Specialized inspection has not really facilitated enterprise

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Mr. Ngo Minh Hai, Deputy Director of Customs Control and Supervision Department (under the General Department of Vietnam Customs).

Through the management of the Customs, how do you assess the achievements of the reform of specialized management and inspection for import and export goods over the past time?

- In fact, there are some points in the specialized management and inspection that have not really facilitated the imports and exports. Therefore, from 2014 to 2018, the Government has issued Resolutions 19/NQ-CP on tasks and measures to improve the business environment and enhance national competitiveness, including contents on specialized management and inspection. Over the past time, ministries have actively reformed procedures related to specialized inspection. However, in fact, we frankly realize that the specialized inspection has not really been facilitated well, and is still a barrier for import and export activities, relating to the improvement of cross-border trade transaction index.

First, the Customs authority has implemented many documents regulating on specialized management and inspection. In which, there are many issued lists (checklist, license, conditions for imports and exports) that have no HS code, standards for inspection for some commodities have not been issued, and there are many overlaps in inspection.

Second, the specialized inspection is mainly implemented by manual method, the IT application to the inspection has not been strongly implemented; agencies and units in charge of specialized inspection still inspect shipments many times, lengthening the Customs clearance time.

Third, regarding facilities and human resources for specialized inspection. Although many legal documents stipulate that the specialized inspection is implemented at the border gate, in fact, only the Customs, Border Guard and Quarantine forces are located at border gates. Almost all other forces related to specialized management and inspection are not located at border gates, so that the specialized inspection is mainly conducted inland. The time for inspection is still in the Customs clearance stage.

Fourth, regarding enterprises, many enterprises do not grasp regulations and requirements on specialized management and inspection, leading to passive implementation of regulations in carrying out regulations. Some enterprises took advantage of loopholes in regulations on specialized inspection to not accomplish with regulations.

Fifth, the restriction in the coordination of information exchange among agencies related to specialized inspection, especially, the information exchange among agencies related to the specialized inspection and inspection units with the Customs authority.

These are the reasons that although the specialized inspection has obtained certain changes, it has not really facilitated enterprises.

In your opinion, in order to implement in accordance with the target set by the Government and the Prime Minister for reducing the rate of specialized inspection to 10%, what are the solutions that need to be implemented by ministries and sectors?

- In order to obtain the Government’s targets set out in Resolution 19/NQ-CP in 2018, in my opinion, ministries need to review and supplement documents related to the specialized management and inspection.

Three years ago, Decision 2026/QD-TTg assigned ministries and sectors to amend 87 documents, but the statistic indicated that the amendments and supplements were behind the set target. The first year of amendment and supplementation was 27%, the second year was 40%, and 2018 was 95%. However, in the implementation of specialized management and inspection, ministries and sectors need to review legal documents and specify HS codes in the pre-clearance inspection. Currently, the statistics from the Customs indicate that there are 164 lists of goods related to specialized management and inspection, but 29 lists do not have HS codes.

In addition, ministries and sectors need to issue soon, standards for inspection. According to the latest statistics from the Customs, 25% of commodities subject to quality inspection lack standards for inspection. For example, in the field under the management of the Ministry of Natural Resources and Environment, implementing the Prime Minister’s Decision 73/2014/QD-TTg regulating the list of scraps allowed to be imported from abroad as raw materials for production, but currently, 50% of commodities in this list do not have standards for inspection.

In order to improve the efficiency of specialized inspection, the Ministry of Finance has coordinated with relevant ministries to submit the Government for the approval of regulations on carrying out Customs procedures via NSW, ASEAN SW and specialized inspection for import and export goods.

Another important solution was to change the inspection method based on the application of risk management, violation and risk assessment of goods and enterprises into application of management method for not inspecting all goods, but the detection rate is very low.

Enhancing resources for the inspection and facilities and necessary resources in accordance with area to inspect right at the border gates.

Reduce 4,400 goods items which must be managed and taken for specialized inspection VCN - After three years of implementing measures to improve the efficiency and effectiveness of specialized inspection ...

Strengthening propaganda, because over the past time, many enterprises did not understand the regulations related to specialized management and inspection, so that they were confused when carrying out procedures, wasting a lot of time. Enterprises do not have an unit in charge of inspection.

In addition, the solution using the guarantee mechanism to facilitate businesses also needs to be studied and applied. This solution has been applied by some developed countries in the world. Currently, there is a guarantee mechanism on tax, but the guarantee mechanism can be extended to documents related to the facilitation of import and export activities.

Thank you, Sir!