Digital Customs and Smart Customs model will continue to reduce clearance time

The implementation of Digital Customs and Smart Customs model has met the requirements when the volume of import and export goods grows rapidly. Photo: T.Bình

Fast cargo clearance, reducing congestion

For the Customs authority, customs control will be more effective thanks to the automated cargo control functions and checking process of cargo declaration as well as the declaration of people on entry and exit. The selection process can be implemented carefully.

Intelligence collected by Customs authority may be fed into information technology (IT) systems and taken into consideration when performing the selection process. The ability to detect fraudulent activities, thus, is enhanced by using automated systems and the selection can be processed in a more systematic, accurate and timely manner.

The new IT system will assist with the identification of imported goods when the declared value of the goods is outside predefined parameters.

The cargo clearance will be faster and more efficient. According to the General Department of Vietnam Customs, the efficient process of clearance of goods and passengers is one of the main benefits of automation through creating: higher productivity for both customs authorities and business partners; use resources more efficiently; cut costs for both Customs and partners; more timely and accurate information; better controllability; reduce congestion at seaports and airports.

On the other hand, the automation of customs procedures is associated with the electronic exchange of information like cargo data and declaration of goods, allowing information to be processed before the arrival and/or departure of the goods. Therefore, processing information regularly before goods actually enter the customs territory or leaving customs territory allows Customs authority to check the information and conduct a risk assessment of goods. Thus, the decision of goods release can be made as soon as the goods arrive via electronic methods.

Along with that, when the IT system is used by both Customs authority, legal authorities and businesses, all parties involved in an import-export transaction can transfer data to a centralised processing system. Customs authorities can send data as requested by customs clearance units at border gates, creating a fast "single window" clearance mechanism for the Customs sector.

Synchronous application of Customs Law

The successful implementation of the Digital Customs System and the Smart Customs model brings many other benefits such as synchronous application of the Law on Customs, tax collection is more efficient, data analysis is more accurate and customs statistics are accurate and timely, improving data quality.

All transactions are handled in a uniform manner, ensuring consistent application of domestic laws and equal treatment to all trading partners. The use of international standard data and business modeling allows for more uniform application and fair treatment within trade rules as the laws change then the rule also changes.

Regarding revenue collection, the automation of the tax collection process will help to ensure taxes are collected and calculated in a timely manner. Bad debts or outstanding debts can be identified and settled quickly.

In fact, in a manual work environment, the reconciliation of taxes received and taxes owed is often slow and error-prone.

For data analysis, the automation of customs systems allows the Customs authority to immediately access up-to-date information. With the application of the information management system, Customs can use this information in a useful way. It also enables more effective post-clearance audits at both the local and national levels.

IT enables customs declarants to submit to Customs error-free data in a timely manner. Data sent and received electronically can be more accurate as the automatic information receiving system has functions to check the validity and reliability of the data. This helps ensure that any data analysis performed will be more accurate.

The automatic declaration process will help the available trade statistics to be included in the statistics received at the time of export and import in a structured manner. This is very cost effective and statistics obtained this way will be more accurate and up to date. As a result, other agencies can apply measures very quickly when necessary.

An even greater benefit of the IT system is higher data accuracy thanks to the validity and reliability checking functions in data acquisition. As it is done while the goods are still under Customs control, deviations can be handled more easily. These checks are aimed to ensure reliability of the raw basic data, which will be saved in the computer system of the Customs authority.