September 24, 2020 17:25

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Circular developed to remove difficulties for enterprises in C/O submission

19:49 | 20/05/2020

VCN – A draft circular on C/O submission for import and export goods amid the acute respiratory infection caused by Coronavirus, is necessary and creates an urgent solution to remove difficulties for production and business amid the Covid-19 pandemic.

 

circular developed to remove difficulties for enterprises in co submission Customs sector removes difficulties for enterprises
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circular developed to remove difficulties for enterprises in co submission
Customs officers ofNoi Bai International Airport Customs Branch inspect import and export goods. Photo: N.Linh


C/O using e-signature and e-seal accepted

Regarding proposals of some competent agencies and organizations of partner countries that have signed free trade agreements with Vietnam and reflecting on the problems of enterprises, the Ministry of Finance has drafted a Circular stipulating the C/O for import goods amid the acute respiratory infection caused by the Coronavirus in accordance with commercial and management practices.

The Draft Circular introduces a number of important provisions such as: time of submitting C/O, form of C/O and application duration. 

Accordingly, the time of submitting C/O is planned that: Customs declarants shall submit C/O at the time of carrying out customs procedures to apply special preferential tax rates.

If there is no C/O at the time of carrying out the customs procedures to apply the special preferential tax rate, customs declarants shall submit it within its effective duration. Customs declarants shall declare at the MFN(most favored nation)tariffs or normal tax rates. When declaring and submitting C/O within the prescribed time limit, customs declarants will make additional declarations at the respective special preferential tax rates and be refunded the difference from the paid tax amount.

Regarding the form of C/O, the draft introduces specific regulations. For goods submitting C/O to apply special preferential tax rates, the C/O using electronic signatures and seal is accepted, provided that the competent agencies of exporting countries have notices of C/O issuance using electronic signature and seal and provide websites to search C/O or other forms to search C/O.

Customs agencies shall check the validity of C/O on the websites of the issuing agencies to apply the special preferential tax rates as prescribed and print a copy of the C/O from the websites for archiving.

In addition, the customs agency also accepts a copy of the C/O or scanned C/O provided that the competent authority of the exporting country must notify the use of the copy of C/O or scanned C/O and provides the copy of C/O or scanned C/O or other inspection methods to Customs agency to determine the C/O validity

Customs declarants submit a copy of C/O or scanned C/O to the customs agency. Customs agency shall base on these C/O or other inspection methods provided by C/O issuers to check the C/O validity to apply special preferential tax rates.

Regarding C/O to be submitted to customs agency as prescribed in Clause 2, Article 4 of Circular 38/2018 / TT-BTC, the draft circular stipulates: Customs declarants must submit the original C/O for Customs agency. If the customs declarants do not have the original C/O at the time of carrying out the customs procedures, they shall submit a copy of C/O or a scanned one.

Customs offices shall base on the copy or the scanned, customs dossiers, actual goods, the itinerary of consignments and other relevant information to verify the goods origin.

Regarding the application period, it is expected to apply from the time of outbreak of Covid-19 pandemic: from January 23, 2020 until the Prime Minister of the Socialist Republic of Vietnam or the World Health Organization (WHO) announces the end of the Covid-19 pandemic.

Ministries and agencies agree to solve problems

Based on the proposed contents by the Ministry of Finance, many ministries (Science and Technology, Construction, Defense, Public Security, Planning and Investment, etc.) agreed on the draft circular. Besides, the ministries also contributed more ideas suitable to reality.

For example, the Ministry of Planning and Investment said that, before the unpredictable developments of the pandemic, some countries applied solutions of social distancing and blockades, so that customs declarants could not submit C/O at the prescribed time. Therefore, the development of the circular providing for the C/O submission for import goods amid the acute respiratory infection caused by Coronavirus is necessary to facilitate enterprises to enjoy special preferential tax rates.

Besides, the Ministry of Planning and Investment proposes to supplement the subjects of application and time of submitting C/O.

According to the Ministry of Natural Resources and Environment, the issuance of the circular is necessary, creating an urgent solution to remove difficulties for production and business amid the Covid-19pandemic, however, it is necessary to further consider about the application time limit.

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Based on the comments of relevant ministries and agencies, the Ministry of Finance completes the circularto remove obstacles for enterprises.

The Circular has been submitted to the Ministry of Finance for signing the promulgation.

 

By N. Linh/Huyen Trang