Binh Duong Customs holds dialogue with Japanese firms

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Deputy Director of Binh Duong Customs Department Nguyen Thanh Binh speaks at the conference. Photo: T.D
Deputy Director of Binh Duong Customs Department Nguyen Thanh Binh speaks at the conference. Photo: T.D

Speaking at the conference, Deputy Director of Binh Duong Customs Department Nguyen Thanh Binh said that the unit is processing procedures for more than 300 Japanese businesses. Most Japanese businesses investing in the area have well complied with customs regulations; coordinated with the Customs agency in the import and export processing and made many important contributions to completing the tasks of Binh Duong Customs Department. Many businesses are increasingly developing and expanding investment projects, actively contributing to local economic development.

Mr. Nagato Takahiko, Head of the Japanese Business Association in Binh Duong said: Accompanying Japanese businesses in recent times, I, myself and Japanese businesses in Binh Duong appreciate the prompt support by Binh Duong Customs Department. For businesses with production and export activities, customs procedures are an important issue. Therefore, the timely resolution of difficulties and enthusiastic support of Binh Duong Customs Department have support much for Japanese businesses to invest in Binh Duong.

Mr. Nagato Takahiko, Head of the Japanese Business Association in Binh Duong, highly appreciates the support work of Binh Duong Customs Department. Photo: T.D
Mr. Nagato Takahiko, Head of the Japanese Business Association in Binh Duong, highly appreciates the support work of Binh Duong Customs Department. Photo: T.D

To continue to help Japanese investors better understand new policies and laws related to import and export activities, Binh Duong Customs Department has spent most of its time guiding and disseminating new regulations and policies related to customs declaration procedures; common errors in export manufacturing and production, and export processing activities; on-site export and import procedures; points to note and warning some violations that businesses often make in customs declaration and post-clearance inspection activities…

In particular, at the conference, Binh Duong Customs Department answered many questions about customs procedures for businesses.

Answering questions of MAKITA VIETNAM Co., Ltd. about calculating VAT on handheld lawn mowers, the representative of Binh Duong Customs Department said, Clause 1, Article 3 of Decree No. 12/2015/ND-CP and Clause 2, Article 1 of Circular No. 26/2015/TT-BTC stipulate that machinery serving agricultural production is not subject to VAT.

At the same time, according to the guidance in Official Dispatch No. 1677/BTC-TCT dated January 29, 2016 of the Ministry of Finance on VAT on specialized machinery and equipment serving agricultural production, handheld lawn mowers serving agricultural production are not subject to VAT according to the provisions of Clause 1, Article 3 of Law No. 71/2014/QH13 dated November 26, 2014 amending and supplementing a number of articles of Tax Laws.

A representative of Japanese businesses raises questions at the conference. Photo: T.D
A representative of Japanese businesses raises questions at the conference. Photo: T.D

However, during the customs clearance process, on the customs declaration, MAKITA VIETNAM Co., Ltd. only recorded “handheld lawn mower”. Thu Dau Mot Customs Branch (where the company opened customs declarations) invited the representative of MAKITA VIETNAM Co., Ltd. to the customs office on declaring product names and purposes of using handheld lawn mowers. Currently, the branch has not yet concluded whether this item belongs to the tax-exempt list or not. The unit has instructed the company to send a proposal to the Ministry of Agriculture and Rural Development for review and specific determination of this item. The Customs agency will base on the official response from the Ministry of Agriculture and Rural Development to resolve procedures for the company

Regarding answering the questions of TOMOKU VIETNAM Company, OPTIMUS PACKAGING Company (VIET NAM) and a number of other companies regarding on-site import and export procedures, the representative of Binh Duong Customs Department said that the General Department of Customs has guided that the implementation of on-site import and export is in accordance with Article 35 of Decree No. 08/2015/ND-CP at all customs units across the country.

The Ministry of Finance is consulting with the Ministries of Industry and Trade, Justice, Planning and Investment to submit to the Government for consideration of solutions when abolishing Article 35 of Decree No. 08/2015/ND-CP in order to ensure consistency and synchronization between legal systems and conformity with practice for this activity. When the new guidance is available, Binh Duong Customs Department will update it to the business community.

In addition, Binh Duong Customs Department also answered some answered of businesses related to HS codes for companies opening on-site import and export. In particular, the pre-determination of HS codes for imported goods is based on Article 7, Circular 38/TT-BTC and the authority belongs the General Department of Customs.

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