Vietnam’s “People’s Daily” reported on January 5 that according to the Vietnam News Agency, the Import and Export Bureau of the Ministry of Industry and Trade of Vietnam revealed that according to the Ministry’s Notice No. 9, starting from January 1, 2021, for temporary imports Re-export of goods and re-export trade, if imported to Vietnam through land borders or re-exported to foreign countries, can only be carried out through official ports of international ports and bilateral ports. In particular, this regulation also applies to foreign temporary import and export goods imported into Vietnam through land borders or re-exported abroad and stored in bonded warehouses.
In layman’s terms, starting from January 1, 2021, Notice No. 09/2020/TT-BCT issued by the Ministry of Industry and Trade of Vietnam will come into effect. Temporarily imported and re-exported goods exported from neighboring countries (other countries) will not be able to be traded through border trade points, but can only be traded through major ports.
Mutual trade between border residents refers to the cross-border trade between border residents within 20 kilometers of the border and at open points or designated markets approved by the government within 20 kilometers of the border. Commodity exchange activities within the scope.
The border trade area (point) refers to the entry and exit of transport vehicles carrying border trade goods, docking, and activities such as trading, loading, unloading, storage, and shipping of border trade goods. specific area.
In order to cooperate with the implementation of Notice No. 9, the Import and Export Bureau recommends that all companies engaged in temporary import and re-export, re-export of goods, and storage of goods in bonded warehouses strictly enforce Implement the provisions in the notice and other relevant legal documents.
In addition, the industry and trade departments of 25 border provinces and cities are responsible for providing information and guidance on Notice No. 9 to local businesses operating temporary import and re-export goods. At the same time, we must work closely with local functional departments to further strengthen management, promptly report and make suggestions to the Ministry of Industry and Trade and the Provincial People’s Committee, and jointly solve and deal with problems that arise.
Since China is the largest trading country that enters Vietnam through land ports, companies intending to do tax avoidance in re-export trade through Vietnam should pay attention to avoid unnecessary trouble and losses.
Vietnam’s “Investment News” reported on January 1 that due to the impact of the epidemic and the downturn in global trade, Vietnam’s import and export volume still performed well. . Vietnam’s total import and export volume in 2020 reached US$543.9 billion, a year-on-year increase of 5.1%, marking the fifth consecutive year of surplus. With this, Vietnam has become the 22nd largest economy in the world in terms of export volume and export capacity, and the 26th largest international trade economy. At present, Vietnam has signed two heavyweight free trade agreements, namely the Vietnam-EU Free Trade Agreement (EVFTA) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), which will allow Vietnam to export to Canada, When entering markets such as Japan, Mexico, Peru, France, and Germany, it can enjoy more tariff preferences, giving it a huge export advantage.
Vietnamese management believes that the cross-border trade model at the border has fallen behind and can easily breed smuggling and intellectual property infringement. Therefore, the Ministry of Industry and Trade of Vietnam has made suggestions to the Vietnamese government to gradually abolish the border trade method. After receiving the government’s consent in August 2020, the Ministry of Industry and Trade of Vietnam issued this notification numbered 09/2020/TT-BCT.
The name of the notice is “Notice on Applicable Routes for Import and Export Ports of Goods Operating in Temporary Entry and Re-export, Re-export, and Bonded Zones”, which is for transit from a third country to Vietnam The trading ports for products re-exported to neighboring countries are clearly defined. It is stipulated that trading ports can only be major ports, that is, formal ports where Vietnam and neighboring countries have formal customs declaration and inspection points (rather than border trade points in the traditional sense).
From July 2020 to the present, Lao Cai Province in Vietnam has detained 95 large trucks from China waiting for delivery at the Lao Cai freight yard on the grounds of smuggling and infringement of intellectual property rights. These seized trucks are all in China. The declaration was made in the name of border trade.
Vietnam is considered by many to be the biggest beneficiary of the Sino-US trade friction. Since the Sino-US trade friction, many Chinese companies have switched their goods through Vietnam and then exported them from Vietnam in order to avoid high tariffs. In response to this phenomenon, the United States warned Vietnam last year. High-level officials in Vietnam have also noticed this phenomenon. In order to avoid trade conflicts between Vietnam and the United States, Vietnam has repeatedly adjusted its rules in determining the origin of imports and exports.
Last year, the “Made in Vietnam” (origin) standard draft issued by the Ministry of Industry and Trade of Vietnam stipulates:
Product labels must Indicate the place of origin. If a product is purely produced in Vietnam or is completely produced in Vietnam, it can be marked as “Made in Vietnam”.
If the product is made in the final processing stage in Vietnam, it must meet the relevant commodity code (HS) conversion regulations andOnly when the domestic new value ratio reaches more than 30% can it be labeled “Made in Vietnam”.
Ou Anh Tuan, Acting Director of the Customs Administration and Supervision Bureau of the General Administration of Vietnam Customs, said that there are 15 categories of goods with a high risk of fraud and counterfeiting in origin. It is worth noting that the textiles, garments, and leather shoes industries are and handbags; computers; electronic products and their parts; household appliances and their parts; aluminum and aluminum products; steel and steel products; wood and wood products. </p
