GRADUATE REPORT Implementation Process of E-Customs Procedures for Frozen Seafood Export at Danang Seaproducts Corporation

Being allowed to work and practice at Danang Seaproducts Corporation, under the guidance and clarification of experts, I have been able to refine my knowledge and successfully carry out the electronic customs declaration process. However, through personal observation during the internship and listening to the experiences shared by colleagues involved in customs declaration procedures, I have identified existing limitations and errors in the electronic customs declaration process at the company, hindering the export process. This urgency has led me to undertake the research topic “ Implementation Process of E-Customs Procedures for Frozen Seafood Export at Danang Seaproducts Corporation” to analyze, evaluate, and propose specific solutions to improve the electronic customs declaration process at Danang Seaproducts Corporation. This research will analyze the electronic customs declaration process for frozen seafood products at a manufacturing company, providing international business students with a detailed and practical understanding of customs declaration procedures within an enterprise. The research will also identify suitable solutions to enhance the electronic customs declaration process for Danang Seaproducts Corporation, making it faster and more efficient, thereby contributing to the company's future development. Additionally, this research will enable regulatory agencies and stakeholders to exercise better control over import-export businesses. Furthermore, it will provide these regulatory agencies with a realistic perspective from export enterprises, particularly those directly involved in electronic customs declaration, to propose appropriate support and assistance for export facilitation

The University of Danang University of Economics Faculty of International Business



GRADUATE REPORT Implementation Process of E-Customs Procedures for Frozen Seafood

Export at Danang Seaproducts Corporation

Student: Ho Thi Dieu Hien Class: 46K01.2

Instructor: PhD Bui Huynh Nguyen

Danang, May, 2024

Dear teachers and colleagues working at Danang Seaproducts Corporation,

After four years of studying and practicing at Da Nang University of Economics, Ihave accumulated a lot of useful knowledge for myself I would like to sincerely thank theenthusiastic lectures and valuable knowledge that the teachers of the Faculty ofInternational Business enthusiastically conveyed to me in the classroom Those lecturesfrom the teachers will be valuable luggage and experience to help me move forward in mynext career journey In particular, I would like to sincerely thank Mr Bui Huynh Nguyenfor directly guiding, editing and supplementing so that I could complete the topic

"Implementation Process of E-Customs Procedures for Frozen Seafood Export at DanangSeaproducts Corporation" the best

Besides, I would like to thank the board of directors of Danang SeaproductsCorporation, especially the staff in the import-export sales department, for their dedicatedguidance and for providing me with many documents related to the actual reporting topicinternship at the company

Finally, during my internship and reporting, I tried my best to research and learn.However, due to limited knowledge and lack of experience, the report cannot avoidshortcomings I look forward to receiving reviews and suggestions from teachers, so that Ican further improve the topic

Thank you sincerely

I hereby declare that the internship report on the topic “Implementation Process of Customs Procedures for Frozen Seafood Export at Danang Seaproducts Corporation” is

E-my independent research under the guidance of PhD Bui Huynh Nguyen while working

at Danang Seaproducts Corporation

All information and data mentioned in the report are completely accurate andcontain no fraud All information and references have been fully cited The report has aplagiarism rate of 1% according to Turnitin, with no individual source exceeding 10%,meeting the requirements of the faculty of International Business

I am responsible to the faculty and school for this commitment

Da Nang, May 2024 Student

Ho Thi Dieu Hien

CHAPTER 1: THE THEORETICAL BASIS OF CUSTOMS PROCEDURES FOR

1.4.2 Comparison between electronic customs procedures and traditional customs

1.4.3 Principles of conducting electronic customs procedures 181.4.3.1 Participation in the electronic customs data declaration system 18

1.4.5 Characteristics of electronic customs procedures 201.4.6 Legal documents on electronic customs procedures 21

1.4.6.2 Sub-law documents and local customs regulations 21

2.1 General introduction to Danang Seaproducts Corporation 26

CHAPTER 3: ELECTRONIC CUSTOMS CLEARANCE PROCEDURES FORFROZEN SEAFOOD EXPORTS OF DANANG SEAPRODUCTS CORPORATION 403.1 Overview of electronic customs clearance procedures at the company 403.2 Resources for applying electronic customs procedures Danang Seaproducts

3.2.2 Infrastructure and equipment of the export department 41

3.3 Electronic customs clearance procedures at Danang Seaproducts Corporation 42

3.3.2 Flowchart and detailed steps of the electronic customs clearance procedure at

3.3.3 Evaluate the process of implementing electronic customs procedures of

CHAPTER 4: SOLUTIONS TO IMPROVE THE CUSTOMS CLEARANCE

4.2.3 Facility solutions 65

Abbreviations Explain

APEC Asia - Pacific Economic Cooperation

ASEAN Association of Southeast Asian Nations

CPTPP Comprehensive and Progressive Agreement for Trans - Pacific

Partnership

EVFTA European - Vietnam Free Trade Agreement

HACCP Hazard Analysis and Critical Control Points

SEAFISH CORP Danang Seaproducts Corporation

LIST OF TABLES

Table 1-1: Comparison of electronic customs procedures and traditional customs

procedures 13Table 2-1: The company's export market structure from 2021-2023 29Table 2-2: Labor structure of Danang Seaproducts Corporation through 3 years 2021,

2022 and 2023 34Table 2-3: List of machines at the factory 36Table 2-4: Revenue and profit of Danang Seaproducts Corporation in 3 years 2021, 2022, 2023 38Table 3-1: HS Codes of exported products at Danang Seaproducts Corporation 41Table 3-2: Table comparing the validity of documents 45

LIST OF FIGURES

Figure 1-1: Register information on VNACCS software 54

Figure 1-2: Basic electronic customs procedures 22

Figure 2-1: Logo of Danang Seaproducts Corporation 27

Figure 2-2: Current product lines 31

Figure 2-3: Organizational structure of the company 32

Figure 3-1: Electronic Customs Clearance Procedures at Danang Seaproducts Corporation 42

Figure 3-2: New registration of export declaration (EDA) 47

Figure 3-3: Group of types in export declaration 48

Figure 3-4: Importer and exporter information in the export declaration 49

Figure 3-5: Bill of lading information in export declaration 50

Figure 3-6: Register the goods identification number 51

Figure 3-7: Contract information in the export declaration 52

Figure 3-8: License documents in the export declaration 52

Figure 3-9: Invoice information in the export declaration 52

Figure 3-10: Tax and guarantee information 53

Figure 3-11: Attached information for shipment 54

Figure 3-12: Shipping information in export declaration 54

Figure 3-13: Container information in export declaration 55

1 Rationale

The Vietnamese economy has made remarkable strides in recent years The averageGDP growth rate during the 2016-2020 period reached 6.8% per annum, surpassing theregional and global averages Vietnam has emerged as one of the fastest-growingeconomies in the Asia-Pacific region In recent times, Vietnam has strongly integratedinto the global economy, becoming a member of several crucial international and regionalorganizations such as the WTO, ASEAN, APEC, CPTPP, and EVFTA Internationalintegration has opened up numerous opportunities for Vietnam, including attractinginvestment, expanding export markets, promoting science and technology, and enhancinginternational standing Some notable achievements of the economy include merchandisetrade turnover reached USD 755.3 billion in 2022, a 10.5% increase compared to 2021.Additionally, Vietnam attracted USD 31.15 billion in new registered FDI, marking a13.5% increase from 2021 Particularly noteworthy is the significant improvement inliving standards, with per capita income reaching USD 4,180 in 2022 [CITATION GEN22 \

n \l 1033 ]

For Vietnam, international economic integration is the pathway to expandingmarkets, enhancing competitive capabilities, leveraging advantages, fostering innovation,and addressing limitations through learning experiences from partners and competitors inthe market Recognizing the role and significance of international economic integration,the Party has consistently advocated for enhanced integration into regional and globaleconomies Consequently, intensifying activities such as import-export trade, cooperativecommerce, and economic expansion with countries worldwide have garnered strongattention and direction from the Party and the State [ CITATION Min20 \l 1033 ]

Utilizing electronic customs procedures provides numerous benefits to businesses,helping them save resources such as costs, workforce, and time, facilitating swift customsclearance, and reducing administrative burdens However, according to the results of the

"Business Satisfaction with Administrative Procedures for Import and Export in 2020"report, businesses still encounter various difficulties in pre-clearance, clearance, and post-

clearance stages [CITATION Dep21 \l 1033 ] Some challenges include inaccuracies indeclaring HS codes, inaccuracies in criteria on customs declaration software, errors indocuments, and inspection errors, resulting in time and cost burdens for both businessesand customs authorities when incorrect declarations are made.

Being allowed to work and practice at Danang Seaproducts Corporation, under theguidance and clarification of experts, I have been able to refine my knowledge andsuccessfully carry out the electronic customs declaration process However, throughpersonal observation during the internship and listening to the experiences shared bycolleagues involved in customs declaration procedures, I have identified existinglimitations and errors in the electronic customs declaration process at the company,hindering the export process This urgency has led me to undertake the research topic “Implementation Process of E-Customs Procedures for Frozen Seafood Export at DanangSeaproducts Corporation” to analyze, evaluate, and propose specific solutions to improvethe electronic customs declaration process at Danang Seaproducts Corporation Thisresearch will analyze the electronic customs declaration process for frozen seafoodproducts at a manufacturing company, providing international business students with adetailed and practical understanding of customs declaration procedures within anenterprise The research will also identify suitable solutions to enhance the electroniccustoms declaration process for Danang Seaproducts Corporation, making it faster andmore efficient, thereby contributing to the company's future development Additionally,this research will enable regulatory agencies and stakeholders to exercise better controlover import-export businesses Furthermore, it will provide these regulatory agencies with

a realistic perspective from export enterprises, particularly those directly involved inelectronic customs declaration, to propose appropriate support and assistance for exportfacilitation

2 Objectives

Systematizing the theoretical foundations of customs procedures and electronic customsprocedures Studying the roles and relevant legal regulations related to theimplementation of electronic customs procedures Synthesizing the process ofimplementing electronic customs procedures according to the specific guidance of the

general department of customs The report also aims to analyze and evaluate the process

of implementing electronic customs procedures at Danang Seaproducts Corporation andassess the strengths and weaknesses of this process This provides a basis for proposingsolutions to improve the implementation of electronic customs procedures at thecompany

of customs declaration and customs procedures execution at the import-export department

of the company Through this, a comprehensive understanding and specific insights intothe work and related information regarding the topic obtained

b) Interview

The interview research method involves collecting information by directly askingquestions to the interviewees to gather their opinions, viewpoints, and evaluations on aparticular issue or phenomenon In this report, I presented a series of questions tointerview employees working at the import-export department of Danang SeaproductsCorporation

c) Data Collection and Analysis

Secondary data relevant to the report were collected and analyzed to provideaccurate insights These sources mainly comprised documents, papers, and recordsprovided by the import-export department at Danang Seaproducts Corporation.Additionally, the report relied on legal documents, publicly available materials from otherorganizations, textbooks, and lectures.

5 Research structure

The report consists of 4 main chapters:

Chapter 1: The theoretical basis of customs procedures for exporting frozen seafoodproducts

Chapter 2: Overview of Danang Seaproducts Corporation

Chapter 3: Implementation Process of Electronic Customs Procedures for ExportingFrozen Seafood Products at Danang Seaproducts Corporation

Chapter 4: Solutions for Improving the Implementation Process of Customs Procedures

CHAPTER 1: THE THEORETICAL BASIS OF CUSTOMS PROCEDURES FOR EXPORTING FROZEN SEAFOOD

The importance of the process

The process plays a crucial role in quality management and improving theperformance of an organization

Enhancing consistency: Processes help organizations identify and describe activities,from receiving orders to production and delivery, in a specific and systematic manner.This fosters consistency in how tasks are executed, reducing variability and enhancing thequality of products or services

Improving efficiency and effectiveness: By identifying and optimizing processes,organizations can eliminate waste and enhance efficiency in resource, time, and laborutilization This leads to improved organizational performance and reduced production orservice delivery costs

Increasing reliability: Clearly define processes that adhere to standards ensure thereliability and trustworthiness of the products or services provided Establishing qualitycontrol processes and ensuring their proper implementation helps prevent errors andenhance customer satisfaction

Facilitating continuous improvement: Encourage the establishment of a continuousimprovement process, where organizations continuously monitor, evaluate, and improvetheir processes to enhance quality and performance This helps organizations maintaincompetitiveness and achieve sustainable growth in the market.[ CITATION ISO16 \l 1033 ]

1.1.2 Criteria for evaluating the process

According to Michael Dumas, the four general aspects of process performancemeasurement are:

Efficiency: Measure the ability of the process to perform tasks efficiently and withhigh productivity Efficiency is often measured by the ratio of output to resources

Quality: Measure the extent to which the process meets the requirements for product

or service quality This may include accuracy, reliability and meeting customerrequirements

Time: Measure the time required to complete a cycle of the process, from start tofinish Time can be measured using indices such as processing time, waiting time andturnaround time

Cost: Measure the costs associated with implementing the process, including bothdirect and indirect costs Evaluating costs helps management understand the expenses ofthe process and find ways to improve performance and reduce costs.[ CITATION Mic05 \l 1033 ]

These aspects provide a comprehensive view of process performance from variousperspectives, helping organizations understand and improve processes comprehensively

1.1.3 Solutions for building an effective process

According to Avery Blank, there are 5 steps to building an effective process

Step 1: Define the ultimate goal to be achieved To build a process, it is necessary tounderstand the goals and desires, and then begin the work from the bottom up

Step 2: Identify the relevant parties to participate in the implementation steps and formthe process Performing a task or creating products, services may require involvementfrom multiple departments, experts, or specialists These individuals will help reviewwhether everything in the process is appropriate and effective

Step 3: Consider what technology the process needs to be compatible with Thecomponents of an effective process are objectivity and consistency Automation canachieve these goals Therefore, technology is something to consider in order to automatethe process.

Step 4: Anticipate any difficulties or risks in a process Considering barriers whenbuilding an effective process leads to considerations for adjusting resources, factorsinvolved in the process to adapt to difficulties or avoid them

Step 5: Ensure that the process is improved A good process must always be improvedbecause everything changes over time As needs change, resources change, the processneeds to be changed to adapt and be effective

1.2 Overview of frozen seafood

1.2.1 The concept of frozen seafood

According to the FAO (Food and Agriculture Organization of the United Nations)frozen seafood: Seafood that has been preserved by lowering its temperature to below thefreezing point of water (-18°C or 0°F) to prevent the growth of microorganisms andenzymes, which helps extend shelf life and maintain product quality [ CITATION Foo12 \l

1033 ]

Frozen seafood: Fresh or processed seafood that is preserved at low temperatures 18°C or lower) for a long period of time to keep the quality, flavor, and nutritional value

(-of the product intact

The definition of frozen seafood may vary depending on the organization, country,and intended use

1.2.2 Characteristics of frozen seafood

Frozen seafood has the following characteristics:

Long shelf life: Frozen seafood can be stored for long periods (from months toyears) without spoiling, as the freezing process slows down or stops the activity ofmicroorganisms and enzymes

Good quality: Frozen seafood is stored at low temperatures to maintain the quality,flavor, and nutritional value of the product

Convenience: Frozen seafood is easy to transport, store, and use, saving time andmoney for consumers.

Variety: Frozen seafood comes in a wide variety of types and species, meeting thediverse needs of consumers

1.3 Overview of goods export

1.3.1 Export concept

Export can be understood as the activity of selling goods and services from onecountry to another, based on using currency as a means of payment In history, gold,silver, and precious stones were commonly used as payment methods for export activities.However, nowadays, currency plays a dominant role in import-export transactions

Export is an integral part of international trade, which has existed for a long timeand has been increasingly developing in the context of globalization Export activitiescontribute to a country's trade balance When the value of exports exceeds the value ofimports, the country is considered to have a trade surplus Conversely, when importsexceed exports, the country has a trade deficit

This activity has certain characteristics: the entities engaging in export activities aretraders with different nationalities, goods must undergo customs procedures whencrossing the customs border of a country, the currency used in exports must be foreigncurrency for one or both parties, and export activities are subject to various localregulations and international customs

According to Article 28, Clause 1 of the 2005 Law on Commerce of Vietnam,

"Export of goods means the act of bringing goods out of the territory of Vietnam orbringing them into special zones located on the territory of Vietnam considered separatecustoms zones under the provisions of the law" In other words, export is defined byVietnamese law as the business activity of selling goods to foreign markets, benefiting thecountry

Export plays an important role in the national economy, contributing to promotingproduction, business, creating employment, and improving people's lives Additionally,the export of goods has helped rapidly increase foreign exchange earnings, significantly

contributing to the national economy Enhancing exports is one of the key tasks of thestate in developing the country's economy and society.

1.3.2 Export forms

Export activities to international markets mainly have the following forms:

Direct exporting

Direct exporting involves manufacturers or suppliers directly selling their products

to international customers in the target market, bypassing intermediaries This approach iscommonly used when businesses aim to expand market reach or maximize profits based

on comparative advantages between countries [ CITATION Aja18 \l 1033 ]

Characteristics of this export form include allowing enterprises to decide on pricing,products, markets, marketing strategies, and profit optimization Additionally, it helpsenhance a company's competitive edge in the market, asserting its brand and productposition against competitors Direct exporting eliminates intermediary commission costs,potentially resulting in high profits; however, it also entails significant business risks.This approach also entails higher risks compared to other forms, as any mistakes orunfavorable issues may result in complete losses for the company, as it directly engages inthe transaction procedures

Indirect exporting (Commission Exporting)

Indirect exporting involves selling goods to foreign markets through third parties(export intermediaries) such as agents or brokers [ CITATION Aja18 \l 1033 ]

It can be observed that indirect export transactions are conducted through anintermediary, where the exporting company does not directly engage with foreign buyers.The intermediary performs export activities such as seeking customers, negotiating prices,transporting goods, and collecting payments from buyers This is the quickest and theleast costly approach, aiding small companies or businesses facing barriers related tofinancial capabilities, partners, or language barriers when entering foreign markets Asintermediaries possess experience and knowledge of foreign markets, they help businessesminimize risks related to payment, legal matters, and other commercial risks Companiescan reduce costs as they do not need to invest in direct export activities such as marketing,advertising, transportation, and payment collection Additionally, intermediaries have

extensive customer networks that can help businesses access new markets that they maystruggle to penetrate independently However, when using this export method, companieshave limited control over the export process and may encounter difficulties in monitoringorder progress and product quality Furthermore, businesses may receive lower profits asthey have to share a portion of the profit with intermediaries.

Exporting compels businesses to continually improve product quality, services,innovate production technology, apply international standards and enhance businessmanagement to meet the increasingly high demands of the international market.Businesses can learn management, production and business experiences frominternational enterprises, thereby enhancing competitiveness and market position

Exporting helps businesses access cheap raw materials, high-quality inputs, andadvanced technology from other countries, thereby reducing production costs, improvingproduct quality, and enhancing competitiveness Businesses can collaborate with foreignpartners to transfer technology and learn production and management experiences

Exporting plays a crucial role in promoting the country's economic development,creating employment, increasing income for workers, and contributing to improvingsocial life Exporting businesses contribute to increasing export turnover, attractingforeign investment, and creating conditions for international economic integration

Impacts on the Vietnamese economy

Practical experience has identified exporting as playing an extremely important role

in Vietnam's economic development and international economic integration, contributing

to promoting economic growth, creating employment, and improving people's lives

Firstly, exporting is the main driver of Vietnam's economic growth, significantlycontributing to the country's GDP When exporting products to the international market,businesses earn foreign currency which can be used to import raw materials, equipments,and other goods to serve production and consumption domestically Exporting also helpsexpand the market for domestic products, creating conditions for domestic businesses todevelop production and business.

A significant contribution that exporting brings is creation many jobs for workers,especially in export-oriented industries and services When businesses export products,they need to increase production to meet the demand of the international market Thisleads to the recruitment of additional labor, creating jobs, and increasing income forworkers

To compete in the international market, Vietnamese businesses need to improveproduct quality, services, and management capacity Export activities compel businesses

to apply international standards, innovate technology and improve production efficiency.This contributes to enhancing the competitiveness of Vietnamese businesses in theinternational market

Exporting helps Vietnam attract foreign investment in export industries and services.Foreign investors will invest in Vietnam to take advantage of cheap labor, openinvestment environment, and potential export markets Foreign investment activitiescontribute to promoting economic development, creating jobs, and transferringtechnology to Vietnam

Furthermore, exporting helps Vietnam integrate more deeply into the globaleconomy By participating in free trade agreements, Vietnam can export products to newmarkets with low or no tariffs This helps Vietnamese businesses access larger markets,increase competitiveness, and attract foreign investment

Exporting contributes to improving people's lives by creating jobs, increasingincome, and improving living conditions When businesses export products, they earnforeign currency, which can be invested in infrastructure, education, healthcare, and othersocial areas This helps improve the quality of life for the Vietnamese people

1.4 Overview of electronic customs procedures in exporting goods

1.4.1 Definition

1.4.1.1 Concept of customs procedures

Customs procedures are defined in Chapter 2 of the 1999 Kyoto Convention as “Allactivities that customs authorities and related persons must carry out to ensure compliancewith customs laws”[CITATION Kyo99 \l 1033 ]

According to the provisions of the Customs Law of 2014, at Article 23, which wasissued on June 23, 2014, replacing the Customs Law No 29/2001/QH10 and Law No.42/2005/QH11 amending and supplementing some articles of the Customs Law,

“Customs procedures are the tasks that declarants and customs officials must performaccording to the provisions of this law regarding goods and means of transport” [CITATION Cus14 \l 1033 ]

In other words, customs procedures are mandatory procedures to comply with theregulations of the state so that goods or means of transport can be exported or transportedacross the borders of a country

1.4.1.2 Concept of electronic customs procedures

The Government, ministries and branches have advocated implementing electroniccustoms procedures Therefore, when implementing, the Prime Minister issued Decision

No 103/2009/QD-TTG on piloting the application of electronic customs procedures.During this process, customs operations are standardized in accordance with moderncustoms standards in the region and the world and converted from manual customsprocedures to electronic methods electronic customs (Decision on amendments andsupplements on pilot implementation of electronic customs procedures, 2009)

Starting from January 1, 2013, with the effective implementation of Decree No.87/2012/ND-CP, electronic customs procedures have been officially deployed acrosscustoms offices nationwide This customs clearance method significantly saves time,costs, and human resources for import-export business

According to Article 3, Clause 1 of Decree No 08/2015/ND-CP, “Electroniccustoms procedures are customs procedures in which the declaration, receipt, processing

of customs declaration information, and exchange of other information as prescribed bycustoms laws among relevant parties are conducted through the customs electronic dataprocessing system.”[ CITATION 08215 \l 1033 ]

Electronic customs procedures involve the declaration, receipt, decision-making,and processing of customs declaration information through electronic means via thecustoms electronic data processing system managed by the General Department ofCustoms, facilitating connection and information exchange regarding import-exportactivities with relevant ministries and sectors [ CITATION 08215 \l 1033 ]

Currently, organizations and enterprises use the ECUS5VNACCS electroniccustoms declaration system The ECUS5VNACCS software system is designed according

to the standards of modern electronic customs systems, fully meeting the businessprocesses of the VNACCS/VCIS system sponsored by the Japan Customs, while stillretaining the traditional design of the ECUS5 software that businesses are accustomed tousing

1.4.2 Comparison between electronic customs procedures and traditional customs

procedures

Table 1-1: Comparison of electronic customs procedures and traditional customs

procedures[CITATION Tra22 \l 1033 ]

Stage Traditional

customs procedures

Electronic customs procedures

Declaration

Registration

Documents Paper documents Electronic documents

For both the yellow and redlanes, enterprises must submitand present paper documents

in addition to the electronicdocuments sent through thesystem

Filing

Methods

Enterprises bringpaper documentsets to the customsoffice at the bordergate to directlysubmit to thecustoms

authorities whenregistering thedeclaration

Implemented at the agency,enterprises, businesses createinformation on computers andsend it to the customsauthorities via the Internet

Data Entry

System

Customs officersregister and inputdata directly orimport from thesoft disk provided

by the enterpriseinto the system, ordeclare via theInternet

The system stores informationcreated and submitted byenterprises

Declaration

Processing

The team leaderdivides declarationforms and decides

on the inspectionrate The receivingofficer prints theformal order,inspection levelfrom the system

The receiving officer receivesthe declaration divisionproposal and the sub-department leader or customssub-department approves thedivision on the system

and the customssub-departmentleader decides onthe inspectionform and level.

Goods

Inspection

GoodsInspectionResponsibility

The inspection ofgoods is carriedout by the customsprocedures team atthe customs sub-department at theborder gate (wherethe goods are

imported)

The inspection of goods iscarried out by the customsprocedures team at thecustoms sub-department at theborder gate (where the goodsare exported or imported)

RecordingInspectionResults

The inspectionresults are directlyrecorded by theinspecting officer

on the declarationform

The inspection results areentered into the system by theinspecting officer and printedout from the system on thegoods inspection result sheet

CustomsClearanceApproval

procedures teamleader approvescustoms clearance

on the paperdeclaration form

The customs procedures teamleader approves customsclearance on the paperdeclaration form

Inspection,

Price

Inspectionand Price

Goods inspection

by the customs

Inspection by the clearance inspection team is

Calculation

Determination procedures team is

carried out afterthe goods havebeen inspected

carried out after the goodshave been cleared According

to the new price determinationprocess: goods in the yellowand red lanes are inspectedbefore clearance, and goods inthe green lane are inspectedafter clearance

TaxCalculationInspection

The declarationmust undergo taxcalculation

inspection

Enterprises self-declare andself-assume responsibility forthe declared information Thesystem automatically checkstax calculation

TaxNotification

Customs officers

notifications,decisions to adjust

enterprises registerdeclarations andcalculate taxes

Tax notifications are sentalong with feedbackinformation to enterpriseswhen the declaration division

Monthly payment from the5th to the 10th at the statetreasury according to the feenotice sent by the customsauthorities via the Internet

fee receipts foreach declaration.

Tax andOther DutiesPayment

Payments via thetreasury or directly

at the customssub-department atthe border gate orbank guarantees

Payments via the treasury orbank guarantees on theprinciple that the declarantself-declares and self-pays

File

Compilation,

Storage

FileCompilation

Done by the taxaccounting andfile compilationteam after thegoods have beencleared

Done by the post-clearanceinspection team after the goodshave been cleared

File Storage A set of documents

(copy) is fullyretained by thecustoms office

procedures arecompleted, onlyreturning onedeclaration to theenterprise, and themain set ofdocuments is kept

by the enterprise

Files are stored bythe tax accounting

Customs authorities only retain

accompanying the declarationfor goods in the green and redlanes For goods in the greenlane: customs authorities onlyretain one declaration, andenterprises retain onedeclaration with the documentset and only present it whenrequested by customsauthorities Files are kept bycustoms after clearance

and filecompilation team.

1.4.3 Principles of conducting electronic customs procedures

1.4.3.1 Participation in the electronic customs data declaration system

In addition, to carry out electronic customs procedures, enterprises must completethe registration process to participate in the VNACCS system with customs authorities.a) Requirements for participating in the electronic customs data declaration systemThe procedures for registering participation in the VNACCS system with customsauthorities

It requires computer with internet connection for transmitting data to customs

Have a digital signature and a VNACCS declaration account

Operating system Windows XP Server Pack 1 or above

b) Registration and use of the system

During the first run of the program, the system will require the enterprise to registerenterprise information The enterprise needs to input complete and accurate informationthen press the "Agree" button to complete the registration

Before proceeding with the declaration, you need to set up the necessary parameters

to connect to the Customs system

Enterprises need to input complete information regarding their declaration account, which

is either provided by the Customs authorities or registered by the enterprise to participate

in the VNACCS system on the General Department of Customs website atwww.customs.gov.vn Details such as User code, Password, Terminal ID, and Terminalaccess key will be issued to match the information with the digital signature, therebyenhancing security during the participation in Electronic Customs[ CITATION Tha14 \l

1033 ]

1.4.4 Role of electronic customs procedures

For Customs authorities, electronic customs procedures significantly reduceadministrative burdens due to the fast processing time of customs dossiers in theelectronic customs procedure system (only from 1 to 3 seconds) Additionally, it helpsachieve synchronization and enhances connectivity and information exchange amongstate management agencies, thereby strengthening the effectiveness of state management

in the customs field It facilitates seamless connection with modern customs systems ofdeveloped countries worldwide, creating conditions for promoting international tradeexchanges and growth This is also an effective measure to reduce bureaucracy andnegative aspects within state agencies, as well as to minimize budget losses by limiting

Figure 1-1: Register information on VNACCS software (Source: Thai Son Company)

contact between customs officials and businesses It enhances national security, tradesecurity, and social order and safety in international integration.

For customs declarants (enterprises), electronic customs procedures providesignificant support in conducting procedures by allowing customs procedures to becarried out 24/7, enabling businesses to flexibly submit and supplement various types ofdocuments Particularly, it simplifies the requirement to submit and present customsdossiers by allowing the application of electronic documents and digital signatures Based

on risk management techniques, nearly 60% of customs dossiers are cleared immediately,and businesses can retrieve goods at ports Therefore, the application of electroniccustoms procedures reduces costs for businesses and society by decreasing the expensesassociated with customs declarations, reducing customs inspection times (especially forgreen and gold channels compared to the red channel), as well as minimizing the timespent on post-clearance inspections and addressing technical errors in businessprocedures[CITATION The \l 1033 ]

1.4.5 Characteristics of electronic customs procedures

The rapid clearance of goods is facilitated by electronic customs procedures,whereby immediately after businesses submit electronic customs declarations, thecomputer system automatically categorizes them into green, red, or yellow channels.Subsequently, customs authorities approve the channel classification and make clearancedecisions based on the electronic customs dossier submitted by businesses They providethe declaration number for businesses to print and bring to the port of export for customsclearance or make customs inspection decisions based on results from the customsdatabase and other information sources

Electronic customs dossiers adhere to standardized formats, enabling customsdeclarants to simply fill in the required information as instructed They hold legal validitysimilar to paper-based customs documents

Various electronic customs services are provided to customs declarants, includingelectronic customs declaration services, electronic payment services, and electroniccommerce services Declarants are empowered to self-declare, self-pay taxes, and handlecustoms-related fees such as customs duties

Information and data sharing with relevant parties are conducted through electronicdata exchange systems.

Modern equipment support, such as container scanning machines, surveillancecamera systems, and electronic scales, enhances customs inspection and controlprocesses

1.4.6 Legal documents on electronic customs procedures

1.4.6.1 Customs law

The Customs Law is the highest legal document of the Socialist Republic ofVietnam regarding the management and regulation of customs activities It applies toorganizations and individuals involved in exporting, importing, transiting, exiting,entering, and transporting goods, as well as to customs authorities and officials It alsoinvolves other state agencies in coordinating state management regarding customs

Currently, the Customs Law No 54/2014/QH13 dated June 23, 2014, effective fromJanuary 1, 2015, is the latest legal document on customs This document introducesseveral changes compared to the 2005 Customs Law, clearly defining the rights andobligations of relevant parties in the implementation process It fundamentally alters themethod of customs procedures from traditional to electronic methods These changessimplify customs procedures, saving time for all involved parties

1.4.6.2 Sub-law documents and local customs regulations

Decision No 3660/QĐ-TCHQ dated December 19, 2019, of the General Department ofCustoms on the regulations for exchanging electronic customs declaration information,collecting taxes, late payment fees, fines, fees, and other charges, tax guarantees forexported and imported goods, and collecting fees, charges, and other charges

Electronic Transactions Law No 51/2005/QH11 dated November 29, 2005

Tax Management Law No 78/2006/QH11 dated November 29, 2006

Decree No 128/2020/NĐ-CP stipulates administrative penalties for violations in the field

of customs

Circular No 22/2014/TT-BTC of the Ministry of Finance regulates electronic customsprocedures for commercial imports and exports.

Circular No 39/2018/TT-BTC replaces Circular No 38/2015/TT-BTC on customsprocedures, customs inspection, supervision, export and import taxes, and taxmanagement for exported and imported goods

Decision No 1996/QĐ-TCHQ dated July 10, 2015, on the issuance of customsprocedures for exporting and importing goods

Circular No 22/2014/TT-BTC dated February 14, 2014, of the Ministry of Finance,regulates electronic customs procedures for commercial imports and exports

1.4.7 Electronic customs procedures

The typical customs procedures for importing and exporting goods involve thefollowing steps:

Before the shipment arrives, the enterprise needs to:

Determine the product code, origin, and value of the goods intended forexport/import

Register for specialized inspections (if applicable)

Figure 1-2: Basic electronic customs procedures

After identifying the product code and origin, the customs declarant needs todetermine the relevant policies regarding the exported/imported goods In cases where thegoods fall under specialized management, procedures for registering inspections andobtaining permits must be followed.

Registration for specialized inspections and permits can be completed through thenational one-stop-shop mechanism at https://vnsw.gov.vn/ or at the designated authority

as per regulations

Prepare the necessary documentation for customs clearance:

The specific customs documentation required varies depending on the type ofimport/export, as stipulated in Section 5, Article 1 of Circular No 39/2018/TT-BTC,which amends and supplements certain provisions of Circular No 38/2015/TT-BTC

Obtain the goods management number:

For export or import declarations without a bill of lading, obtain the goodsmanagement number through various methods such as logging into the ECUS5 software(for applicable ports) or accessing the public service portal at https://pus.customs.gov.vn.For imported goods with a bill of lading, declare the bill of lading number with theimporter's name on the electronic import declaration as instructed in Annex II, Circular

No 38/2015/TT-BTC, as amended and supplemented by Annex I of Circular No.39/2018/TT-BTC issued by the Ministry of Finance

For enterprises without a digital signature, it is necessary to prepare one and registerwith the Customs authority Enterprises conducting import/export procedures for the firsttime need to register to use the system and install the VNACCS/VCIS customsdeclaration software Enterprises may delegate customs procedures to an authorized agentfor export processes

Customs procedure:

Step 1: Customs Declaration

Through the VNACC/VCIS customs declaration software, the enterprise submitsimport and export declaration information and submits the customs declaration along withthe required documents through the VNACCS system

Step 2: Declaration Processing

At this step, the customs declarant receives feedback from the VNACCS/VCISsystem regarding the sorting results, which may fall into one of the following lanes:

Green lane: Acceptance of customs declaration information In this case, theenterprise is granted customs clearance based on the customs declaration information andproceeds to step 3

Yellow lane: Check relevant documents in customs records sent by customsdeclarants through the VNACCS/VCIS system; Submitting documents according toregulations must submit originals or check relevant documents on the National SingleWindow Information Portal

In case the documents are suitable, move on to step 3 In case the documents are notsuitable or there are doubts, the Customs authority decides to transfer the declaration tored lane and carry out physical inspection of the goods

Red lane: Physical Goods Inspection

In this case, the customs declarant will use the VNACCS/VCIS system to receivethe notice, form and level of physical inspection of goods notified by the customsauthority through the system and register the location and time Physical inspection ofgoods with customs authorities Customs declarants are responsible for preparingconditions for physical inspection of goods;

Step 3: Tax and Fee Payment

For cases where the tax amount is zero, the system automatically issues customsclearance and generates the "Customs Clearance Decision" for the declarant

For cases where the tax amount is not zero:

If taxes are declared within the limit or under a guarantee (general or specific), thesystem checks the declared criteria If the declared limit or guarantee amount is equal to

or greater than the tax amount, the system issues a "document stating the tax amount to becollected" and the "Customs Clearance Decision" If the declared limit or guaranteeamount is less than the tax amount, an error is reported

For immediate tax declaration (via transfer, electronic payment 24/7), the systemissues a "document stating the tax amount to be collected" Once the declarant completes

the tax, fee, and charge payments, and the VNACCS system receives the information, thesystem issues the "Customs Clearance Decision".

Step 4: Customs Clearance / Release / Storage

The customs declarant prints the container and goods lists on the customs electronicportal or their own declaration system and provides them to the customs department forclearance or release or storage return

In case of changes to the container or goods list after customs declaration, thecustoms declarant prints or requests printing from the customs department

For release or storage return, enterprises must complete the required documents andsubmit them to the customs authority to finalize customs clearance

Post-clearance: Conduct post-clearance inspections according to the customsauthority's plan.[ CITATION Vie \l 1033 ]

CHAPTER 2: OVERVIEW OF DANANG SEAPRODUCTS

CORPORATION

2.1 General introduction to Danang Seaproducts Corporation

Danang Seaproducts Corporation was established in 1977 During the process offormation and development, Danang Seaproducts Corporation has built a complete,modern and convenient infrastructure system closed for processing and exporting seafoodproducts to foreign markets Factory system with a processing capacity of over 30tons/day The standard cold storage system has a storage capacity of up to 3,000 tons.With facilities and a team of more than 200 workers proficient in processing techniques,Danang Seaproducts Corporation is a processing partner of many large domestic seafoodexport companies and the company also exports itself products to the markets of Japan,Korea, China and ASEAN countries[ CITATION Dan \l 1033 ]

Vision: Becoming a familiar friend in every meal of units and families

Core value: Danang Seaproducts Corporation was born with the mission of bringing themost quintessential products from the sea to your kitchen!

Danafish is the name chosen by the Board of Directors of Danang SeaproductsCorporation to use as a brand for the company's products

Dana: Stands for Da Nang - Vietnam's livable city and also one of the places with themost beautiful beaches on the planet with abundant and abundant aquaticresources[ CITATION Dan \l 1033 ]

Fish: refers to the company's seafood products in the most easily relatable way[ CITATION Dan \l 1033 ]

2.1.1 General information about the company

Full name: Da Nang Seafood Joint Stock Company

English name: Danang Seaproducts Corporation

Abbreviated name: SEAFISH CORP

Head office: Lot C1-5; Lot C1-6, Van Don Street, Tho Quang Ward, Son Tra District, DaNang City, Vietnam

Phone: (0236) 3831493

Fax: (0236) 3831493

Website: https://danafish.com/

Business field: Processing and preserving aquatic products and aquatic products

2.1.2 History of formation and development

Danang Seaproducts Corporation, formerly known as the Stateowned Quang Nam

-Da Nang Fisheries Exploitation Enterprise, was established in December 1977 When firstestablished, the company had 25 fishing boats and 172 employees with the main task offocusing on exploiting aquatic products according to the State's plan[ CITATION Dan \l

1033 ]

During the years 1978-1985, the company operated very effectively, alwayscompleting assigned plans During this period, the enterprise's operations were completelysubsidized by the State for materials, capital and product consumption Therefore, thereare a few difficulties in production and business, but the actual efficiency is at aloss[ CITATION Dan \l 1033 ]

Figures 2-3: Logo of Danang Seaproducts Corporation [ CITATION Dan \l

1033 ]

However, in the years 1986-1990, when switching to a new mechanism that did notrequire state support, the company had to take care of everything itself, thus encounteringmany difficulties (difficulties in managing and operating production and business)difficulties due to lack of capital, lack of materials, difficulties in selling products)[ CITATION Dan \l 1033 ].

From 1991-1997, in the process of learning about seafood exploitation with access

to modern means and an increasingly expanding market, the company reformed andmoved from seafood exploitation to processing and trading seafood exports[ CITATIONDan \l 1033 ]

In 1986, the company was a type of enterprise preparing for dissolution according toDecision 315/HDBT Entering the transition period to a new management mechanism(1986 - 1990), the company proactively proposed and received permission from the State

to apply a new management mechanism to make the organizational structure morecompact and operational The company's operations are guaranteed to be effective Tosurvive, the company decided to change the direction of production and business byinvesting heavily in fishery services with capital mobilized from the company'semployees, closing the production and business chain from the exploitation stage toprocessing seafood products With the above direction, the company has operated in manyfields: Seafood exploitation, building and repairing ships, supplying materials andequipment for fisheries, aquaculture, purchasing and processing seafood products of allkinds The above shift has helped the company stabilize and develop, performing well thebusiness's tasks, preserving and developing capital, increasing income and livingstandards of workers to ensure payments to the State[ CITATION Dan \l 1033 ]

After nearly 15 years of operation, in 1992, implementing Decree 388/HDBT onrestructuring enterprises, the enterprise changed its name to QN-DN FisheriesExploitation and Services Company according to Decision 2969/QDUB

In 1997, the company was selected by the city as an equitization point and thecompany changed its name to Da Nang Fisheries Exploitation and Services Joint Stockcompany according to Decision No 5011/QD - UB dated December 17, 1997 Thecompany officially went into operation in early 1998 according to business registration

certificate No 059534 dated January 7, 1998 issued by the Department of Planning andInvestment of Da Nang city.

The company has operated with over 50% capital of the employees in the lendingcompany By early 2000, the company changed its name to Da Nang Seafood Joint StockCompany According to the company's development requirements based on availableproduction workshops, the company has established 2 affiliated enterprises: Nai HungFisheries Enterprise and Hoa Cuong Fisheries Enterprise After two years of operation,the company has achieved good results, production has developed and production scalehas been increasingly expanded[ CITATION Dan \l 1033 ]

In 2004, implementing the urban beautification policy of Da Nang city, the companydecided to merge the two factories to strengthen management and improve businessefficiency

Up to now, the company has gone through nearly 50 years of establishment anddevelopment along with the ups and downs and innovations of the economy Thanks tothe equitization policy, which has opened a new era for the company, the clearest proof ofthis positive change is the continuous growth in business performance in recent yearsdespite having to overcome the pandemic Covid 19[ CITATION Dan \l 1033 ]

2.1.3 Business areas of the company

Danang Seaproducts Corporation has many industries and services, of which themost developed and most professional include the main services below:

Processing frozen seafood for export: mainly fish (fish, tilapia, croaker, ), squid(cuttlefish fillets, squid ) to export large quantities to demanding markets such asTaiwan, Japan, China and the US

Producing and trading processed products from seafood: in addition to export, thecompany also does business in the domestic market through markets, supermarkets andeateries and restaurants in the city with local businesses Preliminary and pre-processedseafood products are quite convenient for use in daily meals

Cold storage service business: the company invests heavily in a cold storage systemwith large capacity to satisfy the needs of freezing and cold preservation of aquatic andagricultural products