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VASEP proposes shortcomings related to Circular 39

10:24 | 16/08/2018

VCN- Vietnam Association of Seafood Exporters and Producers (VASEP) says that the regulation on not allowing the authorized inspection for exported goods is causing shortcomings for enterprises, so that it proposes the General Department of Vietnam Customs to consider this issue.

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vasep proposes shortcomings related to circular 39
Processing export tuna at Binh Dinh Seafood Company. Photo: Thu Hoa

According to VASEP, enterprises recently have complained on shortcomings due to the regulation on not allowing the authorized inspection for exported goods stipulated in Circular 39/2018/TT-BTC dated 20th April 2018, amending and supplementing a number of articles in Circular 38/2015/TT-BTC of the Ministry of Finance.

Enterprises said that previously, they registered Customs declaration at provincial Customs branch where their factories are located, and then they submitted a document to request this Customs branch to transfer to the Customs branch at exit port to carry out the authorized inspection.

However, since 5th June 2018 (the effective date of Circular 39/2018/TT-BTC), Customs branches have refused to carry out the inspection, because Clause 19, Article 1, Circular 39/2018/TT-BTC amending Clause 9 Article 29 Circular 38/2018/TT-BTC, stipulates that “the physical inspection as per provisions in this Clause only apply to bulk goods and goods imported for processing and manufacturing export goods, goods imported by processing enterprises …”.

Enterprises said that this regulation caused difficulties for enterprises. Normally, the finished products of manufacturers are stored at warehouses in Ho Chi Minh City and exported at Cat Lai Port, VICT Port. Even some shipments exported to markets require irradiation treatment. such as for goods exported to the US market, where it requires nearly 100% of marine products to be radiated, so that enterprises need to gather goods at cold storage in Binh Duong and Ho Chi Minh City, because only these two provinces have the irradiation plants.

According to VASEP, it is not 100% of irradiated containers that are subject to inspection, but the number of export containers subject to irradiation is large (there are enterprises having at least from 30 to 40 containers or more per month). Thus, the enterprises cannot declare all containers at Border Gate Customs branch, because when the declaration is completed, the enterprise just know which container is subject to an inspection and which container is not. If all enterprises must carry out Customs declaration for all goods containers, a backlog will be incurred.

However, in case where the shipment is classified into Red Channel, after goods are gathered at Ho Chi Minh City, because they are not allowed to apply for the authorized inspection, the enterprise must return goods to the local Customs branch to carry out Customs declaration and then bring goods to Ho Chi Minh City for the exports, consuming time and cost for enterprises.

According to the opinions of enterprises, the plan for enterprises to register Customs declaration for the direct inspection at Ho Chi Minh City Department is not appropriate due to arising new procedures. Because many shipments are manufactured from imported raw materials for export, the imported raw material was declared at local Customs branch, so when being exported, they must be declared at local Customs Branch to facilitate the monitoring of the import-export and inventory between enterprise and local Customs branch as well as the making the final settlement report.

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As per the regulation, enterprises are still allowed to carry out the export declaration at Border Gate Customs branches, but they have to notify to the Customs branches where they imported raw materials for export production before carrying out the export declaration at Border Gate Customs Branches, and these procedures are quite complicated, so that this method is not appreciated.

Thus, VASEP suggested the General Department of Vietnam Customs permit local Customs Branches implement authorized inspection as in previous times to solve current shortcomings for seafood enterprises, abolish unnecessary procedures, enhance competitiveness and improve the business environment.

By Le Thu/Ngoc Loan