Hoàn thiện quản lý tuân thủ đối với doanh nghiệp xuất khẩu, nhập khẩu của hải quan việt nam trong bối cảnh hội nhập kinh tế quốc tế tt tieng anh

MINISTRY OF PLANNING AND INVESTMENT - MINISTRY OF EDUCATION AND TRAINING CENTRAL INSTITUTE FOR ECONOMIC MANAGEMENT BÙI THÁI QUANG COMPLETE COMPLIANCE MANAGEMENT FOR EXPORTED AND IMPORT

MINISTRY OF PLANNING AND INVESTMENT -

MINISTRY OF EDUCATION AND TRAINING

CENTRAL INSTITUTE FOR ECONOMIC MANAGEMENT

BÙI THÁI QUANG

COMPLETE COMPLIANCE MANAGEMENT FOR EXPORTED AND IMPORTED ENTERPRISES OF VIETNAM CUSTOMS IN THE CONTEXT OF INTERNATIONAL

The thesis is accomplished in:

Central Institute for Economic Management

Supervisors: Dr Nguyen Dinh Cung

Assoc.Prof Dr Hoang Tran Hau

Reviewer 1: Assoc.Prof.Dr Bui Thi Ly

Reviewer 2: Assoc.Prof.Dr Doan Ke Bon

Reviewer 3: Dr Nguyen Hong Phong

The thesis will be defended at the Ministerial Evaluation Council under Decision No.: ……, date… month… 2020 of the Director of the Central Institute for Economic Management, meeting at the Central Institute for Economic Management At hour date month year 2020

The thesis can be found at:

- The National Library

- Library of Central Institute for Economic Management

- Library of General Department of Customs

LIST OF WORKS PUBLISHED BY THE AUTHOR RELATED TO THE DISSERTATION TOPIC

1 Bui Thai Quang (2015), “Customs applying risk management and compliance management to facilitate transparent activities

of enterprises”, Customs Research Magazine, 01 February

2015, p 46-48

2 Bui Thai Quang (2015), “Discussion on annual short-term risk management strategy from experience of Japan”, Customs

Research Magazine, March 2015, p 14-16

3 Bui Thai Quang (2018), “Improving the effectiveness of compliance management”, Communist Magazine (No 382),

September 2018, p 43-45

4 Bui Thai Quang (2019), Some solutions to complete the compliance management of Vietnam Customs for import-export enterprises in the international economic integration, Journal of

the Asia Pacific Economy, No 541, May 2019, p 64-66

5 Bui Thai Quang (2019), “Compliance management for export enterprises by e-commerce mode”, Finance Magazine,

import-June 2019, p 15-16

6 Bui Thai Quang (2017) (Ed), “Volumn of 10 lectures in risk management and compliance management in customs operations, Vietnam Customs School, July 2017, 572 pages

7 Bui Thai Quang (Co-Ed) (2017), Postgraduate Curriculum on

“Risk management in customs operations”, Ho chi minh

University of Finance and Marketing, May 2015, 316 pages

in order to promote the development of domestic economy Vietnam’s economy is not an exception of that general movement pattern In our socialist-oriented market economy, imported and exported enterprises are the key force engaged in the field of import and export goods and services However, a significant number of firms are involved in big cases of laws violations, typically smuggling, trade frauds as well as illegal cross-border transportation

of goods of great value or severity Moreover, along with international economic integration, trade liberalization, an increase in value and volume of import and export goods, and the development of technology lead to the appearance of sophisticated and serious laws violations Besides, the World Customs Organizations recommends that members should apply risk management to improve companies’ compliance levels

Accordingly, "Complete compliance management for import and export

enterprises of Vietnam Customs in the international economic integration" is

the choice of researcher as the thesis’s topic in economic management major

2 Objectives and significances

a) Objectives: Based on general view, this thesis aims to analyse and

evaluate current situations and practical experiences of compliance management of goods import and export enterprises of Vietnam Customs and World Customs, then point out the issues needed to build theoretical framework, assess real situation of compliance management on import and export laws and give recommendations on directions and possible solutions on complete compliance management for import and export enterprises of Vietnam Customs in the context of international economic integration

b) Argumentative and practical significances

- Argumentative significances of the Study: By means of public study

results on compliance management of goods import and export enterprise, indicating theoretical gaps, unconsenting issues that require further research to complete compliance management in Vietnam in the context of international economic integration; Based on systematization of different views of compliance management among researchers, representing the notion of compliance management in customs context in Vietnam; Based on compliance management standard according to international practice, adding up compliance management standard for developing countries and countries are in context of international economic integration This is necessary for compliance

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management in countries whose limited development levels in context of international economic integration

- New practical contributions of the Study: Practically, based on defined

standards, in a basic of correctly analyzing and evaluating and pointing out limitations and its reasons of compliance management in Vietnam from 2014 to present, forecasts the trends and levels of compliance management of import and export enterprises, impacts of compliance management on global and domestic economic development in the context of upcoming international economic development; the study makes recommendations on possible comprehensive compliance management of Vietnam in context of international economic integration, which helps to complete compliance management in the asymptotic direction to international practices

Through research outcomes of practical laws compliance of Vietnam import and export enterprises, the study ensures the significances of customs compliance management of import and export enterprises, from that increasing the awareness of business community about the rationales and significances of law observance

- New scientific contributions of the Study: The Study makes following

scientific contributions: clarifying theoretical foundation on Customs compliance management of import and export enterprises with content of notions, rationale, affected factors as well as methodology in the close connection with state management on international trade and globalization The results of the Study are references for lecturing at universities, educational organizations in foreign trade economy and goods exportation and importation, improving customs professional competence, education of corperate governance, and developing human resources of General department of Vietnam Customs in international economic integration

3 Structures of the Study: Along with introduction, conclusion, list of

references, tables of content, the Study contains 4 chapters and 15 sections

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Chapter 1 OVERVIEW OF RESEARCHS ON COMPLIANCE MANAGEMENT

OF IMPORTED AND EXPORTED COMPANIES OF VIETNAM

CUSTOMS AND WORLD CUSTOMS 1.1 Overview of domestic and foreign published research projects

a) Overview of foreign published research projects: WCO SAFE

Framework of Standards to Secure and Facilitate Global Trade (2005) shows objectives and principles of Framework of Standard, four core components and two pillars of Framework of Standard This is considered as declaration that WCO on behalf of members to advance orientation of implementations in 21st

century World Bank’s Customs Modernization Handbook (2004) includes general important experiences and specialist’s articles of leading customs organization in the world that share customs modernization achievements of each countries and regions Asia Development Bank’s Risk Management Guidelines brings up general knowledges, primary basic about risk management that is recommended by specialists for customs organizations and business community to strongly apply new modernized management method in the Asia-Pacific region

Fischer and coworkers’s “Tax Compliance Model” (1992, 2009); Nicoleta Barbuta-Misu “Factors for Tax Compliance” (2011); Australian Customs and Border Protection Service “Customs Compliance Program” (2007 - 2008)…

b) Overview of domestic published research projects: Project

“Strenthening risk management capacity in customs profession during 2013 and 2015, vision 2020”; Nguyen Thi Le Thuy (2009) – PhD Thesis “Improving state management of tax collection to advance tax compliance, case study: Hanoi City”; Vu Ngoc Anh - scienfic subjects in customs field (2010)

“Improve affectiveness of applying risk management in professional cusoms

field”; Pham Van Phong-Master Thesis “Research on solutions to enhance laws observances of tax payer according to Tax Management Law in Hoa Binh province”; Vo Duc Chin (2011) “Factors that impacts on business’s tax compliance behaviors–Case study: Binh Dương province”

c) Issues of the Study that is not solved by published research projects

Issues that are examined and solved but need to be updated and supplemented: Compliance management is a pristine scientific category in

Vietnam and even in the world, it covers almost different fields of science and life, society, politic and academic concern Plenty of research projects are backward, need to be updated, amended, supplemented and renewed to be compatible with current legal frame and research and analysed practical experiences of the world Up to now, there is a limited number of subjects and scientific characteristic in this field

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Issues that are examined but not completely solved: there is limited

research evidence regarding the direct impacts of general compliance management and compliance management of import and export enterprises on competitive advantages of those companies and the whole country Questions yet to be answered in the literature include: Compliance management is advanced management methods, is it effective for import and export enterprises

in particular and Vietnam companies in general? What is the role of compliance management on enhancement nation’s competitive advantages and Vietnam business environment? Although there are few compliance management models for import and export enterprises, but the interactive relations with macro management activities of state organization in customs field is obstrusive

d) Issues that the Study focuses on: Predicted achievements: building

theoretical framework and modeling compliance management mechanism of customs organizations for imported and exported companies; analyzing the factors that influence compliance levels of import and export enterprises in the relations with customs organizations and specialized management organizations; analyzing and evaluating current situation of compliance management for imported and exported companies of Vietnam Customs recently; proposing directions, innovated solutions; completing legal frame and machenisim of implementing compliance management of Vietnam Customs for import and export enterprises to 2025, vision 2030

1.2 Methodology

a) Objectives: In the foundations of domestic and foreign published

research projects on compliance management of import and export enterprises, set up theoretical framework for compliance management in interntional integration Systmetically research, selectively succeed, supplement, develop in order to clarify basic theoreotical about state management of compliance levels

of import and export enterprises in international economic integration, based on compliance management of some countries in the world, conducts lessons for Vietnam; in according to international integration trends and customs international integration trends, points out directions, objectives and scientific-based recommendations and feasible solutions to comple compliance management of Vietnam Customs for import and export enterprises

b) Objects and scopes: Objects: Theoretical and practical matters of

compliance management of Vietnam Customs for imported and exported

companies in international economic integration Scopes: Laws observance of

import and export enterprises is limited within goods importations and exportations, not involved in support activities such as transportation, delivery, insurance and banking… The subject of compliance management is Vietnam Customs enforcement, from central to local authorities that consists General

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Department of Vietnam Customs, local customs deparments and all boder-gates during 2014 and 2019

c) Approchment and methodology: The research is studied in the

approachment of state management of goods importations and exportations in which Customs Authority has responsibility of guaranteeing laws observance The research approaches the laws observance behavior of import and export enterprises that is one subject in customs procedures, it is understood that customs declarants and customs officials must obey the laws and regulations The research is based on the methodology of dialectical materialism and historical materialism in research, using specific methods such as systems – the way of look at the world through systematic structure, descriptive research with statistical tools, comparison and aggregation of data; logic – logic and history; sociological surveys, direct surveys…

CHAPTER 2 THEORETICAL PRELIMINARIES ESSENTIAL FOR COMPLIANCE MANAGEMENT AMONG IMPORT AND EXPORT ENTERPRISES OF CUSTOMS IN THE CONTEXT OF INTERNATIONAL ECONOMIC

INTEGRATION 2.1 General theory of law compliance among import - export enterprises

a) Overview of import - export enterprises: Subjects governed by law compliance

management are enterprises regulated by the Law on Enterprises (2014) and have two basic characteristics: First, as a natural person / legal person with

independent legal entity, with independent rights and obligations, legal capacity and civil act capacity to participate in related economic and legal activities

Secondly, enterprises must be officially registered, have legal entities and

conduct activities for profit-generating purposes in accordance with national laws The activities of exporting and importing goods are regulated by

Commercial Law (2005; In terms of customs management, Vietnam Customs Law (2014) adjusts and divides the activities of import - export enterprises into

12 types of import - export goods, if based on import - export transactions of goods and related services, there are 6 six groups of import - export enterprises

b) Compliance, law compliance and the level of compliance of export enterprises: The contents of compliance, law compliance and the level

import-of compliance import-of import - export enterprises have been analyzed in depth, regarding both academic reasoning and practical research, to obtain the

theoretical basis for legal regulations Especially, there is in-depth analysis of law compliance according to the level of law compliance (1) fully compliant (2) almost compliant; (3) fundamentally non-compliant; and (4) non-compliant

Contrary to the compliance behavior is non-compliance behavior in export activities, also analyzed clearly in the following 4 aspects: (1)

import-6

Committing acts in violation of the provisions of the customs law, tax law in import-export activities (2) Failing to perform or improperly perform tax obligations and other obligations in import-export activities; 3) Not complying with the procedures and regulations of the customs office in the General Department of Vietnam Customs, customs inspection and supervision for import - export goods; and 4) Not cooperating or not meeting the requirements

of the customs office and other government agencies involved in import - export activities

c) Characteristics, scope and classification of law compliance for import

- export enterprises

- There are three characteristics of law compliance in import - export

activities: compulsory for enterprises, organizations and individuals engaged in import and export; adminstrative as these subjects must comply with the

provisions of law, the policy of customs management, tax management and other state administrative management for exported and imported goods and

have a dual compliance role because customs office is not only the agency that

implements the customs law, tax law, but also the agency that must comply with and adhere to the provisions of law in this field, like import - export enterprises

- Scope of law compliance in import - export activities: In terms of space,

law compliance is carried out in the customs territory and within the time

before the implementation of import – export activities until the customs clearance; and finally, after 5 years from the date of customs clearance, the

customs office has the authority to conduct post-customs clearance inspection for the lots of goods of the enterprises that have carried out import - export procedures In terms of time, law compliance is carried out in all three stages: pre-customs clearance, during customs clearance and post-customs clearance of imported and exported goods

- Classification of law compliance in import - export activities includes members directly or indirectly involved in the import - export industry in the international supply chain and the management agencies including customs officers and customs units at all levels who must comply with the implementation of the provisions of law, the processes, regulations and guidelines of the customs industry Penalties for non-compliance is also regulated in various forms by determining the level of violation (4 levels) such as: (1) the most severe level is criminal prosecution; (2) the serious level is penalties for administrative violations; (3) the less serious level, but compulsive, reminders or other administrative forms; (4) the slightest level is reminder, warning, WCO proposes 4 groups of import - export enterprises according to these levels of compliance and analyzes the characteristics of

a) Concept: As international trade increases, customs office both offers

trade facilitation and maintains goods inspection, ensuring that people and means of transport cross the border smoothly In order to achieve the balance between these two objectives, customs office must switch from the traditional method of inspecting and monitoring each import-export shipment to using the method of managing each import-export enterprise in goods supply chain That

is, in the course of business history, has the enterprise been comlying with law

or not, to what extent? Compliance management "orients" the enterprise community doing voluntary compliance (the highest level of compliance), even

"authorizes" the "best" compliant enterprises to “perform instead of" Customs

Recently, customs office has implemented "multi-tier management" through

the evaluation results of the compliance assessment of the “first-tier management", and divided into 03 groups: priority enterprises, compliant enterprises, and non-compliant enterprises, and continues to apply more criteria

to classify the risk level of "second-tier management" enterprises Results show that there are different types of risks The results of the compliance assessment

plus the classification of risk level according to types of enterprises have

resulted in the "third-tier management" giving the results goods flows

Specifically, yellow flow: goods has to be inspected for customs documents; red flow: check the actual goods in proportion or check the whole 100% of goods In this study, the author comes to the following conclusion:

"Compliance management is the customs office’s task to implement the assessment on law compliance, classification of risk level for import - export enterprises, thereby applying management measures in accordance with each

compliance level, ensuring the full and accurate implementation of regulations

of customs law, tax law"

b) From risk management to compliance management and the interdependent relationship: When applying risk management, the customs

office applies the probability check on a percentage of certain shipments depending on the risk level, then assesses the comliance level of the import -

export enterprises and decides the goods flow based on customs documents to

check to documents instead of inspecting the entire cargo WCO draws a conclusion from the experience of some countries to set out the principles of risk level evaluation to decide the goods flow based on 3 or 4 different enterprise groups Modern compliance management based on risk analysis is usually set up according to four basic elements which are the national legal framework; risk management; administrative management, and technical and

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technological infrastructure Thus, it can be affirmed compliance management and risk management always are associated, parallel, and support each other to enhance the effectiveness and validity in customs management

c) Roles and characteristics of compliance management: compliance

management reflects the effectiveness and validity when implementing international trade law, import - export operation mechanisms as well as regulations on customs law and tax law in each period; raises awareness and voluntary compliance level of import - export enterprises, creating a transparent and fair business environment, innovation and customs procedures reform Compliance management ensures the validity of the legal system; transparency and fairness of import - export activities, and the encourages the compliance among enterprises

d) Philosophy, objectives and principles of compliance management: The

philosophy of compliance management regarding import - export enterprises is

to classify the compliance level, hence proposing management policies suitable for each compliance level of those enterprises and take measures to raise the

level of compliance of such import - export enterprises; Compliance management objectives: To raise the level of law compliance among import -

export enterprises and facilitate necessary conditions to promote voluntary compliance with high efficiency, but most resource-and-cost saving, while increasing the ability to well-implement the customs management, in particular: (1) Reviewing and introducing compliance management policies in accordance with the regulations on customs law, tax law, specialized management law and relevant state regulations; Incentive programs to facilitate enterprises in law compliance and measures to inspect, supervise, and post-customs clearance inspection towards non-compliant enterprises; (2) Support enterprises to improve compliance capacity based on the provision of information, risk warning, develop customs-enterprise relationship through seminars, conferences, dialogues, consultations, signing memorandum of

understanding The principle of compliance management is to be applied

together with risk management and according to the compliance framework and customer classification based on WCO standard: Enterprises doing voluntary compliance (low risk) will be prioritized with simple customs procedures; Enterprises always trying to comply will be supported in detail; Enterprises always trying to avoid complying will be compulsorily instructed to comply; and completely non-compliant enterprises (high risk) will be put under strict and appropriate inspection, supervision, and penalties

đ) Compliance management contents: including 07 groups of work: (1)

Building, managing business profiles; establishing and managing risk profiles

of import - export enterprises with a tendancy to be non-compliant; (2) Developing criteria and indicators of criteria to assess the compliance level of

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import - export enterprises; (3) Evaluating the law compliance level of import - export enterprises; (4) Classifying the risk level of import - export enterprises; (5) Applying measures of customs inspection and supervision, post-customs clearance inspection, and other professional measures for import - export enterprises; (6) Inspecting and assessing the law compliance of import - export enterprises; (7) Organizing partnership programs between customs and enterprises

e) Compliance management process: there are 06 steps to implement as

follows: Step 1: Developing strategies, policies and plans for compliance

management among import - export enterprises; Step 2: Building a system to

collect and process information of all enterprises, imported and exported goods,

means of transport on exit or entry to conduct the compliace assessment; Step 3: Developing criteria and indicators for evaluating and classifying enterprises; Step 4: Assessing and classifying the level of compliance of import - export enterprises; Step 5: Implementing the customs law compliance management among import - export enterprises; Step 6: Measuring compliance, evaluating

the results and effectiveness of compliance management

f) Methods used in compliance management: An effective method for

compliance management is still to analyze and evaluate the compliance level of import - export enterprises to address the "blockage" and facilitate customs clearance Compliance management among import - export enterprises must be carried out continuously throughout the supply chain of goods from suppliers

to final buyers, so it is necessary to analyze, contrast, compare, search and evaluate the development history from its establishment to the stages of

business and production activities of import - export enterprises to master the signs of violations or warn and prevent such enterprises from law violations Compliance management will be effective and resource-optimized if it combines a variety of professional measures, of which the basis is the application of risk management

g) Criteria and indicators of criteria in compliance management:

Customs office uses the criteria as a tool to implement its state management responsibility Standards are promulgated as the basis for risk assessment, customs and tax law compliance assessment, meeting the requirements of customs management, tax management in import - export activities, on exit or entry, and in transit in each period, particularly: "Criteria are standards

promulgated as the basis for risk assessment, customs and tax law compliance assessment, meeting the requirements of customs management, tax management in import - export activities, on exit or entry, and in transit in each period" The basis on which customs office relies to study and develop the

set of criteria must be in accordance with 6 factors (1) in accordance with the law on specilized management; (2) In accordance with regulations of customs

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law, tax law which require inspection; (3) Dossiers on the process of law compliance àn ranking of import - export enterprises; (4) Frequency, characteristics and level of law violation in import - export activities; (5) Information on signs of law violations, signs of risks; (6) According to the requirements of the customs management and tax management in each period Criteria and indicators play a crucial role as the basis for customs office to conduct risk assessment, law compliance assessment in import - export activities Then, customs office will rely on the results of the compliance assessment and risk assessment to make the decision on applying professional measures for imported and exported goods, means of transport on exit or entry The government or policy-makers often ask the management agencies to assess the

"health" of the business community in general and import-export enterprises in particular In this case, criteria are the most effective and unique tools to

"diagnose and examine" enterprises to see how weak and healthy they are? Criteria and indicators have a number of characteristics which are: ensuring publicity, transparency, no logical contradiction among the compliance levels; the information included in the compliance assessment must

be specific, clear and accurate; being divided into many types with different functions such as regulatory criteria, analytical criteria, scsoring criteria, probability criteria, classification criteria ; Criteria and indicators have a number of outstanding functions as follows: (1) If built, managed and applied will be an effective tool to help the customs office comprehensively and fully assess the level of law compliance of enterprises in import - export and exit - entry activities, thereby creating the most favorable conditions for commercial activities and control; (2) Contributing to the improvement in resource efficiency and addressing limitations of the customs management; (3) Meeting the requirements of administrative reform and implementating international commitments

When implementing the compliance management towards import – export

enterprises, customs office needs to establish a variety of criteria and indicators for assessing the compliance level, making decisions on inspection

or performing other tasks, such as: (1) Screening the goods in the process of loading, unloading, storing and transporting at ports, docks, warehouses, yards, import gates; (2) Implementating customs procedures for import - export goods; (3) Screening the exported goods after customs clearance that has been gathered in the locations at export gates; (4) Inspecting actual import - export goods in the process of loading, unloading, storing and transporting at ports, docks, warehouses, yards and border gates; (5) Supervising the process of taking samples for specialized management according to the announcement of the customs declarants; (6) Inspecting transported goods subject to customs supervision