Exporters bemoan new customs red tape tussle

A new Ministry of Finance notice could severely slow down export activities        Photo: Le Toan

The Ministry of Finance (MoF) recently issued Notice 1767/BTC-TCHQ on combating electronics customs violations, which will take effect on April 1, 2014.

According to the notice, customs declaration forms can only be submitted to local customs agencies after companies have unloaded their goods at fixed places and announced the time that the goods will loaded into containers for dispatch. The notice states such locations include border gates, seaports, airports, inland container depots, container freight stations and warehouses.

The document also stipulates specific places for examining goods at border gates. All these places have to meet certain specific conditions.

The MoF said the notice was aimed at stringently managing cross border trade by preventing firms from committing trade fraud via electronics customs procedures.

However, the document was met by many exporters’s uproar, particularly garments and textile producers which claimed that despite its laudable aim, the notice would also hit enterprises with good business records.

Garment 10 Joint Stock Company’s CEO Than Duc Viet told VIR that because almost all of the company’s input materials were imported and demand for the company’s products was rising internationally, cross-border trade needed to be even quicker, not entangled in red tape.

Because of the busy shipping timetables, enterprises had to declare their goods for custom clearance in advance to loading, otherwise both they and the customs agency would have no time to process the declaration forms and the ships would continue without the export goods.

He suggested that the existing customs procedures be maintained. Specifically, enterprises could make declarations before the goods were loaded for export.

Duc Giang Garment Joint Stock Company’s general director Pham Tien Lam said the company exported goods via several border gates and seaports.

He said the current regulations were far simpler. “Enterprises are able to save time, and reduce overloading and risks about missing ships. If the new regulation is applied, enterprises will suffer from bigger burdens. They could miss the ships if they fail to complete customs procedures in time.”

Nguyen Sy Hoang, head of Export-Import Department of Tex-Giang Joint Stock Company in the southern province of Tien Giang, said the firm was based 80 kilometres from Ho Chi Minh City seaport’s inland container depot so if they had to unload its exported goods at the depot before it could make a customs declaration form, it would take the company much time and extra fees.

“This will undoubtedly affect us,” Hoang said.

Vietnam Garment and Textile Association vice general secretary Dang Phuong Dung also said the MoF and the Vietnam Customs should reconsider Notice 1767 as quickly as possible.