Customs brokers need to be enjoyed remarkable preferential policies

	Vietnam develops logistics services for exports
	Logistics sector set to contribute 8%-10% to GDP by 2025
	Enhance the competitive capacity and development of logistics

Mr. Dang Vu Thanh -Vice President of Vietnam Logistics Business Association (VLA)

In your opinion, currently, is Customs broker’s operation enough condition to develop or not?

According to information collected by VLA, although the quantity of Customs broker has significantly increased, the quantity of declaration which is carried out by Customs brokers has only accounted for 10%. Goods owners usually do not pay attention to sign contracts with Customs brokers. Meanwhile, this rate of the developed countries such as South Korea and Japan has accounted for 90-95%.

So what is the situation and what will we do? Currently, the condition to become a Customs broker is quite favorable and easy. We only need to have the business registration certificate, staff, IT infrastructure meeting requirements for e-customs declaration. The staff of Customs broker only has technology economics college degree and certificate and staff code of Customs broker. Therefore, this is the reason why the number of Customs broker has increased in the recent times.

Goods owners in developed countries mainly hire Customs brokers to carry out Customs procedures. In your opinion, why do Vietnam‘s businesses still ignore with the hiring of Customs brokers to carry out Customs procedure?

As I mentioned above, the easy condition to become a Customs broker is the reason the number of Customs broker has significantly increased in the recent times. However, in the other aspect, when the conditions are quite easy leading to uneven quality and difficult to control.

Besides, the incentive policies for Customs brokers are quite simple and not have remarkable incentive policies for Customs brokers. As per regulations, when becoming a Customs broker, the business is provided technical assistance in networking with Customs agencies; supported in Customs procedures and tax procedures, updated new regulations; and trained on Customs law. These regulations almost do not have great effects on Customs brokers because they are not different from businesses which are not Customs brokers.

According to the feedback of members of the associations, these policies do not really provide preference in processes and procedures compared to import and export businesses and businesses which are not Customs brokers. Besides, policies on training human resource and mechanism on expanding service scope are not clear. In policy aspect, I think that if a Customs broker implements in line with the contract when signing the declaration, the responsibility will be greater. However, there is no difference between Customs broker and businesses which are not Customs brokers. Hence, if simply understanding, the import and export businesses will carry out under the simple and cheap method. This partly explains this situation.

Customs officers at Nghe An Customs Branch inspect imported goods. Photo: H.N

In your opinion, what is the solution to develop Customs broker's operation?

In my opinion, we need have clearer policies on image, operation, training, and mechanism for information exchange with Customs brokers. Accordingly, it is necessary to standardize the training for staffs of Customs brokers and consider the compulsory requirement for the responsibility of Customs broker for Customs declaration.

The Customs also needs to consider re-establishment of the particular gate to carry out Customs procedures of Customs Brokers; Collaborate in broadcasting and propagandizing the role of Customs brokers to goods owners, importers, and exporters, and etc. At the same time, needs to assess annual commendation and reward. The State management agencies need to promote National Single Window mechanism and connect information among agencies such as Bank, Treasury, Tax, and specialized management agencies.

Establishing criteria for assessment of Customs brokers and applying these criteria to manage Customs brokers under risk management rules. If Customs brokers well meet criteria the rate of channel classification will be different from bad businesses. In addition, Customs brokers need to participate in post-clearance audit and have responsibility for this.

Developing logistics service in Vietnam Vietnam’s logistics services - freight forwarding, transportation, and inventory services - began to develop in the 1990s. ...

Especially, incentive policies applying for Customs brokers need to be amended soon and have a roadmap to reduce the number of 20,000 declarations which are not implemented by Customs brokers and this is a huge number. It is difficult for Customs brokers to meet. Therefore, the Customs needs to consider regulations on incentive conditions for Customs brokers and declarations carried out by Customs brokers. Besides, setting up working groups on Customs broker and have a mechanism for quick removal obstacles for Customs brokers.

With these solutions, VLA expects to reach the target that 50% of Customs clearance carried out by Customs brokers by 2020 and over 90% of Customs clearance carried out by Customs brokers by 2025.

Thank you, Sir!