VCCI Helps Enterprises Resolve Customs Procedures

Aiming to create the most favourable conditions for import and export activities as well as for foreign direct investment capital attraction, Vietnam Chamber of Commerce and Industry (VCCI) and the General Department of Customs recently held two dialogues with businesspeople, one in the north and another in the south, to understand and resolve difficulties in customs procedures for the business community in Vietnam.

 

 

The customs sector has important roles in carrying out social and economic targets of Vietnam. The relationship between customs authorities and enterprises has constantly improved and heightened in the spirit of cooperation and assistance. Mr Le Manh Hung, General Director of General Department of Customs, said the customs sector has obtained certain achievements, especially shortening the customs clearance duration and streamlining import and export procedures. Customs documents have been simplified, intermediary stages eradicated, and clearance time has been shortened to one hour.

The General Department of Customs and local customs authorities periodically organise meetings with enterprises, opened telephone hotlines from the general department to departments and offices to resolve difficulties and eliminate red tape, and set up workgroups to resolve requests and help enterprises work through import and export difficulties. The General Department of Customs also set up public relations offices and applied one-door paperwork settlement at the general department headquarters and its affiliates.

The customs sector is striving to carry out World Bank-funded projects to modernise the sector and better serve enterprises, as well as management work. The sector has piloted e-customs clearance in Hai Phong and Ho Chi Minh City. Mr Hung added that e-customs clearance will be applied in other localities where the infrastructure and human resources are available.

The sector also carried out commitments and international common practices in customs such as localisation of customs standards in international conventions Vietnam joined, such as Kyoto Convention, GATT Price Agreement, HS Convention and ASEAN and APEC customs regulations.

 

 

The Law on Tax Management took effect from July 01. Accordingly, the valid time for document application is 45 days before the date of tax refund. Customs authorities have the right to check taxes in case they discover violations. Customs declaration violators can be fined from VND200,000 to VND10 million. Enterprises reflected that the legal regulations are inconsistent, tax payment procedures and confirmation by treasuries and banks remains slow, causing certain losses for enterprises. Sometimes, enterprises and customs authorities are in conflict on the use of the tax code.

Ms Hoang Thi Mai, a representative of Song Hong Technology and Trade Company, said her company imported a type of high tech product, a special machine for hydropower plants in Vietnam that Vietnam cannot make, from the EU and the US. She said current regulations state that the import tax rate is 0 per cent. However, while Hai Phong customs authorities levy the 0 per cent tax, several others said the product was a pump and imposed a 30 per cent tax rate. Also regarding this issue, a representative from LG Electronic said the introduction of a new regulation by customs authorities to raise tariffs on regulatory air compressors from 0 per cent to 10 per cent is irrational. He said in the integration context the tax rate on electronics and electric refrigeration devices will be lower. The US, Canada and China impose very low tariffs on these products. Meanwhile, the Ministry of Finance also decided the tax rate on air compressors is 5 per cent, to assist local production. He proposed the General Department of Customs review the 10 per cent tax rate on regulatory air compressors. Answering these questions, Ms Dang Thi Binh An, Deputy General Director of General Department of Customs, affirmed the general department would not change the policy. Further, the categorisation of commodities to impose taxes is very difficult and can lead to different tax calculations among tax authorities. She promised the General Department of Customs will work with the Ministry of Finance and relevant organs to provide satisfactory answers to enterprises.

 

Many enterprises also complained about the red tape for customs authorities. Addressing the complaint, Ms An said the General Department of Customs has instructed customs offices to apply the most transparent professional processes to help enterprises track the activities of customs officers and report wrongdoings of customs officers to higher authorities. She affirmed that violating customs officers will be strictly punished and will possibly face dismissal.