VCN- Talking to Customs News, Mr. Vy Cong Tuong, Deputy Director of Lang Son Customs Department, said that since August 20, many imported shipments have been stuck at Huu Nghi Border Gate and Tan Thanh Border Gate due to the sudden application new C/O form E by China.
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|The centralised inspection yard at Tan Thanh-Lang Son Border Gate. Photo: H.K|
According to Tuong, in the process of receiving imported goods dossiers, from 9 am on August 20, many enterprises submitted new C/O form E. Through the inspection, border gate customs units realised the inconsistency with provisions in Circular 36/2010/ TT-BCT of the Ministry of Industry and Trade.
According to enterprises, from August 20, the Chinese C/O form E issuer has issued a new form of C/O form E. Lang Son Customs checked the C/O submitted by enterprises and identified that the new C/O form E match with the form stipulated in Circular 12/2019/TT-BCT dated July 30, 2019 of the Ministry of Industry and Trade on rules of goods origin in the Framework Agreement on comprehensive economic cooperation between the Association of Southeast Asian Nations and the People's Republic of China.
However, this Circular 12/2019/TT-BCT will take effect from September 12, 2019. In particular, the C/O form E in Appendix II attached to Circular 12/2019/TT-BTC has some differences compared to the current C/O form. Therefore, border gate customs units have no basis to accept new C/O forms submitted by enterprises.
To better understand the issue, Customs news contacted Mr. Nguyen Van Dung who works at a broker specializing in customs procedures for enterprises engaged in import and export activities through Tan Thanh Border Gate. Dung said, on August 20, the Chinese competent authority issued the new C/O form E to enterprises different from the current C/O form. This new C/O form E is applied to shipments since August 20. However, when the customs broker submitted this new C/O to Vietnamese Customs authority, it was not accepted.
“The Customs Authority explained that Circular 12/2019/TT-BCT of the Ministry of Industry and Trade will take effect from 12 September, 2019. Therefore, if enterprises want to clear shipments, they should pay taxes in advance and then supplement C/O. When the Circular takes effect, enterprises will submit C/O according to regulations to enjoy tax refund and tax incentives,” Dung said.
The representative of Tan Thanh Customs Branch (Lang Son Customs Department) said that the Chinese authority applied the new C/O form E without notification so while waiting for instructions from relevant agencies, the branch directed enterprises to pay taxes in advance to clear the shipment and then supplement the C/O to enjoy preferential treatment. However, many enterprises disagreed.
Currently, enterprises submit C/O form E for all fruit shipments imported through Tan Thanh Border Gate to enjoy special preferential tax. This is an agricultural product that needs to be cleared quickly, so this regulation is causing concern for enterprises importing goods from China.
|New C/O form E issued by Chinese authority since August 20.|
By Dao Le/Ngoc Loan