VCN - At the Dialogue Conference with Korean Enterprises held on July 1, Dong Nai Customs Department answered many questions from Korean enterprises on C/O issuance, imports of used technology lines, tax policies for processing raw materials.
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Dong Nai is a popular destination for Korean enterprises
At the conference, Director of Dong Nai Customs Department Phung Thi Bich Huong said under the direction of the Government and the Ministry of Finance on administrative reform to reduce clearance time and facilitate trade, Dong Nai Customs Department has always actively improved the customs institutions and laws.
Dong Nai Customs Department is always one of the leading units in participating in the development of draft documents. Thereby, the Department has reflected difficulties, obstacles and shortcomings of enterprises to the drafting committee for consideration and development of the legal provisions to solve those difficulties.
Besides, the General Department of Customs also actively instructed and coordinated with ministries and sectors to implement the National Single Window, ASEAN Single Window and trade facilitation. So far, 13 ministries have joined the National Single Window and 173 administrative procedures have been implemented via this window, significantly facilitating enterprises.
For ASEAN Single Window, from January 1, 2018, Vietnam officially exchanged electronic C/O Form D with four ASEAN countries, namely Singapore, Malaysia, Indonesia and Thailand, and piloted the exchange of C/O form D with three countries Brunei, Cambodia and the Philippines.
Customs also actively coordinated with ministries and sectors to reform specialized inspection for imported and exported goods. Up to now, 13 ministries and agencies revised and supplemented legal documents on specialized inspection, cutting 5,279 items subject to specialized inspection.
Customs also promoted the application of information technology to strengthen management capacity. At Dong Nai Customs Department, the automated system for customs management at warehouses, yards and ports has been deployed to all ports and bonded warehouses and CFS warehouses. In the future, the General Department of Customs will continue to upgrade towards integrating information technology applications to facilitate users.
The e-tax payment project was also effectively implemented with 39 banks participating in the collection with Customs, accounting for 93% of the total Customs revenue, helping taxpayers pay taxes anytime, anywhere, by all means with internet connection, reducing tax payment time and customs clearance time.
Chairman of the Korean Investors Association in Dong Nai (KIAD) Park Hyun Bae, said Dong Nai is a popular destination for South Korean investors. This is expressed by more and more Korean companies investing in Dong Nai. Accordingly, companies investing in Dong Nai have stable production activities and increased their investment capital.
Mr. Park Hyun Bae also affirmed that KIAD will continuously cooperate with relevant agencies in Dong Nai by collecting comments from more than 400 Korean investors in Dong Nai to best support Korean traders during their investment in Dong Nai.
Removing problems on C/O and imports of used machinery
Responding to a question about specific regulations on importing used technology lines, Dong Nai Customs Department said that according to Decision 18/2019 / QD-TTg, customs office only makes customs clearance when the import dossier and prescribed documents are submitted and the inspection certificate of used technological lines. The assessment of used technological chains is implemented by the Ministry of Science and Technology in coordination with ministries and ministerial-level agencies to recognize and publicize the list of inspection agencies which have been designated and recognized on the electronic portal of the Ministry of Science and Technology.
Accordingly, enterprises can access the electronic portal of the Ministry of Science and Technology to select a designated inspection agency to verify their imported goods.
Mr. Park Hyun Bae raised a question if production lines are assessed by a certificate by a Korean inspection agency, whether Vietnamese inspection agencies will base on this certificate to confirm or not?
Answering this question, Mr. Nguyen Phuc Tho, Deputy Director of Dong Nai Customs Department said that this is the function of inspection agencies. However, businesses can provide documents related to equipment and lines to the inspection agencies.
An enterprise raised a question on imports of ship spare parts (manufactured for more than 10 years) for repair in the form of temporary import for re-export under customers' requests, can the enterprise re-export these goods to the foreign customers and if the enterprise wants to do this business, what regulations should be referred to?
According to Dong Nai Customs Department, based on the Law on Foreign Trade Management No. 05/2017 / QH14 and Decree 69/2018 / ND-CP, the enterprise is allowed to temporarily import for re-export of spare parts without contracts to repair ships at the customer’s request with condition that these goods are not on the list of goods banned from import issued together with Decree No. 69/2018 / ND-CP.
Another enterprise also asked about tax policy for outsourced goods. Accordingly, the imports of raw materials under processing contracts with foreign traders are exempt from tax. Accordingly, if the enterprise does not want to apply tax exemption for outsourced goods, can the enterprise submit C/O and apply FTA after customs clearance?
Dong Nai Customs Department said that according to the provisions of the Law on Export and Import Tax No. 107/2016 / QH13, Circular 38/2018 / TT-BTC, goods as raw materials for processing and production is exempted from import tax at the time of customs clearance.
The enterprise may submit C/O at the time of customs clearance or at the time of carrying out procedures for changing the use purpose. C/O is only applied to enjoy special preferential export tax under the preferential tariff agreements for goods which are raw materials imported for initial production in the case that they have not been put into production but have had the use purpose changed for domestic consumption.
An enterprise raised problems on different signers so its C/O was not accepted. According to this enterprise, due to some problems of the ASEAN secretariat office, the changed contents have not been sent to the General Department of Customs. However, this enterprise said that the C/O re-issued from the resubmission of the main C/O was not accepted.
The enterprise said that, according to Korea Industry and Trade Association where the C/O is issued, in case of no substantive changes such as HS codes, the revised C/O will not have changes on date of issue or reference number and reference code.
Therefore, enterprises asked that the inspection standard of Vietnam Customs in case of no substantive changes in the content such as HS codes, is the reference code of the revised C/O will have to be changed unconditionally?
Dong Nai Customs Department said that based on Appendix V issued with Circular No. 20/2014 / TT-BCT stipulating the implementation of the Rules of origin in the Agreement for ASEAN-Korea Free Trade Area, one C/O set only carries a reference number and only included 1 original and 2 carbon copies. When the C/O has errors, the enterprise can contact the C/O issuer to handle the errors in one of the two ways specified in Appendix V above.
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The new C/O to replace the previously issued C/O must also have a new reference number. If the new C/O has the same reference number of the previously issued C/O, the customs office will verify the validity of the new C/O according to Circular 30/2018. / TT-BTC.
By Nguyen Hien/ Huyen Trang