Easing up customs procedures

Hoang Viet Cuong

The Ministry of Finance’s Circular 194/2010/TT-BTC – dated December 6, 2010 which provides guidance on customs procedures, customs check and supervision and import and export tax management, will be effective from January 20.

The circular is expected to address a number of impediments regarding customs and significantly boost import-exports, according to deputy head of the General Department of Customs Hoang Viet Cuong.

Under new regulations, from January 20 businesses are only required to hand in export contracts when exporting taxable products and products of specific economic sectors while formerly export businesses were all required to do so.

The customs authorities also present bases to verify whether products were in fact exported but not regulate procedures to verify the authenticity of export shipments.

“Formerly, it took three to four days to procure the bill of lading for each export shipment. After that, businesses need to go back and forth to procure papers verifying that their products were already exported; it was quite time-consuming. Enforcement of Circular 194 would significantly bolster exports,” said director of Viet Han Company Limited Do Van Han.

The circular is also expected to simplify a lot of procedures towards import and export products for businesses in export processing zones (EPZs). Accordingly, businesses inside and outside EPZs are eligible to make customs procedures as applied to products exported from EPZs for use in the domestic market.

Besides, transactions between EPZ-based businesses not located in the same EPZ also abide to customs procedures applied to products exported from EPZs for use in the domestic market.

In respect to temporary import/ re-export activities, the Circular 194 requires the customs declarers to confirm the validity of temporary import/ re-export equipment, making it easier for supervision purposes.

Besides, in order to limit trade deficit, the new circular bans consumer goods which have been kept in bonded warehouses from circulating into the domestic market.

The Circular 194 also encompasses new tax regulations. Accordingly, local governments have the right to select capable organisations to handle tax exempted-goods registration (previously the activities were handled by the local customs departments).

Besides, export items entirely made by using imported materials will be exempted from paying export duty. If both imported and local materials are used in export production, the export duty will be imposed on materials of local origin.

Also from January 20, 2011 EPZ businesses will not be required to show up documents indicating that products were already used in non-tariff areas or exported when making tax refund procedures as previously.