Temporary import and re-export goods: Strictly manage to prevent trade fraud

Professional activities of Cao Bang Customs. Photo: T.Bình

Timely giving instructions

According to the Customs, basically the operation of temporary import for re-export has been relatively stable, without problems or shortcomings in the process of carrying out customs procedures at local units. Customs authorities carried out customs procedures and supervised the quantity of goods and the time of temporary import and re-export for goods through the electronic data processing system of customs, ensuring customs management and supervision for this activity. Customs authorities are responsible for supervising goods temporarily imported and re-exported from the time of temporary import until goods are actually re-exported from Vietnam, including when goods are transported from the temporary import border gate to the re-export border gate.

Besides that, Customs authorities have many policies to guide enterprises to comply with the law on the management of goods temporarily imported and re-export. One of the issues that is a concern of enterprises is how the management of transporting vehicles for goods temporarily imported and re-export is implemented. Regarding this matter, the General Department of Vietnam Customs said based on the provisions of Clause 1, Article 83 of the Circular No. 38/2015/TT-BTC of the Ministry of Finance dated March 25, 2015, goods for temporary import and re-export must be subject to customs supervision during the time of moving to containers or other means of transport. However, the law does not provide information about the location for changing means of transport for goods temporarily imported and re-exported during transport from the time of transport from the border gate of temporary import to the border gate of re-export.

Regarding cases when enterprises proposed guiding the conversion of the transportation mode of goods temporarily imported and re-export, the General Department of Vietnam Customs issued documents No. 6472/TCHQ-GSQL dated October 3, 2017, No. 4633/TCHQ-GSQL dated August 7, 2018 and No. 1002/TCHQ-GSQL dated February 20, 2019 and guidance for implementation, ensuring goods temporarily imported and re-exported during changing modes of transportation, the means of transport ensure the work of customs supervision should comply with the provisions of Clause 1, Article 83 of Circular No. 38/2015/TT-BTC.

Regarding the transfer of domestic consumption of goods temporarily imported and re-export, the General Department of Vietnam Customs said that, based on Clause 4, Article 39 of the Law on Foreign Trade Management, Clause 4, Article 13 of Decree No. 69/2018/ND -CP of the Government dated May 15, 2018, the consumption of goods temporarily imported and re-export domestically must comply with provisions on management of import goods and taxes of this law and other provisions of relevant laws. Pursuant to Clause 12 Article 1 of Decree No. 59/2018/ND-CP of the Government dated April 20, 2018 amending and supplementing Decree No. 08/2015/ND-CP dated January 21, 2015, goods temporarily imported and re-export, which have already been released or cleared but then transferred for domestic consumption, they must declare new customs declarations, policies on management of imported goods, and tax policies applicable to imported goods would be applied at the time of registration of a new customs declaration, except in cases that the implementation of policies on export and import goods has been fully implemented at the time of registration of initial declaration.

Therefore, for temporary import and re-export goods, when goods are transferred for domestic consumption, they must comply with the policy on management of imported goods when carrying out procedures for transferring domestic consumption. It must not transfer goodswhich are in the list of goods banned from import for domestic consumption, temporarily suspended from import, and it must fully comply with the specialized management licenses as well as specialised inspection of temporarily imported goods transfering for domestic consumption.

Preventing fraud

Besides guiding enterprises to comply with legal policies related to the operation of temporary import and re-export, the General Department of Vietnam Customs also direct provincial Customs Departments to strengthen management, inspection and prevention of commercial fraud. Additionally, the General Department of Vietnam Customs also proposed management agencies amend and supplement decrees on sanctioning violations in the direction of increasing the penalties for violations of regulations on managing goods temporarily imported and re-exported such as: acts of arbitrarily selling domestically goodstemporarily imported and re-export; do not comply to regulaton when re-exporting goods through border gates.

At the same time, to research and operate the electronic sealing system in supervising the transportation of temporary import and re-export goods to ensure the management effectiveness for this type of business.

In particular, the Ministry of Industry and Trade needed to work with competent forces to grasp the changing information of the cross-border policy of China in order to make recommendations for enterprises. So they can timely adjust and avoid causing economic damage, creating opportunities for smuggled goods transporting to inland. The People's Committees of border provinces should strictly manage trails and opening roads, preventing temporary import and re-export of goods from illegally transporting to prescribed routes, areas or smuggling inland.