VASEP makes effort to ease hardship for seafood enterprises

The congress analyzed thoroughly production and exports of fisheries industry in the first 9 months of 2012 and discussed recommendations to competent authorities with an aim to solving enterprises’ problems and mentioned to the Association’s restructuring. The recommendations are:

1. VASEP petitioned the National Assembly to review draft on revised tax management law and allow enterprises to receive a 275-day grace period on duty payments for their imports of raw fish for processing and exporting without credit institution’s credit guarantee. Accordingly, the enterprises can overcome the shortage of raw material, enhance their export turnover and create jobs for workers in fisheries industry.

2. VASEP suggested Ministry of Agriculture and Rural Development (MARD) to remove radiation test on raw fish imported from Japan into Vietnam to carry out the processing contract signed with foreign partners because radiation in consignments imported from Japan was not detected during the past year.

3. VASEP proposed Ministry of Natural Resources and Environment (MONRE) to consistently apply regulations of waste water treatment stipulated for seafood processors operating in industrial parks.

4. VASEP petitioned the government to allow enterprises to retain at least 80 percent of union dues (coming from extraction of 2 percent from workers’ salary for union dues) so that enterprises can have enough funds to spend on union’s activities at the enterprises to enhance workers’ life.

5. Japan’s management agencies of hygiene and food safety imposed a too low maximum residue limit (MRL) of ethoxyquin on Vietnam shrimp. The MRL is irrational and unsuitable with international regulations and stifles Vietnam’s shrimp shipment. VASEP proposed the state to intervene and solve “Ethoxyquin problem” so that the problem can be discussed in common forums of World Trade Organization.

6. VASEP asked MARD to urgently adjust and update regulations of food safety and hygiene on exported seafood.

7. VASEP proposed the government to put shrimp and shrimp farming into list of items which are benefited from loans coming from the state’s supportive policies like pangasius and other agricultural products.

On November 20^th 2012, with 92.57 percent of the votes, the National Assembly approved the amended and supplemented Tax Management Law. Accordingly, a 275-day deadline of tax payment is remained for imported raw materials serving for exported goods.

VASEP repeatedly sent its recommendations to the National Assembly, the Government, Ministry of Finance, Ministry of Industry and Trade, MARD. VASEP petitioned the authorities to allow enterprises to enjoy conditional grace period tax or to divide enterprises into groups to easily control their tax payment like the ways applied by Customs. The authorities should remove the regulation that businesses can enjoy 275 day grace period tax with credit institution’s guarantee.

Accepting recommendations of VASEP and some other commodity associations, on November 14^th 2012, MOF proposed the government to petition the National Assembly to adjust some regulations in the draft on Tax Management Law. Accordingly, businesses can enjoy 275 day grace period for paying import duty on inputs (without banks’ guarantee) but they must meet two enclosed conditions.