Net cast for juicy seafood import favours

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In light of Ministry of Finance’s (MoF) Official Letter 10612/BTC-TCHQ dated August 10, 2011, the ministry gave the nod to some proposals concerning raw seafood imports for export production the Vietnam Association of Seafood Exporters and Producers (VASEP) earlier voiced.

Accordingly, the MoF agreed to a VASEP proposal relevant to supplemental customs declarations. Particularly, if import-export shipments are found with wrong declarations in the goods compared to actual figures they can later submit supplemental customs declarations with adequate import-export goods amounts.

Besides the MoF also green-lighted tax refund towards imported seafood materials for export production as well as clearing payment methods between the seller and the buyer involved in import-export shipments.

The MoF agreed for import businesses owing money to foreign partners for material imports to gradually deduct that amount in their following export shipments.

The MoF’s document was applauded by seafood exporters.

VASEP deputy general secretary Nguyen Hoai Nam assumed easing regulations would help push up seafood exports.

General director Nguyen Quang Tuyen at Cafico Vietnam Joint Stock Company, a big seafood import-export trader, said customs facilitation would save firms time and expenses.

Before Official Letter 10612 came into force from August 10, 2011 import export shipments with wrong declarations in the goods amount could not submit additional declarations. This made businesses unqualified for tax exemption or refund.

Besides, if firms import materials for export processing then later resell products to the same foreign partners and both sides agree to a clearing payment method if the local firms still owe a certain amount to their foreign partners relevant to import shipments, they cannot complete necessary legal procedures for tax exemptions or refunds.

In that case, they must buy the greenbacks to pay up the debt. Now in light of MoF’s Official Letter 10612 they can deduct that debt in their following export shipments to the foreign partners and still enjoy tax incentives.

Each year Vietnam imports around $200 million in seafood materials, according to the Ministry of Agriculture and Rural Development.