Ho Chi Minh City Customs Department: Removing obstacles for processing business

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Representatives of businesses raised questions at the dialogue conference on 14 September 2017. Photo: T.H

Mr. Le Dinh Thuat, Manager of the Investment/Processing Customs Branch said that in order to support business in implementing the export processing and production model, in the recent times, Ho Chi Minh City Customs Department in general and Investment/Processing Customs Branch, in particular, have continuously updated and guided new documents and regulations to support businesses for good compliance of regulations and avoid errors.

At the conference, apart from promptly answering difficulties and obstacles in implementing Customs procedures, the Customs publicized new legal documents and regulations for businesses clearly understand and correctly implement Customs procedures; Step by step enhancing legal compliance in business community and well coordinating with the Customs in law enforcement, anti-smuggling and trade fraud and creating a healthy business environment and competitiveness among businesses.

At the Conference, the Investment/Processing Customs Branch and divisions of Ho Chi Minh City Customs Department answered many questions of businesses, in which mainly focus on removing obstacles in implementing final accounts for export production; determining the taxable value of goods transferred for domestic consumption and deficit of raw material in final accounts; Semi-finished product whether or not to be listed in final accounts and etc.

Some businesses asked that business’ declarations which have been liquidated and implemented tax refund but they must be confirmed for passing at surveillance areas. Ho Chi Minh City Customs Department frankly acknowledged its responsibility and said that in the past times, the Department was selected to implement the pilot e-customs surveillance under Article 41 of Customs law. However, due to the pilot time, the system is in process of completion, many declarations were approved by Customs officers for passing at the surveillance areas, but the system has not confirmed. From 1 September 2017, this problem has been corrected. Ho Chi Minh City Customs Department has requested the Customs Branch to immediately resolve the remaining declarations on the system which have not been confirmed for passing at the surveillance area.

Some businesses face with obstacles in implementing Customs procedures such as importing raw materials for export production, but when they are liquidated, they are a deficit, what does the Customs solve this problem?. Answering this question of businesses, the leader of the Investment/Processing Customs Branch said that businesses have to report to the Customs for determination of the reason. The Customs will base on the report of business and current regulation to handle.

Regarding the procedures for changing the useful purpose of processing machinery and equipment, some businesses faced with difficulties in clearly understanding the procedures. The representative of Song Hoa Company raised questions that the company has received some equipment sent by its foreign partners for processing their products, and then the partners want to donate this equipment to the company. Hence, what does the company do?

Answering the questions of the Company, Mr. Nguyen Quoc Toan, Deputy head of Import-Export Division- Ho Chi Minh City Customs Department said that as per regulations when business imports machinery and equipment for processing of goods subject to tax exemption but changing use purpose, the business shall implement re-export procedure out of Vietnamese territory. When foreign partners want to donate the machine and equipment to the business, the business has to implement the procedure of changing the use purpose, declare and pay tax for the Customs. The taxable value of the machine and equipment will be implemented in accordance with Circular 39 of the Ministry of Finance.

Developing cooperative regulations with enterprises to deploy the project on goods supervision

Highly appreciating the coordination of business community with the Customs in the past times, Deputy Director of Ho Chi Minh City Customs Department Dinh Ngoc Thang said that the Customs issued many new regulations to shorten procedures and facilitate trade. However, during the implementation of new regulations, some obstacles have arisen, affecting import and export operation of businesses. The Ho Chi Minh City Customs Department gathered obstacles to reporting to a higher level to timely remove for businesses.

In order to facilitate business community in general and businesses operating in export processing and production in particular, currently, the Ministry of Finance and the General Department of Vietnam Customs are amending and supplementing Decree 08 and Circular 38 towards further simplifying and facilitating business in import and export operation.