Support businesses in assessing and measuring compliance

Customs expands compliance assessment

Mr. Nguyen Nhat Kha Director of Risk Management Department.

What are thenew points about the object of management, assessment of compliance, and classification of risk levels in customs operations?

- On November 15, 2019, the Ministry of Finance issued Circular No. 81/2019 / TT-BTC regulating risk management in customs operations. On August 26 this year the GDVC issued Decision No.2218/QD-TCHQ guiding the implementation and application of risk management in customs operations, according to which management, assessment of compliance and classification of risk levels in customs operations have seen some basic changes.

Regarding management, assessment, in the near future, the management and assessment of compliance and classification of risk levels in customs operations will be expanded to other objects who are customs declarants, including customs brokers; international postal services providers, international express delivery services providers; vehicle owners, person authorised by exit, entry or transit vehicle owners.

Enterprises will be classified into five compliance levels instead of the current 3 levels. Accordingly, the authorised economic operator and non-compliant enterprises remain, and compliant enterprises will be classified into threelevels: high compliance; medium compliance and low compliance.

Enterprises will be classified into nine levels instead of seven levels as current.

These changes will help classify enterprises more accurately andat the same time, form a customs management mechanism suitable for each group of enterprises.

In the near future, Customs will expand the object of compliance assessment to port, warehouse and yard operators.What does this mean?

- Article 39 of the Customs Law 2014 stipulates the responsibilities of the Customs authority in customs supervision, in which customs is responsible for “instruction and inspection of the compliance with regulations on customs supervisions of customs declarants, port, warehouse and yard operators export goods manufacturing facilities and related parties.”

Article 15 of Decree 08/2015/ND-CP on the risk classification, in which “1.The classification of risks in export, import, exit, and entry and transit activities is conducted based on the level of compliance with the law of customs declarant” and “3. Customs authority shall conduct risk assessment and classification for customs declarant, export, import, exit, entry and transit activities at different levels to apply the appropriate inspection and supervision measures”.

Therefore, compliance assessments for port, warehouse and yard operators will help the selection and application of appropriate customs inspection and supervision measures for import, export and transit goods. The regulations on the application of methods and levels of customs inspection and supervision are specified in Circular No. 81/2019/TT-BTC.

How is support to improve the level of compliance and encourage the customs declarants to voluntarily comply, and what are the benefits forparticipating businesses?

- For support to improve the compliance level and encourage the customs declarants to voluntarily comply,Customs will implement via the exchange between the customs declarant and customs on the customs portal; develop support programmes, encourage businesses to comply with customs law to guide enterprises to voluntarily comply and improve the compliance level with customs laws. At the same time, Customs regularly organizes guidance and training programmes on the implementation of the provisions of the custom law, helps enterprises understand regulations, procedures, and reduce risks of customs offences, supports enterprises in assessing and measuring legal compliance of enterprises to improve the efficiency of internal control of enterprises.

In addition, Customs has strengthened the customs-business partnership, signed memorandums of understanding, held dialogue conferences, seminars with organisations and business associations to publicise and help enterprises to understand compliance management, risk management and support enterprises to improve compliance level as well as towards voluntary compliance.

Enterprises participating in the programme are provided with information related to the level of enterprise compliance, error warning information and violations during customs procedures; answered questions and recommendations related to the assessment of legal compliance of enterprises by the customs, improving the compliance level of enterprises. On the other hand, when businesses participate in the customs-business partnership programmes, the customs shall work based on signing memoranda of understanding to apply the trade facilitation policy.

To apply new regulations, what solutions have been advised by the Risk Management Department to the GDVC?

- The department has advised the leaders of the GDVC to publish and train Circular No. 81/2019/ T-BTC and Decision 2218/QD-TCHQ for departments of the GDVC, provincial and municipal customs departments and the business community.

Promulgating the 2020 Information Collection Plan, which focuses on collecting information for customs declarants and port, warehouse and yard operators.

Directing the Customs Information Technology and Statistics Department to upgrade systems to serve the implementation of new contents in Circular No. 81/2019 / TT-BTC and Decision No. 2218 / QD-TCHQ.