Businesses in Dong Nai interested in program of voluntary compliance with customs laws

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Deputy Director of Dong Nai Customs Department Pham Quoc Hung discusses with businesses at the conference. Photo: N.H

Speaking at the conference, Deputy Director of Dong Nai Customs Department Pham Quoc Hung said that developing Customs-business partnerships is an important task in the annual key work program of the Customs sector and Dong Nai Customs Department. In 2023, Dong Nai Customs Department developed a specific plan to create all conditions for the business community and relevant parties to grasp state policies and laws in the field of customs and tax fields; and maintained effective meetings and dialogues with businesses and relevant parties to listen to difficulties, problems, and recommendations related to import and export activities to provide the fastest and most effective supports.

Dong Nai Customs Department has always proactively researched new policies to guide businesses; reports and proposed to competent authorities to solve inadequacies in mechanisms and policies to meet management practices. In addition, the unit has also worked with business associations and relevant parties to organize working sessions, dialogues, and meetings with businesses to strengthen law enforcement supervision between Customs authorities and businesses; and enhance the index of business satisfaction with Customs agencies in the management area.

Deputy Director Nguyen Quoc Hung said that last June, Dong Nai Customs Department organized the first Customs - Business Conference in 2023 with the participation of nearly 200 delegates from more than 100 FDI enterprises dealing with import and export procedures in the area. Accordingly, the customs answered 17 questions before the conference and three questions at the conference and two questions after the conference.

In addition, six customs branches under Dong Nai Customs Department have also organized quarterly online conferences to disseminate new legal documents and policies, and promptly listen to opinions from businesses and related parties on difficulties, problems, and recommendations related to import and export activities.

Businesses attend the conference through 114 online video conferencing points: N.H

At the conference, Dong Nai Customs Department answered 14 questions from nine businesses related to the program to support businesses to voluntarily comply with customs laws, import and export taxes, quality inspection, and procedures for factory transfer, and management of materials in processing contracts...

Schaeffler Company Limited expressed their interest in the program to support businesses in voluntarily complying with Customs laws and asked about the criteria and ways to participate in the program.

Answering this question from the company, Mr. Le Tuan Hai, Head of the Risk Management Division, Dong Nai Customs Department said that in 2022, the General Department of Customs issued Decision 1399/QD-TCHQ promulgating a pilot program to encourage businesses to voluntarily comply with Customs laws. After one year of implementation, the General Department of Customs is currently taking steps to expand participants to improve compliance levels. Accordingly, the company can proactively register with the Customs agency to participate in the program.

Responding to Wei Tai Leather Company's question about regulations on domestic factory transfer, Mr. Phan Minh Thuan, Head of Customs Management Supervision Division said, the transfer of land lease rights and assets attached to land is not subject to the management of the Customs authority. Accordingly, the company is requested to contact the licensing unit the Industrial Parks Management Board of Dong Nai province for guidance.

For goods imported to create fixed assets for transfer according to the list of preferential import tax exemptions, the transferee has to declare a change of use purpose with the Customs authority; and carry out procedures for notifying the tax-free list (in cases where the tax-free list must be notified) and the transfer contract must have an agreement on the price of the transferred goods excluding import tax.

For transferred raw materials and semi-finished products that were imported for export production, businesses must open a new declaration and declare and pay tax on the imported raw materials and accessories for production import of which purpose of use has changed.

For spare parts and raw materials in inventory that have been imported according to the type of business with full tax payment, they are allowed to be transferred like domestic sales contracts and are not subject to customs declaration.

Another business raised a question that the company signed two processing contracts with the same customer. Can the company use the imported materials from this processing contract as goods for the other?

Mr. Thuan said that according to the provisions of Circular 38/2015/TT-BTC of the Ministry of Finance, the company is only allowed to use imported materials from processing contract 1 for processing contract 2 (as specified by the order party) after completing customs procedures for the raw material transfer.

Another enterprise said, the company imports industrial chemicals, has a CAS registration number (a unique identification number for all chemicals) and a Material Safety Data Sheet (MSDS) for production, according to the provisions of Decree No. 113/2017/ND-CP dated October 9, 2017 and Decree 57/2022/ND-CP dated August 25, 2022. Accordingly, the company raised the question of whether it is necessary to present a certificate of analysis (COA) when completing customs procedures.

Mr. Thuan said, that because chemicals are special goods, detailed information is needed to determine their nature and apply commodity policies. The company needs to base on the chemical name in English, the HS code, the CAS code on the MSDS, and the chemical formula of the goods to compare information in the Appendices attached to Decree 113/2017/ND-CP dated October 9, 2017 of the Government for implementation.

Regarding determining goods that must declare chemicals used for production import, in Decree 113/2017/ND-CP dated October 9, 2017 "Detailed regulations and instructions for implementing a number of articles of the law on chemicals", Appendix VI Form No. 05 "Declaration of imported chemicals on the National Single Window Portal" must attach with " MSDS file" at criterion No. 12.

Regarding declaring the name of goods and description of goods on the declaration, according to Appendix II of Circular No. 39/2018/TT-BTC dated April 20, 2018, of the Ministry of Finance, the company must attach MSDS/COA to the dossier according to regulations when analyzing and classifying chemicals.

Thus, when declaring imported chemicals, the company must present technical documents and chemical safety documents according to the above regulations.