Expectations of a “revolution” in reforming specialised inspection procedures -Part 3: Inherent limitations

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Customs operation at My Phuoc Industrial Park, Binh Duong Customs Department. Photo: T.D

Many shipments have been stored at warehouse for specialised inspection but the inspection results are late for submission, causing difficulties in customs management and supervision, and trading goods by businesses. However, some firms have abused the storage of goods while waiting for the inspection results to sell goods in the market.

For example, AH Import & Export Co., Ltd. registered a customs declaration at Huu Nghi International Border Gate Customs Branch to import 12 tonnes of Siberian sturgeon from China on March 17. At the same day, the Research Institute for Aquaculture No.1, the customs branch and the quarantine agency took samples for goods inspection at the company’s warehouse. On March 19, the Research Institute for Aquaculture No.1issued inspection results. But when competent forces inspected the company’s warehouse, all goods were sold while the goods had not been cleared by the Customs.

Some firms have been prosecuted criminally by Customs, such as Nong Sinh Co., Ltd that carried out customs procedures to import more than 250 tonnes of organic fertilisers from China valued at US$85,840. While awaiting quality inspection results, the company applied for transporting goods to its warehouse for storage and committed not to sell goods without approval from competent agencies. However, the company traded goods in the market.

Or the case of Pet Prince Co., Ltd. arbitrarily consumed imported dog food while awaiting quality inspection results.

During performing tasks at border gates, the Customs has realised shortcomings in import and export activities.

Tran Thi Thu Hien, Head of Import Cargo Customs Procedures Team of Tan Son Nhat International Airport Customs Branch, said the branch processed a declaration of five sets of tablets imported by H. Co., Ltd. But the declaration was pending for nearly one month because the firm did not submit the registration for quality inspection for import goods. In addition, businesses face shortcomings in specialised inspection when importing items such as water meters, electricity meters, petrol meters and LED lights via Tan Son Nhat International Airport.

Ngo Thanh Ha Deputy Manager of My Phuoc Industrial Park Customs Branch (Binh Duong Customs Department) said not all cases are delayed in terms of quality inspection and food safety inspection. For example, food safety inspection for plant and animal products is connected to the National Single Window. When firms registering customs declaration, the Customs will check documents and enterprises businesses to transport goods to their warehouses, and cleared goods within 3-5 days after inspection results are issued.

However, many customs declarations have been processed but customs has to wait for additional documents submitted by businesses for customs clearance.

For example, the boiler and air compressor subject to inspection by the Ministry of Labour - Invalids and Social Affairs, or cultural products are delayed in specialised inspection results because they have to go through many procedures. Businesses have to wait the inspection results within 30 days.

Some items subject to specialised inspection have to make on paper documents. So it takes from two to three week to get results. Customs must urge businesses to avoid the delay, Ha said.

Recently, some firms have faced problems on application for energy efficiency testing issued by the Ministry of Industry and Trade. The motor importers must send this product to the Hanoi-based specialised agencies to apply for energy efficiency testing with cost of VND6 million. While some companies only import a few motors to serve the production line machinery in their factories, with inadequacies in procedures and costs, businesses have carried out re-export procedures these products.

As of February, HCM City Customs department received nearly 1,700 declarations subject to C/O inspection, 1,600 declarations subject to import permit inspection, 400 declarations subject to chemical declaration inspection and 400 declarations subject to inspection of registration for circulation.

A total of 140,000 declarations were processed at checkpoints of HCM City Department in February. More than 5000 declarations of shipments were subject to specialised inspection, accounting for 3.62 % of total customs declarations. Of those, nearly 2,000 declarations were subject to quarantine inspections, accounting for 1.44% of total declarations; more than 1,400 declarations were subject to quality inspection, and over 700 declarations subject to cultural inspection. The rate of items subject to specialised inspection is mainly in seaport and airport customs branches of HCM City Customs Department.

At Binh Duong Customs Department, a total of 27,160 shipments went through specialised inspection in 2020.

Trinh Huynh Thanh, Head of Customs Control and Supervision Division, said the department has carried out procedures for many categories of goods. Of those, some imported items are subject to quality, technical standard, food hygiene and safety inspections, as well as animal and plant quarantine.

Majority of firms have complied with regulations on specialised inspections. Only some firms violated the deadline for submitting the results of specialised inspections

In addition to the advantages in customs process, many shortcomings still occur such as overlapping in legal documents related to specialised inspection or unspecific regulations. The detection rate of consignment not meeting quality was less than 0.03% of the sample rate.