10 outstanding events of Customs sector in 2020

1. To strengthen effective implementation of customs control to prevent and repel smuggling, trade fraud and counterfeit goods, in particular, successfully destroy many major cases involving illegal cross-border transportation of drugs.

With determination to be proactive in the prevention of smuggling, trade fraud and counterfeit goods, the General Department of Customs has closely followed the directions of the Government, the National Steering Committee 389 and the Government Steering Committee 138, the Ministry of Finance to drastically and effectively carry out tasks from advisory work to direct fight, resolutely fighting crimes of smuggling and illegal cross-border transportation of goods.

As a result, in the first 11 months of 2020, the Customs sector handled 14,100 violation cases of customs law with infringing goods estimated at VND 4,231 billion. The Customs agency took 37 cases to the court and transferred to another agency for prosecution130 cases, and collected VND 463,191 billion.

Notably, the fight against the largest cigarette smuggling case via sea routes, seized about 8,549 bales, equivalent to 4,274,500 cigarette packs of all kinds, including brands 555, ESSI, YUXI and DOUBLE. Per inspection results, smugglers successfully transferred about 2,000 bales, equivalent to 1,000,000 packs, to five high-speed boats, the remaining volume of cigarettes on board were about 6,549 bales, equivalent to 3,274,500 packs.

Foreign cigarettes seized by the Customs Marine Enforcement Fleet 1

Customs focused on the fight against the smuggling of pharmaceutical products. Specifically, on June 22, the Anti-Smuggling and Investigation Department under the General Department of Customs worked with Da Nang Customs Department, the Drug Testing Agency under the Ministry of Health and other authorities to inspect five containers and discovered goods that were not apples, radishes and carrots as declared but also mostly herbs, weighing about 103 tonnes.

In 2020, the Customs sector played the role as one of key forces in the fight against the cross-border drug trafficking and whole sector drastically carried out the task and achieved many positive results. As of November, the Customs sector presided over and coordinated with other forces to destroy many major cross-border drug trafficking cases, seizing 205 cases and arresting 184 suspects; detained more than 82 kg and 219 bricks of heroin; 16.02 kg of marijuana; 15.7 kg of opium; 23.01 kg and 412,464 tablets of synthetic drug and 646.6 kg of meth. The destruction of many cases of cross-border drug trafficking cases affirmed the intelligence and accuracy in the work of solving the case, the smooth, synchronous, close and effective coordination among forces, contributing to cutting one of the major drug lines and ensuring national security and community safety.

2. To take efforts to overcome difficulties, strive to achieve the highest results of State budget collection targets and plans set out amid the Covid-19 pandemic.

In 2020, the General Department of Customs was assigned an estimate of VND 338,000 billion by the National Assembly and the Ministry of Finance. To fulfil the task of State budget collection in 2020, the General Department of Customs issued a plan to implement Resolution No. 01 / NQ-CP dated January 1, 2020, Resolution No. 02 / NQ-CP dated January 1, 2020 and Directive No. 1040 / CT-TCHQ on the implementation of measures to facilitate trade, improve State management efficiency, combat revenue loss in performing the State budget revenue task in 2020 and assigned State budget revenue targets.

However, facing the pandemic, as the Politburo's Conclusion 77-KL / TW assessed: The pandemic has holistic and profound impacts on all countries around the world and is still evolving complicatedly. The global economy slipped into serious recession while the Vietnamese economy, with a high degree of openness and extensive international integration, has been strongly affected due to the disruption of value chains and trade flow.

The pandemic has directly affected sectors like import and export, aviation, tourism, accommodation service, catering services, health, education, and jobs. Many enterprises have gone bankrupt, dissolved, suspended or reduced operations.

Customs sector strives for the highest State budget revenue. Photo: Q.H

Following the directions of the Government, the Prime Minister and the Ministry of Finance, the Customs sector has reviewed and implemented many solutions to achieve the highest level of set targets and plans, expanding administrative procedure reform; strengthening customs control; implementing major anti-smuggling projects related to key commodities; accelerating information collection and analysis and modern technology application for inspection and supervision; tightening discipline in performing customs inspection and control tasks and suspending inspection and assessment of the law compliance of customs declarants in 2020.

For specialised inspection, post-customs clearance inspection according to signs of violation and inspection and examination focusing on speeding up information collection and analysis as a premise to promote post-customs clearance inspection after the Covid-19 pandemic, the customs sector has reviewed, assessed and analysed risks, signs of violation for enterprises that have not yet been inspected; analysed data, identified items with high risks of fraud, counterfeiting of origin, illegal transhipment; and focused on reviewing and grasping tax debt situation; classifying debt groups, debt status of the enterprise; reviewed and collected documents, completed documents for cases eligible for debt freezing and write-off; reviewed and check goods names, codes, tax rates at the customs clearance stage, the post-customs clearance stage to handle cases of incorrect declaration of goods codes and names or unclear and incomplete declaration of goods names to enjoy low tax rates or special preferential tax rates, focusing on inspecting the items on the list of export and import goods with risks of classification and application of tax rates; checking on the GTT02 system and related information technology systems to direct municipal and provincial customs departments to conduct value inspection for goods and enterprises at high possibility of value risk to avoid omissions of consignments with declaration of undervalue unreasonable value without consultation and timely handling, focusing on thematic guidance on groups of export goods and commodities with high tax rates.

With the efforts of the sector, it is expected that by the end of December 31, 2020, the State budget revenue will reach about VND 315,000 billion, or 93.2% of the estimate (VND 338,000 billion), and reach 105% of the figure reported to the National Assembly at the 14th National Assembly 10th meeting (VND 300,000 billion).

3. To successfully organise the XI Party Congress of the General Department of Customs for the 2020-2025 term.

The XI Party Congress of the General Department of Customs for the 2020-2025 term was held at the headquarters of the General Department of Customs from July 15 to 16, 2020. This is an important political event of the Party Committee, demonstrating the strength of solidarity, intelligence, activeness, creativity and spirit of emulation to perform political tasks of the Party Committee of the General Department of Customs, contributing to the achievements of the finance sector and the country's renovation.

The customs sector implemented Politburo Directive No. 35-CT / TW dated May 30, 2019 on the organisation of Party congresses at all levels in preparation for the XIII National Party Congress and guiding documents on a number of contents of Party congresses at all levels in the Party Committee of the Ministry of Finance in preparation for the XIII National Party Congress for all Party members and developed plans and prepared content and human resources for the congress.

The Party Committee of the General Department of Customs for the 2020-2025 term at the congress. Photo: Q.Hung

4. To successfully organise the 6th Typical Advanced Delegate Meeting on the occasion of the 75th anniversary of the sector’s establishment (September 10, 1945 - September 10, 2020)

On the morning of August 20, the General Department of Vietnam Customs organised the online 6th typical advanced delegate meeting. The meeting was honored to welcome Dinh Tien Dung - Secretary of the Civil Affairs Committee, Minister of Finance, representatives of the Central Committee on Emulation and Rewards, representatives of units under the Ministry of Finance and more than 300 delegates at 36 customs departments representing more than 11,000 civil servants and employees attached to the General Department of Customs.

To comprehensively assess the achievements, the General Department of Customs pointed out the shortcomings, limitations as well as difficulties and problems in emulation and commendation in 2016-2020, proposing tasks for 2021-2025. At the same time, it was an opportunity for the General Department of Customs to honour, study and multiply typical and excellent collectives and individuals in the patriotic emulation movement selected from units in the sector.

Authorised by the State President, Minister Dinh Tien Dung awarded the First Class Labor Medal to the leaders of the General Department of Customs at the meeting (August, 2020).

5. To officially launch the National Single Window and Automated System for Customs Control and Supervision at Noi Bai Airport.

On September 28, the Ministry of Finance issued a decision to officially launch the National Single Window System for Incoming Aircrafts and Automated System for Customs Control and Supervision for imported goods at Noi Bai International Border Gate Customs Branch.

Leaders of the Ministry of Finance, the General Department of Customs and other related units press the button to launch the system. Photo: N.Linh

6. The General Department of Customs expands the topic of fight against fraud, origin counterfeiting of Vietnamese goods to export to the US, EU, India to prevent acts of fraud, ensuring interests of enterprises.

Amid deep integration into the world economy, Vietnam has signed many free trade agreements (FTAs) with countries around the world. An arising problem in the recent time has been taking advantage of tariff preferences for Vietnamese goods to enjoy the preferential treatment for exported goods. To solve the urgent problem likely to affect the economic relations between the US and Vietnam and harm the competitiveness of domestic enterprises, Vietnamese brands as well as Vietnam’s import and export activities, the General Department of Customs was assigned by the Ministry of Finance to be a pioneer in implementing the scheme on fighting fraud and origin counterfeiting.

7. The General Department of Customs ranks 1st on the PAR among General Departments and the equivalent level under the Ministry of Finance.

On September 10, the Ministry of Finance issued Decision No. 1302 / QD-BTC announcing the public administration reform index (PAR index) for units under and attached to the ministry. Accordingly, the General Department of Customs ranked first of five units on PAR index including General Department of Customs, General Department of Taxation, General Department of State Reserve, State Securities Commission and State Treasury. This is the fourth consecutive year since 2017 the General Department of Customs has led the PAR Index. Specifically, this year the General Department of Customs achieved 97 of 100 points, 0.5 points higher than the previous year.

Strengthening the contingent of civil servants in charge of administrative reform. Photo: Thu Trang

8. The Customs sector contributes to the country in controlling the pandemic spreading in the community, facilitating import and export activities and making efforts to overcome difficulties and striving to achieve the highest level of goals and tasks set out amid the Covid-19 pandemic.

In 2020, when the Covid-19 pandemic was complex, the Customs sector closely monitored the pandemic situation, follow the directions of the Government and the Ministry of Finance to implement many solutions and measures to control the pandemic, facilitate import and export activities, protecting people's health, ensuring safety for customs officers while ensuring fight against smuggling, trade fraud and fulfilling assigned tasks.

Operations at Hon Gai port border Customs Branch, the unit with the most revenue at Quang Ninh Customs Department. Photo: Q.H

9. To approve the Customs Mutual Assistance Agreement between the Government of the Socialist Republic of Vietnam and the Government of the United States of America.

The Customs Mutual Assistance Agreement between the two governments signed in December 2019 and approved by the Government, officially took effect from May 20.

Vietnamese Deputy Finance Minister Vu Thi Mai and US Deputy Chief of Mission in Vietnam Caryn McClelland signed the Customs Mutual Assistance Agreement between the two Governments in the presence of Vietnamese Deputy Prime Minister Vuong Dinh Hue. Photo: H. Nu

10. To develop and issue a plan for the implementation of a Free Trade Agreement between the Socialist Republic of Vietnam and the European Union (EVFTA).

The EVFTA agreement is an agreement that was started and ended the negotiation in the context of the increasingly well-developed bilateral relationship between Vietnam and the EU, especially in the economic - trade field. The EU is one of the leading trade partners of Vietnam with two-way turnover in 2019 reaching US$56.45 billion, of which exports reached US$41.5 billion and imports US$14.9 billion. The EVFTA is a comprehensive and high-quality agreement that balances interests for both Vietnam and the EU.

The agreement comprises two documents governing cooperation in the customs sector: Chapter 4 on Customs and Trade Facilitation and Protocol 2 on Cooperation and Mutual Administrative Assistance in the customs matters.

With the official effect of the agreement, the General Department of Customs developed an implementation plan on the basis of reviewing customs commitments and responsibility of the General the Customs Department in the running of the agreement, thereby assigning tasks for customs units according to working regulations of the General Department of Customs

then assigns the responsibility to assume prime responsibility and coordinate the implementation of each commitment for the units according to the functions, tasks and working regulations of the General Department of Customs.

Journalist Vu Thi Anh Hong, Editor-in-Chief of Customs Newspaper, coordinated the first session of the seminar themed: "Opportunities and challenges in the running of EVFTA".