Decree on customs procedures revised to build a smart customs model

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Operations at Na Meo international border gate Customs Branch. Photo: Phong Nhan

Legal policies improved towards transparency

The revised Decree will inherit the contents of Decree 59/2018 and will add revised contents of the original decree as Decree 08/2015/ND-CP.

According to the General Department of Customs, the revision of Decree 08/2015 in this period is necessary because Vietnam has signed a number of new-generation Free Trade Agreements (such as EVFTA, CPTPP), which have affirmed its extensive and comprehensive commitments, and will create conditions, motivation and opportunities to change and improve legal policies towards more transparency and more favorable conditions and compliance with international practices.

New generation FTAs ​​require Vietnam to further consolidate the state apparatus, improve institutions, and build a legal basis, in the direction of accelerating administrative reform, raising responsibility, and discipline of cadres and civil servants; and comply with agreements and commitments, thereby supporting the process of renewing the growth model and restructuring the economy of Vietnam.

In addition, to improve the cross-border trade transaction index and the business environment index to improve national competitiveness, solutions are required to reduce customs clearance time, facilitate businesses, in which comprehensive reform of specialized inspection procedures is an effective solution.

On January 26, 2021, the Ministry of Finance issued Decision No. 97 approving the policy of hiring information technology services to implement digital customs and towards building a smart customs model to make Vietnam Customs a modern customs organization that is in line with international trends and standards and applies technological achievements of Industry 4.0; catches up with developed countries such as EU, USA, Japan, China; meets the requirements of smart administration, business management, import and export goods, transit, means of transport on exit, entry and in transit comprehensively; and is able to integrate, connect and share information with ministries, agencies and businesses through the National Single Window and is ready to exchange customs data with countries in the region and the world.

The smart customs model will have a high degree of automation, apply new and modern scientific and technological achievements on a digital and paperless platform that ensures transparency, fairness, effectiveness and efficiency and forecast and adapt to developments in international trade and management requirements of customs authorities and comply with international standards and serve people and businesses.

Meanwhile, the implementation of Decree 08/2015/ND-CP and Decree 59/2018/ND-CP has revealed problems and regulations that have not matched the current management and overlap with new regulations such as: the regulation on customs declaration and submission, regulation on risk management in customs operations; post-clearance audit, authorized economic operator program, customs valuation and regulations related to the National Single Window and specialized inspection.

Create a legal basis for building a smart customs model

From the practical requirements, it is necessary to revise Decree 08/2015/ND-CP to unify the contents of the prevailing legal document system.

The revised decree also creates a legal basis for building a smart customs model, a digital customs associated with the implementation of the Project on redesigning the Customs IT system and the strategy framework of Customs development on the basis of centralized management, application of new technology achievements, compliance with international standards and meeting requirements of smart administration, trade facilitation, integration, connectivity, sharing and exchanging of customs data with stakeholders.

According to the General Department of Customs, the Decree also simplifies administrative procedures, ensures transparency in the implementation of administrative procedures, and creates favorable conditions for businesses in import and export activities, entry and exit of means of transport.

At the same time, it is consistent with the international commitments that Vietnam is acceded to such as: the contract to host the F1 race between Formula One World Championship Limited and the People's Committee of Hanoi; WCO’s Framework of standards to secure and facilitate (SAFE); and creates a foundation for the signing of Mutual Recognition Agreements on Authorized Economic Operators with countries and territories.

Moreover, the revised Decree also improves the legal basis for customs information, customs value, competence, and duty performance of Customs authorities in post-customs clearance inspection and anti-smuggling and improve the legal compliance of customs declarants.

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The regulations proposed to be amended are customs procedures; specialized inspection, national single window; customs value; classification of goods; release of goods, customs clearance of goods; authorized economic operator; the management of export processing and production; goods in transit; temporary imports for re-exports, temporary exports for re-imports; luggage of people on exit or entry; customs procedures for goods supplied on exiting aircraft and ships; customs procedures for means of transport on entry and exit by air or by sea; means of transport for entry and exit by sea; on the management of means of transport by road, inland waterway and other means of transport; the management of bonded warehouses; post-customs clearance inspection; and anti-smuggling.