Continuing proposals to solve the difficulties of international transshipment

Operation in Cat Lai port (photo:Thu Hoa)

The difficulties of Customs procedures for transshipped cargos have risen from the regulations of Article 44 Government’s Decree 08/2015/ND-CP: “Transshipped cargos are cargos moving from an overseas country to an intermediate destination and then transited directly from this intermediate destination to another overseas country; those which are not permitted to move throughout the territory of Vietnam for the purpose of export via a different border gate, unless otherwise permitted by international agreements to which Vietnam is a signatory or at the Prime Minister’s decision. Transshipped cargos which are whole or part shipments moving in a port shall be shipped to overseas countries”.

According to the SaiGon Newport Corporation, international transshipped cargos are not permitted to move throughout the territory of Vietnam for the purpose of export, unless otherwise permitted by international agreements to which Vietnam is a signatory or the Prime Minister’s decision, this has impacted on the business of shipping agencies and the competitiveness of Vietnam’s international seaports.

Currently, international container ships can be received and uploaded at over 20 seaports nationwide. However, international container ships usually gather at 3 major port: Ho Chi Minh City, Cai Mep, and Hai Phong port group.

Due to the specific geographical location and natural conditions of international maritime channels, Ho Chi Minh City and Cai Mep Port were selected by shipping agencies as the international transit ports in the region.

In recent years, in Cai Mep-Thi Vai Port cargos for transport have grown by 15 to 20%/year, the number of ships docked increasing over 50%/year from 2015, this is the first time Cai Mep-Thi Vai port’s international transshipment has reached 150.000 TEU. Despite the high growth rate. the number of container through Cai Mep-Thi Vai reached only 20% of capacity. Meanwhile, in Ho Chi Minh City at risk of overloading. Cat Lai Port accounts for 84% of market share in the region and the output is forecast to rise rapidly. Thereforce, it is necessary to adjust the transshipment between the international Port group in Ho Chi Minh City and Cai Mep to reduce the potential overload. However, this action can not implemented due to the limitation of Article 44 of Decree 08/2015/ND-CP. Cargos moved to intermediate destinations are only permitted to move throughout the territory of Vietnam for purpose of export via a different border gate, if that cargo is permitted by international agreements to which Vietnam is a signatory, or by Prime Minister’s decision.

According to the General Department of Customs, the permission for transporting transshipped cargos between Cai Mep-Thi Vai Port and the other international ports in Ho Chi Minh City will create flexibility in business and solve congestion. Furthermore, this solution will also meet the practical demand in trade of shipping agencies and help Vietnam’s enterprises in the field of port trade to develop the transshipment service.

Proposals by Customs on used machinery not applicable to adjustment of Circular No.23/2015/TT-BKHCN

Recently, at the meeting held by the General Department of Customs, Deputy General Director Vu Ngoc Anh directed that Customs will issue specific guidance on Customs supervision for transshipped cargos between seaport areas to be managed by a Customs Branch. In the case being managed by many Customs Branches, the General Department of Customs will submit to the Ministry of Finance for specific guidance. Customs will also complete the submission for consultation of the ministry in charge with relevant ministries (Ministry of Industry and Trade, Ministry of Transport) to report to the Prime Minister to permit transshipped cargos between port groups to be managed by different provincial and city Customs Departments; and expand the categories of goods used in transshipment service such as: bulk cargo, liquid cargo, gas cargo etc. The General Department of Customs will review the provisions stipulated in Joint Circular No.08/2004/TTLT-BTM-BTC-BGTVT, 2004 of the Ministry of Trade (now the Ministry of Industry and Trade), Ministry of Finance and Ministry of Transport and provide direction on container transshipment service in Vietnam’s ports on the contents that need to be amended and supplemented.