Growth of customs broker agents: Ongoing obstacles

Professional activities at Yen Vien International Railway Station Customs Branch, Hanoi Customs Department. Photo: N.Linh

There is still a gap in capacity

According to the Hanoi Customs Department, as of September 25, 2024, out of a total of 335 customs brokers, 299 are active, 3 have temporarily suspended operations, and 33 have ceased operations.

While these figures indicate a relatively stable state of customs broker activities within the jurisdiction, the Hanoi Customs Department reports that compliance with customs and tax laws remains a concern in term of reporting.

Statistics show that only 23 out of 299 brokers fully complied with reporting regulations from the third quarter of 2023 to the first quarter of 2024.

Notably, 164 brokers submitted untimely activity reports for three consecutive quarters. This indicates that despite mandatory reporting requirements, a significant number of brokers are not strictly adhering to these regulations.

In terms of scale, 22 brokers have more than 10 enterprise clients; 20 brokers handle over 500 import/export declarations per quarter; and 20 brokers facilitate trade worth over US$10 million per quarter. This reflects a disparity in scale and operational capacity among brokers, with relatively few capable of handling large-value transactions.

In response to this situation, the Hanoi Customs Department has been consistently implementing comprehensive management and supervision measures for customs brokers.

The Department has been working closely with its subordinate agencies to maintain and develop partnerships with customs brokers, which includes providing support for carrying out customs procedures, resolving difficulties, offering consultations, and conducting dialogues with businesses.

A notable highlight in management efforts is the implementation of the plan No. 205/KH-UBND of Hanoi People's Committee dated October 28, 2020 on supporting businesses in completing customs procedures during the 2020-2025 period. This plan aims to facilitate business, remove difficulties, and ensure transparency and efficiency in customs procedures. Additionally, the Hanoi Customs Department annually organizes Customs-Business dialogues to disseminate legal regulations and update businesses on support solutions for import and export activities.

Through these efforts, the Customs authorities not only maintain cooperative relationships but also encourage businesses and customs brokers to strictly comply with legal regulations.

Solutions to improve management efficiency

Despite achieving positive results in management, Hanoi Customs Department still faces numerous challenges in overseeing customs brokers. The vast management area and the dispersed nature of businesses and brokers make direct communication and exchange difficult.

Another challenge is the instability of customs broker operations. Notably, only 72 brokers engage in actual import-export activities, accounting for 24% of the total registered brokers, highlighting a significant gap between the number of registered and active brokers.

Currently, only customs brokers that are postal and express service providers use their digital signatures to handle customs procedures for clients. Other brokers only provide declaration services on behalf of clients.

Additionally, some customs brokers fail to comply with reporting regulations. Specifically, many cases involve brokers not reporting changes in information such as name or address, making management and verification difficult.

This has resulted in customs authorities having to conduct manual verification, which is time-consuming and resource-intensive.

In response to these challenges, the Hanoi Customs Department has proposed several solutions to enhance the effectiveness of customs broker management.

Firstly, maintaining and developing partnerships with customs brokers through direct dialogue with logistics associations and businesses. Regularly receiving and addressing business concerns not only facilitates import-export activities but also enhances trust and cooperation between the parties.

Furthermore, the Hanoi Customs Department has also proposed strengthening the management and supervision of customs broker activities. Regular, random, or surprise inspections will help accurately assess the operational status and legal compliance of brokers.

Through these inspections, the Department can report and propose appropriate measures to the General Department of Vietnam Customs to improve management quality and facilitate businesses operating in the import-export sector.