The quality of goods classification for customs inspection has improved in the direction of increasing the percentage of Green channel, reducing the proportion of Yellow and Red channels; rate of Red channel is maintaining at an appropriate level following the management requirements, this is one of the efforts of Customs in risk management.

Professional activities at Cam Pha port Customs Branch
(Quang Ninh Customs Department). Photo: Đào Dương

The rate of Red channel is at an appropriate level

According to the leader of the Risk Management Department, the quality of goods classification for customs inspection has been improved in the direction of increasing the percentage of Green channels, reducing the proportion of Yellow and Red channels.

The reason is that the Customs sector conducts compliance assessment under the new mechanism, leading to a change in classification structure according to the declaration, which is decided by the criteria of firm class.

From January 1, the Risk Management Department has upgraded the risk management information system for the firm profile component; conducted research to complete the criteria on the profile of organisations and individuals for compliance assessment and risk assessment for customs declarants (besides exporting, importing and transited goods) and compliance assessment and risk classification.

In addition, the Risk Management Department has guided and clearly decentralised the responsibilities of provincial and municipal customs departments in implementing the 2021 plan for collecting and processing risk management information. At the same time, appoint staff to urge the implementation and promptly exchange and handle problems in collection and handling of risk management information at customs units at all levels.

According to the leader of the Risk Management Department, the rate of Red channel is maintaining at an appropriate level as per management requirements. However, some customs departments of provinces and cities have a high rate of Red channel by more than 10% such as Lang Son Customs Department (20.01%), Quang Tri Customs Department (11.01%) and Dak Lak Customs Department (11%).

The rate of channel classification of Green-Yellow-Red channels
in the first 6 months of 2021. Source: General Department of Vietnam Customs

Clear, transparent and open

Tran Duc Nghia, director of Delta International Co., Ltd., member of the Executive Committee of the Vietnam Logistics Business Association, said 25 years ago, risk management had not been applied and the rate of import and export goods subject to inspection was up to 100%.

"If the previous management method was put in the context of the current import and export volume of goods, it would not be able to satisfy," Nghia said.

According to Nghia, the VNACCS/VCIS system has fundamentally and completely changed customs procedures. With more than 10 million declarations each year, if the computerisation, information technology and risk management were not applied, it couldn’t meet development requirements. From the beginning of 2021, the Prime Minister approved the scheme "Reforming the model of quality inspection and food safety inspection for imported goods", with the focal is the Customs authority. Firms themselves carry out procedures about 40,000 declarations per year across the country, if this project could be implemented, along with administrative procedures of departments, agencies and sectors, and integrated on the National Single Window Portal, it would save a lot of resources.

Recently, at the announcement of the Report "The level of satisfaction of firms in implementing import-export administrative procedures: Survey results in 2020", Nguyen Thi Minh Thao, Head of the Business Environment Research Department and competitiveness (Central Institute for Economic Management - CIEM) appreciated the efforts of administrative procedures reform of the Customs authority to support businesses.

Thao emphasised that the General Department of Vietnam Customs has pioneered the application of information technology, perfecting the VNACCS/VCIS system, helping businesses carry out procedures and receive 24/7 support from Customs. This has made the declaration and cargo clearance of firms much more convenient.

A notable positive point is the reform of criteria as well as requirements related to risk management in customs. Accordingly, the criteria have been set out very clearly, transparently and publicly, following the international practices, helping firms to identify opportunities to be recognised as authorised economic operator (AEO), or firms performing good law compliance. Doing this has helped to increase the compliance of businesses with the law, and reduce administrative pressure on State management agencies, Thao said.