Modernising and Reforming Customs Procedures: A Busy Start

Vietnam Customs has set the target of “Improving customs mechanisms and policies to fit WTO regulations, speeding up modernisation, facilitating investment, trade, protecting national security and community benefit, and training professional customs forces to meet the integration demand.” It can be affirmed that 2007 is an animated and busy year for Vietnam Customs in the new integration period.

 

First of all, modernising customs and reforming administrative procedures are prioritised. In 2007, Vietnam has obtained considerable progress in these activities. The leader of the Ministry of Finance and Customs General Department has guided the task of modernisation, including building strategic plans for customs reform, development and modernisation. Plans for modernising customs in 2007-2010 have been completed, on the basis of checking international commitments in complying with Vietnam’s law system, and building roadmaps for carrying out commitments after Vietnam has become a WTO member. The customs industry has also actively joined and implemented related international conventions and agreements such as the Kyoto Convention, HS Convention and WTO value appraisal agreement. The industry has applied international regulations and norms to legal customs documents such as the Law on Customs, and attached guidance decrees and circulars.

 

Technology has also been applied to raise management effectiveness, for example the office management computerising system (Net –office) across the industry has gained positive results. Some technology applications have been developed or upgraded to implement the Law on Tax Management, the Law on Customs, and other legal documents. Online customs procedures, such as piloting online customs procedures in the second phase at the Department of Customs in Ho Chi Minh City and Haiphong, have been implemented. The customs sector gained some impressive results which have been highly appreciated in public opinion, especially among the business community. It is preparing necessary conditions to pilot online customs procedures at other customs departments. Most customs departments in big provinces and cities such as Haiphong, Ho Chi Minh City, Hanoi, Danang, Dong Nai, Binh Duong, Can Tho, and Ba Ria-Vung Tau have deployed distant customs statements.

 

The industry has quickly implemented customs modernisation projects and finished World Bank-funded projects such as training strategies, customs statistics, human resources management, intervention by foreign currencies and legal framework. The contents and results of bidding packages, which have been introduced in international conventions, have been initially considered as requirements for reform and modernisation, encouraging units in deploying and operating customs procedures toward modernisation. Programme contents of the EU-funded technical support projects for Vietnam’s government (ETV2) have been well carried out. The customs sector of Vietnam is in negotiation with Japan to sign the project in the second phase to improve the management capacity of Vietnam (or JICA project).

 

From another angle, the reform of administrative customs procedures has also been promoted. Some bodies in the General Department of Customs and local customs departments such as Dong Nai and Ho Chi Minh City initially applied the quality management standard of ISO 9001:2000, in administrative reform. Under the guidance of the Prime Minister, the customs sector has started working on Saturdays, and built and issued the “one-door” mechanism. Most local customs units hold an annual business dialogue, with customers meeting in both the north and the south at the department level. The sector has also often discussed and worked with the Vietnam Chamber of Commerce and Industry (VCCI), and other associations.

However, for various reasons, the administrative reform and customs modernisation still has many shortcomings, and has not received entirely positive responses from the business community.

 

In fact, administrative reform has not obtained progress in some provinces. The “one-door” mechanism has not been completely effective, and many businesses in localities have complained when export and import activities require new procedures. The application of quality management standard of ISO is obligatory. Online customs services have not met the demand of risk management. The ability to collect business information is limited. Due to the weak technical infrastructure system, computer network and transmission speed, many businesses are better off using the traditional statement method!

 

There are several reasons for this. First of all, the implementation of online customs procedures is still a new and complex task to many customs professionals; the preparation is not still good and time spent building software and training staff and businesses is still limited, affecting the implementation. The guidance and management of the project are still passive. The majority of managers have no experience in this kind of project. There is a shortage in skilled and qualified human resources to take part in bidding packages of projects. The customs industry has not invited international experts for consultancy. The building of assignation terms is not proper. The guidance for customs modernisation is not well applied at both central and grassroots levels. Therefore, there is no joint participation of bodies and departments inside and outside the Ministry of Finance, and the General Department of Customs. Another problem is that the majority of businesses still do not understand the benefit of the customs modernisation.