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Car importers feel the heat
Firms are crying for help from state agencies to radically settle the car import dilemma.
The Ministry of Industry and Trade (MoIT) took a positive move allowing import businesses to continue importing shipments of brand-new cars from nine seats or less in volumes and types as per contract terms signed before the enactment of Circular 20/2011/TT-BCT and having payment documents prior to May 12, 2011.
The MoIT issued Circular 20/2011/TT-BCT dated May 12, 2011, effective from June 26, 2011, stipulating additional procedures for imported cars from nine seats or less to protect consumer interests and safety of road traffic.
However, car importers are crying for further MoIT assistance.
A representative of a car trading firm based in Hanoi’s Thanh Tri district said the MoIT’s recent regulations triggered many concerns to firms already bogged down in difficulties with car import procedures. The firm was an example.
“Our car import contract signed on February, 2011 before the enactment of Circular 20 remains unsettled and almost 20 months have past. During that long period the global car market witnessed profound changes. Some car models as in the signed contracts were not manufactured any more and some models would come out of vogue at this time with poor sale perspective,” said the representative.
“Hence, to help firm ride out of difficulties, we want the MoIT to give us the right to revise imported car volumes and types but with the same import value to meet market needs,” he added.
Similarly, a representative from trading firm based in Haiphong city Kylin GX voiced concerns over firms’ huge inventory amid limited cash flows and flat auto market business.
“To engage in imports, we need a long-term plan. Irrespective of the sum we paid for our partner, our company ought to prepare in human resources, warehouse and most importantly tax payments when cars reach Vietnamese ports to pass customs check points,” said the company’s director Nguyen The Hung.
Hung then argued the MoIT’s proposed regulation demanding all car import shipments in this respect to reach Vietnamese ports within three months after MoIT enactment of guiding decrees would be impractical.
The representative of a car firm not facing similar woes as those in above said cases because it got an authorised paper from genuine car manufacturers assumed this move should have been taken after the enactment of Circular 20 more than a year ago to ease firms’ difficulties.
From its part, a MoIT’s representative said the ministry got proposals from firms asking not to follow Circular 20 regulations in case the car import shipments completed payment prior to Circular 20 enactment and car reached Vietnamese port after July 24, 2011.
The MoIT, after working with competent agencies, sent a report to the prime minister. On July 25 the MoIT got instruction from Deputy Prime Minister Hoang Trung Hai approving in principle with MoIT proposals.
The MoIT is working with relevant ministries and departments to get the government instruction guiding documents soon in place
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