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Finding solutions to untangle problems in locally import and export

(CTT-Dong Nai) - On-the-spot import and export procedures have been implemented in Vietnam for many years, this is a regulation that businesses believe to be time-consuming and unnecessary costly. In addition, compared with other countries, the problems arising in the import and export of goods on the spot have also become obsolete.

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Enterprises carrying out customs procedures at Tan Cang Long Binh ICD 

Currently, the Ministry of Finance is collecting opinions from agencies and the business community on developing a circular to abolish all regulations on import and export locally according to Article 35, Decree No. 08/2015/ND-CP.

Wasting companies' time

Clause 1, Article 35 of Decree No. 08/2015/ND-CP specified that there are 3 groups of goods exported and imported on-spot, including: Goods ordered to be manufactured in Vietnam and sold to foreign collectives and individuals in Vietnam. Goods traded between domestic enterprises and manufacturers, enterprises in non-tariff zones. Goods traded between Vietnamese enterprises and foreign organizations and individuals that do not have a presence in Vietnam and are assigned by foreign traders to deliver and receive goods with other enterprises in Vietnam.

In reality, on-spot import and export activities have been taking place since 1998, the documents have been amended and supplemented on the basis of inheriting and completing existing regulations to ensure conformity with the actual trade activities, facilitating the trade of goods.

However, according to experts and businesses, through referencing to international experience, the nature of on-spot import-export activities specified in Decree No.08 is not called import-export activities because there is no movement of goods outside the country's border, and customs management areas but purely domestic transactions with the participation of foreign traders as intermediaries (performing domestic goods distribution and trading activities).

Mr. Nguyen Duy Hung, Vice Chairman of Dong Nai Import and Export Association, said that over time, the State has added more and more policies to simplify administrative procedures for businesses. However, for the manufacturing sector, the on-spot import and export activities still remain in place. According to Mr. Hung, at the moment, Vietnam is the only country in the world still implementing this procedure. Statistics showed that there are 1.8 million on-spot import and export declarations annually for manufacturing, exporting and even domestic manufacturing enterprises. This does not represent the fact that it is import and export because only when the goods are brought across the border, the import and export procedures are actually carried out.

“For import and export procedures for domestic enterprises, selling goods to export processing zones or even for small and low-value shipments, they still have to carry out import and export procedures, wasting time and efforts for customs officers as well as businesses. We believe that administrative reform and business facilitation have contributed to helping businesses develop, shortening the time to complete procedures is very necessary", said Mr. Hung.  

Amending regulations to make it more favorable for businesses

From the inadequacies in the past, the Ministry of Finance is currently submitting to the State for promulgation a decree amending and supplementing a number of articles of Decree No. 08/2015/ND-CP detailing and implementing the Law on Customs on customs procedures, inspection, supervision and control. In which, the issue of concern in this draft is the proposal to abolish regulations on the on-spot import and export.

Recently, the General Department of Vietnam Customs also had a workshop to collect opinions from agencies, departments and businesses on this issue. According to the leaders of the General Department of Vietnam Customs, the content of on-site import and export is not really consistent between the legal system on trade and foreign trade with the legal system on export tax and import tax. Therefore, to ensure the management of the State and favoring enterprises, it is necessary to amend. However, if changes or adjustments to regulations have existed for a long time, it will certainly affect the state management of customs, as well as the production and business activities of enterprises. Furthermore, it will cause arising problems between taxes and procedures need to be resolved…

Meanwhile, according to Mr. Tran Ngoc Liem, Director of the Vietnam Confederation of Commerce and Industry (VCCI) Ho Chi Minh City branch (VCCI HCM), the issue of business facilitation is always implemented by VCCI in coordination with related sectors. In particular, the focus is on making legal comments and improving the business environment, which has left significant positive impacts to the development of legal policies, especially those that have a direct impact on the enterprises and businesses. It is necessary to consider removing unnecessary procedures for enterprises such as on-spot import and export issues.

VCCI HCM also found the Member Council of VCCI Dong Nai. Through the activities of VCCI in general and its members in particular, there will be more significant recommendations and contributions to agencies and departments to continue to facilitate businesses. ​​

Author: Phan Anh

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