Vietnam: Amending cases of checking of use and inventory of raw materials

Specifically, according to Decree No. 59/2018/NĐ-CP of Vietnam’s Government, there are 04 cases of checking of use and inventory of raw materials, machinery and equipment, including:

- Organizations or individuals considered as entities who may pose the risk of importing machinery, equipment, raw materials and inputs of which the life cycle is ended but the entities still produce no commodity for export.

- There are reasonable grounds for demonstrating that organizations or individuals report a sudden increase or reduction in importing raw materials, machinery, equipment or exporting products.

- There are reasonable grounds for demonstrating that organizations or individuals have sold their raw materials, machinery, equipment or products at the domestic market without declaring in the customs declaration.

- Declaration of exported products carried out by organizations or individuals is found to be in breach of legal regulations or contrast to the actual condition.

Decree No. 59/2018/NĐ-CP has eliminated the case where there is any suspicious difference in data or figures shown in the financial report on use of raw materials, machinery, equipment and exported commodities in comparison with those shown on the system of customs authorities.

Besides, as for the following cases, the organizations or individuals shall provide explanation in writing as required by the customs authority:

- Organizations or individuals considered as entities who may pose the risk of importing machinery, equipment, raw materials and inputs of which the life cycle is ended but the entities still produce no commodity for export.

- There are reasonable grounds for demonstrating that organizations or individuals report a sudden increase or reduction in importing raw materials, machinery, equipment or exporting products.

The inspection shall only be carried out after the organizations or individuals provide explanation in writing or after the customs authority demonstrating that their explanation is unacceptable with reasonable grounds.

View relevant provisions at Decree No. 59/2018/NĐ-CP of Vietnam’s Government, effective from June 05, 2018.

-Thao Uyen-

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