Vietnam is strictly investigating re-export trade, third country shipments and tax avoidance! More than a hundred truckloads of goods have been seized!

Attention re-export trade! Vietnam introduces new regulations on temporary in and then out, re-export goods trade operation.

According to Vietnam News Agency, the Ministry of Industry and Trade of Vietnam Import and Export Bureau revealed that according to the Ministry’s Circular No. 9, since January 1, 2021, for temporary in and out of goods and re-export trade, if imported through the land border to Vietnam or re-export to foreign countries can only be carried out through international ports and bilateral ports official ports.

In particular, this provision also applies to foreign temporary inward and outward goods imported into Vietnam or re-exported abroad through land borders and stored in bonded warehouses.

In layman’s terms, starting from January 1, 2021, Circular No. 09/2020/TT-BCT issued by the Ministry of Industry and Trade of Vietnam comes into effect and temporary inward and outward goods exported from third countries transiting Vietnam to neighboring countries (other countries) will not be traded through border points, but only through major ports.

In order to cooperate with the realization of Circular No. 9, the Import and Export Bureau advises all enterprises dealing with temporary import and export, transit of goods and storage of goods in bonded warehouses to strictly implement the provisions of the Circular and other relevant legal documents.

In addition, the 25 border provinces and municipalities’ Departments of Industry and Trade are responsible for providing information and guidelines on Circular No. 9 to local enterprises operating temporary inbound and outbound goods. At the same time, they have to work closely with local functional departments to further strengthen management, report and make suggestions to the Ministry of Industry and Trade and provincial people’s committees in a timely manner, and jointly solve and deal with problems that arise.

As China is the largest trading country entering Vietnam through land ports, enterprises that do re-export trade through Vietnam to avoid taxes should pay attention to avoid unnecessary troubles and losses.

The management of Vietnam believes that the border model has been outdated and is prone to smuggling and infringement of intellectual property rights. Therefore, the Ministry of Industry and Trade of Vietnam proposed to the Vietnamese government to gradually abolish this mode of trade, which was agreed by the government in August 2020, and then the Ministry of Industry and Trade of Vietnam issued the Circular No. 09/2020/TT-BCT.

The name of the circular is “Circular on the application of the port of entry and exit, re-export and free trade zone for the import and export of goods”, which is to specify the port of trade for products transiting Vietnam from third countries and then exported to neighboring countries. The transaction port can only be the main port, that is, Vietnam and neighboring countries have formal customs clearance and inspection points of the official port (not the traditional sense of the border crossing point).

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