Conduct survey on cross border trade transactions to continue facilitating cargo clearance

Customs authorities and relevant ministries and sectors have proactively reformed administrative procedures.

Too many shortcomings

Through the assessments and reforms of Vietnam's Cross-Border Trade Transactions Index, which has been recognized by the World Bank through the implementation of the customs management system (DB2017) and the customs clearance system (DB2018), there are no reforms related to specialized inspection and logistics recorded.

Every year, the Ministry of Finance actively discusses and works with the World Bank, timely updating the reform activities of the Customs authorities as well as specialized inspection authorities such as: strengthening the application of risk management in customs inspection; deploy electronic tax payment and electronic payment and customs clearance 24/7 portal; implementation of the National Single Window and the ASEAN Single Window; deploying the customs management system (VASSCM); reforms on institutions, policies, specialized inspection procedures of ministries and sectors under Decision 2026/QD-TTg and Decision 1254/QD-TTg of the Prime Minister. However, these reforms have not been recognized by the World Bank.

In fact, Customs authorities and relevant ministries and sectors have proactively reformed under the directives of the Government in order to facilitate to import-export activities. However, according to the enterprises, some obstacles still exist in the process of implementing the procedures.

Specifically, in terms of customs procedures, the provision is about not allowing conducting of household inspection export goods so it has not facilitated enterprises importing raw materials for processing and export production. In some customs branches, enterprises still had to go to the customs office to submit dossiers and carry out cargo clearance procedures; the inspection and checking of dossiers in some units was still slow, affecting the clearance time. On the other hand, the determination of code of type for goods of export-processing enterprises was not clear and still problematic; some enterprises still faced difficulties in determining HS codes and value of import and export goods.

Regarding specialized inspection procedures, there are still shortcomings and limitations in the implementation of legal documents on specialized inspection. For example, in the implementation of Decree No. 74/2018/ND-CP of the Government dated May 15, 2018, a number of ministries have issued documents which were appropriate with the provisions of this Decree. Accordingly, it has not clearly specified whether importers must submit to the customs authorities a certificate of the State quality inspection registration in order to clear goods subject to conduct post-clearance quality inspection or not. It is stipulated that the exemption and reduction of quality inspection of goods in group 2 imported within two years, but it required to have certification of inspection exemption by the inspection agency.

There are still overlaps in the specialized management of ministries. Goods have the same type, but dividing management responsibilities for many ministries according to their segments and use purposes. Besides that, many commodity groups subject to specialized inspection under the management of ministries do not have standards and technical regulations yet.

Continuing to conduct survey

According to Kim Long Bien, Deputy Director of Permanent Standing Committee of the Customs Reform and Modernization Board (General Department of Vietnam Customs), the Business Environment Report has been carried out annually by the World Bank from 2001 to the present for 190 countries and 11 economic sectors. In particular, the Cross Border Trade Transaction Index is one of 12 sets published by the Business Environment report and it is used to measure the time and costs for exporting and importing goods across borders in order to assess the operation of the Customs authorities and related units (State management agencies, port and warehouse business units, transportation units) for import and export activities.

Also, according to Kim Long Bien, the survey on the Cross Border Trade Transaction for Business Environment Report of 2021 (DB2021) assessed policies and procedures related to import and export of goods in the period from May 2, 2019 to May 5, 2020. In terms of survey method, the World Bank conducted the survey by sending questionnaires to the target people/surveyors according to the selected list for each country via email. At the same time, the expert of World Bank working on the Business Environment Report will work directly with a number of survey participants to update additional information related to the survey.

The Cross Border Trade Transaction questionnaire consists of 4 parts: update reforms; researching export activities, researching import activities and practical study. Specifically, researching import activities includes questions about the time and costs of procedures in the areas of: Customs, state authorities, handling goods at ports, preparing documents and inland transport. Practical study including questions about the practice of applying risk management in the implementation of customs clearance in Vietnam.