impact of implementation of e customs procedure on customs authorities and export import enterprises

ABSTRACT Title of the thesis: Impact of implementation of E-customs procedure on customs authorities and export-import enterprises Level: Final assignment for Master Program in Public Ma

UPPSALA L \ r UNIVERSITY OF ECONOMICS AM) 84 r s s VM H MASTER PROGRAMME OF PUBLIC M * ^ ,dt

Nguyen Truong Son & Bui Tuan Phong

MPPM-Uppsala - Intake 1

IMPACT OF IMPLEMENTATION OF CUSTOMS PROCEDURE ON CUSTOMS AUTHORITIES AND EXPORT-IMPORT

E-ENTERPRISES

Supervisor:

Local Supervisor:

Prof Sven Jungerhem

Dr Huyen Nguyen Thi Ngoc

Hanoi, May 2011

ABSTRACT Title of the thesis:

Impact of implementation of E-customs procedure on customs authorities and export-import enterprises

Level: Final assignment for Master Program in Public Management

Author: Son Nguyen Truong

Phong Bui Tuan

Supervisors:

Uppsala supervisor: Prof Sven Jungerhem

Local supervisor: Dr Huyen Nguyen Thi Ngoc

Date when the thesis is presented: Tentative 17-19 May

Objective: This essay offers the results from evaluation and analysis of the

current status of the implementation of E-customs procedure; the positive aspects and shortcomings of the implementation of E-customs procedure in Vietnam, its impacts on customs authorities and import-export enterprises applying E-customs procedure

Methodology:

In this essay Two books: Handbook on impact evaluation - Quantitative

methods and practices and Handbook on Planning, Monitoring and Evaluating for Development Results have been used to make theoretical framework for analyzing impact of implementation of E-customs

This essay was based on books, documents, theory and models of electronic clearance of some countries, as well as data collected directly from the General Department of Customs, Provincial and Municipal Departments

of Customs applying E-customs procedure; the magazines of Financial Informatics, Research on Customs, Customs Press and web pages

Through two surveys of local customs departments implemented customs procedure and some import-export enterprises

E i- Survey I: To interview 6 people in local Customs Departments that have been implemented E-customs procedure

+ Survey II: To interview and give questions to 50 enterprises (of which

30 enterprises participating in E-customs procedure and 20 enterprises

performing traditional customs procedure)

From the theoretical model and actual data collected through methods of

sociological survey, this essay has used statistical methods, methods of

analysis, comparison and summarization in a systematic, scientific and

practical way based on the data collected to for the study

Results and Conclusion:

This essay is almost mentioned E-Customs procedures, roles and basic characteristics of electronic Customs procedures; The impact of E-Customs procedures on Customs and import-export business; and also answered the research questions: What is E-Customs procedures? What is the role of E-Customs procedures? What is the advantages of E-Customs procedures

compared to former Customs? What is the benefits of implementing the

electronic Customs procedures to Customs and import-export business? What inadequacies, difficulties and problems for businesses and Customs is when implementing the electronic Custonis procedures? What is the positive and negative effects in the implementation of electronic Customs procedures for both Customs authorities and business?

Limitations and proposed next steps

The analysis of Impact of implementation of E-customs procedure on

customs authorities and export-import enterprises also raised deeply research

on E-Customs which deployed in Vietnam in the following project such as:

"Which solutions is to implement effectively E-customs procedures in

globalization?"

Or '' The role of E-Customs procedures in Promoting commercial

development "

Contribution of the thesis:

The study will play a part to give a suggestion to managers, leaders, government to think of management policy and some recommendations for enterprises to get the best benefits brought from E-customs procedure

Key words: E-customs procedure,

1.3 Scientific and practical significance of the rcsearc 8

1.4 Method g 1.5 Material 11 1.6 Scope and demarcations ] 1

C H A P T E R 2: 11 lliORl-TlCAE FRAMI:W()RK 1 OR ANALYZING

IMPACT Ol- IMPLEMENTATION OF E-CUSTOMS PROCEDURE ON

CUSTOMS AUniORITIl-S AND EXPORT-IMPORT ENTERPRISES 13

2.1 Definition and characteristics of I>cusloms procedure 13

2.1.1 Definition of E-customs procedure 13

2.1.2 CMiaracteristics of I-customs procedure 14

2.2 Process of l>customs procedure 16

2.2.1.1'or customs officers 16

2.2.2 I'or customs declarants I 7

2.3 Conditions lor ihc implcmcnlation and dc\clopmcni of l cust(Mns

procedure \^)

2.3.1 l o r Customs Department implementing I>customs procedure 1^)

2.3.2 1\M-Customs Suh-Deparlmeni implementing E-customs procedure 19

2.3.3 I'or Data and Information lechnolog) Centers under Customs

Department implementing 1 customs procedure 20

2.3.4 l o r enteiprises 21

4 1 he basic differences bciween traditional customs and E-customs 21

S EAistenccs inadequacies, problems in 1 -customs procedures 22

1 Relating to program software, equipment, network 22

2 Ihc Customs Department 24

3 1 he Enterprises 26

4.Scr\iccs Suppliers 27

C H A P T E R 3: ANALYSIS OF Till; Pll OT PROCESS OF E- CUSTOMS

PROCl l)lM<i; - IMPACT OF IMPLEMENTING E-CUSTOMS

P R ( ) C 1 : 1 ) U R F : 0 N C U S T 0 M S AUTlIORiriES ANDNTITIPRISES 29

3.1 l cusioms implementation impacting customs authorities 32

3.1.1 Posin\c impact

^^

-ABBREVIATIONS

APEC: Asia-Pacific F^conomic Cooperation

ASEAN: Association of Southeast Asia Nations

C/O: Certificate of origin

CFR: Cost and Frieght

CTF: Cost, Insurance and Frieght

ECUS: I>customs sofware

EU: European Union

l O B : I r e c on hoard

I IS: I larmonize system

IF: Information technology

Kyoto: International Convention on the simplification and harmonization of customs procedures ( Kyoto convention) NAF'I A: Nortii American free 1 radc Agreement

VAN: Value added Network

VPN: Vilual private Network

WAN: Wide area Network

WCO: World Customs Orgini/ation

WTO: World frade Oreini/ation

CHAPTER 4: SURVEY RESULT ANALYSIS TO ENTERPRISES IN

IIAI PHONG PARTICIPATING IN E-CUSTOMS PROCEDURE - SOME

SOLUTIONS TO IMPROVEMENT OF E-CUSTOMS PROCEDURE 38

4.1 Comments on the implementation of E-customs procedure at E-Customs

sub - Department 38

4.1.1 Comparison between l;-Customs procedures and traditional Customs

procedures 38 4.1.2 The specific benefits achieved by enterprises when participating in 1>

4.1.5 The difficulties given to enterprises at Customs Departments when

participating in I{-Cusloms procedure 41

4.2 What about 1-customs done in haiphong Sub-Department 41

4.3 What about l-CUS for declaration 41

4.3.1 i:\alualionofECUS 41

4.3.2 The difficullies thai enterprises face when using 1,CUS 42

4.4 CcMilenls need impro\ ing and amending 43

4.5 Confirmalii)n lo participate 1 -customs procedure or not 44

4.6 Solutions to improxement of L-customs procedure 44

CHAPTERS: CONCLUTION LIST OF RESOURCES 50

LIS f 01 SOURCES 52

APPENDIX 1: Pl-OPIl IN VOLVED 55

APPI-NDIX 2: F : N T E R P R 1 S E S INTl R \ ' 1 1 D I O R 11 l l l R ()P1MUNS OF

- 3

ABBREVIATIONS

•k "k it

APEC: Asia-Pacific Economic Cooperation

ASEAN: Association of Southeast Asia Nations

C70: Certificate of origin

CFR: Cost and Frieght

CTF: Cost, Insurance and Frieght

ECUS: l:-customs sofware

F^U: European Union

VOB: Free on hoard

1 IS: I larmoni/e system

If: Information technology

Kyoto: International Convention on the simplification and harmonization of customs procedures ( Kyoto con\ention) NAl'FA: North American I-ree Trade Agreement

VAN: Value added Network

VPN: X'iuial private Nelwt)rk

WAN: Wide area Network

WCO: World Customs Orginization

WIX): World frade Orginization

CHAPTER I 1.Introduction

1.1 Introduction

Nowadays, globalization and international economic integration is becoming one of the main trends of modem intemational economic relations Accordingly, the world trade has increased rapidl\: if the world's export rate reached 69.7 billion dollar onl\ in 1950 then it reached 5460 billion in 1999' and nearly 20 billion billion dollar at present Wiih the apprearance of global and local institutions such as WTO, EU, APFC, NAFTA, ASEAN llie world today is living in the strong process of globalization In such strong trend ol globalization and international economic integration as toda\, manv opportunities as well as great challenges ha\e been created for de\eloping countries in general and Vietnam in particular In this context, it is ncceassr\ for countries wishing to participate in intemational economic integration

ellecti\el\ to make an entire and comprehensixe inno\alion ol' institutions,

mode, management methods Since hecoming a member of the World frade Organization (W'FO), X'ietnam has had to make international commiuiients in

which Vietnam Customs is one of the branches has lo implement internalit>nal

commitments such as International Acts Vietnam has signed on the program

of harmonization of customs procedure under K\olo Con\eniion, especiall}

Protocol on facilitatii^n for ASEAN's goods" From the abo\e reasons

Vietnam cuslt)ms is rec|uired also to enhance modernization reforms in its

operation, lo i\o research and appi} modern management methods in order lo

create fa\iM*ahle conditions for trade and promote the eountrx's economic de\ eK>pmcnt hut well to ensure management requirements and customs procedure

' Glolxili/ation and VictnanTs iiiicriiaiioiul economic inlcgration, P5

•^ \\"l () intCLzralion- opporlunilics challcni^cs and our actions Dale 07 I I 2000 p'

"'l'\pcricnccs ofcuslonis mordcrni/ation on sonic counlncs C liapicr 2,3

However, implementation of E-customs procedure on the basis of limited lacihtics in the context of Vietnam's econom\ reached a new level compared

to other developing countries in Southeast Asia: Vietnam's public administration in general and customs procedure in particular are in the period

of reforming: the extent of application of information teehnolog\ in the

management of customs operations is not ssnchronizcd: qualiticaiion o\' customs officials does not meet requirements: most o\' import and export

enterprises of small and medium scale may not ha\e a sound perception about the ulilit} ol F-cusloms procedure, not make a necessar\ investment in machinery II equipment and software, networking l\)r transferring data to and receiving it from customs agenc\'

I here have been some scientillc researches which refered to aspects of Vietnam customs o\' Vietnam in the process of international economic

integration, reform and customs moderni/alion such as:

a) Fe Van loi I'icnui/ii {^(sionis in the process of rci^lofnil iuul infcrncffioiui/ ccononiic in/ci^rci/ion a IMil) thesis in political ec(Mi(>mics,

presented in 2005 at the National Political Academv No C hi \linh, Ihc thesis refers t o praclical problems, reason and r ealit> of Cu stoms o perations in

Vietnam in the process o\' regional and iniernational economic integration

under pcrspecti\ e ol"political economv

b) Ngu>en Ngoc 'fuc, Fnr/hcr rcforni (nn/ inoc/crnirolion of I'/cfnon} Cnslonis

lo i}}cci rccjnifcnienfs of ifilcnhiiionol economic inlegrciiion a Phi) thesis in

economics, presented in 2007 at llaniM foreign frade Uni\ersil> Ihc thesis describes the scientific basis for the continuation of reform and modenizalion

oi cusl(Miis procedure as well as the ohicctive ncc^l and content ol' further

iclorm and moderni/ation: refers to the actual situation ol" customs reform and modernization, and give direciions and solutions to further reform and

modernization ctf eustiims in X'ietnam lo meet requirements of international

This essay selecied the book: Handbook on impact evaluation Quantitative methods and practices of the author: Shahidur R Khandker, Gayatri B Koolwal, Hussain A Samad' and the book: Handbook on Planning Monitoring and Evaluating for Development Results - Ignited Nations Development Programme (2009) lo studv the impact of implementation of e-cu.sloms procedure

Ihis essay was based on books, documents lheor> and models of electronic clearance of some countries, as well as data collecled from the

General Department of Customs Provincial and Municipal Departments of Customs applving li-eusloms procedure: the magazines ol': financial Informatics Research on Customs, Customs Press and weh pages

- through two survevs of local customs departments implemented customs procedure and some impori-export enterprises

1-i Survev I: lo 1-inlerv lew 6 people 1-in local Customs Departments that have been implemented 1 -customs procedure

-t Survcv II: lo interview and give questions [o 50 enterprises (t)f which

30 enterprises participating in 1-customs procedure and 20 enterprises performing traditional customs procedure)

From the ihetMVtical minlcl and actual data ctWIecled through methods ol' sociological survev this essav has used statistical methods, methods o\'

ana IV sis comparison and summarization in a s\stcmatic scientific and

practical wav based on the data collected lo f^ir the siudv

Handbook on inijtaci cvalualion -Quantitative methods and practices

"lkuidbt>ok on rianninL: Monitoring and Fvaliiating for l)cvck>pmcnl Results

economic integration However, this thesis studies from economic angle, so it docs not discuss issues of customs innovation

c) Nguyen Cong Hinh Research on proposal of E-Customs management model This topic decribes from the general research on management of E-

customs the role of information systems in E-customs management: give

recommendations and steps to build a model o\' E-customs, focus on

researching appfieation of information lechnoloev in oruanizational management and management of customs operations and other refaled works,

fhrough an overview of these topics, it shows thai: these studies have mentioned I'-eustoms procedure in the prt)cess of international economic integration, in reforms for customs modernization 1 lowev er to assess the role

and impact ol 1.-customs procedure in Vietnam on customs authorities and export-import enterprises, there has not been anv one Therefore v\e selected tt)pic: "Impact of implementation ol I -customs procedure in X'ietnam on customs authorities and export-import enterprises" lo analv/e an overview of 1-customs procedure being used in X'iclnam: benellls Ixom the appliealu>n of

the procedure lor bolli customs authorities and enterprises: inadequacies and problems in implementalion of F-customs prticedure: the studv will plav a part to give a suggetion to managers, leaders, goveriinieni and export-import enterprises

E2 I'urposc and (|iiosi()iis:

Summarize genei'al know ledge about F-customs procedure: roles and ct)iulilions for building up and development o i l -customs procedure: Studv and evaluate the current status of t.-customs procedure being implemented in customs authorities: legal basis, eond iliims for implementation,

implementalion process, the positive aspects o\ l:-cusioms procedure Ci^mpared with the traditional one under perspective of management: Stud>

and evaluate the current status of I -customs procedure being implemented in

export-import enterprises: benefits gained and difficulties arising, the impact

of the implementation of E-customs on customs acliviiies and enterprises of import and export: Identify, select and offer solutions to development of E-customs procedure in both customs authorities and import-export enterprises Thus, the questions for this research topic include:

a) What is E-customs procedure? The role of E-customs procedure? Advantages of l-customs procedure compared to traditional customs procedure?

b) 1 he benefits from the implementation of F-eusloms procedure for customs authorities and import / export enterprises?

c) The inadequacies, difficulties and problems enterprises and customs authorities have to face in the implementation of F.-customs procedure?

d) 'Ihe positive and negative effects in the implementation of l customs for both customs authorities and enterprises?

E3 Scientillc and practical significance of the research:

Ihis cssav offers the results from evaluation and analvsis of the current status

of the implementation of l{-customs procedure: the positive aspects and

shortcomings of the implementation of f.-customs procedure in \ ictnam its impacts on customs authorities and imptMl-e\porl enterprises applving 1-customs procedure

The stud\' is also a useful source of reference for learners, students who studv li-eustoms procedure in particular and customs procedure in general fhis essav also prtn ides useful comments and positive contribution lor

poliev makers, central ministrv agencies lo the completion of policies, to

manaue and control macrocconomv lo build and improve rules of l:-customs

procedure in Vietnam in this context of globalization and international

integration

1.4 Method

This essay selected the book: Handbook on impact evaluation

-Quantitative methods and practices of the author: Shahidur R Khandker,

Gayatri B K o o l w a l , Hussain A Samad" and the book: Handbook on Planning M o n i t o r i n g and Evaluating for Development Results - United Nations Development Programme (2009) to study the impact o f implementation o f e-customs procedure

-This essay was based on books, documents, iheorv and models o f

electronic clearance of some countries, as well as data collected from the General Department o f Customs I^rovinciaf and Municipal Departments of

Customs a p p l y i n g l - c u s t o m s procedure: the magazines of: Financial

Informatics Research on Customs Customs Press and web pages

- Through t w o surveys o f local customs departments implemented customs procedure and some import-export enterprises

F-+ Survcv I: To interview 6 people in local Customs Departments that have been implemented 1 customs procedure

-^ Survcv I I : l o interview and give L|ueslions [o so enterprises ( o f which

30 enterprises participating in I -customs procedure and 20 enterprises

p e r f o r m i n g traditionaf customs procedure)

From the theoretical model and actual data collected through methods of sociological survey, this essav has used statistical methods, methods of

analvsis comparison and summarization in a systematic, scientillc and

practical wav leased on the data collected to for the studv

' Handbook on impact evaluation - (,)uaniilali\c methods and practices

''llandliook on IManninu Monitorinu and Ivaiuating for I)e\ek>pmcnl Results

Interview f(»r data process

Analvsis and evaluatu)n

Impact ot" implcmcniatio

of l:-customs procedure

on customs authorities ar expon-import enterprise

Fr'urc I: Research process

1.5 iMaterial

A variety of sources have been used in order to answer the research

question of this essay When tr\ing to Find out the possibfe sources of

Vietnams customs's reforming and mordernization surroundings, the

database Experiences of customs mordernization on some countries has been

useful A selection of books and articles regarding \'ielnam reforming of National administrative and Vietnam customs" reform and mordernization have been equallv useful

Ilandhook on im/Htct cvcducition - Onantitative methods and practices: Handbook on Planning, Monitoring and Evaluating for Development Results

are two books which have been used to make iheorelical framwork for analvzing impact of implementation of 1 -customs

Other reports lo concern summing up 5 vcars ( 20()s-2010j implementing F-cusloms procedure and report to concern summing up in vcars ( 2001-2010) of refi>rming National administrative in X'ietnam have however, also

been useful, the regulations ctf \^ietnam customs and h(wv to do the customs

procedures such as: Vietnam customs law I- transactions Faw law on I'Aport fax and Import lax and others circulars, dicitions promulgated bv Vietnam National assemblv and govement arc useful in making F-cusloms

pr^K-edurc process Ihc miormalion extracted from the website: wto.com, WCO.com, cifstoins.gov.vn are supplemented good ideas on customs reform

and morderni/ation

1.6 Scope and demarcations

Fhc following analvsis of the impact of implementing F-customs piH>cedure on cusliMiis authorities and import-export enlcrpriscs is dev ided

into loui' sections or four chapters:

Chapter 2: Iheoretical framework lor analv/ing impact of implemental

I -customs procedure on eusloms authorities and export-import enterprises

ion o

\z

Chapter 3: Analysis of E- customs procedure as model - Impact of implementing F-customs procedure on customs authorities and enterprises Chapter 4: Analysis of implementing E-customs procedure in Flai Phong Customs through the surv e\ results of import and export enterprises and the implementation of E-customs procedure at I lai Phong Customs Some recommendalions lor policy makers and managers of customs authorities in order to successfullv implement l>customs procedure in Vietnam: Some recommendations lor enterprises to get the best benefits brought from 1:-customs procedure

Chapter 5: Conclusion Recommendations for further studv

CHAPTER 2 THEORETICAL FRAMEWORK FOR ANAL\ ZENC IMPACT OF

IMPLEMENTATION OF E-CUSTOMS PROCEDURE

ON CUSTOMS AUTHORITIES AM) EXPORT-IMPORT

ENTERPRISES

2.1 Definition and characteristics of E-customs procedure:

2.I.L Definition of E-customs procedure:

E-cusloms procedure is a eusloms procedure in which the customs decfaration, receipt, handling customs declaration informaiit)n and decision-

making are done ihrough a software program of eleclronic eusloms

declaration I:CIJS this is a tool that helps eusloms authorities and enterprises

implement process of ! -customs pr(K-ediiie I he business onlv need io install

this software on then" computer, then lill in accordaing to eusloms rules such

as customs Lleclaratii>ns value declarati(M"i certillcate of origin, bills of lading,

license etc and send all the information on the electronic declarations and

other electronic custonis documents to Sub-Department of" l.-C usloms then eleclronic data processing svstem will automaticalIv receive and send

nolillcation of guidelines for custv)ms procedure back to the business, ihe

enterprises will receive this information from customs authi^rilics such a^: the declaration has been accepted or not number of deelaralion imKie of customs clearance, tax notices, etc After receiving this information, the business will lake next steps in aeet>rdance with its procedure

^ Circular No 222/2009 I l - i n c dated 2^ I ! 200^> pronuilgaled b\ the Ministrv of Finance guiding F-customs procedures as model, chapter 1

Doanh nijhiep

Doanh nghtep

Hdi '3udn

TpHCM

Figure 2: Principal of E-customs connection

2.1.2 Characteristics oi E-customs procedures:

a) Customs procedures are made bv electronic means through an electronic data pixicessing system of customs aulhorilv:

h) F-customs papers ensure the integritv with a standard formal and legal

V alue as CUSUMUS dossiers

c) Ihe customs declarant will base on his her c^Miiputer svstem to creale

information for eusloms declaraiii>n and make customs decfaration transmission bv electronic means lo the customs authoritv ihrough an organization for transferring and receiv ing electronic vouchers, in which

he she can declare on his her own, do self-assessment and self-pavnient of

laxes and other revenues; applv metlmd of month Iv pavmenl forcust(nns fees

13

Ihe declarant shall take responsibilitv for the content of their customs

declaration

d) I o participate in F-customs procedures, it is obligatorv for enierprises

to make registration and receive admission from customs authoritv lo participate in I'-eustoms procedures, then issued a password for access to the

system, connect network computers with Customs or using ihe services of

agents to clear l customs procedures

e) Ihe eusloms authoritv will implemenl customs procedures on ihe basis of i:-customs papers sent to ihen handle and classifv kinds of goods,

and make a decision on forms of inspection ihrough an automatic svstem ol

eleclronic data processing on the basis of analvsis information processing, with three forms:

- Accept customs clearance on the basis t)f cusU)ms declaration (green (low), the declarant him herself prints the declaratit)n with his her signature and seal, bring it to Border Customs Superv isors for clearance of"goods :

- Check paper documents of customs dossier before clearance (\clKn\ llow ) the declarant will |"»resent the declai'alion printed v\iih other documents t)f the di>ssier at the !Vi|uest olthe customs auUiorities:

- Check paper documents and actual status of gotids before clearance

(red flow), the declarant comes to present the declaration printed with other

documents at the request of [he customs authorities, lo produce the goods tor

the Border Customs Sub-l)epartemcnt lor their decision on clerance based

according lo eleclronic dossier declared bv the busine^^ enterprises; then decide the customs inspection based on results from analvsis ol information

from the database of customs authoritv and other sources of information

fl I he post-clearance inspection made bv the F-Cusloms

Sub-Department on the basis of analv/mg and processing information from ihe

database, paper documents of customs dossier and other information of other

professional bodies of the agcncv organi/alii>n individuals and customs of

10

-other countries Synthetic sources\

2.2 Process of E-customs procedure

2.2.1 For customs officials:

Step 1: Freliminar> examination, and registration for F-customs declaration includes the following tasks:

- Ivxamine the conditions of declaration regislralion

- Fxamine name, unit of measures, codes of goods

- Makes sure the adequacv of all criteria on the F;-customs declaration

II the information declared are sufllcient and appropriate, the regislralion for

1 -customs declaration is allowed, to update the examination results into the

svstem for issue of registration number and classification of declaration

Where the information declared is not compliant with regulatii)ns ihe customs official will check through a svstem inslruclmg the declarant lo adiust accordiniilv or refuse their reaistration with sendine a reason of "Notice

of I -customs declaration refusal" to the enterprise

Step 2: examination td'eusioms papers includes the lollowing:

- Examine customs dossiers I xamine taxable valuation (if anv)

- If the declaration is satistled to the customs regulation, [o decide "customs clearance" bv doing on the svslem oi* lo print "Note of customs dossiers"

- In case ol phvsical inspection of gvuids to update whal has exami/ed lo svstem then transfer ibe CUSUMUS dossiers to step ? lor perlormance

Step 3; Phvsical inspections of goods shall be conducted bv customs olficers

to delermine the aceuraev and sufticiencv of descriptions of goods in order to determine the customs valuation W hen inspectuM-i results are in accordance with the customs reguhitii^n the customs officer are pemittcd to decide -custimis clearance" or make a proposal lo chief customs lo delermine

"circular No 222/2009rFf-B fC dated 25/|l 2009 oflhe Ministrv of Finance guiding

E-customs pioLcdiiivs as model, p^

- I /

"Release goods'' ^Transport goods into ihe owner's storage" In case of

rcciuirement to re-conlirm customs valuation, the F-customs declaration is

2.2.2 For customs declarants

Step 1: The declarants including: Ihe owner of import and export goods; An

agent authorized b> the owner and customs agcncv will make information for

the i;-customs declaration, value declarations on the svslem of F-cusloms

decfaration in accordance with the criteria and standard formal prescribed and

be responsible for the contents of the declaration

Step 2: Send the F-customs declaratitm to custt)ms aullnMatv

Step 3: Receive feedback oflhe customs auUKM'itv and follow instructions

including:

' (iet "Notice of I- customs deelaralion refusal" and made the

amendment, supplement lor the l-cusloms declaration under guidance of

customs authoril} Resubmii the cusuims authoritv alter amendmenting and

supplementing

^ (ict "decision on checking form and level" "(iuidance for I.-customs

procedures"

Step 4: Produce the 1-customs declaration then sign, seal and subject lo

customs oflieer at border gate for customs clearance or release goods oul of

custt)ms suj^erv ision area or transport goods into the owner's storage

'^ [decision No 23960!)-TCI IQ dated 9 12 2009 issued bv the Cusloms General Director '

on promulualinu the process oi' CUSIOIHN procedures lor export imporl goods

iniplenieniini: j l-cusloms procedures, p6.7, |

'"Decision No 2396'Q1> ! CI \Q dated 9 !22{){)9 issued bv the Customs General Direclor

on pioimilizaling tlic process o\' cusionis procedure^ lor e\pori import goods

miplcnicnling

F- cusloms procedures, p 8.9

IX

-E-CUSTOMS PROCEDL RE PROCESS

: Send Ihc inforniiition to customs

"Notice of refusal of F-custums

a n K i i d n i c n t s and s u | ) p l c n u ' n t \

w

Step 1: Examine and ^ive number

to F-eu\toms declaration

i

' r

Step 2 : examine in details

Or release lioods oat of customs zone

Or transport i^oods into owner's storage

2,3 Conditions for the implementation and dc\clopment of E-customs procedure:

2,3.1 For Customs Department implementing E-customs procedure:

I-irsliv Ihe Cusloins Aulhorilv should make a sel of erileria of risk

managemeni lor implemenialion of risk managemcnl lechniques and cnlei-prises elassilicalion It is required lo have a dala nianagemenl eenler lo use svslem ol dala eolleclion managemeni and analvsis lo serve customs

activilics make sure a good inlraslruelure of inrt)rmaiion leehnologv lor

implemcnling I> customs clearance"

Ihe Customs should be equipped wiih mechanical svslems modern equipmenl lor cusloms inspeelion and supei'v ision such as conlainer scanners, eleclronic scales, surveillance camera svslems mrraslruclure ele

as well as soonesl lo foinui Cusloms inloiniation et>llecliiMi unil lo prevent

someones from smuggling and eommilling lax fraud

CusU)ms agencies including suh-depailmenl K)cal deparlmenls and ihe I'nils under general eusliMns deparliiienl are slriellv rec|uired lo follow the regulalions on managemeni t>l operaling and using I -customs dala processing svslem lo ensure that the svstem is managed and opei"aled eontiiuu>usl_v 24

hours a dav as prescrihed bv the (ieneral Depai'lmeni of Cusloms In ease of

problem, prompllv inform subjeels lo the svslem operalors cuul lo enierprises parlicipaling in I -eusloms pi-oeeduivs ilien it^ be permiled lo operale svslem slandbv "

2.3.2 For ( ustoms Sub-Deparlmcnt implementing E-ciistoms procedure:

To earrv oul dailv works bv CUSUMUS officials as follow: Checking, reeev inu and iransferim: data lo the Dala and Informalion leehnologv

Cenler - Ciisitims Depai'lmeni; \o download u|Hkiied dala li'om ihe Dala and

"FU^porl on siiinining up ^ vcars lo iniplciiicnt | ciisloms procedure ( 2005-2010), pl2 ' • \ i r c u l a r No 222 200') f ! - B K d.itcd 25 1 I 2()0'KMlhe \linistr\ of linance guidinu 1 cusloms procedures as model, pi4

Ihe Informalion Technology Cenler including: list of enterprires which are coercive noi lo do cusloms procedures Lisi of enierprires which are violated cusloms rcgulalion, list of goods reslricllv lo be exported or imported: tariff elassilicalion list of goods subject lo lax before customs clearance

fhc system operator in Cusloms Sub-Deparlmeni lo do ihe works as follow:

lo make ihe decenlrali/alion list ol'slaff sujecled U) chief cusloms lo bear slalfs usernames and lo do icchnical works lo ensure ihal ihe svslem operating conlinuosly

lo make a report each lO-dav period and send lo the Cusloms

Deparlmenl where implemented and ihe (ieneral Deparlmeni t)f Cusloms Ihe report consists of how l>cusloms procedure has been implemented and carried, wluil is the v iolalion of cusloms legislalion how the process of I

cusloms has been ilone how much goods have been cleared bv eusloms

ollicers and ihe last w hat are v(nir opinions lo implemenl I -cusloms procedure beller

2.3.3 F or Dala and Inrormalion I echnolotiv ( enlers under ( ustoms Department implement in" F.-customs ()rocedure:

lo ensure ihal dalabases svslem oiteraling in continuous 24 hours a dav lo

save and cheek the dailv K^g oflhe svstem: lo dmvnload updale of versions of

ECUS and updale anli-v irus soflware

To earrv oul dailv works by customs officials as follow: Checking, recev ing and iransfering dala lo ihe Dala and Informalion leehnologv Cenler under

general Customs Deparimeiil: lo download updated dvila including: lisl of enierprires which are coercive noi lo do eusloms procedures, lisl of

enierprires which are v lolaied cusloms rcgulalion lisl of goods reslricllv lo be

exporled ov imporled: larilT elassilicalion lisl of gi>ods subjeel lo lax before

cusloms clearance

2 3.4 For Enterprises:

a) lo equip wiih compulers lo be connecled iniernel: ADSI 1 eased fine ;

Minimum PC C P U : Pentum 4 R A M : 256 M B H D D : 1GB Free; operating system from Windows X P or higher

b) To download Iree l-CUS soliwarc to be run on iheir eomputers

c) To ensure that the s t a l l is learned hou to use I X L ' S and understand

H-customs procedure

d) i o keep eustoms papers, books, vouehers and other doeuments relating to

export and import goods which ha\c been cleared within 5 years, from the dale o! regislralion o f cusloms declarations: produce documents pro\ ide

i n l o r m a t i o n and r e l c \ a n l documcnls when ihc customs deparlmenl requires

as prescribed (including in paper form and electronic form)

e) Arrange slaff to sUid\ shorl-lerm training courses on cusloms procedures eusloms agents in Vietnam Customs School

2.4 I h c hasie diflerciices between traditional customs and K-customs procedures :

I he l)asic dirferenees belween tradiJionai customs

and F-eustonis |)rocednres

KcLiLiired lo fill in fixed forms

C\>llccl \ ouehers

Cusloms declaranl direcll) submil deelaralion lo cusUMiis ofllcer^

Declaranl can send informalion \ ia nelwork to eleclronic informalion SNslems o f cusloms aulhorilies

to

amend

be and consisienc) of ihe declared conlenl

Amcnimenls arc direct!) done by usuing ' F C U S then show whal must be conlinuosK done

Ihe declaranls are required lo present at customs ofllce

The eusloms officers direclK uuide ihe declaranls how lo do the eusloms procedures

Transform inn and reccixine messaee bv inlemel 1 he declaranls follow what messaec sa\ s

2.5 Existences, inadequacies, problems in F-customs |)r()eedures:

2,5.1 I<elatin<; to software proj^iams, infrastructure ec|uipnunt, transmission network;

The ( u s t o m s Department:

l"irsll\ main soflware programs ha\e noi been designed, inslalled so

eleclronic deelaralion s\ slem sluudd on\\ wovk in low aulomalic processing

level man\ slages are siill rec|uired manual inlerv eniion (selecied elassilicalion lor deelaralion owing lo insufficienl database I noi meel ihe

reL|Liiremenls [o lake procedures b\ regulalions 'I"he lack of funclions

includes:

a) I ieense ree(Mieilialion: Aulomalic warning aboul ihe goods ol

high-risk; Informalion on lax grace: Self-check and respond lo an\ unreasonable: Two-wax exchange of informalion belween eusloms and enierprises; Sell-

eode<\ li^i of impori e\pori goods lo disiinguish seleei auiomalicallx:

lniei:raled name of elassifiealion customs oflieials for enierprises for contact

when laking procedures: \uiomalicallx noiifx enierprises ihe tots of

shipmenls close lo lax paxmcnl fees, documcnls: I pdaled results o f l h e

assessment, analysis and classification, and violations handling; Repair, adjust

to every- detail ol commodities;

b) Process the late payment or no payment; Directlx print receipts; Delete

i n f o r m a l i o n o f requiring assessment in case o f errors or mistakes: Monitor the debt documents from customs records: Monitor declarations, tax xaluation: Rccogni/e handling operations o f post-clearance inspection process, risk managemeni : l i l l ihe present, there is no soflware o f 02 Post-clearance inspection team and Collection, information processing, risk management & Customs ConU\)l

Sceondlx many software (functional) programs have been designed, installed bul incomplele insulticiene> causing difllcullx m handling procedures, such as:

a) Not superv ise the ease w hich main assessment requires on a got)d; No

parls lo record ihe lesl results on ihe eorreel deelaralion: \ o pari for guiding

eusloms procedures for eommodiles be elassilied on blue: Risk managemeni

lunclit)n is less aj^propriale and eiMnplele than ihe risk managemeni program which is applving in iradilional erafi line, causing unfavorable problems for goods laking e-eusloms procedures; Not updated report eerlilicalcs records o f adminislralive vit>lalions in ihe form o f primed: \ o i f u l b updale ilie agcncv,

w l u i signed C ( ) : Characters fi>r the declaration iW export declarations on the deelaralion aiul ihe bill of lading is loo narrow: Oulpiil 'Ncelion of tables,

figures lo serve ihe slalislical reports mav not have manv uiiliiies;

b) I ) i f l i e u l l lo handle and v crifv on ihe s) siem in ihe case of

eommodilies in accordance w i i h ihe regulalions are settled lo bring about empt)rarv slorage awaiting for the resulls o f assessment and inspection form

e facUMv: 1 here are no sel erileria for ihe whole industrv lor risk model

applied U) e-cusloms clearance: Informalion from lax accounting program 55*^)

l\ 1 risk nuinaLiemenl web has not vel been inlegraled inlo the eleclronic deelaralion svslem so cheeking dala declaralions information on observance

1

111

of cusloms legislalion of the enterprises remains to be done bx manual

methods

Ihirdlv Ihe system has not yet been integrated, leads to the fact that an olliccr has to use multiple programs at once in the process of cusloms procedures, meanwhile the local network can not solve the problem of focus treatment as well as operational data at the scale o f l h e provinces, cities cusloms speed shared applications on the local nelwork is usuallv slow

1 inks, application sharing between the local nelwork connection are at a low speed, transmission qualily is not stable in manv places, affect lo the dala processing which needs continuilv and focus, making it dilficull lo conneci exchange dala w iih enierprises

I'ourlhlv facilitx and equipmenl to ensure ihe operation oflhe svstem

are not fullx sx nchroni/ed: WAN operating svslem is not stable because no

backup system and backup dala lo ihe concerned deparlmenls sti when ihe main iransmission has problem, the svstem is deaclivaled: When operation, the sxslem often has warn slaliis: inlegralion belween the applicalion software

has regularlv been lepealed problems, opcraiion noi eonnccl \o server and

enler ihe managemeni soflware overeoming is noi absoluie: W hen

enierprises suggest to cancel the deelaralion then eusloms officials ^io noi aecepl l.nlerprises can declare oihev declarations, becviusc of the fact that ihere is no warning software on ihe feus and imporl-export dala program

2.5.2 I he Enterprises:

firsilv manv enierprises where ofllces computers in areas declared l\)slal eilv niav noi alreadv implemenl online iransmission ihev have louse dial up al low speed, while the soflware program is not complete lead lo

iransmission declaralit>ns and receiving inlormation time no\ vei fast when

deelarmi! enterprises have lo wait lo receive informalii>n lo go U) work again Manv eases lo oblain feedback lor ihe 01 customs declarations and enterprises have lo locus and coordinate li^ implement for 3 - ^ hours, after classification

enierprises have to wait for printing documents, lakes a lot o f time

Second Iv when enterprise declares section o f mandator without a tax code, thex are unable to declare There is no guide for mandator enterprises:

Some cases, enierprises do not receive a notice of customs fees on the

nelwork in order to determine the exact amount o f fees to be paid

I h i r d l x as regulations, Enterprises can declare before the ships arrive, bul on the lime o f declaring Enterprises do not know about name o f l h e port

w h i c h the ships w i l l arrive, so thex can not declare name oft the Sub-eate Cusloms therefore, ihev can noi declare;

1-ourthlv the erileria on the e-cusloms declaration arc inadequate, inappropriate w i t h the practice, include: can not declare when pavmenl bv

combined method, can not declare the sales eommodilies price-cutting, compensation, discounts commodities: Can noi declare name, address o f l h e exporter bv SIKMI deelaralion section: Item "number of packages" is not designed a lull range o f packaging: Item weight mav luu idcntilv the tvpc of weight: ihere is no pari for eonllrming temporarilv leasing commodity,

ct)nmK)dilx inspected al store: Can not declare the number t>f conlainer lead

number of export ct)mmoLlit} I lav c to make a sub-declaration if the shipment

on electronic deckiration

S i \ l h l > man\ enlcrpriscs do not rcall\ b c l i c \ c in c-customs declaration

h) the Tact that the network has not reall\ sure, often has problems, the

software has many inadequate and incomplete problems, so declare lime receive feedback, clearance lake a lot o f lime: Some enierprises are affected negalivcl\ b> the information from pre\ious declarant, there is comparison worried aboul the customs clearance delaxs (e.speciall\ where clearance point has no computer networking), worrx aboul the s\stem's securil) is not high, lose information e a s i l \ , therefore lhe\ do noi want lo chantie ihe \ \ a \ lo declare I h i s is one t)l ihc reasons whx man> enterprises have been certified eligible lo participate in eleclronic clearance but not participating in ihe declaration, manv enterprises a I lei' some shipments laking e-cusU)ms

procedures return traditional ^me

Seventh Iv manv enierprises hesitate to innovate, re-arrange staff,

computer equipments to parlieipale in e-cusioms; Some o f ihem do not wanl

lo lake e-cusionis because ihev have alieadv j-cni a unit to make service, they

do not wanl lo change

l i g h l h l v I nlerprises are noi required bv legal basis lo lake eleclronic

declaration, should there is a situation '"like then do, no like than not do"

Mosi |"»:irlieipants of e-customs priK^edin'Cs are now small and medium

enterprises so eleclronic deelaralion ma) noi imperative lor them, ihev still

lake ••dual", applv boih e-eusloms deelaralion :ind |\iper record

deelar:ition-Need lo h:i\e meelKiniMiis addiluMial regulalicMis lo enei)urage enlcrpriscs lo

|Xirliei[xite in e-eusu>ms priK'cdures

2.5.3 Services Su|)plitM-s: ( W A N / Custonis are c u r r e n t l y usin*: software of

Thiii Son e o n i p n i e r s o f l w a r e Co., i J d -a component companx of FPT

I irsllv ihere is still frequent status ihal I nter)^rises declare dale,

eomputers ol eusloms show thai ihe declaralions have been numbered, bul computers ( T enterprises nolifv transmissicMi errors: When enierprises declare auain ihe svslem aeceins to give another number o f l h e declaration or informs

that the declaration data are not accepted because the> are identical to the declaration vvhieh is gixen number <,n the s>stem many declarations with numbers on the system bul have no data on the i;Cl'S soflware ol enterprises.: Manx declarations were declared, pushed data, ihe s>siem has present mformalion data lo VAN h(,wexer data can not enter to computers of customs

Secondlv manv cases that when enierprises declare, ihc system nofiiies

an error connection from VAN when enterprises log in the web of WW

http:://vvs.VAN.com.vn it also nolilles an error though enterprises can log in

iniernel Many times, nelwork to VAN often has problems, handling part of

Van can onlv guide enierprises lo handle bv phone Customs and I nterprises can not self-repair, enterprises turn to lake manual procedures

Iliiidlv uniil now ihere is no specific allocation t)f responsibilities between VAN service providers I nlerprises and Customs in data lransmissit>n o\' eleclronic customs declaralit)n so il should noi be binding legal liabiliiv of

VAN when arising problems or disputes

2.5.4 Relaling to mechanism, policies and professional lechnicpies:

I-irsllv Svslem of stale management policies on customs inni)vales

slowly, not alreadv keep pace with ihe rec|uiivments of economic, social development and inlernalu>nal inlcgration Sxslem lt)r customs procedures is

inadec|iiale not sv nehroni/eil son^e dt^eiimenls issued lo solve situation, do

not measured problems arising in ihe implementation process, especiallv there are some dttcumenls guiding Cusloms faw and guiding implementation which are low implemenied: C(>nienls (>f some dt>eiiments relating lo cusloms

activities also eoniradietoiy overlapping, some documents have not vet been built and promulgated according to plan: review and assessment the realilx of customs legislation system and internal laws of ihe eommilments,

internalional standards is slow

Secondlv Althouizh the eleclronic iransaclion laws have provisions on

Z5

-digital signatures, but have not been applied to electronic commerce and cusloms procedures, whereas the use of digital signatures are helpful and convenient for many enterprises: not haxe to directlx sign and seal on the electronic customs declarations, instead, applv digital signatures in enterprises, transfer dala lo cusloms offices

e-Ihirdlv risk managemeni sxstem of cusloms deparlmenl has not xel built a full assessment criteria, not update new informalii)n resulting the rate

on classification of declarations into xellow red elassilicalion quite high, enierprises turn to lake iradilional customs procedures

CHAPTER 3 ANALYSIS O F THE PILOT PROCESS OF E- CLSTO.MS

P R O C E D U R E - IMPACT OF IVIPLEMENTINC E-CLSTOMS

P R O C E D U R E ON CUSTOMS AUTHORITIES AND ENTERPRISES

Alter more than fne \ears of pilot deplo\ of 1 -Customs model from two Cusloms Departments wiih a large goods Hows as I lai I'hong cil\ and No Chi Minh citN Customs operations ha\e been graduall\ reformed in accordance with standards of modern Cusloms in llie region and worldwide, changing from manual Customs procedures into I -Cusloms procedures: I he pilot appl\

ol l-.-Customs procedures was planned b_\ Cusloms as per ilineiar\ both earr\ing oul aiul imprcw ing to suit ihe situation Thus, durini: ihe lirsl staue l,>Ciistoms procedures shall be carried out as per lollowing crilerions:

firsll) the applied subjects are enteiprises selecied on the basis of v\cll eompiv ing wiih Customs law with large import-export lurnovcr volunlarilv parlicipaling in and being aceepled bv Cusloms office

Secondlv import •M]d e\po!i iv pc pilot-applied v\ iih I -Cusloms jM'ocedures to 3 II of ivpes are export and impi)ri goods as per sale and

purchase contract: impt^rt and expi>rt gi)i>ds is in pr(KX'ssing contract vviih foreign traders or processed in foreign ctuintries; import and export goods is

in the form of importing raw matei'ials lor manufacturing export products and

a manaaemenl svslem i>f imporl and export eoods bx izaie transfer:

Ihirdlv f-Cusloms clearance UKHICI IS an independent model v>l Customs Sub-Deparimeni wiihoiii anv connection v\iih other Customs Sub-Departments

f.-I\>urlhlv eleelroniei/ation ctMilenl includes:

a) Declare and receive informati(Mi via eleclronic means: Ihe whole process

of declaralions receipt and feedback of Customs declaration shall be carried oul lhroiii:h ihe added value transmission services supplier in the iransaclion

- M)

of l:-Cusloms (C-VAN);

b) The Customs dossier based on electronic documents: Customs declaration

is in eleetroniei/alion and its x alue as a declaration on paper, other documents

are in eleetroniei/alion via a form of converting paper documcnls inlo

electronic information and make declaration to Cusloms office (in accordance with the faw on eleclronic transactions)

e) Handle information of Customs declaration auiomalicallx: Have checked legallv in eoiilt)rmil) with declared inlormation: Have checked and warned the policx of goods to 47 63 of goods managed under each major announced

bx the Ministries and branches, standardized according to IIS c(>de: However

most of standardi/ed these just stand at 4-digil IIS level, even some g(Kxls of 2-diait IIS: the remain of 16 63 of items of uoods have not been standardized

b) Ministries and branches: Have checked and comixircd the information declared on I -Customs declaration Itnins wiih the documents of I -Customs dosier such as Cerlificate ofOrigin - C O licenses Commercial Invoice ; Have checked and compared declared informatit>n with i\\|uiremenls of each

Cusloms maiumemenl svslem (such as processing impt)rting ior export

production)

fifth, applving modern management method: the management method is

applied base on risk managemeni lechmque lo assess compliance and goods

classification as per risk managemeni enlerion and compliance record ot

enterprise instead of eonirolling each \mpoy\ and e\pon transactions included

as: AppiN erileria c^f risk management and compliance record i^f enierpnse in cheeking ckissificalion to serve goods clearance: Have buill up a eompliiuice record lo enierprises parlicipaling in I -Cusloms pciK-edures and applied lo the

sNslein; Appl> uileria oi' risk managemeni and compliance record o\'

enierprises in determining specillc inspection rcLiuiremenls lor each regmie of

, 1 •

Customs managemeni

otal declarations of Iv-Customs

fxport-lmport lurnoxer (CSI)

million) The staff inchargc of r.-customs to be

compared w iih total

1 lai Phonu

2007

73 5.146 462.16

2008

71 9.509 837.6:

2009

495 24.296 4^^2.44

Percentage of F.-Customs

Declaralions to be compared with

lolal

Percentage o\ I urin)\cr achie\ed \ ia

I -Customs lo be compared w illi

•"• Limitation in tlie pilot deploys process of E-Cuslom procedure:

I-irsiK l-cusloni deelaralion m.ulel is buiU up and operated iiKlepeiKienll\ m

a Sub-1 )epailmeiu w ilh.nil loial-connecling w iih the other custom

managemeni program of dala processing entire sNstem should ha\ e a

reslnclion ofCusloms exchange between subdeparlments appl> ing I

-Cusloms pr.Kcdures and those which <\o not \el

SecoiKlh Ihe aulomaliealh level of l-CusU^ms dala processing system has noi lulh peilormed all stages in the process of making clearance decision, it

,s necessarv lo be pailicipaled o\- Customs ofllcials in ihe conlrol of

cominodil) policx la\ ramili cation, lax reimbursemenl

, i , d h I -Customs procedures, however, has brought much economic

^^Reran on unwun^ up 5 rears ,o in,rlcn,cnrl^-u.,onn,m.caurc , 2005^0,

51 '

benefit for participants bul eleetroniei/alion level is not as iniliallv expected Currentlx just makes eleelronici/ation the documents o f C u s l o m s authorities, whereas those under management o f other sections such as I,icenses o f Ministries and Departments Certificate o f (Jrigin Payment Note to Treasurx (lax payment xouchers): C^ualitx checking registration (animal and plant quaranline food safetx ) are not made clectronici/atiiMi leading lo eleclronic

records is pailiallx performed onix resulting incapacilx of expressing 1

-Cusloms procedure's true nature

3 1 I m p a c t o f E - C u s t o m s i m p l e m e n t a t i o n on Customs authorities

i / / Positive impact:

birsllv a model of f - C u s l o m s procedures sxslem has been buill up wiih

smooth t)peialion v\ hich confirms a new management mellnKl acluallx

i n i l l i n g into practice bringing aboul the initial ellecls during the work ol administrative reform o f l h e Customs in particular and State administration in acneral;

S e c o n d h il helps Cusloms a u l h l i l i e s change from control o\' each consiunmenl inlo manageinenl o\' all iiiloinialion during import and export

opeiation o f enlerprisc: from iransacliini managemeni to business maiumemenl earrv ing oul risk iiianagemenl Customs deelaralion and

inlormation on I -Customs deelaralum which basicallv complies with the

standards o f C u s l o m s declaration and standard dala sel o f l h e World Customs

O r g a n i / a l i o n ( W C O Dala Sel 2.0) from paper-handling lo computer processor helping slrengthen anti-smuggling, trade fraud and m i n i m i / e lax

loss;

T h i r d l v il brings about economic benelli lo both Customs and enlerpnscs bv saving l i m e , manpower and expenses when implementing Cusloms

procedures bv cleelnMiic melhcKis (clearance lime for g(H)ds in aspect o^

"Rc/'orl on sinnmni^: up > vcor^ "> nnpUincni A-c n^u.,,,^ / nl>2Ul(h

- J J

exempting from Cusloms inspection is 5-10 minutes, for those subjected to record inspection is 20-30 minutes, for those lo rcalitx inspection is depend on the lime o f goods inspection):

l o u r t h l x the Cusloms declaration has been complelelx clecironiei/ation: other doeuments o f Customs dossier is in eleetroniei/alion on the chaneina basis from paper doeuments to electronic ones:

I'ifthlx I.-Cusloms procedures for three txpes o f procedures and one regime

o f Cusloms management (imporl-export goods under purchase contract, processed goods, goods imporled for export production and goods lo gate transler) have well operated in ihe piioi process, and readv for expansion

Sixlhlv, it helps increase working producliv itv: w iih 1-Custt)ms pn>cedures a manpower can earrv oul al the same lime multiple sieps in prolessional process, a staff can sinuillaneouslv perliirm Customs procedure lor many consignments in different places:

Seventhlv il helps increase management eiriciencx: iniliallx convert Customs management melhod fri>m manual lo modern, from transactiiMi managemeni

[o enterprise management with applving risk managemeni: from manual

handlimz on paper lo computer processor, creates a modern and c i v i l i / e d

w o r k i n g six le

l-.iuhth it helps increase prestige o f Customs as a pioneer leading in relorming administrative procedures and applving informalion leehnologv: improve

imaue of Customs officials from ihe view of enlcrpriscs due lo a l i m i l ol

direct Ci>ntael belween the two siibieets:

N i n l h l x , it helps create a new recognition m interior Customs on new

methods, a f l l r m the superiorilx of l - C i i s l o m s procedures which is the

indispensable trend o f C u s l o m s : and C usioms ofllcials are required lo belter ihemselves lo 111 new siiualion

l e n l h l x 11 meets guidance viewpoinl of the (iovernmenl and integration

requirements: Sicp bv step reform Customs operations in line w.ih the

- J-f

standards o f modern Cusloms in the region and worldwide: transfer from

manual Customs procedure lo f.-Customs one build up a model of i:-Cusloms

m A S r A N countries, facilitate commercial activities: integrate apply o f inlormation lechnolog) lo further increase the Cusloms control and management

In addition, the expansion of 1.-Cusloms procedures helps conlributc to the

overall exaluation o f l h e current status o f administrative procedures: detect

shortcomings, therebx make settlement plans, complcie svstem of

administrative procedures in a simple and convenient wav for individuals, organizations and enterprises: creale a fundamental reform o f administrative

prt>cedures lo ensure u n i l o r m i l ) simplicilv publicitv and t)bv it>usness of

atlminisirative procedures: enhance Stale managemeni ciricicncv and promote social economic dev eK)pineni: conlributc to the tight against Ci)rruplion and waslefulness

J 1,2 iSc'f*alive impact:

birstiv | Ciisloms procedure is a breakthrough in the a^iplv of inlormatitm leehnologv reform of C ustoms proeetlures consistent w iih iniernational eommilments agreements and irealies w iih ihe participation of X'ietnam

1 herelore ihe number o f civil servants including those holding leadership positions who are not basicallv trained, w i i h an insufUcient knowledge about

i n f o r m a l i t y leehnologv and international integration have not sironglv

suj^poried o\- parlici|XUed in f.-Ciisloms pi\>cedures

Secondlv due tc^ demands on implementaluMi of l-C"usloms procedures Customs o I l i e i a K are required \o luive knowledge aboul foreign trade, law

forei^an lanL^uaees and eompuling thus Cusloms authorities should spend a fixed fund for instant training and Cuslom officials-retraining

I h i r d l v ihe Customs should spend a greal amount o f expenditure investing

c o m i n i l i n i : equipments and informalion leehnologv such as computers conlainer scanners: C usioms surveillance cameras and paving for their own

transmission line

f o u r t h l y Customs officials who are unstable for ideological stance and do not

always improve themsclxes hard may collude with ihe Cusloms declaranls to perform untruthful declaration about the name and quantil> o f goods for tax fraud

3.2 Impact of E-Customs implementation on import-export enierprises:

3.2J, Positive impact:

f i r s t l ) the enterprise can declare Customs fovm al anx location with a

computer installing software o f f-Customs procedures, iniernel connection and immediate Customs clearance to shipments cxcmpled documents inspection and goods actual inspeelion It can use I -Customs ticclaralion from sxslem o f l h e enterprise, sign and seal bv the business lo receive goods and do goods transport ck)cumenls on wavs to shipmenls exempted Irom records inspection ami exempled liom goods aclual inspeelion

Secondlv enierprises can make ihe C"usloms deelaralion al anv iime and Customs receive deckiration during working hours, have priorilv to order to

cheek the shipment must ins|uM in detail records or ^loods actual inspection

Cusloms a'jcncx pr(U ide inlormation :ibout the process ol handling Customs doeuments through f>Cusloms data processing sxslem Cusloms auenev su|-)ports iraining i-irov ides software o f f - C u s t o m s declaration, direct and lee eonsultanev Chosen lo pav fees for Customs procedures of each

f.-Cusloms declaration ov nuMithlv lee

f h i r d l v the liquiditv xeeoxd to contracts o f processing and importing raw

inaleriats lo simple export prodiielion enterprise does not have to give eleclronic doeuments llled al Customs as in formal Customs procedure Ini.H-mation belween Customs svslem and enterprise is managed svne on compulers to facilitate for lurther research, seeking information Businesses can register to earrv oul I -C-ustoms procedures al anv Customs departments and in nationNMde Kediiee time and costs o f C u s l o m s procedures and arrange