VIETNAM’S CUSTOMS

PROCEDURE REFORM FOR

TRADE FACILITATION

Quynh Dang Thi

Trainer - Vietnam Customs School -

General Department of Vietnam Customs

www.themegallery.com

PART 1: GENERAL INFORMATION ON:

- VIETNAM ECONOMY

- VIETNAM CUSTOMS

OUTLINE

PART 1:

GENERAL INFORMATION ON

VIETNAM ECONOMY AND

VIETNAM CUSTOMS

Population: 91.71 million (2015)

Total area: 329,560 km²

Provinces: 63

Municipals: 54

Official language: Vietnamese

Capital: Hanoi

The Socialist Republic of Vietnam

IMPORT-EXPORT DATA

Import Export

2010 84.84 72.24

2011 106.75 96.91

2012 113.78 114.53

2013 132,03 132,03

2014 147.85 150.22

2015 165.65 162.11

(billion USD)

Source: GDVC

STRUCTURE OF ORGANIZATION

Total Customs officer:

10,283 (2013)

MINISTRY OF FINANCE

GENERAL DEPARTMENT OF VIETNAM CUSTOMS

Administrative Departments

(13)

Subordinate Departments

(4)

Provincial Customs

Departments (34)

PART 2:

VIETNAM’S CUSTOMS

PROCEDURE REFORM FOR

TRADE FACILITATION

• Launch new Customs Law 2014 and guidance

documents (Decree and Circular) which is in

accordance with Revised Kyoto ConventionContent

1. SIMPLIFICATION OF CUSTOMS PROCEDURES

• Customs procedure is implemented through the

automated cargo clearance system

(VNACCS/VCIS)

Content

1. SIMPLIFICATION OF CUSTOMS PROCEDURES

TRANSITION PROCESS TO VNACCS/VCIS

Traditional Customs

E-CUSTOMS

AutomaticVNACCS/VCIS

2005-2007

Ver 1

2007-2009

Ver 2

2009-2012

Ver 3

2012-2014

Ver 4

1/4/2014

100% Manual

Partial applied

Computer

Sending data to Customs

E-Customs: 1st April 2014 to 15th October 2015

34/34 Regional Customs Departments

195/195 Customs Branches

99,47% customs declarations processed by automation system (VNACCS)

Green: 53,89%

Yelow: 37,45%

Red: 8,65%

Total of companies used VNACCS : 66.000.

A typical example: Vietnam Brothers Industrial Co., Ltd

(after 5 months operating VNACCS)

- Time for declaring and receiving result: 15 seconds, instead of about 2 minutes

as before.

- Reduce 6,213 minutes /month, equivalent to more than 100 hours/month.

- Reduce time for customs procedures, less averaging around 3 hours/shipments

than before.

=> VNACCS/VCIS helps Vietnam Brothers Industrial Co., Ltd to save USD

12,660/month.

• Implement National single window and ASEAN

single window

• => Enable trader lodge information via a single

entry point to meet import, export and transit

requirements.

Content

1. SIMPLIFICATION OF CUSTOMS PROCEDURES

NSW

E-Clearance

ASW

E-Permit

E-Payment

E-CO

E-Manifest

Administrative Reform

(Government Resolutions 19 of

the 2014, 2015 and 2016)

Simplification of procedures;

Cut-down all unnecessary

documents and procedures

Reduce time of clearance to the

level of ASEAN 4

Implementation of NSW, ASW

15

16

IMPLEMENTATION OF NSW

No MINISTRY TIME

1 FINANCE (CUSTOMS) 11/2014

2 TRANSPORTATION (MOT) 11/2014

3 INDUSTRY AND TRADE (MOIT) 12/2014

4 AGRICULTURE & RURAL DEVELOPMENT (MARD) 6/2015

5 HEALTH (MOH) 6/2015

6 NATURAL RESOURCES & ENVIRONMENT (MONRE) 6/2015

7 SCIENCE & TECHNOLOGY (MOST) 9/2015

8 INFORMATION & COMMUNICATIONS (MIC) 9/2015

9 CULTURE, SPORT & TOURISM (MCST) 9/2015

Apart from clearance procedures, 28 administrative procedures of 8 ministries are

implemented through NSW with total customs declaration: 55.026

From 7/8/2015 Việt Nam NSW was connected technically with the

systems of Indonesia, Singapore, Thailand and Malaysia for

exchange data of ATIGA C/O form D

IMPLEMENTATION OF ASW

From 26/10/2015: running test

on both e-C/O and hard copies

ACHIEVEMENTS

Trade Facilitation

TIME: Reduce 30% of time handling administrative procedure

COST: Paperless in many administrative procedures,

Reduce documents submitted

Administrative cost: Reduced

Efficiency & Effectiveness:

Government agencies in providing public services for business

• Advance rulings on classification, customs

valuattion and origin.

• Reduce the number of documents submitted to

customs administrationContent

1. SIMPLIFICATION OF CUSTOMS PROCEDURES

20

Customs file for export goods

Customs declaration

Export permit/license (if required)

A written notice of the results of specialized inspection or exemption of specialized inspection (if required)

21

Customs file for import goods

Customs declaration

Commercial invoice

Transport documents

Permit of import (if required)

A written notice of the results of specialized inspection or exemption of specialized inspection (if required)

Customs valuation declaration

• Apply risk management in various stages of

customs clearance processContent

1. SIMPLIFICATION OF CUSTOMS PROCEDURES

STEPS IN PROCESS OF CUSTOMS DECLARATION

Step 5: Release/clearance of goods

Step 4: Checking the duty responsibility

Step 3: Physical inspection import, export goods

Step 2: Checking the goods declaration and supporting documents

Step 1: Registration, checking and channeling of e-customs declaration

• Review regularly customs regulation

• Website with full of information on legal documents and customs formalities (frequently updated)

• Consultation with other stakeholders before publishing new law and regulations.

• Hot-line telephone number to receive criticism and suggestions about customs procedures and the behaviour of customs officials.

• Time Release Study

Content

2. TRANSPARENCY OF CUSTOMS PROCEDURES

TIME RELEASE SURVEY IN 2013

- The time was measured in 11 port/border gate customs offices in 7 provinces and cities which dealt with airway, roadway and seaway transport routes.

- Result: The time required for the release of import goods: 115

hours and 17 seconds from the time the goods entered ports/border gates to the time clearance/release decisions were announced.

The time required for the release of export goods: 11 hours, six minutes and 33 seconds from the time of registering declaration papers to the issue of clearance/release decisions.

- The time for customs procedures completed by customs authority only accounts for about 28% of the total release time, 72% of the release time is spent on procedures of other agencies and organizations involved in import-export activities.

STRATEGIC OBJECTIVE

To be a modern Vietnamese Customs with sufficient mechanisms,

harmonized procedures based on the application of IT, centralized data

processing and of RM system

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PLAN UP TO 2020

VNACCS/VCIS: develop project “Effective enhancement

of the automated cargo clearance system VNACCS/VCIS

(period 2)” (6/2018)

NSW: be linked to all government agencies and bodies for

processing procedures relating to import, export and

transit activities. All procedures in NSW are live and

automatic at level 4 (full automation).

ASW: fully connect with ASW and ready to connect with

other system of ASEAN partners for trade facilitation and

security of supply chain.