Analysis the effectiveness of application the electronic customs at quang ninh customs department

i
Analysis the effectiveness of application the Electronic Customs at Quang
Ninh Customs Department
Abstract: This thesis has conducted analysis on the situation and evaluation
of electronic customs operation in Quang Ninh Customs Department.
Through the combination of SWOT analysis and analysis of the result from
questionnaire survey, the research clearly points out many factors which
contribute to the efficiency of electronic customs operation, specificially as
follows: enterprises highly understand the capacity and responsibility of
customs authorities, enhancement of consistency, transparency and security of
electronic customs operations; there are factors that actively support customs
authorities (i.e. salary and incentive policies for customs officials); business’s
readiness and capacity. By analysing strengths and weaknesses in the SWOT
matrix, this research also finds out opportunities and threats in regards the
application of electronic customs procedure. On the basis of combining the
Strengths, Weaknesses, Opportunities and Threats of the inspection after
customs clearance activities, this research recommends some solutions to
improve the effectiveness of this customs operation in Quang Ninh Customs
Department.
ii
CONTENTS
1.The necessary of the study 1
2.Literature review 3
3.Objectives of the research 5
4.Object and scope of researchh 6
- Electronic customs operations in Quang Ninh Customs Department. -
Realistic survey and appraisal on e-customs declaration of enterprises which
has import and export activities through the Customs Department of Quang
Ninh province Data of this survey is collected from 2010 to 31st December
2012 6
5. The method of SWOT studies in evaluating the effectiveness of public

managementresearch 6
6. Expected contributions of the thesis 7
7. Layout of the thesis Besides, the introduction, conclusion and list of
references, the thesis is structured into three chapters Chapter 1: General
theoretical issues regarding electronic customs Chapter 2: Reality of e-customs
performance in the operations of Quang Ninh Customs Department 7
Chapter 4: Evaluate effectiveness of the e-customs procedure in Qquang Nninh
customs department by swot analysis Chapter 43: ViewsConclusdtion,
solutions and policy recommendations 7
CHAPTER I: GENERAL THEORETICAL ISSUES ON E- CUSTOMS
OPERATIONS 8
1.1. Concepts, characteristics, roles of e-customs procedures in customs
operations 8
1.1.1. Concepts 8
1.1.2 Characteristics of customs administration in customs operations nowadays 9
1.1.3 Role of e-customs procedure in customs operations 10
1.1.4.1. The increase number in import and export goods has caused the
urgent need for reducing the clearance time of goods 11
11
1.1.4.2. Requirements on customs management of the State and of business
community 12
1.1.4.4. Ensuring strict management, adapting to the rapid development of
international trade 13
1.1.4.5. Meet the requirements of Vietnam Customs in the new situation 14
1.2. Concepts, impact factors and criteria to evaluate the effectiveness of e-
custom in customs operations 14
1.2.1 The concept of e-customs efficiency in customs operations 14
1.2.2 Factors affecting the efficiency of e-customs in customs operations 15
1.2.2.1. Internal factors 15
1.3. Experience on improving the efficiency of electronic customs procedures in

customs operations in some foreign countries 32
iii
1.3.1 Experience on implementation of e-customs procedures in foreign some
countries 32
1.3.1.1. Japan 32
1.3.1.2. Korea 33
1.3.1.3. Malaysia 35
1.3.1.4. Thailand 37
1.3.2. Lessons for Vietnam Customs in implementing electronic customs
procedures 39
1.3.2.1. model of e-customs procedures 39
1.3.2.2. Implementation methods Most countries execute pilot implementation
before official implementation. For example: 39
1.3.2.3. Performance 40
1.3.2.4. Conditions for implementation 40
1.3.2.5. Benefits of e-customs procedures 41
1.3.2.6. Difficulties during implementation 41
1.3.2.7. The characteristics of each country 42
CHAPTER II: REALITY OF ELECTRONIC CUSTOMS EFFECITVENESS
IN CUSTOMS OPERATIONS AT QUANG NINH CUSTOMS
DEPARTMENT 43
2.1. Introduction about Quang Ninh Customs Department 43
2.1.1. The establishment and development process 43
2.1.2. Orginazational Structure 43
2.2. Reality of e-customs procedure management in customs operations at
Quang Ninh customs department 45
2.2.1.1. Reality of e-customs procedures in the operations of Quang Ninh
Customs Department 45
2.2.1.2. Some achievements when applying e-customs procedures in customs
operations at Quang Ninh Customs Provinces 57

2. 3. Assessing the effectiveness of e-customs procedures in the operations of
Quang Ninh Customs Department 61
2.3.1 The impact of e-customs procedures on customs operations at Quang Ninh
Customs Department 61
2.3.1.1. Electronic customs procedures change the management thoughts,
improve risk management and post-clearance inspection, shorten customs
clearance time, proceeding to standardize customs management regulations
under the revised Kyoto Convention 61
2.3.1.2. Level, possibility of customs control 72
2.3.1.3. The capacity of customs officers in the implementation of electronic
customs procedures 75
CHAPTER III: Evaluate effectiveness OF THE E-CUSTOMS PROCEDURE
IN QUANGNINH CUSTOMS DEPARTMENT by SWOT ANALYSIS 86
3.1. Rationales for the application of the SWOT method in public governance
effectiveness analysis 86
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3.2. Application of SWOT analysis to assess the effect of changes in public
governance: In case of change in customs process from traditional methods to
e-customs methods in Quang Ninh Customs Department 88
3.2.1. Results of the questionnaire survey 91
3.2.2. Results of questionnaires survey acquired from enterprises using electronic
customs in Quang Ninh Province 98
Chapter IV: VIEWSCONCLUTION AND SOME, SOLUTIONS, AND
POLICY RECOMMENDATIONS 108
3.4RECOMMENDATIONS 118
REFERENCES 122

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LIST OF TABLES
Table 1.1 : Exports and imports of goods in the country from 2008 to 2012

Error: Reference source not foundTable 1.1: Exports and imports of goods in
the country from 2008 to 2012
Table 1.2: Exports and imports of goods through Customs department of
Quang Ninh province from 2008-2012 Error: Reference source not
foundTable 1.2: Exports and imports of goods through Customs department
of Quang Ninh province from 2008-2012
Table 2.1 : Process of implemeting the VNACCS / VCIS receipt and
localization
system
Error: Reference source not found
Table 2.2: Status of the implementation of inspection at the Customs
Department of Quang Ninh Province in the last few years Error: Reference
source not foundTable 2.2: Status of the implementation of inspection at the
Customs Department of Quang Ninh Province in the last few years
Table 2.3: Results of the fight against smuggling , illegal transportation of
goods across the border and customs violations at the Customs Deparment of
Quang Ninh province from 2010-2012 Error: Reference source not found
Table 2.4: Results of the survey on the level of importance and the level of
assessment of Customs port block Error: Reference source not found
Table 2.5: Results of the survey on the level of importance and the level of
assessment of enterprises of Customs road blocks . Error: Reference source not
found
Table 2.6: Results of the survey on the level of importance and the level of
assessment of Customs office block Error: Reference source not foundTable
2.6: Results of the survey on the level of importance and the level of
assessment of Customs office block
vi
Table 2.7: Results of the survey on the level of importance and the level of
assessment of various kinds of companies Error: Reference source not
foundTable 2.7: Results of the survey on the level of importance and the

level of assessment of various kinds of companies
Table 3.1: Listing of Internal factors in descending order of perceived
Importance
Table 3.2: Listing of Internal factors in descending order of perceived
Performance
Table 3.3: Listing of Internal factors in descending order of perceived
Performance
Table 3.3: Listing of Internal factors in descending order of perceived
Performance
Table 3.4: Listing of Internal factors in descending order of perceived
Importance
Table 3.5: List of Internal factors in descending order on perceived
Performance
Table 3.6: List of internal factors sorted in descending order on perceived
performance gaps
vii
LIST OF FIGURES, CHARTS
Figure 1.1: Model of connecting customs declaration systemof enterprises
with the electronic customs system of the authorities through social
networking infrastructure Error: Reference source not foundFigure 1.1: Model
of connecting customs declaration systemof enterprises with the electronic
customs system of the authorities through social networking infrastructure
Figure 1.2: Model of the focal point to receive information as the basis for
customs clearance of import and export goods of the electronic clearance
system Error: Reference source not foundFigure 1.2: Model of the focal point
to receive information as the basis for customs clearance of import and export
goods of the electronic clearance system
Figure 1.3: Diagram of data information processing of traditional customs
Error: Reference source not found
Figure 1.4: Diagram of processing centralized data and i nformation at the

Department in the pilot phase of electronic customs procedures Error:
Reference source not foundFigure 1.4: Diagram of processing centralized data
and information at the Department in the pilot phase of electronic customs
procedures
Figure 1.5: Diagram of processing centralized data and i nformation at the
General Department in the implementation phase of electronic customs
procedures Error: Reference source not foundFigure 1.5: Diagram of
processing centralized data and information at the General Department in the
implementation phase of electronic customs procedures
viii
Figure 1.6: Model of connecting the VNACCS with IT systems within and
outside the Customs to implement the national one- doorcustoms mechanism
Error: Reference source not found
Figure 2.1: Diagram of the organizational structure of the Customs
Department in Quang Ninh Province Error: Reference source not found
Figure 2.2:Model of transfering the technology of Japanese Customs for
Vietnam Customs Error: Reference source not found
Figure 2.3: The process of traditional customs Error: Reference source not
foundFigure 2.3: The process of traditional customs
Figure 2.4: The process of e-customs procedures Error: Reference source not
foundFigure 2.4: The process of e-customs procedures
Figure 2.5: Managing risk profile Error: Reference source not foundFigure
2.5: Managing risk profile
Figure 2.6: Model of the over-view system Error: Reference source not
foundFigure 2.6: Model of the over-view system
Figure 2.7: Model of centralized data processing Error: Reference source not
foundFigure 2.7: Model of centralized data processing
Chart 2.1: Chart on the growth rate of the enterprises registered to participate
in e-customs procedure Error: Reference source not foundChart 2.1: Chart on
the growth rate of the enterprises registered to participate in e-customs

procedure
Chart 2.2: Distribution percentage of customs declaration at the customs
department of Quang Ninh Province Error: Reference source not found
ix
Chart 2.3: Compare the ratio of percentage of e-customs declaration over %
rate of return E / total import and export declarations with targets assigned by
the General Department of Customs Error: Reference source not found
Chart 2.4: Compare the percentage of turnover from e-customs procedure
over the total import/export turnover with targets assigned by the General
Department of Customs. Error: Reference source not foundChart 2.4:
Compare the percentage of turnover from e-customs procedure over the total
import/export turnover with targets assigned by the General Department of
Customs.
x
Chart 3.1: Trade growth và global GDP 1950-2010 (%) Error: Reference
source not found
1
OPENING
1. The necessary of the study
As a government agency to provide "public service" in customs;
reform, development and modernization is the urgent requirement of the
Government to the customs. In addition, Customs is subject to external
pressure, which requires a comprehensive change in order to respond quickly
to the increasing needs of international trade and the challenges of
increasingly complex environment due to integration and globalization.
With the characteristics of border management agency, management
and “public service" provision of Customs have a powerful impact on the
facilitation of international trade. So, the first pressure on the customs is the
rapid development of international trade as a result of the application process
of advances in science, technology and especially information technology in

manufacturing, trade and services at international level. The change in the
commercial method makes the trade almost become "no gap" and it happens
almost "every time and every where". This process led to the demand of labor
division, increasing specialization within the scope of international trade. The
quantity and quality of participants in different roles ensure the increasing
growth of supply chain of international goods.
Participation in world trade helps countries to boost economic growth.
In fact, countries with rapid integration into global economy are the most
likely to achieve high growth rates. Globalization and regional integration has
made commodity markets and services expand increasingly and seem to have
no boundaries, creating markets for international trade globally. The number
of international treaties and agreements related to trade is increasing rapidly
as well as the formation of FTAs, customs unions block, the axis of
development, economic Cooperation forums and even higher level of
2
integration such as the European Union.This means that the non-tariff barriers
and tariffs must be increasingly reduced and removed. Besides, countries
have to commit to the reform process to ensure compliance with international
standards, minimize control activities to ensure maximum to facilitate
commercial activities within the framework of these treaties and agreements.
Certainly, customs procedures are considered to be non-tariff barriers,
so it needs to be changed, renew the procedures according to international
standards and meet international commitments. This is an urgent task but full
of challenges to the customs when carrying out reforms in the path of
integration, especially for the least developed countries or developing
countries whereas resources for reforms are too limited.
In short, if the customs do not make changes in time, it will not only
meet with commercial development, but also become a major barrier to trade.
It will be unable to deal effectively with the negative effects as wholesale
fraud, fraud, terrorism, and consequently will not accomplish the task of

protecting revenues and public benefits, inadvertently prevent the growth of
national economy.
Facing with this situation, for the past few years, Vietnam Customs has
not stopped promoting customs reform, development and modernization. In
particular, the robust application of science and technology to perform
customs procedures is considered to be the core mission, a breakthrough in
the reform of administrative procedures and has been specified in the Master
Plan of customs reform, development and modernization.Since 2005, the
Prime Minister signed Decision No.149/2005/QD-TTg issued on June 20,
2005 to allow pilot e-customs procedures at the Customs Departments in Ho
Chi Minh city and Hai Phong City. With the results obtained after a time of
execution, on 12 August 2009, the Prime Minister issued Decision No.
103/2009/QD-TTg to amend and supplement a number of articles of the
Decision No. 149/2005/QD-TTg on the pilot implementation of e-customs
3
procedures, allowing the pilot implementation of e-customs procedures at 10
customs departments in cities/ provinces among 33 customs departments
across the country. Then continue to implement at other customs departments
of other cities/ provinces at the request of Minister of Finance. By 23
rd
October, 2012, the Government issued Decree No. 87/2012/ND-CP detailing
a number of articles of the Law of Customs regarding e-customs procedures
for commercial import and export goods, terminating the pilot phase and
officially implementing e-customs procedures all over the countries.
Along with the general trend of the customs sector, in recent years,
Quang Ninh Customs Department has made great efforts in adopting e-
customs procedures in customs operations, creating fundamental changes in
management, reducing paperwork in customs documents, while maintaining
tight control of compliance with customs legislation of declaration.
However, this method includes many new techniques to apply in

customs operations, thus the implementation has coped with many difficulties
and challenges, especially problems in awareness, knowledge, application
skills, promoting propaganda and encouraging enterprises to participate in
because many businesses and individuals who have got used to work in
traditional ways, are afraid of changes. Meanwhile, international integration
and globalization including customs procedures require simplicity, harmony
with international standards based on the application of information
technology, centralized data processing and e-customs procedures.
Consequently, as an officer in customs, I chose the topic "Analysis the
effectiveness of application the Electronic Customs at Quang Ninh Customs
Department" for my Laws (Public Management) graduation thesis.
2. Literature review
During the renovation period, in Vietnam, there have been many
research works on customs law, state management by customs law in order to
meet the requirements of accelerating the process of international economic
4
integration, modernizing and reforming more strongly the state administrative
procedures of customs, facilitating for import and export operations,
immigration, transit, tourism; promoting foreign investment to ensure the
implementation of state policy on developing economy- culture- society,
science - technology, international cooperation and exchanges, to defend our
national sovereignty and security, the legal rights and benefit of the
government, businesses and individuals. Research works on the field of
customs are expressed in various levels from the ministry-level projects,
seminars to doctoral thesis and master thesis.
In the world, we also have seen a number of studies on e-customs such
as the research "Exporting e-Customs to developing countries: a semiotic
perspective" of Stefan Henningsson & Niels Bjorn-Andersen. Previous
studies indicated two important issues of e-customs.
The first is faciliating commerce by applying information technology

system and supply chain services for companies; the second is analyzing cost
and benefit of system improvements. The role of customs as "gatekeepers" is
changing due to the development of international trade, tariffs and non-tariff
barriers reduction, the increase in crime and threat of terrorism and the
expansion of different types of logistics. However, these researches have only
studied on the application of e-customs at international level without
connection to the social - economic and infrastructure conditions of Vietnam
in general and Quang Ninh province in particular.
Based on the theoretical framework of e-customs, legal documents and
Vietnam commitments to electronic customs, the author uses the SWOT
analysis method to assess the effectiveness of e-customs implementation at
Quang Ninh Customs Department, and then propose recommendations to
improve the effiency of electronic customs.
5
3. Objectives of the research
- Execute a comprehensive and systematic research on the effectiveness
of e- customs application in customs operations:
+ Currently applied e-customs model;
+ Capacity of customs officials;
+ clearance time of goods;
+ Enterprises perception of e-customs;
+ Benefits that enterprises get from electronic customs declaration;
+ The interaction between enterprises and customs offices.
- Proposals to improve effectiveness of e-customs procedures:
+ Quality of infrastructure to implement electronic customs
declarations;
+ Training and guidance for customs officers in electronic customs
declarations;
+ Improve the performance of enterprises.
- To achieve those aims, the project needs to:

+ Clarify some theoretical and practical issues on the efficiency of e-
customs application in customs operations. On a theoretical basis of e-
customs effectiveness in customs operations, this thesis provides criteria to
evaluate the performance of e-customs application and conditions to ensure
the management capability.
+ Do researches, surveys to assess the application of electronic customs
procedure in Quang Ninh province, define difficulties, obstacles and
limitations as well as identify potential risks and the cause of those risks in
customs operations;
+ Propose solutions and recommendations to improve the efficiency of
e-customs application in customs operations in Quang Ninh, limit to the
6
lowest level of its adverse effectst, contributing to the development objectives
of the Customs before the process of international economic integration.
4. Object and scope of researchh
- Electronic customs operations in Quang Ninh Customs Department.
- Realistic survey and appraisal on e-customs declaration of enterprises
which has import and export activities through the Customs Department of
Quang Ninh province
Data of this survey is collected from 2010 to 31
st
December 2012.
5. The method of SWOT studies in evaluating the effectiveness of public
managementresearch
The origin of the SWOT analysis (Strengths, Weaknesses,
Opportunities and Threats) is the SOFT analysis(Satisfactory, Opportunity,
Fault, Threat), which is the result of studies on business planning conducted
by Stanford Research Institute from 1960 to 1970. The SOFT analysis was
presented in a conference in Zurich in 1964, Urick and Orr changed and
called it SWOT (Humphrey, 2005). Then Weihrich (1982) modified SWOT

(or TOWS) into a matrix, to harmonize between internal factors (ie strengths
and weaknesses) of an organization and its external factors (ie opportunities
and threats) to create systematic strategies for implementation.
SWOT analysis Model is a useful tool in acknowledging and making
decisions not only in the business environment of enterprises, but also in the
field of public administration to analize policies, compare among choices to
propose suggestions for complete policies.
Applied in this study, the author uses SWOT analysis model to assess
the effectiveness of e-customs implementation at Quang Ninh Customs
Department, then offers policy recommendations to improve the performance
of electronic customs. Besides, the survey uses empirical methods,
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questionnaires to investigate 100 import and export enterprises through
Quang Ninh Customs Department and 100 customs officers of Quang Ninh
Customs Department on internal and external factors affecting the efficiency
of e-customs execution.
To identify strengths, weaknesses, opportunities and threats the
questionnaires using the Likert scale with the scale ranging from 0 to 10
(whereas 0 represents the least significant or worst implementation and 10
represents the most significant and well-done). Along with the combination
between internal factors and external factors in the SWOT analysis, the study
proposes recommendations to improve the performance of e-customs.
6. Expected contributions of the thesis
In theory, the thesis clarifies theories on the application of e-customs
procedure in customs operations, the framework and the progress of applying
e-customs in the world.
On this theoretical basis, the author evaluates the effectiveness of e-
customs operation in Quang Ninh and makes policy recommendations to
improve the performance of e-customs.
7. Layout of the thesis

Besides, the introduction, conclusion and list of references, the thesis is
structured into three chapters
Chapter 1: General theoretical issues regarding electronic customs
Chapter 2: Reality of e-customs performance in the operations of Quang
Ninh Customs Department.
Chapter 4: Evaluate effectiveness of the e-customs procedure in Qquang
Nninh customs department by swot analysis
Chapter 43: ViewsConclusdtion, solutions and policy
recommendations.
8
CHAPTER I: GENERAL THEORETICAL ISSUES ON E- CUSTOMS
OPERATIONS
1.1. Concepts, characteristics, roles of e-customs procedures in customs
operations
1.1.1. Concepts
Customs Procedure
As defined in Chapter 2 of the Kyoto Protocol, "customs procedures" is
all the activities that the customs authorities and concerned inviduals have to
undertake to ensure compliance with customs legislation.
According to Clause 6, Article 4 and Article 16 of the Laws of Customs
2001, "Customs procedures are the tasks that the customs declarants and
customs officers must undertake according to this Law to goods and means of
transport"
E-customs procedures: a procedure in which customs declaration,
receipt, handling customs declaration information, exchange of information
under provisions of the law on customs procedures among concerned parties
are implemented through the system of e-custom data processing (Clause 1,
Article 3 of Decree No. 87/ND-CP issued on 23
rd
October 2012 of the

Government detailing some articles of the Law of Customs on e-customs
procedures for export and import commercial goods).
The e-customs declaration system: an information system for customs
declarants to declare, receive information and feedback from customs
authorities in the process of e-customs procedure implementation (Clause 3
Article 3 of the Decree No. 87/ND-CP issued on 23
rd
October 2012 of the
Government detailing some articles of the Law of Customs on e-customs
procedures for export and import commercial goods.
E-customs data processing System, electronic clearance system: the
9
information system managed by General Department of Customs to
implement electronic customs procedures (Clause 2, Article 3 of the Decree
No. 87/ND-CP issued on 23
rd
October 2012 of the Government detailing
some articles of the Law of Customs on e-customs procedures for export and
import commercial goods .
Electronic customs declarations: a document in electronic form
includes a set of indicators on declaration information for customs declarants
(Clause 5, Article 3 of the Decree No. 87/ND-CP issued on 23
rd
October 2012
of the Government detailing some articles of the Law of Customs on e-
customs procedures for export and import commercial goods
Export of goods: goods are taken out of the territory of Vietnam or into
special areas regarded as customs separate areas in the territory of Vietnam
according to the law (Article 28 of the Commercial Law on 14 June 2005)
Import of goods :goods from abroad are brought into the territory of

Vietnam or from special areas regarded as customs separate areas in the
territory of Vietnam according to the law (Article 28 of the Commercial Law
on 14 June 2005)
1.1.2 Characteristics of customs administration in customs operations
nowadays
The common characteristic of customs administration in countries all
over the world is to handle the increasing volume of import and export goods
while resources are limited,which is difficult to meet with the speed of
commercial transactions in the globe.
The challenge for customs authorities is to manage tightly and
systematically, prevent and fight successfully against commercial fraud, as
well as to promote quick clearance of goods, create favorable conditions for
the operations of export and import, reduce cost and time incurred for
enterprises.
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1.1.3 Role of e-customs procedure in customs operations
- Step by step reform customs operations in the direction of consistency
with standards of modern customs in the region and in the world, convert
from manual customs procedures to electronic customs procedures; review,
drawing lessons to improve the process of e-customs procedures.
- Executing e-customs procedure is the most basic content in
implemeting reform and modernization strategy of Vietnam customs. All
enterprises will find that e-customs procedures contribute to increase
competitiveness in the international trade, reduce clearance time and save a
lot of cost.
- Contribute to the efficient overall assessment over the reality of
current administrative procedures, detect shortcomings, thereby propose
solutions, complete the system of administrative procedure towards simplicity
and convenience for individuals, organizations and businesses; create a
fundamental change in the administrative reform, ensure the consistency,

simplicity, and transparency of administrative procedures, improve
government administration and promote economic and social development;
contribute to the fight against corruption and waste.
- Helps enterprises be more active in clearance time. Previously,
enterprises can only declare in office hours, now the electronic clearance
system receives, inspects, registers, distributes the declaration during 24
hours. Enterprises get responses from customs office quickly and timely;
which contributes to convenient and accurate declarations. Using e-customs
declaration, enterprises save a lot of travel expenses, cost for photocopies and
printing documents.
- The implementation of e-customs procedure helps to reduce the time
of shipment clearance: for free- checking shipment, enterprises just need to
complete online customs procedures, for shipment to be checked, the
application procedure has been much more simple and faster. Therefore,
import and export enterprises always expect to cooperate and ready to support
11
the Customs in the implementation of e-customs procedures.
1.1.4 The necessity of implementing e-customs procedures in current
period
1.1.4.1. The increase number in import and export goods has caused the
urgent need for reducing the clearance time of goods

In recent years, turnover of exported and imported goods/ services
tends to grow anually, the number of merchants engaged in import and export
increases in both quantity and import-export business effectiveness,
specifically:
Table 1.1: Exports and imports of goods in the country from 2008 to 2012
(Unit: million USD)
Year 2008 2009 2010 2011 2012
Export 62.900 56.584 71.629 96.257 114.572,74

Import 80.400 68.830 84.004 105.774 113.792,41
Total 143.300 125.414 155.633 202.031 228.365,15
Source: Website of Vietnam General Statistics Office)
Table 1.2: Exports and imports of goods through Customs department of
Quang Ninh province from 2008-2012
(Unit: million USD)
Year Năm 2008 2009 2010 2011 2012
Export Xuất khẩu 3.171,97 2.972,47 5.053,45 4.746,48 3.223,00
Import Nhập khẩu 5.686,14 3.818,47 5.012,47 7.750,74 5.681,00
Total Tổng cộng 8.858,11 6.790,94 10.066,33 12.497,21 8.904,00
(Source: Quang Ninh customs
department)
The data shows that exports and imports has grown increasingly faster,
the trade balance has improved towards deficit reduction, which means that
Vietnam's economy is strongly integrated into the world economy.
12
1.1.4.2. Requirements on customs management of the State and of business
community
For the requirement of country development, customs are supposed to
improve management capacity to ensure effective implementation of state ‘s
economic policies, fight against smuggling, trade fraud, prevent trafficking
and transporting prohibited goods and illegal transactions accross the border,
ensure revenue for the budget, help to protect the social order and safety,
consumer interests, national security and the environment.
State management in customs must guarantee the convenience and
ventilation for import and export activities, promote investment, tourism and
broaden services etc. It is important that customs procedures are simple,
clear and transparent; customs clearance is carried out quickly to reduce costs
for businesses; information is provided public and promptly; the balance
between service and management is ensured.

1.1.4.3. Requirements of integration in consitency with the development trend
of international customs
In 2006, Vietnam became an official member of World Trade
Organization (WTO). It is the implementation of WTO requirements and
commitments including: common commitment on service, common
commitment on tariffs, WTO commitments on banking - securities,
accounting, auditing, tax - insurance services, distribution - logistics
Besides, they are commitments of bilateral and multilateral trade agreements,
of free trade areas as APEC, ASEAN
In the field of customs, the requirement to Vietnam is to simplify
customs procedures under the Kyoto Protocol, determine customs value under
GATT Valuation Agreement, perform the Harmonized Commodity
Description And Coding System (HS Convention), execute commitments
related to the protection of intellectual property rights for goods (TRIPS
Agreement); ensure the system of customs legislation to be complete,
13
consistent, clear and transparent in accordance with international
commitments; strictly and equally implemented for all individuals.
Currently, the implementation of e-Customs procedure in customs
operation is recommmended by The International Customs Organization and
has been applied in 59 member nations. The growing tendency of
international customs today is to apply modern information technology for
effective customs management. E-customs application is the development
path of most countries and the requirement of international customs in the
trend of globalization. In an effort to implement e-customs procedure,
Vietnam Customs showed willingness to participate in the execution of
international organizations’ aims, for national and international interests.
1.1.4.4. Ensuring strict management, adapting to the rapid development of
international trade
Today, international trade has been changing dramitically in both

content and form. There has been an increase in various types of services,
commercial business and new trading methods requiring the management,
control and supervision of the customs authorities to respond. In particular, e-
commerce is an international trading method with rapid growth, diversity, and
space for global transaction. In the past few decades, e-commerce has
developed at a very high speed and is predicted to be the trend dominating the
world economy in 21
st
century.
In e-commerce, transactions are carried out through means of modern
technology with higly-reliable encrypted linkages. Vouchers used in business
are electronic documents verified by digital signatures. With the aim to take
the utmost advantage of applying scienctific technology to ensure tight
management of commodity transactions through e-commerce as well as to
catch up with the rapid development of international trade, e-customs
procedures are indispensable to Vietnam customs and countries around the
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world to create the most favorable conditions for trade, investment and
tourism. E-customs in accordance with general development process of the
world is considered to be an advanced, modern and standard method of
customs administration.
1.1.4.5. Meet the requirements of Vietnam Customs in the new situation
In the context of the fluactuating world in economy and politics, beside
traditional tasks, Vietnam Customs is also requested to fight against terrorism,
money laundering, diseases, to ensure security and safety for the society, etc.
Whereas human resources of the Customs can not keep rising with the
increasing pace of work. It is also difficult to manage effectively if human
resources continue to expand.
In the new situation, for successful execution duties of the Customs in
general and Quang Ninh Customs Department in particular, the effectiveness

of implementation e-customs procedure will be the core and determining
factor to change basically the thoughts of modern customs management,
which means: Applying risk management methods in customs operations,
gradually replacing the traditional way of managing each shipment at the
border to the entire information management during the process of export and
import of enterprises; changing from pre-test to post-test, classifying
enterprises based on the available database from customs authorities and the
collected data to draw appropriate management policies; orienting enterprises
towards obedience of laws in all activities.
1.2. Concepts, impact factors and criteria to evaluate the effectiveness of
e-custom in customs operations
1.2.1 The concept of e-customs efficiency in customs operations
The effectiveness of e-customs is the maximum exploitation of the
advantages of customs management through modern science and technology
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in customs operation processes, contributing to reduce clearance time,
faciliate for export and import activities, investment, trade, tourism, enhance
economic - social development, and national defense.
1.2.2 Factors affecting the efficiency of e-customs in customs operations
1.2.2.1. Internal factors
The strong will of the leadership from the Ministry of Finance, General
Customs Department, Customs Department of Quang Ninh Province.
In recent years, heads of the departments, especially the leaders of
Quang Ninh Customs Department, Customs Sub-Department at the border
where implement e-customs must get involved and direct continuously,
decisively, timely; enlist not only the leadership and direction of the
Committee, local government but also the support from relevant agencies and
the business community.
After the Prime Minister issued Decision No.103/2009/QD-TTg,
General Department of Customs has brought out many documents requiring

Customs Deparments of cities/ provinces in the pilot list to execute urgently.
Customs Departments in provinces and cities have also actively and
creatively organized conferences to grasp thoroughly to member units and
officials to define the determination to implement this new policy. Many
customs departments have specified the targets assigned by the General
Customs Department and required the Customs Sub-Departments to sign in
the commitments to achieve those targets.
The Customs Department of Quang Ninh has determined the
implementation of e-customs procedures to be the central political task of
Quang Ninh Customs Department in particular and the Customs in general so
the committees and leaders of the Customs Department has made drastic
leadership and direction to implement synchronously many effective
measures in order to achieve the highest efficiency in e-customs exection.
Human factors in the implementation of electronic customs