AEOs: Great incentives, high responsibility

	Facilitating customs procedures for AEOs
	Hanoi Customs manages 12 authorized economic operators
	Customs of ASEAN countries recognize each other as authorized economic operators

Production at Garment 10 Corporation, the enterprise has been recognized as a priority enterprise for 8 years. Photo: t.Binh.

Typical enterprises in import and export activities

Implemented since 2011, up to now, there are 72 enterprises nationwide that are applying the priority enterprise regime in the customs field, including 25 Vietnamese enterprises.

Deputy Director of the Post-Customs Clearance Inspection Department (General Department of Customs) Nguyen Sy Hoang said: that in 2022, priority businesses will only make up a despite the modest proportion of about 85,000 import-export businesses, AEOs account for about 36% of total import and export turnover, with a turnover of about 266 billion USD. The priority areas of business operations are quite diverse, from industry, processing, and manufacturing to agriculture...

The above data shows that priority enterprises are typical enterprises in import-export activities, with large import-export turnover.

However, to be recognized as a priority enterprise, businesses must satisfy many requirements and undergo a strict appraisal and evaluation process.

According to the provisions of Circular 72/2015/TT-BTC of 2015 of the Ministry of Finance, one of the conditions to be recognized as a priority enterprise is related to import and export turnover.

Specifically, conditions related to turnover include: enterprises achieving import-export turnover of 100 million USD/year or more; Enterprises achieving export turnover of goods made in Vietnam of 40 million USD/year or more; Enterprises achieving export turnover of agricultural and aquatic products produced or raised or grown in Vietnam of 30 million USD/year or more.

For customs clearance agents, the number of customs declarations completed under the agent's name during the year reached 20,000 declarations/year or more.

The above export and import turnover and declarations are the average data of 2 consecutive years, most recent up to the date the enterprise has a written request for review (the above turnover and declaration do not include the turnover entrusted export and import).

In addition, the Customs agency does not apply export and import turnover conditions to enterprises certified by the Ministry of Science and Technology as high-tech enterprises according to the provisions of the High Technology Law.

In addition to turnover conditions, businesses must meet other conditions: comply with customs and tax laws; electronic customs procedures, electronic tax procedures; payment for exported and imported goods; internal control system; and Comply well with accounting and auditing laws.

Need to set examples in complying with the law

Once recognized by the General Department of Customs as AEO, Exports or imports of enterprises eligible for customs priority shall be given priority in following clearance customs procedures.

Circular 72 clearly stipulates the principles of applying the priority regime, including: exported and imported goods of priority enterprises or priority projects or by priority agents named on the declaration are eligible for the priority regime. Customs procedures, customs inspection and supervision are prescribed in this Circular for all types of export and import, at all customs units nationwide.

In addition to the priorities specified in Circular 72, priority enterprises also enjoy other priorities in the field of state management of customs for exported and imported goods according to relevant regulations.

Specific priorities are offered including: exemption from document inspection, exemption from physical inspection of goods; Customs clearance with incomplete declaration; Priority in the order of customs procedures; specialized inspection; tax procedures; on-site import and export procedures; and Post-clearance checks.

The above incentives make an important contribution to promoting the production and business activities of enterprises through quick customs clearance; enhancing customs reputation and cutting costs for enterprises.

To remain AEO position and enjoy the great incentives mentioned above, businesses must also always comply with the law. However, after being recognized, there are still a few businesses that do not comply well with the regulations. Through professional measures, the Customs agency discovered and decided to suspend the preferential enterprise regime.

In the past 12 years, several cases have been suspended by the General Department of Customs from applying the priority business regime such as: POSCO VST Co., Ltd., Saigon Precision Co., Ltd., Pouchen Vietnam Co., Ltd., Processing companies. Au Vung I seafood import and export, Vietnam Oil Corporation (PV Oil) …

In particular, those who do not comply well with the law or no longer meet the conditions to participate in the program will be suspended.

Suspension of the priority business regime will lead to the loss of many great incentives from the Customs agency as mentioned above, and at the same time affect the reputation of businesses with partners, especially in the context of Vietnam Customs has signed a mutual recognition agreement on priority businesses with the Customs of ASEAN countries and has continued to negotiate to sign agreements with several other major trading partners.

Therefore, the Customs agency recommends that once recognized as an AEO, businesses must always be conscious of complying with the law, especially performing well the responsibilities of a priority enterprise as prescribed in Article 26, Circular 72/2015/TT-BTC (added in Clause 10, Article 1 of Circular 07/2019/TT-BTC effective from March 28, 2019).