Determined to build a modern Vietnam Customs on par with developed countries

Director General of Vietnam Customs Nguyễn Văn Cẩn

To clear the flow of import and export goods during a pandemic

in 2020, the Customs sector recorded many achievements in all fields, could the General Director evaluate the outstanding results of the whole industry in the past year?

2020 was a year of many difficulties and challenges because of complex developments in the region and the world such as strategic competition and trade between a number of major economies is increasing; Vietnam continues to participate in many new-generation free trade agreements (such as EVFTA and RCEP) with higher requirements and must fully comply with international commitments, including in terms of tariffs, market opening and intellectual property.

A particular problem was the outbreak and negative impacts of the Covid-19 pandemic on all socio-economic aspects in the country and the world, including the Customs sector.

However, with close and timely direction of the Government, the Prime Minister, the leaders of the Ministry of Finance; efforts and determination of civil servants (officials and employees), public servants and employees of the entire industry and effective coordination of ministries, branches, localities, the business community, in general the working fields of Customs sector in 2020 achieved many outstanding results.

The first is institutional building and implementation of projects. The submitted projects to the Government and the Ministry of Finance completed according to the plan and achieved quality. Administrative procedure reform continues to be implemented in a wide range. Along with that the application of modern customs management methods, advanced facilities and equipment is used to both facilitate trade and improve the efficiency of state management on customs.

The second is to perform the task of State budget collection. Although the National Assembly did not adjust the national budget revenue estimates, the Ministry of Finance reported to the Government for the Government to report and approve by the National Assembly the Customs revenue milestone in 2020 to hit a minimum of VND 300,000 billion.

Despite facing many difficulties, with favourable solutions and measures to combat loss of revenue, by the end of 2020, the industry has reached more thanVND 317,000 billion, exceeding VND 17,000 billion compared to the figure reported to the National Assembly.

The third is to fight smuggling, trade fraud, and counterfeiting and origin fraud. By 2020, through plans, projects, topics of struggle, the sector has discovered and solved many large-scale cases in all areas and fields. In which, there are drug cases with large numbers discovered by the Customs force.

In addition, the organisation of staff, building forces, streamlining the apparatus, training and improving the quality of civil servants continued to achieve many remarkable results.

Leaders of the Ministry of Finance, the General Department of Customs and related units clicked a button to open the National Single Window and Automatic Customs Management and Monitoring System at Noi Bai International Airport on 29 / 9/2020. Photo: Ngọc Linh

In 2020, despite facing many difficulties from the Covid-19 pandemic, Vietnam is still one of the few countries achieving impressive economic growth, including a bright spot in terms of imports and exports. The contribution to the increased results of import and export activities cannot fail to mention the important role of the Customs sector. Could you more clearly analyse the role of the sector contributing to this important economic activity?

Over the years, the Customs sector has determined that administrative procedure reform, customs modernisation, and trade facilitation are key tasks. In 2020, that achievement will continue to be recognised when the General Department of Customs for the 4th time in a row (from 2017) ranked first on the PAR Index and Evaluation Index in General Department equivalent of the Ministry of Finance.

Achievements of administrative reform and customs modernisation are not only in titles, but also clearly demonstrated in the practice of trade facilitation and reduction of customs clearance time. The clear evidence is that in 2020 when the Covid-19 pandemic breaks out in the country and countries around the world, there will be times of social distancing, however, the Customs sector still ensures the "dual" goalof effective anti-pandemic and trade facilitation, ensuring the State management of customs.

The whole industry focuses on shortening clearance time and goods clearance through accelerating the application of information technology. Therefore, to minimise direct contact between customs officials and customs officers and ensure smooth clearance of goods.

In addition, leaders of the General Department of Customs instructed the units to promptly grasp and solve arising problems, offer solutions and measures to ensure customs clearance and fast release of goods.

The General Department of Customs has issued the action plan to promote administrative reform, support firms in import and export activities of goods during and after the Covid-19 pandemic to be deployed in the whole industry.

Thanks to the positive effects from customs reform and modernisation, the flow of import and export goods of Vietnam is still going smoothly and achieved a new record with turnover of more than USD540 billion.

In addition to internal reform and modernisation, as a Standing Body of the Commission 1899 (National Steering Committee on ASEAN-ASW Single Window, National Single Window-NSW and Facilitation the General Department of Customs continues to work with ministries and agencies to connect more new procedures to NSW and complete ASW connections with all ASEAN members.

On the other hand, to continue reforming and simplifying administrative procedures, reducing the time for customs clearance for import and export goods, the General Department of Customs has submitted to the Ministry of Finance and the Government for approval the scheme for the reform quality inspection and food safety inspection of imported goods; submitting to the Ministry of Finance for approval the policy of implementing the project on redesign of the overall information technology system of the Customs sector.

The results in 2020 have important implications for completing the Customs Development Strategy up to 2020 according to Decision 448 / QD-TTg in 2011 of the Prime Minister. Are you satisfied with the results achieved in the implementation of the strategy?

2020 was the year we completed the Customs Development Strategy up to 2020 to enter a new and higher stage of development.

Over 10 years of implementation, in general, the whole sector successfully completed the goals and tasks set in the strategy, including many early goals. Some outstanding and breakthrough achievements such as:

Firstly, the customs modernisation reform has met the requirements of modern customs management, creating a foundation for Vietnam Customs to fulfill the tasks assigned by the Party and the State, keeping up with the development for international economic integration is increasingly extensive, contributing to promoting the economic development of the country.

Secondly, the State Management Institutional System of Customs has created a legal corridor for the comprehensive renovation of State management activities on customs, applying modern customs management methods, promoting the improvement of administrative procedures, fully implementing international commitments, fulfilling the goals of the reform and development of Customs modernisation.

Third, fundamentally change the method for implementing customs procedures from manual to electronic. Customs procedures are increasingly simple and harmonious, according to the standards of World Customs, creating an important basis for promoting the application of information technology (IT) and using modern equipment in management of State on Customs.

Fourthly, increase the use of modern customs management methods, contributing to facilitating goods import and export and international trade, in which risk management has been comprehensively applied in Customs operations, post-customs clearance inspection have been strongly deployed, gradually meeting the requirement of moving from pre-check to post-check.

Fifthly, the application of IT has made a great leap and the Customs sector has built up an information technology system, the core is the automatic electronic clearance system VNASSC/VCIS and e-Manifest systems (awarded information exchange before goods arrive), e-Payments (electronic tax payment), eC/O, e-Permits (done via NSW and ASW) and VASSCM (automatic monitoring). The IT systems covered all professional activities of the Customs sector.

Sixthly comes promoting the customs inspection, supervision and control with a system of cameras, navigation seals, container scanners, modern and large capacity ships and boats.

In particular, implementation of the automatic customs supervision and management system has changed the method of supervision from manual to electronic, enhancing the roles and responsibilities of port and airport operators, warehouse and place subject to customs supervision.

By 2019, the time for cross-border clearance of goods for exports was only 105 hours, down 35 hours compared to 2015 and Vietnam ranked among the top five ASEAN countries in terms of goods clearance time.

The Southern Customs Maritime Enforcement Fleet (3rd Squadron), Anti-Smuggling and Investigation Department, General Department of Vietnam Customs.

Customs - The key force protecting national sovereignty and security

By 2020, the anti-smuggling field continued to gain many positive results, affirming the proactive role of the Customs industry on this front, especially in the fight against transnational drug crimes. Could you have a clearer assessment of the work results on this front?

As mentioned above, anti-smuggling is one of the outstanding results of the sector's work in 2020, especially fighting transnational drug crimes in customs management areas.

From the beginning of the year, the Customs sector stated drug-related crimes will become increasingly active and penetrate the customs management area. That means cheeky criminals passing through border gates by road, air, sea and type of courier.

Thanks to forecasting, grasping the situation early and actively planning the prevention fight, combining with domestic and international coordination. Customs forces have presided over and coordinated to detect and arrest many drug transport cases with sophisticated tricks like hiding in cargo containers and luggage.

The second outstanding results in anti-smuggling are the fight against origin fraud, illegal transmission; trade fraud, tax evasion and export of goods; smuggling, trading in banned goods from weapons, reactionary documents. Notably, the Customs sector promptly discovered and arrested all kinds of prohibited goods related to pandemic prevention and control.

In particular, when the pandemic broke out, contraband goods, especially consumer goods and intellectual property infringing goods could not be transported through the trails, open paths, so the subjects tried to take advantage by passing through the border gate. When we hit hard at the border of Quang Ninh and Lang Son, smuggled goods tended to move to Lao Cai. When hitting hard on land, smuggled goods are transported by air and sea. When fighting focused on the north and the south, contraband goods tend to move to the central. But all those movements, the Customs sector has promptly identified, actively planned, and specialised in the fight against fruit.

In 2020, the industry has chaired and coordinated to detect, arrest and handle 15,314 cases of violation of the Customs law; although the number of cases fell by 11.59% compared to 2019, the value of infringing goods was estimated up to 4,507 billion 139 million, up 48.49%; the amount paid to the State budget 493 billion 684 million, up 2.62%. The Customs Office prosecuted 48 cases and transferred to another agency to prosecute 146 cases.

In particular, the Customs force presided worked with the police force and Border Guards to detect 219 drug cases, arrest 188 subjects. Exhibits seised up to nearly 83 kg and 221 heroin cakes; more than 23 kg and more than 412 thousand synthetic drug tablets; and nearly 647 kg of meth.

At the same time, the General Department of Customs continued to advise and organise the implementation of the tasks of the Standing Agency of the National Steering Committee 389 as assigned by the Minister of Finance - Deputy Head of the Standing Committee of the Steering Committee 389. In particular, the General Department of Customs advised the Standing Agency of the National Steering Committee 389 to promulgate plans to combat, investigate, verify and handle smuggling, commercial fraud and fakes, focusing on a number of key and key topics, such as: Plan No. 854 / KH-BTC on checking, verifying and combating smuggling and illegal cross-border goods transportation in Lao Cai; coordinated with the Standing Office of the National Steering Committee 389 to preside over the conference to discuss solutions to solving difficulties and problems in the fight against smuggling, commercial fraud and counterfeiting.

Focus resources to implement the project of redesigning the overall IT system

The year 2021 is a pivotal year for Vietnam Customs to enter a new stage of development with the central task of building the Customs Development Strategy for 2021-2030, in which resources are focused on implementing the overall design of the IT system. Why set up the redesign story in the current context?

In recent years, in addition to achieved results, the IT system of the Customs sector has also revealed shortcomings and limitations such as: IT application has not covered all fields of State management of Customs, the level of integration between IT systems is limited and has not timely met the changing requirements of legal regulations and still lacks backup IT modules; yet to apply new technologies of the 4.0 industrial revolution.

In the coming time, economic integration, increasing international trade exchanges continue to be developed in both breadth and depth. Therefore, it is required to promote the application of IT for administrative procedure reform, create a favourable business environment and improve the competitiveness of enterprises according to the general guidelines of the Government, as well as the Customs sector. In particular, to conduct more vigorously, effectively and more deeply for the process of reform and modernisation of themselves.

In such a context, the current IT system does not fully, comprehensively nor effectively satisfy the customs reform and modernisation in the coming time.

To ensure effective implementation of political tasks assigned to the Customs sector, to continue to contribute to improving the business environment, enhancing firms’ competitiveness and improving the efficiency of management. In terms of customs, the overall redesign of the IT system of the Customs sector becomes more urgent than ever to build a new, modern, intelligent and integrated system that covers all fields of State management on customs.

Can you share more about the goals and solutions set out in the implementation of the overall IT system redesign project?

The overall goal is set as building the IT system of the Customs sector based on applying the latest technology achievements, in accordance with international standards, towards digital customs, meeting management requirements of intelligent treatment; comprehensive management of enterprises, import and export goods, transit goods, means of transport on exit, entry and in transit from beginning to end; capable of integrating, connecting and sharing information with ministries, branches and businesses through single window and ready to exchange customs data with countries in the region and around the world.

The project has been approved by the Party Civil Affairs Committee and leaders of the Ministry of Finance.

To implement the project, the whole industry must focus on implementing a huge amount of work such as: building software; infrastructure; ensure security and safety for the IT system; solutions to management, operation and maintenance of the system; principles, mechanism of transformation and plans to use software of existing IT systems after the new IT system comes into operation.

Promoting traditions and lessons learned from reform and modernisation over the past years, the whole industry needs to continue its efforts and determination to complete the task of building the overall IT system redesign project, building Vietnam Customs to be as modern as those of developed countries in the world, affirming the tradition and pioneering role in international integration of Customs.

Besides the implementation of the IT system redesign project, in 2021, what are the key objectives and tasks that the whole industry needs to focus on?

Along with the implementation of the project on redesigning the overall IT system, by 2021, the whole industry should strive to fulfill the task of budget collection, striving to exceed 5% of the estimate (estimated at VND 315,000 billion) by leaders of Ministry of Finance assigned.

For the fight against smuggling, this is a very heavy task as the nature and scale of smuggling cases are getting bigger and bigger, and at the same time, there are more and more international and transnational criminal organisations. Therefore, the Customs force must continue to uphold the sense of responsibility, apply professional measures; fully implementing the provisions of the law and the direction of the leaders at all levels; well implement the regulations in coordination with functional forces such as: Border Guard, Police and Coast Guard, Market Management. Especially continue to promote the fight against origin fraud; combating illegal transport of goods, trading in banned goods such as drugs.

By 2021, the whole industry should be proactive and ready to implement the Scheme of Reforming the Model of Quality Inspection and Food Safety Inspection of Imported Goods towards direction that Customs is the focal point in quality inspection and food safety inspection for imported goods.

In addition, attention should be paid to the effective implementation of regular tasks such as post-customs clearance inspection; risk management; inspection, testing; boosting force building; innovate and improve the effectiveness of propaganda.

On the eve of the New Year, what message did you send to officials, employees and employees of the whole sector?

In 2021, the workload set out for the whole industry is very large, so I suggest from the beginning of the year, all officials and employees need to be proactive, active and organise the strong and synchronous implementation of the assigned work contents to comprehensively and excellently complete the set objectives and tasks.

On the New Year of Tan Suu 2021, on behalf of the leaders of the General Department of Customs, I would like to send to the generations of customs officers, officers and workers in all parts of the country, congratulations on being healthy, happiness and success!