September 21, 2017 21:18

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Modernization of warehouse management: Need to consider the actual context

09:29 | 26/08/2017

VCN- In order to promote the development of domestic logistics services as well as to take into account the difficult conditions of enterprises, the Ministry of Finance has recently reported to the Prime Minister a number of solutions to remove difficulty in the implementation of Decree 68/2016 / NQ-CP of the Government on conditions for trading duty-free goods, warehouses, sites of Customs procedures, gathering, inspection and supervision.

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The Ministry of Finance recommends many solutions to facilitate the warehouse and the place of operation. Photo: N.Linh.

Most warehouses and locations have met the conditions

According to the Ministry of Finance, in order to manage the warehouse to be modern, professional and tight, reducing the time, report papers, Decree 68/2016 / ND-CP has defined the minimum area to avoid inconsistence. Accordingly, the positions are located in port areas, border gates, and technology parks so as to orientate the centralized management and application of modern information technology in Customs inspections and supervision, facilitating the development of logistics services.

In order to have time to prepare, Decree 68/2016 / ND-CP allows businesses to have 1 year from 1st July 2016 to expand the area, equip the exhibit, workplace of the Customs, upgrade the surveillance camera system, build management software to connect with the Customs office. Till now, businesses have invested, upgraded infrastructure, information technology system. Accordingly, 100% of companies have monitored the system of import and export of goods by a computer, 100% of warehouses, places have ensured the workplace for customs offices, 100% of businesses have surveillance camera system.

However, for some criteria of the location of establishment and minimum area, warehouses do not meet these criteria. According to the review of the Ministry of Finance (under the General Department of Vietnam Customs), by 1st July 2017, there have been 338 stores and sites in operation nationwide. As for 326 out of 338 criteria (96.4%) of enterprises meeting the requirements of Decree 68/2016 / ND-CP, most of them are foreign invested enterprises, with great financial, potential and experienced in logistics and newly recognized logistics services; and 12 of 338 (equivalent to 3.6%) the remaining enterprises have not met the conditions on location or area.

For example, the Ministry of Finance said that according to Decree 68/2016 / ND-CP, the bonded warehouse must have an area of at least 5,000 m2 (including warehouses, yards, and ancillary facilities). Accordingly, the warehouse area must have an area of 1,000 m2 or more. For specialized bonded warehouses for storing one or several categories of goods subject to special preservation requirements, there must be an area of at least 1,000 m2 or a minimum cargo volume of 1,000 m2. Particularly for bonded warehouses located in port areas, there must be an area of at least 1,000 m2. Specialized bonded warehouses must have an area of at least 10,000m 2, and there is no warehouse space to be required.

In fact, according to a review by the General Department of Vietnam Customs, there were 4 of 146 bonded warehouses having 1000m2 but they did not meet the conditions of the minimum area of 5,000m2. However, all 4 warehouses had an area of more than 1,000m2 as stipulated in Decree 68/2016 / NĐ-CP, only lacking yards and auxiliary works.

Regarding the place of Customs clearance at the dry harbor, as stipulated in Decree 68/2016 / ND-CP, there must be a minimum area of 50,000 m2 or more. In fact, there were 3 of 14 locations for Customs clearance at inland ports that did not meet the required area as stipulated in Decree 68/2016 / ND-CP.

Regarding the inspection location for express goods, according to the provisions of Decree No. 68/2016 / ND-CP, the concentrated collection, inspection and supervision of express goods must be in the regional and international airport in accordance with an area of at least 5,000m2. Currently, there were 3 of 6 checkpoints which did not meet conditions of minimum area and location at the airport area as specified.

Suggestions for more time

In order to handle cases of warehouses and yards which have not yet met the criteria stipulated in Decree 68/2016 / ND-CP, the Ministry of Finance has reported and proposed to the Prime Minister for handling.

According to the Ministry of Finance, the modernization of warehouse management, location is necessary and urgent, however, to encourage the production and development of logistics services in accordance with the spirit of the Resolution 19-2017 / NQ-CP, Resolution 35 / NQ-CP of the Government, we should consider the roadmap as well as current difficult conditions.

The Ministry of Finance has proposed that, in the case where bonded warehouses are established before the effective date of Decree 68/2016 / ND-CP, a warehouse of 1,000m2 fully meets the conditions on the location, the place of work of the Customs office, the warehouse of infringing goods, the image of the surveillance camera and the software of import-export management connected to the customs but can not expand, it is still permitted by the Prime Minister for operation.

For 3 locations of Customs procedures at inland ports with an insufficient capacity of at least 50.000m2, the Ministry of Finance has proposed the Prime Minister to allow two cases to continue operation, including ICD My Dinh and ICD Gia Thuy. As for ICD Thuy Van of Phu Tho Coastal Transportation Limited Company, the Ministry of Finance has proposed to extend its operation until the end of 2018.

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Regarding the 3 express checkpoints not included in the airport area planning and the minimum size of Noi Bai International Airport, the Ministry of Finance said that it would encourage the investment units to ensure requirements according to current regulations. The Ministry of Finance has proposed the Prime Minister to allow businesses to continue operating. In addition, with non-prolonged warehouses that do not meet the location requirement, the Ministry of Finance has proposed to continue operating until the end of 2018. After the deadline, the company has not yet moved to the new location, the operation shall be terminated as prescribed.

By Ngoc Linh/ Hoang Anh