More entities to be eligible for customs priorities

Monday, May 27, 2013 16:41

More businesses will enjoy custom priorities if the draft circular on priority regime is approved by the General Department of Customes. - Photo baohaiquan

(Biz Hub) - The General Department of Customs is working on a draft circular to replace Circulars No. 63 /2011/TT-BTC and No. 105/2011/TT-BTC on the pilot application of the priority regime in the state management of customs, lowering conditions for businesses to enjoy the customs priorities.

Specifically, the range of entities eligible for the priority regime would be extended to cover also exporters of agricultural or aquatic products, textile, garment or leather footwear and importers of raw materials and auxiliary materials for manufacturing above-said exports.

The turnover condition would be also loosened. To be eligible for priorities in carrying out customs procedures, businesses are required by current regulations to reach an annual import/export turnover of USD 350 million or USD 70 million, depending on their sectors.

The draft paper now proposes reducing these levels to USD 200 million and USD 50 million, respectively. Particularly for hi-tech businesses, no turnover requirements would be imposed.

The period for assessment of a business's law observance, which serves as a basis to determine the business's eligibility for customs priorities, would also be reduced to 24 months up to the date of application, instead of 36 months as currently prescribed.

Additionally, the competence to assess businesses' law observance would be vested only to customs offices and tax offices.

Regarding the priority regime, the draft paper adds some priorities to be given in the stage of customs clearance. For example, in case the e-customs data system breaks down or suspends, businesses might use simple dossier sets to get customs clearance.

Businesses would not be required to register material consumption norms with customs offices and submit liquidation reports but they would have to make input/output inventory reports on the basis of material consumption norms elaborated by themselves and send such reports to customs offices. - Vietnam Law

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