Codifying Istanbul Convention on temporary admission of goods

VCN- The Ministry of Finance has drafted a Decree guiding the Istanbul Convention on the temporary admission of goods to implement Customs modernization towards applying international customs standards, contributing to reducing the time and costs to facilitate trade and develop social economy.
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codifying istabul convention on temporary admission of goods
Customs operation at Noi Bai Airport Customs Branch. Photo: N.L

The Istanbul Convention on temporary admission of goods is summarized and restructured by the World Customs Organizations from the separate conventions existing prior to 1990 on the use of ATA carnets for temporary admission of each goods. The Istanbul Convention was signed on 26th June 1990 and took effect on 27th November 1993.

The Convention provides the application of standard model of documents for temporary admission as international customs documents accompanying the guarantee to facilitate the temporary admission procedures and help management agencies to closely control temporarily admitted goods.

On 2nd January 2018, the Government issued Resolution 02/ND-CP on joining the Istanbul Convention on temporary admission of goods and assigned the Ministry of Finance to chair and coordinate with relevant agencies to comply with the Istanbul Convention, and develop the draft Decree guiding the implementation of the Istanbul Convention to submit the Government.

In the trend of increasing export and trade exchange with other countries, the Government has made efforts to implement administrative reform and Customs modernization towards applying international standards, contributing to reducing time and cost for trade facilitation and socio-economic development. The application of temporary admission mechanism under the terms of the Istanbul Convention are considered as a high-level service for temporary imports for re-exports, and temporary exports for re-imports, contributing to accelerating trade promotion, and an introduction and advertisement of Vietnam’s products and goods to the world and vice versa.

The goal of developing a decree is to comply with international commitments and establish a legal basis for the deployment of a temporary admission mechanism for temporarily imported goods for re-export and temporarily exported goods for re-import to use at exhibitions, fairs, conferences or similar events under the Istanbul Convention.

The simplification procedure and application of Customs advanced operational measures have met requirements on national defense and security and provided the best facilitation for a number of commercial activities in line with the development trend of Vietnam's trade exchange for deeper integration into the international market, and requirements of the domestic and foreign business community for ensuring the constitutionality, legality, uniformity of the legal system, and for meeting the requirements of integration.

Over the past time, the General Department of Vietnam Customs has developed and completed the draft Decree and has been consulted from the Ministry of Finance’s units and ministries, sectors and municipal and provincial People's Committees. At the same time, it has also coordinated with VCCI to directly collect opinions from a number of customs departments in provinces, cities and enterprises.

Currently, the General Department of Vietnam Customs has reviewed and completed the draft decree before submitting it to the Ministry of Finance for submission to the Government for promulgation.

The draft Decree specifies the scope of adjustment, applied subject, the rights and obligations of the owner of goods temporarily admitted, the transporter of goods temporarily admitted and rights and obligations of the guarantor.

Stipulating the granting, managing, using and recovering of ATA carnet, specifying the procedures for granting ATA carnet, the agency for issuing, managing, using, destroying and recovering the ATA carnet.

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It stipulates Customs procedures, Customs inspection and supervision such as customs clearance sites; rights and responsibilities of Customs declarants in general as well as the rights and responsibilities of Customs declarants in carrying out procedures.

Also, the draft decree provides customs tax guarantees; procedures for tax exemption, tax reduction, tax refund the same as temporarily imported goods for re-export, and temporarily exported goods for re-import with the limited time in accordance with the current provisions of the Tax law.

By Ngoc Linh/Ngoc Loan

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