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Proposing to clear the obstacles of the C/O requirement for imported automobiles

08:55 | 23/12/2016

VCN- The Hai Phong Customs Department is facing obstacles in the implementation of the direction of the Ministry of Finance on requesting enterprises which import automobiles under Chapter 87 to submit Certificates of origin (C/O) at the time of carrying out Customs procedures (under Dispatch 16875/BTC-PC).

proposing to clear the obstacles of the co requirement for imported automobiles
The Hai Phong Port Joint Stock Company and the Hai Phong Customs Department propose to clear the obstacles of the C/O requirement for imported automobiles Photo: T.H

According to the Hai Phong Customs Department, pursuant to Article 13 of Decree 19/2016/ND-CP detailing the provisions of the Commercial Law on origin of goods, there are 5 cases where the C/O of imports must be submitted to the Customs.

That is “Goods which originate from a country or group of countries granted by Vietnam tariff and non-tariff preferences according to the provisions of Vietnam’s law and the international treaties which are signed or acceded by Vietnam, if the importers wish to enjoy such preferences”.

According to the Hai Phong Customs Department, in the case where enterprises wish to enjoy special preferential tax rates, they will have to submit the C/O.

The second case “Goods which originate from countries granted by Vietnam preferential tax rates under Vietnam’s Most Favored Nations status on a reciprocal or unilateral basis. In the absence of the C/O, importers must commit that their goods originate from those countries and take responsibility before law for the accuracy and truthfulness of the commitment contents”. In this case without the C/O the business is allowed to import goods and must commit.

The third case, “Goods which are subject must abide with the import management regulations as per provisions of the Vietnam Law or the bilateral or multilateral international agreements which Vietnam and the country or group of countries that are the contracting parties”. According to the Hai Phong Customs Department, the current State management authorities have not issued the List of goods which are subject so must abide by the import management regulations as per provisions of the Vietnam Law.

The fourth case, “Goods which are announced by Vietnam or international organizations to be potentially causing harm to social safety, the community's health or environmental sanitation, and must be controlled”. For this case, the representative of the Hai Phong Customs Department said, the automobiles are not subject to this case.

The fifth case, “Goods which are imported from foreign countries announced by Vietnam to be currently subject to application of anti-dumping and countervailing tax, safeguard measures, tariff quotas or quantitative restrictions”. This is a provision which does not apply for automobiles.

Pursuant to the 5 cases under provisions of Decree 19 and the analysis above, the Hai Phong Customs Department said, businesses which import automobiles must submit the C/O in the case they wish to enjoy special preferential tax rate”.

On the other hand, according to the Hai Phong Customs Department, Joint Circular 03/2006/TTLT-BTM-BGTVT-BTC-BCA guiding the import of used motor cars of less than 16 seats under the Government’s Decree No. 12/2006/ND-CP, stipulated closely on the conditions of importing the automobiles, therefore the C/O requirement for imported automobiles is not necessary.

According to the reflection of businesses, for the used motor cars under Chapter 87 and the case of temporary import for re-export, businesses cannot present the C/O.

According to the Hai Phong Port Joint Stock Company, the C/O requirement to be presented by the business at the time of Customs inspection will cause a traffic jam in port areas. Especially, on average in 2 weeks a company has 1 shipment including 1.000 automobiles, so if this issue is not resolved, it will make difficulties for the import and export operation.

The Hai Phong Customs Department added, based on the data of the VNACCS, there are 598 automobiles which are not eligible for Customs clearance under the direction of Dispatch 1687, and 336 arrived automobiles which are registered with Customs.

proposing to clear the obstacles of the co requirement for imported automobiles Additional guidance at the submission time for C/O

VCN – The Ministry of Finance has issued an additional guidance when lodging a Certificate of Origin ...

Hence, the Hai Phong Customs Department proposes the C/O requirement when Customs examines the dossier only apply for businesses which want to enjoy the special preferential tax rate.

Related to the obstacles above, on December 20, a leader of the Division under the Customs Control and Supervision Department (under the General Department of Vietnam Customs) said, the Department knows the problems and gathers the information to report to the Ministry of Finance.

By Thai Binh/Hoang Loan