Meetings and dialogues help businesses operate more favorable

Implementing Resolution 35 of the Government on assisting and facilitating enterprises in manufacturing and business activities, Vietnam Chamber of Commerce and Industry (VCCI) - Ho Chi Minh City Branch, Binh Duong Customs Department and provincial Import Export Association held a conference to meet and dialogue with import and export enterprises in the province. At the conference, many questions about tax, customs procedures, and certificate of origin (C/O) of businesses were answered on the spot.

Dialogue is one of the effective solutions to help solve difficulties of businesses. Photo: Manufacturing activities in NewChoice Foods Company (VSIP 2)

Advantages of origin

According to VCCI - HCMC Branch, up to early Sep 2016, Binh Duong province has 622 companies requesting C/O issuance, an increase of 8 companies over the same period in 2015. Total number of certificates, trade records granted from the beginning of the year is 46,000 sets of all kinds; this agency must grant averagely 300 records/day and 38 records/hour.

Leading the list is FDI enterprises with a number of 2,000 C/O sets/company. Businesses granted C/O mainly in industries, like furniture and interior decoration, accounting for 31%; machinery and equipment, accounting for 25%; backpacks, bags, accounting for 15%; footwear, textiles, accounting for 13% ... It can be said, in the process of international economic integration, C/O is an important competitive advantage when free trade agreements go into effect.

Some FDI companies in the province said, due to production demands, companies must import machinery and equipment from abroad, including second-hand machines. Although current laws have stipulated the quality and used duration of second-hand machinery, criteria used for quality valuation are still loose and inapplicable, causing difficulties for businesses. Regarding this issue, provincial Customs Department informed, customs officials also encountered difficulties as solving dossiers. For example, second-hand machinery must have a used period within 10 years according to regulations. But the quality rate of the machinery must be valuated independently by this agency based on current laws.

According to Mr. Nguyen Truong Giang, Deputy Director of Binh Duong Customs Department, in order to create favorable conditions for enterprises in accordance with Resolution 35 of the Government, to customs declarations of second-hand machinery import in line with actual demands and was certified by relevant authorities, but missing a few papers, such as valuation result, production period certificate..., Customs Department may consider clearance in order to keep up with production plan of businesses. However, companies must pledge that consignments must be put into proper use according to import licenses, and complement required documents, certificates within a prescribed period.

Open but must be rightful

A business leader under BIFA questioned: “We bought logs from a legal enterprise for processing and must pay in advance 10% value added tax (VAT), but then were not deducted 10% VAT as producing and exporting. For the same regulation (Clause 5, Article 5 of Law on Value Added Tax), each province has different explanation. Can we claim the 10% VAT?”

Representatives of provincial Tax Department said, Clause 5, Article 5 of Law on Value Added Tax stated, regarding goods that were subject to preferential tax rates or tax exemption but missed a few document, the company can temporarily pay 10% VAT to take out the goods for production. After completing production and export, 10% VAT will be reimbursed for the company, if the company submit all required documents. However, because this case had happened in another province, the Tax Department was not able to give a specific answer.

Regarding the import of second-hand machinery, Mr. Nguyen Truong Giang said, to facilitate business activities while awaiting additional valuation, Binh Duong Customs may consider clearance to consignments that missed a few documents and businesses must pledge use the consignments according to registered licenses. He also said that in order to soon solve the aforementioned problem, companies needed to actively give opinions at conferences, dialogues with the competent authorities.

It can be said that through dialogues with businesses, VCCI, Tax and Customs department have been very interested in solving problems, creating favorable conditions for enterprises in the province according to the spirit of Resolution 35 of the Government.

Reported by Duy Chi – Translated by Ngoc Huynh