According to the General Department of Vietnam Customs, more than 50 countries in the world are now applying a so-called enterprise priority programme. Although each country has different levels of application, they base on the common foundation: Standard frame for security standards and global trade facilitation built by the World Customs Organisation (WCO). Currently, customs authorities of 27 countries have signed agreements on mutual recognition of priority businesses. In Vietnam, the programme was started on a pilot basis in 2011. This policy helps beneficiaries to reduce a lot of time and costs in dealing with clearance procedures for goods. At present, 35 companies are enjoying the priority policy in customs field. Samsung has seven companies to be granted the priority status - the group with the largest number of beneficiaries at present. More exporters and importers are expected to be granted the priority status in the coming time.
Lowering revenue target
To implement new regulations on enterprise priority in customs field stipulated in the Law on Customs 2014 and Decree 08/2015/ND-CP, the General Department of Customs drafted and submitted Circular 72/2015/TT-BTC dated May 12 on priority mode in customs procedure implementation, inspection and supervision over exported and imported goods to the Ministry of Finance. The new circular will replace Circular 86/2013/TT-BTC and Circular 133/2013/TT-BTC.
New contents of the new circular include lowering export and import revenue limit, clarifying post-clearance examination methods and power of issuing decisions on examination into priority enterprises; decentralising of the power to receive and assess documents of enterprises to local customs departments instead of sending to the General Department of Customs as earlier; adding key national projects to the list of priority enterprises. New contents are aimed to further facilitate law-abiding businesses to become priority enterprises. With this view, the scope of priority enterprises will be wider, rather than only exporters and importers as previously. According to the new ruling, two new entities may be certified priority enterprises: customs agents and organisations/individuals importing goods to carry out key projects approved by the Prime Minister.
The change in export and import turnover conditions draws the most attention of the business community. According to Circular 72/2015/TT-BTC, a company needs to have only US$100 million upward of export and import turnover a year to be considered a priority enterprise instead of US$200 million as now. The conditional export revenue of an agricultural and fishery company is US$30 million a year instead of US$50 million as now. A company that manufactures exported goods in Vietnam will be considered the status if it has revenue of US$40 million a year, compared with the current condition of US$50 million.
A customs agent will be qualified for the status if it handles at least 20,000 sheets of procedures a year. To facilitate and create opportunities for more law-abiding companies, in addition to lowering revenue limit, the new circular highlights internal control conditions and export-import supply chain security in accordance with WCO standard frame. According to experienced officials in servicing priority enterprises, those with good internal control systems always respect customs laws. Large-scaled companies, both domestic and foreign-invested, usually perform this aspect well.
Empowering local customs departments
The receipt and evaluation of customs papers will be decentralised to local customs departments instead of the General Department of Customs as now because when the scope of beneficiaries is widened, more companies will be qualified for the status. Hence, decentralising this power to local authorities will be better for all stakeholders. Local customs departments directly manage and have close track on enterprises when they do customs procedures in the past time. Hence, in the coming time, the General Department of Customs (Post-clearance Inspection Department) only receives documents from key investment projects approved by the Prime Minister.
Priority enterprises will be free from post-clearance inspections at customs offices except for cases with signs of law violations. Post-clearance customs shall not perform one check at the office of customs declarers in three straight years except for cases with signs of customs law violations. The power of making post-clearance inspection decisions at head offices of priority enterprises is decided by the General Director of the General Department of Customs. According to post-clearance customs officers, the new ruling will make the business and investment environment of Vietnam more attractive.
Le Hien
Vietnamese
