Recommendations on response to the Official Letter No. 4939 / TCHQ-GSQL dated July 26, 2017 of the General Department of Customs

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Name of recommendations: Recommendations on response to the Official Letter No. 4939 / TCHQ-GSQL dated July 26, 2017 of the General Department of Customs

Status: Has not been responded

Recommended by units: The Le Quoc Co., Ltd

Official letter: No 2047/ PTM - VP, dated: 2017-08-21

Recommended contents:

Le Quoc Co., Ltd received an official letter No. 4939 / TCHQ-GSQL dated July 26, 2017 of the General Department of Customs responding to the recommendations of the company. However, the company found that the official letter is unreasonable, specifically:

1. For opening and announcement of seaports:

According to the Decision No. 480 / QD-BGTVT dated February 22, 2017 of the Ministry of Transport announcing the "List of port terminals that are subject to Vietnamese seaports", The Hung Vuong General Vegetable Port of Le Quoc Co., Ltd is not on the list of ports belonging to Vietnamese seaports.

But in the decision, there are not any sentences stated, "This port is not allowed to receive foreign vessels."

In fact, there are some confusions, or misconceptions have occurred: the ships which carrying Vietnamese nationality (flying the Vietnamese flag) and transporting goods from Vietnam to foreign countries, or vice versa, it is still called as carrying export, import or transit (not only foreign-flagged ships - flying foreign flags to ports)

2. On the implementation of customs procedures for means of exit and entry, export and import goods:

Article 7: Law on Customs 2014 has stipulated: "Areas of land border checkpoints, international railway stations, international civil airports; seaports and inland waterway ports where import, export, exit, entry and transit operations”.

Although the Hung Vuong General Vegetable Port of Le Quoc Co., Ltd is not on the list of ports in Vietnamese seaports, it is still an inland waterway port for export, import, exit and entry operation.... ".

As such, Hung Vuong General Vegetable and Fruit Port of Le Quoc Co., Ltd is still under the operation of Customs.

  1. 3. For the Customs Department of Haiphong City forwarded the procedures for the means of exporting and importing goods at Hung Vuong General Vegetable and Fruit Port in the period from May 2017 and earlier:

Please let us know clearly what are qualified conditions? And, what are those condition?

Article 8: Customs modernization

  1. The State shall give priority to investment in modem technical equipment and facilities and advanced technologies to ensure the effective customs management; encourage entities to participate in developing advanced technologies and technical equipment..
  1. With the Customs Department of Hai Phong Port  Area I informed

At the same time, there is a document that be sent to the port wholesalers which do not comply with the law (including Le Quoc Co., Ltd)

If during past time, Le Quoc Co., Ltd has been done their business not in accordance with the law, the law enforcement agencies in Hai Phong and Vietnam can ignore?

Responded by units: The Ministry of Finance – The General Department of Customs

Official letter: No 6587/TCHQ-PC, dated: 2017-10-09

Responded contents:

2.      1.1. For opening and announcement of seaports:

Article 79 of the Vietnam Maritime Code 2015: “The Government shall adopt regulations on authority, conditions and procedures in relation to the opening and closing of a seaport, wharf, port terminal, floating terminal, water area, water region, port water area, and management of a navigational channel and marine operations that take place at a seaport.”.

Decree 21/2012 / ND-CP dated 21 March 2012 of the Government has been replaced by the Government Decree No. 58/2017 / ND-CP dated May 10, 2017 guiding the Vietnam Maritime Code 2015 has stipulated: "Once every five years in the first quarter, the Vietnam Maritime Administration shall compile and submit to the Ministry of Transport a classification list of Vietnam seaports for submission to the Government’s Prime Minister for consideration and announcement according to regulations. "

Article 4 of the Decision No. 70/2013 / QD-TTg dated November 19, 2013 of the Prime Minister has stipulated: “The Ministry of Transport shall announce the list of ports in Vietnam seaports at the proposal of the Director of Vietnam Maritime Administration in January every year. " In reviewing and comparing with the Decision No. 480 / QD-BGTVT dated January 22, /2017 of the Ministry of Transport announcing the list of ports in Vietnamese seaports, Hung Vuong General Vegetable Port of the  Le Quoc Co., Ltd is not included in the list as announced by the Ministry of Transport according to regulation.

1.2. On the implementation of customs procedures for means of exit and entry, export and import goods:

Article 67 of the Law  on Customs 2014: “Vehicle on entry must undergo customs formalities at the first entry border checkpoint. Vehicle on exit must undergo customs formalities at the last border checkpoint for exit.”

Article 4 of the Government's Decree No. 08/2015 / ND-CP dated January 21, 2015: “After considering the announcement about the zoning for inland ports through which exportation, importation, exit, entry and transit activities are carried out; inland ports of entry, exit; international airports, import and export turnovers, and an amount of work that has to be dealt with at places where exportation, importation, exit, entry and transit activities take place, the Minister of Finance shall stipulate requirements, procedures for establishment and closure of venue for customs procedures and off-airport freight terminals”.

Thus, the geographical areas of customs operation include seaports and inland waterway ports with import and export activities already planned and publicized by the Prime Minister and the Ministry of Communications and Transport according to regulations; On that basis, the Ministry of Finance (the General Department of Customs) shall arrange the customs procedures for the means of exit and entry as well as import and export goods according to the provisions of law.

Pursuant to the Law on Customs 2014; Pursuant to the Government's Decree No. 08/2015 / ND-CP of January 21, 2015, guiding the Customs Law; Pursuant to the Government's Decree No. 01/2015 / ND-CP of January 2, 2015 stipulating the specific scope of customs operation as mentioned above, the Hung Vuong General Vegetable Port is not included in the list that be Publiced ports in Vietnam's seaports, failing to satisfy the conditions for customs supervision and management according to law provisions, so customs offices may not carry out customs procedures for transportation means, exit, entry, export and import goods here.

1.3. For the Customs Department of Hai Phong City for receiving and transporting imported and exported goods at Hung Vuong General Vegetable and Fruit Port in the period from May 2017 and earlier:

Decisions to publish the list of ports in Vietnamese seaports of the Ministry of Transport from 2014 to 2016 were not named Hung Vuong General Vegetable and Fruit Port, Hai Phong City Customs Department uses the Official Letters No. 3194 / CHHVN-CTHH dated August 11, 2014 and the Official Letter No. 2927 / CHHVN-CTHH dated July 21, 2016 of Vietnam Maritime Administration to facilitate the Le Quoc Company Limited to produce and trade, to overcome difficulties while not completing the construction investment items and dossiers submitted to the Ministry of Transport announcing seaports as appropriate to reality, but not in accordance with the provisions of law. in the absence of completion of the construction investment items, the dossier shall be submitted to the Ministry of Communications and Transport announcing the seaport to be suitable to the reality but not in accordance with the provisions of law. The Hai Phong Customs Department has actively reviewed the harbors in Hai Phong City including Hung Vuong General Vegetable and Fruit Port has not qualified to receive and carry out procedures for entry and exit means, Import and export goods and assigned to Customs Department of Hai Phong Area 1 Port notifies that this port is not in the area of customs operation.

1.4. According to The Area 1 Port of the Customs Department of Hai Phong informed, requesting the port businesses do not receive vessels and means of entry and exit in the Official Letter No. 3629 / TB-HQKV1 dated June 23, 2017:

The Area 1 Port of Hai Phong Customs Department announced that some ports are not located in the area of ​​customs operation are in compliance with regulations. However, at point 2 of the document stipulated that the content has not been appropriated with the authority, therefore, the General Department of Customs has requested the Customs Department of Hai Phong City to withdraw the Official Letter No. 3629 / TB-HQICV1. At the same time, there is a document sent to the port wholesalers which is currently not compliant with the law (including the Le Quoc Co., Ltd). The procedures for means of entry and exit, export and import goods at ports are not on the list of ports in Vietnamese seaports announced by the Ministry of Transport. Directing and guiding units under and attached to the issuance of documents and notices strictly according to the current law provisions; To thoroughly understand the cadres and civil servants in the performance of their tasks, to explain and guide the enterprises in clearly realizing the construction investment and completing the port publicization dossiers strictly according to law provisions, avoiding misunderstanding, causing troubles for the company.

1.5. In addition, the Official Letter No. 1869 / CHHVN-CTHH dated May 17, 2017 of the Vietnam Maritime Administration has stated that "this port does not receive foreign vessels". Therefore, the Official Letter No. 4939 / TCHQ-GSQL of the General Department of Customs cites the opinion of the Vietnam Maritime Administration in the above mentioned document is completely accurate, without any confusion or misconception here.

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