Vietnam Customs Boosts International Cooperation

In accordance with the established rotational protocol, the Vietnam Customs will undertake the role of chair and host for the 33rd ASEAN Directors General of Customs Meeting (ADGCM) in 2024.

Delegates at the 11th ASEAN Finance Ministers’ and Central Bank Governors’ Meeting

The ADGCM is an annual meeting that operates on a rotational basis among the customs authorities of ASEAN member countries. This assembly serves as a platform for the customs leaders of the member nations to engage in discussions, make critical decisions, and provide direction on activities related to customs integration measures. The meeting primarily focuses on the following professional domains: Trade Facilitation, Customs Control, and Customs Capacity Building.

Since Vietnam became a member of ASEAN, Vietnam Customs has successfully hosted two ADGCM Meetings in Vietnam in 2004 and 2014. As the host, Vietnam performed its obligations and responsibilities as a member country in ASEAN while enhancing the position and role of Vietnam Customs and in line with the overarching policy of elevating multilateral foreign relations of Vietnam.

As the host in 2024, Vietnam will strive to reinforce connection and unity among ASEAN countries to implement ASEAN Customs development plans and strategies for the 2021-2025 period, which focus on prioritizing the following contents: ASEAN Single Window Mechanism, ASEAN Customs Transit System, and mechanism for implementing the ASEAN AEO Mutual Recognition. In addition, Vietnam Customs will encourage dialogues and consultations with ADGCM partners to achieve goals consistent with the economic development in the new period such as developing Green Customs, building an ecosystem of customs data, performing customs modernization, electronic data exchange, customs control for e-commerce, and simplifying customs procedures for low-value shipments.

The General Department of Vietnam Customs said: Customs cooperation plays an important role in building, developing and maintaining the ASEAN Economic Community (AEC). When ASEAN becomes a single market, a common production and distribution base in the region, through trade facilitation, goods are circulated freely and the goals of deep economic integration of ASEAN are realized.

Therefore, ASEAN has built and continuously improved key legal frameworks, creating a foundation for strategic, long-term customs cooperation and integration in the region. Key documents include the ASEAN Customs Code of Conduct, the ASEAN Customs Agreement, the Agreement on establishment and implementation of the ASEAN Single Window, the Protocol Governing the implementation of the ASEAN Harmonized Tariff Nomenclature (AHTN) and the Protocol on the ASEAN Customs Transit System (ACTS).

The customs cooperation mechanism in ASEAN is implemented under management levels and fixed working groups, of which ADGCM is the highest level. In addition, Vietnam has sub-groups that perform assigned special tasks, such as the ASEAN Transit System, the ASEAN Single Window and the Authorized Economic Operator (AEO).

The main results of ASEAN customs cooperation and integration include ASEAN Harmonized Tariff Nomenclature (AHTN) and the Protocol on the ASEAN Customs Transit System (ACTS). The latter is a customs transit management system that automates the implementation of customs procedures for the transportation of goods in transit across borders within ASEAN by road vehicles. Through a common customs procedure, ACTS allows businesses to move goods freely across ASEAN member states.

In addition, there is also a mutual recognition agreement on priority businesses in ASEAN (AAMRA). The Mutual Recognition Agreement on ASEAN AEO MRA (AAMRA) was approved and signed by all 10 ASEAN member countries and took effect from September 19, 2023. This is one of ASEAN's outstanding initiatives aimed at strengthening supply chain security and enhancing common interests in trade facilitation of all stakeholders.

This agreement is not legally binding. The implementation of the agreement will depend on the actual situations of each country according to the unified roadmap. ASEAN countries also join forces to control and enforce customs compliance. Recently, ASEAN has carried out many programs and initiatives on customs cooperation in the fight against smuggling and trade fraud and ensured supply chain security. Accordingly, Vietnam Customs has actively participated and made notable contributions to the overall control results of ASEAN Customs, notably the “Mekong Dragon” Operation.

The operation is operated under the mechanism of sharing customs intelligence information (hot information and arrest information) through the use of information security tools of the World Customs Organization - CENCOMm and the designated liaison contact system. Vietnam Customs acts as a member of the operation coordination unit (OCU) during the campaign.

By Le Hien, Vietnam Business Forum