FDI enterprises want to re-export raw materials

Due to the temporary suspension of production, many businesses do not carry out procedures to import raw materials. Photo: T.H

Proposal to return the goods still at the port

The Ho Chi Minh City Customs Department noted that due to the problems faced by foreign business associations in Ho Chi Minh City during the lockdown, many FDI enterprises proposed to re-export production materials to the country.

According to the enterprises, because the factory in Vietnam had to stop operating, for the imported materials for production in Vietnam, the enterprise kept the raw materials intact and re-exported them to the other manufacturers abroad. However, each material takes a lot of time to clear customs when importing, checking goods. Enterprises ask Customs to consider simplifying procedures and creating favorable conditions for businesses.

In addition, due to the temporary suspension of production activities, the enterprise did not import raw materials for production in Vietnam as planned. For imported materials, enterprises are allowed to export and return raw materials in the container terminal to the exporting country or send them to a third country.

Enterprises believe that, if they are required to carry out import procedures according to regulations, they propose Customs to allow them to re-export raw materials at the container terminal immediately after completing import procedures without having to transport it to the factory of the enterprise.

Imports and exports through Cat Lai both decreased

According to the Ho Chi Minh City Customs Department, when Ho Chi Minh City and 18 southern provinces and cities implemented social distancing in accordance with Directive 16 of the Prime Minister to prevent the Covid-19 pandemic, many businesses had to suspend production. Therefore, the number of enterprises carrying out import procedures at seaports and airports has decreased significantly.

At Cat Lai port, in August 2021, the volume of container cargo through the port only reached nearly 420,000 TEUs, down more than 18%.

In the last eight weeks (from July 12 to September 5, 2021), the volume of export containers delivered by customers to Cat Lai port for export, decreased by more than 28%. On average, imported goods taken out of Cat Lai port by customers decreased by 26.7%. Therefore, the inventory at this port increased significantly.

Problems arising from customs procedures

In addition to the problems with raw materials and inventory mentioned above, the suspension of production activities of enterprises, especially FDI enterprises in the production and export of goods, has created problems in customs procedures.

A problem in the process of implementing social distancing to prevent the Covid-19 pandemic is reflected by businesses, that is enterprises buy accessories in the form of consumer goods from abroad, conduct self-assembly, then use as a device.

However, because the factory in Vietnam had to stop working, in order to export the equipment that the enterprise had assembled to foreign countries, the enterprise submitted a declaration when importing components and accessories and installation records to assemble equipment, but because accessories are imported as consumables, they are exported as equipment, so according to current regulations, they are not accepted. In the current difficult conditions, the enterprise proposes to Customs to consider supporting and solving these problems for enterprises.

In addition, in the current social distancing situation, customs officers and employees work in rotation. Enterprises are looking forward to support in contacting professional departments by phone.

The enterprise also proposed Customs to switch from the method of inspecting goods in kind to the method of inspecting goods by X-ray (scanning machine) to minimize the contact between customs officers and employees of the logistic companies.

In addition, businesses proposed, as the goods owner was forced to stop working,

there was no one to receive the imported container, the customs authority should consider allowing the reservation of the requirements on the time limit    for import declaration (30 days from the date of arrival), the transaction time limit    (15 days from the date of opening the declaration) and regulations on penalties for goods exceeding 90 days from the date of arrival.