Priority Card for Import-Export Enterprises: Aiding Enterprises

9:20:08 AM | 1/3/2006

The General Department of Customs has announced that it will grant priority cards for import and export enterprises from January 1, 2006. So which enterprises will be awarded the card and what are benefits from the card? Vietnam Business Forum has interviewed Mrs Dang Thi Binh An, deputy general director of the General Department of Customs, about these issues.
Who will be granted the priority card this time?
All enterprises set up under the law, which have at least 365 days of importing-exporting goods dating back from the card-granting day, will be granted the priority card for those products. Inaddition, enterprises must not violate any laws related to smuggling and illegal transportation of goods across the border. Enterprises must not evade taxes or have tax payment delays of less than 90 days. Enterprises cannot have been sued for customs violations. As for enterprises with many branches, the card will be provided for eligible branches. However, these enterprises must be independent enterprises and have private tax codes.
As regards enterprises with operations under the management of a customs office or more than one customs office, relevant customs offices will grant the card. The card is only valid at the customs offices that issue that card.
 
So, local customs offices have the right to grant the card. Do you think this mechanism will prove troublesome to enterprises?
At first, the General Department of Customs also had an intention that only General Department of Customs had the right to grant the card for enterprises. However, the workload must be too high, therefore, granting rights are entitled to local offices. I think negativity and trouble are unavoidable. But, local customs offices must be responsible before the General Department and the law for the trouble and negativity.
 
What are differences between enterprises with and without the card?
Enterprises with the card will be treated as good enterprises and their goods will be exempted from customs supervision. These enterprises can delay tax payment for certain periods of time.
 
Goods suspected of violating the law will be checked carefully. The director of the customs office will issue the final decision.
 
Can you tell us about the processes of awarding the priority card?
The priority card granting process is publicized on mass media and the website of the General Department of Customs. Enterprises will look into it and consider whether they are eligible for the card. Then, enterprises send written requests for the card and the number of cards to the customs office where their head offices are located. Five days later, the local customs office will decide whether or not to grant the card for enterprises. If enterprises are rejected, the customs office must explain the reason to enterprises in a written document. In the first stage, the card will have a validity of six months.
 
Will time and boundary limits cause difficulties for enterprises who have received the card?
In the initial stage, the validity of the card is six months because we are assessing our IT system. If this system operates smoothly, the General Department of Customs will extend the validity of the card. As for the boundary limit in the card circulation is the case now. Only local customs offices know which enterprises are in violation of the customs law and can issue the card quickly.
 
Can you reveal the number of priority cards to be issued in this phase?
We plan to grant around 9,800 priority cards, or some 70 per cent of the 14,000 priority card, for import-export enterprises nationwide.
Thank you very much!