HCM City Customs: Facilitating maximally for FDI enterprises

Manager of Investment Customs Branch Le Tuan Binh (middle) talks with businesses. Photo: T.H

Pioneering administrative reform

As an enterprise with a very large volume of import and export goods, on average, the company carries out procedures for about 300-400 import and export declarations every day, Luong Minh Tri, Head of Import and Export Department of Pou Yuen Vietnam Co., Ltd., said that to serve the activities of export production and export processing leather and footwear, Pou Yuen Vietnam Co., Ltd and its member companies have a very large volume of import and export goods.

Thanks to electronic customs procedures, along with the support and guidance of the Investment Customs Branch, cargo clearance is very convenient. Especially according to Mr. Tri, through the process of carrying out customs procedures, enterprises have found that, compared to other units, the Customs is the leading unit in administrative reform.

Currently, most of the customs procedures are carried out via an electronic platform, from opening customs declarations, submitting relevant documents, and paying import and export duty, helping enterprises to save time and costs.

Not only businesses that directly carry out procedures but many businesses that are customs brokers carrying out import and export procedures on behalf of FDI enterprises also appreciate the support and reform of HCM City Customs. For example, Mrs. Nguyen Thi Thu Hien, a Tracimexco – Supply chains and agency services joint stock company representative, shared that the company has provided services for more than 30 FDI enterprises with a huge flow of import and export goods.

To carry out customs procedures smoothly for customers, besides carefully researching customs procedures before implementation, the company always receives the sharing and companionship from Investment Customs Branch in particular and HCM City Customs Department in general.

Accordingly, new policy documents are updated and publicly posted by the Customs; regarding cargo clearance done on the electronic system, enterprises do it anytime, anywhere, and receive feedback and support promptly when problems arise.

Not only receiving high appreciation from businesses, the implementation of the commitment to accompany businesses of HCM City Customs and Investment Customs Branch also received high appreciation from leaders of foreign business associations and leaders of the People's Committee of HCM City.

At the dialogue between the HCM City People's Committee and foreign business associations held at the end of February 2023, President of the European Business Association (EuroCham) Alain Cany said that, in the past time, EuroCham represented for businesses to raise many problems and recommendations to the departments and agencies of HCM City. However, the problem related to the customs field is the least.

"It is the result of the administrative reform process, the application of modern management programs, as well as the listening and sharing to fulfill the commitment to accompany businesses of HCM City Customs Department leaders," the President of EuroCham emphasized.

The rate of red channel only accounts for 1.4%

The Investment Customs Branch has the specificity of being a specialized unit in charge of managing and carrying out customs procedures for import and export goods of foreign-invested enterprises and enterprises implementing incentives projects of domestic investment and ODA-funded projects. Hence, to fulfill the assigned political tasks, one of the key tasks that the Branch leaders are particularly concerned with is the facilitation, promoting import-export activities for businesses, and nurturing state revenue.

The manager of the Investment Customs Branch, Le Tuan Binh, said that the unit is currently processing customs procedures for about 4,000 FDI enterprises. Most FDI enterprises carrying out import and export procedures at their units have complied with customs laws. Therefore, the proportion of red channel declarations - conducting a physical inspection of goods at the branch is always very low, accounting for only about 1.4% of the total number of declarations generated at the branch.

"Most of the owners of FDI enterprises are foreigners, so their knowledge of customs regulations is somewhat limited. Therefore, Investment Customs Branch always focuses on dissemination and supports businesses to grasp regulations and comply with customs laws," Manager Le Tuan Binh said.

According to Mr. Le Minh Tri, with good observance of customs laws, enterprises are rated at level 2, so with a large number of daily import and export declarations of enterprises, most of them are classified into the green channel. Thus cargo clearance time is very fast and convenient. "At HCM City Customs, there is a customs unit specialized in carrying out customs procedures for FDI enterprises, which has greatly facilitated foreign investors in production and business activities," Mr. Le Minh Tri commented.

Identifying the support and facilitation for businesses as one of the top tasks to nurture revenue for the state budget, Director Le Tuan Binh said Investment Customs Branch would be diversified and flexible in organizing dialogue and supporting business.

Faced with the situation that businesses were affected by inflation and the war between Russia and Ukraine, causing a decline in orders, the branch has developed a plan to meet with leaders of each enterprise which have a large volume of import and export goods to proactively grasp the situation as well as the business's plan to carry out import and export of goods to proactively support and guide businesses. Thereby, it will also help the Customs authority to capture and evaluate the revenue source of the unit.