Vietnam Implements Reforms to Support Businesses Hurt by Pandemic

The Covid-19 pandemic has spread over the world, leading to limited travel and the closure of many border gates, disrupting import and export activities, affecting the supply of raw materials for production and leaving many enterprises facing a dilemma. The pandemic has caused most economies in the world to slow down, including Vietnam.

The General Department of Vietnam Customs has aggressively carried out customs policies and solutions to facilitate businesses affected by the Covid-19 pandemic to maintain operation, contributing to State budget revenue.

For example, the General Department of Customs does not require customs declarants to submit paper documents of the customs dossier as a photocopy; nor requires them to sign or stamp these vouchers when sent through the system. For the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), no supporting documents are required in case goods are transported in a full container from the exporting country until arriving in Vietnam. The General Department of Customs accepts the master bill of lading or the secondary bill of lading if it shows the goods transported from the exporting country to the importing country.

The General Department of Customs does not sanction administrative violations for means of transport exceeding the time limit for re-import or re-export as prescribed, if there is a document identified in a force majeure event due to the suspension from entry and exit by the Lao Government or operators of means of transport are subject to the measure of concentrated isolation at the time when the means of transport must be re-exported or re-imported.

Customs Departments of provinces and cities that have international airports have coordinated with border authorities in quickly settling procedures, facilitating visitors to enter from or pass through epidemic zones, examining passengers' check-in baggage and ensuring fast and safe operation.

The General Department of Customs also implements Circular 47/2020/TT-BTC dated May 27, 2020, thereby extending the deadline for submission of proof of origin of goods; accept C/O using signature, electronic seal or photocopy/scanned copy of C/O to submit to customs authorities.

Due to the impact of the pandemic, enterprises have difficulty exporting goods, the General Department of Customs has reported to the Ministry of Finance about solutions to remove difficulties for enterprises in the direction of allowing enterprises to extend the time of storing goods in bonded warehouses and duty-free shops until the epidemic is over.

The General Department of Customs has signed agreements with 43 commercial banks to coordinate in electronic tax collection, of which 36 banks participate in electronic tax payment and customs clearance 24/7. The electronic budget revenue reached 97.3% of the total budget revenue of the General Department of Customs.

In addition, the Customs Departments of provinces and cities have actively implemented a number of solutions to effectively support businesses such as implementing customs procedures, rapid customs clearance of import and export goods, helping supply businesses with raw materials, supplies, machinery and equipment to promptly serve production activities. Specifically, at centralized goods inspection locations, goods inspection (container screening) are applied 24/7 according to the needs of businesses. Customs sub-departments regularly arrange officers on duty outside office hours to handle customs procedures for businesses.

For businesses that have temporarily suspended operation due to the Covid-19 epidemic, the sub-departments regularly keep up with information and keep in touch with local enterprises to remove difficulties, promptly adopt solutions to support, well implement the business management, and prevent bad debts due to escaped or missing enterprises.
The General Department of Customs also receives and quickly settles tax refund and exemption dossiers, creating favorable conditions for enterprises to re-invest, boost production and business, and increase revenue. The Department also promotes the application of information technology in handling customs procedures, maintains good implementation of online declaration and clearance, and increases the number of records resolved through online public services. The Department pushes to answer questions about customs procedures for businesses through the web portal of the industry.

The Department continues to recognize problems, difficulties, recommendations of businesses beyond their authority to report, and propose to leaders at all levels for consideration (such as extending tax payment time for businesses facing difficulties due to the Covid-19 epidemic). The sub-departments have suspended inspection and assessment of the compliance of the customs declarants and promoted information collection and analysis to detect signs of violations of enterprises.

By Le Hien, Vietnam Business Forum