Technology is pivotal in modern supply chain management

VCN - The 2023 WCO Technology Conference and Exhibition takes place from October 10-12 in Ha Noi, Viet Nam. Under the theme “Embracing the Digital Age: Leveraging Technology, Fostering Innovation, and Nurturing the Next Generation of Customs Professionals”, this flagship event gathers more than 1,200 registered participants from 95 countries. Vietnam Customs News has an interview with Mr. Dan Garcia - US Security Specialist about the importance of technology application in supply chain management.
Customs sector needs to pioneer in leveraging technology and digital transformation: Deputy PM Tran Luu Quang Customs sector needs to pioneer in leveraging technology and digital transformation: Deputy PM Tran Luu Quang
WCO Secretary General: Placing people at the heart of the development WCO Secretary General: Placing people at the heart of the development
Technology is pivotal in modern supply chain management
Vietnam Customs News reporter interviews Mr. Dan Garcia - US Security Specialist. Photo: Tran Anh

Could you tell us the importance of technology application in supply chain management?

Technology is pivotal in modern supply chain management, enhancing efficiency, transparency, and security. Advanced technologies like AI, IoT, and DLT Technology facilitate real-time tracking, predictive analytics, and automation, leading to informed decision-making and reduced operational costs. In the context of security, technologies enable the identification and mitigation of risks, ensuring the integrity and safety of goods in transit.

Could you tell us about the trend of technology application in supply chain management by Customs administrations around the world and U.S. Customs and Border Protection (CBP)?

Customs administrations globally, including the U.S. CBP, are increasingly leveraging technologies to facilitate and secure international trade. Automated targeting tools, large-scale X-ray and gamma-ray machines, and radiation detection devices are integral in the Container Security Initiative (CSI) for example. These technologies enhance the identification, pre-screening, and evaluation of high-risk containers, ensuring threats are mitigated before reaching U.S. shores. AI and machine learning are also emerging trends, enhancing predictive analytics and risk assessment. Biometrics are also helping to authenticate people accurately and quickly. Throughout the world, at points of entry, we can welcome citizens and visitors to our countries in automated stalls where they are processed quickly in a highly automated fashion.

How do you assess the role of Customs administration in supply chain management?

Customs administrations play a crucial role in regulating, facilitating, and securing international trade. They enforce legal and regulatory frameworks, ensuring compliance with import/export regulations. In the context of supply chain security, initiatives like the AEO and the CSI programs underscore the role of customs in collaborating internationally to identify and mitigate potential threats, ensuring the seamless flow of global trade while safeguarding national security.

Customs can have a very specific and powerful role in Supply Chain Management in that the border is highly correlated to two omni metrics that are very important to the success or failure of any supply chain. Delays or unplanned variance adversely impact these key financial metrics. Conversely, these two metrics are vastly improved if we have a border that enables volume and velocity across its frontier.

Could you share more details about integrating e-commerce supply chains into established AEO models to ensure borders remain scalable, secure, and efficient?

Integrating e-commerce into AEO (Authorized Economic Operator) models involves enhancing security and efficiency amidst the growing volume of online trade. It addresses challenges like data quality, technology integration, and international cooperation. The approach involves leveraging technologies like AI and DLT for real-time tracking, data analytics, and risk assessment. Regulatory frameworks are updated to address e-commerce challenges, ensuring duty and tax collection, security, and consumer protection while facilitating fast, reliable deliveries. We also need to be able to identify specific entities regardless of size through a combination of advanced technologies so that even individual persons who are involved in e-commerce have a global trade ID.

Could you tell me about the implementation of the CSI initiative by CBP and the role of Vietnam Customs in the Global Container Control Program? Do you have any recommendations for Vietnam Customs?

CSI, operational at 61 ports worldwide, including Asia, has made significant strides. Remarkably, CSI now covers a little over 86 percent of all maritime containerized cargo destined for the United States, marking a significant milestone in enhancing global maritime security. U.S. CBP officers collaborate with host customs administrations to screen high-risk containers using advanced technology.

Vietnam Customs can play a vital role in this international security network. Although not explicitly listed among the 61 CSI ports, they can adopt and implement similar stringent security protocols and technological innovations to ensure the security of containerized cargo passing through their jurisdiction. The core principles of the CSI Program are:

1. Identification of High-Risk Containers: CBP employs sophisticated automated targeting tools, advanced information, and strategic intelligence to pinpoint containers posing potential terrorist risks.

2. Pre-Screening and Evaluation: Containers are evaluated and inspected as early as possible in the supply chain, typically at their port of departure, ensuring no threats reach the U.S. shores.

3. Technological Application: Large-scale X-ray and gamma-ray machines, along with radiation detection devices, are employed to swiftly yet thoroughly screen high-risk containers, ensuring the seamless flow of trade.

My recommendations for Vietnam Customs include enhancing the integration of technology for container screening and boosting data quality and analytics capabilities for improved risk assessment. Concentrate heavily on container integrity as well as screening. Collaborating internationally for intelligence sharing and adopting best practices can also fortify Vietnam’s stand in global supply chain security, aligning with the rigor and efficacy of the CSI initiative.

Thank you so much!

By Hoang Loan

Related News

EU partners no longer

EU partners no longer 'lenient', Vietnam must adapt through ESG policies

VCN - Legal and economic experts are calling for Vietnam to revamp its policies to align with stringent sustainable development requirements set by European Union (EU) partners.
Plastic exporters interested in converting to recycling technology

Plastic exporters interested in converting to recycling technology

VCN - The Vietnamese plastics industry is facing major challenges in terms of plastic waste and recycling needs. Secretary General of the Vietnam Plastics Association Huynh Thi My (pictured) shared important information about the transformation in production of plastics enterprises to meet increasing export demands.
WCO Permanent Technical Committee Meeting in Belgium: The managerial mark of the Vietnamese customs representative

WCO Permanent Technical Committee Meeting in Belgium: The managerial mark of the Vietnamese customs representative

VCN - For 3 days (from 23-25/10/2024), at the headquarters of the World Customs Organization (WCO) in Brussels (Belgium), the 245th/246th meeting of the Permanent Technical Committee (PTC) was successfully held under the chairmanship of Ms. Nguyen Thi Vinh Hoai, Counselor, Embassy of Vietnam in Belgium, representative of Vietnam Customs, Chairwoman of PTC.
Sharing responsibility for ensuring security and safety of the supply chain

Sharing responsibility for ensuring security and safety of the supply chain

VCN – Post - clearance audit is carried out in a planned, focused and key manner, avoiding widespread and ineffective inspections, thereby creating convenience for the business community and improving the effectiveness of state management of customs.

Latest News

Increase to three lanes for import and export across Kim Thanh Border Gate, Lao Cai

Increase to three lanes for import and export across Kim Thanh Border Gate, Lao Cai

VCN – The number of lanes for imports and exports at Kim Thanh International Land Border Gate, Lao Cai province, will be increased from two lanes to three lanes from November 1, 2024.
Bac Ninh Customs encourages customs brokerage services

Bac Ninh Customs encourages customs brokerage services

VCN - Bac Ninh Customs Department recommends supporting compliant customs brokers to approach large enterprises to have the opportunity to sign contracts and fully perform the role of customs brokers as prescribed.
Terminate Pilot Project on Importing Medicinal Herbs across Chi Ma Border Gate

Terminate Pilot Project on Importing Medicinal Herbs across Chi Ma Border Gate

VCN - On October 30, 2024, the Government issued Resolution No. 210/NQ-CP on terminating the Pilot Project on Importing Medicinal Herbs under Resolution No. 111/NQ-CP dated September 23, 2021 of the Government on implementing the Pilot Project on Importing Medicinal Herbs across Chi Ma Bilateral Border Gate (Lang Son).
Perfecting the law on import and export tax towards exemption and reduction for the right subjects

Perfecting the law on import and export tax towards exemption and reduction for the right subjects

VCN - According to Deputy Director General of Vietnam Customs Luu Manh Tuong, there are still many issues to take full advantage of Free Trade Agreements (FTAs), including the need to perfect legal policies on import and export taxes in the direction of strict management and exemption for the right subjects.

More News

Director of Dong Nai Customs engages monthly with enterprises

Director of Dong Nai Customs engages monthly with enterprises

VCN - On November 1, Dong Nai Customs held an online Customs-Business Dialogue Conference attended by representatives from the Taiwanese (China), Korean, Japanese, and European business associations in Vietnam, alongside 83 import-export enterprises operating in Dong Nai province.
Ha Nam Ninh Customs gathers feedback from the business community

Ha Nam Ninh Customs gathers feedback from the business community

VCN – According to Ha Nam Ninh Customs Department, considering enterprises as cooperative partners not only facilitates import and export activities but also contributes to improving the investment and business environment, meeting integration requirements.
Facilitating trade and bolstering customs enforcement at Vinh Xuong border crossing

Facilitating trade and bolstering customs enforcement at Vinh Xuong border crossing

VCN - With the characteristics of managing international border gates with both waterways and roads, Vinh Xuong International Border Gate Customs Branch (An Giang Customs Department) always has flexible solutions to ensure both convenience and strict control of import and export goods.
3 items have a big impact on the budget revenue of Ho Chi Minh City Customs

3 items have a big impact on the budget revenue of Ho Chi Minh City Customs

VCN - Automobiles, petroleum, and steel are three items that account for nearly 35% of the total state budget revenue of Ho Chi Minh City Customs Department. Therefore, fluctuations in these revenue sources will greatly impact the state budget revenue of the entire Department.
Quang Ninh Customs collects 85.75% of the budget revenue through the seaport area

Quang Ninh Customs collects 85.75% of the budget revenue through the seaport area

VCN - In the first 9 months of 2024, Quang Ninh Customs Department collected VND 13,885.23 billion in revenue collection, reaching 111.08% of the assigned estimate (VND 12,500 billion), reaching 106.81% of the target assigned by Quang Ninh province (VND 13,000 billion), an increase of 8.67% over the same period in 2023
Regulating goods across Huu Nghi International Border Gate during peak times

Regulating goods across Huu Nghi International Border Gate during peak times

VCN – In order to reduce the pressure on customs clearance of import and export goods for the international border gate pair during peak times, the management agency of Lang Son (Vietnam) has just discussed with the management authority of Pingxiang (China) to strengthen coordination in regulating the means of transporting goods of enterprises on both sides.
Kien Giang Customs’ revenue reaches over 190% of target

Kien Giang Customs’ revenue reaches over 190% of target

VCN – As of October 15, Kien Giang Customs Department collected VND 116.34 billion, reaching 193.89% of the target, the department reports.
Quang Ninh Customs seeks solutions to promote import and export

Quang Ninh Customs seeks solutions to promote import and export

VCN - Quang Ninh Customs Department has made efforts to synchronously deploy solutions to accompany, support and resolve difficulties for businesses, contributing to improving import and export activities through the area.
Businesses get a fair hearing under Customs

Businesses get a fair hearing under Customs' new 'three no' rule

VCN - The General Department of Vietnam Customs requires units to implement the 3 no principles: "don't say no, don't say difficult, and don't say yes but don't do it" when businesses have recommendations and proposals.
Read More

Your care

Latest Most read
Increase to three lanes for import and export across Kim Thanh Border Gate, Lao Cai

Increase to three lanes for import and export across Kim Thanh Border Gate, Lao Cai

VCN - On November 4, the representative of Lao Cai Border Gate Customs Branch said that the lane increase aims to improve customs clearance capacity across the area.
Bac Ninh Customs encourages customs brokerage services

Bac Ninh Customs encourages customs brokerage services

VCN - Bac Ninh Customs Department recommends supporting compliant customs brokers to approach large enterprises to have the opportunity to sign contracts and fully perform the role of customs brokers as prescribed.
Terminate Pilot Project on Importing Medicinal Herbs across Chi Ma Border Gate

Terminate Pilot Project on Importing Medicinal Herbs across Chi Ma Border Gate

VCN - Accordingly, from October 30, the import of medicinal herbs across the border gate will be complied with regulations on importing medicine and medicinal ingredients in Clause 7, Article 91 of Decree 54/2017/ND-CP detailing a number of articles and m
Perfecting the law on import and export tax towards exemption and reduction for the right subjects

Perfecting the law on import and export tax towards exemption and reduction for the right subjects

According to Deputy Director General of Vietnam Customs Luu Manh Tuong, there are still many issues to take full advantage of FTAs including the need to perfect legal policies on import and export taxes
Director of Dong Nai Customs engages monthly with enterprises

Director of Dong Nai Customs engages monthly with enterprises

Dong Nai Customs held an online Customs-Business Dialogue Conference attended by representatives from the Taiwanese (China), Korean, Japanese, and European business associations in Vietnam on November 1
Mobile Version