Customs agencies creating difficulties for enterprises?

VnnNews – While customs agencies in all localities impose the import tariff of five percent on certain animal feed imports, the Ba Ria-Vung Tau customs agency imposes 10 percent.

Circular No 129 dated December 26, 2008 of the Ministry of Finance stipulates that animal and poultry feed, both processed and unprocessed, such as bran, oil cakes, bone powder, are subject to five percent VAT.

 

In Circular No 131 dated the same day, providing the preferential import tariff, the ministry confirms that oil cakes and other solid materials, collected from soybean extractions, are taxed five percent.

 

However, on June 5, 2009, the Ministry of Finance, in Dispatch No 7953, instructs local customs agencies to collect 10 percent value-added tax on imported materials used to make animal feed.

 

The dispatch says that materials for making animal feed and animal feed are two different concepts and must be imposed different tariffs.

 

As a result, hundreds of thousands of tonnes of oil cakes which have arrived at Ba Ria-Vung Tau province have been imposed 10 percent in VAT instead of five percent. Meanwhile, customs agencies in other localities have imposed five percent on the consignments which have arrived recently.

 

Importers lose billions dong

 

In order to prove that different tariffs are being applied in different localities, an enterprise has given Nguoi lao dong newspaper a series of customs declarations. On July 31, an enterprise in Dong Nai province imported 2,150 tonnes of oil cakes and the imports were imposed five percent. On August 12, another enterprise, also in Dong Nai, imported 880 tonnes of oil cakes through Khanh Hoi port, and also paid a five percent tariff. On August 19, a company in Binh Duong province also paid five percent in VAT for 1,050 tonnes of imports.

 

Meanwhile, the Medi Imabari ship, carrying 45,000 tonnes of soybeans of Cargill, docked at PTSC Phu My port on July 11 and VTC Ocean, carrying 20,000 tonnes of oil cakes, docked at Cai Mep on August 10. They were told they had to pay the tariff of 10%. The importers cited both circulars 129 and 131, but their arguments were not accepted by the local customs agency.

 

The problem is that enterprises which import products in large quantities must have consignments go through the ports in Ba Ria Vung Tau, so they have to bear higher tariffs. They would rather pay the higher tax than paying the fine of $15-20,000 to keep ships in port for an extended period.

 

The owner of one business complained that on 3,000 tonnes of imports he lost 1.2 billion dong due to the higher tax. Meanwhile, the 20 businesses which have goods on Medi Imabari and VTC Ocean will have to pay an additional sum of 20 billion dong. In order to avoid losses, the importers will have to raise sale prices, which will burden consumers.

 

Guidance document makes things more confused

 

The Vietnam Feed Association sent a document to relevant agencies, complaining about the high tax, to which the Ministry of Finance issued a reply on July 31, 2009.

 

However, the problem still remains. An official from the Ba Ria-Vung Tau Customs Agency said that the document has made things more confused.

 

The documents released before by the ministry, though giving different tax rates, were clear about the tax rates. Meanwhile, the latest document is so unclear that it could be understood in many different ways.

 

VietNamNet/NLD

 

Tags: Ba Ria Vung, Ba Ria Vung Tau, Five Percent, Of Oil Cakes, Oil Cakes, Ria Vung Tau, The Ministry, Physics games

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