HA NOI UNIVERSITY OF BUSINESS AND TECHNOLOGY PAGE MINISTRY OF EDUCATION AND TRAINING HANOI UNIVERSITY OF BUSINESS AND TECHNOLOGY FACULTY OF ENGLISH * * * * * GRADUATION ASSIGMENT VIET NAM CUSTOMS AND[.]
MINISTRY OF EDUCATION AND TRAINING HANOI UNIVERSITY OF BUSINESS AND TECHNOLOGY FACULTY OF ENGLISH * * * * * GRADUATION ASSIGMENT VIET NAM CUSTOMS AND E-CUSTOMS DECLARATION IN BAC NINH CUSTOMS Student: Nguyen Thi Thu – Group: BBE 12.02 Course: 2007-2011– Supervisor: Do Thi Thu Nga, M.A HANOI, 2011 TABLE OF CONTENTS TABLE OF CONTENTS ACKNOWLEGEMENTS ABBREVIATION INTRODUCTION CHAPTER I INTRODUCTION OF VIET NAM CUSTOMS Functions 1.1 Organization structure: Statement of Vietnam customs 2.1 Vision 2.2 Mission statement .7 CHAPTER II CURRENT SITUATION OF BAC NINH E-CUSTOMS DECLARATION Process of the application of e-customs declaration in Bac Ninh customs Model of e-customs declaration in Bac Ninh customs 11 Positive results after applying e-customs declaration 12 - Improved customs procedures: .13 - Modernization of customs staffs team: .15 CHAPTER III 18 THE DIFFICULTIES IN THE PROCESS OF E-CUSTOMS DECLARATION OF BAC NINH CUSTOMS 18 The lack of information technology and infrastructure 18 Computer skill and professional ability of enterprises and customs offices .23 CHAPTER IV 24 SOLUTIONS TO IMPROE E-CUSTOMS DECLARATION OF BAC NINH CUSTOMS 24 1.Improvement of information technology and infrastructure 24 - The use of human resource management 26 CONCLUSION .30 BIBLIOGRAPHY 31 ACKNOWLEGEMENTS I wish to express my sincere thanks and special gratitude to Mrs Do Thu Nga, my tutor in studying theory, who kindly supervised and gave me encouragements at all stages of my work I am grateful to the leader, the heads of three teams and all members of Bac Ninh Customs, who whole-heartedly provides help and co-operation for my thesis Though I am not working in a company, the knowledge that I study in Ha Noi University Business and technology (HUBT) is very valuable and I am very happy to apply it to the development of Bac Ninh Customs I am indebted to the HUBT for having provided me the interest to study - ABBREVIATION GDVC: General Department of Vietnam Customs IT LAN : Information Technology : Local Area Network WAN : Wide Area Network LAN : Local Area Network - INTRODUCTION Along with the rapid development of international trade in some recent years, the quantity of imports and exports through a country is more and more increased The diversification of international business transaction requires each country to improve and modernize customs procedures; research and apply modern customs management methods to create favorable conditions for import and export activities of companies, push up the development of economy but still ensure the country’s security Vietnam customs is striving to reach: “the advanced management level of other regional customs administrations , transparent legal system in compliance with international standards; professional and specialized staff; clearance system mostly based on automation and application of risk management and modern technical equipments in order to facilitate trade and attract foreign direct investment making active contribution to the fostering of economic growth, national revenue collection and security” While considerable reform measures have been undertaken recently, Bac Ninh customs is still considered slow, lack of information technology and infrastructure The Customs administration will need to change significantly in the direction of modernization, improvement of information technology and infrastructure As a citizen of Bac Ninh city, I have been watching the positive change of my city In term of modernization, Bac Ninh customs is now concentrating on the implementation of electronic customs declaration, the first stage of ecustoms procedures That is the reason for my GRADUATION ASSIGNMENT: “Vietnam customs and E-customs declaration in Bac Ninh customs” - CHAPTER I INTRODUCTION OF VIET NAM CUSTOMS Functions The main function of Vietnam Customs is the State management over customs with regard to exported, imported or transited goods, transport means on exit, entry and in transit, of foreign and domestic organizations and individuals; and the organization and operation of the customs service 1.1 Organization structure: The Customs Administration has undergone several organizational and structural changes over the last 60 years since its birth in 1945 The General Department of Viet Nam Customs (GDVC) was established in April 1984 and placed directly under the Government’s authority but in September 2002, it was placed under the Ministry of Finance As a result, the strategic planning process has also been altered accordingly The organizational system of Vietnam Customs now consists of: a/ The General Department of Customs; b/ Customs Departments of provinces, inter-provinces, and centrally-run cities; c/ Border-gate customs sub-departments, customs control squads and equivalent units - - Task of the customs service: +To propose policies and measures for customs-related state management over the import, export, exit, entry and transit activities as well as tax policies applicable to import and export goods +To inspect and supervise goods and means of transport; +To prevent and combat smuggling and illegal cross-border transportation of goods +To organize the implementation of tax law applicable to import and export goods +To make statistics on import and export goods - Principles for organization and operation of the customs: + Vietnam Customs shall be organized and operate according to the principles of centralized and uniform command + The General Director of Customs shall uniformly manage and execute activities of the Customs at all levels; the Customs at lower level shall submit to the management and direction by the Customs at higher level Statement of Vietnam customs 2.1 Vision The Customs of Vietnam is a highly professional, modern, transparent, and effective Customs Administration meeting requirements of actual situations and national economic development - 2.2 Mission statement + Enforcing the effective management over imports & exports activities and international trade, providing favorable conditions to the trade and production development + Protecting and contributing to the facilitation of development of national economy + Protecting revenues + Fighting against smuggling, combat commercial fraud, protecting the interests of consumers + Contributing to the protection of economic sovereignty, national security and community security - CHAPTER II CURRENT SITUATION OF BAC NINH E-CUSTOMS DECLARATION Process of the application of e-customs declaration in Bac Ninh customs According to Decision 149/QD-TTg by the Government, the first period is the experimenting application of e-customs procedures at Hai Phong and Ho Chi Minh customs departments Based on the result of the first period, the second period will be widening to other applicable departments Hanoi customs department is one of those departments in the second period Being a sub-department of Hanoi Customs, Bac Ninh customs has been quickly planning and implementing e-customs procedures The process of the application of e-customs declaration in Bac Ninh customs was divided into two phases: - The first phase: E-customs declaration was experimentally implemented at industrial team (customs procedure team for managing industrial zones) This team was equipped with one International Business Machines (IBM) server and ten computers Besides, there are computers with ready software of e-customs declaration for enterprises to learn and implement ecustoms declaration At that moment, registration customs officers are also equipped with knowledge of e-customs declaration, so that they can not only receive and perform their jobs with the data from enterprises, but also to some extend, - understand how to use e-customs declaration software Because this software is absolutely new to enterprises, enterprises may face difficulty in declaring e-customs, then customs registration officer, who directly communicate with enterprises, help enterprises solve the problem Hanoi customs department understood the situation, so they organized training programs for both customs officers and enterprises, where most worries and questions were answered by the software writer and network administrators Table 1: Number of e-customs declaration form registered in first phase Year 2007 Apri Ma Jun Jul Augus Septembe Octobe Novembe Decembe l y e y t r r r r 361 548 706 782 Number of ecustoms forms 172 373 381 120 registere d (Source: Report of e-customs declaration by Industrial team) Despite of many difficulties, it is fortunate that this program is welcome and Bac Ninh customs received support from enterprises Canon Vietnam Co., ltd – Que Vo Branch is the first enterprises to apply e-customs declaration model in Bac Ninh, therefore, a lot of other enterprises were also eager to take participation The number of e-customs declaration form is therefore increased month by month - officers and build up a co-operative relationship between customs office and enterprises After application of e-customs declaration in Bac Ninh customs Bac Ninh customs has achieved few positive results Besides it faces to many difficulties below CHAPTER III THE DIFFICULTIES IN THE PROCESS OF E-CUSTOMS DECLARATION OF BAC NINH CUSTOMS Beside the positive results in more than one year of implementing e-customs declaration, Bac Ninh customs also faced a lot of difficulties and obstacles, not only in the operation of e-customs procedures, but also the preparation process to e-customs clearance in the future The lack of information technology and infrastructure * Information technology (IT): - Declaring model through website: This method is very useful for small enterprises or for enterprises seldom imports and export Enterprises just need to declare its tax code and input the data from the customs registration form to send to customs office However, it actually seems to be unused in Bac Ninh customs because of the defects of the website The website only let enterprises declare customs form in case of commercial contract (sell and buy through bolder gates) The type of processing contracts and importing materials to export was not updated, so it can be supported for liquidity This function is important and valuable to Bac Ninh customs, because processing contracts and importing materials to export activities account for a big proportion of customs procedures Therefore, declaring through website is little known and rarely used - Declaring through Thai Son company’s software: E-customs declaring software built by Thai Son company in comparison to website declaring method has the ability to work with the liquidity of processing contracts and importing materials to import types Enterprises buy and install the software in their own computers to declare to customs office through Internet The data is saved in the computer to support for liquidity Thank to this, computer can automatically calculate the remaining materials left of enterprises, reducing labor force to hand-work liquidity Thai Son company’s e-customs declaration software has three versions: + ECUS-K: for declaring e-customs with commercial contracts; + ECUS-G: for declaring e-customs with processing contract; + ECUS-X: for declaring e-customs with importing materials for exporting products However, Thai Son company does not have enough ability to provide software maintenance and support for more and more enterprises from all regions in our country Moreover, this program is newly written, then it has some errors cannot update to be suitable for the real situation of Bac Ninh customs, which leads to the worry of enterprises in buying and implementation of the software - The relationships with other related organizations: The experienced lessons in other countries show that in order to set up a successful e-customs procedure, it is important to have an electronic governmental basis, a management information system to combine strictly and consistently database between customs offices and other related organizations such as: investment authorized organizations, shipping -