Due to business suspensions, the circulation of goods at Cat Lai port has decreased sharply, causing an increase in the number of backlogged goods at this port. HCM City Customs has proposed support for businesses.

Cargo flow at Cat Lai port. Photo: T.H

Backlogged goods at seaport increased

Since the fourth outbreak of Covid-19 hit HCM City area, Saigon Newport Corporation and the Customs authority have implemented flexible and efficient production plans. They have also worked with local pandemic prevention and control forces to smoothly deploy anti-pandemic plans, especially the vaccination plan which is deployed on a large scale for employees, workers, customs officials and shipping lines that work regularly at the port. Up to now, business activities are still smooth and safe at the two seaports.

However, according to Saigon Newport Corporation, after three weeks of implementing social distancing under Directive 16, the volume of containers receiving and leaving the ship, the volume of containers delivered to yards, and the number of vehicles entering, leaving seaport to transport containers have fallen compared before social distancing was applied, leading to a soaring number of backlogged goods at Cat Lai port.

The inventory capacity of Cat Lai yard is always reached at full capacity, with the capacity for imported goods always reaches more than 100% capacity.

According to Nguyen Phuong Nam, Deputy General Director of Saigon Newport Corporation, the amount of imported goods is increasing rapidly because many factories have to scale down the production or stop working due to blockages or not ensure the condition of "three on-spot", "2 places, 1 road", so the enterprise receives goods slowly.

According to Nam, with the characteristics of the operation of Cat Lai port, so far, it has had to regularly operate near maximum capacity, so if the goods are slow to rotate and there is a high rate of backlogged goods, the risk of Cat Lai port temporarily suspending to receive ships and waiting for the release of goods on the yard is high, leading to the risk of operation interruption.

Besides sending proposal to customs authority on handling backlogged goods, Saigon Newport Corporation also requested the Transport Department of HCM City ask the Road Administration Department to upgrade the software of online granting QR code programme as well as continue to facilitate the issuance of circulation licenses for container drivers.

Saigon Newport Corporation also asked the People's Committee of HCM City to direct the Health Department of HCM City to propose the Ministry of Transport and the Ministry of Health agree on using one app to monitor and update testing information and quick tests of vehicle operators (especially container truck drivers). The checkpoint stations, enterprises operating port, warehouses, and factories can check information through QR codes through the app instead of doing manually which takes a lot of time and manpower and causes congestion at the checkpoint.

HCM City Customs proposes to support businesses

According to the HCM City Customs Department, many businesses have suspended production activities due to the blockade or not ensuring the conditions for "three on-spot", "two locations”, “one road” as regulated by People's Committees of some southern provinces and cities, leading to an increase in backlogged goods at some seaports with large cargo flow like Cat Lai port.

To remove difficulties for Cat Lai port, HCM City Customs Department has reported to General Department of Vietnam Customs to suggest and recommends the authority allow Saigon Newport Corporation to transport backlogged goods from Cat Lai port to Tan Cang Hiep Phuoc port for storage and wait for implementing procedures to reduce the load for Cat Lai port.

At the same time, it proposed to allow Saigon Newport Corporation to lease ports in the area of ​​HCM City (SP-ITC port, VICT port, LOTUS port, Tan Thuan port...) to store goods to reduce the load for Cat Lai port during the complex pandemic situation in the south.

HCM City Customs Department also proposed allowing Saigon Newport Corporation to temporarily store imported goods at the port of unloading, which is Cai Mep port, to wait to carry out independent transportation procedures to the destination port, which is Cat Lai port. Firms will not sanction administrative violations due to exceeding the time limit for carrying out customs procedures when they register to open declarations.

In addition, leaders of Saigon Newport Corporation suggested the General Department of Vietnam Customs and work with specialised authorities to expand the list of documents uploaded to the national single window portal without requiring a copy of the document. In particular, dossiers of specialised authorities that already have file numbers, or transshipment declarations so that can limit customers and customs brokers to carry out procedures directly at the port. In the near future, HCM City Customs Department will agree with specialised authorities to allow businesses to submit scanned certificates online method during the application of Directive 16 and supplement the original after.