Implementation of the Customs Development Strategy to 2020: Much progress in customs management

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Recently, the Customs sector has implemented the automated system for customs management at seaports and airports to modernize the supervision of goods and facilitate businesses. In the photo: Cat Lai port, HCMC is one of the ports effectively deploying the automated system for customs management and supervision. Photo: Huy Kham.

Modern customs management meets international standards

It can be seen that, with the effort to reform procedures and standardize customs management to meet the requirements of modern customs and comply with international standards, customs management regimes have been standardized in accordance with the provisions of the revised Kyoto Convention. The Customs Law 2014 created a legal basis to deploy fully electronic customs procedures and exchange information before goods arrival. In particular, the automated customs clearance system has brought remarkable efficiency and practical benefits to import-export businesses and the state management on customs. For businesses, the system has helped businesses to shorten customs clearance time, save costs, limit errors in the data entry process and reduce dependence on paper documents. The deployment of VNACCS / VCIS has contributed to improving the capacity and efficiency of modern customs management. The VNACCS / VCIS has been deployed at all customs departments (35/35), customs branches across the country, with the database centrally processed at the General Department of Customs level.

Specifically, the implementation of customs procedures has exceeded the set targets, and accordingly with the implementation of VNACCS / VCIS system, right in 2014, e-customs procedures were implemented at 100% of customs departments, 100% of customs branches; 100% of basic customs regimes, 99% of import and export turnover and 99% of enterprises had implemented electronic customs procedures. The time for receiving and clearance of the Green channel was only 1-3 seconds, for the Yellow channel, the time for processing and checking documents was no more than 2 working hours.

Regarding customs clearance time, the average from the time when the enterprise registers the declaration until the decision on clearance / release for imported goods was less than 2 days; The average clearance time for exported goods was less than 6 hours for the Green channel shipment, and if there was no tax obligations, this time was only 4 seconds.

Continuously in 2016, 2017, Vietnam ranked 4th in 10 ASEAN countries on the customs clearance time of goods across borders. Striving to 2020, the customs clearance time across borders of Vietnam continues the downward trend and holds the 4th rank in 10 ASEAN countries.

Regarding the implementation of Authorized Economic Operator (AEO), this regime has been applied since 2011, so far the regulations on priority enterprises have been relatively sufficient. According to statistics from the Department of Post-clearance Audit (General Department of Customs), by the beginning of February 2019, the General Department of Customs has recognized 66 AEOs. Regarding the implementation of mutual recognition with countries implementing the AEO program, the General Department of Customs has been negotiating a mutual recognition agreement on AEO program with the South Korean Customs.

The application of modern customs management methods is also shown by the customs sector implementing the automated customs supervision at seaports and airports in order to modernize the cargo supervision. Recently, the General Department of Customs has implemented the Automated system for customs supervision (VASSCM System) through connecting and exchanging information with port operators, airports, warehouses and locations under customs supervision. The implementation of VASSCM has facilitated customs process to bring goods out of warehouses, yards and ports more easily; reduced contact between customs and businesses; reduced travel time for customs procedures of import-export enterprises to overcome congestion at ports, warehouses and yards, and created convenience and transparency in the business’s management and operation.

Efforts to reform administrative procedures in the field of imports and exports

Along with customs management reforms, the General Department of Customs also actively promoted the coordination with ministries and sectors in improving the efficiency of specialized inspection, implementing the National Single Window and ASEAN Single Window to simplify procedures, reduce costs of administrative procedures in the field of imports and exports.

Particularly in specialized management, in recent years, the General Department of Customs (Ministry of Finance) has actively coordinated with ministries to strengthen administrative reform in the specialized inspection for import and export goods according to Government’s Resolution 19 / NQ-CP from 2014-2018. In this period, specialized inspection for import and export goods had many obvious changes; many documents were amended, supplemented and issued, meeting the requirements of the Prime Minister's Decision No. 2026 / QD-TTg and Resolution 19-2017 / NQ-CP. Many ministries finalized the amendment and supplementation of legal documents as required; many new documents have been revised and issued towards facilitating enterprises, cutting down the list of goods subject to specialized inspection, changing the inspection methods, applying risk management in inspection and changing inspection time from pre-clearance into post-clearance for many items and increasing the subjects exempted from inspection and making lists goods with HS codes transparent.

Customs policy has created a foundation for reform VCN - In the Customs Development Strategy to 2020 (Decision 448 / QD-TTg dated March 25, 2011), ...

The ministries have electronized the specialized inspection procedures and participated in the National Single Window.

The implementation of the National Single Window and ASEAN Single Window has reduced paperwork, cut time and cost for administrative processing in the field of import and export, basically changed the specialized management and inspection method; at the same time, promoting e-Government, improving the operating quality and efficiency of state agencies and better serving the people and businesses.