impact of implementation of e customs procedure on customs authorities and export import enterprises

UPPSALA L \ r UNIVERSITY OF ECONOMICS AM) 84 MASTER PROGRAMME OF PUBLIC M r s s VM H * ^ ,dt Nguyen Truong Son & Bui Tuan Phong MPPM-Uppsala - Intake IMPACT OF IMPLEMENTATION OF ECUSTOMS PROCEDURE ON CUSTOMS AUTHORITIES AND EXPORT-IMPORT ENTERPRISES Supervisor: Local Supervisor: Prof Sven Jungerhem Dr Huyen Nguyen Thi Ngoc Hanoi, May 2011 ABSTRACT Title of the thesis: Impact of implementation of E-customs procedure on customs authorities and export-import enterprises Level: Final assignment for Master Program in Public Management Author: Son Nguyen Truong Phong Bui Tuan Supervisors: Uppsala supervisor: Prof Sven Jungerhem Local supervisor: Dr Huyen Nguyen Thi Ngoc Date when the thesis is presented: Tentative 17-19 May Objective: This essay offers the results from evaluation and analysis of the current status of the implementation of E-customs procedure; the positive aspects and shortcomings of the implementation of E-customs procedure in Vietnam, its impacts on customs authorities and import-export enterprises applying E-customs procedure Methodology: In this essay Two books: Handbook on impact evaluation - Quantitative methods and practices and Handbook on Planning, Monitoring and Evaluating for Development Results have been used to make theoretical framework for analyzing impact of implementation of E-customs This essay was based on books, documents, theory and models of electronic clearance of some countries, as well as data collected directly from the General Department of Customs, Provincial and Municipal Departments of Customs applying E-customs procedure; the magazines of Financial Informatics, Research on Customs, Customs Press and web pages Through two surveys of local customs departments implemented Ecustoms procedure and some import-export enterprises -i- Survey I: To interview people in local Customs Departments that have been implemented E-customs procedure + Survey II: To interview and give questions to 50 enterprises (of which 30 enterprises participating in E-customs procedure and 20 enterprises performing traditional customs procedure) From the theoretical model and actual data collected through methods of sociological survey, this essay has used statistical methods, methods of analysis, comparison and summarization in a systematic, scientific and practical way based on the data collected to for the study Results and Conclusion: This essay is almost mentioned E-Customs procedures, roles and basic characteristics of electronic Customs procedures; The impact of E-Customs procedures on Customs and import-export business; and also answered the research questions: What is E-Customs procedures? What is the role of ECustoms procedures? What is the advantages of E-Customs procedures compared to former Customs? What is the benefits of implementing the electronic Customs procedures to Customs and import-export business? What inadequacies, difficulties and problems for businesses and Customs is when implementing the electronic Custonis procedures? What is the positive and negative effects in the implementation of electronic Customs procedures for both Customs authorities and business? Limitations and proposed next steps The analysis of Impact of implementation of E-customs procedure on customs authorities and export-import enterprises also raised deeply research on E-Customs which deployed in Vietnam in the following project such as: "Which solutions is to implement effectively E-customs procedures in globalization?" Or '' The role of E-Customs procedures in Promoting commercial development " Contribution of the thesis: The study will play a part to give a suggestion to managers, leaders, government to think of management policy and some recommendations for enterprises to get the best benefits brought from E-customs procedure Key words: E-customs procedure, TABLE OF CONTENTS Table of contents Abbreviations I CHAPTER IN IRODUCTION AND OVERVIEW 1.1 Introduction 4 1.2 Purpose and quesions 1.3 Scientific and practical significance of the rcsearc 1.4 Method 1.5 Material g 11 1.6 Scope and demarcations ]1 CHAPTER 2: 11 lliORl-TlCAE FRAMI:W()RK OR ANALYZING IMPACT Ol- IMPLEMENTATION OF E-CUSTOMS PROCEDURE ON CUSTOMS AUniORITIl-S AND EXPORT-IMPORT ENTERPRISES 2.1 Definition and characteristics of I>cusloms procedure 2.1.1 Definition of E-customs procedure 2.1.2 CMiaracteristics of I-customs procedure 2.2 Process of l>customs procedure 2.2.1.1'or customs officers 2.2.2 I'or customs declarants 2.3 Conditions lor ihc implcmcnlation and dc\clopmcni of l cust(Mns procedure 2.3.1 lor Customs Department implementing I>customs procedure 2.3.2 1\M-Customs Suh-Deparlmeni implementing E-customs procedure 2.3.3 I'or Data and Information lechnolog) Centers under Customs Department implementing customs procedure 13 13 13 14 16 16 I7 \^) 1^) 19 20 2.3.4 lor enteiprises 21 he basic differences bciween traditional customs and E-customs 21 S EAistenccs inadequacies, problems in -customs procedures 22 Relating to program software, equipment, network 22 Ihc Customs Department 24 he Enterprises 26 4.Scr\iccs Suppliers 27 CHAPTER 3: ANALYSIS OF Till; Pll OT PROCESS OF E- CUSTOMS PROCl l)lMcustoms sofware EU: European Union l O B : I r e c on hoard I IS: I larmonize system IF: Information technology Kyoto: International Convention on the simplification and harmonization of customs procedures ( Kyoto convention) NAF'I A: Nortii American free radc Agreement VAN: Value added Network VPN: Vilual private Network WAN: Wide area Network WCO: World Customs Orgini/ation WTO: World frade Oreini/ation -/ - 3.1.2 Negative impact 34 3.2 E-customs implementation impacting export-import enterprises 35 3.2.1 Positive impact 35 3.2.2 Negative impact 37 CHAPTER 4: SURVEY RESULT ANALYSIS TO ENTERPRISES IN IIAI PHONG PARTICIPATING IN E-CUSTOMS PROCEDURE - SOME SOLUTIONS TO IMPROVEMENT OF E-CUSTOMS PROCEDURE 38 4.1 Comments on the implementation of E-customs procedure at E-Customs sub - Department 38 4.1.1 Comparison between l;-Customs procedures and traditional Customs procedures 38 4.1.2 The specific benefits achieved by enterprises when participating in 1> customs procedure 39 4.1.3 fhc difficulties enterprises face when participating in I customs procedure 39 4.1.4 he difficulties enterprises face at customs olT\cc when participating in E-customs procedure 40 4.1.5 The difficulties given to enterprises at Customs Departments when participating in I{-Cusloms procedure 41 4.2 What about 1-customs done in haiphong Sub-Department 41 4.3 What about l-CUS for declaration 41 4.3.1 i:\alualionofECUS 41 4.3.2 The difficullies thai enterprises face when using 1,CUS 42 4.4 CcMilenls need impro\ ing and amending 43 4.5 Confirmalii)n lo participate -customs procedure or not 44 4.6 Solutions to improxement of L-customs procedure 44 CHAPTERS: CONCLUTION LIST OF RESOURCES 50 LIS f 01 SOURCES 52 APPENDIX 1: Pl-OPIl IN VOLVED 55 APPI-NDIX 2: F:NTERPR1SES INTl R\'11 D I O R 11 lllR ()P1MUNS OF E-CLISTOMS PROCEDURE 56 APPI NDIX 3- OPINION SURVEY ORM ON E-CUSTOMS P R O C F D U R L : O I P R O V I N C I A L A N D M U N I C I P A L CUSTOMS Dl PARFMLNl ^"^ 4: OPINION SURVl^' FORM < ^\' - C U S l o M S PROCEDURl-OFNll-RPRlSI S 60 APPF:NDIX -3 ABBREVIATIONS •k "k it APEC: Asia-Pacific Economic Cooperation ASEAN: Association of Southeast Asia Nations C70: Certificate of origin CFR: Cost and Frieght CTF: Cost, Insurance and Frieght ECUS: l:-customs sofware F^U: European Union VOB: Free on hoard IS: I larmoni/e system If: Information technology Kyoto: International Convention on the simplification and harmonization of customs procedures ( Kyoto con\ention) NAl'FA: North American I-ree Trade Agreement VAN: Value added Network VPN: X'iuial private Nelwt)rk WAN: Wide area Network WCO: World Customs Orginization WIX): World frade Orginization CHAPTER I 1.Introduction 1.1 Introduction Nowadays, globalization and international economic integration is becoming one of the main trends of modem intemational economic relations Accordingly, the world trade has increased rapidl\: if the world's export rate reached 69.7 billion dollar onl\ in 1950 then it reached 5460 billion in 1999' and nearly 20 billion billion dollar at present Wiih the apprearance of global and local institutions such as WTO, EU, APFC, NAFTA, ASEAN llie world today is living in the strong process of globalization In such strong trend ol globalization and international economic integration as toda\, manv opportunities as well as great challenges ha\e been created for de\eloping countries in general and Vietnam in particular In this context, it is ncceassr\ for countries wishing to participate in intemational economic integration ellecti\el\ to make an entire and comprehensixe inno\alion ol' institutions, mode, management methods Since hecoming a member of the World frade Organization (W'FO), X'ietnam has had to make international commiuiients in which Vietnam Customs is one of the branches has lo implement internalit>nal commitments such as International Acts Vietnam has signed on the program of harmonization of customs procedure under K\olo Con\eniion, especiall} Protocol on facilitatii^n for ASEAN's goods" From the abo\e reasons Vietnam cuslt)ms is rec|uired also to enhance modernization reforms in its operation, lo i\o research and appi} modern management methods in order lo create fa\iM*ahle conditions for trade and promote the eountrx's economic de\ eK>pmcnt hut well to ensure management requirements and customs procedure ' Glolxili/ation and VictnanTs iiiicriiaiioiul economic inlcgration, P5 •^ \\"l () intCLzralion- opporlunilics challcni^cs and our actions Dale 07 I I 2000 p' "'l'\pcricnccs ofcuslonis mordcrni/ation on sonic counlncs C liapicr 2,3 However, implementation of E-customs procedure on the basis of limited lacihtics in the context of Vietnam's econom\ reached a new level compared to other developing countries in Southeast Asia: Vietnam's public administration in general and customs procedure in particular are in the period of reforming: the extent of application of information teehnolog\ in the management of customs operations is not ssnchronizcd: qualiticaiion o\' customs officials does not meet requirements: most o\' import and export enterprises of small and medium scale may not ha\e a sound perception about the ulilit} ol F-cusloms procedure, not make a necessar\ investment in machinery II equipment and software, networking l\)r transferring data to and receiving it from customs agenc\' I here have been some scientillc researches which refered to aspects of Vietnam customs o\' Vietnam in the process of international economic integration, reform and customs moderni/alion such as: a) Fe Van loi I'icnui/ii {^(sionis in the process of rci^lofnil iuul infcrncffioiui/ ccononiic in/ci^rci/ion a IMil) thesis in political ec(Mi(>mics, presented in 2005 at the National Political Academv No C hi \linh, Ihc thesis refers t o praclical problems, reason and r ealit> of Cu stoms o perations in Vietnam in the process o\' regional and iniernational economic integration under pcrspecti\ e ol"political economv b) Ngu>en Ngoc 'fuc, Fnr/hcr rcforni (nn/ inoc/crnirolion of I'/cfnon} Cnslonis lo i}}cci rccjnifcnienfs of ifilcnhiiionol economic inlegrciiion a Phi) thesis in economics, presented in 2007 at llaniM foreign frade Uni\ersil> Ihc thesis describes the scientific basis for the continuation of reform and modenizalion oi cusl(Miis procedure as well as the ohicctive ncc^l and content ol' further iclorm and moderni/ation: refers to the actual situation ol" customs reform and modernization, and give direciions and solutions to further reform and modernization ctf eustiims in X'ietnam lo meet requirements of international 3! C H U O N G : K E T L I AN I h u e hien lhu lue hai quan dien Ur eiii kh(') nhal la nhan ihue l u doi ngu can bo cong ehue va ca D N iham gia hoal dong X N K Boi le nhung nguai lam cong lae hai quan va ea phia DN ehua hinh dung i.\C\\ du hinh ihue hoal dong van hanh eua I l ( ; D I nhu ihe nao lhi ehira ihe eo lin luirng l u \ e l doi Dieu na\ ehua noi den lam l\ so rui ro eua ean ho eong ehue hai quan \ a ea DN \ ' i l u xua den nax giai qux el cac lhu tuc X N K iheo phuong ihuc quan Ix hai quan truycMi ihong lal ca ho so la giax ur nhin bang mTil ihuong Ngax ca x ice khai bao hai quan ur xa eac DN cune phai den hai quan de nop cac ho S(T ehirng lir bane giax N h u n g ihue hien llui lue liai quan dien l u lal ea h6 >o loan la nhCrne du lieu dien Ur nam ln»an U)an iren mane Dac biel n6i den M O D I \:\ phai noi den co str \ a i ehal (max linh mang, duong iruxen ) nhung \ ice dau lu eua Nha nu\>c cho c6ng lac nax cune clur:i dou]^ bo I hm nua, lang e6ng nghe lh6ne lin \ ien lh6ne eua luroe la xan elura l l : plum cung dugc irane bi ral nhieu dgl nhieu chung loai khac nhau: phan mem elura lutan ihien elura Irien khai dugc ehu ky s6 xao ciigc song, eon nguoi sir dung elura ihanh dr.io: he lh6ne du ph6ng cho I K J D I cune ban che Do do, he lh6ne xir Ix du lieu dien ur ehua hoan ihien c6n phal sinh 16i c6n ihieii mgl s6 ehue nane lien leh nen qua irinh ihue hien mgl s6 lo khai X irong loi d:in uVi xiee liep nhan xir Ix [o khai dien ur eho doanh nehiep eo c6n chain Co ihc noi lhu luc hai quan dien ur ehinh la cong eu ehu \eu cua phuong ihue quan IV hai quan hien dai ma nhiOu nuoe Iren the eioi da ap dune iruoc xeu can phal iricn kinh le xa giao luu ihirone mai D6i xoi \ ' i c l nam su phal irien kinh le xa hoi tham eia hoi nhap dauL^ dai xeu can cap ihicl can phai irien khai ihue hien ihu lue hai quan dien l u d6i xoi hang hoa xual nhap khau \ ' o i bien ch6 eo han x a kh6ne ihe lane mai iheo khoi lugng eon\i x ice xan de dai - S ) d6 la nganh llai quan vira giai quyk thu luc nhanh ch6ng cho hang h6a xudt nhap khau lai vira dam bao yeu cau quan Ix chat che dung phap lual ch6ng buon lau gian lan ihuong mai ch6ng ihil ihu ihue mgl cac c6 hieu qua Do xax llai quan Viei nam nhal ihiel phai cbuxCMi d6i ur phmmg ihirc quan Ix lung 16 hang xuat nhap khau lai eua khau sang quan Ix ih6ng lin xe U)an bg qua irinh boat dgng xuat nhap khau cua doanh nehiep ih6ng qua giai phap ap dune lhu luc hai c|uan dien tu Mac du luan xan nax da phan lich kha da> du xe lhu lue hai quan dicn lu dang trien khai lai Viel nam anh huoug cua llurc hiC'n lhu luc hai quan Ien co quan hai quan xa cac doanh nghiep xual nhap khau: qua irinh phan lich da ira loi cac cau hoi nghien cuu: Fbu lue hai c|iian diC'n lu la gi? Vai lr6 cua lhu luc hai Lilian dien Ur Irong xiee lam lhu lue hai eiuan cho cac 16 bang xual nhap khau'.' Nhuii" iru x iel eua lhu lue hai t]uan dien ur so xcVi ihu lue hai quan iruxen thong? Nhung Igi ieh mane lai eho eae doane nhicp iham gia lhu lue hai c|iian dien lu".' Nhune ion lai, kho khan ihue hien lhu luc hai quan dien Ur".* Nhung anh lurong lich cue xa lieu cue d6i \o\ ea eo quan hai quan xa doane nghiep xual nhap khau lluie hien lhu lue hai quan dien lu'.* Song ur NU phan lich sail iroivj luan xan nax cune dai huong liep luc nehien cuu \e lhu luc hai quan dien lu dane iricMi khai lai \ i e l nam nlur: " (iiai phap nao de llurc hien mgl each hieu qua lhu lue hai quan dien lu irone boi canh loan cau hoa'.'" " \'ai lr6 eua thu tue hai quan dien lu irong x ice ihue dax phal irien kinh le'.'" lid noi Thdn;^ ndin 20II N o.> - 12 I heo Ong (Ba) ehmrng irinh na> can cai lien, bo sung nhung noi dung gi? 13 Theo Ong (Ba) mo hinh lhu luc hai quan dien ur irong luong lai nen phal irien iheo huong nao? a Nlur hien na\ a Chi cue I lai quan dien lu dam nhan loan bo qu> irinh llui lue ( I nr giam sal) D M o i linh luoi ihanh nen co il nhal moi Chi cue lai quan dien lu hoac nu")l I lai quan dien lir 14 a I lai tiuan dien Ur nen ihanh lap iheo khu x uc (x ung) gom nhicu imh I P •"; Khac Ngoai lhu lue hai quan dien ur Cong Ix cua Ong (Ba) co lam lhu Uie hai quan lhu eong khong'/ (Neu eo \ i n \ ui long ira loi cau hoi > deu S) D 15 16 Co a Khong I x O n u (Ba) xan lam lhu lue hai quan lhu couii la ui? D Clura eo loai hinh phu hop D Clura eo irang ihiel bi xa nhan lire n K h o n g ihuan loi bang lhu lue hai quan lhu cong D Clurong Irinh ihong quan dien ur elura tol n K h o n g bach loan duoe eae kluuin ehi phi hai quan n lan che x e dia diem lam lhu lue D D u o n g Irux en clura lol D Khac NhiTng uu diem eua qux innh lam ihu lue hai quan " lhu eong" hien nax so xoi lhu luc hai quan dien ur: I hu lue do'ii gian hon u I hong quan hang hoa nhanh luvn D it ton kem ehi phi luvn D Cong bang hon a M i n h bach hon D laeh loan duoe eae khoan chi phi hai quan n Khae 17 Nhung ban che cua qux irinh lam lhu luc hai quan " lhu eong" hien nax so xoi ihii lue hai quan dien tu: • lhu luc phue lap Thong quan hang hoa cham I on kem chi phi hern Chua minh bach (^uan Ix khong khoa hoe Khac T h o i gian irung binh de hoan ihanh lhu luc hai quan cho moi 16 hang lam lhu tuc hai tiuan lhu c6nu hien nax la: n D u o i I uio I ir den diroi gio lir deu duoi gio' Tir - X uiir I ir nga)' Iro \en Neu duoe phep ihax d6i x kien Ong (Ba) c6 mii6n thax doi x ice lira ebon iham gia thu lue hai quan then ur kh6ng? r_] Co n Kh6ng X i n Ong (Ba) eho biel nhung giai phap de cai lien lhu lue hai L|uan: G Xay d u n g L|U_X irinh don gian phu hop G Phat trien thu tue hai c|iian dien Ur D Xa> dung he lh6ng quan Ix hai quan G Tanu cironu Iranu ihiel bi kiem tra G Xax d u n g Chinh phu dien tir G Cai each nhan sir G Cai each l6 ehue bo nu'ix G Cai each lien luwng G Hoan thien chinh saeh phap luat G Phal trien dai Ix hai quan Khac A7///7/1.' kien nijhi khac (tieu cd) XIN CHAN THANH C A M O N QL'Y ( ) N ( ] (BAJ ihnn^ tin khan sal chi sir ditny, cho muc dich ni^hien ciru khon^ sir liun^ elm muc dich kfidc va hoan loan dirac hao mdl [...]... positive aspects o\ for implementation, l:-cusioms procedure Ci^mpared with the traditional one under perspective of management: Stud> and evaluate the current status of I -customs procedure being implemented in export- import enterprises: benefits gained and difficulties arising, the impact of the implementation of E- customs on customs acliviiies and enterprises of import and export: Identify, select and. .. and offer solutions to development of Ecustoms procedure in both customs authorities and import -export enterprises Thus, the questions for this research topic include: a) What is E- customs procedure? The role of E- customs procedure? Advantages of l -customs procedure compared to traditional customs procedure? b) 1 he benefits from the implementation of F-eusloms procedure for customs authorities and import. .. operations and other refaled works, fhrough an overview of these topics, it shows thai: these studies have mentioned I'-eustoms procedure in the prt)cess of international economic integration, in reforms for customs modernization 1 lowev er to assess the role and impact ol 1. -customs procedure in Vietnam on customs authorities and export- import enterprises, there has not been anv one Therefore v \e selected... / export enterprises? c) The inadequacies, difficulties and problems enterprises and customs authorities have to face in the implementation of F. -customs procedure? d) 'Ihe positive and negative effects in the implementation of l customs for both customs authorities and enterprises? E3 Scientillc and practical significance of the research: Ihis cssav offers the results from evaluation and analvsis of. .. Analysis of implementing E- customs procedure in Flai Phong Customs through the surv e\ results of import and export enterprises and the implementation of E- customs procedure at I lai Phong Customs Some recommendalions lor policy makers and managers of customs authorities in order to successfullv implement l >customs procedure in Vietnam: Some recommendations lor enterprises to get the best benefits brought... 1 :customs procedure Chapter 5: Conclusion Recommendations for further studv CHAPTER 2 THEORETICAL FRAMEWORK FOR ANAL\ ZENC IMPACT OF IMPLEMENTATION OF E- CUSTOMS PROCEDURE ON CUSTOMS AUTHORITIES AM) EXPORT- IMPORT ENTERPRISES 2.1 Definition and characteristics of E- customs procedure: 2.I.L Definition of E- customs procedure: E- cusloms procedure is a eusloms procedure in which the customs decfaration,... selected tt)pic: "Impact of implementation ol I -customs procedure in X'ietnam on customs authorities and export- import enterprises" lo analv /e an overview of 1 -customs procedure being used in X'iclnam: benellls Ixom the appliealu>n of the procedure lor bolli customs authorities and enterprises: inadequacies and problems in implementalion of F -customs prticedure: the studv will plav a part to give a... the current status of the implementation of l{ -customs procedure: the positive aspects and shortcomings of the implementation of f. -customs procedure in \ ictnam its impacts on customs authorities and imptMl -e\ porl enterprises applving 1customs procedure The stud\' is also a useful source of reference for learners, students who studv li-eustoms procedure in particular and customs procedure in general... have to wait for printing documents, lakes a lot o f time Second Iv when enterprise declares section o f mandator without a tax code, thex are unable to declare There is no guide for mandator enterprises: Some cases, enierprises do not receive a notice of customs fees on the nelwork in order to determine the exact amount o f fees to be paid I h i r d l x as regulations, Enterprises can declare before... cusliMiis authorities and import -export enlcrpriscs is dev ided into loui' sections or four chapters: Chapter 2: Iheoretical framework lor analv/ing impact of implemental ion o I -customs procedure on eusloms authorities and export- import enterprises \z Chapter 3: Analysis of E- customs procedure as model - Impact of implementing F -customs procedure on customs authorities and enterprises Chapter 4: Analysis ... authorities and export- import enterprises, there has not been anv one Therefore v e selected tt)pic: "Impact of implementation ol I -customs procedure in X'ietnam on customs authorities and export- import. .. impact of the implementation of E- customs on customs acliviiies and enterprises of import and export: Identify, select and offer solutions to development of Ecustoms procedure in both customs authorities. .. ANAL ZENC IMPACT OF IMPLEMENTATION OF E- CUSTOMS PROCEDURE ON CUSTOMS AUTHORITIES AM) EXPORT- IMPORT ENTERPRISES 2.1 Definition and characteristics of E- customs procedure: 2.I.L Definition of E- customs