Reforming the temporary import and re-export policy.

Measures to prevent exploitation for smuggling and trade fraud, as well as to address shortcomings in policies on temporary import and re-export, are being urgently finalized by relevant agencies for submission to the Government.

Deputy Prime Minister Hoang Trung Hai chaired a meeting on the implementation of Directive No. 23/2012/CT-TTg. Photo: VGP/Nguyen Linh

On the morning of August 16th, in Quang Ninh, Deputy Prime Minister Hoang Trung Hai chaired a meeting with management agencies, border localities, and trading enterprises on the actual situation of implementing Directive No. 23/2012/CT-TTg dated September 7, 2012, of the Prime Minister on strengthening the management of temporary import and re-export (TNTX), transshipment, and bonded warehouse activities.

Timely rectification of temporary import and re-export activities.

Directive No. 23/CT-TTg is considered a necessary solution to address the shortcomings that have emerged in the temporary import and re-export (TNTX) business model in trade.

Prior to 2012, taking advantage of lenient regulations, businesses involved in import and export activities engaged in smuggling, trade fraud, and illegal transportation of goods across borders, including the import and export of goods prohibited under international conventions to which Vietnam is a signatory, such as the CITES and Basel Conventions.

According to findings by authorities, many businesses have opened customs declarations registering export routes and locations but have not actually exported through these points, arbitrarily breaking customs seals, transshipping or transporting goods through trails and shortcuts where there is no supervision, and making incorrect declarations regarding the name, type, quantity, weight, and characteristics of goods in some temporary import/export shipments.

Businesses also reported that in the import-export sector, many businesses are in a passive position in transactions, sometimes facing difficulties in exporting goods and large backlogs at ports and border gates. On the other hand, due to the lack of specific conditions and criteria, many small and weak businesses participate in import-export with unfair competitive tactics, vying for customers and lowering service prices.

With the issuance of Directive 23, the situation regarding re-export of goods has been rectified by limiting the number of items permitted for re-export. Hazardous waste, scrap plastic, animal by-products, offal, and used consumer goods are prohibited. Furthermore, the policy also stipulates stricter regulations on re-export checkpoints, adds conditions for traders engaged in re-export, and strengthens management and supervision measures for goods, such as specific regulations on bills of lading and storage times.

Overall, the implementation of Directive 23 after one year has effectively rectified the business activities of temporary import and export, prevented the exploitation of the system for trading prohibited goods and commercial fraud, and stopped the illegal transportation of goods that violate international conventions.

In addition, some businesses and localities have also reflected on and proposed some policy contents to both continue to rectify and strictly manage the import-export business, while at the same time creating more favorable conditions and maximizing the advantages of this type of business. In reality, in recent times, many border gates have become quiet, with a sharp decrease in the volume of goods, impacting the economic and trade interests and the lives of people in many areas.

The issues include expanding re-export checkpoints for used goods, lifting the temporary suspension of re-export business for livestock and poultry by-products, as well as some goods with high trade demand but low risk of smuggling, and increasing flexibility in the storage period of goods to suit the specific characteristics of each item...

Overview of the meeting. Photo: VGP/Nguyen Linh

Address the shortcomings promptly.

Listening to the opinions of businesses and management agencies regarding the implementation of enhanced management of import-export, transshipment, and bonded warehouse operations, Deputy Prime Minister Hoang Trung Hai agreed with the analyses and assessments of both the strengths and weaknesses of the management policies in the past. Based on this, he directed measures and orientations to make policies more effective in managing this dynamic and complex sector.

Considering this a normal and common business activity in international trade, the upcoming policy on managing temporary import and export activities will, on the one hand, continue to implement measures to prevent exploitation for smuggling and trade fraud, and on the other hand, address current shortcomings that hinder the import and export of common goods that can be quality-controlled and are less susceptible to smuggling.
The Deputy Prime Minister agreed with the proposal to consider more flexibility regarding border crossings and the storage time of goods for businesses, while continuing measures to prohibit the transfer and splitting of containers, and strengthening customs supervision in temporary import and export business by increasing the inspection rate and raising the deposit value.

The issue of planning the number of import/export channels and imposing strict penalties, such as permanently revoking licenses for businesses importing and exporting prohibited goods, and preventing the smuggling of such goods into the domestic market, was also raised by Deputy Prime Minister Hoang Trung Hai for localities, ministries, and sectors.

The Ministry of Industry and Trade is expected to finalize the new policy and submit it to the Government for consideration and decision in the near future.

According to Chinhphu.vn - LT