Customs IT application in industrial revolution 4.0

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Hai Phong Customs Customs officers are operating with the support of IT. Photo: T.Bình.

Being considered as a "leading agency" of NSW, ASW and trade facilitation ministries, the 4.0 revolution in Customs has been taking place strongly.

VNACCS / VCIS platform

As the leading agency in international integration, the contents of the 4.0 revolution have spread vigorously in professional operations of Vietnam Customs. This originated from the breakthrough thinking of the leaders of the Government, the Ministry of Finance, and especially the leadership and cadres of the Customs, to build Vietnam Customs’ professionalism, modernization and efficiency, based on deep and wide IT application in all professional areas.

The Customs reform, development and modernization on the basis of IT application to solve the best, most effective in the context of Vietnam's deep international integration, especially for the increase in imports and exports year by year. At the same time, the trend of integration also poses great difficulties and challenges on Customs supervision, anti-smuggling and anti-trade fraud

The development objectives based on IT application of Vietnam Customs are in line with the trend of industrial revolution 4.0, especially the integration story. IT systems have been developed and applied by the Customs for many years to serve professional operations in the spirit of Customs reform and modernization. However, the biggest breakthrough and typical point is implementation of the Automated Clearance Systems (VNACCS / VCIS) funded by the Japanese Government on 1st of April 2014.

It can be said that VNACCS / VCIS have brought many benefits to the business community, especially facilitating the declaration and clearance of goods, thereby reducing time and costs for businesses. For Customs, VNACCS / VCIS have helped Vietnam Customs reach the objective of developing a centralized IT system. Because, previously, the IT system was focused at the local Customs departments, the unified management and application of IT in the whole industry met difficulties.

Therefore, the successful implementation of VNACCS / VCIS is the basis for the Customs to carry out modernization programs in accordance with development objectives set by the Government and the Ministry of Finance

Drastic reform of Tax and Customs procedures

"Clear borders" thanks to NSW, ASW and VASSCM

Since the foundation of the data center through the VNACCS / VCIS system was built, the story of technology integration to reform and simplify administrative procedures, reduce clearance time and improve effectiveness and efficiency of state management on Customs, continues to develop ceaselessly.

They are the use of bar codes in Customs supervision; the coordination in tax collection with commercial banks via electronic method 24/7; the implementation of e-Manifest ... and most recently is application of the Automated Customs Management System. This shows that the objective of further promoting IT application and system integration together in the spirit of the industrial revolution 4.0 in the Customs is being implemented drastically and effectively.

For example, the automated Customs management system at seaports (officially implemented in Hai Phong from 1^st December 2017, called VASSCM). This is considered as the biggest breakthrough in IT application of the Customs after VNACCS / VCIS. With the automated Customs management system, the Customs automatically connects with NSW to effectively exploit e-Manifest; VNACCS / VCIS, E-Customs (V5) for inspection and supervision.

For port operators, the system helps them grasp full and timely information on the status of Customs clearance (from the customs authority) for each shipment, each container, to minimize the risk in implementation of delivery and receipt procedures compared to the implementation of paper documents; implement the management, statistics and document archive and goods delivery in a fast, accurate, scientific and transparent manner and enhance prestige, improve the ability to receive, exploit goods and promote business efficiency and competitiveness.

As mentioned above, regarding integration, it is impossible to ignore the leading role of the Customs in the implementation of the NSW, the ASEAN Single Window (ASW). As the Standing Office of the National Steering Committee, the General Department of Customs has worked closely with other relevant ministries and sectors to make Vietnam one of the first four countries connecting to ASW together with Indonesia, Malaysia and Thailand in September 2015. In particular, the NSW Portal has linked 11 ministries and key sectors on import-export management and implemented nearly 50 important administrative procedures (as of the end of April, 2018, excluding procedures of the Ministry Finance). Therefore, the procedures of businesses and the management of the ministries and sectors are more effective and convenient.

The implementation of the ASW has helped to "clear the borders" in geographical aspect among countries, while the implementation of NSW has helped step by step to remove the conception of “monarch” in the management of each ministry and sector for the general objective and policy, which is building, facilitating and accompanying Government for the development of people and businesses.

“Non-paper” Customs

In the coming years, the important and specific objective set by the Government and the Ministry of Finance for the Customs, is to further promote the IT application in the customs process towards the electronic and non-paper Customs environment papers, "everywhere - every time - every means". At the same time, accelerating the equipment and raising the efficiency of the use of modern technological equipment in the inspection and supervision in key areas.

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To be able to achieve the above objectives, the applications, connections and integration of IT contents within the context of the industrial revolution 4.0 continue to be the indispensable trend in the Customs operations. They are further promoting online public services at the highest level; expanding connectivity and implementation of NSW with all procedures of related ministries and sectors; fully joining the ASW, and aiming to connect and exchange information with the Customs of some countries in the world and the World Customs Organization (WCO).