Taiwainese shoemaker Pou Chen Vietnam Enterprise Company Limited has just received customs priority, bringing the number of enterprises recognised as priority firms that can enjoy export-import incentives such as fast-track customs to 65.
|Pou Chen's Vietnamese workers in Dong Nai province.
Under the newly-released Decision No.494/QD-TCHQ, Pouchen Vietnam Enterprise Company Limited will have three years of priority. After this period, if the enterprise continues to meet the prescribed conditions, the duration will be extended.
According to Vietnam Customs, Japan is leading in the number of firms with customs priority in Vietnam, including a lot of well-known firms like Panasonic Networks, Canon Vietnam, and Sumidenso Vietnam.
This is a programme carried out by the Ministry of Finance since 2011 to make a list of enterprises meeting certain requirements and provide them with incentives, reduced procedures, tax refunds, and faster goods clearance, as well as a single goods declaration system for multiple exports and imports.
Qualifying for priority treatment
Companies that meet the following standards outlined in Decree No.08/2015/ND-CP will become eligible for preferential customs treatment:
- Compliance with the law on customs and taxation from the date on which the enterprise files a priority application for a period of two years;
- Compliance with the law on accounting and auditing and subsequent compliance with Vietnamese Accounting Standards (VAS);
- Maintenance of a system and process for managing, monitoring, and controlling import and export supply chains;
- Maintenance of specific export and import turnover requirements: For those importing and exporting, an annual turnover of $100 million is required. For those exporting goods made in Vietnam, an annual turnover of only $40 million has been set, while Vietnamese exporters of agricultural goods are only required to show a turnover of $30 million.
Benefits afforded under the priority treatment programme
According to the Law on Customs, companies qualifying for the priority treatment programme will be eligible to benefit from the following:
- Exemption from examination of supplementary customs documentation;
- Exemption from physical inspection of goods;
- Ability to submit incomplete customs declarations. It should be noted that within 30 days from the date of the registration of incomplete customs declarations or the submission of documentary evidence in substitution of customs declarations, customs declarants will be required to submit complete customs declarations.
- Prioritised access when carrying out tax procedures for goods in accordance with the Law on Taxation.