When applying risk management, the data collected by the customs agency under Circular 81/2019 / TT-BTC on risk management in customs operations will make channel classification more accurate and reduce resources for society.

Effective risk management by the customs agency makes channel classification
(Green-Yellow-Red channel) more accurate and reduces human resources
for enterprises. Photo: Q.H

Reducing costs for enterprises

Head of the Business Environment and Competitiveness Department under the Central Institute for Economic Management (CIEM), Ministry of Planning and Investment, Nguyen Minh Thao said that in Vietnam, Customs is the first agency applying modern management modes based on the application of risk management and compliance management in import and export activities.

According to the United States Agency for International Development (USAID) Acting Vietnam Mission Director Bradley Bessire, Circular 81 is the first legal documenton risk management in Vietnam. The application of risk management not only ensures trade security and trade facilitation, thereby creating a more attractive and predictable trade and investment environment, but also allows the General Department of Customs to enhance its resources on high-risk shipments.

However, according to Ms. Thao, application of criteria must be clearer for enterprises to know how their shipments are classified into the Green, Yellow, and Red channel. Thereby, making information transparent and enterprises believe that if they comply with the law, they will have advantages in import and export activities.

“Customs reform will create motivation, opportunities and a good precedent for ministries and agencies to adjust policies, apply risk management and compliance management measures in the field of management. With the management measures carried out by the Customs sector, especially more transparency in criteria and information and easy information access will create confidence and motivation for enterprises to better comply with the law,”said Thao.

Director of Delta International Company Tran Duc Nghia said that the issuance of Circular 81 is an advance for the Customs sector, benefiting not only the business community but also the Customs agency itself.

Specifically, in 2018, more than 11 million import and export declarations were registered. With a large number of declarations, if risk management is not applied for channel classification, social resources to carry our customs procedures will be too high.

When applying risk management, the data collected by the Customs under Circular 81 will help channel classification be more accurate and reduce resources for society.

The risk management has been applied since the customs agency transformed from paper customs declarations to electronic versions.

“Every year, there are from 35,000 to 40,000 declarations, the company has to spend too much human resources on this activity. On the other hand, the revenue from customs broker service is less than 10%, corresponding to about 30-40 people doing this work, that is, 100 declarations per day. Therefore, when the customs agency transforms from paper customs to electronic customs declarations based on effective risk management, channel classification becomes more accurate and the company saves human resources,” Nghia added.

Mr. Tran Duc Nghia said if the shipment is classified into the Red channel, the company will pay many costs. In order for the Customs inspection, the company has to work with warehouses and yards to prepare goods and carry out administrative work.

Improving enforcement capacity

Ms. Nguyen Minh Thao said that when participating in import and export activities, enterprises are affected by the regulations of specialized management agencies. If the specialized management agencies do not apply risk management, unintentionally, the reforms and changes of the Customs agency will only be an insignificant advance. Because if risk management is not applied in specialized management, all shipments subject to specialized inspection will be classified in the Yellow or Red channel.

“In the future, when risk management is applied, the compliance and enforcement of customs officers should also be paid more attention. Goods principles and rules without goods enforcement will reduce effectiveness. In parallel with the application of risk management and improvement of enterprises’ compliance, it is also necessary to enhance the responsibility of customs officers in their performance,”said Thao.

"It is expected that the General Department of Customs will soon launch a software system under Circular 81. What enterprises lose will be much less than what they receive, so they will feel satisfied to spend time to carry out requirements of the Customs agency in accordance with the spirit of Circular 81,”said Nghia.

At the conference to disseminate new laws on risk management application, customs officers from 35 provincial and municipal customs departments and the business community understood many issues prescribed in Circular 81/2019 / TT-BTC on risk management in customs operations.

Specifically, the first and important new point is to add the object of law compliance assessment, as well as compliance assessment for customs declarants. Previously, the object was only enterprises engaged in import, export and transit. On the other hand, the customs agency publicizes the assessment criteria for compliance, risk level of the customs declarant and the assessment results of compliance level of the customs declarant for enterprises to grasp, implement and avoid errors and violations in the customs clearance.

Besides, the compliance level assessment is classified into five levels; each customs declarant is assessed and classified according to a uniquecompliance level which is published for enterprises to know and follow.