The processing activities in recent years have brought many benefits to businesses and workers in Vietnam. Through processing contracts, businesses have gradually improved their management capabilities and achieved operational efficiency. Simultaneously, a large number of jobs have been created for the Vietnamese workforce, especially for low-skilled workers, helping to reduce unemployment issues and enhance labor skills and expertise. Additionally, Vietnam's participation in WTO's favorable trade agreements contributes to facilitating and creating favorable conditions for transportation, customs clearance, import-export procedures, modernizing customs management, promoting positive economic transformation, and attracting foreign investment. With the advantages of political stability, abundant labor resources, and low labor costs, Vietnam has become a sought-after destination for many multinational companies seeking outsourcing opportunities. In addition to continuous reforms and optimization of customs procedures to facilitate Vietnam's integration process and meet the requirements of international economic organizations, customs inspection and supervision of processed goods ensure fairness, safety, and efficiency in the production and export of goods, while providing favorable conditions for businesses in production and trade activities. Due to the reasons mentioned above, I have decided to choose the topic “Customs Inspection and Supervision of Processed Goods at Investment and Processing Goods Management Customs Sub-department – Da Nang Customs Department” to complete my graduation report. This will provide me with a deeper understanding of the management of processed goods in general and the inspection and supervision of processed goods in particular within the area of Da Nang City.
THEORETICAL ISSUES OF CUSTOMS INSPECTION AND
General overview of processed goods
1.1.1 Concept and role of processed goods
Processing is the act of expending effort to create a new product or perform certain stages in the production process to add value to the initial product
According to the Vietnamese Commercial Law of 2005, amended in 2019, Article 178: "Processing in commerce is a business activity involving manufacturing and trading In this activity, the contracting party provides a portion or the entirety of raw materials, machinery, and equipment, or even experts and technical documents to the processing party to carry out all or part of the production process to create products and receive remuneration in return"
Therefore, processing encompasses activities such as manufacturing,processing, assembly, and packaging, with the aim of transforming a portion or all the raw materials, auxiliary materials, or semi-finished products into products according to the requirements of the contracting party and receiving remuneration in return The contracting party can be a legal entity or individual, including foreign entities(companies in export processing zones as well), while the processing party refers toVietnamese enterprises (including foreign-invested enterprises, enterprises in concentrated industrial zones, high-tech zones, etc.) The contracting party provides machinery, equipment, materials, or semi-finished products based on predefined models and specifications The domestic processing party organizes the production process according to the customer's requirements, and all products produced are delivered back to the contracting party.
Processed goods have the following two fundamental characteristics:
Firstly, there is a legal aspect in commercial transactions The legal basis for processing activities is the processing contract The processing contract must comply with the provisions stipulated in the Commercial Law.
Secondly, in the processing relationship, all products produced by the processing party will be delivered to the contracting party or to a third party designated by the contracting party in exchange for a remuneration called processing fees.
In practice, there are three main forms of processing:
First, Material-in, Product-out: In this form, the contracting party provides the processing party with raw materials and possibly machinery and equipment for the processing process The processing party carries out the processing according to the requirements, delivers the finished products, and receives processing fees There is no transfer of ownership of the materials during the processing.
Second, Buy outright and resell : This form involves the contracting party selling the raw materials to the processing party, and after a specified production period, the processing party sells back the entire finished products and receives processing fees In this case, the ownership of the materials transfers from the contracting party to the processing party The transfer of ownership of the materials increases the active involvement of the processing party throughout the production process.
Third, Mixed form: This is a form that the contracting party providing the main materials, product samples, and technical specifications The processing party supplies the auxiliary materials for production and manufacturing the finished products In this form, the processing party can have full control over the production process,
Legal basis of customs inspection, and supervision for processed goods
International legal frameworks refer to agreements, conventions, regulations, or treaties that participating parties collectively establish and commit to achieve certain objectives In the field of customs, there are international conventions, protocols, and agreements related to customs inspection and supervision activities These international conventions serve as the basis for customs inspection and supervision activities, including: The convention of Customs Cooperation Council (CCC), now known as the World Customs Organization (WCO); The Kyoto Convention of 1973 and its amendments in 1999, which aim to simplify and harmonize customs procedures; The Harmonized System (HS) Convention of 1988, which provides for the classification of goods; The General Agreement on Tariffs and Trade (GATT); The Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS), which deals with the enforcement of intellectual property rights at borders; The ASEAN Customs Agreement of 1997, etc.
Among these conventions, the Kyoto Convention of 1973 and its amendments in 1999 play an important role in simplifying and harmonizing customs procedures.The amended Kyoto Convention in 1999 is a significant legal document in CustomsAffairs that aims to simplify and harmonize customs procedures to facilitate international trade and other international exchanges It meets the requirements of international trade and customs compliance management, providing operational standards The convention can be seen as the backbone of Customs Affairs activities,introducing advanced technical management methods such as risk management, post- clearance audit, pre-arrival processing, and modern customs supervision Therefore,the conventions serve as important legal tools as they cover most of the activities inCustoms Affairs Other conventions and agreements also outline inspection and supervision methods for containers, vessels, and other means of transportation to ensure compliance with laws while facilitating trade and exchange activities.
When Vietnam joined the World Trade Organization (WTO), it had to fulfill various commitments set forth by the WTO, including issues related to customs In particular, the establishment of customs procedures must comply with the standards specified in the amended Kyoto Convention Therefore, Vietnam had to develop an appropriate legal framework to incorporate the content of the laws and international commitments that we participate in.
General issues regarding customs inspection and supervision of processed goods
Law on Foreign Trade Management (Article 51, Article 52);
Law on Import-Export Duties 2016 (Paragraph 6 of Article 16)
Decree No 08/2015/ND-CP (amended and supplemented by Decree
59/2018/ND-CP) (from Article 36 to Article 41)
Decree 69/2018/ND-CP guiding the Law on Foreign Trade Management (from Article 38 to Article 49)
Decree 134/2016/ND-CP (amended and supplemented by Decree 18/2021/ND-
Circular 38/2015/TT-BTC (amended and supplemented by Circular
39/2018/TT-BTC) (from Article 54 to Article 69a)
1.3 General issues regarding customs inspection and supervision of processed goods
1.3.1 Customs inspection for processed goods
Customs inspection is a duty that is carried out throughout a process, including before customs clearance, during customs clearance and after customs clearance.
According to the Kyoto Convention, "Customs inspection means the measures taken by customs to ensure compliance with customs laws."
According to Vietnamese Customs Law, "Customs inspection is the examination of customs documents (including declarations and related documents) and the inspection of the actual goods and means of transport carried out by customs authorities."
In summary, in a broad sense, customs inspection for processed goods refers to the application of operational measures by customs officials to verify the accuracy and integrity of the declaration made by the consignee regarding the goods, ensuring compliance with customs laws The main contents of customs inspection include verifying the legal status of the declarant; examining the completeness, validity, and legality of the customs documents; verifying the consistency between the actual goods and the accompanying documents; and checking the compliance with legal provisions by the consignee In a narrow sense, customs inspection for processed goods refers to the examination of customs documents related to processed goods and the inspection of the actual processed goods. b Roles
Customs inspection is a fundamental and crucial task of the customs authority. The role of customs inspection for processed goods is manifested in the following basic aspects:
First, customs inspection helps the Customs authority fulfill its state management function in customs It ensures that customs regulations and laws are enforced effectively.
Second, by assessing and verifying the accuracy and honesty of the customs declaration made by the consignee, customs inspection enables the customs authority to detect acts of commercial fraud, tax evasion, and smuggling This, in turn, supports and facilitates the effective implementation of anti-smuggling and illicit cross-border transportation investigations by the customs authority. c Object
The following entities are subject to customs inspection for processed goods:
First, manufacturing and processing establishments: These include organizations and individuals that import raw materials and supplies for the purpose of manufacturing and processing goods for export Customs inspection assesses their manufacturing and processing capabilities.
Second, imported raw materials and supplies used in the manufacturing and processing of goods for export: Customs inspection verifies the quantity of inventory held by manufacturing and processing entities for export purposes.
Third, settlement, management, and utilization of imported raw materials and supplies for the production and processing of goods for export: Customs inspection ensures compliance with regulations regarding the accounting, management, and utilization of raw materials and supplies by organizations and individuals involved in the importation of such goods.
The implementation of customs inspection for processed goods adheres to the fundamental principles of customs inspection Specifically, there are four principles as follows:
Principle 1: Customs inspection is conducted before, during, and after customs clearance
Customs inspection is not limited to separate operational measures but is a continuous process This process is closely linked to the analysis, collection, and processing of information, as well as the customs procedures, both before and after the goods have been cleared.
Pre-clearance inspection is primarily carried out through information analysis and evaluating the compliance of the consignee with customs laws, as well as assessing the level of risk regarding customs law violations.
In-clearance inspection refers to inspections conducted during the customs clearance process This may involve examining customs documents or both customs documents and the actual goods.
Post-clearance inspection (also known as audit-based inspection) is conducted after the goods have been cleared or released Post-clearance inspection may be conducted at the customs office or at the business premises based on the use of accounting and auditing tools Post-clearance inspection is an important link in customs inspection to ensure state management of customs and facilitate smooth export and import activities.
The revised Kyoto Convention sets a standard that customs inspection systems should include audit-based inspections.
Principle 2: Customs inspection must be based on the principle of risk management
Risk management is one of the modern customs management methods. Therefore, the decision on the form and level of customs inspection should be based on the application of risk management.
Principle 3: The form and level of customs inspection are determined by authorized customs officials
Customs inspection falls within the authority of the customs administration To exercise this authority, customs administrations employ various forms of inspection, such as document inspections, physical inspections of goods, audit-based inspections, etc.
Each form of inspection has different levels, for example, document inspections can be preliminary or detailed inspections, physical inspections can be waived, comprehensive, or conducted based on a certain percentage Audit-based inspections can be conducted at the customs office or at the business premises The specific forms and levels of inspection are determined by an administrative decision of the customs administration, usually made by the head of the customs administration responsible for processing the customs documents.
Principle 4: Customs inspection aims to ensure the effectiveness of state customs management and facilitate export activities
The effectiveness of state customs management refers to the proper implementation and functional results of customs administration in achieving stated objectives and tasks The effectiveness of state customs management is the achieved outcome of customs administration in relation to the cost of resources and the relationship between economic and social effectiveness.
The purpose of customs inspection is not only to ensure the effectiveness of state customs management but also to facilitate the activities of the managed entity, which includes businesses involved in processing operations.
Customs inspection is subject to the authority of the customs administration. The form and level of actual goods inspection for imported goods must be conducted based on the actual inspection, and the head of the customs sub-department where the customs documents are received and processed relies on the results of data processing through the electronic customs data processing system and relevant information about the goods to decide on the form and level of actual goods inspection.
CURRENT STATUS OF CUSTOMS INSPECTION AND
Achievement
(Extracted and compiled from the report summarizing the implementation of work during the period of 2021-2023)
According to statistics from the Sub-Department, during the period of 2021-
2023, the imported goods included leather, fabric, textile raw materials, seafood ingredients, wax, alcohol, medicine, etc The main exported goods were lighters,textile products, gloves, seafood, automotive raw materials, electronic products of various manufacturing and processing companies.
The import and export turnover of processed goods at the Sub-department in
2021 - 2023 period is presented in the table below:
Table 2.1 Import-Export Turnover at Sub-department
Import turnover Export turnover Total turnover (USD)
The import turnover at the Sub-department reached over $289 million in 2021, accounting for 36.14% of the total import-export turnover In 2022, the value increased to over $294 million, representing a 1.56% growth compared to 2021, but the proportion decreased to 34% of the total import-export turnover In 2023, this indicator decreased to $274 million, a 6.67% decrease compared to
2022, and the proportion further dropped to 33.32% of the total import-export turnover The Covid-19 pandemic severely impacted the economy throughout 2021, leading to a significant decline By
2022, after implementing appropriate social distancing measures and effectively controlling the disease, the economy stabilized,resulting in noticeable improvements in production and processing activities As a result, the value of imported raw materials increased(while the proportion decreased due to the significant recovery of export activities) However, in 2023, the global economy faced numerous difficulties and challenges Although the domestic difficulties, with some growth drivers declining Currency, financial, and real estate markets posed significant risks, while production, business activities, and the labor market faced numerous challenges. Therefore, the proportion of imported processing materials decreased to 33.32%.
The export turnover at the Sub-department also experienced fluctuations during the period of 2021-2023 In 2021, the export turnover reached nearly $512 million, accounting for 63.86% of the total import-export turnover In 2022, the value surged to over $571 million, representing an 11.56% increase compared to 2021 and accounting for 66% of the total import-export turnover However, in
2023, there was a decline with the figure reaching over $549 million, a 3.81% decrease compared to 2022, but the proportion increased to 66.68% of the total import-export turnover In 2022, with the recovery and efforts of businesses to boost production and export of backlogged orders, the export turnover increased significantly compared to 2021 Additionally, thanks to strong measures to prevent the pandemic and ensure socio-economic development, Vietnam's trade activities continued to maintain momentum amidst the disruptions in global trade The growth momentum was ensured, and the driving force of the economy remained vibrant While other countries in the region experienced a decline in export levels compared to previous years, Vietnam in general, and the Sub- department specifically, achieved notable export growth in a challenging year In 2023, facing the turmoil of the global economy, the export value experienced a slight decline but still reached an impressive figure, leading the export proportion during the 2021-
Overall, a noteworthy point is that the import turnover value has consistently been lower than the export turnover.
Table 2.2 Number of electonic declarations at the Sub-department
Number of declarations at the Sub-department
Green channel Yellow channel Red channel
The number of electronic customs declarations for import and export handled by the Sub-department increased steadily during the period of 2021-2023 In 2021, the Sub-department processed 24,479 declarations In 2022, the number of processed declarations rose to 24,721 (a 0.99% increase compared to 2021), and in 2023, it further increased to 26,225 declarations (a 6.08% increase compared to 2022).
Regarding the number of import declarations, in 2021, the Sub-department processed 13,709 import declarations In 2022, the number decreased to 13,510 declarations (a 1.45% decrease compared to 2021) However, in 2023, the number increased to 13,948 declarations (accounting for 53.19% of the total declarations) In
2022, although the number of declarations decreased, the import value remained high, indicating that the cleared shipments had higher value Conversely, in 2023, the number of declarations increased, but the import value slightly decreased, suggesting that the cleared shipments had lower value In general, import declarations accounted for more than half of the total number of electronic declarations.
The number of export declarations also increased over the years In 2021, theSub-department processed 10,770 export declarations, accounting for 44% of the total number of declarations In 2022, there was a slight increase to 11,211 declarations (a4.09% increase, accounting for 45.35% of the total number of declarations) In 2023,the Sub-department processed a significant increase to 12,277 export declarations (a9.5% increase compared to 2022, accounting for 46.81% of the total number of declarations) This is a positive achievement resulting from the efforts of processing businesses in the Da Nang city area, as well as import-export businesses nationwide, during a period of pandemic and economic downturn.
2.2.1.3 Settlement report, production facility inspection
Table 2.3 Settlement report, production facility inspection at Sub-department
Number of Businesses conduct Customs Procedures
Number of Production Facilities Inspected
In 2021, due to the complex Covid-19 pandemic situation globally, including in
Da Nang city, the inspection of production and processing facilities faced significant challenges As a result, the number of businesses undergoing customs procedures decreased considerably However, in 2022 and 2023, as more businesses resumed their operations in the processing market, the number of businesses undergoing customs procedures increased, reaching over 200 enterprises The Customs authorities conducted inspections of more than 10 processing facilities to ensure that these enterprises had the capacity to meet production and processing requirements The number of settlement documents submitted remained stable over the years, specifically
44 files in 2021, and 46 files in 2022 and 2023.
Table 2.4 Post-clearance inspection at Sub-department
Degree of achieving the target (%) 110% 120% 122%
Post-clearance inspection is an important duty carried out by the Customs authorities to detect and address trade fraud, ensure compliance with laws, protect consumers, safeguard national security, and manage risks in import and export activities During the period of 2021-2023, the Sub-department performed excellently in post-clearance inspections.
Within the Sub-department, post-clearance inspections were conducted only at the headquarters of the Sub-department, through a review of the generated transactions The Customs officers conducted a review of the cleared declarations, refund files, and decisions on tax exemption or imposition to inspect for adherence to procedures and avoid any omissions The inspection of green channel declarations was regularly reviewed, focusing on enterprises engaged in manufacturing, processing, and export activities, ensuring timely record-keeping and reporting.
As a result, during the period of 2021-2023, the post-clearance inspection work of the Sub-department consistently exceeded its targets The number of inspections conducted each year was 13, 18, and 22, respectively Particularly in 2023, the Sub- department carried out 22 inspections, achieving 122% of the target This is a highly commendable achievement for the Sub-department.
Advantages
In customs inspection and supervision work, the Customs officers emphasizes a strong sense of responsibility and dedication to the job, exemplifying a professional work attitude They adhere to rules, regulations, and codes of conduct, actively engage in research and learning to enhance their expertise, and enthusiastically participate in initiatives organized by the unit and other organizations.
The Sub-department has effectively mobilized collective intelligence and consistently received close and timely leadership from the Party Committee, LocalAuthorities, and affiliated organizations They have also benefited from the timely guidance of the Customs Department's leadership, the supportive coordination of subordinate units within the Department, and effective collaboration with other agencies in the area.
Difficulties
Besides the advantages, this work also faces some difficulties In customs clearance procedures, there is a diverse range of declaration forms at the Sub- department, and declarations are assigned to non-specialized officers based on the form type This requires officers to read and understand all types of customs declaration forms, including policies, procedures, and taxes.
The officers responsible for clearance procedures not only handle registration for green and red channel declarations but also carry out procedures for online service applications and perform various other tasks The dissemination of information and guidance to businesses requires a significant amount of time as businesses often seek clarification on procedures The Sub-department also regularly reminds businesses to provide feedback on their satisfaction levels.
In 2021, the complex Covid-19 pandemic severely disrupted economic activities By 2022, although the Covid-19 situation was generally under control, it still had a significant impact on economic, social, and import-export activities as well as immigration activities within the city This also posed many challenges for the customs inspection and supervision activities of the Sub-department.
SOLUTIONS TO COMPLETE INSPECTION AND
Directions for completing customs inspection and supervision of processed goods
The general objectives of the national customs authority, specifically the Investment and Processing Goods Management Sub-department - Da Nang Customs Department, are as follows:
First, continuously implement the reform and modernization plans of the General Department of Customs and the Da Nang Customs Department This includes the implementation of the Vietnam Automated Cargo and Port Consolidated System (VNACCS), the Intelligence Information Database System (VCIS), and the cargo information reception and processing system.
Second, strengthen the dissemination of laws and regulations, provide information support to declarants and taxpayers through various means such as public posting of documents, dialogue with businesses, and addressing inquiries via phone, in-person visits to customs offices, or written responses.
Third, maintain effective leadership in customs supervision and management, promptly resolve issues, expedite customs clearance for import and export goods, intensify law dissemination and awareness, and provide support to declarants and taxpayers to facilitate investment activities in the region.
Fourth, enhance post-clearance inspections at customs offices following the provisions of Decision 575/QD-TCHQ dated March 21, 2019, with a focus on businesses and shipments that have not undergone inspections or exhibit high-risk signs The aim is to detect and prevent tax evasion and fraud.
Fifth, strengthen the fight against smuggling, commercial fraud, drugs, and conduct inspections and control in key areas and sensitive goods, improve the quality of customs information collection and processing, and risk management.
Sixth, continue the strict implementation of customer service commitments as stated in the Declaration of Serving Customers.
Seventh, strengthen measures to build a clean and strong customs force, enforce discipline and regulations in fulfilling duties, firmly prevent violations of laws, and promote competitive movements while implementing democratic principles at the grassroots level.
Eighth, implement anti-corruption and practice thrift and combat waste.
Nineth, cctively respond and participate in competitive movements initiated by organizations and associations with the highest spirit and sense of responsibility.
The specific objectives of the Investment and Processing Goods Management Sub-department - Da Nang Customs Department in the near future are as follows:
First, implement resolute measures to achieve and surpass the targets for revenue collection, striving to exceed the annual country budget revenue targets in
2024 Enhance efforts to recover outstanding debts, ensure accurate and timely revenue collection, and prevent the accumulation of new debts.
Second, collect enterprise information in 2023 to facilitate the reception of settlement reports for enterprises engaged in processing activities Plan and conduct audits of settlement reports at the premises of enterprises in 2024.
Some solutions to improve customs inspection and supervision for processed
3.2.1 Solutions for human resources, working environment and conditions a Solutions for the human resources system
Throughout history, human resources have always been considered a crucial factor in solving various tasks Therefore, to improve the inspection and supervision of processing goods at the Customs Department, it is necessary to focus on enhancing the capacity of the human resources system Here are some important solutions to improve the quality of the human resources system at the department:
First, strengthen training and education in culture, political ideology, and moral qualities Foster professional ethics and a sense of professional responsibility among the Customs Department's officials and staff This is particularly important as the Customs Department, and customs in general, serve as the economic gatekeepers of the country Training should be specialized according to specific job functions, particularly related to inspection and supervision of processing goods, as well as other customs-related tasks Provide comprehensive theoretical and practical knowledge to ensure that officers have the ability to assess and analyze the enforcement capabilities of customs policies and propose effective management measures for processing goods and related businesses.
Second, assign personnel to participate in specialized training and professional development courses organized by the General Department of Customs and its subordinate units Sending officers to these training programs will help enhance the professional skills of Customs Department officials and the entire staff It will keep them updated on the latest legal documents promptly This will enable officers to handle their tasks more efficiently and provide valuable input for improving current work processes at the Customs Department This, in turn, will enhance the effectiveness of the department's operations and increase the satisfaction level of businesses going through customs procedures.
Third, develop proposals and plans to implement the guidelines provided by the
Da Nang Customs Department and the General Department of Customs.
Fourth, clearly define the responsibilities of each officer in their respective positions Evaluate officers primarily based on their work results, the quantity and quality of assigned tasks, and emphasize political qualities and ethical standards This approach will help specialize the activities at the Customs Department, optimize the time required to process tasks, and create favorable conditions for businesses going through customs procedures. b Solutions for improving the working environment and condition
In addition to improving the quality of human resources, solutions to improve the working environment, infrastructure, and modern technical equipment also contribute to enhancing the effectiveness of customs inspection and supervision Here are some possible solutions:
First, focus on improving the quality of the network to enhance operational efficiency at the Customs Department Upgrade and update the equipment of the system, such as network connectivity, servers, workstations, to address issues of malfunctions, congestion, and slow performance Upgrade existing software and address any errors or missing functionalities Ensure smoothness, access control, and network security for all units within the department.
Second, repair or replace the communication system to ensure smooth command and control operations This will enable efficient and timely information exchange among different units within the Customs Department regarding violators and receive prompt instructions for task processing.
Third, upgrade and improve the risk management software for processing goods Ensure that the risk management system is regularly updated with complete and timely information for accurate analysis and evaluation of the actual situation.
Fourth, create a friendly working environment among the Customs Department's officials and between the Customs Department and individuals involved in customs procedures Emphasize administrative procedure reforms and focus on maximizing convenience for businesses while ensuring effective state customs management.
Fifth, develop support plans for enterprises in import-export activities, such as organizing dialogue seminars and addressing concerns and obstacles between the Customs Department and businesses.
3.2.2 Solutions for customs inspection and supervision process
The current customs inspection and supervision process mainly outlines the administrative tasks to be performed without delving into specific operational involve complex operations spanning various business sectors, some customs officers may face difficulties, especially those who are new and lack experience To address the existing issues in the process, customs officers need to have a learning mindset and refer to procedures in other countries with similar economic conditions to apply them to similar situations Additionally, customs officers and declarants must clearly define their responsibilities, obligations, and rights when participating in customs operations according to customs regulations First and foremost, customs officers must strictly adhere to the customs procedures for import and export goods.
Along with improving the customs inspection and supervision process, other business management programs in the customs clearance stage also need to be strengthened and improved to create a coherent and unified customs operation process. This process should ensure the effectiveness of state customs management while providing favorable conditions for businesses participating in customs procedures.
Currently, there is a system of laws, decrees, and guiding documents for customs inspection and supervision of processed goods, including the Customs Law
2014 (Articles 59, 60) and the guiding documents for the Customs Law 2014, such asDecree No 08/2015/ND-CP (amended and supplemented by Decree 59/2018/ND-CP)(from Article 36 to Article 41); the Law on Foreign Trade Management (Articles 51,52); Decree 69/2018/ND-CP guiding the Law on Foreign Trade Management (fromArticle 38 to Article 49); the Law on Import-Export Duties 2016 (Paragraph 6, Article16); Decree 134/2016/ND-CP (amended and supplemented by Decree 18/2021/ND-CP) (Articles 10, 11); Circular 38/2015/TT-BTC (amended and supplemented byCircular 39/2018/TT-BTC) (from Article 54 to 69a) However, in practice, eachCustoms Sub-department needs to refine the procedures based on these documents to suit the operational characteristics and scope of each sub-department This will help address existing issues and overcome obstacles in the customs inspection and supervision process Consequently, customs authorities can effectively exercise state customs management over processed goods in accordance with the laws and regulations.
To improve the inspection and supervision process, the Sub-department should reduce direct inspections and supervision by the General Customs Department and instead enhance the application of modern management methods This can be achieved by building a team of professional customs officers to handle unexpected difficult situations The Sub-department should establish procedural guidelines for processed goods using scanning machines, attaching chips to suspicious shipments, and deploying automatic security systems (cameras) for convenient cargo monitoring. Specifically, cargo scanning should be carried out quickly and efficiently without causing obstacles for businesses, ensuring the integrity of the goods after scanning. The scanning process should classify the risk level for each group of goods to facilitate risk management In case of suspicion, the goods should be continuously monitored by cameras during transportation until the completion of procedures This approach helps customs officers reduce work pressure, focus maximum time on handling suspicious cases and violations, and shorten the customs clearance time.
Regarding the authority of the General Customs Department in customs inspection, specifically for processed goods, the Head of the Customs Sub-department implements inspection decisions based on the channel classify notifications from the system and conducts random inspections to assess compliance with customs declaration by the declarants, as regulated and guided by the Director of the General Customs Department However, this may pose some disadvantages in cases where the Head of the Sub-department is absent from the office due to special reasons, resulting in delays and insufficient supervision during inspections Therefore, it is necessary to develop legal documents that specify the authority of the General Customs Department in detail for each customs officer to enhance the effectiveness of customs inspection and supervision.
3.2.3 Solutions for information technology equipment and applications
Information technology is an extremely effective tool in customs inspection and supervision Therefore, the Customs Sub-department needs to focus on developing information technology Specifically:
First, repair or purchase new communication systems to ensure smooth command and control, upgrade and enhance software for risk management of processed goods, research solutions in coordination with relevant units First step is establishing information exchange relationships between the General Customs Department, the Customs Department, and the Customs Sub-departments Next, with the information technology division of the General Customs Department, the Data and Information Technology Center of the Da Nang Customs Department, initiate the implementation of a project to build a network for collecting, synthesizing, analyzing, and processing information.