Key takeaways from supporting business compliance
Mr. Nguyen Nhat Kha, Director of the Risk Management Department (General Department of Vietnam Customs) |
The rise of Green channel and the fall of Yellow and Red channels
Sharing the results of the pilot program supporting and encouraging businesses to voluntarily comply with customs law, Mr. Nguyen Nhat Kha, Director of the Risk Management Department (General Department of Vietnam Customs), said that Vietnam Customs is a member of the World Customs Organization (WCO). Fundamentally, the risk management activities of customs authorities worldwide have many similarities. According to the WCO, businesses are divided into four groups: compliant, compliant with support; non-compliant when given the opportunity; and completely non-compliant. At the same time, the WCO also issued the Kyoto Convention on the Harmonization and Simplification of Customs Procedures. Within this convention, it introduced the Authorized Economic Operator (AEO) program, and customs authorities focus on investing resources to inspect and supervise non-compliant businesses while facilitating compliant ones. To implement the Kyoto Convention, customs authorities of various countries have also rolled out programs similar to the pilot program supporting and encouraging businesses to voluntarily comply with customs law that the General Department of Vietnam Customs is currently implementing.
Subsequently, the WCO has launched the Authorized Economic Operator (AEO) program. To become an AEO, a business must first be a trusted partner of the customs authorities.
Sharing lessons learned during the implementation of the pilot program supporting and encouraging businesses to voluntarily comply with customs law, Mr. Nguyen Nhat Kha said that in terms of advantages, the program has been widely deployed throughout the customs sector. All activities of inspection, control, and declaration classification are centrally coordinated at the General Department of Vietnam Customs (Risk Management Department). For example, a business signs a memorandum of understanding at Hanoi Customs Department. If the business encounters difficulties from other provincial or city customs departments, there is consistent coordination from the General Department of Vietnam Customs to the provincial and city customs departments. Through the collected information, customs authorities issue warnings about common mistakes businesses make, thereby preventing violations. Customs authorities also proactively monitor and assist businesses in notifying customs duty payment deadlines, thus enabling them to be more proactive in their production and business activities, and to enhance their level of compliance.
In some local customs units, there is also close cooperation with businesses operating warehouses and ports to notify member businesses to support earlier delivery and faster cargo clearance.
During the implementation process, customs authorities have also encountered many difficulties such as a lack of information exchange software programs; a shortage of resources due to the need to allocate officials to monitor activities, track, and evaluate businesses. In addition, many member businesses and business leaders have not yet paid attention to the program and the contact person frequently changes, leading to difficulties in information exchange.
Research on building information exchange platform
According to Mr. Nguyen Nhat Kha, the Customs Department is currently researching and redesigning the IT system, including the VNACCS/VCIS system and 21 satellite systems. This includes addressing issues related to customs-business interactions, resolving difficulties, and issuing warnings.
The program to support and encourage businesses to voluntarily comply with customs law is just one activity of the Customs sector aimed at the business community.
In addition, every year, from the General Department level to the provincial and city customs departments, forums and conferences are organized. Accordingly, the difficulties faced by businesses, warnings, and the support provided by customs authorities to help businesses enhance their level of compliance and adherence to customs law are also regularly deployed.
Customs authorities encourage businesses to participate in the program, including large enterprises, manufacturing enterprises, small and medium-sized enterprises, especially non-compliant businesses to support them in becoming compliant businesses.
When officially implementing the program, all the practices that have brought success and positive results from the pilot phase will be continued.
For example, the experience of customs in some localities in exchanging information with warehouse, yard, and port businesses; the way in which customs sub-departments interact with export businesses.
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