Improving customs procedures for goods in e-commerce transactions

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Illustrative Photo

Interconnected management software

Accordingly, the Customs Management and Supervision Department said the draft Decree focuses on regulations on the software system to manage export and import goods in e-commerce transactions; information on orders; specialized management policies, tax policies; and customs procedures.

Specifically, to ensure the management of goods from the time of transaction to customs clearance, it is necessary to build an information technology system to manage export and import goods in e-commerce transactions.

The information technology system will have the following characteristics: The system is a module designed within the general architecture of the Customs information technology system for customs management and clearance.

The system is connected to the National Single Window Portal to share as well as get information on license/specialized inspection results for customs clearance of goods in case goods are controlled by many specialized management agencies.

The system is also connected with the National Population Database to serve the inspection and supervision of goods.

In addition, information on the System is connected and shared with stakeholders on export and import goods in e-commerce transactions: e-commerce trading floors, e-commerce websites for selling goods, shipping agents and customs agents.

Regarding information on orders, the draft Decree stipulates the sending of order information, the time of sending order information, and the responsibilities of the parties involved upon sending order information.

Specifically, those responsible for sending information about orders to the system are shipping companies or customs agents. The order information must be sent to the system before the goods arrive at the entry border gate (for imported goods) or the exit border gate (for export goods). Also, the minimum period for the customs agency to process the information about orders is specified.

If the information about orders is not sent to the system in advance, customs procedures will not be completed. The information about orders must be sent, such as name and quantity of goods, transaction price, shipping time, shipping unit and payment. The sending of information about orders to the system is to assess risks and take customs measures in accordance with customs laws.

An important issue in the management of import and export goods through e-commerce is policies on specialized management and tax. The Customs Management and Supervision Department said to remove obstacles for buyers on e-commerce trading floors, e-commerce websites need to have specific regulations on tax exemption rates and goods exempted from specialized inspection.

The General Department of Customs have reviewed and added some cases of exemption from specialized inspection such as: Imported goods with a value lower than the duty-free quota (except for goods subject to quarantine and permits, conditions and specialized inspection regardless of customs value); or imported goods with a customs value higher than the duty-free quota but on the list of goods exempt from permits, conditions and specialized inspection according to the norms specified in the Decree.

Apply customs procedures by risk level of goods

Regarding customs procedures, the draft Decree stipulates, based on the risk level of imported and exported goods, the customs agency shall apply appropriate customs procedures. Accordingly, imported and exported goods transacted via e-commerce are divided into two groups with different levels of risk. Group 1: Goods assessed by the Customs as low risk include goods that must satisfy the conditions of duty-free goods and specialized inspection exemption; Group 2: Goods assessed by customs as high level of risk include goods that are not specified in group 1.

Based on the characteristics of each group, the Decree also provides different customs documents. Simultaneously, customs documents sent to the system with the order information will be digitalized and paper documents are not required in the customs process towards paperless customs.

In addition, modern measures are applied to ensure the inspection, supervision and control of the customs agency without affecting customs clearance. For example, the e-commerce management software system connects and checks information with the database of the Customs sector and other functional units to combat fraud; the system does not allow registration of customs declarations in some cases; the system warns Customs agency on cases with signs of high risk; the system helps customs declarants including shipping enterprises and customs agents get information about orders sent to the system in advance for customs declaration to avoid errors in data entry and declaration.

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In addition, the e-commerce management software system also helps check customs documents automatically to give warnings and feedback to customs declarants.

The physical inspection of goods is also prioritized to use modern equipment such as scanners. In case there is any doubt in scanning, the goods will be transferred for direct inspection by customs officers.