The Circular No. 63/2011/TT-BTC issued by the Ministry of Finance provides the pilot application of priority mechanism in State management over customs procedures applied to eligible businesses. This is another step to prove Vietnam’s determinations to reform and modernization of customs sector. Reporter Le Hien interviewed Mr Nguyen Duong Thai, Deputy General Director of General Department of Customs, on this aspect.
What requirements must businesses meet to enjoy this priority?
According to this circular, an enterprise qualified for the priority mechanism is rated to have lowest risks and meets seven conditions, including: Perform good law compliance or make at most three mistakes but the administrative fine for each commitment is not in excess of VND20 million; have large export and import turnover; apply transparent accounting mechanism; have effective business activities; apply e-customs procedures and bank payment.
The duration for assessing law compliance is 36 months dating from the date of the General Department of Customs’ receipt of the enterprise’s application for the recognition of priority. If an enterprise has an operating duration of from 12 months to 36 months and meets the above conditions, it shall also be considered qualified for the prioritised business.
Regarding import - export turnover, prioritised enterprises must have export - import turnover of US$500 million a year, applied to all commodities and forms of export and import; enterprises prioritised in exporting seafood, agricultural products and crude oil originated from Vietnam must have revenue of US$100 million a year; enterprises prioritised in importing commodities for domestic production and exporting high-tech products must have a turnover that meets requirements of the General Department of Customs.
So, what priorities does a business receive?
Qualified businesses enjoy following priorities: Free from detailed check of customs documents and physical check of merchandise at the stage of customs clearance; free from post-clearance check at [their] head offices; apply electronic customs procedures (electronic records are exempted from being checked and responded every hour in the day); pay tax and customs fees on the monthly basis via banking system; enjoy tax refunds ahead [of others], first serve - last check mechanism; and declare one time for multiple imports and exports.
Prioritised businesses will enjoy least customs procedures and time for clearance of merchandise, thus helping them save costs for them, prevent and limit business risks, and access many necessary support services.
How many enterprises will be given priority this time? Are small and medium-sized enterprises among those?
According to database managed by the customs authorities, in 2011, about 50 out of 40,000 businesses nationwide are qualified for the status of priority according to the Circular. This ratio is high in comparison with South Korea which has 109 out of over 220,000 businesses eligible in 2009.
A criterion in this circular is applied to enterprises exporting seafood, agricultural products originated from Vietnam. This is a condition for small and medium enterprises to enjoy this treatment. Customs authorities will make this matter public on mass media to inform enterprises.
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