Risk management is a modern customs management method defined as standards in the World Customs Organisation (WCO)’s Kyoto Convention. Adopting risk management not only provides optimised effects for customs authorities in the current context of limited resources but also brings huge benefits to the business community.
The risk management information system was officially put into use by the customs sector from March 2011. Upon the request of the General Department of Customs (GDC), on June 7, 2011, Vietnamese Finance Minister signed Decision 1402/QD-BTC on the establishment of the Customs Risk Management Committee. Accordingly, the Customs Risk Management Committee is responsible for coordinating with the GDC’s Personnel Organisation Department to build independent risk management organisation models affiliated to GDC.
Assigned functions and roles of collecting and processing risk management information, the Risk Management Committee started devising the Risk Management Development Strategy in the period from 2011 to 2015, with vision to 2020. Personnel development is a top priority. Together with completing organisation, many legal documents have been issued to facilitate and legalise risk management operations.
According to GDC, risk management techniques are effective means to simultaneously ensure customs control and trade facilitation. By selectively choosing goods and passengers for examination, clearance process is quickened.
Low-risk shipments will be cleared more rapidly and administrative procedures are time-saving. This creates a variety of benefits like more effective human resource distribution, increased budget revenues, enhanced law compliance of enterprises, improved relations between customs authorities and enterprises, shortened clearance time, and reduced transaction costs.
In fact, risk management is a part of modern customs management strategy. It not only helps avoid and minimise loss and damage but also effectively facilitates customs operations.
From risk management superiorities, GDC is determined that creating breakthroughs and changing in nature of risk management are a major task of risk management in 2012 and subsequent years.
To accomplish this task, the customs sector will focus on collecting information, analysing and assessing risks. Its focus will be paid to feedbacks from enterprises, information about customs law violations, customs risk forecast analysis, customs coordinating analysis, etc.
Currently, the Customs Law lacks specific regulations on principles, relationships, roles, positions, and impacts customs operations, operating measures, responsibilities and disclaimer in risk management application. In other words, this is an adhesive substance to unit customs activities, said Mr Bui Thai Quang, an official from Risk Management Committee. This is also the legal groundwork for risk management application. Hence, there is an urgent need for risk management regulations and its application in Customs Law.
H.Thinh
Vietnamese
