Dong Nai Customs removes problems for Taiwanese businesses in analysis, classification and procedures for steel imports

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Director of Dong Nai Customs Department Phung ThiBich Huong spoke at the conference. Photo: N.H

Call for comments from businesses

Speaking at the conference, Dong Nai Customs Department Director Phung ThiBich Huong emphasized thatCovid-19 has had a significant impact on activities of businesses in the province. Many businesses have had difficulties,such as export orders, the supply of imported raw materials is interrupted, working capital has faced a shortage due to failure in goods consumption, some businesses have had to stop or suspend operations or report dissolution and bankruptcy.

These difficulties have also been shown through the decline of import-export activities in Dong Nai province. Specifically, in the first eight months of 2020, export turnover reached US$11.8 billion, down nearly 7% over the same period in 2019; andimport turnover reached only US$9.2 billion, down by nearly 12%.

Dong Nai Customs Department actively grasped the situation and implemented solutions to remove difficulties, creating favorable conditions for businesses to promote import and export activities to overcome the influence of Covid-19 under the direction of the People's Committee of Dong Nai province and the General Department of Customs. In particular, the dialogue conference with Taiwanese businesses is also one of the activities to support businesses.

Ms. Huong expected to receive cooperation, sharing and companionship of the Association and the business community throughcomments and solutions proposed to Customs in development, enforcement, and supervision of law enforcement; and businesses will comply with the law and effectively control the implementation of customs procedures to ensure accuracy and compliance with the law.

In the current period, in the face of difficulties caused by the Covid-19 pandemic, we suggested that businesses should enhance understanding of laws and regulations on State management on customs and strictly comply with the State preferential policies and facilitation solutions of the customs authority and avoid mistakes, such as: failing to declare to customs about the liquidation and transfer of machinery, equipment and raw materials subject to tax exemption and non-taxable items, affecting the competitive environment of import-export businesses.

Removing problems on results of analysis, classification and regulations on steel imports

At the conference, Dong Nai Customs Department gave businesses new legal documents and notes about the declaration of origin on e-customs declarations.

Mr. Le Van Tho answered questions from businesses. Photo: N.H

Accordingly, businesses must correctly declare the country code and the territory where the goods are manufactured and produced in accordance with the United Nations Code for Trade and Transport Locations (UN/LOCODE)announced by the General Department of Customs.

For goods information, businesses must fully and accurately declare the name, trademark, specifications, quality, composition, model, symbols, features and benefits of goods as prescribed in Appendix 2 of Circular No. 38/2015 / TT-BTC to ensure compliance with relevant documents of origin in customs dossiers, such as proof of origin, commercial invoice, transport documents and other documents todetermine the origin of imported goods.

Regarding the C/O form, goods subject to the special preferential tax rate must be fully and properly declare the criteria on the proof of origin in accordance with the form prescribed in international treaties to which Vietnam is a member. For goods subject to import management regimes, the criteria specified in Clause 1, Article 15 of Circular No. 38 are required.

Also at the conference, Dong Nai Customs Department received and answered many questions from businesses. Specifically, K-Source Company raised a question on regulations that businesses must register with the Department of Industry and Trade when importing steel –this is time consuming and costly for businesses.

Answering the question from K-Source Company, Mr. Tran Hoang Trong Ky, Head of the Customs Control and Supervision Division, said that imported steel products are governed by Circular 18/2017 / TT-BCT. Circular 18 abolished some regulations of Circular 58/2015 / TT-BCT. Through the review, K-Source Company completed procedures at the Thong Nhat Branch. During the handling of customs procedures, Thong Nhat Branch did not require the company to submit a registration formissued by the Department of Industry and Trade. However, Dong Nai Customs Department will also take note of the company’s opinions and speak with Dong Nai Department of Industry and Trade, and then notify the company.

Shihlin ElectricEngineering Equipment Company also said that the company's imported raw materials are not subject to anti-dumping tax, but still subject to an anti-dumping tax code, for the item "others". Currently, 100% of the company's imported shipments are classified in the red channel, increasing time spent for the company. Therefore, Shihlincompany proposed whether it is possible to declare its products according to the HS code on the C/O provided by the supplier or conduct a re-assessment of the product code.

In reply to Shihlin Company, Mr. Le Van Tho, Head of the Import and Export Tax Division, said that there are two solutions for the case where businesses are not satisfied with the tax code given by the inspection agency. Specifically, according to Article 23 of Decision No. 299 of the General Department of Customs, if the customs declarant does not agree with the analysis results in the General Department of Customs' classification and analysis notice regarding tax codes, the inspection agency will discuss with the customs declarant about the results. If the declarant still does not agree, the inspection agency will give part of the sample during the retention period to the declarant to solicit an assessment.

In addition, under Article 30 of Decree 28/3015 / ND-CP, in case of a disagreement with the inspection results of the customs agency, the customs declarant can make a complaint or choose another inspection agency in accordance with the law. The results of the inspection agency chosen by the customs declarant will be a basis for the Customs agency to decide the clearance.

Based on the above regulations, the competence to settle complaints related to the classification and analysis results belongs to the Customs Verification Branch 4. The company can contact the Customs Verification Branch 4 to make complaints or choose another inspection agency.

Another business also asked about tax incentives for the 2020 – 2021 period due to the Covid-19 pandemic. Accordingly, Mr. Tho said that on February 7, 2020, the Ministry of Finance issued Decision No. 155 / QD-BTC promulgating a list of goods exempt from import tax for the prevention and control of the Covid-19 pandemic. Accordingly, medical masks, hand sanitizer and raw materials for the production of masks, disinfectant fluid, necessary supplies and equipment for the prevention and control of the Covid-19 pandemic.

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Along with that, on July 27, 2020, the National Assembly Standing Committee issued Resolution No. 979/2020 / UBTVQH14 amending and supplementing Resolution No. 579/2018 / UBTVQH14 dated August 26, 2018 on the Environmental Protection Tariffs. Accordingly, the environmental protection tax on jet fuel is VND2,100 / liter,applied from August 1, 2020 to the end of December 31, 2020; from January 1, 2021, it will be VND3,000 / liter.