Many new points on the management of import and export activities

	Decree No. 59/2018 / ND-CP: New points on Customs declaration and inspection
	Decree No. 59/2018 / ND-CP: Amendments to procedures for temporary imported goods for re-exports

The provisions of the Decree detailing the Law on Foreign Trade Management will directly affect the import and export of goods. Photo: Loading and unloading cargo at Danang port. Photo: N. Linh.

Specifying measures to manage the import and export activities

According to a representative from the Ministry of Industry and Trade, the draft decree detailing a number of articles of the Law on Foreign Trade Management includes 8 chapters, 73 articles and 10 appendixes. In particular, the main contents of the Decree are: provisions on measures to manage import and export activities; management of the temporary import for re-export and temporary export for re-import, border gate transhipment, transit; foreign trade activities (transiting, processing, buying and selling agents) and dispute resolution on the application of foreign trade management measures.

The remarkable point of the draft Decree is the List of goods banned from import and export that will be issued in the Decree. The ministries and ministerial-level agencies shall reach agreement with the Ministry of Industry and Trade before issuing the detailed List, and 100% of the issued List has the HS code. The draft decree stipulates that in exceptional cases, the Prime Minister will issue a decision on allowing the import of goods specified in the List, for example, goods imported for scientific research.

For goods imported and exported under the license or conditions, the draft Decree describes that 100 % of issued list has HS code. For licensing application and procedures, the draft decree stipulates general provisions on licensing application and procedures and licensing period of maximum 10 working days, except other cases provided by law. Ministries and ministerial-level agencies shall promulgate or submit to competent units to promulgate detailed regulations on licensing application; and announce the agency, organization and address in charge of receiving licensing applications from traders.

In addition, a number of goods imported and exported under specific regulations such as goods used for national defence and security purposes shall comply with the Prime Minister's decision and the regulations on import and export licensing. The draft Decree has a new point regulating the import of goods directly affecting the national defence and security, but not for the purpose of national defence and security. These goods will be imported under license of the Ministry of Industry and Trade on the basis of the opinion of the Ministry of Defence and Ministry of Public Security.

Management of temporary import - re-export activities has many new points

In the management of temporary import for re-export and temporary export for re-import, border gate transhipment, the draft decree continues to maintain some regulations on management of temporary import for re-export as stipulated in Decree 187/2013 / ND-CP, such as regulation on temporary import for re-export licensing; management and supervision of temporary import for re-export; and retention time in Vietnam

The temporary import for re-export border gates include: main border gates, international border gates; sub-border gates border crossings in border-gate economic zones; other border gates and places. Sub-border gates and border crossings in the border gate economic zones are permitted to re-export when meeting conditions: provincial People's Committees announce the eligibility of sub-border gates and border crossings for re-export and provincial People’s Committees shall select authorized traders for re-export. The selection of traders eligible for re-export only applies for goods subject to the temporary import for re-export licensing and goods subject to conditional temporary import and export business.

The draft decree excludes licensing regulations for many cases of temporary import for re-export, such as components and parts thereof without contracts to serve replacement and repair of foreign ships and aircraft; vehicles containing import and export goods under the rotation method; and goods for exhibitions and fairs; and telecommunication equipment for testing and so on.

In addition, the Draft also stipulates the temporary import for re-export cases subject to the license of the Ministry of Industry and Trade such as: Goods banned from import and export; goods suspended from import and export; goods subject to import and export quota control, tariff quota, import and export licenses. Cases where licenses are not required: temporarily imported goods for re-export within the warranty period for warranty, maintenance and repair purposes; temporarily imported goods for re-export for overseas trade fairs and exhibitions. Particularly, goods banned from export are permitted to participate in overseas trade fairs and exhibitions under the Prime Minister’s approval.

In particular, the draft Decree specifying the transit in the form of transhipment method. According to the draft Decree, if goods subject to transit permits transported by sea from foreign countries into the transit area at seaports and then transported abroad from this transit area, or transported to another transit area to be transported abroad, the transit procedures shall comply with the Finance Ministry's regulations, without permits of the Ministry of Industry and Trade.

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In the field of processing of goods subject to the List of goods banned from import, the draft Decree provides the competence of the Prime Minister on deciding the processing, repair and recycling of goods banned from import, the Ministry of Industry and Trade coordinates with the ministries to develop this decision. This is a new point over Decree 187/2013 / ND-CP. Decree No. 187/2013 / ND-CP stipulates that ministries and ministerial-level agencies have right to prescribe the processing, repair and recycling of machinery and equipment in the List of goods banned from import. However, representatives of the drafting committee said that in the transition process, the circulars and guiding documents of the relevant ministries will maintain their validity until 31st December 2018.