MINISTRY OF FINANCE ACADEMY OF FINANCE Faculty of Taxation and Customs ---------- GRADUATION THESIS TOPIC: THE IMPLEMENTATION OF CUSTOMS PROCEDURES FOR IMPORTED MEDICAL EQUIPMENT GOODS AT POZITRONICS CO. Speciality: Customs and Foreign Trade Operations Code: 05 Instructor: PhD. Vu Duy Nguyen HANOI - 2020 Graduation Thesis Academy of Finance DECLARATION I hereby declare that this thesis is a report of my own research and effort and all the data, information provided in this thesis are true and based on reality.2020 Student i Graduation Thesis Academy of Finance TABLE OF CONTENTS DECLARATION. i TABLE OF CONTENTS.
vi LIST OF ACRONYMS. vii LIST OF TABLES. viii LIST OF FIGURES. 5 THEORETICAL BASIS FOR CUSTOMS PROCEDURES FOR MEDICAL EQUIPMENT IMPORTS.
Overview of medical equipment imports. Definition of medical equipment imports. Classification of medical equipment article. Role of medical equipment imports 10 1.
Customs procedures for medical equipment imports at enterprises 11 1. Indentification of HS code, customs value and tax rate ii Graduation Thesis Academy of Finance 11 1. Checking commodity documents 12 1. Registration of specialize import license 14 1.
Customs declaration and customs declaration form transmission 16 1. Taking of delivery order 17 1. Preparation of customs document set 18 1. Tax payment and goods import customs procedure finalization 20 1.
Implementation of procedure of exchange for the delivery order and transportation of goods to the warehouse 21 1. Import customs procedure solving time-limit 22 1. Preparation of documents and goods for inspection after customs clearance (if any) 23 1. Factors affecting the customs clearance of medical equipment imports at enterprises 24 1.
Objective factors iii Graduation Thesis Academy of Finance 25 CHAPTER 2. 27 SITUATION OF IMPLEMENTING CUSTOMS PROCEDURES FOR MEDICAL EQUIPMENT IMPORTS AT POZITRONICS CO.1 Overview of development situation of Pozitronics Co. Development and establishment history 27 2. Operation situation of Pozitronics Co.2 Legal bases associated with the customs clearance process for medical equipment imports at Pozitronics Co.
Foreign Trade Management Law 2017 35 2. 03/2020/ND-CP amending Article 68 of Decree No. 36/2016/ND-CP as amended and supplemented in Decree No. 169/2018/NĐ-CP iv Graduation Thesis Academy of Finance with regard to medical equipment management 36 2.74/2018/ND-CP amending and supplementing some articles of Decree No.
132/2008/ND-CP regulating specifically the enforcement of some articles of the law on quality of products and goods 42 2. Circular 30/2015/TT-BYT 46 2. Situation of implementing custom procedures for medical equipment imports at Pozitronics Co. Situation of import of medical equipment articles at Pozitronics Co.
Process of implementing customs procedures for medical equipment imports at Pozitronics Co. Evaluation of the status of implementation of customs procedures for medical equipment imports at Pozitronics Co. 65 ORIENTATIONS OF AND SOLUTIONS TO IMPROVE THE EFFICIENCY OF IMPLEMENTING CUSTOMS PROCEDURES FOR MEDICAL EQUIPMENT IMPORTS AT POZITRONICS CO. v Graduation Thesis Academy of Finance.
Development orientations of Pozitronics Co. General development orientations 65 3. Future goals of the company for medical equipment imports 66 3. Solutions to strengthen the implementation of customs procedures for medical equipment imports at Pozitronics Co.
Solutions related to technical customs contents 67 3. Improving qualification, effectively training human resources 70 3. Completion of documents related to import customs procedures 71 3. Upgrade of material facilities and technologies 71 3.
Update of information and regulations on the customs laws; completion of legal bases 72 3. Joining in associations, partnerships and management agencies in the joint implementation of import customs procedures 73 3. Recommendations towards the company 73 vi Graduation Thesis Academy of Finance REFERENCES. 77 vii Graduation Thesis Academy of Finance ACKNOWLEDGEMENTS First of all, I truly appreciate the internship opportunity at Pozitronics Co.
They gave me a chance to corporate at work and to gain more not only knowledge but also experience. Besides, I would like to express my profound gratitude to my supervisor Mr. Vu Duy Nguyen - Deputy of Tax & Customs Department - who has continuously helped and encouraged me to develop the understanding of the subject. I could not complete my graduation thesis without his enthusiastic instructions, advice and correction.
viii Graduation Thesis Academy of Finance LIST OF ACRONYMS B/L : Bill of Lading CFS : Container Freight Station Fee CT : Computed Tomography DO : Delivery Order EIR : Equipment Interchange Receipt IVD : In vitro diagnostic medical device L/C : Letter of Credit MRI : Magnetic Resonance Imaging THC : Terminal Handling Charge VAT : Value Added Tax ix Graduation Thesis Academy of Finance LIST OF TABLES Table 1. Classification of medical equipment by groups. Income statement of Pozitronics Co. Quantity of medical equipment import declarations in the period of 2017 – 2019.
50 x Graduation Thesis Academy of Finance LIST OF FIGURES Figure 1. Organization chart of Pozitronics Co. Comparison of number of business import declarations of Pozitronics Co. in the period of 2017-2019.
51 xi Graduation Thesis Academy of Finance INTRODUCTION 1. Necessity of the study In the present trend of globalization and internationalization, foreign economic activities in general and import-export activities in particular are becoming more urgent than ever. It plays a very important role in the process of socio-economic development in Vietnam and the world as well. The fact shows that import and export business activities in Vietnam have been gradually growing.
Enterprises operating in the field of import and export are still expanding in both scale and stature, which have contributed to speed up the growth of the Vietnamese economy, helping the Vietnamese economy participate in integrating and expanding international trade relations with other advanced countries in the world. In the field of import and export business, the customs clearance process is an extremely-important and relatively-complicated process. The customs clearance process asks the enterprises operating in the field of import and export to possess deeply-experienced staff, master specialized operations and have knowledge of the laws. Therefore, if the enterprises want to complete an import- export business process well, they should follow the customs clearance procedures well.
To sum up, building a reasonable process and applying the process correctly and flexibly based on the input standards will bring about great values at the output stage of the process; these values will become much more effective if they are considered the inputs of another process. On the contrary, any failure to control and operate the process properly will cause serious consequences to the overall operation of processes in enterprises and organizations. Currently, our country has limited human resources, equipment and production knowledge, which have not been fully exploited, resulting in the fact that many types of modern equipment have not been put into production or they 12 Graduation Thesis Academy of Finance have been put into production but not worked efficiently. Therefore, domestic enterprises have always given priority to speeding up activities of importing modern machinery and equipment to meet essential needs of the State and people.
To facilitate the import of goods for business purposes, the enterprises should fully implement import customs procedures and receive permits by the relevant ministries and branches for the essential goods. The foregoing issues made me realize how important the customs clearance process for imports for business purposes is. Therefore, during my internship at Pozitronics Co., with the learnt knowledge together with the enthusiastic help of PhD. Vu Duy Nguyen and the teachers of the Department of Taxation – Customs as well as the staff currently working for Pozitronics Co., I have bravely learnt about, studied and selected the thesis “The implementation of customs procedures for imported medical equipment goods at Pozitronics Co., Ltd” as my course-end thesis.
Thesis study purpose Having an opportunity to survey and learn about the import business activities and thus drawing lessons for the author herself. Comparing, analyzing and evaluating theoretical knowledge versus practical knowledge, and implementing the motto “Study goes as a pair with practice”. Researching the theory and the status of implementation of customs procedures for medical equipment imports at Pozitronics Co.,and thereby analyzing, evaluating and proposing solutions to enhance the implementation of customs procedures at the Company. Study subject and scope Study subject: Carrying out the customs procedure process for medical equipment imports at Pozitronics Co.
Study scope: Carrying out customs procedures for medical equipment 13 Graduation Thesis Academy of Finance imports at Pozitronics Co. Period scope: 2017 – 2019 period. Study method During theresearch, many different methods have been applied in the thesis. They are dialectical materialism method, systematization method, comparative statistical method, qualitative analysis method, synthesis, logical reasoning, etc., thereby conducting research,surveying the status of implementation of customs clearance process for medical equipment imports at Pozitronics Co.
The SWOT matrix method is used to analyze strong points, weak points, opportunities and threatens in the implementation of customs procedures for medical equipment imports at Pozitronics Co. Thesis’s structure Apart from the foreword and conclusion parts, the thesis is composed of three chapters as follows: Chapter 1: Theoretical basis for customs procedures for the medical equipment imports. Chapter 2: Situation of implementing customs procedures for medical equipment imports at Pozitronics Co. Chapter 3: Orientations of and solutions to strengthening the implementation of customs procedures for medical equipment imports at Pozitronics Co.
Due to limited practical theoretical knowledge, shortcomings in the contents and research method of this thesis may be unavoidable. I strongly hope to receive suggestions and advices from the teachers and the staff of Pozitronics Co. Finally, I would like to express my sincere thanks to PhD. Vu Duy 14 Graduation Thesis Academy of Finance Nguyen and staff of Pozitronics Co.
for their whole-hearted help to me in order to complete this thesis. CHAPTER 1 THEORETICAL BASIS FOR CUSTOMS PROCEDURES FOR MEDICAL EQUIPMENT IMPORTS 1. Overview of medical equipment imports 1. Definition of medical equipment imports Imports are subjects to be cleared and subject to inspection and supervision by the customs authorities.
Imports1are the goods which are brought into the territory of Vietnam from abroad or from separate customs areas in accordance with laws. Based on the import purposes, imports are classified into two main groups: Firstly, imports for non-business purposes are also referred to as non- commercial imports or formerly referred to as non- commercial imports. Imports for non-business purposes are the goods which are brought into the Vietnamese customs territory or special areas within the Vietnamese territory which are considered as separate customs areas according to the laws for non-profit purposes (not for profitability purposes) but mainly for purposes of support, charity, mutual affection or for the living and consumption needs of organizations and individuals. In other words, imports for non-commercial purposes are the goods which are brought into the customs territory but not associated with the business activities of merchants.1, Chapter 1, Textbook “Customs inspection and supervision”.
15 Graduation Thesis Academy of Finance Imports for non-commercial purposes include: Gifts and presents of overseas organizations and individuals delivered to the Vietnamese organizations and individuals; Movable assets of organizations and individuals; Personal luggage of passengers on entry; Goods of diplomatic representative agencies and international organizations in Vietnam and people working at these agencies and organizations; Humanitarian aid goods; Free sample goods; Temporarily imported working tools and means of agencies, organizations and people on termed entry; Etc… Secondly, business imports are also referred to as commercial imports or formerly referred to as trade imports. Business imports are the goods imported for the purpose of seeking profits. In other words, business imports are the goods brought into the Vietnamese customs territory for the purposes of business or commercial activities of merchants. Commercial activities of merchants include: goods purchase and sale; commercial service supply; investment; trade promotion and other commercial activities for the profitability purpose.
For the approach that business imports are the goods brought into the customs territory for the purpose of commercial activities of merchants,business imports consist of many different categories corresponding to specific commercial activities/behaviors, which are: Imports under sale and purchase contracts; Imports for commercial service supply activities such as goods processing, transit, transshipment, etc.