Currently, almost all export processing enterprises have met customs control and supervision conditions in accordance with the regulations in Government’s Decree 18/2021/ND-CP, supplementing and amending some articles of Decree 134/2016/ND-CP detailing a number of articles of the Law on Import Tax and Export Duty.

Actively supporting businesses

Previously, on March 11, 2021, the Government issued Decree 18/2021/ND-CP supplementing and amending some articles of Decree 134/2016/ND-CP.

One of the key regulations of the decree are conditions for customs inspection and supervision, and application of tax policies to export processing enterprises (EPEs).

The Decree stipulates that no more than one year from the effective date of implementation, the EPEs must meet customs inspection and supervision from April 25, 2022. Only eligible enterprises can enjoy incentive taxes.

To ensure the compliance with the regulations, the General Department of Vietnam Customs (GDVC) has provided solutions to support enterprises.

The GDVC requested local customs departments to implement Decree 18 and issue guidance documents.

It has also directed local customs departments to work with EPEs in the areas, announce regulations on deadline that are not allowed to apply tax policies for non-tariff zones to the EPEs, make working reports, check conditions on customs inspection and control of the EPEs and monthly report on the performance.

Director General of Vietnam Customs issued regulations on data connection and exchange methods between the EPEs’ surveillance camera system with the Customs authority and the customs supervision for the EPEs.

During the performance, the GDVC’s departments has regularly directed local customs departments to check conditions of the EPEs and instruct regulations on tax incentives for them after April 25, 2022; completing the inspection and certification for EPEs eligible for customs control before April 25, 2022; and reporting enterprises that have not yet met conditions for customs control.

Local customs departments have worked with each local EPE to instruct legal regulations and monitor their implementation progress.

For enterprises that have not yet satisfied conditions, the local Customs have urged and guided them to comply with regulations; and found out causes and problems of the enterprises in the delay in compliance with regulations on customs control, explained to the EPEs about the preferential tariff policies for them after April 25, 2022.

The departments has reported to the local governments on the compliance with Clause 10, Article 1 of Decree 18/2021/ND-CP, and requested them to request EPEs to abide by the regulations.

Over 1,600 enterprises have met conditions

According to the Customs statistics, by the end of April 25, 2022 (the deadline for meeting conditions on customs inspection and supervision for the EPEs established before effective date of Decree 18/ 2021/ND-CP, and operating enterprises), 1,607 of 1,676 enterprises satisfied regulations on customs control.

Local customs departments have actively supported and instructed enterprises to complete the conditions.

As of May 12, nine additional EPEs certified that they met conditions on customs control.

Currently, 40 enterprises subject to prosecution or suspension of operation have carried out procedures for dissolution, relocation, and transfer to non-EPZ enterprises. 11 newly established EPEs are building factories; 1 EPE operated in software production, and 17 EPEs that cannot complete inspection and supervision conditions due to objective reasons.

In addition, 8 EPEs are continuing to improve their conditions for customs inspection and control due to facing financial difficulties, the actual situation of factories or a number of other objective reasons.

Source: Customs News