HCM City (VNS/VNA) - Port infrastructure fees forinternational goods transported by inland waterways in and outof Ho Chi Minh City will be cut by half from August 1.

A meeting of the municipal People's Council on July7 passed a resolution on amendments and supplements to thecollection rate of fees for using infrastructure and public services at ports,including a fee reduction.

Accordingly, a 50% cut in fees will be applied to goods fortemporary import and re-export or deposited in bonded warehouses andfor transit and transshipment of goods.

It will collect the same rates for imported and exported goodsdeclared outside the city and those declared in the city.

Besides these measures, imported and exported goods for nationaldefense and security, responding to and overcoming consequencesof natural disasters and epidemics, and some other purposes will be exempt fromfees.

Earlier, business associations had proposed that the Prime Ministerask the city to stop collecting infrastructure fees at seaports.

They said that the proposed fees were very high and it wasnot the right time to implement a collection plan, adding that it would havenegative impacts on business operations and the Government’s economic recoveryand development programme.

In response, Deputy Prime Minister Le Minh Khai has asked the cityto adjust infrastructure fees at seaports by July.

Therefore, the city’s Department of Transport has recentlysubmitted a document to the municipal People's Committee asking for the feeadjustment after beginning the automatic fee collection from April 1.

The move aims to help businesses dealing with stiff challenges,such as rising fuel prices, and promote thecity’s economic recovery programme after the COVID-19 pandemic.

The reduction in fees also seeks to encourage businesses toincrease use of waterways and reduce pressure on road transport.

The current fee for goods fortemporary import and re-export or deposited in bonded warehousesand for transit and transshipment goods is 50,000 VND (2.2 USD) per tonne forliquid and bulk cargo, 2.2 million VND (94.5 USD) for a 20-foot container and 4.4million VND (189 USD) for a 40ft container.

For imported and exported goods declared outside the city, thecorresponding rates are 30,000 VND (1.3 USD), 500,000 VND (21.5 USD) and 1million VND (43 USD); and for those declared in the city, 15,000 VND (0.6 USD),around 250,000 VND (10.7 USD) and 500,000 VND.

More than 500 billion VND (21.5 million USD) has been collectedvia the automatic collection system so far.

The city expects to fetch revenues of about 3 trillion VND (129million USD) a year.

It plans to invest the amount in port connectivity projects,including new roads and upgrades to existing ones near ports, as well asimproving waterways and inland ports./.