Official Dispatch 4146/TCHQ-GSQL 2023 difficulties related to on-spot export and import (2024)

The General Department of Customs has received the Vietnam Textile and Apparel Association’s Official Dispatch No. 62/2023/VITAS-CS dated July 7, 2023 (Vitas); the Vietnam Pulp and Paper Association’s Official Dispatch No. 33/2023/CV-VPPA dated July 20, 2023; Official Dispatch No. 0107/KC-TCHQ dated July 17, 2023; Official Dispatch No. 0207/KC-VPTT dated July 28, 2023, of the Korea Chamber of Commerce and Industry; Official Dispatch No. VN242 of the Taipei Economic and Cultural Office in Vietnam, contributing opinions for draft amendment and supplementation of Article 35 of Decree No. 08/2015/ND-CP on on-spot export and import, the General Department of Customs has comments as follows:

1. The General Department of Customs is assigned by the Ministry of Finance to generally assess the current situation of on-spot export and import and propose solutions to amend Article 35 of the Government’s Decree No. 08/2015/ND-CP dated January 21, 2015, according to the direction of the Government Office in Notice No. 39/TB-VPCP dated February 20, 2023.

2. To implement the above content, the General Department of Customs has reviewed the relevant legal documents, assessed and summarized the on-spot export and import specified in Clause 1, Article 35 of Decree No. 08/2015/ND-CP since 1998; besides, the General Department of Customs has organized seminars (on July 12, 2023 in the North and July 19, 2023 in the South) to collect opinions from the Customs Departments of provinces and cities, associations and business communities for completion of the draft amendment and supplementation of Article 35 of Decree No. 08/2015/NQ-CP. In addition, the General Department of Customs has held a meeting with representatives of the Ministry of Industry and Trade to clarify the contents related to foreign traders without presence in Vietnam.

3. Regarding recommendations stating difficulties of the Associations, enterprises derived from the provision of Point c, Clause 1, Article 35 of Decree No. 08/2015/ND-CP, which specifies: “Goods purchased and sold between Vietnamese enterprises and foreign organizations and individuals without presence in Vietnam and designated by foreign traders to deliver to or receive from other enterprises in Vietnam”. To comply with this regulation, foreign traders must satisfy the condition of not being present in Vietnam in the case of on-spot export and import specified at Point c, Clause 1, Article 35 of Decree No. 08/2015/ND-CP. In case foreign traders already have a presence in Vietnam such as having representative offices, and branches, investing in establishing economic organizations; investing in capital contribution, buying shares, buying contributed capital; implementing investment projects; investing in the form of BCC contracts; forms of investment, types of new economic organizations as prescribed by the Government, they are not in the case of on-spot export and import specified at Point c, Clause 1, Article 35 of Decree No. 08/2015/ND-CP.

Pursuant to the provisions of the Commercial Law, the Law on Foreign Trade Management, and the transaction nature of goods, the goods for export and import must be brought out/brought into Vietnamese territory or brought out/brought into the exclusive customs area. For on-spot export and import, goods are traded domestically, there is no movement of goods out of Vietnamese frontier, which is domestic trading activity. Therefore, it is necessary to conduct an overall evaluation of the on-spot export and import to propose a plan to amend and supplement according to the nature of this transaction activity. Customs offices do not carry out customs procedures for this activity, which is transformed into domestic trading activities managed by domestic tax offices. The proposal by associations and enterprises to maintain the provisions of Point c, Clause 1, Article 35 of Decree No. 08/2015/ND-CP is inconsistent with the commercial law, the law on foreign trade management and the nature of this transaction. When abolishing customs procedures for goods trading activities specified at Point c, Clause 1, Article 35 of Decree No. 08/2015/ND-CP, one administrative procedure in the enterprise's purchase, sale and delivery of goods shall be removed, contributing to reducing costs for enterprises.

For reports and difficulties of the Associations and enterprises related to on-spot export and import, the General Department of Customs will research in the process of amending Article 35 of Decree No. 08/2015/ND-CP.

The General Department of Customs hereby informs the Association for implementation./.