VCN - The contents related to the management of goods processed and manufactured for export, stipulated in Circular 38/2015 / TT-BTC and Circular 39 / 2018 / TT-BTC are being revised by the General Department of Customs. Many problems and shortcomings will be removed to aid businesses.
|Need to supplement legal regulations to ensure the customs management for the export processing enterprises|
|Amending the Decree, defining the criteria clearly for tax exemption for imported goods for export processing|
|Further completing Customs policies for processing and production for exports|
|Operations at Thuy An Customs Branch (Thua Thien Hue). Photo: N.Linh|
In terms of norms
In terms of consumption norms for manufacturing, Clause 1 of Article 55 stipulates that all enterprises engaging in export processing and production must submit actual norms when submitting their final statements. Point b2, Clause 4, Article 60 stipulates that if an enterprise has fled and gone missing and the customs office has no actual norms for tax determination, actual norms for similar goods of other organisations will be used.
When implementing the provisions in Clause 1, Article 55, there have been shortcomings for export processing enterprises in the electronic field such as Intel Co., Ltd., Fushan Technology Co., Ltd., Samsung Electronic Vietnam Thai Nguyen Company. Currently, companies are investing in building a system to exchange with Customs authorities (according to the provisions of Clause 1, Article 60). However, these enterprises are facing difficulties in submitting the actual norms. Due to the characteristics of electronics industry, there are many product codes, raw codes, norms with many levels, materials that can be substituted for each other; and in companies which have systems to manage technical norms, manage and monitor throughout the process of import - export – inventory of raw materials, supplies, semi-finished products, finished products; damaged products, but these systems can’t support the calculation of actual norms. Therefore, enterprises propose to be allowed to save technical norms and documents and data related to the determination of actual norms at enterprises and present them at request by Customs.
For Point b2, Clause 4 of Article 60, the provincial and municipal Customs Departments raised problems related to the selection of similar norms for tax determination in cases where enterprises have fled and gone missing. These Departments propose issuance of regulations on similar norms and conditions for determining similar norms.
Facing problems related to norms, the drafting board has reviewed and introduced a plan to solve difficulties for priority enterprises and electronic enterprises. Accordingly, priority enterprises will regularly exchange information of import - export - inventory with the customs system and consider amending and supplementing Clause 2 of Article 55 so priority enterprises are exempted from submitting actual norms and are allowed to save actual norms or technical norms and documents related to the use of goods at their enterprises and present them to the customs office when inspection
Regarding the similar norms, the draft Circular will specify the determination of similar norms for enterprises, which have fled and gone missing.
In terms of notifying manufacturing establishments and export contracts
The current regulations only stipulate that before importing the first shipment, enterprises are required to notify manufacturing establishments and make additional notification for changes.
There are problems arising, like when an enterprise which has operated as processing enterprise and is eligible for processing goods, after a period of operation, the enterprise carries out manufacturing activity at the same address of the factory that was notified when operating as a processing enterprise. In this case, does the enterprise have to notify about the manufacturing establishment? In addition, in the draft Decree amending Decree No. 134/2016 / ND-CP, there are many changes related to the customs regime of export processing and manufacturing.
In addition, the Customs agency currently does not have sufficient data to manage enterprises because there are enterprises notifying manufacturing establishments in paper documents and in forms in former regulations. Thereby, to modernise Custom management and supervision, all information of enterprises must be saved and monitored in the system. Therefore, this content will be revised in the direction of: revising the Form No. 20 (Form No. 12 / TB-CSSX / GSQL) and supplementing regulations on notifying manufacturing establishments as follows for the enterprises which have not notified manufacturing establishments according to the form prescribed in the revised Circular, they must notify manufacturing establishment to customs agency.
In addition, the General Department of Customs also reviewed and provided specific regulations on entrusted export manufacturing.
Procedures for transferring raw materials and supplies from processing into export manufacturing
Current regulations provide for customs procedures for materials imported for export manufacturing and procedures for materials of export manufacturing, to be brought to processing stages. But in fact, there are cases where enterprises have processing activity but then have the need to bring materials of processing activity to implement export manufacturing.
The problem is that Point d, Clause 1, Article 61 only stipulates the use of materials of export manufacturing for processing contracts but there is no reverse regulation. Therefore, the draft circular will supplement regulations on procedures for this activity.
Besides, the draft also stipulates clearly the selection of implementing customs procedures or not implementing customs procedures of export processing enterprises. The current documents stipulate that export processing enterprises and their partners are allowed to choose implementing customs procedures or not implementing customs procedures. In fact, export processing enterprises choose not to carry out the procedures but domestic enterprises choose to carry out customs procedures. Therefore, the export declarations of domestic enterprises that have carried out customs procedures have not met the regulations on on-spot export goods, so the customs agency must monitor and manage these declarations. Therefore, this issue is planned to be specified for unified implementation.
|Troubleshooting implementation of tax administration for goods processed and produced for exports
VCN - The General Department of Customs has provided specific guidance on problems related to tax policies ...
In addition, the General Department of Customs also studies to amend important contents related to ordering outsourcing overseas; procedures for handling waste, scrap and defective products; and procedures for leasing warehouse of export processing enterprises.
By N.Linh/ Huyen Trang