MoF proposes solutions to support export processing enterprises affected by Covid-19 pandemic

Enterprises hope to resume operation. Photo: Le Huong

Export processing enterprises in Dong Nai and Bac Giang provinces are major enterprises and have been affected by the Covid-19 pandemic. Therefore, these enterprises have made plans to maintain their operation.

Some enterprises have applied the three-on-the spot model, so they needs large places for workers to stay, to serve vaccinations and production. However, they have not arranged places due to the huge volume of raw materials and products in stock.

In addition, due to the Covid-19 pandemic, if foreign suppliers suspend operation, it may cause a lack of supply of raw materials.

Therefore, enterprises still import raw materials for storage to meet production and delivery schedules to clients after the pandemic is under control. The enterprises are expected to receive more orders from customers, so they need to expand production and add more warehouses to store goods.

Exports of previous orders have been delayed due to the public health crisis. The transportation is restricted, leading to the increase in the quantity of goods.

Thus, export processing enterprises have proposed the Ministry of Finance (MoF) to allow them to rent warehouses outside industrial parks, export processing zones, high-tech parks and economic zones to store goods.

These warehouses are near enterprises’ premises and equipped with facilities and operate to meet requirements on customs inspection and supervision as prescribed in Article 80 of Circular 38/2015 of the Ministry of Finance.

The MoF has reported to the Prime Minister to remove difficulties and obstacles amid the Covid-19 pandemic.

The ministry has proposed to allow these enterprises to rent other warehouses to store their raw materials and products.

The ministry has requested that these warehouses must satisfy requirements on customs inspection and supervision as per Article 80 of Circular 38, and enterprises must report quarterly on the quantity of imports, exports and inventory of goods to customs.

Customs is in charge of checking, monitoring and controlling the operation of these warehouses.

The enterprises must bring all goods stored in the rented warehouses to the places eligible for storage not later than six months from the date of ending the pandemic notified by competent agencies.

Previously, export processing enterprises asked to rent more warehouses to store their goods due to their demand for expansion of production scale.

The Ministry of Finance provides regulations on procedures for hiring warehouses in industrial parks, export processing zones, high-tech parks and economic zones by the export processing enterprises (Article 80 of Circular 38/2015). However, regulations only specify that the warehouse is carried out in these zones.

Currently, due to the complicated development of the pandemic, especially in the southern provinces such as HCM City, Dong Nai, Binh Duong, Long An, the government has applied the policy of maintaining production in industrial parks under the “three-on-the spot” model and vaccination.

To comply with this policy, some enterprisers have suffered difficulties in production arrangement to meet requirements on pandemic prevention and control. They have to rent more warehouses to store the goods.