Customs procedures for goods temporarily imported for re-export are reviewed to be amended in the Draft Decree amending and supplementing a number of articles of Decree 08/2015 / ND-CP on customs procedures,inspection and supervision in order to simplify administrative procedures and save costs for businesses, while ensuring management of the customs agency.

Import and export activities at Hai Phong port.Photo: T.Binh

Constraints about time limit extension 

According to the drafting unit, Decree 08/2015 / ND-CP providesregulations on customs procedures for temporary import - re-export and temporary export - re-import for each specific type of goods but does notseparate customs procedures for temporary import, re-export, temporary export, and re-import.

According to the General Department of Customs, the revised contents are consistent and compliant with actual regulations and relevant legal documents, and at the same time create favorable conditions for businesses to carry out customs procedures consistently, transparently and clearly.

In addition, regarding the extension of the time limit for temporary import for re-export, and temporary export for re-import, Clause 3, Article 41, and Clause 3, Article 42 of the Law on Foreign Trade Management in 2017, stipulates: “The time limit for temporary export for re-import shall be agreed upon by traders and partners and registered with the customs agency where temporary import or temporary export procedures are carried out.”

Decree 08/2015 / ND-CP stipulates that cases including: temporary import – re-export, temporary export for re-export of ships or aircrafts for the purpose of repair or maintenance (Article 51); temporary import for re-export of components, spare parts or items used for replacing or repairing foreign ships or aircraft (Article 52); temporary import for re-export, temporary export for re-import of items used for work activities over a defined period of time (Article 54); temporary import for re-export, temporary export for re-export of items used for warranty or repair services, only stipulate that the time limit must be registered with the Customs agency and does not provide the procedures for the time limit extension for temporary import for re-export, temporary export for re-import; and does not have a regulation on banning the change of the time limit registered with the customs agency.

Regarding customs procedures for temporary import for re-export of equipment in rotation method, according to the provisions of Clause 22, Article 1 of Decree No. 59/2018 / ND-CP, only empty containers must go through temporary import - re-export procedures. This regulation is not appropriate, because there are cases when entering Vietnam, the container with the goods, when leaving Vietnam, it is empty, leading to difficulties in management byCustoms.

There are also problems with procedures for goods supplied for exiting ships. According to the Import and Export Tax Law, the Special Consumption Tax Law, the Law on Value Added Tax Law and related guiding documents, goods temporarily imported for re-export for supply on foreign ships in Vietnam’s portsare exempt from import tax, special consumption tax and value added tax.

However, currently Decree 08/2015 / ND-CP and Decree 59/2018 / ND-CP have not specified this. Currently, foreign ship owners will send goods to Vietnamese businesses by air or by order of Vietnamese businesses. Items are mainly food, essential household appliances (re-export the status quo of temporarily imported goods) to serve tourists on foreign ships entering Vietnamese seaports and then continuing to leave. Because there are no regulations on procedures of this type, Vietnamese businesses are sending these goods to bonded warehouses. According to businesses, this activity is growing, especially in countries with many seaports like Vietnam and is one of the services at international seaports.

In addition to the above issues, through the review process of the customs agency, there are also issues that need to be amended and supplemented regarding the customs declarant and thecustoms checkpoints to solve problems on temporarily imported goods for re-export to serve specific work within a certain period of time, and customs procedures for supplying meals on the exit aircraft.

Facilitate businesses 

In order to solve the current problems on customs procedures for goods temporarily imported for re-export mentioned above, the General Department of Customs is proposing to amend and supplement the regulations. Accordingly, regulations on customs procedures, management mechanisms for containers containing imported goods in Article 49 will be added; regulations on containers containing imported and export goodsthat must also go through customs procedures will be added and regulations on supervising vehicles in rotation will be added.

The draft Decree also adds provisions on the extension of time limitsand procedures for the extension for goods temporarily imported for re-export in Articles 51, 52, 53, 54 and 55. The draft decree amends contents on the customs declarant described in Article 52, at the same time reviews, supplement vouchers of the customs dossiers such as: the warranty contract, and the change ofname of license in accordance with the Law on Foreign Trade Management.

In addition, the draft decree amends and adds regulations on customs checkpoints described in Clauses 1 and 4, Article 54 of Decree No. 08/2015 / ND-CP in the direction of expanding, specifically: customs procedures are handled at the border-gate customs branches or express customs branches or customs branchesin areas where sport eventstake place.

At the same time, the draft adds onearticle related to customs procedures for exported and imported goods supplied to exit aircraft (regardless of if they are foreign or Vietnamese aircraft) and one article related to procedures for temporarily imported for re-export goods to supply to foreign ships anchored at Vietnamese seaports.