Loose Management of Temporarily Imported Goods for Re-export

The General Department of Customs of Vietnam has imposed ironclad measures on temporarily imported goods for re-export in an effort to clear up concerns over freight congestion, international trade obstruction, infiltration of banned goods and environmental pollution. However, the authority encountered a lot of shortcomings and loopholes in management of goods temporarily imported for re-export when it dealt with the issue.

In reality, the number of licences for goods temporarily imported for re-export is on the rise, especially frozen goods, used goods, waste materials, import-restricted goods, excise tax-levied goods (wine, tobacco, gasoline). This leads to growing difficulty and complexity in management.

 

Deputy Director of Quang Ninh Customs Department Pham Trung Vinh said: 80 percent of imports and exports through border gates in Quang Ninh province are temporarily imported goods for re-export. The surge in the volume of these goods complicates management. There is a high probability that conditional items like electronic devices, old bikes, spirits and soft drinks will infiltrate into the market. Some even take the chance of transporting goods temporarily imported for re-export to traffic banned goods like heroine, elephant tusks, rare animals, lead battery and wastes, etc.)

 

The Anti-smuggling Inspection Committee under the General Department of Customs said imported goods backlogged in seaports and border gates have been complicated problems for years. Inconsistent regulations caused numerous difficulties in dealing with banned goods and polluting industrial wastes.

 

According to environmental protection regulations, violated scraps and wastes are forced to re-export or destroyed but the actual costs for disposing wastes are huge while Vietnam does not have standard technologies for this purpose. In many cases, re-export is impossible because importers go bankrupt or they cannot find third countries to receive the goods. Punishments are only administrative; thus, companies still import banned goods. In many cases, they refuse to receive their goods as they want to shirk responsibility.

 

According to Trade Law and Tax Law, goods temporarily imported for re-export must have purchase and sales contracts. But, according to investigation results, importers do not sell or buy but they provide transport services. As imported goods have a tax grace period of 120 days (extended to 180 days), many temporarily imported goods stay inland in a long time and many are illegally infiltrated into the domestic market.

 

Customs authorities said illegally imported goods are mainly conditional and highly taxed ones like electronics devices, used household goods, spirits, beer and soft drinks. In 2011, Quang Ninh customs authorities captured a lot of tobacco and gasoline smuggled across the border, with a great volume suspected of temporary import for re-export.

 

According to customs authorities, policy loopholes limit the management of goods temporarily imported for re-export.

 

According to Hai Phong customs authorities, manifests of ship owners do not describe types of import and export. Hence, they cannot identify whether such goods are qualified for import or not to impose import-stopping measures or ban from discharging. Customs authorities base on manifests supplied by carriers or estimation data supplied by carriers but these values are not always exact. As a result, customs authorities difficultly count the volume of goods imported or exported, stored or backlogged at ports.

 

To limit frauds in temporary import for re-export, customs authorities consider installing electronic GPS chips on lead seals to monitor their movements. The General Department of Customs has asked the Prime Minister to end temporary import for re-export of banned goods. International standards with specific management mechanisms will be applied to other goods.