Customs - Business Dialogue on challenges in express delivery industry

VCN - On the afternoon of August 23, the General Department of Customs (GDVC) held a meeting with representatives from the Global Express Association (GEA) and Conference of Asia Pacific Express Carriers (CAPEC), aiming to discuss the challenges in the fields of express delivery and e-commerce.
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Customs - Business Dialogue on challenges in express delivery industry

The scene of the meeting. Photo: M.H

The meeting was chaired by the GDVC’s Customs Reform and Modernization Board focal point in establishing the Customs-Business partnership, and was attended by representatives of the GDVC’s Technical Departments.

Attending the meeting from GEA and CAPEC were Mr. Dietmar Jost - Customs and Security Advisor (GEA), Mr. Daryl Sim-CAPEC Secretariat, and their members from DHL, UPS, and FedEx.

Both parties exchanged views on various problems, challenges, and recommendations to enhance voluntary compliance and further facilitate businesses operating in the cross-border express delivery and e-commerce sectors. Priority topics for discussion included: specialized inspections for low-value imported goods, upgrading the Vietnam Automated Cargo Clearance System (VNACCS), the Authorized Economic Operator (AEO) program for express couriers, and the Vendor Tax Collection Model for e-commerce goods.

During the meeting, the parties discussed the regulations outlined in legal documents regarding specialized inspections for low-value imported goods, as well as recommendations for addressing and facilitating specialized inspections for goods imported by individuals through e-commerce transactions for personal consumption purposes.

The participants also discussed the status after the Covid 19 pandemic when cross-border e-commerce became a common practice among the public, leading to a significant surge in the number of customs declarations. Recognizing this matter, the GDVC has made great efforts to expedite the development of a new customs clearance system, digital transformation, and application of modern customs technology in the near future.

Concerning the AEO program for express couriers, as per current regulations, this program is applicable to importers, exporters, customs brokers, and strategic projects that meet the specified criteria.

To align with international standards, especially the WCO Framework of Standards to Secure and Facilitate Trade (SAFE), the GDVC actively reviews amendments to legal documents to expand and supplement the entities eligible for the AEO program. Express couriers are encouraged to introduce best practices related to the conditions for AEO recognition, ensuring supply chain security and the benefits for AEOs. These insights will serve as valuable references for the GDVC in revising regulatory frameworks.

In addition to the aforementioned topics, the GEA’s representatives also shared insights with the GDVC regarding the Vendor Tax Collection Model. Given the escalating trend of cross-border e-commerce, the Vendor Tax Collection Model becomes beneficial for Customs administrations in tax management, especially for low-value shipments.

The model has proven effective in countries such as Australia, New Zealand, and Singapore. Mr. Dietmar Jost - Customs and Security Advisor (GEA) expressed his willingness to provide more detailed information about this model during his attendance at the WCO Technology Conference and Exhibition in Hanoi scheduled on 10-12 October.

By Lan Huong/Minh Hoang

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