10 outstanding Customs events in 2018

	Customs sector reached 300,000 billion VND in revenue collection
	Implementation of National Single Window Mechanism: Towards online public service at level 4
	Northern Customs Departments: Making efforts to achieve the highest revenue

2018 is evaluated as the year with many bright points for Customs. Photo: Huy Kham

1. Efforts to implement the state budget collection task in 2018

As of December 24, 2018, the total tax revenue of the entire Customs industry reached 305,922 billion VND, equaling 108.1% of the estimate according to the ordinance norm (283,000 billion VND) and reaching 104.41% of the target that the Party Committee of the Ministry of Finance assigned (293,000 billion VND). The General Department of Customs has successfully endeavoured to fulfill the assigned task of State budget collection in 2018.

Right from the beginning of the year, the General Department of Customs has focused on implementing the task of collecting state budget, allocating targets to collect state budget and assigning tax recovery targets to each provincial and municipal customs department; at the same time it deployed solutions to manage state budget revenues, combated smuggling and trade frauds; promoted post-clearance inspection, and paid special attention to preventing frauds through valuation assessments, tax rate, origin, recovery of tax debt settlement.

Deputy General Director Nguyen Duong Thai and Deputy General Director Vietcombank Nguyen Danh Luong signed an agreement to collect e-tax 24/7. Photo: T.Trang

For promoting administrative reforms to create favorable conditions for import and export activities and actively coordinating with ministries and agencies to implement the National Single Window customs mechanism, the General Department of Customs has signed an agreement with 39 commercial banks, of which 24 commercial banks have implemented electronic tax payment and 24/7 customs clearance, enabling enterprises to pay taxes at all times, everywhere and by every means. By the end of November 2018, the tax revenue of the Customs sector through the banking system in coordination with the collection (electronic tax collection) was 269,990 billion VND, reaching 95% of the total revenue (284,202 billion VND), and 3,235 enterprises had implemented electronic tax payment 24/7; 21 banks and branches had transactions reaching 14,902 billion VND and 87,006 transactions.

2. The General Department of Customs chaired, coordinated, detected and arrested many violations.

In terms of customs control, in the past year, the Customs control force in the whole sector has chaired and coordinated to detect, arrest, handle: 15,539 violations of customs law (up 11.44% compared with the same period in 2017), with the value of infringing goods estimated at 1,381 billion, an increase of 740 million VND (up 91.24% over the same period in 2017). The Customs authorities have prosecuted 62 cases and have transferred 99 cases to other agencies to prosecute (up by 40.91% and 59.68% respectively over the same period in 2017).

Along with other authorities, customs control forces have uncovered many painful incidents affecting public opinion, such as illegal import of waste, drugs, precursors, wild animal products and consumer goods.

Typically, the verification and discovery of Hong Viet Construction Service and Trading Co, Ltd., using fake papers to illegally import more than 100 thousand tons of scrap from abroad into Vietnam. The value of infringing goods is estimated at over 55 billion VND. The case was investigated by the Anti-Smuggling Investigation Department to prosecute for illegally transporting goods across the border and handed over to the Investigation Police Department (C03) - Ministry of Public Security to continue according to authority.

Sacks containing pineapples on the outside of the container camouflage waste inside. Photo: Thai Binh

In addition to potential dangers to the environment, scrap shipments are also an ideal environment for all types of criminals to hide and transfer prohibited goods. Typically 2 cases:

(1) On 24th July, 2018, at the Port of Cai Mep - Thi Vai, Customs Control Team, Ba Ria - Vung Tau Customs Department presides and coordinates with functional forces to detect 100 cocaine cakes with the amount of about 100 kg concealed in iron containers of scrap of Pomina 2 Steel Joint Stock Company, Phu My I Industrial Zone, Tan Thanh District, Ba Ria - Vung Tau.

(2) In 2 days from 5th to 6th October 2018 at the Customs Branch of Da Nang port border gate, the Customs Branch of Da Nang port border gate presides over and coordinates the Central Anti-Smuggling Control Team (Team 2) - General Department of Customs; Police and Border Guard forces of Da Nang City discovered Thien Truong Su Co, Ltd., had concealed 1803.7 kg of ivory, 6334.2 kg of pangolin scales and 10164 kg of plastic waste in the shipment declared as scrap plastic. Currently, the file has been transferred to the police agency for prosecuting the case.

3. Successfully organizing the National Conference on "Promoting the National Single Window, ASEAN Single Window and trade facilitation"

The National Conference on "Promoting the National Single Window, ASEAN Single Window and trade facilitation" that took place on 24th July, 2018 chaired by Prime Minister Nguyen Xuan Phuc was of special significance, demonstrating the Government's strong determination in promoting the implementation of the National Single Window, ASEAN Single Window and trade facilitation in the coming time. This is an important driving force to continue promoting the reform of the government's administrative procedures substantially towards a modern, transparent, efficient and effective administration; improve the service quality of state agencies for businesses, organizations and people.

Since the implementation of the National Single Window, ASEAN Single Window, this was the first time that the Head of Government chaired the Symposium on this issue with the participation of the representatives of the leadership of many central agencies such as: Central Office, Central Economic Committee, National Assembly Economic Committee, Finance - Budget Committee of the National Assembly, External Committee of the National Assembly, Office of the National Assembly; Leaders of ministries and leaders of key localities in economics and trade; representatives of major international organizations such as the World Bank (WB), Asian Development Bank (ADB), embassies of ASEAN countries, European Union, Japan, Korea, China,...; representatives of business community, and professional associations.

Prime Minister Nguyen Xuan Phuc chaired the national conference "Promoting the National Single Window, ASEAN Single Window and Trade Facilitation" which took place on 24/7/2018. Photo: H. Van

This was also the first time that all relevant agencies, ministries and agencies participated in discussions, contributing ideas and comprehensively assessing the reality of the implementation of the National Single Window and ASEAN Single Window. Results of the implementation of the Resolution 19 of the Government on key tasks and solutions to improve the business environment for improving national competitiveness, Resolution 35/NQ-CP of the Government on supporting the development of enterprises by 2020, the Government's Resolution No. 01/NQ-CP of 2018 on tasks and major solutions to implement the socio-economic development plans and budget estimates for 2018, raising high efficiency of specialized inspection to develop a strategy for developing the National Single Window, ASEAN Single Window, reform of specialized inspection to facilitate trade, contributing to improving the investment environment for doing business in Vietnam, improving national competitiveness and developing healthy and sustainable businesses.

The successful organization of the Conference "Promoting the National Single Window, ASEAN Single Window and Trade Facilitation" has created a major turning point when making the major orientations, goals, solutions with the systematic, synchronous nature of the Government to promote the implementation of the National Single Window, ASEAN Single Window, reform of specialized inspection and trade facilitation in the period 2018-2020.

4. Completing the institution of customs policy, issuing many important breakthrough policies

In addition to administrative reform activities and simplifying administrative procedures, the General Department of Customs advised the Ministry of Finance, and the Government issued a number of legal documents to improve institutions on customs, specifically:

The Ministry of Finance has submitted to the Government for promulgation Decree No. 59/2018/ND-CP amending and supplementing a number of Articles of Decree 08/2015/ND-CP; Decree No. 12/2018/ND-CP dated January 23th, 2018 of the Government amending and supplementing a number of articles of Decree No. 01/2015/ND-CP dated January 2nd, 2015 of the Government, stipulating expenditures detailing the scope of customs operation areas; responsibilities for coordinating in preventing and combating smuggling and illegal cross-border transportation of goods...

The Ministry of Finance has issued a number of circulars guiding the implementation of Decree 59/2018/ND-CP, with related documents: Circular No. 39/2018/TT-BTC dated April 20th, 2018 amending, supplementing and adding some articles in Circular No. 38/2015/TT-BTC dated March 25th, 2015 of the Minister of Finance; Circular No. 38/2018/TT-BTC dated April 20th, 2018 of the Minister of Finance regulating on the determination of origin of import and export goods...

The General Department of Customs organizes dissemination of Decree 59/2018 and implementing circulars to the business community. Photo: Ngoc Linh

The above documents have created a legal basis to continue the administrative procedure reform, creating more favorable conditions for goods import and export activities. In particular, the promulgation of these documents has contributed to strengthening IT application and modernization in customs professional processes; modifying and simplifying administrative procedures, facilitating enterprises in import and export of goods and entry and exit of transport means.

In addition, these documents also aim to ensure clear, specific and transparent regulations and unified implementation of customs procedures for import and export goods, means of transport and transit.

Specifically: Specifying the application of IT in customs procedures for transported goods, customs management and supervision regime. Accordingly, transactions and exchange of information between customs authorities and customs declarants are carried out through the electronic environment contributing to limiting trouble, negativity and harassment that may occur during the process of resolving administrative procedures and cutting costs for businesses; Changing the method of declaration, filing of customs dossiers, specifying documents of dossiers to be submitted, presented, kept, and time for handling administrative procedures to ensure consistency in the implementation of electronic customs procedures; Amending and supplementing a number of customs procedures, inspecting, supervising and managing customs for a number of goods and procedures; Modifying some contents related to methods for determining export value, regulations on export border gate and first entry border gate according to each mode of transport to serve as a basis for determining customs value to remove problems arising in practice, creating an initiative for businesses in determining tax obligations...

5. Promulgating Decision 2799/QD-TCHQ dated September 26th, 2018 promulgating the Regulation on public inspection and handling and disciplining of civil servants, employees and workers in the Customs sector.

Previously, the inspection of public duties and handling of violations against officials, public servants, employees and workers in the Customs sector did not have a unified General Regulation. The inspection of public services and handling of violations against customs officers is based on a number of different legal documents and a number of different regulations, for when the implementation leads to a unified situation in the Industry.

The promulgation of Decision 2799/QD-TCHQ dated September 26th, 2018 promulgating the Regulation on public inspection and handling and disciplining of civil servants, employees and workers in the Customs Branch has inherited previous documents and regulations; synthesized the comments of the units in the whole industry; based on the current legal documents and practical requirements to develop the Regulation on inspection of public duties and handling of violations against civil servants, employees and workers in the Customs industry.

This regulation is the first time that the Customs sector has developed and implemented it (there is no set and applied ministry or sector yet).

The important objectives set by the General Department of Customs in this Regulation are for anti-trouble, harassing, negativity and corruption; improve the spirit and sense of responsibility of customs officers when performing public duties, and transparency in handling violations of the cadres and officials. This regulation also concretizes the provisions of law, ensures convenience for the implementation, enhancement of effectiveness, efficiency, discipline and prevention, and control in the Customs industry.

Customs officers will be more clearly aware of their compliance, professionalism in the performance of their duties and what they cannot do. Regulations of 4 chapters, 41 articles, identify more than 400 violations. Depending on the nature and extent of the consequences of the violation, the corresponding handling of sanctions is attached, from the form of reminding and criticizing to the form of disciplinary action for dismissal. This is the first Regulation of the Customs sector to develop and implement (there is no set and applied ministry or sector yet).

6. Successfully organized Seminar: "Customs - Businesses: Connecting - Sharing - Accompanying"

On June 21st, 2018, the General Department of Customs held a Seminar: "Customs - Businesses: Connecting - Sharing - Accompanying", with the participation of more than 60 representatives from corporations, general companies, large enterprises, organizations representing businesses with regular import and export activities... The seminar showed the determination of the General Department of Customs in implementing the Resolution 19-2018/NQ-CP of the Government on continuing to perform the main tasks and solutions to improve the business environment, improve national competitiveness in 2018 and the following years.

With the desire to support and create favorable conditions for businesses, Customs agencies are particularly interested in information work, communication, law dissemination, training and guidance for businesses; encouraging the business community to cooperate in building the Customs agency to be stronger. Actively establish channels to connect with the business community so that the business community can promptly reflect and comment on the activities of the customs authorities at all levels. Regularly organize business conferences on a thematic basis, thereby attracting the right enterprises for participation.

The dialogues are gradually transformed in the way the organization and content of the dialogue, for becoming a really useful tool in resolving disagreements between the parties. In addition to receiving, supporting and solving problems at the office, the Customs agency has actively and positively set up channels to connect with the business community so that the enterprises can promptly reflect and make customs clearance, as well as a hotline, suggestion box at the facility, and reception department...

The General Department of Customs has successfully organized the Seminar: "Customs - Businesses: Connecting - Sharing - Accompanying". Photo: Quang Hung

At the Seminar "Customs - Business: Connecting - Sharing - Accompanying", the Customs agency received many opinions of enterprises and organizations representing businesses, according to which the opinions were highly appreciated. For the administrative and policy reforms of the Customs sector in the past, with the General Department of Customs holding the Seminar it is a show of determination to listen, share and accompany businesses in solving problems and opinions of the business community in the coming time.

Through the seminar, the General Department of Customs sent a message to the business community about the topic of the seminar, and it is also a declaration of the implementation of the customs partnership with current enterprises in the following years for: "Customs - Businesses: Connecting - Sharing - Accompanying" in the process of customs administrative procedures; in building, implementing and supervising customs law enforcement.

7. The General Department of Customs leads the ranking on IT application index of Finance sector

In the context of a strong industrial revolution 4.0, the General Department of Customs has continued to study and promote the implementation of many IT applications to serve professional operations from the beginning of the year. In particular, typically deploying the automatic customs management system at seaports and airports; strengthening online public service provision; widely deploying the project on electronic tax payment and customs clearance 24/7; upgrading IT systems to meet Decree 59/2018/ND-CP and Circular 39/2018/TT-BTC (such as Ecustoms5 system; Processing and exporting system; Automatic customs management system VASSCM....).

In 2018, the General Department of Customs also strives to implement the National Single Window and ASEAN Single Window; actively negotiating to finalize the Protocol on information exchange connecting with the Eurasian Economic Union (EAEU); unify the technical requirements and prepare to build the system to exchange information of customs declarations and certificates of origin.

Hai Phong Customs officer works with the support of IT. Photo: T. Binh.

It can be said that IT applications have been applied by the General Department of Customs in all professional activities, contributing significantly to the management of the industry.

With continuous efforts, in 2018, the General Department of Customs for the second time in a row is recognized as the leading unit on the ranking of IT application in the financial sector according to the rating report for readiness for IT application in Finance sector in 2018 (ICT Index of Finance sector 2018).

ICT Index Finance sector is implemented by Department of Financial Informatics and Statistics (Ministry of Finance) on the basis of data collection, analysis, evaluation and making reports of assessment results, ranking available levels of readiness for IT application in Finance. The ICT Index of Financial Sector 2018 consists of 3 main component indexes: Technical infrastructure; human resources and IT applications (internal applications and online public services).

8. Deploying the expansion of automatic customs management system VASSCM

Article 41 of the Customs Law 2014 has required port businesses to connect and exchange information with Customs authorities. Besides, in the management of modern customs, the need to be provided with information before ships and goods arrive is very important to apply the risk assessment method in customs management. Therefore, from August 15, 2017, the General Department of Customs started to implement VASSCM automatic customs management system at Hai Phong Customs Department. As of early 2018, VASSCM system has been deployed in 4 Customs Departments (Hai Phong, Hanoi, Ho Chi Minh City, Ba Ria - Vung Tau), 74 warehouses, yards and ports.

In 2018, the General Department of Customs continued to promote the expansion of VASSCM system to the whole country. As of December, 2018, VASSCM system has been deployed at 25/35 Customs Department, at 65 Customs Branches and for 276 enterprises in ports, airport warehouses, bonded warehouses and other warehouses and locations. The implementation of VASSCM system brings many practical benefits to both Customs, warehouse, yard, port and enterprises doing import and export activities such as:

Hai Phong Customs officer works with the support of IT. Photo: T. Binh.

Hai Phong City Customs Department is the place that developed the VASSCM automatic customs management system for the whole Customs sector. Photo: Huy Kham

For enterprises operating in warehouses, yards and ports; to reduce the costs of managing, synthesizing and reporting on goods in and out, and in and out of customs supervision areas; For import-export enterprises, reduce procedures and costs, so that when receiving goods at warehouses, yards and ports, import-export enterprises do not have to present documents to customs offices to check and confirm on the system and paper documents as before. Here, import-export enterprises only work directly with warehouse, yard and port businesses.

For customs authorities: managing the whole process from the time the goods are declared on the electronic manifest information (for imported goods), brought in as well as when leaving the customs supervision and transport to other monitoring sites; Timely grasp developments, information changes on the status quo of packaging goods, location of goods storage, inventory monitoring.

9. Deploying assessment of capacity of professional and civil servants working in 6 main areas of operation: management supervision, import-export tax, anti-smuggling, post-clearance inspection, risk management and handling violations from the General Department to 7 Customs Departments of key provinces and cities in the industry. On 24, November 25th, 2018, the first assessment of civil servant capacity was organized in Quang Ninh Customs Department.

Deploying Government Resolution 19, 36, Directive 3957/CT-TCHQ of General Director of Customs on May 12th, 2016, based on the results of piloting human resource reform activities in Hai Phong Nai province in the period of 2016 - 2017; in 2018, the General Department of Customs has developed a process of assessing the capacity of civil servants who are not holding leadership positions; concentrating resources on developing and evaluating 9 ministries to assess the capacity of the industry with nearly 5.700 case-study questions and exercises at different levels of difficulty.

The construction of a system for assessing the capacity of online civil servants in the form of testing with professional subjects is built on the requirements of knowledge and skills specified in the professional competence frameworks of each position. Job placement is the first system for assessing the capacity of civil servants in public administrations in Vietnam. The purpose of assessing capacity in 2018 is to create a movement for learning, training, and capacity building for civil servants; gradually apply to the arrangement and transfer of civil servants in accordance with capacity and ensuring to meet work requirements.

Hai Phong Customs officer works with the support of IT. Photo: T. Binh.

Quang Ninh Customs Department is the first unit in the Customs industry to organize assessments of civil servant capacity. Photo: Ngoc Linh

On 24th, November 25, 2018, the first official capacity assessment was successfully held at Quang Ninh Customs Department. The evaluation results of civil servant capacity have basically reflected their actual capacity in the units. Thereby, it initially affirms the method, the title of capacity assessment in 2018 to meet practical requirements.

According to the plan, in December 2018 and January 2019, the General Department continued to evaluate the capacity at the Customs Departments: Da Nang, Dong Nai, Binh Duong, Hanoi, Hai Phong and Ho Chi Minh City, and 6 professional Departments of Hai Phong’s General Department. Going forward from 2019, 2020 will continue to evaluate at the remaining customs departments.

10. The Government issued a Resolution on the entry of the ISTANBUL Convention on the temporary administration of goods

The Istanbul Convention of the World Customs Organization for the Temporary Release of Goods is considered one of the most effective tools to facilitate trade with more than 100 member states. Based on the proposal of the Ministry of Finance (the General Department of Customs), the Government issued a Resolution on joining the Istanbul Convention on temporary storage of goods. This event marks the efforts of the Ministry of Finance and the General Department of Customs in researching and advising the Government on joining the Convention and affirming the efforts of the Government of Vietnam in strengthening international integration and implementing international practices to facilitate trade. The accession to the Convention is also a practical activity for the implementation of the Government's administrative procedure reform.

The international convention will directly improve the efficiency of goods clearance, reduces time, cost and work pressure for regulators as well as the business community. Photo: Huy Kham

The application of temporary management under the provisions of the International Convention will directly improve the efficiency of goods clearance, reduce time, cost and work pressure for management agencies as well as the business community, then promoting the realization of the goal of making Vietnam as an attractive destination for investment, trade, culture, sports, art, exhibitions and workshops. In addition, the accession to the Convention also provides an opportunity for Vietnam to host major international cultural, sports and art events, thereby contributing to improving the image of the country and its people.