Ensuring global trade security requires cooperation, exchange and processing of information before the goods arrive

Customs officers of Cai Mep port Customs Branch inspected import-export goods. Photo: Nguyễn Hiền

Results, current situation...

The surge in cross border e-commerce transactions, characterized by a significant increase in goods and the need for rapid clearance, demands timely clearance processes to meet the cargo clearance needs of goods.

The collection and exchange of electronic information about goods in advance not only facilitates businesses but also alleviates the pressure of document and physical goods inspection during the clearance process.

In Vietnam, the requirements for international trade facilitation for customs authorities are specifically outlined in Free Trade Agreements (FTAs).

As of 2023, Vietnam has participated in and is negotiating a total of 19 FTAs. These FTAs contain provisions to expedite the movement, release, and clearance of goods, including transit goods.

To effectively implement the provisions of FTAs, one of the measures to promote expedited clearance or pre-arrival clearance, meeting the current requirements of international trade facilitation, is for customs authorities to cooperate, exchange, and process information before the arrival of goods with relevant parties.

This necessitates measures to enhance the effectiveness of cooperation between customs authorities and relevant agencies on trade facilitation and customs compliance issues, as well as provisions on technical assistance and capacity building in this area.

In the current management chain of international trade transactions, the exchange of international trade transaction information is carried out through the exchange of information between customs authorities and government agencies; customs authorities and customs authorities of other countries and international organizations; customs authorities and trade partners including import-export enterprises, associations, authorized economic operators (AEOs), air carriers, and shipping lines.

As a first step in building a digital customs model, Vietnam Customs has connected data from relevant ministries and agencies at the National Single Window and connected with the ASEAN Single Window.

In information exchange activities, coordination between customs authorities and specialized agencies is essential.

Although the number of ministries and agencies connected through the National Single Window has been relatively complete, the connection through the National Single Window Portal has been promoted over time but is still limited in terms of scope, level of information sharing, and legal framework.

These inadequacies stem from both subjective and objective causes related to information infrastructure, coordination in processing and using information, and especially the legal framework on the connection and sharing of information between agencies and organizations directly or indirectly involved in import-export activities.

In addition, the interconnection of administrative procedures is still limited in receiving and sharing information through the National Single Window, leading to a lack of synchronization in processing and sharing information during the movement of goods.

Notably, the cooperation and exchange of information before the arrival of goods have not been specifically stipulated in any legal document, so the responsibilities and obligations of the parties have not been binding.

In reality, many enterprises have yet to access information and procedures for applying these regulations. To date, only nearly 1,000 cases have been pre-determined with HS codes (324 cases in 2022 to the first half of 2023); 5 cases have pre-determined customs valuation, and there have been no cases of pre-determining the origin of import-export goods.

Although the exchange and processing of customs business information have undergone significant and timely changes to meet modern customs management, the exchange of information before the arrival of goods from relevant parties still has many limitations, lacking synchronized, accurate, and timely information, affecting the quality of information processing, analysis, and the application of focused risk management.

In the research topic "Cooperation, exchange and processing of information before the arrival of goods to meet the requirements of facilitating international trade" - a scientific research topic at the General Department of Vietnam Customs in 2022 (Code: TCHQ/DT/2022-14), the research group of Ba Ria - Vung Tau Customs Department believes that for the activity of exchanging information before the arrival of goods, the connection and exchange of information between customs authorities of different countries are currently facing difficulties in technical requirements when digitizing customs documents.

In reality, the development level and the characteristics of information technology application of different parties lead to great difficulties in standardization. To implement the exchange of information before the arrival of goods, participating parties need to agree on technical requirements.

Therefore, in the coming time, to expand the electronic exchange of information before the arrival of goods, it will take time to negotiate, finalize the legal framework, deploy the construction of an information technology system capable of integration, and implement the digitization of documents on a platform compatible with the technology system of each party, the research group of Ba Ria - Vung Tau Customs Department recommends

... And solutions

To ensure security and effective control of the international supply chain and facilitate legitimate trade, customs authorities are required to make effective use of tools and information related to the circulation of goods, people, and means of transport. One of the most effective options is cooperation, exchange, and processing of information before the arrival of goods.

Upgrading the customs database system, the system must be connected to facilitate the early exchange of electronic data between customs authorities, as soon as an international goods transportation cycle begins; agreements on cooperation and mutual recognition between the customs authorities of the importing and exporting countries and transit countries to eliminate unnecessary overlaps in supply chain control; standards for building a mutual recognition system for AEO; and a set of rules governing the exchange of information between customs authorities, including data protection rules.

Like customs authorities worldwide, Vietnam Customs is facing challenges in identifying high-risk consignments in terms of security, e-commerce, especially drugs, and environmental safety before the arrival of goods.

The Customs Development Strategy to 2030 clearly states the target by 2030: "100% of land border gates deploy a system for receiving and processing advance declarations of import-export goods before means of transport cross the border."

To ensure this goal, Vietnam Customs identifies the construction and proposal to improve the legal regulations on pre-arrival information and information sharing domestically and internationally.

In particular, according to the research group of Ba Ria - Vung Tau Customs Department, it is necessary to build a pre-arrival processing procedure to meet the requirements of facilitating trade in goods, speeding up the clearance process and increasing the effectiveness of customs risk control for goods transported by air, in which it is required that postal operators and authorized express delivery companies submit an electronic import declaration in advance, before the aircraft arrives.

The data is declared in a unified format and used by customs authorities for risk assessment and clearance. The research group of Ba Ria - Vung Tau Customs Department has proposed a model of a pre-arrival information processing procedure; applying measures to strengthen the application of risk management to increase the efficiency of collecting and processing pre-arrival information; applying pre-control measures to manage economic operators...

In addition, the research group of Ba Ria - Vung Tau Customs Department suggests that the Government should focus on solutions to improve the legal framework; organize the implementation of the exchange, collection, and processing of information before the arrival of goods; information technology; applying risk management measures through the analysis of information before the arrival of goods; resources; and strengthening cooperation and coordination.

In particular, the Government needs to agree on the principle of connecting and exchanging information between ministries and agencies involved in import-export activities according to the National Single Window Mechanism.

The Government needs to soon issue a Decree on connecting and sharing information in the field of import-export, transit of people and means of transport according to the National Single Window Mechanism as an important legal basis for cooperation in sharing information between customs authorities and other specialized management agencies.

Along with the challenges, there are also many opportunities for customs authorities, which is the formation of a global customs network that helps to better manage borders, the research group of Ba Ria - Vung Tau Customs Department also makes a number of recommendations related to improving the effectiveness of cooperation, exchange and processing of information before the arrival of goods to meet the requirements of facilitating international trade. From there, helping customs authorities perform well the task of both ensuring security and controlling the international supply chain, and facilitating legitimate trade even more.