Officials of Vietnam-Singapore Industrial Park Customs Branch - Binh Duong Customs Department inspect imported goods, November 2022. Photo: Dang Nguyen

Potential risks

The need to import and export precursors to serve economic and social development in Vietnam has been increasing. Precursors are used legally and widely in the medical industry and scientific research. According to statistics from the Anti-Smuggling Investigation Department, General Department of Customs, the number of imported and exported precursor chemicals used in the medical industry and scientific research of the following year is usually about 10% higher than the previous year.

In 2023 and the first six months of 2024, import and export activities of precursors nationwide arose at 20 local Customs Departments with about 700 businesses participating in customs procedures. Enterprises engaged in import and export of industrial precursors are concentrated mainly in provinces and cities with industrial parks and export processing zones. Specifically, in 2023, the volume of imported chemicals as precursors, narcotics, and psychotropic substances was more than 400,000 tons and more than 7 million liters, of which on-site imports were 18,000 tons and more than 230,000 liters; the export volume was nearly 70,000 tons and more than 22,000 liters, of which on-site exports were 14,000 tons and more than 22,000 liters.

In the first half of 2024, the imports of chemicals as precursors, narcotics, and psychotropic substances imported were nearly 250,000 tons, twice as much as the same period in 2023 and more than 2.4 million liters, about 600,000 litters lower than the same period in 2023. Meanwhile, exports recorded 34,000 tons, 6,000 tons lower than the same period in 2023 and more than 20,000 liters, five times higher than the same period in 2023.

Chemicals and precursors are used in glue production, industrial paint, plastic production, leather and footwear production, textile dyeing, water treatment, detergents... However, it does not exclude the risk of these precursor being abused for illegal purposes because the precursors are indispensable chemicals in the drug production and process.

As a member of the Central Interdisciplinary Working Group on controlling legal activities related to drugs, the Anti-Smuggling Investigation Department participated in the inspection team at the headquarters of 9 enterprises, of which 6 enterprises exposed violations, specifically, violations of exporting precursors without an export license from a specialized management agency, importing veterinary drugs containing precursors without a license from a specialized agency, issued import-export licenses for precursors are not consistent with the actual goods...

Strict management while creating favorable conditions for businesses

Given the fact that the need to import and export chemicals and precursors in economic activities is increasing but also poses many potential risks, the Customs sector has determined that the management of import and export activities of chemicals and precursors must be strict to control risks from these items, but must also support the production and business activities of enterprises. Accordingly, the implementation of Official Dispatch 1276/TCHQ-DTCBL and Plan No. 1884/KH-TCHQ dated May 4, 2024 of the General Department of Customs on fighting against smuggling and illegal transportation of narcotics and precursors crossing the border in 2024 has contributed to raising the awareness of Customs officials and industrial precursor import-export enterprises, strengthening the management capacity of Customs for chemicals that use precursors, psychotropic substances, narcotics.

At local Customs departments, many synchronous and creative solutions have also been implemented, bringing positive effects in the control of imported and exported chemicals and precursors.

Mr. Le Thanh Van, Deputy Director of Dong Nai Customs Department, said that as soon as the General Department of Customs issued Plan 1884, the unit developed a plan to prevent illegal transportation of drugs and precursors in the area and has deployed measures to all officials and civil servants. Every month, Dong Nai Customs Department also directs units to review and compile statistics on enterprises importing precursors to report to the General Department of Customs and the Police for coordination. In addition, the unit also signed a coordination regulation with Dong Nai Provincial Police and other units such as the Department of Industry and Trade and the Industrial Park Management Board on precursor management. Quarterly, based on the statistical reports of Dong Nai Customs Department, an interdisciplinary team chaired by the Department of Industry and Trade along with Customs units, Industrial Park Management Board, and Police inspect the use of precursors of businesses.

The leader of Bac Ninh Customs Department also said that the unit has assigned the Anti-Smuggling Advisory Division to be the focal point to implement a plan to monitor, urge and coordinate with the Customs Enforcement Team to regularly review data, to inspect and evaluate the compliance level of a number of enterprises engaging in importing and exporting chemicals and precursors in the area.

In particular, Bac Ninh Customs Department assigned the professional division to research and build an information technology application to support civil servants. Because chemicals and precursors are relatively complex items, the processing time for these items takes quite a long time compared to other common goods. Bac Ninh Customs Department's software supports civil servants in identifying declared goods names and CAS codes to issue warnings about chemicals and precursors in the list of management policies. The application of this software has significantly shortened the customs declaration processing time of businesses, while minimizing risks.

The leader of Bac Ninh Customs Department said that after only a short time of use, the branches have searched about 2,000 times and have discovered that some enterprises import chemicals with a license but they do not have a license.