Determined to build smart Customs, DG Nguyen Van Can

Director General of Vietnam Customs Nguyen Van Can

Implementing 13th Party Congress Resolution; building smart Customs model

2021 is the launch of the 13th Party Congress Resolution, what are action plans and programmes prepared by the General Department of Customs prepared to realise the Resolution?

The Party Committee of the General Department of Customs has identified three strategic tasks to guide the entire sector to implement.

First, improving institutions and laws in the field of customs, focusing on proposing amendments to the Customs Law, decrees, circulars, guidelines, and customs procedures to effectively deploy the National Single Window and the scheme on reforming the model of quality inspection and food safety inspection for imported goods.

Second, developing human resources, especially high-quality human resources to meet the requirements of implementing the Customs Development Strategy for 2021-2030, as well as enhancing scientific research as a theoretical basis for building a smart Customs model and solving existing operational problems.

Third, building a synchronous and unified infrastructure to serve national digital transformation. Strengthening human resources to complete the Master Plan of Re-design of the Information Technology System approved by the Ministry of Finance.

Could you analyse and evaluate clearly the advantages of this smart customs model in the customs reform and modernisation process?

The Customs Development Strategy for 2021-2030 defines overall goals: building a modern Vietnam Customs which is on par with the customs of developed countries in the world and is the pilot in the implementation of digital government; improving the quality of services for people and businesses in carrying out customs procedures, customs management and tax collection and facilitating cross-border trade, tourism and legal transportation, creating a transparent and fair import-export environment, contributing to improving national competitiveness, ensuring social security and safety, and protecting national interests and sovereignty.

Therefore, the General Department of Customs has built a smart Customs model, seen as a most important content in the Customs development strategy for the 2021-2030 period towards modernisation and professionalism in line with the trend of global liberalisation; applying the achievements of the industrial revolution 4.0 of the customs administrations of developed countries; requirements for State administrative reform and modernisation towards a digital government and e-Government.

The Party Committee of the Ministry of Finance approved "the policy of building a smart customs model in line with the reality of technological, scientific and technical development in the world and in Vietnam”.

The successful implementation of the smart Customs model is likely to create a breakthrough and increase the development level of Vietnam Customs.

This is a new model, so to succeed in the planned contents, it requires great efforts of the entire sector to solve professional problems; review and propose amendments and supplements to the provisions of the law on customs as a basis to build digital Customs, and smart Customs.

Could you speak more about the basic features of the smart Customs model?

The smart Customs model has a high degree of automation, applies new and modern scientific and technological achievements on a digital and paperless platform, ensuring transparency, fairness, effectiveness and efficiency. It is capable of forecasting, adapts to the fluctuations of international trade, meets management requirements of Customs sector, and the requirements on information sharing with ministries and agencies, complies with the international standards and better serves people and businesses.

The smart Customs model includes the following basic features: smart border management; chain management and digital ecosystem; providing optimal service; smart connection and processing; transparent, fair, and consistent. As follows:

First, smart border management in line with the virtual customs model, and the electronic border gate recommended by the World Customs Organisation (WCO).

Launching the integrated border management model to reduce the direct participation of customs officers, simplifying administrative procedures, cutting waiting time at the border, channelising goods and passengers, vehicles, and accepting authorised inspection at the border gate.

Applying technological solutions and modern inspection and supervision equipment suitable to the characteristics of border gate areas.

Unifying the role of leading and coordinating operations related to management, inspection and supervision of import and export goods and means of transport on entry and exit at the border gate areas of customs agency.

Second, chain management and digital ecosystem. Deploying an integrated supply chain management model as guided in the WCO's SAFE Framework of Standards to Secure and Facilitate Global Trade.

The value chain management will manage the entire production and business process of firms to ensure goods are used for the right purposes as declared with the Customs.

Third, providing optimal service via establishing a friendly, easy-to-access digital service environment that allow using services anytime, anywhere and on any devices and help businesses, individuals and people monitor the administrative processing.

Fourth, smart connection and processing is the application of new technological achievements such as: Internet of Things (IoT), Blockchain, Artificial Intelligence (AI), Big Data (Big Data), iCloud, Mobility to assist Customs in automatically analysing and processing information; mastering technology, and promptly adapting to changes.

Fifth, transparency, fairness, consistency is reform of administrative procedures in the direction of transparency, simplicity, and consistency, in line with the WCO's standards and recommendations.

Accompanying businesses, facilitating imports and exports during the pandemic

Director General Nguyen Van Can chaired an online conference on June 28, 2021. Photo: Q.Hung

What has been the role of the Customs sector in the period of economic development and strong integration in recent years, especially during the Covid-19 pandemic?

The country is in a period of development, far-reaching international integration, the volume of import and export goods increases year by year. In addition to the State management of customs, an important task for the Customs sector is trade facilitation.

To well perform this key task, the General Department of Customs has continuously improved the legal framework, administrative reform and customs modernisation; enhanced the application of information technology such as: launching the Vietnam Automated Cargo and Port Consolidated System/Vietnam Customs Intelligence Information System (VNACCS/VCIS); Vietnam automated system for seaport customs management (VASSCM); and the electronic tax payment 24/7 via banks.

The General Department of Customs has clearly demonstrated its central role in connecting and encouraging relevant ministries and sectors in reforming and simplifying administrative procedures and reducing customs clearance time through its role as the Standing Office of National Steering Committee for National Single Window, ASEAN Single Window and Trade Facilitation (Committee 1899).

The General Department of Customs is committed to accompanying, supporting and creating favourable conditions for the business community in the process of production, business, import and export; and expects the ministries, agencies and local government will accompany the customs sector to promote administrative procedure reform, reduce customs clearance time, and facilitate international trade for the benefit of the country and people.

Would you please tell us more about the solutions the General Department of Customs has taken to ensure the clearance of goods amid the pandemic?

The Customs sector has introduced many solutions to achieve the dual goals of effective pandemic prevention and control and customs clearance; developed plans and scenarios to ensure the safety of customs officers in duty performance; promoted information technology to serve online working in areas where social distancing is implemented.

Fast clearance of shipments serving pandemic prevention is identified an urgent task. For cargo congestion at Cat Lai port (HCM City), The General Department of Customs promptly gave instructions to remove problems and help firms to take goods quickly.

Due to the pandemic, the customs sector has made efforts to ensure customs clearance and achieve the State budget revenue target.

Presiding over the implementation of the new quality inspection model for imported goods

Could you tell us more about the benefits of implementing the new quality inspection model for imported goods?

The scheme on reforming the quality inspection and food safety inspection model has seven major reforms that will improve management efficiency and facilitate business operations. The Government has assigned Customs to be the focal point to implement Decision 38 of the Prime Minister on this scheme.

According to the USAID Trade Facilitation Programme, the new model of specialised inspection will significantly reduce time and costs for firms.

How are Decision 38/QD-TTg of the Prime Minister and the roadmap for applying the new model of quality inspection of imported goods being carried out?

The General Department of Customs is working with ministries and agencies to carry out a series of related works, especially submitting to the Government for promulgation of a decree on State inspection of quality and food safety for imported goods.

In addition, Customs has coordinated with ministries and sectors to provide human resources and equipment to conduct quality inspection and food safety inspection according the new model.

The roadmap to implement Decision 38 has two phases:

Phase 1, (from 2020 to 2023), the General Department of Customs submits to the Government for issuing Decree on management mechanism, methods, and procedures for quality inspection and food safety inspection for imported goods; carries out the scheme on reforming the quality inspection and food safety inspection model for imported goods; evaluates and summarises the performance of the scheme and proposes tasks in phase 2.

Phase 2, (from 2023 to 2026), the General Department of Customs will review, amend and supplement laws on specialised management and related documents in accordance with international practices and agree on the Customs office as focal point for quality inspection and food safety inspection for imported goods at the border gate.

Affirming leading role of the Customs sector on the anti-smuggling front

Director General Nguyen Van Can awards the Order of Merit to teams and individuals with outstanding achievements of Team 5 under the Anti-Smuggling and Investigation Department, on July 6, 2021. Photo: T.Binh

What has the customs sector done to promptly respond to increasingly complicated smuggling and trade fraud?

Not only smuggling and tax evasion, but more and more large-scale transnational crime gangs related to the trafficking of drugs, wild animals and plants with sophisticated methods have appeared. This poses many difficulties and challenges for the Customs sector.

As a Standing Agency of National Steering Committee Against Smuggling, Trade Fraud, and Counterfeit Goods (“National Steering Committee 389”), the General Department of Customs has grasped the situation to advise the committee and propose solutions.

Notably, in the context of international integration and globalisation, origin fraud has emerged as a major challenge for the State management of customs, requiring the Customs to promptly capture the situation. Recently, the Customs sector has discovered and handled a number of outstanding cases and continued to combat violations to protect reputation and trademark of Vietnamese goods.

From December 16, 2020 to August 15, 2021, the customs sector handled 9,787 cases, with the infringing goods worth of more than VND1,780 billion. The customs agency took 18 cases to the court and transferred to other agencies 93 cases.

Customs presided over and coordinated with other authorities to smash many large-scale transnational drug crime lines, seizing hundreds of kilograms of drugs of all kinds.

The results continue to affirm the leading role of the Customs sector in the fight against smuggling, especially in the fight against transnational drug crimes.

In addition to anti-smuggling, the Customs sector promptly proposed authorities on amendments and supplements to management policies in accordance with reality; could you tell us more about this important content?

Through the fight against smuggling, the Customs sector has promptly proposed to the authorities on amendments and supplements to regulations on management to meet the reality and protect domestic production activities and prevent resource depletion.

In addition, before the violation of scrap import, Customs has investigated and prosecuted many violations and recommended the authorities to strengthen the management from licensing to assessment of firms’ compliance.

To fight against trade fraud, revenue loss and protect security and community safety, what are tasks assigned to the customs sector?

The customs sector needs to continue to strengthen the coordination and effective use of professional forces to fight crime, smuggling and trade fraud, including: the Customs Enforcement agency, the Post-Clearance Audit agency and the inspection agency.

The Customs Enforcement agency should strengthen patrol and control and information collection and grasp customs operation areas to develop management dossiers; investigate suspects and build secret establishments and develop plans and special projects to successfully fight and dismantle large and hot smuggling cases, lines, groups, and illegal cross-border transportation of goods; and strictly control import and export goods and passengers through the border gate.

Maximise the use of equipment and devices in online monitoring at three levels; improve efficiency in quantity and quality of investigation and prosecution of criminal cases; strengthen leadership and direction in drug prevention and control in the new situation.

The Post-Customs Clearance Audit Agency should focus on high-risk firms, key commodities of high value and tax rates; continue to expedite the fight against origin fraud and illegal transhipment.

The Inspection agency should focus on specialised inspection plans; continue internal inspections through thematic inspection, random inspection according to signs of violation, online inspection through the professional information systems of the Customs sector and the surveillance camera system.

Along with that, it is necessary to keep boosting domestic coordination and international cooperation.

On the occasion of the 76th anniversary of the establishment of Vietnam Customs, what do you want to say to all customs officers?

With a tradition of 76 years of construction and growth, with the attention of leadership, direction and facilitation of leaders at all levels, the efforts of all customs officers, I believe we will achieve the assigned tasks well, especially building Digital Customs, a smart Customs model to bring Vietnam Customs to develop on par with customs administration in modern countries.

I would like to express my gratitude to the leaders of the Party, State, Ministry of Finance, ministries and authorities, local governments and the business community for their attention, direction, facilitation and coordination to help Vietnam Customs successfully complete its assigned tasks.

I would also like to express my gratitude and best wishes to the leaders of the Customs sector over the years and all generations of customs officers and employees!

Thank you very much