Lang Son: Import and export still face difficulties

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Goods exported across Coc Nam Border Gate sharply declined and have no revenue from imports. Photo: H.N

Talking to Customs News, Vy Cong Tuong, Deputy Director of Lang Son Customs Department said the import and export activities in Lang Son still suffered from difficulties in July, because the Chinese side has taken newmanagement measures at the border.

Specifically, at Tan Thanh - Po Chai border gate, the Chinese side announced to increase the import and export capacity of goods, Vietnamese vehicles carrying goods entering China must submit transportation license class C.

Trucks carrying goods must buy vehicle insurance worth 86 Yuan (about VND 300,000/vehicle/sevendays). From June 25 to current date, the number of vehicles transporting goods to Tan Thanh Border Gate for export has sharply decreased.

At Coc Nam Border gate, after the Lunar New Year to now, there hasnot been revenue from imports. The department only collected VND 13.9 billion, decreasing by more than90% compared to 2019. The Chinese side constantly issued notifications to suspend import and export activities at Lung Vai Border Gate.

The reason given by the Chinese side is the transportation of goods from Coc Nam Border Gate to sites for gathering goods of the Chinese side donot meet requirements on goods inspection and supervision as prescribed by China Customs.

Lang Son Customs has discussed with the Chinese side to maintain import and export activities.

It is expected that in the near future, China will continue restricting import and export activities at Lung Vai border gate to invest in building a specialised route to transport goods to meet regulations on goods import and export. Therefore, there will have no revenue at Coc Nam border gate.

A representative of Coc Nam Customs Branch said that in the first days of August, China will continue to import agricultural products from Vietnam across Coc Nam border gate.

However, China requires drivers to use closed vans to transport goods into China across Lung Vai border gate. There are 4-5 vehicles carrying exported fresh jackfruit per day. For tapioca starch, the Chinese side requests to implement import procedures for this item at Tan Thanh Border Gate.

Tuong also said the tax cut complies with the signed integration commitments and free trade agreements, ASEAN-China Free Trade Agreement. Many commodity streams havecut tariffs and low tax rates of 0%-5% when there is a valid C/O form D.

Meanwhile, goods imported across the border gates subject to be cut tariff includes semi-trailers, specialised vehicles, consumer goods, furniture, chemicals, production materials and fruits.

In addition, application of anti-dumping and safeguard measures on a number of commodities with high turnover and revenue such as iron and finished iron products; aluminum and aluminum finished products and sharp decrease in imports also affect Lang Son Customs’ revenue.

To accomplish revenue collection in the last months of the year amid the Covid-19 pandemic, Lang Son Customs Department has worked with authorities to monitor, assess the impact of the Covid-19 pandemic to propose solutions promptly. At the same time, the department will implement solutions to facilitate trade, improve effectiveness of measures to increase revenue and prevent revenue losses.

Thedepartment has promoted administrative reforms, supported businesses amid Covid-19 pandemic; tightened administrative discipline and rule, prevented negative attitudes, causing problems and harassment; created favourable conditions for the business community in import and export activities, reducing the time for goods storage at warehouses and yards in border gates to minimise arising costs.

At the same time, it continues to workwith competent authorities to discuss with the Chinese side to provide solutions to create favourable conditions for import and export goods, especially Vietnam's exported agricultural products and raw materials, electronic components imported for domestic production.