Temporary import for export trade- A must to get it right

VCN- The Ministry of Industry and Trade is consulting a number of ministries and People's Committees of northern border provinces on  the operations of the temporary import for re-export, temporarily exported for re-import, and export of goods after  two years implementation of Circular 05/2014 / TT-BCT (hereinafter referred to as Circular 05) of the Ministry of Industry and Trade    .
temporary import for export trade a must to get it right
Customs authorities of TàLùng Customs Department Branch (Cao Bằng) are inspecting import-export goods. Photo: T.Bình.

In the view of Customs authorities, it is necessary to clarify many points in Circular 05/2014 / TT-BCT including traders in temporary import for export operations. Especially, re-export trade through the Northern border gates which only implement services for foreign traders should be strictly controlled.

According to the Customs Department of Ha Giang, thanks to the implementation of Circular 05, temporary import for re-export activities at the bordergates of Ha Giang are on the up trend. Accordingly, enterprises benefitcarrying out temporary import for export business without depending on registration of business lines and without licenses required by the Ministry of Industry and Trade (except for goods banned or suspended from export, prohibited or suspended goods for import, commodities under conditions, or export and import goods which must be licensed by the Ministry of Industry and Trade). The circular also specifies the gate of temporarily imported goods for export and the monitor of goods from the temporarily imported gate until the goods are actually exported to foreign countries, regulates business standards of temporary import for export enterprises, devolves more power to local governments and defines the responsibilities of all State branches in managing such business operations.

Customs Lang Son reviews that Circular 05 has both enhanced efficiency in temporarily imported for export goods management and limits the temporary imports of prohibited items, ceased–trading goods, and used items. More remarkably, the volume of goods temporarily imported which are not re-exported and backlogged at the borders is considerably reduced.

However, there are still many shortcomings and overlaps ịn the guidance of Circular 05 which concern both Customs authorities and businesses. Specifically, responsibilities of enterprises are stipulated in Clause 2 Article 15 as "seriously relieve frozen food warehouse at the port gate at the request of the Ministry of Industry and Trade in order to limit congestion and backlog ". However, under the Customs Act, 2014, Decree 08/2015 / ND-CP, Directive 23 / CT-TTg of the Prime Minister, the Customs authorities are responsible for Customs supervision of goods from temporary entry until re-exported from Vietnam. Therefore, all temporarily imported goods in Vietnam with or without re-export permissions stored in the port, the border gate will be under Customs supervision of the Customs authorities until they are re-exported from Vietnam. As matter of fact, the clearance of goods as directed in the provisions of Circular 05 will lead to uncertainty for Customs supervision of goods which are kept in Vietnam.

Besides, the local unit of Customs also reflected many accumulations in issuing certificates for temporary import goods for export businesses. Under the provisions of Clause 1 Article 5 of Decision 52/2015 / QD-TTg, the People’s Committees of border provinces chair and in collaboration with the Ministry of Industry and Trade select qualified traders who fully meet the requirements prescribed by law to perform sale of goods via sub-border gates and border crossings. As stipulated in Clause 3 Article 5 of Circular 05, the People’s Committees of border provinces and the Ministry of Industry and Trade have to reach an agreement on the principle for selecting and allowing enterprises to re- export goods via sub-border gates and Customs clearance points. Later on, lists of selected enterprises must be published. Thus, in order to get this business certificate, enterprises must be published twice. Moreover, enterprises have to deal with many accumulating administrative procedures and increasing selection expenses that this will cause difficulties for the operation of businesses not consistent with the spirit of Resolution 19/2016 / NQ-CP of the Government's Resolution 35/2016 / NQ-CP on support and development of enterprises to 2020.

According to Mr.ÂuAnh Tuan - Deputy Director of Supervision and Management of Customs Department, in the past few years, temporary import for export operations, especially re-export trades through the Northern border gates have been carried out not in accordance with the nature of Commercial Law which regulates that domestic enterprises only handle freight services across borders for foreign traders. However, in fact, Vietnamese traders are making these services for commissions. As a result, there are a lot of shortcomings in the management of temporary import for export operations.

Recently, the Ministry of Finance also co-operated with the Ministry of Industry and Trade, the chair Agency, in the process of building the foreign trade Law with the aim of putting this activity on the right track.

Currently, Customs authorities are managing operations of temporary import for export enterprises, basically, similar to other types of export and import trades. Therefore, trading goods temporarily imported for export are controlled under risk management principles and based on information selected at the time of conducting Customs procedures.The process is performed automatically via the electronic database system of Customs after the system automatically analyzsCustoms declarations. When the Customs declaration is assigned to the Green channel, the goods are on clearance. Customs authorities only suspend the clearance of goods for actual inspection when there is a sign of violation. When the Customs declaration is assigned to the yellowchannel, Customs records will be inspected. The goods will be released if the enterprises submit appropriate Customs documents and there is no additional source of breach. If the Customs records are in doubt or violated, the goods will be directed through the Red channel and be physically inspected. The liquidation of the goods only continues if Customs authorities announce that there is no sign of violation.

Regarding Customs supervision of goods temporarily imported for re-export business, all business goods temporarily imported for re-export are monitored from the time they enter until re-exported out of the territory of Vietnam. The supervision of Customs authorities is regulated in the legislation which includes: Direct supervision of Customs officers; Customs supervision by Customs seals; supervision via other technical methods (detailed descriptions photography ...). In fact, Customs supervision by Customs seals is applied to the storage and delivery of goods within the territory of Vietnam. Direct supervision byCustoms officers is only implemented to transfer or split a container for shipping and exporting. Bulky, super-sized and super-weighted goods which are unable to be supervisied by Customs sealing method, are carried out by other techniques such as detailed description, photograph etc

By Ngoc Linh/ Thu Phuong

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