Inadequacies in transhipment and transit of goods will be removed

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Imports and exports at Cai Mep port, Thi Vai. Photo: Nguyen Hue

Concepts are still overlapping

At the meeting to discuss contents of the draft Decree amending and supplementing Decree No. 08/2015/ND-CP of the Government, relating to Customs procedures for transhipped goods and goods in transit, General Department of Vietnam Customs and representatives of Import and Export Department of the Ministry of Industry and Trade were unanimous to remove inadequacies in transhipment and transit of goods.

According to representative of Customs Management and Supervision Department (General Department of Vietnam Customs), obstacles in the past times were involved in the implementation of Customs inspection and supervision procedures for transhipped goods in compliance with Article 44 of Decree 08/2015/ND-CP. The transhipment of goods was restricted by provision “Transhipped goods are goods moving from an overseas country to intermediate area and then transported directly from this intermediate area to another country; those which are not permitted to move throughout the territory of Vietnam for the purpose of export via a different border gate, except the case where those goods are permitted by international agreements of which Vietnam is a member or the Prime Minister’s decision”. Enterprises proposed that transhipped goods should be permitted to be transported among international seaports. The Ministry has reported these proposals to the Prime Minister.

In order to temporarily remove obstacles of enterprises, at Document 2531/VPCP-KTTH dated March 18, 2017, Deputy Prime Minister Trinh Dinh Dung agreed with the proposal of the Ministry of Finance on pilot implementation of permission for transhipped goods to be transported among international seaports with intermediate area for port zones in Ho Chi Minh City and Cai Mep port, Thi Vai for export. Mr. Dung also directed that instantly, Customs procedures for goods in transit and transhipped goods were still implemented according to Decree 187/2013/ND-CP and Decree 08/2015/ND-CP of the Government. Ministry of Industry and Trade hosted and collaborated with Ministry of Finance and relevant authorities to urgely research, amend and supplement provisions on permission for transit and transhipment of goods subject to List of imported and exported goods according to licence towards simplifying the administrative procedures and meeting the actual requirements.

In addition to removing obstacles of enterprises in the implementation of Article 44 of Decree 08/2015/ND-CP, in this revised draft, the representative of Customs Management and Supervision Department said that the concept of transhipped goods and goods in transit should be clarified. Because they are two different types but have not been specified. Article 241 of Commercial Law stipulates that transit of goods is the transportation of goods owned by foreign organizations or individuals through the Vietnamese territory, including transhipment, portage, warehousing, shipment separation or alteration of modes of transportation or other works performed during the transit time. Therefore, under the above provision, the transit of goods includes transhipment activity. Moreover, the Commercial Law and other legal normative documents also have not specified the transhipment activity.

The transhipment type should be separated

To remove obstacles from actual implementation and match with nature of goods transportation, the Customs management and supervision stated that specific provision on Customs procedures for goods in transit and transhipped goods is very necessary. Accordingly, transit procedures for goods transported to Vietnam and transported out from port of entry will be applied goods transported to Vietnam and then transported to another river port or land port for export; transhipment procedures will be applied for goods exported through seaport or airport different from port of entry but does not change transportation mode.

Besides, policy on goods for these two types need to be stipulated in detail. For example, transhipped goods are goods moving from an overseas country to Vietnam through ports then transported to another country without domestic transportation by means of transport different from initial means of transport. Accordingly, goods will not suffer a high-risk level and still controlled by Customs authorities, managed by transportation firms and port operators. Therefore, transhipped goods (except goods banned from transhipment, goods subject to permits) does not need to ask for permit from specialized management authorities. Procedures for goods in transit shall be implemented in line with Decree 187/2013/ND-CP

Discussing above contents in the draft revised Decree 08/2015/ND-CP, representative of Import-Export Department stated that some contents are also being researched to include into draft Decree guiding Law on foreign trade management such as provision of management policy for transhipped goods and goods in transit; specific provision for transhipped goods and goods in transit.

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Before statements of the representative of the Import-Export Department, General Department of Vietnam Customs agree to include above contents into two draft Government Decrees. Of which, concepts of transhipped goods, goods in transit and policy on goods shall be clarified in the draft Decree guiding the Law on foreign trade management; General Department of Vietnam Customs shall amend the contents relating to Customs management for transhipped goods, goods in transit, routes and goods channels in Decree 08/2015/ND-CP. Provisions related to these two types shall be discussed thoroughly by General Department of Vietnam Customs and Ministry of Industry and Trade to introduce appropriate provisions, facilitating import and export activities.