The customs sector targets to reduce 30 % of administrative procedures, shorten time of goods declaration, and lower the proportion of goods subjected to inspections to the same level by developed countries in the region by 2011. Vietnam Business Forum had an interview with Mr Nguyen Van Can, Deputy Director of the General Department of Customs about this matter.
The customs sector had actively carried out Project No. 30 on administrative reform and boosted customs modernization, particularly e-customs in 2009. What are your comments on these activities?
The sector started professional customs modernization in 2006 and obtained the greatest achievements at all levels in 2009. The most prominent achievement in 2009 was customs administrative reform and modernization.
Firstly, the sector counselled the Ministry of Finance to issue the Decision No. 103/2009/QD-TTg dated August 12, 2009 on piloting e-customs as well as expanding applications into 10 cities and provinces nationwide from initial two localities of Ho Chi Minh City and Haiphong. The sector implemented the first phase of a project to modernize tax collection among tax, state treasury, customs and finance agencies at some local Customs Departments; Pilot connecting information system with some commercial banks of Vietnam Joint Stock Bank for Industry and Trade (VietinBank) and the Bank for Investment and Development of Vietnam (BIDV) in order to collect fees, taxes and import-export tariffs via e-commerce.
Secondly, the sector improved and expanded automation in application of information technology to customs professional competence. As of October, 2009, 81 % of customs procedures were conducted via e-customs, surpassing one % of the year’s target.
Thirdly, the sector improved a system of risk and income management as well as custom professional information processing. It also carried out a project to upgrade the risk management system; application of customs procedures in the 2007-2010 to serve risk management and reducing the rate of real goods examination to 17 %, reaching the set goal of 02/CT-BTC instruction.
Fourthly, to create favourable conditions for the business community, in 2009, the customs sector improved the management of procedures on customs and taxes and submitted them to the Ministry of Finance for revision and issuing key legal documents in controlling import and export sector.
In terms of administrative reform in line with Project No. 30 (simplifying administrative procedures in state management between 2007 and 2010 of the government), to date, the customs sector has issued a set of administrative procedures in the customs sectors, including 239 procedures. Carrying the second phase of Project No. 30, the General Department of Customs instructed its units to check and propose measures to simplify at least 30 % of current administrative procedures.
Besides positive signals, many enterprises still expected the customs sector’s more efforts for administrative reform and the form of e-customs declaration remains less attractive for the business community?
In reality, inefficiency and inconsistency in legal documents still cause big difficulties for modernising the customs sector. The process of pilot e-customs declaration remains slow compared to the set goals approved at Decision 103/2009/QD-TTg. The number of companies participating in the e-customs declaration is limited. A number of im-export firms does not pay due attention to raising their staffs’ capacity and IT improvement. Vietnam has no companies which specialize in providing services of certifying digital signals, while, many regulations are not consistent between manual and electronic procedures. However, these are just difficulties in the e-customs application. In the coming time, the customs sector will make more efforts to deal with the situation, offering more assistance for enterprises in the e-customs application.
However, the effective e-customs application Ho Chi Minh City and Haiphong is considered the biggest success of the Vietnamese customs modernisation. Since December 15, 2009, the General Department of Customs officially expanded e-customs application in 10 customs departments in cities and provinces under Decision 103/2009/QD-TTg issued on August 12, 2009, by prime minister. The departments are in Haiphong, Ho Chi Minh City, Hanoi, Danang, Dong Nai, Binh Duong, Lang Son, Quang Ninh, Ba Ria-Vung Tau and Quang Ngai. The move aims to follow international standards in customs management.
Vietnam suffered from bad impacts by the global economic downturn last year, affecting the customs sector’s budget collection. However, it estimated the collection of VND132 trillion in the year, surpassing 8.9% of the full-year target and up 5.2 % on-year. This was made thanks to much effort from the sector in simplifying customs and tax procedures on im-export goods in line with Resolution 30/2008/NQ-CP of the government. This also helps to increase the state budget and give more favourable conditions for businesses’ operations.
The customs modernisation is facing many challenges. What will the sector focus on this year?
In 2010, the sector will concentrate on intensifying the implementation of e-customs. However, the most important goal in the year is collecting VND142 trillion, exceeding 8 % of the figure set by the National Assembly. It will speed up the debt collection, reduce old debts and retire tax debts.
To fulfill these, the customs will pilot the collection via commercial banks. It will also launch comprehensive measures to prevent smuggling and enhancing administrative reform to facilitate im-export activities.
The sector will try to reach the set goals by the National Assembly, the government and the Ministry of Finance; boost administrative reform to lower real checking time at least by 1.5 times in the year compared to developed countries in the region and particularly it will cut and simplify over 30 % of announced administrative procedures.
Reported by Song Linh