Economic Sector

Last updated: Tuesday, March 26, 2019


Risk Management, Cargo Inspection Flow in line with International Laws and Practices

Posted: Thursday, December 27, 2018

Applying risk management and flowing exports and imports for testing is a popular modern management method in the world as recommended by the World Customs Organisation (WCO) and the Law on Customs. In Vietnam, risk management is being applied by customs and other authorities to facilitate enterprises' compliance with laws and improve effective management of high-risk enterprises and goods.

Modern management methodology
According to the General Department of Vietnam Customs, applying risk management and flowing export and import inspection is based on provisions of Clause 2, Article 16 and Article 17 of the Law on Customs; Article 13, Article 14, Article 15 of Decree 08/2015/ND-CP dated January 21, 2015, of the Government on detailed regulations and executive measures to the enforcement of the Law on Customs concerning customs procedures and customs inspection. Classified into green flow, commodities will be cleared immediately; yellow flow commodities will be imposed detailed examination of records; and red flow goods will be subject to direct material inspections.

Customs offices base on integrated results, deal with law compliance results, and classify risks according to criteria issued by the Ministry of Finance to decide on customs inspection and supervision, post-clearance audit, and other customs measures.

Basically, these regulations are institutionalised from international practices and WCO standards and recommendations to ensure the integration of Vietnam into the world economy, especially from the angle of facilitating global trade. Besides, the customs sector is decisively carrying out Resolution 19/NQ-CP on continued enforcement of major tasks and solutions to improve the business environment and enhance national competitiveness in 2018 and subsequent years. Accordingly, one key solution is to move from “pre-inspection” to “post-inspection”, reducing export inspections to facilitate enterprises.

During working meetings with the Ministry of Transport and the Ministry of Health on November 17, 2018, Deputy Prime Minister Vuong Dinh Hue, Chairman of the Steering Committee for ASEAN Single Window (ASW), National Single Window (NSW) and Trade Facilitation, emphasised that pre-inspection of goods should be phased out and replaced with “post-inspection” based on risk management principles.

“Importers whose goods meet criteria and standards will have their goods classified into green flow in the next time. No business is foolish enough to lose its prestige and interests, even to face criminal prosecution. But, certain goods are subject to immediate direct border-gate checks, not post-checks when they are circulated and distributed in the domestic market,” said Deputy Prime Minister Hue.

Concurrent “service” and “management”
A representative from the Risk Management Department under the General Department of Vietnam Customs said that, in addition to adopting risk management, flow-based inspections aimed to facilitate the business community and reduce customs clearance time to strictly control acts of violation and abuse of open policies on export and import to commit smuggling and trade fraudulence, the customs service has been applying different firm solutions at the same time.

Imports are imposed pre-scanning. Specifically, customs authorities collect and analyse information in advance (E-manifest information) in order to promptly detect shipments carrying signs of risk, violation or smuggling to perform pre-check of imported goods in accordance with Article 9 of Circular 38/2015/TT-BTC.

To accelerate declaration record inspection automation in order to decide whether to accept declarations filed by enterprises or not as per Clause 2, Article 19 of Circular 38/2015/TT-BTC that amends and supplements Circular 39/2018/TT-BTC.

Carrying out customs control and supervision measures; collecting and exchanging professional information among customs offices and between customs offices and local and foreign authorities, information sources provided by the masses to timely detect violating enterprises and violated goods to apply measures to halt the passage of goods with signs of violation at supervisory areas under Clause 32, Article 1 of Circular 39/2018/TT-BTC that supplements Article 52d of Circular 38/2015/TT-BTC.

At the same time, customs offices also strengthen post-audit customs procedures in accordance with Article 77 and Article 78 of the Law on Customs. Accordingly, customs offices at all levels regularly develop many programmes and plans to strengthen post-inspection customs clearance of green-flow shipments.

To post-check green-flow exports, customs offices take measures to collect professional information, assess risks and identify high-risk shipments to impose scanning and inspection according to Article 9 of Circular 38/2015/TT-BTC.

Risk management and flow-based inspection procedures in State customs management are applied closely and consistently under the law and international practices to reform and facilitate exporting and importing activities, reduce the time of customs clearance, and enhance national competitiveness under the Government policies. Last but not least, customs offices carry out a number of measures to improve management capacity and effectiveness, promptly detect and handle individuals and organisations that deliberately commit acts of violation.

Thanh Nam

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