Tightening control over surcharges with foreign shipping companies

Many businesses are frustrated with the situation where foreign shipping companies unilaterally collect and increase various fees and surcharges for Vietnamese import and export goods.

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A container ship at Hai Phong port. (Photo: Tuấn Anh/TTXVN)

Recently, representatives of many logistics companies have expressed their opinion that due to the lack of sanctions on the price increase of foreign shipping lines, there has been an invisible advantage for foreign shipping lines to raise fees; at the same time, causing domestic import-export enterprises to suffer losses.

The Secretary-General of the Vietnam Shippers’ Association, Mr. Phan Thông, has sent a written proposal to the Government and relevant agencies regarding strengthening the management of surcharges by foreign shipping lines.

The Vietnam Shippers’ Association also proposed the need for strong measures to control the adjustment of Terminal Handling Charges (THC) and surcharges by foreign shipping lines.

In response to this issue, the Chairman of the Vietnam Logistics Business Association (VLA), Mr. Le Duy Hiệp, expressed his agreement and stated that currently, foreign shipping lines only need to announce the price changes 15 days before the adjustment without inspection, explanation of the factors that make up the fees, surcharges, or any reports or restrictions from any regulations of the competent authorities.

The consequence is that shipping lines increase surcharges, causing dissatisfaction among businesses, but the problem has not been thoroughly resolved.

According to Mr. Hiệp, it is time to tighten the management of surcharges for foreign shipping lines. To do so, it is necessary to study legal and international practices.

“They should be required to obtain consent from the management agency and the association if they want to increase fees before it is issued,” Mr. Hiệp suggested.

In a recent letter to the Prime Minister and relevant ministries and agencies, the Vietnam Shippers’ Association proposed 3 measures to strengthen the management of surcharges by foreign shipping lines.

First, supplement surcharges for container shipping services by sea into the list of goods and services subject to price declaration to improve the price management mechanism and surcharges for goods at ports, avoid cases where shipping lines arbitrarily raise prices and improperly charge to the detriment of the rights of import-export companies.

Shipping lines need to report on the structure of THC fees. In case these surcharges generate super profits, it is proposed that the competent authorities consider the application of special consumption tax policies.

Second, promptly review and issue a management mechanism for collecting various types of surcharges, compare with the provisions of Vietnamese law and international practices, require ship owners to immediately stop collecting unreasonable fees, and recommend the Prime Minister to soon issue appropriate mechanisms for managing fee collection activities of foreign shipping lines operating in Vietnam.

Third, refer to the experience of managing foreign shipping lines in neighboring countries to build and improve solutions to strengthen the control of the activities of foreign shipping lines, prevent the loss of state budget revenue, and protect the interests of domestic businesses.

About 15 million containers of goods are imported and exported through Vietnamese seaports each year, generating revenue of about $3 billion. This is an important source of profit that foreign shipping lines cannot ignore. Therefore, according to the representative of the logistics business association, the management agency needs to consider strengthening the control of foreign shipping lines to ensure the rights and legitimate interests of businesses and the country.

“The key is to manage THC fees in accordance with general practices and Vietnamese law,” emphasized the Chairman of VLA./.

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