Sep 9, 2012

Vietnam - MOF puts temporary imports for re-export under probe

Follow Me on Pinterest
VietNamNet Bridge – Industrial waste, unsafe frozen products and petroleum have been imported in masses recently as temporary imports. However, the importers do not intend to re-export the imports.

The Ministry of Finance MOF has taken inspection tours to some key border gates namely Hai Phong, Lang Son and Quang Ninh to find out the real situation of the temporary import for re-export later.

A lot of products have not been re-exported as initially scheduled, thus causing serious environment pollution and harming people’s health. Meanwhile, the business deals have brought fat profits to the goods owners.

The ministry, after the inspection campaign, has urged to lay down a perfect legal framework to prevent the big consequences of the temporary imports which are not re-exported later.

167 containers of goods seized

MOF has found that the turnover of temporary imports for re-export has been increasing rapidly and abnormally recently. In 2006, the total turnover of this kind of imports was 1.3 billion dollars, while the figure jumped to 6.3 billion dollars in 2011. In the first six months of 2012 alone, the figure was 3.8 billion dollars.

As such, Vietnam witnessed a five-time increase in the imports turnover just within five years.

The problem lies in the gap between the imports and the re-exports. In 2007, for example, Vietnam imported 1.755 billion dollars’ worth of goods, but the re-exports were worth 120 million dollars only. The figures were 5 billion dollars and 4 billion dollars, respectively, in 2010.

Deputy Minister of Finance Do Hoang Anh Tuan said that MOF’s officials, after inspecting three key localities, have discovered 1010 consignment of goods, which should have been re-exported 180 days ago. The smallest consignment of goods has one container, while bigger consignments have tens of containers.

The General Department of Customs has discovered violations in 167 out of the 277 containers of temporary imports. These included 33 containers of frozen viscera. The other products were prohibited goods, lead batteries and waste. The general department has also affirmed that 500-600 40-feet “problematic” containers have been staying inland.

“About 600 containers are wandering somewhere and we have to track them down,” said Nguyen Van Can, Deputy Head of the General Department of Customs.

“254 tons of sugar has gone out of the Hai Phong Port since April, but the consignment of goods has not been re-exported yet. We have found the consignment with the seal removed.

The sugar products are now in the northern province of Lao Cai. It is very likely that the sugar products would not be re-exported, while the goods’ owners would have to pay the high tax of 80 percent for domestic consumption. However, if a part of the sugar consignment has been sold on the domestic market already, competent agencies would impute the blame to the goods owners.

Competent agencies have also found a big volume of petroleum imports which has not been re-exported. MOF has suggested that the government should not allow importing petroleum products by sea.

Also according to MOF, one of the most important reasons behind this is the loopholes in the policies. Some kinds of goods are prohibited in other countries, while not prohibited in Vietnam, such as hazardous waste or used electronics parts.

Especially, under the current laws, businesses are only required to show the contracts on temporary imports, while no need to show the contracts on exporting the goods.

Compiled by C. V


Business & Investment Opportunities 
YourVietnamExpert is a division of Saigon Business Corporation Pte Ltd, Incorporated in Singapore since 1994. As Your Business Companion, we propose a range of services in Strategy, Investment and Management, focusing Healthcare and Life Science with expertise in ASEAN. We also propose Higher Education, as a bridge between educational structures and industries, by supporting international programmes. Many thanks for visiting www.yourvietnamexpert.com and/or contacting us at contact@yourvietnamexpert.com

No comments:

Post a Comment