impact of implementation of e customs procedure on customs authorities and export import enterprises

UPPSALA L \ r
UNIVERSITY OF ECONOMICS AM) 84
MASTER PROGRAMME OF PUBLIC M

r s s VM H
.* ^ ,dt

Nguyen Truong Son & Bui Tuan Phong
MPPM-Uppsala - Intake 1

IMPACT OF IMPLEMENTATION OF ECUSTOMS PROCEDURE ON CUSTOMS
AUTHORITIES AND EXPORT-IMPORT
ENTERPRISES

Supervisor:
Local Supervisor:

Prof. Sven Jungerhem
Dr. Huyen Nguyen Thi Ngoc

Hanoi, May 2011


ABSTRACT
Title of the thesis:
Impact of implementation of E-customs procedure on customs authorities and
export-import enterprises
Level: Final assignment for Master Program in Public Management.
Author: Son Nguyen Truong
Phong Bui Tuan
Supervisors:

Uppsala supervisor: Prof. Sven Jungerhem
Local supervisor: Dr. Huyen Nguyen Thi Ngoc
Date when the thesis is presented: Tentative 17-19. May
Objective: This essay offers the results from evaluation and analysis of the
current status of the implementation of E-customs procedure; the positive
aspects and shortcomings of the implementation of E-customs procedure in
Vietnam, its impacts on customs authorities and import-export enterprises
applying E-customs procedure.
Methodology:
In this essay Two books: Handbook on impact evaluation - Quantitative
methods and practices and Handbook on Planning, Monitoring and Evaluating
for Development Results have been used to make theoretical framework for
analyzing impact of implementation of E-customs
This essay was based on books, documents, theory and models of
electronic clearance of some countries, as well as data collected directly from
the General Department of Customs, Provincial and Municipal Departments
of Customs applying E-customs procedure; the magazines of Financial
Informatics, Research on Customs, Customs Press and web pages.
Through two surveys of local customs departments implemented Ecustoms procedure and some import-export enterprises


-i- Survey I: To interview 6 people in local Customs Departments that have
been implemented E-customs procedure.
+ Survey II: To interview and give questions to 50 enterprises (of which
30 enterprises participating in E-customs procedure and 20 enterprises
performing traditional customs procedure)
From the theoretical model and actual data collected through methods of
sociological survey, this essay has used statistical methods, methods of
analysis, comparison and summarization in a systematic, scientific and
practical way based on the data collected to for the study

Results and Conclusion:
This essay is almost mentioned E-Customs procedures, roles and basic
characteristics of electronic Customs procedures; The impact of E-Customs
procedures on Customs and import-export business; and also answered the
research questions: What is E-Customs procedures? What is the role of ECustoms procedures? What is the advantages of E-Customs procedures
compared to former Customs? What is the benefits of implementing the
electronic Customs procedures to Customs and import-export business? What
inadequacies, difficulties and problems for businesses and Customs is when
implementing the electronic Custonis procedures? What is the positive and
negative effects in the implementation of electronic Customs procedures for
both Customs authorities and business?
Limitations and proposed next steps
The analysis of Impact of implementation of E-customs procedure on
customs authorities and export-import enterprises also raised deeply research
on E-Customs which deployed in Vietnam in the following project such as:
"Which solutions is to implement effectively E-customs procedures in
globalization?"
Or '' The role of E-Customs procedures in Promoting commercial
development "


Contribution of the thesis:
The study will play a part to give a suggestion to managers, leaders,
government to think of management policy and some recommendations for
enterprises to get the best benefits brought from E-customs procedure.
Key words: E-customs procedure,


TABLE OF CONTENTS
Table of contents

Abbreviations

I
3

CHAPTER 1 IN IRODUCTION AND OVERVIEW
1.1 Introduction

4
4

1.2 Purpose and quesions

7

1.3 Scientific and practical significance of the rcsearc
1.4 Method
1.5 Material

8
g
11

1.6 Scope and demarcations

]1

CHAPTER 2: 11 lliORl-TlCAE FRAMI:W()RK 1 OR ANALYZING
IMPACT Ol- IMPLEMENTATION OF E-CUSTOMS PROCEDURE ON
CUSTOMS AUniORITIl-S AND EXPORT-IMPORT ENTERPRISES

2.1. Definition and characteristics of I>cusloms procedure
2.1.1. Definition of E-customs procedure
2.1.2. CMiaracteristics of I-customs procedure
2.2. Process of l>customs procedure
2.2.1.1'or customs officers
2.2.2. I'or customs declarants
2.3. Conditions lor ihc implcmcnlation and dc\clopmcni of l--cust(Mns
procedure
2.3.1. lor Customs Department implementing I>customs procedure
2.3.2. 1\M-Customs Suh-Deparlmeni implementing E-customs procedure
2.3.3. I'or Data and Information lechnolog) Centers under Customs
Department implementing 1--customs procedure

13
13
13
14
16
16
I7
\^)
1^)
19
20

2.3.4. lor enteiprises
21
4. 1 he basic differences bciween traditional customs and E-customs
21
S EAistenccs. inadequacies, problems in 1 -customs procedures

22
1. Relating to program software, equipment, network
22
2. Ihc Customs Department
24
3. 1 he Enterprises
26
4.Scr\iccs Suppliers
27
CHAPTER 3: ANALYSIS OF Till; Pll OT PROCESS OF E- CUSTOMS
PROCl l)lMP R ( ) C 1 : 1 ) U R F : 0 N C U S T 0 M S AUTlIORiriES ANDNTITIPRISES
29
3.1. l--cusioms implementation impacting customs authorities

32

3.1.1 Posin\c impact

-^-


^ -

ABBREVIATIONS

APEC: Asia-Pacific F^conomic Cooperation
ASEAN: Association of Southeast Asia Nations
C/O: Certificate of origin
CFR: Cost and Frieght

CTF: Cost, Insurance and Frieght
ECUS: I>customs sofware
EU: European Union
l O B : I r e c on hoard

I IS: I larmonize system
IF: Information technology
Kyoto: International Convention on the simplification and
harmonization of customs procedures ( Kyoto convention)
NAF'I A: Nortii American free 1 radc Agreement
VAN: Value added Network
VPN: Vilual private Network
WAN: Wide area Network
WCO: World Customs Orgini/ation
WTO: World frade Oreini/ation


-/ -

3.1.2 Negative impact

34

3.2. E-customs implementation impacting export-import enterprises
35
3.2.1 Positive impact
35
3.2.2 Negative impact
37
CHAPTER 4: SURVEY RESULT ANALYSIS TO ENTERPRISES IN

IIAI PHONG PARTICIPATING IN E-CUSTOMS PROCEDURE - SOME
SOLUTIONS TO IMPROVEMENT OF E-CUSTOMS PROCEDURE
38
4.1 Comments on the implementation of E-customs procedure at E-Customs
sub - Department
38
4.1.1. Comparison between l;-Customs procedures and traditional Customs
procedures
38
4.1.2. The specific benefits achieved by enterprises when participating in 1>
customs procedure
39
4.1.3. fhc difficulties enterprises face when participating in I--customs
procedure
39
4.1.4. 1 he difficulties enterprises face at customs olT\cc when participating in
E-customs procedure
40
4.1.5 The difficulties given to enterprises at Customs Departments when
participating in I{-Cusloms procedure
41
4.2. What about 1-customs done in haiphong Sub-Department
41
4.3. What about l-CUS for declaration
41
4.3.1 i:\alualionofECUS
41
4.3.2 The difficullies thai enterprises face when using 1,CUS
42
4.4. CcMilenls need impro\ ing and amending

43
4.5. Confirmalii)n lo participate 1 -customs procedure or not
44
4.6. Solutions to improxement of L-customs procedure
44
CHAPTERS: CONCLUTION LIST OF RESOURCES

50

LIS f 01 SOURCES

52

APPENDIX 1: Pl-OPIl IN VOLVED

55

APPI-NDIX 2:

F:NTERPR1SES

INTl

R\'11 D I O R

11 lllR ()P1MUNS OF

E-CLISTOMS PROCEDURE

56

APPI NDIX 3- OPINION SURVEY 1 ORM ON E-CUSTOMS
P R O C F D U R L : O I P R O V I N C I A L A N D M U N I C I P A L CUSTOMS
Dl PARFMLNl

^"^

4: OPINION SURVl^' FORM < ^\' 1 - C U S l o M S
PROCEDURl-OFNll-RPRlSI S

60

APPF:NDIX


-3

ABBREVIATIONS
•k "k it

APEC: Asia-Pacific Economic Cooperation
ASEAN: Association of Southeast Asia Nations
C70: Certificate of origin
CFR: Cost and Frieght
CTF: Cost, Insurance and Frieght
ECUS: l:-customs sofware
F^U: European Union
VOB: Free on hoard
1 IS: I larmoni/e system
If: Information technology

Kyoto: International Convention on the simplification and
harmonization of customs procedures ( Kyoto con\ention)
NAl'FA: North American I-ree Trade Agreement
VAN: Value added Network
VPN: X'iuial private Nelwt)rk
WAN: Wide area Network
WCO: World Customs Orginization
WIX): World frade Orginization


CHAPTER I
1.Introduction
1.1 Introduction
Nowadays, globalization and international economic integration is
becoming one of the main trends of modem intemational economic relations.
Accordingly, the world trade has increased rapidl\: if the world's export rate
reached 69.7 billion dollar onl\ in 1950. then it reached 5460 billion in 1999'
and nearly 20 billion billion dollar at present. Wiih the apprearance of global
and local institutions such as WTO, EU, APFC, NAFTA, ASEAN .... llie
world today is living in the strong process of globalization. In such strong
trend ol globalization and international economic integration as toda\, manv
opportunities as well as great challenges ha\e been created for de\eloping
countries in general and Vietnam in particular. In this context, it is ncceassr\
for countries wishing to participate in intemational economic integration
ellecti\el\ to make an entire and comprehensixe inno\alion ol' institutions,
mode, management methods. Since hecoming a member of the World frade
Organization (W'FO), X'ietnam has had to make international commiuiients. in
which Vietnam Customs is one of the branches has lo implement internalit>nal
commitments such as International Acts Vietnam has signed on. the program
of harmonization of customs procedure under K\olo Con\eniion, especiall}

Protocol on facilitatii^n for ASEAN's goods" .... From the abo\e reasons.
Vietnam cuslt)ms is rec|uired also to enhance modernization reforms in its
operation, lo i\o research and appi} modern management methods in order lo
create fa\iM*ahle conditions for trade and promote the eountrx's economic
de\ eK>pmcnt. hut well to ensure management requirements and customs
procedure.
' Glolxili/ation and VictnanTs iiiicriiaiioiul economic inlcgration, P5
•^ \\"l () intCLzralion- opporlunilics. challcni^cs and our actions. Dale 07 I I 2000. p'
"'l'\pcricnccs ofcuslonis mordcrni/ation on sonic counlncs. C liapicr 2,3


However, implementation of E-customs procedure on the basis of limited
lacihtics. in the context of Vietnam's econom\ reached a new level compared
to

other

developing

countries

in

Southeast

Asia:

Vietnam's

public

administration in general and customs procedure in particular are in the period
of reforming: the extent of application of information teehnolog\ in the
management of customs operations is not ssnchronizcd: qualiticaiion o\'
customs officials does not meet requirements: most o\' import and export
enterprises of small and medium scale may not ha\e a sound perception about
the ulilit} ol F-cusloms procedure, not make a necessar\ investment in
machinery. II equipment and. software, networking l\)r transferring data to
and receiving it from customs agenc\' ...
I here have been some scientillc researches which refered to aspects of
Vietnam customs o\' Vietnam in the process of international economic
integration, reform and customs moderni/alion. such as:
a)

Fe Van

loi.

I'icnui/ii {^(sionis in the process

of rci^lofnil iuul

infcrncffioiui/ ccononiic in/ci^rci/ion. a IMil) thesis in political ec(Mi(>mics,
presented in 2005 at the National Political Academv. No C hi \linh, Ihc thesis
refers t o praclical problems, reason and r ealit> of Cu stoms o perations in
Vietnam in the process o\' regional and iniernational economic integration
under pcrspecti\ e ol"political economv.
b) Ngu>en Ngoc 'fuc, Fnr/hcr rcforni (nn/ inoc/crnirolion of I'/cfnon} Cnslonis
lo i}}cci rccjnifcnienfs of ifilcnhiiionol economic inlegrciiion. a Phi) thesis in
economics, presented in 2007 at llaniM foreign frade Uni\ersil>. Ihc thesis

describes the scientific basis for the continuation of reform and modenizalion
oi

cusl(Miis procedure as well as the ohicctive ncc^l and content ol' further

iclorm and

moderni/ation: refers to the actual situation ol" customs reform

and modernization, and give direciions and solutions to further reform and
modernization ctf eustiims in X'ietnam lo meet requirements of international


This essay selecied the book: Handbook on impact evaluation Quantitative methods and practices of the author: Shahidur R. Khandker,
Gayatri B. Koolwal, Hussain A. Samad' and the book: Handbook on
Planning. Monitoring and Evaluating for Development Results - Ignited
Nations

Development

Programme

(2009)

lo

studv

the

impact

of

implementation of e-cu.sloms procedure.
-Ihis essay was based on books, documents. lheor> and models of
electronic clearance of some countries, as well as data collecled from the
General Department of Customs. Provincial and Municipal Departments of
Customs applving

li-eusloms procedure: the magazines ol': financial

Informatics. Research on Customs, Customs Press and weh pages.
- through two survevs of local customs departments implemented 1customs procedure and some impori-export enterprises
i Survev I: lo inlerv lew 6 people in local Customs Departments that have
been implemented 1 -customs procedure.
-t Survcv II: lo interview and give questions [o 50 enterprises (t)f which
30 enterprises participating in 1-customs procedure and 20 enterprises
performing traditional customs procedure)
From the ihetMVtical minlcl and actual data ctWIecled through methods ol'
sociological survev. this essav has used statistical methods, methods o\'
ana IV sis. comparison and summarization in a s\stcmatic. scientific and
practical wav based on the data collected lo f^ir the siudv.

Handbook on inijtaci cvalualion -Quantitative methods and practices
"lkuidbt>ok on rianninL:. Monitoring and Fvaliiating for l)cvck>pmcnl Results


economic integration. However, this thesis studies from economic angle, so it
docs not discuss issues of customs innovation.

c) Nguyen Cong Hinh. Research on proposal of

E-Customs

management

model. This topic decribes from the general research on management of Ecustoms. the role of information systems in E-customs management: give
recommendations and steps to build a model o\' E-customs, focus on
researching

appfieation

of

information

lechnoloev

in

oruanizational

management and management of customs operations .... and other refaled
works,
fhrough an overview of these topics, it shows thai: these studies have
mentioned I'-eustoms procedure in the prt)cess of international economic
integration, in reforms for customs modernization. 1 lowev er. to assess the role
and impact ol 1.-customs procedure in Vietnam on customs authorities and
export-import enterprises, there has not been anv one. Therefore. v\e selected
tt)pic: "Impact of implementation ol I -customs procedure in X'ietnam on

customs authorities and export-import enterprises" lo analv/e an overview of
1-customs procedure being used in X'iclnam: benellls Ixom the appliealu>n of
the procedure lor bolli customs authorities and enterprises: inadequacies and
problems in implementalion of F-customs prticedure: the studv will plav a
part to give a suggetion to managers, leaders, goveriinieni and export-import
enterprises.
E2 I'urposc and (|iiosi()iis:
Summarize genei'al know ledge about

F-customs procedure: roles and

ct)iulilions for building up and development o i l -customs procedure: Studv
and evaluate the current status of t.-customs procedure being implemented in
customs

authorities:

implementalion

legal

basis,

eond iliims

process, the positive aspects o\

for

implementation,

l:-cusioms procedure

Ci^mpared with the traditional one under perspective of management: Stud>
and evaluate the current status of I -customs procedure being implemented in


export-import enterprises: benefits gained and difficulties arising, the impact
of the implementation of E-customs on customs acliviiies and enterprises of
import and export: Identify, select and offer solutions to development of Ecustoms procedure in both customs authorities and import-export enterprises.
Thus, the questions for this research topic include:
a) What is E-customs procedure? The role of E-customs procedure?
Advantages

of l-customs procedure compared

to traditional

customs

procedure?
b) 1 he benefits from the implementation of F-eusloms procedure for
customs authorities and import / export enterprises?
c) The inadequacies, difficulties and problems enterprises and customs
authorities have to face in the implementation of F.-customs procedure?
d) 'Ihe positive and negative effects in the implementation of l--customs
for both customs authorities and enterprises?
E3 Scientillc and practical significance of the research:
Ihis cssav offers the results from evaluation and analvsis of the current status
of the implementation of l{-customs procedure: the positive aspects and

shortcomings of the implementation of f.-customs procedure in \ ictnam. its
impacts on customs authorities and imptMl-e\porl enterprises applving 1customs procedure.
The stud\' is also a useful source of reference for learners, students who
studv li-eustoms procedure in particular and customs procedure in general.
fhis essav also prtn ides useful comments and positive contribution lor
poliev makers, central ministrv agencies lo the completion of policies, to
manaue and control macrocconomv. lo build and improve rules of l:-customs
procedure in Vietnam in this context of globalization and international
integration.
1.4 Method


This

essay

selected the book:

Handbook

on

impact

evaluation

-

Quantitative methods and practices of the author: Shahidur R. Khandker,
Gayatri

B.

K o o l w a l , Hussain A.

Samad"

and the book: Handbook

on

Planning. M o n i t o r i n g and Evaluating for Development Results - United
Nations

Development

Programme

(2009)

to

study

the

impact

of

implementation o f e-customs procedure.
-This essay was based on books, documents, iheorv and models o f
electronic clearance of some countries, as well as data collected from the
General Department o f Customs. I^rovinciaf and Municipal Departments of
Customs

applying

l-customs

procedure:

the

magazines

of:

Financial

Informatics. Research on Customs. Customs Press and web pages.
- Through t w o surveys o f local customs departments implemented Fcustoms procedure and some import-export enterprises
+ Survcv I: To interview 6 people in local Customs Departments that have
been implemented 1--customs procedure.
-^ Survcv I I : l o interview and give L|ueslions [o so enterprises (of which
30 enterprises

participating

in

I -customs procedure

and 20 enterprises

performing traditionaf customs procedure)
From the theoretical model and actual data collected through methods of
sociological survey, this essav has used statistical methods, methods of
analvsis. comparison

and summarization

in a systematic, scientillc

practical wav leased on the data collected to for the studv.

' Handbook on impact evaluation - (,)uaniilali\c methods and practices
''llandliook on IManninu. Monitorinu and Ivaiuating for I)e\ek>pmcnl Results

and


- lU -

RESFARCH PR()( ESS

Build up research outline

Data collection

Ihiild up theoretical rrame\>ork
ol research

Interview f(»r data process

Analvsis and evaluatu)n

Fr'urc I: Research process

Impact ot" implcmcniatio
of l:-customs procedure
on customs authorities ar
expon-import enterprise


1.5 iMaterial
A variety of sources have been used in order to answer the research
question of this essay. When tr\ing to Find out the possibfe sources of
Vietnams customs's

reforming and mordernization

surroundings, the

database Experiences of customs mordernization on some countries has been
useful. A selection of books and articles regarding \'ielnam reforming of
National administrative and Vietnam customs" reform and mordernization
have been equallv useful.
Ilandhook on im/Htct cvcducition - Onantitative methods and practices:
Handbook on Planning, Monitoring and Evaluating for Development Results

are two books which have been used to make iheorelical framwork for
analvzing impact of implementation of 1 -customs.
Other reports lo concern summing up 5 vcars ( 20()s-2010j implementing
F-cusloms procedure

and report to concern summing up in vcars ( 2001-

2010) of refi>rming National administrative in X'ietnam have however, also
been useful, the regulations ctf \^ietnam customs and h(wv to do the customs
procedures such as: Vietnam customs law. I- transactions Faw. law on
I'Aport fax and Import lax and others circulars, dicitions... promulgated bv
Vietnam National assemblv and govement arc useful in making

F-cusloms

pr^K-edurc process. Ihc miormalion extracted from the website: wto.com,
WCO.com, cifstoins.gov.vn

are supplemented good ideas on customs reform

and morderni/ation.
1.6 Scope and demarcations
Fhc following analvsis of the impact of implementing F-customs
piH>cedure on cusliMiis authorities and import-export enlcrpriscs is dev ided
into loui' sections or four chapters:
Chapter 2: Iheoretical framework lor analv/ing impact of implemental ion o
I -customs procedure on eusloms authorities and export-import enterprises


\z

Chapter 3: Analysis of E- customs procedure as model - Impact of
implementing F-customs procedure on customs authorities and enterprises.
Chapter 4: Analysis of implementing E-customs procedure in Flai Phong
Customs through the surv e\ results of import and export enterprises and the
implementation of E-customs procedure at I lai Phong Customs. Some
recommendalions lor policy makers and managers of customs authorities in
order to successfullv

implement l>customs procedure in Vietnam: Some

recommendations lor enterprises to get the best benefits brought from 1:customs procedure.
Chapter 5: Conclusion. Recommendations for further studv .


CHAPTER 2
THEORETICAL FRAMEWORK FOR ANAL\ ZENC IMPACT OF
IMPLEMENTATION OF E-CUSTOMS PROCEDURE
ON CUSTOMS AUTHORITIES AM) EXPORT-IMPORT
ENTERPRISES

2.1. Definition and characteristics of E-customs procedure:
2.I.L Definition of E-customs procedure:
E-cusloms procedure is a eusloms procedure in which the customs
decfaration, receipt, handling customs declaration informaiit)n. and decisionmaking are done ihrough a software program of eleclronic eusloms
declaration I:CIJS. this is a tool that helps eusloms authorities and enterprises
implement process of ! -customs pr(K-ediiie. I he business onlv need io install
this software on then" computer, then lill in accordaing to eusloms rules such
as customs Lleclaratii>ns. value declarati(M"i. certillcate of origin, bills of lading,
license etc .... and send all the information on the electronic declarations and

other electronic custonis documents to Sub-Department of" l.-C usloms . then
eleclronic data processing svstem will automaticalIv

receive and send

nolillcation of guidelines for custv)ms procedure back to the business, ihe
enterprises will receive this information from customs authi^rilics such a^: the
declaration has been accepted or not. number of deelaralion. imKie of customs
clearance, tax notices, etc. ... After receiving this information, the business
will lake next steps in aeet>rdance with its procedure .

^ Circular No. 222/2009 I l - i n c dated 2^ I ! 200^> pronuilgaled b\ the Ministrv of
Finance guiding F-customs procedures as model, chapter 1


Doanh nijhiep
Doanh nghtep

TpHCM
Hdi '3udn

Figure 2: Principal of E-customs

connection

2.1.2. Characteristics oi E-customs procedures:
a) Customs procedures are made bv electronic means through an
electronic data pixicessing system of customs aulhorilv:
h) F-customs papers ensure the integritv with a standard formal and legal
V alue as

CUSUMUS

dossiers.

c) Ihe customs declarant will base on his her c^Miiputer svstem to creale
information

for

eusloms

declaraiii>n

and

make

customs

decfaration

transmission bv electronic means lo the customs authoritv ihrough an
organization for transferring and receiv ing electronic vouchers, in which
he she can declare on his her own, do self-assessment and self-pavnient of
laxes and other revenues; applv metlmd of month Iv pavmenl forcust(nns fees.


13

Ihe declarant shall take responsibilitv for the content of their customs
declaration.
d) I o participate in F-customs procedures, it is obligatorv for enierprises
to make registration and receive admission from customs authoritv lo
participate in I'-eustoms procedures, then issued a password for access to the
system, connect network computers with Customs or using ihe services of
agents to clear l--customs procedures.
e) Ihe eusloms authoritv will implemenl customs procedures on ihe
basis of i:-customs papers sent to. ihen handle and classifv kinds of goods,
and make a decision on forms of inspection ihrough an automatic svstem ol
eleclronic data processing on the basis of analvsis. information processing,
with three forms:
- Accept customs clearance on the basis t)f cusU)ms declaration (green
(low), the declarant him herself prints the declaratit)n. with his her signature
and seal, bring it to Border Customs Superv isors for clearance of"goods :
- Check paper documents of customs dossier before clearance (\clKn\
llow ). the declarant will |"»resent the declai'alion printed v\iih other documents
t)f the di>ssier at the !Vi|uest olthe customs auUiorities:
- Check paper documents and actual status of gotids before clearance
(red flow), the declarant comes to present the declaration printed with other
documents at the request of [he customs authorities, lo produce the goods tor
the Border Customs Sub-l)epartemcnt lor their decision on clerance based
according lo eleclronic dossier declared bv the busine^^ enterprises; then
decide the customs inspection based on results from analvsis ol information
from the database of customs authoritv and other sources of information.
fl

I he

post-clearance

inspection

made

bv

the F-Cusloms Sub-

Department on the basis of analv/mg and processing information from ihe
database, paper documents of customs dossier and other information of other
professional bodies of the agcncv. organi/alii>n. individuals and customs of


10 -

other countries. Synthetic sources\
2.2. Process of E-customs procedure
2.2.1. For customs officials:
Step 1: Freliminar> examination, and registration for F-customs declaration
includes the following tasks:
-

Ivxamine the conditions of declaration regislralion

-

Fxamine name, unit of measures, codes of goods

-

Makes sure the adequacv of all criteria on the F;-customs declaration

II the information declared are sufllcient and appropriate, the regislralion for
1 -customs declaration is allowed, to update the examination results into the
svstem for issue of registration number and classification of declaration.
Where the information declared is not compliant with regulatii)ns. ihe
customs official will check through a svstem inslruclmg the declarant lo
adiust accordiniilv or refuse their reaistration with sendine a reason of "Notice
of I -customs declaration refusal" to the enterprise.
Step 2: examination td'eusioms papers includes the lollowing:
- Examine customs dossiers. I xamine taxable valuation (if anv)
- If the declaration is satistled to the customs regulation, [o decide "customs
clearance" bv doing on the svslem oi* lo print "Note of customs dossiers"
- In case ol phvsical inspection of gvuids. to update whal has exami/ed lo
svstem then transfer ibe

CUSUMUS

dossiers to step ? lor perlormance

Step 3; Phvsical inspections of goods shall be conducted bv customs olficers
to delermine the aceuraev and sufticiencv of descriptions of goods in order to
determine the customs valuation. W hen inspectuM-i results are in accordance
with the customs reguhitii^n. the customs officer are pemittcd to decide custimis clearance" or make a proposal lo chief customs lo delermine
"circular No. 222/2009rFf-B fC dated 25/|l 2009 oflhe Ministrv of Finance guiding Ecustoms pioLcdiiivs as model, p^


- I /

"Release goods'' ^Transport goods into ihe owner's storage". In case of
rcciuirement to re-conlirm customs valuation, the F-customs declaration is
returned lo step 2.
Step 4: To decide one of three cases as follow: To confirm customs clearance
or
to release goods out of customs area or to transport goods into ihe owner's
storage''.
2.2.2. For customs declarants
Step 1: The declarants including: Ihe owner of import and export goods; An
agent authorized b> the owner and customs agcncv will make information for
the i;-customs declaration, value declarations on the svslem of F-cusloms
decfaration in accordance with the criteria and standard formal prescribed and
be responsible for the contents of the declaration.
Step 2: Send the F-customs declaratitm to custt)ms aullnMatv
Step 3: Receive feedback oflhe customs auUKM'itv and follow instructions.
including:
' (iet "Notice of I- customs deelaralion refusal" and made the
amendment, supplement lor the l-cusloms declaration under guidance of
customs authoril}. Resubmii the cusuims authoritv alter amendmenting and
supplementing.
^ (ict "decision on checking form and level" "(iuidance for I.-customs
procedures"
Step 4: Produce the 1-customs declaration then sign, seal and subject lo
customs oflieer at border gate for customs clearance or release goods oul of
custt)ms suj^erv ision area or transport goods into the owner's storage
'^ [decision No. 23960!)-TCI IQ dated 9 12 2009 issued bv the Cusloms General Director '
on promulualinu the process oi' CUSIOIHN procedures lor export
imporl goods
iniplenieniini:
j

l-cusloms procedures, p6.7,
|

'"Decision No. 2396'Q1> ! CI \Q dated 9 !22{){)9 issued bv the Customs General Direclor
on pioimilizaling tlic process o\' cusionis procedure^ lor e\pori
import goods
miplcnicnling

F- cusloms procedures, p 8.9


IX -

E-CUSTOMS PROCEDL RE PROCESS
DIXLARANTS

CI STOMS OFFICERS

Step!:

Step 1: Examine
and ^ive number
to
F-eu\toms
declaration

Step 2 : Send Ihc inforniiition to customs

Informatitfu
by

its/ft^
ECLS

Send "Notice of refusal of F-custums

4

i

'f

'r

Step 3: Amend
luul supple
ffccil/xic/x
from
customs
autluuity

Step 2 : reexamine in
details

Send a n K i i d n i c n t s and s u | ) p l c n u ' n t \
w

1
1

'f
1

Step 3: Physisal
inspectitm of
*^ood\

Step 4 : Prim titc
customs
(li'ctiuation
then
sii^n and seal

1f

Step 4 : Cast inns
clearance

( I SIOMS \ I ( III ( K r o i N I
Customs clearance
Or release lioods oat of customs zone
Or transport i^oods into owner's storage

Green flow for clear declaration

To (IccliU'iitc
cusUtms


2,3. Conditions for the implementation and dc\clopment of E-customs

procedure:
2,3.1. For Customs Department implementing E-customs procedure:
I-irsliv. Ihe Cusloins Aulhorilv should make a sel of erileria of risk
managemeni

lor

implemenialion of risk

managemcnl

lechniques and

cnlei-prises elassilicalion. It is required lo have a dala nianagemenl eenler lo
use svslem ol dala eolleclion. managemeni and analvsis lo serve customs
activilics. make sure a good inlraslruelure of inrt)rmaiion leehnologv lor
implemcnling I> customs clearance".
Ihe Customs should be equipped wiih mechanical svslems. modern
equipmenl

lor cusloms inspeelion and supei'v ision. such as conlainer

scanners, eleclronic scales, surveillance camera svslems. mrraslruclure. ele ...
as well as soonesl lo foinui Cusloms inloiniation et>llecliiMi unil lo prevent
someones from smuggling and eommilling lax fraud
CusU)ms agencies including suh-depailmenl. K)cal deparlmenls and ihe
I'nils under general eusliMns deparliiienl are slriellv rec|uired lo follow the
regulalions on managemeni t>l operaling and using I -customs dala processing
svslem. lo ensure that the svstem is managed and opei"aled eontiiuu>usl_v 24
hours a dav as prescrihed bv the (ieneral Depai'lmeni of Cusloms. In ease of

problem, prompllv inform subjeels lo the svslem operalors cuul lo enierprises
parlicipaling in I -eusloms pi-oeeduivs ilien it^ be permiled lo operale svslem
slandbv ".
2.3.2. For ( ustoms Sub-Deparlmcnt implementing E-ciistoms procedure:
To earrv oul
reeev inu

dailv works bv

and iransferim:

data

CUSUMUS

officials as follow: Checking,

lo the Dala and Informalion

leehnologv

Cenler - Ciisitims Depai'lmeni; \o download u|Hkiied dala li'om ihe Dala and
"FU^porl on siiinining up ^ vcars lo iniplciiicnt |--ciisloms procedure ( 2005-2010), pl2.
'•\ircular No. 222 200') f!-B K d.itcd 25 1 I 2()0'KMlhe \linistr\ of linance guidinu 1
cusloms procedures as model, pi4


Ihe Informalion Technology Cenler including: list of enterprires which are
coercive noi lo do cusloms procedures. Lisi of enierprires which are violated
cusloms rcgulalion, list of goods reslricllv lo be exported or imported: tariff

elassilicalion. list of goods subject lo lax before customs clearance...
fhc system operator in Cusloms Sub-Deparlmeni lo do ihe works as follow:
lo make ihe decenlrali/alion list ol'slaff sujecled U) chief cusloms. lo bear
slalfs usernames and lo do icchnical works lo ensure ihal ihe svslem
operating conlinuosly.
lo make a report each

lO-dav period and send lo the Cusloms

Deparlmenl where implemented and ihe (ieneral Deparlmeni t)f Cusloms. Ihe
report consists of how l>cusloms procedure has been implemented and
carried, wluil is the v iolalion of cusloms legislalion. how the process of I-cusloms has been ilone. how much goods have been cleared bv eusloms
ollicers and ihe last w hat are v(nir opinions lo implemenl I -cusloms
procedure beller.
2.3.3. F or Dala and Inrormalion I echnolotiv ( enlers under ( ustoms
Department implement in" F.-customs ()rocedure:
lo ensure ihal dalabases svslem oiteraling in continuous 24 hours a dav.

lo

save and cheek the dailv K^g oflhe svstem: lo dmvnload updale of versions of
ECUS and updale anli-v irus soflware
To earrv oul dailv works by customs officials as follow: Checking, recev ing
and iransfering dala lo ihe Dala and Informalion leehnologv Cenler

under

general Customs Deparimeiil: lo download updated dvila including: lisl of
enierprires which are coercive noi lo do eusloms procedures, lisl of
enierprires which are v lolaied cusloms rcgulalion. lisl of goods reslricllv lo be

exporled ov imporled: larilT elassilicalion. lisl of gi>ods subjeel lo lax before
cusloms clearance...
2. 3.4. For Enterprises:
a) lo equip wiih compulers lo be connecled iniernel: .ADSI . 1 eased fine ....;