MoF proposes to abolish Article 35 on “on-the-spot import and export” in Decree No.08/2015/ND-CP

	Ensure stability and prevent fluctuation in price levels
	Promote information transparency to increase large-scale investors in stock market

Officers of Hon Gai Seaport Customs Branch (Quang Ninh Customs Department) at work. Photo: Hon Gai Seaport Customs Branch

Facilitating both Customs and enterprises

The Ministry of Finance said that the Ministry proposes to amend Article 35 of Decree No.08/2015/ND-CP on on-the-spot import and export to unify the customs control and the nature of goods transaction. The ministry suggests to abolish Article 35 on “on-the-spot import and export” in Decree No.08/2015/ND-CP as follows:

“2. Repeal Article 35 of Decree No. 08/2015/ND-CP dated January 21, 2015 of the Government.

Goods traded between Vietnamese enterprises and foreign organizations and individuals without a presence in Vietnam and designated by foreign traders to deliver and receive goods with other enterprises in Vietnam, must go through customs procedures for on-the-spot import and export no more than one year form the effective date of the Decree, and must meet regulations prescribed in Clause 5, Article 3 of the Law on Foreign Trade Management”.

According to the Ministry, the abolition of the provisions in Article 35 of Decree No. 08/2015/ND-CP will create great convenience for both the Customs and businesses. This will reduce administrative procedures, time and costs for enterprises. According to statistics, in the 5 years from 2018-2022, there are more than 1.8 million on-the-spot import-export declarations on average per year. If this regulation is abolished, it will save about VND36.7 billion for businesses average per year, including savings time and resources.

It also will reduce time, human resources and material resources for the Customs in processing procedures for on-the-spot exported and imported goods. It will also reduce risks when there is no basis to determine whether or not the foreign trader is present in Vietnam. However, in addition to the above positive aspects, the abolition of the regulation in Article 35 raises issues related to import tax payment and collection.

Supplementing regulations to meet digital customs requirements

Additionally, the draft Decree also amends and supplements new regulations to meet the requirements of digital customs implementation.

In order to implement the Customs Development Strategy to 2030 approved by the Prime Minister in Decision 628/QD-TTg dated May 20, 2022, the General Department of Vietnam Customs (GDVC) has closely followed strategic goals such as: building Vietnam Customs to become a leader in implementing the Digital Government, with the model of Digital Customs, Smart Customs, towards a paperless environment in State management of customs.

The GDVC has promoted digital signatures, connection, integration, and sharing digital data with the Ministry of Finance's Operating System and the Government's Reporting Information System, and 100% of customs control records are converted to electronic data, moving towards digitization. To achieve the objectives of the Strategy, the Ministry of Finance (General Department of Customs) has continued to amend and supplement new regulations.

Accordingly, to meet the requirements of Digital Customs and Smart Customs, the Decree is built to ensure the implementation of customs procedures in the electronic environment, intelligent data processing through the digitization of documents in the customs dossier; process the customs declaration and dossier via the system. The Customs management of processing and export production activities is carried out on the system; the management of Authorized Economic Operators is implemented through the connection and exchange of data between businesses and the Customs.

Some specific contents related to the group of customs procedures, customs supervision for exported and imported goods, are revised such as Customs checkpoint (Article 4), customs declarants (Article 5), entitles subject to carry out customs procedures, and customs inspection and supervision (Article 6), customs declaration (Article 25), physical inspection of goods (Article 29), goods release (Article 32), responsibilities and coordination relations of competent state agencies at border gates in the inspection of goods and means of transport at border gates (Article 33), customs supervision of exported, imported and in-transit goods (Article 34)...

Amended regulations are related to groups of procedures for types of goods: group of processed and manufactured goods for export; group of transit and transshipment goods; group of other goods (customs procedures for exported goods that have been returned; temporarily imported and re-exported goods, other temporarily exported and re-imported goods; customs procedures for movable assets; customs procedures for exported and imported goods, checked baggage of exit and entry passengers that are lost or mistaken; customs procedures for luggage of exit and entry passengers).

Revised regulations are related to exiting and entering means of transport (customs procedures for exiting and entering means of transport by air and sea; customs procedures for means of transport on roads, inland waterways and other means of transport); Authorized Economic Operator; and post-clearance audit.

According to the drafting committee, the revision aims to resolve problems arising in practice, meeting the requirements of deploying the information technology system to implement Digital Customs.