Positive results after 2 years of supporting businesses to improve compliance level with customs laws

	Experience in compliance with customs laws of Japanese businesses
	Businesses in Dong Nai interested in program of voluntary compliance with customs laws

Deputy Director General of Vietnam Customs Luu Manh Tuong addresses the conference. Photo: Q.H

Many activities to support businesses

During the two years of piloting the Program to support and encourage businesses to voluntarily comply with customs laws, the Customs has organized many support activities for member businesses.

The Customs consults and instruct under commitments in the Memorandum of Understanding signed with member businesses of the Program.

The General Department of Vietnam Customs always considers the support for businesses as the responsibility of the Customs industry in supporting enterprises to overcome difficulties, as well as fostering the motivation for development of enterprises.

The whole industry has recorded 555 applications for support of difficulties from member enterprises of the Program, with 100% of the applications being processed, supported, and answered by provincial and municipal customs departments without arising problems.

Additionally, provincial and municipal customs departments have recognized the membership status of enterprises participating in the Program on the Customs’ system to effectively support. For example, the VCIS system helps Customs officers easily identify declarations of member enterprises, thereby supporting enterprises within the Program’s framework.

Additionally, local customs departments have fully implemented guidelines for implementing the program. Some units have arranged private areas to check documents, and assigned experienced officers to inspect goods.

The Customs also facilitates member enterprises in inspecting imported and exported goods by X-ray machine. Enterprises are allowed to propose to change the site for scanning goods for imported and exported goods to reduce transportation costs and resources; enterprises are allowed to propose the Customs to apply the measure of screening goods instead of manual inspection under the system's instructions or manual inspection instead of applying the measure of screening imported and exported goods.

The Customs has provided warning information and recommendations to member enterprises about factors affecting the compliance level of enterprises so that enterprises can proactively avoid violations of customs laws, ensuring the maintenance or improvement of the compliance level with the law. The information provision via the program’s email is quarterly performed by Customs Departments for member enterprises. This warning information has supported enterprises in preventing and avoiding unnecessary violations during the operation of enterprises.

Improving channel classification rate

At the conference, Deputy Director of Risk Management Department (the General Department of Vietnam Customs) Vu Thi Phuong said that after two years of implementation, 295 enterprises have participated in the Program and signed a Memorandum of Understanding with the Customs. Enterprises have realized practical benefits of participating in the Program, bringing the Customs-Business Partnership to a trusted partner. At the same time, it also helps enterprises manage and controll their import-export activities, and proactively avoid violations. This is an important factor to improve the legal compliance level of enterprises.

During two years of implementation of the pilot program, over 80% of member enterprises have improved or maintained the compliance level.

Specifically, 118 enterprises, accounting for 40% of the total number of enterprises, increased their compliance level from level 3, 4, 5 to level 2, 3, 4 (Level 2: High compliance; Level 3: Medium compliance; Level 4: Low compliance; Level 5: Non-compliance) because there were no violations during the participation or violations or the enterprise's violations exceeded the assessment period (365 days from the date of issuing the penalty decision).

135 enterprises, accounting for 45% of the total number of enterprises, maintain the compliance level, including 116 enterprises at level 2 and level 3, accounting for 39.3%.

42 enterprises, accounting for 15% of the total number of member enterprises, reduce the compliance level due to violations arising during the time participating in the Program or decreasing the number of declarations as required by Level 2 and Level 3.

Strive to officially implement the Program

At the conference, representatives of the Customs Departments: Hai Phong, Ba Ria-Vung Tau, Bac Ninh, Da Nang, Thanh Hoa, HCM City, Hanoi recognized that the Program has brought many practical benefits to the business community, as well as improved the management efficiency of the Customs.

Some departments proposed that in the near future, when the program is officially launched, it is necessary to build software to monitor, inspect and control from the General Department level to the department level to manage import and export enterprises as well as the program’s member enterprises. At the same time, there should be a training mechanism to improve capacity of customs officers and effectively implement the program.

Concluding the conference, Deputy Director General of the General Department of Vietnam Customs Luu Manh Tuong said that after two years of piloting implementation, the Program have contributed to making the Customs-Business partnership increasingly practical and specific. The increase and maintenance of the compliance level show the facilitation role of the Customs. The increase in the rate of Green channel declarations and the decrease in the rate of Yellow and Red channels are based on the compliance level of enterprises.

Deputy Director General Luu Manh Tuong requested central and local departments continue to give opinions, ensuring harmony between management and enforcement capacity.

The Deputy Director General directed the Risk Management Department to complete the report, which analyzes and evaluates the implementation results, changes in the business community, and effectiveness in customs management to propose official performance, fully disseminate benefits of the program to enterprises, thereby voluntarily and officially participating in the Program.

Based on the draft and opinions of units and the business community, the Deputy Director General requested the Risk Management Department analyze, evaluate, and report to the General Department of Vietnam Customs, and issue a decision to officially implement the Program on October 15, 2024, in which the Legal Department is in charge of appraisal; thereby, helping the Customs and the business community to unify the implementation.