Customs apply risk management comprehensively

Compliance assessment have been included in the channel classification in customs clearance and post-clearance audit. In the photo: Professional activities at the Mong Cai Customs Branch, Quang Ninh Customs Department. Photo: Quang Hùng

Reduce the number of shipments subjected to inspection

Through statistics of the General Department of Vietnam Customs, the results of the channel classification rate under the targets of the Customs Development Strategy until 2020 have exceeded the target.

Specifically, in 2011, among a total of more than 4.6 million customs declarations, the number of red channel declarations hit 12.62%. By 2015, the number of declarations increased to more than 8.3 million and red channel declarations accounted for 7.55%, which was a decrease of 5.07% compared to 2011, exceeding the target set by the Customs sector in the Customs development strategy until 2020.

In the following years, the proportion of red channel declarations continued to improve, from that, the number of shipments subject to physical inspections when implementing customs procedures fell significantly.

Talking to Customs News, representatives of Risk Management Department (General Department of Vietnam Customs) said the channel classification for deciding to conduct inspection while implementing customs procedures for import and export goods has made rapid progress and achieved remarkable results, forming an independent and key working field, making an important contribution to the success of customs reform and modernisation.

Up to now, basically, the legal corridor and business process system have been formed firmly, satisfying the automated classification channel for deciding to conduct inspections based on the application of the set of criteria and professional customs information system. In 2019, the Ministry of Finance issued Circular 81/2019/TT-BTC stipulating on risk management in customs operations in accordance with the requirements of reform, modernisation, facilitation for import-export enterprises and control law compliance in management of import and export activities as well immigration.

Besides that, risk management measures and techniques are implemented synchronously and consistently, ensuring comprehensive control of risks in customs operations, importantly support for the channel classification such as promulgating risk control plan, information collection plan, risk control topics, building risk profile and list of risky goods. The channel classification has always complied with the provisions of law, creating favourable conditions for enterprises, at the same time, actively controlling the risk of smuggling, tax evasion and trade fraud amid the flow of import and export goods increasing rapidly.

rate of red channel declaration

Creating motivation for businesses to comply with the law

According to Director of the Business Environment and Competitiveness Department, Central Institute of Economic Management (CIEM), Ministry of Planning and Investment Nguyen Minh Thao, the Customs sector was the first sector to apply a modern management method based on risk management and compliance management in import and export activities.

“It could be said the reform of the Customs sector would create motivation, create opportunities, create a good precedent for ministries and sectors to adjust policies, apply measures to implement risk management and manage compliance for management fields. With management measures of the Customs sector being implemented, especially the more transparent groups of criteria and information, enterprises would be able to better access information. It would create confidence and motivate them to comply with the law well,” Thao said.

Thao also said that when participating in import-export activities, firms were affected by the regulations of specialised management agencies. If the agencies did not apply risk management, intangibly, it would make the reforms and changes of the Customs authority became only a very small step. If risk management was not applied to specialised management, all shipments subjected to specialised inspection would be classified in yellow channel or red channel.