Importing and exporting goods

1

• Importing and exporting goods
• Workshop Hai Phong, 6 July 2006
• Prepared by Ph.D. Nguyen Quoc Duy,
• NEU Business School

2
Legal Regulations in Import and Export

• Customs law number 29/2001/ QH 10, amended
  customs law number 42/2005/QH 11.
• Decree number 154/2005/NÐ-CP of detailing customs
  law about customs procedures, customs inspection
  and control
• Decree number 12/2006/NÐ-CP of detailing
  commercial law about international commodities
  buying and selling, buying and selling agencies
  and goods transition
• Circular 112/2005/TT-BTC on guiding
  implementation of Decree number 154.

3
Obligations in Importing and Exporting goods

• Steps in Exporting Goods
• Step 1 Acquiring quality certificates if
  required (no respons)
• Step 2 Going through customs procedures
• Step 3 Acquiring C/O certificate (no respons)
• Step 4 Maintaining export profile
• Steps in Importing Goods
• Step 1 Acquiring import permission and quality
• certificate if required
• Step 2 Going through customs procedures
• Step 3 Maintaining import profile

4
Interviews in Hai Phong

• Interviewed enterprises
• 16 interviews (complete partial)
• Doing regular import (14) and/or export (3)
• Located in Hai Phong (part doing custom
  procedures outside Hai Phong port)
• No enterprises requiring quality certificates
• 228 employees on average
• Yearly average
• 5 export shipments (exporting enterprises 28)
• 33 import shipments (importing enterprises 41)

5
Export detailed structure of compliance cost per
shipment
6
Import detailed structure of compliance cost per
shipment
7
Compliance Cost in Hai Phong

• Average per enterprise per year
• Compliance cost 24.5 million VND
• 23.1 million VND in export
• 1.4 million VND in import

8
Comparison provinces (1)

• Similarities
• Can Tho, Da Nang and Hai Phong
• No specific customs procedures
• Compliance cost follows same pattern in all 3
  provinces
• largest cost item is paying fees
• next is traveling to/from customs office
• next is waiting in line

9
Comparison provinces (2)

• Differences
• Compliance cost varies
• Main reasons for that
• Differences in enterprise size
• Differences in distance to customs office
• Differences in import and export volume

10
Findings Recommendations 1

• Customs procedures improved significantly in
  recent years.
• Time to do customs procedures is reduced and
  generally acceptable to enterprises
• Application of risk management and blue, yellow
  and red flow classification system is wellcomed
  by enterprises
• Still complains about application of too high
  import tax rates this taking much time (e.g.
  travel, solving disputes)
• Enterprises with less frequent import/export are
  sure to experience more problems and higher cost
  per shipment

11
Findings Recommendations 2

• Find ways to reduce (unofficial) fees by making
  procedures clear and quick, such as
• Providing information via websites, workshop,
  newsletters, etc. to inform enterprises and
  officers about the rates
• Install independent office where enterprises can
  complain when wrong rates are imposed
• Provide e-communication means
• Introduce official speeding money (higher fee
  for quick procedure on request)

12
Findings Recommendations 3

• Reduce travel time
• Avoid multiple visits to customs office
• E-applications
• Better information provision
• Cost reduction up to 3 of total costs
• Reduce time waiting in line
• Introduce system of appointments
• Avoid multiple visits to customs office
• E-applications
• Cost reduction up to 2 of total costs