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THERE ARE STILL MANY PROBLEMS FOR SPECIALIZED INSPECTION

VCN- On 18th May, at the meeting with the delegation of the Central Institute of Economic Management for specialized inspection, the Customs Department of Ho Chi Minh City reflected and recommended some inadequate content affecting the time of customs clearance for export-import goods.

there are still many problems for specialized inspection
A Customs officer of the Customs Department of Ho Chi Minh City is checking imported goods. Photo: T.H.

Deputy Director of the Customs Department of Ho Chi Minh City Dinh Ngoc Thang said that related to the inadequacies in the specialized inspection for import and export goods, the Customs Department of Ho Chi Minh City collected actively problems to report, recommend many competent authorities. In particular, they reported the status of specialized inspection and recommended to Deputy Prime Minister Vu Duc Dam in the meeting with the Customs Department of Ho Chi Minh City in August 2016.

In September 2016, a report on the current status of specialized inspection for export and import goods with the delegation of National Assembly of Ho Chi Minh City in the city to recommend to the functional agencies to adjust and supplement the inadequate regulations of specialized inspection soon; November, 2016, the unit advised the City People’s Committee issue document 6566/UBND-KT dated on November 16th, 2016 directing the relevant agencies of the city to strengthen coordination in implementing the specialized inspection for the export and import goods at HCM City.

In addition, the Customs Department of Ho Chi Minh City and the Customs Branches directly under the Department organized to meet, dialogue with the business community. Since February 2017, they has made plans to meet regularly and periodically 400 large enterprises with large export turnover and large State budget payment to listen to the reflection of the enterprises on the difficulties, inadequate related to importing and exporting activities, including problems about specialized inspection, to take measures to remove them within their competence and propose to functional agencies when these difficulties were beyond their competence.

According to the Customs Department of Ho Chi Minh City, although there were many recommendations, some specialized management agencies noted, there were changes in policy mechanism, regulations on specialized inspection have not been adjusted to change the method of specialized inspection basically as required by Resolution 19/2016 and Resolution 19/2017 of the Government, such as: List of specialized inspection goods before customs clearance has been still too much; The risk management principle of specialized inspection has not been implemented; the specialized inspection results of the famous exporters in the export country, the inspection and analysis results of the advanced countries have not been recognized; there have been still situations that a product must be made procedure by many agencies of specialized inspection…

At present, there have been too many legal documents on specialized management and inspection causing many difficulties for the enterprises and the Customs. According to the reviewing result, there were 414 legal documents related to specialized management and inspection by April 2017.

In addition to prolonging the customs clearance time, the above-specialized inspection for imported goods has become a burden on cost of the enterprises actually, and, if the opportunity cost of the enterprises, the cost of relevant agencies and organizations were calculated, the total social cost for specialized inspection of export -import goods would be extremely large, but, the result of violation detection in specialized inspection would be very small, only 0.035% – 0.47%.

The Customs Department of HCM City will continue to work with the specialized inspection agencies and the port businesses, and to enhance and expand the two existing specialized inspection sites in terms of scale as well as quality of operation, to complete specialized inspection information portal to ensure the management requirements and continue to reduce the customs clearance time at some stage to facilitate the enterprises.

According to a representative of the Central Institute of Economic Management, from the recommendations of the Customs Department of Ho Chi Minh City for specialized inspection, the specialized management Ministries have received and corrected many related issues. However, in reality, the enterprises still face many problems in specialized management. This is also the content that the Government is very interested in and put forward in the content of guidance in Resolution 19.

At the meeting, the delegation continued to acknowledge many inadequacies and problems in specialized inspection proposed by the Customs Department of Ho Chi Minh City.

By Le Thu / Binh Minh

Source: http://customsnews.vn/

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VTIP – TOOL FOR TRADE FACILITATION

VCN- The establishment of the Vietnam Trade Information Portal (VTIP)  does not only meets Vietnam’s commitments under Trade Facilitation Agreement (TFA) of the World Trade Organization (WTO), but also is an effective tool to further facilitate the parties relating to import and export and transit operations with Vietnam.  

vtip cong cu tao thuan loi cho thuong mai

Customs officers of Port Border Gate Customs Branch (Nghe An Customs Department) supervise import and export goods Photo: H.Nu

Strong promotion from Customs

According to the World Bank’s recent business environment report for 2017, Vietnam rose 9 places to the 82nd rank out of 190 economies. Particularly for the cross-border trade index relating to import-export operations; Customs clearance; and regulations on specialized inspection, Vietnam increased 15 places, from the 108th rank in 2016 to the 93rd in 2017. Compared to other countries in the ASEAN region, Vietnam is in the top four countries in the business environment. However, compared to countries with favorable business environment such as Singapore, Thailand and Malaysia, the gap between Vietnam and these countries is still quite large. Therefore, the Government Resolution 19-2017/NQ-CP set a target for Vietnam for 2017- 2020 to strive to reach a level at least equal to the average of ASEAN- 4 countries on the criteria of improving the business environment.

The representative of International Cooperation Department (General Department of Vietnam Customs) said that in order to implement the provisions of law as well as international commitments, in the recent time the Customs has gradually completed the legal system during the negotiation of TFAs or new FTAs. Besides, the Customs regularly organizes consultations and dialogues to solve problems of the business community; Comprehensive application of modern information technology in Customs procedures such as implementation of VNACCS/VCIS nationwide; Pilot implementation of supervision system at seaports; Connection between the Customs and Treasury, and Bank to simplify Customs procedures, facilitate businesses. In addition, the Customs also actively coordinate with ministries and sectors to implement administrative procedures for export and import goods on the Single Window, thereby creating maximum conditions for business activities, export and import of enterprises.

In addition, the Customs abandoned 19 procedures and simplified 46 procedures; Reduced many Customs documents; Allowed enterprises to submit electronic dossiers; publicized and reduced time to examine Customs dossier and physical inspection. In particular, the General Department of Vietnam Customs collaborated with the WB to develop VTIP to provide a complete and comprehensive reference source of information relating to import and export, the tariffs applied to import goods and details of process and procedures and forms to meet specialized inspection requirements. The purpose of VTIP is to help exporters, especially small and medium size enterprises know the process and procedures relating to their operations, thus saving time and operating expenses. In addition, VTIP will also play as an important role in assisting the Government towards simplifying and legalizing relevant administrative procedures.

Ready for operation

As chair of the negotiation of the TFA (approved in Bali, Indonesia in November 2014), the Ministry of Finance specifically the General Department of Vietnam Customs submitted to the National Assembly for ratification of the revised Protocol at the 10th session of the 13th National Assembly on November 26, 2015. On November 26, 2015 the National Assembly issued Resolution No.108/2015/QH13 approving of the Protocol to amend the Marrakesh Agreement to establish the WTO. In October 2016, the Prime Minister issued Decision No. 1899 /QD-TTg on the establishment of the National Steering Committee for ASEAN Single Window, National Single Window and Trade Facilitation (Referred to as the National Steering Committee). In November, 2016 the Government issued the Action Plan to implement the TFA under Decision No.1969/ QD-TTg. On February 22, 2017 the WTO’s TFA took effect after being approved by two-thirds of the 164 WTO member countries.

As committed in the TFA, each member country, including Vietnam, needs to build a website to publicize and provide information. The development of this website not only meets Vietnam’s commitments under the TFA but also is an effective tool to further facilitate the parties relating to export, import and transit operations with Vietnam. It is also a tool to publicize policies as well as in international commitments that Vietnam joints and keep with the trend of World Customs – digital Customs 2016.

In order to help Vietnam implement well the commitments in the TFA, the WB supported Vietnam’s Government to establish and improve capacity of the National Steering Committee and build VTIP. The development of the VTIP has carried out since January 2016 at the General Department of Vietnam Customs and being consulted by PM Group under the WB. Currently, contents have been posted, with nearly 2,000 contents relating to legal regulations, process and procedures and export and import operations. In parallel with the development and posting the contents, the consultancy unit trained for officers of the General Department of Vietnam Customs to transfer technology to ensure the operation and update VTIP’s contents after the transfer, said by Mr. Chris Lewis Jones, the Head of Project Consulting and Management Team of VTIP.

In order to be ready for the opening and transferring the VTIP to the General Department of Vietnam Customs, to be expected to implement in early June 2017, preparations are being urgently completed. Coordination mechanisms among relevant parties, including ministries and sectors which have regulations relating to import and export operations published on the VTIP, are being developed and agreed among the parties to ensure that the contents posted on the VTIP are always updated and accurate. Currently, a review of the content posted on VTIP is being conducted by ministries and sectors under the direction of the General Department of Vietnam Customs to prepare the opening, said by Mr. Chris Lewis Jones.

Mr. Chris Lewis Jones added, “VTIP is designed to be one Single Window information post, providing information relating to Vietnam’s export and import in a accessible, logical and useful way for importers and exporters to access basic information about the necessary regulations and procedures for import and export and transit. VTIP is a useful tool to assist the Government and other relevant parties in reducing, modernizing and simplifying the import and export declaration procedures in line with international practices. With rich and comprehensive contents, VTIP is expected to save time and expense for importers and exporters in particular and contribute to facilitating and promoting Vietnam’s trade growth in general.

By Hong Nu/Ngoc Loan

Source: http://customsnews.vn/

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ELECTRONIC INVOICES MUST BE USED FROM 2018

VCN- The target of the Finance is that by 2020, electronic invoices must be used with 90% of businesses or 90% of goods traded by electronic invoices on the basis of the roadmap from 2018.

phai su dung hoa don dien tu tu nam 2018
Tax operations at the Hanoi Taxation Department. Photo: Thuy Linh.

That is the provision of the draft Decree replacing Decree No. 51/2010 / ND-CP of 14th May 2010, and Government’s Decree 04/2014 / ND-CP of 17th January 2014 regulating invoices for sales and service provisions which have just been finalized by the Ministry of Finance.

Accordingly, from 1st January 2018, the subjects use electronic invoices / electronic invoices with tax codes for the sales of goods and services as follows: Enterprises and State units use electronic invoices from the time they receive their tax codes periodically and transfer invoice data to the tax offices (enterprises which are established under the Law in industrial parks, economic zones or hi-tech zones; enterprises and banks with charter capital of 15 billion vnd or more); enterprises and organizations which use electronic invoices have tax codes (some newly established companies, enterprises and organizations which purchase invoices from tax offices such as enterprises which violate regulations on management and use of invoices, enterprises at a high risk according to the notice of the tax authorities and other organizations and individuals subject to tax invoices before 1st January 2018 must use electronic invoices with codes of tax authorities as reported by the tax authorities).

From 1st January 2019, the tax authorities will apply electronic invoices for 30% of the remaining enterprises and organizations. From 1st January 2020, the tax authorities will apply electronic invoices for 80% of enterprises and organizations with tax codes. At the same time, the tax authorities will start implementing electronic invoices for business households with annual revenue of 3 billion vnd or more.

Reportedly, the Taxation has stepped up the electronic tax declaration and payment by connecting the tax system with the tax service providers through the Internet (T-VAN). As a result, by the end of March 2017, out of 581,875 businesses operating, there were 576,056 enterprises (accounting for 99%) filing tax declaration electronically and 565,099 enterprises (accounting for 97%) registering electronic tax payment at commercial banks.

Thus, nearly 100% of businesses applying online tax declaration is the basis for the Taxation to speed up the application of electronic invoices. In the coming time, the General Department of Taxation will continue to coordinate with related units to hire information technology services with service providers in order to expand the application of electronic invoices with the authentication code of the tax authorities.

The use of electronic invoices can bring many benefits. Till now, there have been 656 enterprises making electronic invoices with the number of 277.98 million invoices.

Businesses using electronic invoices nomarlly have a large number of invoices per month (over 3 million invoices), have information technology infrastructure in important industries and fields. These are large enterprises (located in the top 500 large enterprises of the country) providing direct goods and services to consumers.

According to the assessment of the tax authorities, all provinces and cities in the country basically have used electronic invoices, but mainly in the two key cities such as Hanoi and Ho Chi Minh City. Ho Chi Minh City. They are also large enterprises operating in the field of trade, services, IT infrastructure with less risks.

According to Mr. Nguyen Van Phung, the Director of the Department of Large Enterprises, under the General Department of Taxation: “In the first pilot phase, electronic invoices have received the support of many businesses operating in the fields of aviation, banking, electricity and telecommunications. At present, the tax office has a mechanism to encourage enterprises to use for long-term expansion in the country. To a certain stage of development, the tax authorities will require enterprises to use electronic invoices instead of using paper invoices”.

The common view of many enterprises through dialogues with the tax office has shown that the implementation of electronic invoices not only brings companies tangible value such as cost and time savings but enterprises can also receive other intangible values ​​which can not be converted into money It is the opportunity value when enterprises provide customers with modern, convenient and fast services, contributing to raising the brand value of enterprises.

Since 2014, the Ministry of Finance has encouraged some enterprises to use electronic invoices instead of paper invoices, especially enterprises which have information technology infrastructure and comply with the Tax Law such as Electricity of Vietnam (EVN), Vietnam Posts and Telecommunications Group (VNPT), Military Telecom Corporation (Viettel), Vietnam Airlines Corporation (VNA) and Saigon Railway Company.

By Minh Anh/ Hoang Anh

Source: http://customsnews.vn/

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BUSINESSES LOOKING FORWARD FOR CUSTOMS CLEARANCE PROCEDURES TO BE MORE OPEN

VCN- Although the customs sector has achieved many results in reforming procedures and the spirit of service of customs officials and employees are recognized by the business community, appreciated, but still entangled in the process of customs clearance of goods related ministries that businesses want to be resolved thoroughly.

 

businesses looking forward for customs clearance procedures to be more open
Customs supervision at the warehouses (Yen Phong Industrial Zone – Bac Ninh). Photo: Thu Trang.

Increased coordination

Resolution No. 19-2017/NQ-CP by the Government on continuing to implement the main tasks and solutions to improve the business environment, enhance national competitiveness in 2017, orientation to 2020 requires to shorten the time for carrying out customs clearance of goods across borders to 70 hours for export goods, 90 hours for import goods.

However, according to the Vietnam Logistics Association (VLA) statistics in 2016, the time to clear export procedures is still high, up to 108 hours and 138 hours for imported goods. Time is still high obviously not entirely in the Customs sector, because customs clearance time for a customs declaration/shipment at customs only accounts for about 28% of customs clearance time and not exceed 1 business day. The remaining time belongs to enterprises and related agencies, in which specialized management agencies account for 72% of goods clearance time.

In this regard, Mr. Nguyen Tuong, Deputy Secretary General of the VLA, said that to reduce the clearance time, the improvement of specialized inspection procedures is a key issue, otherwise the efforts of the Customs will be heavily affected. A trade expert also said that in the specialized inspection, there are agencies, ministries and industries also “threaten” the businesses by issuing the long list of procedures that affect customs procedures.

In the report “Assessing the reform of customs procedures: the satisfaction of enterprises in 2016”, conducted by Vietnam Chamber of Commerce and Industry (VCCI), some enterprises said that the inspection issue remains too many overlapping legal documents, there is no close coordination between the customs and specialized management agencies, many licenses etc. Therefore, many businesses reflect the urgent matter such as, the goods being inspected takes time, cost when the products purchased by enterprises have to carry a quantity for inspection, sampling, the remaining goods are not enough supply under the contract. Or some companies said that the information required registration is unclear, causing companies to take time to re-disclose etc. These are the long-standing shortcomings of enterprises for specialized testing that require the agency to sit back and work together more closely.

Increase service

“Orientations for reforming administrative procedures of the Customs sector are on the right track, but there are still some documents and regulations related to customs clearance of goods due to lack of full participation of enterprises, so leaving some regulations that are not close to reality, leading to negative, causing trouble for businesses”, said Mr. Dang The Lung, General Secretary of Hai An District Association of Enterprises (Hai Phong).

Representatives of an import-export construction materials company in Nghe An said that although the customs clearance has applied electronic declaration, but at peak time, the system became overloaded, resulting in difficulties. In spite of this, the General Department of Customs has made a lot of directions on administrative procedure reform, but at the level of local departments and direct implementers, there are still some difficulties, particularly the attitude of the civil servants toward enterprises, even some of them do not consider enterprises as partners.

As the above difficulties, Mr. Phan Thong, General Secretary of the Vietnam Shippers’ Association, said that, besides the close coordination among branches, sectors and customs, there should be a strict monitoring mechanism, enhance capacity, level and awareness of cadres and civil servants of the whole industry. He also recommends to increase the compensation for customs officers because they have a lot of work, have to work overnight, even in the holidays like Tet holidays.

Along with the above issues, Ms. Dang Thi Binh An, Chairman of the Board member of the C&A Tax Consulting Co., said that the handling of complaints of enterprises should be improved, there should be separation to check, increased transparency and objectivity. Answering the written answers to businesses should be quicker and more frequent.

It can be seen that the efforts of the customs sector need to be further strengthened to meet the needs and requirements of enterprises, so that enterprises are the real partners and objects to serve. Of course, with the participation of the authorities, the political will of the Customs sector, there is a need to change the businesses’ operation with transparency and records, papers are clear so that ready to stand up to fight for misconduct when carrying out administrative procedures.

By Hương Dịu/ Huu Tuc

Source: http://customsnews.vn/

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ILLICIT COSMETIC PRODUCTS OF BILLIONS OF VND ARE DETECTED

VCN- Incorrectly declaring the name of the goods and breaking luggage seals to conceal prohibited goods are the tricks that perpetrators have used to smuggle cosmetics from abroad to Vietnam.

illicit cosmetic products of billions of vnd are detected
Illicit goods were seized by Customs officers. Photo: Q.H.

Upon the Official Telegraph No. 90 / CD-BCD of 13th July 2015, the General Department of Vietnam Customs has identified pharmaceuticals, cosmetics and supplementary foods as items on the list of key commodities to be strictly controlled. Thereby, the General Department of Vietnam Customs has requested the units to strengthen Customs control measures, promote international cooperation and inter-sectoral coordination to prevent violations in import, smuggling activities, illegal transportation of pharmaceutical products, cosmetics, supplementary foods as well as timely handling smuggling rings.

In order to concretize these instructions, the Customs force at all level shall strictly follow the process and procedures to closely inspect and supervise the shipments of cosmetics, pharmaceuticals and supplementary foods, and at the same time, collect and analyze information on suspicious import consignments, thereby determining the criteria, risk management, flow control and conducting actual inspections of high-risk shipments. In addition, the Customs force also needs to strengthen control at the border gates and areas of Customs operation, especially in the northern and southwestern border provinces. On the other hand, the Customs force has regularly coordinated with local authorities to fight, arrest and timely handle violations related to pharmaceutical products, cosmetics and supplementary food.

Throughout the struggle, the Customs force has detected dozens of violations related to pharmaceutical products, cosmetics and supplementary food on both land border and air. Notably, the situation of taking advantage of doing business in transit, forging Customs dossiers to smuggle cosmetics tends to increase, with many cases worth up to billions of vnd.

Typically, on 7th January 2017, the Customs Branch of Moc Bai Border Gate received the declaration of independent transportation (transit goods) of XITLO Logistics Co., Ltd (located in District 3, Ho Chi Minh City. ). The above shipment belonged to Customs declaration No. 500070700330 of 14th January 2017, container number OOLU 1937805 registered at the Customs Branch of Cai Mep port through Moc Bai border gate (Tay Ninh province). According to the Customs declaration of the company, the goods were household goods, including Kitchen shelves, kitchen floor mats, new 100%. The time of commencement of transportation from Cai Mep port was 14th January 2017 and the estimated time to Moc Bai border gate was 15th January 2017. However, on 17th January 2017, Mr. Le Phuong Minh (the representative of the company) transported goods to the supervisory area for Customs clearance at Moc Bai border gate. When Customs officers at Moc Bai border gate conducted procedures and process for the shipment, Mr. Minh was not present and left the goods behind. The shipment showed signs of breaking the seal of the shipping line and fake Customs seal. Accordingly, on 8th February 2017, the Customs force carried out physical inspections of the shipment and detected a large number of perfume, foreign wine and cigars which were worth about 8 billion vnd.

illicit cosmetic products of billions of vnd are detected

Then, on 17th February 2017, the Luggage Import Procedure Team (under the Customs Branch of Noi Bai International Airport – the Hanoi Customs Department) inspected and seized 32 parcels of cosmetics on a flight from Korea to Vietnam without any recipient, weighing 933.6 kg.

Not only did perpetrators deceive Customs officers through Customs declaration, but they also found many ways to smuggle cosmetics through the northern border area, especially the border province of Quang Ninh, including: Hair cream, shampoo and perfume which were detected by Customs officers on vehicles, trucks, even mixed with imported goods. In some cases, cosmetics were also gathered right near the border, so when the Customs officers seized illicit goods, they found it difficult to identify the owner.

For example, on 13th April 2017, the Customs Working Team – Border Guard at Bac Phong Sinh border gate discovered a man using hand carts to transport imported goods which were packed in cartons from China to Bac Phong Sinh, including 288 Aprilskin facial powder boxes; 1,920 Theskinface Lipsticks. Through the investigation, the owner of the illicit goods was identified as Mr. Bui Van Nam, born in 1997 (residing in An Tho, An Lao, Hai Phong). All goods had no legal documents in the area of Customs operation.

By Quang Hung/ Hoang Anh

Source: http://customsnews.vn/

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TAX DEBTS CAN BE PAID GRADUALLY IF THEY ARE GUARANTEED BY CREDIT INSTITUTION

VCN- If a business of tax debt is enforced but it cannot afford to pay the debt at once and propose to pay gradually, the tax debt will be paid within a maximum of 12 months from the beginning date of enforcement period for implementation of tax administrative decision with a guarantee of the credit institution.

tax debts can be paid gradually if they are guaranteed by credit institution

Customs officer of Pho Bang Customs Branch, Ha Giang Customs Department guides Tax policies for business Photo: T.Tr

It is guided by the General Department of Vietnam Customs before the request of Thien Hong Food Processing Joint Stock Company on the registration of import declarations during being enforced on tax debt payment.

According to the analysis of the General Department of Vietnam Customs, in Article 48 of Tax Management Law No. 78/2006/QH11 stipulates: “In the course of settlement of complaints or institution of lawsuits of taxpayers about tax amounts calculated or assessed by tax administration agencies, taxpayers shall fully pay these tax amounts, unless competent state agencies decide to temporarily suspend the execution of tax calculation or tax assessment decisions of tax administration agencies”.

In addition, in Clause 2, Article 3 of Law No.106/2016/QH13 (amending and supplementing Clause 4, Article 92 of the Law on Tax Administration) stipulates: “Tax enforcement measures may be postponed if the taxpayer is permitted by the tax authority to pay the tax debt by installments for a period not exceeding 12 months from the beginning of the tax enforcement period. The payment of tax by instalments shall be considered according to the taxpayer’s request, provided a credit institution offers a guarantee. The taxpayer shall pay late payment interest on the unpaid tax at 0.03% per day.

In Article 39 of Decree No. 83/2013/ ND-CP dated July 22, 2013 of the Government detailing the implementation of a number of articles of the Law on Tax Administration and the Law amending and supplementing a number of articles of the Law on Tax Administration stipulates: “The taxpayer is not able to pay the tax debts at once may pay them in installments over no more than 12 months from the effective day of the decision on taxation enforcement, provided that taxpayers has the tax debts guaranteed by a credit institution, and a commitment to pay tax debts and late payment interest to the state budget is made”.

Based on the above provisions, in the course of settlement of complaints, the Company still has to fully pay tax and late payment (if any) as per regulations. If the Company of tax debt is enforced but cannot afford to pay the tax debts at once and propose to pay gradually, the tax debt will be paid within a maximum of 12 months from the beginning date of enforcement period for implementation of tax administrative decision with a guarantee of the credit institution.

The conditions, dossier, competency, time of settlement and paying tax debt in installments are specified in Article 39 of Decree No.83/2013/ND-CP dated July 22, 2013, and Clause 3 Article 3 Decree 100/2016 / ND-CP dated July, 2016 of the Government and Article 134 of Circular 38/2015/TT-BTC dated March 25, 2015, of the Ministry of Finance.

By Thu Trang/Ngoc Loan

Source: http://customsnews.vn/

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STRENGTHENING OF COOPERATION BETWEEN CUSTOMS AND TAX AUTHORITIES

According to World Customs Organisation (WCO), at the invitation of Malta’s Presidency of EU and of the European Commission, Taxation and Customs Union Directorate-General, the WCO attended the High-Level Seminar on Strengthening of Cooperation between Customs and Tax Authorities.

strengthening of cooperation between customs and tax authorities

The event was hosted by the Government of Malta and counted with the participation of Directors General and senior officials of EU Customs and Tax Administrations and invited countries.

The Seminar was opened by the DG of Malta Customs, Mr Joseph Chetcuti, and by the Commissioner for Revenue of Malta, Mr Marvin Gaerty, and received inputs from the DG TAXUD, Mr Stephen Quest, and the Director Phillipe Kermod. The event also counted with the support from Academia that provided different perspectives and possible solutions for the challenges identified.

The WCO Director, Capacity Building, Ernani Checcucci delivered a speech on the importance of Customs and Tax Cooperation in the actual landscape and highlighted the fact that both Administrations face new challenges due to the rapid globalization of trade and financial systems, which brought new expectations from Government and societies in the fight of Illicit Financial Flows, organized crime, and Tax evasion. The Director highlighted the launch and promotion of the Guidelines for Strengthening Cooperation and the Exchange of Information between Customs and Tax Authorities at National Level, the discussions with G20 in the fight against Illicit Financial Flows, and the cooperation with OECD and IMF on relevant topics, such as Customs Valuation and Transfer pricing, Tax Transparency and Exchange of Information, e-commerce, and Performance Measurement.

The participants of the Seminar identified areas for cooperation; proposals for addressing legal gaps hindering efficiency; opportunities for increased facilitation of trade and compliance management; exchange of information and initiatives to combat Tax Fraud, particularly, the ones related to VAT.

Participants agreed to pursue this agenda and to promote more strategic discussions between Customs and Tax Authorities, at National, Regional and EU levels.

The WCO congratulated the organisers for addressing this important agenda and reinforced its commitment to continue working with the EU Members and Commission to identify and share good practices, guidelines, standards and to provide support in the development of Customs and Tax Cooperation.

By M.Hung

Source: http://customsnews.vn/

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BA RIA-VUNG TAU PCU: IMPROVING THE EFFICIENCY OF CONTAINER CONTROL AT SEAPORTS

VCN- On 8th May 2017, at Vung Tau City, the Deputy Director General of Vietnam Customs, Mr. Vu Ngoc Anh chaired the opening ceremony of Ba Ria-Vung Tau Port Control Unit. The ceremony was attended by the Australian Consul-General in Vietnam, Mr. Robert Chambers; the Vice Chairman of Ba Ria-Vung Tau People’s Committee, Mr. Nguyen Thanh Long; and leaders of the Global Container Control Program.

ba ria vung tau pcu improving the efficiency of container control at seaports
Delegates cut the tape at the opening ceremony of the Container Control Unit.

The Global Container Control Program was a collaboration between the Ministry of Finance (the General Department of Vietnam Customs) and the United Nations Office on Drugs and Crime.

At the ceremony, the Deputy Director General of Vietnam Customs, Mr. Vu Ngoc Anh said that in the context of increasing organizational crime; anti-smuggling and anti commercial fraud were very important tasks of Vietnam Customs. The tasks became even more difficult when the tricks of the criminals transporting illicit goods through container by sea became more sophisticated. Perpetrators often made use of loopholes in policies to smuggle or illegally transport prohibited goods by tricks such as concealing in goods transported by sea. Recognizing the effectiveness of the port facility control model within the framework of the Container Control Program, the Vietnam Government has approved the General Department of Vietnam Customs to participate in the program.

Ba Ria – Vung Tau Port Control Unit has been well trained to use risk analysis techniques and other useful tools to minimize negative impacts on free flow of trading. This has increased the efficiency of law enforcement and the promotion of trade.

Ba Ria – Vung Tau Port Control Unit was formed from a young and experienced staff. The participation of Ba Ria – Vung Tau Customs Department leaders kicked off great expectation of Ba Ria – Vung Tau Customs Department in particular and the General Department of Vietnam Customs in general in the work of anti-smuggling and combating prohibited goods which threat to human safety and social security”, the Deputy Director General of Vietnam Customs emphasized.

The Container Control Program (CCP) is a part of Subprogram 1 “Transnational Organized Crime and Illegal Trafficking” within the framework of the United Nations Office on Drugs and Crime for the period 2012-2017 which was signed in July 2012 between the Government of Vietnam (represented by the Ministry of Planning and Investment) and UNODC.

The CCP is a joint initiative between UNODC and the World Customs Organization (WCO), which is designed to assist Governments in strengthening the capacity of law enforcement to improve the effectiveness of container control at seaports, minimizing the risk of transnational organized crime for the illegal transportation of narcotics, wildlife, weapons, etc., to organize transnational crime and other forms of illegal activities.

CCP is a program that has been implemented and has been successful in more than 50 countries in the world. Within the framework of the program, there have been nearly 60 Port Control Units (PCUs) to be established in Africa (Kenya, Morocco, Ghana and etc.,), America (Argentina, Brazil, Chile), Asia (India, Bangladesh) and Southeast Asia including Cambodia, Indonesia, Malaysia, Laos, Philippines, Thailand. And Vietnam.

In Vietnam, approved by the Government in Official Letter No. 1745 / TTg-QHQT on Vietnam joining the CCP, the Ministry of Finance authorized the leaders of the General Department of Vietnam Customs to sign the Letter of Agreement between the Ministry of Finance of Vietnam and UNODC about joining the Container Control Program on 6th February 2015. Currently, the CCP has been deployed at the Customs Department of Hai Phong City from March 2015 which was sponsored by the Canadian Government and the Customs Department of Ba Ria – Vung Tau Province from November 2015 sponsored by the Australian Government.

Under the CCP, Ba Ria – Vung Tau Port Control Unit (BR – VT PCU) was officially established under Decision No. 3229 / QĐ-HQBRVT of 19th October 2016 of the Customs Department of Ba Ria – Vung Tau province, with 9 members, including the Deputy Director of the Customs Department of Ba Ria – Vung Tau Province as the Head of the unit and the remaining members of the Customs Branches and others as members.

Ba Ria-Vung Tau PCU is set up in the model of applying advanced risk management measures combined with anti-smuggling control activities to improve the efficiency of inspections and control of containers at seaports in Ba Ria – Vung Tau province. The unit is responsible for receiving and processing information and implementing port control measures to prevent and combat smuggling and illegal transportation of prohibited goods at Ba Ria – Vung Tau seaport. The key tasks include narcotics, wildlife, weapons, insidious goods, prohibited exports and imports.

Ba Ria – Vung Tau PCU has also been trained in basic and advanced method by the UNODC and the WCO and provided with workplace facilities, equipment and tools to support the work.

Some pictures at the opening ceremony:

ba ria vung tau pcu improving the efficiency of container control at seaports
The opening ceremony.
ba ria vung tau pcu improving the efficiency of container control at seaports
Delegates visit the Center of the container control.
ba ria vung tau pcu improving the efficiency of container control at seaports
ba ria vung tau pcu improving the efficiency of container control at seaports
Delegates and members of the Container Control Unit.

By Le Thu/ Hoang Anh

Source: http://customsnews.vn/

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BINH DUONG CUSTOMS: TRAINING CUSTOMS PROCEDURE FOR JAPANESE ENTERPRISE LEADERS

VCN – On May 4th, 2017, Binh Duong Customs Department collaborated with the Japanese enterprise sub-association in Binh Duong to hold training conference on Customs procedures, import and export tax policy… for Japanese investment enterprises’ leaders in Binh Duong.

binh duong customs training customs procedure for japanese enterprise leaders
Leaders of Binh Duong Customs Department answered questions of enterprises at the conference. Photo: T.D

The Deputy Director of Binh Duong Customs Department Nguyen Truong Giang said that this is an activity aim to renovate the enterprise dialogue. Through this conference, the Customs and enterprise leaders will further communicate. Enterprise leaders will be directly responded questions about the mechanism, policies and laws relating to import and export procedures to comply with regulations.

At the conference, the representative of Binh Duong Customs Department published to the enterprise leaders about regulations and policies on the Customs procedures, inspection and supervision; Notifications about the popular obstacles of enterprises on the import-export duty for processed and manufactured goods for export in the recent time; Regulations on the issue of duty-free lists for creation of fixed assets; General provisions on analysis and classification of goods …

The Post-Clearance Audit Branch also stated some regulations as well as preferential policies for authorized economic operators; some notifications for enterprises in the use of digital signatures and wanted some violations of enterprises during the implementation of Customs procedures in Binh Duong for enterprises to get experience. The Deputy Director of Binh Duong Customs Department Nguyen Truong Giang emphasized that the Customs inspection aimed to the compliance rather than punishment. Accordingly, enterprises should pay attention to the coordination between the units to avoid violations.

At the conference, the representatives of some enterprises also directly asked about production norms for goods processed and manufactured for export. Specifically, the enterprises said that the actual norm shall not be declared to the Customs agency, and it is only presented to the Customs agency in examination process for settlement report, however, in the part of warns on enterprise’s regular (being detected during the examination by Customs) violations noted that the above act violated the provisions.

Answering this obstacle of enterprises, Binh Duong Customs Department said that in the examination process for the settlement report, the Customs agency will examine the accuracy of the norms presented by enterprises, this norm is the actual production norm at enterprises. However, for some reasons (such as the enterprises imported more than the declaration, or exported less than the declaration, or the raw material is lost due to the loose management of enterprise). The enterprise has to balance again and present the norms that are not true with the actual norms, this act is detected when the Customs agency examines, so the enterprise will be fined and has to pay the arrears (if any).

Regarding the goods classification, the representatives of the Import-Export Duty Division also noted that the enterprises need to distinguish between the taking sample for analysis and classification to determine tax code or taking a sample for inspection of the State quality to determine the commodity policy (eligible for import or not). Specifically, for goods are taken for analysis, classification to determine of tax code subject to goods release, meaning that after physical inspection and taking samples and declarations to release goods are implemented, the enterprises shall be allowed to take goods to the market and carry out payment procedures exporters without waiting for the results of classification analysis.

For goods are taken the sample for inspection of the State quality to determine the commodity policy subject to preservation, meaning that after physical inspection and taking samples and are implemented, the enterprises shall be allowed to take goods for preservation and shall be forbidden to use goods without the result of the quality inspection.

By Thu Diu/Ngoc Loan

Source: http://customsnews.vn/

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CONTINUE TO ADJUST MANY CUSTOMS PROCEDURES TO MAKE SIMPLIFICATION FOR THE BUSINESSES

VCN- Up to now, the General Department of Customs has organized 9 conferences (including general seminars and technical workshops) related to the draft Circular amending and supplementing Circular 38/2015/TT- BTC of the Ministry of Finance.

continue to adjust many customs procedures to make simplification for the businesses
The Customs offices will collect opinions of the businesses in the draft Circular amending and supplementing Circular 38/2015/TT-BTC. In the photo: the professional activities at the Customs Sub-Department North Ha Noi. Photo: Ngoc Linh.

15 articles related to the group of customs procedures, customs inspection, and supervision; 11 articles related to the group of tax issues; 2 articles related to the post-clearance inspection were absorbed and corrected.

According to Deputy Director General of Customs Vu Ngoc Anh, the opinions of the business community would continue to be recognized, absorbed and corrected in order to harmonize regulations on the customs procedures; Simplify the administrative procedures to facilitate the businesses under the spirit of Resolution 19/NQ-CP, Resolution 35/NQ-CP of the Government and concretize the international commitments of the Free Trade Agreements.

Not require the businesses to present the paper records

Acquiring opinions of the enterprises at the previous conferences, the General Department of Customs plans to adjust the regulations on the e-customs declaration upon registration of the declarations, in order to both ensure management and create favorable conditions for the Customs declarants, reduce contact between the Customs and the businesses. The Customs declarants shall submit the complete customs records electronically upon registration of the customs declarations and the Customs officers must use the electronic records for inspection and must not require the Customs declarants to present and submit the paper records (except for documents required to submit the original documents and have not implemented the Single Window such as C/O, license…).

In the case of additional customs declaration, at the previous conferences, some associations agreed to introduce stricter rules of management for additional declarations, accordingly, the declarants implement only additional declarations for objective errors or justifiable reasons. The reasons must be documented with specific proof. However, it is difficult to declare quantities and types accurately for some exporters, importers in the trading form of whole bulks, bulk goods, liquid goods with tolerance, they can only declare accurately after counting shipments or having inspection results. Therefore, additional provisions should be added in this case and the submitted documents should be specified to ensure transparency and avoid the situation that the Customs officials request documents outside the regulations arbitrarily.

This content has been acquired by the Drafting Committee and revised in the direction of supplementing the regulations on the export-import goods in the trading form of whole bulks, whole trips… In addition, the Drafting Committee has remained the content in case of overbooking, wrong delivery, regulated more detailed on verification methods and verification time for procedural transparency; In the case of detecting signs of frauds or smuggling, they shall be handled strictly and not added declarations.

Many points need to be consistent

Regarding the application of the declaration principle on the customs declarations in order to control completely the process from the plan of export, export until the actual export, import, the Drafting Committee prepared to strengthen management of the imported goods and regulations of the exported goods would not be changed temporarily to encourage exporting. Consequently, the Draft maintains the regulations on the declaration of bills of lading, if a bill of lading uses to declare many customs declarations, the bill should be separated to ensure the automatic information exchange with the port businesses, warehouses and yards to make the favorable condition for the customs declared to take the goods without being supervised to confirm by the Customs, it will limit the appearance of duplicate declarations, virtual declarations in the customs system. Temporarily, the Draft discards regulations that the Customs declarants must register the expected export shipment to be issued a unique management number in the customs system for the Customs declarants declare export declaration. Formally, removing this provision will facilitate the customs declarers in declaration, but will not assist in the implementation of Article 41 of the Customs Law, it means that the customs declarers will have to carry out procedures to deliver goods through the supervisory area of the Customs offices before carrying out procedures for taking goods at the port.

In this regard, the representatives of the Customs Hai Phong Department said that this regulation should be implemented because, in the chain of customs clearance, there were not only the Customs authorities but also many other State management agencies. Therefore, the implementation of the identification code for the shipments would help to facilitate the State management agencies for the management and inspection of goods through the National Single Window, so that the time for carrying out procedures would reduce and the goods would be cleared quickly.

Regarding the management policy for export processing and production, the Drafting Committee plans to revise the draft in the direction of reducing the procedures for submitting the financial statements of enterprises. Accordingly, the export processing enterprises provide information on the management and use of raw materials, imported materials, exported products from the production management system of enterprises into the customs system. In cases where organizations and individuals have not provided information via the above method yet, they shall submit the settlement reports quarterly on the use of raw materials, materials, machinery, equipment and export products in the quarter to the Customs at the lasted the 45th day of the quarter.

Commenting on the above content, some large enterprises (Samsung, Intel ..) said that the management system of enterprises can meet the direct connection regulations with the Customs authorities. But the enterprises also expressed concern whether the transmission line system can meet the volume of daily large declarations of the business or not. For example, the Samsung Company is a priority enterprise of the Customs with a large volume of import and export goods. Meanwhile, the information transmission on the VNACCS system with large capacity can cause errors, affect the operation of the company. Or representative of Intel Corporation said that the General Department of Customs should have clear roadmap for the enterprises to enough time to upgrade, complete the system to meet the management requirements of the Customs. In addition, with the specific characteristics of enterprises operating 24/7, during the system upgrading, the Customs agencies must guide enterprises how to not affect production activities.

Besides, many other contents were also contributed by the enterprises. The Drafting Committee said that they would continue to absorb comments of the enterprises to finalize the draft circular. Particularly, regulations on coordination in supervision at airports, seaports would continue to have specific seminars to clarify the management method.

By Ngoc Linh / Binh Minh

Source: http://customsnews.vn/