Economic Sector

Last updated: Tuesday, March 26, 2019


Customs Sector Taking Lead in Modernisation

Posted: Monday, December 24, 2018

With its ongoing efforts for reform and modernisation, the customs sector has been appreciated by the Government, ministries, sectors and the business community as a leading central agency in applying information technology to meet management requirements and facilitate import-export activities.

VNACCS/VCIS-powered automation
The launch of the VNACCS/VCIS Automated Clearance System sponsored by the Government of Japan on April 1, 2014 is an innovative IT application.

VNACCS/VCIS has brought many benefits to the business community, especially facilitated export and import declaration and clearance to reduce time and costs for businesses. As for customs offices, the most mentioned breakthrough of VNACCS/VCIS is helping Customs deliver the goal of building a centralised information technology system. Previously, the IT system was built at local customs departments, leading to difficult unification of management and IT application in the whole sector. To date, VNACCS/VCIS has been installed in 100 per cent of customs offices nationwide. 99.99 per cent of enterprises, 99.99 per cent of declaration forms and 99.99 per cent of import and export value have been carried out through the VNACCS/VCIS system.

The successful launch of the VNACCS/VCIS system is the foundation for the customs sector to undertake future modernisation programmes based on development goals set by the Government and the Ministry of Finance.

Customs- Connection hub
For the customs sector, since the foundation of the data centre through the VNACCS/VCIS system is laid, integrating technology to reform, simplify administrative procedures, reduce clearance time and improve the performance of State customs management keeps progressing.

Remarkable features include the use of bar codes in customs supervision; coordination in tax collection and payment with commercial banks via 24/7 electronic service; the launch of e-Manifets, and most recently, the application of the Automated Customs Management System. This shows that the goal of further promoting IT application and system integration in the spirit of the Fourth Industrial Revolution in the customs sector is being implemented drastically and effectively.

For example, the Automated Customs Management System called VASSCM (Vietnam Automated System for Seaport Customs Management) was deployed at Haiphong City on December 1, 2017. This is considered the biggest breakthrough in IT customs application since the launch of VNACCS/VCIS. Powered by the Automated Customs Management System, customs offices automatically connect with the National Single Window (NSW) to efficiently use e-Manifest information; the VNACCS/VCIS and E-Customs (V5) for inspection and monitoring.

For port operators, the system helps provide full and timely information on the status of customs clearance permits (from customs offices) on each shipment and each container to minimise risks in carrying out delivery and reception procedures in comparison with using paper evidence. They can manage, integrate and store goods delivery and reception documents in a fast, accurate, scientific and transparent manner; and enhance prestige, increase acceptance of goods and improve business efficiency and competitiveness.

In system integration, the customs sector has played a leading role in deploying the National Single Window (NSW) and the ASEAN Single Window (ASW). As the standing agency of the National Steering Committee, the General Department of Vietnam Customs has worked closely with other relevant ministries and agencies to make Vietnam one of the first four countries in the region to connect with the ASW together with Indonesia, Malaysia and Thailand in September 2015. In particular, NSW has connected with 11 ministries. As of November 15, 2018, up to 130 procedures were available on the NSW, with a total of 1.66 million records settled for over 25,300 businesses.

With the ASW, Vietnam continues to formally exchange certificates of origin (C/O Form D) with four countries (Indonesia, Malaysia, Singapore and Thailand) while piloting the exchange of C/O Form D with Brunei, Cambodia and the Philippines. As of November 15, 2018, Vietnam accepted 50,435 C/O from four ASEAN countries and sent 85,831 C/O to them. In the near future, the ASW will conduct technical connectivity for ASEAN customs declaration forms, phytosanitary certificates (ePhyto) and animal health certificates (e-AH).

This has helped enterprises handle procedures and authorities perform their tasks more effectively. The ASW has helped remove the geographical boundaries among countries, while the NSW has helped gradually remove the notion of “sandboxing” in management among authoritative branches for the common goal and a single policy of building an enabling government which supports the development of enterprises and citizens.
In the coming years, the important goal, specifically set by the Government and the Ministry of Finance for the customs sector, is to further promote IT application to customs procedures towards an electronic paperless customs environment, enabling the service anywhere, anytime and through any means. It is also assigned to increase equipment and enhance the performance of modern technological equipment used for inspection and supervision in key areas.

In the coming time, in the context of the Fourth Industrial Revolution, Vietnam Customs will accelerate research and application of the internet of things (IoT), big data analysis, artificial intelligence (AI) and blockchain in State customs management.

Mr Hoang Quang Phong, Vice President of VCCI
Carrying out tasks of reforming administrative procedures and reducing business conditions and creating favourable conditions for people and businesses as assigned by the Government and the Prime Minister, the Ministry of Finance thoroughly directed all financial domains and achieved many positive results. This has practically contributed to facilitating business performance and competitiveness for enterprises.

We have realised that tax and customs authorities have made great efforts in accelerating administrative procedure reform and applying information technology to management. These efforts have made the Ministry of Finance one of the leading central agencies in administrative reform.

Mr Dao Huy Giam, General Secretary of Vietnam Private Sector Forum (VPSF)
Over the past few years, the customs sector has promoted the customs-business partnership and more closely linked with associations and businesses. Its initiatives for partnership agreements are implemented on a large scale and many enterprises are entitled to “Priority enterprises” benefits. The sector has also facilitated trade through the NSW and risk management mechanisms. These progressive steps are what businesses expect.

Hien Le

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