Update on US Technical Assistance for Vietnam's Trade Facilitation, and Support for New Customs Bond System

1:59:48 PM | 8/20/2018

An update on USAID's five-year technical assistance "Trade Facilitation Programme" and a report on the status of the new Customs Bond System will be provided at an event scheduled to be organised by the Global Alliance for Trade Facilitation (GATF) on September 6, at the Sheraton Saigon Hotel, HCM City. A panel of experts from USAID, GATF, Baker & McKenzie, Saigon NewPort, etc. will provide a briefing and dialog on a project to facilitate trade in Vietnam with introduction of a US-style customs bond system for imports. This initiative will simplify procedures and reduce the time needed for imports. A delegation of Vietnamese government officials has visited the United States to gain insights into the US customs bond system as part of a pioneering trade facilitation initiative. The project, which is being led by the Global Alliance for Trade Facilitation, aims to speed up the release of goods at Vietnamese ports by introducing a modern customs bond system, similar to that used in the US Vietnam will be the first country outside the United States with such an all-encompassing system.

The customs bond system allows traders to purchase bonds issued by insurers to guarantee that they will comply with government regulations, pay all applicable duties and taxes, and submit all required permits and certificates. In exchange, customs expedites release of their goods by allowing for “conditional release” of goods. The release is conditional pending completion of all customs clearance formalities, and if the trader defaults, the bond is called.

In addition, other key aspects of customs and trade facilitation will be discussed, including an update on logistics infrastructure in Vietnam, a foreign direct investor’s perspective, and Ms. Ana Guevara, USAID’s Senior Advisor – Trade, will give an overview of the US Contribution to Vietnam’s prosperity through a five-year technical assistance program to support Vietnam’s trade facilitation.

Vietnam jumped 25 spots in the World Bank’s Logistics Performance Index 2018, compared with 2016, ranking 39th among 160 countries, demonstrating substantial improvement already thanks to efforts to improve customs efficiency and trade facilitation. The Logistics Performance Index is a biennial study that analyzes a country’s trade logistics performance. The data is derived from a survey of logistics professionals based on six indicators.

The USAID Trade Facilitation Programme will help to further improve Vietnam’s ranking on the Logistics Performance Index. The WTO estimates that Trade Facilitation will reduce Vietnam’s trade costs by 20 per cent, thereby increasing its global competitiveness as a location for manufacturing and export to global markets.

For an event description and to register online, please visit http://www.amchamvietnam.com/events/customs-and-trade-facilitation