Updated import regulations to increase tradeTuesday, September 11,2018
AsemconnectVietnam - The application of a customs bond model would benefit the country, contributing to an increase of one per cent of the total import-export turnover according to comments by Minister and Chairman of the Government Office Mai Tien Dung.
A customs bond is an agreement that ensures any importer will pay all fees and operate according to local laws and regulations.
He said that the ministries had reformed special inspection procedures, reducing the number of regulations from 9,929 to just 1,700 and streamlining the import-export process.
Thus far, 968 out of 6,213 requirements for new businesses have been simplified or eliminated. This makes up 25.5 per cent of the planned changes.
“Last year, Viet Nam’s GDP grew 6.81 per cent, and it is expected to reach 7 per cent growth this year thanks to the Government’s efforts to save time and cost for firms,” he added.
Nestor Scherbey, senior policy advisor to the Global Alliance for Trade Facilitation (GATF) in Viet Nam, said outdated trade regulations and burdensome administrative procedures slow trade growth. He cited a World Bank study that calculates the cost of these unneeded regulations as equal to a 164.25 per cent “Invisible Tariff”.
Scherbey said this has been the largest barrier to Vietnamese small and medium enterprises (SMEs), which make up 97 per cent of Vietnamese firms.
A modern customs bond system will make it easier and cheaper for importers to bring goods into the country by simplifying the import-export process. Businesses will find it simpler to navigate customs checks and tariff policies.
Importers and those transporting goods domestically are required by the customs agency to purchase a bond from a surety company. If an importing company fails to pay fees or follow regulations, customs enforcement can file a claim. The surety company would then pay to a restitution fee. Finally, the importing company is required to reimburse the surety company.
GATF launched a new project in September 2017 to provide technical assistance for the Ministry of Finance (MoF)’s Insurance Supervision Authority. Ministries and State agencies regulating trade will also receive support.
The project means international WTO experts will help with the efforts to reform Viet Nam’s trade regulations. The VNACCS/VCIS e-Customs system will also receive attention.
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