Dong Nai Customs: Listening to enterprises to improve the operational efficiency

	Dong Nai Customs strictly monitors the management of materials processed and manufactured for export
	Dong Nai Customs: Collecting over 2 billion VND from specialized inspection
	Dong Nai Customs: Together with enterprise to nurture revenue source

Enterprises gave their opinions in the seminar.

At the seminar, Park Hyung Bae, Chairman of Dong Nai Kocham Investment Association said that Vietnam is a bright spot among ASEAN countries and Dong Nai province is one of the provinces receiving the most attention. As of June 2018, Dong Nai has attracted US$ 900 million of FDI, including 54 new projects and 49 reinvested projects, of which South Korea is the largest investor.

According to Park Hyung Bae, the investment promotion in Dong Nai province of South Korean enterprises is increasing. There are about 400 South Korean enterprises investing in Dong Nai. He predicted that in the near future, in addition to existing industries and high-tech industries, South Korean enterprises will continue to invest in other industries such as distribution and circulation of goods in Dong Nai province. Therefore, South Korean enterprises will need more active support from Dong Nai authorities.

Director of Dong Nai Customs Department Phung Thi Bich Huong, informed that out of 1,335 FDI projects in Dong Nai province, projects invested by South Korean enterprises accounted for 360 projects with total investment capital of over US$ 5.6 billion.

According to Ms. Huong, in addition to measures of Customs reform and modernization to facilitate import-export activities, over the past time, Dong Nai Customs Department regularly organized business dialogues with business associations and enterprises with the motto of listening, understanding, sharing, cooperating and accompanying with enterprises. Therefore, the seminar titled "Customs - Enterprises: Connecting - Sharing – Accompanying" organized by Dong Nai Customs Department in cooperation with the South Korean Business Association, is in the expectation that Customs and enterprises continue to be reliable partners for their effective operation.

Accordingly, in addition to removing problems encountered by enterprises during the import and export process, Dong Nai Customs Department also listens to comments and recommendations of the South Korean Business Association. Thereby, introducing measures to improve the efficiency of the enterprise management and support or proposing to the Customs sector to improve Customs legislation in the coming time.

Hyosung company stated a problem on minimum energy efficiency test for imported electric motors to replace damaged old equipment. Accordingly, only one Quatest 1 unit in Hanoi performs the energy efficiency test. Meanwhile, the quantity of imported electric motors is very small because it is used only to replace damaged equipment.

Therefore, Hyosung company proposed to narrow the goods subject to energy efficiency test, remove the imported goods to replace the damaged equipment, and expand the number of units in charge of the energy efficiency testing.

Regarding this problem, Ms. Do Thi Huong Sen, Head of Control and Supervision under Dong Nai Customs Department said the Department recognized the problem and reported it to the General Department of Customs to propose to the Ministry of Industry and Trade. However, the Ministry of Industry and Trade responded that the quantity of imported machines was small but they used energy in Vietnam so they must be subject to energy efficiency test.

According to Ms. Sen, this is the regulation by the Ministry of Industry and Trade which is the specialized management agency. However, Dong Nai Customs Department still acknowledged the proposal of the company to report to the General Department of Customs for comments to the Ministry of Industry and Trade.

In regard to the matter that the company has to send motors to Quatest 1 unit for test, Dong Nai Customs Department has also sent a report to the General Department of Customs to propose to the Ministry of Industry and Trade. Accordingly, Circular 36/2016 / TT-BCT stipulates that energy labeling testing organizations are domestic and foreign testing organizations, including independent test organization or testing laboratory of the manufacturers.

Accordingly, the energy efficiency test is no longer limited to Quatest 1 as before. However, with refection by Hyosung Company about that, they still have to send equipment to Hanoi for the test, Dong Nai Customs Department will note and report to the General Department of Customs.

At the seminar, enterprises also asked about the VAT on sales of discarded products collected from the production process, including damaged raw materials, damaged finished products and semi-finished products. Accordingly, enterprises will have to pay double VAT.

Answering the above question, Le Van Tho, Head of the Import-Export Tax Division under Dong Nai Customs Department said that according to Article 5 of the VAT Law, items which are not subject to VAT are goods in border gate transfer and in transit through Vietnam's border gates; temporarily imported goods for re-export; temporarily exported goods for re-import; raw materials imported for export processing and production under export processing or production contracts signed with foreign parties; and goods and services traded between foreign countries and non-tariff areas and between non-tariff areas.

The Dong Nai Customs Department: Encourage enterprises to cooperate and connect with Customs offices VCN- On the afternoon of 25 July 2018, the Dong Nai Customs Department cooperated with Taiwan Trade ...

Thus, discarded products are not subject to VAT. Therefore, the discarded products collected from the production process, but still having a commercial value, the company must declare payment of input VAT and when the goods are sold, the company has to issue output VAT invoices, then the company will be entitled to tax deduction as prescribed.

Ms. Phung Thi Bich Huong granted the decision on extension of authorized economic operator to Chang Shin Vietnam company. At the seminar, Dong Nai Customs Department granted a decision to extend the application of authorized economic operation regime to Chang Shin Vietnam company. Chang Shin Vietnam (headquartered in Thanh Phu Industrial Park, Vinh Cuu District, Dong Nai Province) has been recognized as an authorized economic operator from 20th July 2015 with the application time of 3 years. Up to now, the company still meets the prescribed conditions, so the General Department of Customs has decided to extend the priority regime to the company for another 3 years. Chang Shin Vietnam Company is 100% invested by South Korea and is a processing company. It has operated in Vietnam since 1995.