key areas of focus included customs procedures for on-spot import-export goods; regulations related to processing, export production, and export processing enterprises; re-importation procedures for exported goods; responsibilities of customs declarants; post-clearance audit procedures.