Improving vietnam e customs procedures towards adopting modern customs standards by 2020

CENTRAL INSTITUTE FOR ECONOMIC MANAGEMENT NGUYEN BANG THANG IMPROVING VIETNAM ELECTRONIC CUSTOMS PROCEDURES TOWARDS ADOPTING MODERN CUSTOMS STANDARDS BY 2020 Major: Economic management Code: 62.34.04.10 THESIS SUMMARY OF ECONOMICS DOCTOR Hanoi - 2014 -1- The Works is completed in: Central Institute For Economic Management Scientific instructor: Prof, Dr Hoang Van Hoa Dr Dinh Duc Sinh Comment 1: Comment 2: Comment 3: The thesis will be defended before the Institute's Board of Examiners meeting at the Central Institute For Economic Management at on .2014 The Thesis can be found at: - Library of Central Institute For Economic Management - National library, Hanoi -2- OPENING Theme's necessities Vietnam increasingly integrates into the world economy, is impacted by more complex and diversified foreign trade relations Customs is considered as "economy guard" who both facilitates trade-investmenttravel, and helps to promote economic development; but controls smuggling, commercial fraud, protects economic sovereignty, national security and social safety Vietnam electronic customs procedures began piloting from 2005, after an application period, many great benefits have been obtained but there are still many limit aspects that need to overcome, especially in the context of integration, compliance with international commitments For these reasons, the author chose theme "Improving Vietnam electronic customs procedures towards adopting modern customs standards by 2020" to used as PhD thesis' research theme Research overview related to the thesis The e-customs procedures are popular applied around the world, especially developed countries which had the implementing process from the 80th century ago; There are many foreign works which are primarily researched on professional application of modern customs on customs procedures With regard to domestic works which mainly focuses on pilot deployment of e-customs procedures on building organization model of information technology and wider as the customs modernization plans Especially, there has not been any comprehensive research, dedicated to the finishing of e-customs procedures according to the modern customs standards that focus on application of 12 typical standards Thesis research goals Thesis aims to handle the researched problems: (1) Theoretical basis of electronic customs procedures aligns with the application of modern customs standards; (2) assessment of the status of implementation of Vietnam electronic customs procedures in the context of applying the modern customs standards from 2005 to present; (3) to improve Vietnam electronic customs procedures towards adopting modern customs standards, what solutions and conditions should be systemized -3- for successful implementation Object and scope of research - The research object: e-customs procedures and matters improve towards the application of the modern customs standards - The thesis research scope focuses on researching major issues: ecustoms procedures; modern customs standards; awareness of the role of ecustoms procedures; the legal framework of the e-customs procedures; apparatus organization to implement e-customs procedures; development and application of information technology in e-customs procedures; training for e-customs procedures - Time and space of research: from 2005 to present, at 21 Customs Bureaus of provinces and cities where the pilot on 90% of the amount of imported and exported goods Research methods Thesis uses the combined methods: analysis, comparison, systematic, dialectical materialism to cater for research In addition to using the actual survey investigation (1200 businesses and 122 customs officers), econometrics, statistics to evaluate both the substance and the amount of research results New contribution of the thesis - In terms of theory: (1) Overview of basic theoretical issues about ecustoms procedures and modern customs standards; (2) building 12 lists of universal & modern customs standards, necessary and factors affecting the application of standards of electronic customs procedures improvement - In terms of practice: (1) Experience research of some countries with similar conditions to Vietnam, drawing the successful and un-successful lessons for Vietnam; (2) Analysis, comprehensive review of status to apply e-customs procedures under the modern customs standards over time; (3) building goals, views, trends to complete e-customs procedures by 2020; (4) proposing the core solution groups and conditions ensure to complete Vietnam electronic customs procedures towards adopting modern customs standards by 2020 Thesis structure In addition to the Opening, conclusion, indexes, the thesis consists of -4- three chapters: - Chapter Some theories and practices for electronic customs procedures towards the application of the modern customs standard - Chapter The status of Vietnam electronic customs procedures has been applied the modern customs standards since 2005 - Chapter Goals, viewpoints, trends and solutions of completing Vietnam electronic customs procedures by 2020 towards adopting modern customs standards CHAPTER SOME THEORIES AND PRACTICES FOR ELECTRONIC CUSTOMS PROCEDURES TOWARDS THE APPLICATION OF THE MODERN CUSTOMS STANDARDS 1.1 Some concepts 1.1.1 Concept of customs and customs procedures - Customs: the State Agency made national sovereignty in international relations, in the separate areas set up on the territory of the country to ensure national security, social order and safety to test, monitor, control and collection of taxes and fees, make customs clearance for import and export goods means of transport in transit and immigration; Detecting, preventing and treating in violation of law on commercial fraud, tax-evasion of import-export activities, immigration - Customs procedures: Customs law (Vietnam) defines "Customs procedures are the affairs that customs and the customs officers to comply with the provisions of this law in respect of goods, means of transport" Kyoto Convention's general definition: "customs procedures are all the activities that the customs agency and the persons concerned must undertake in order to ensure compliance with customs law" 1.1.2 The concept of traditional customs procedures and e-customs procedures - Traditional customs: customs procedures are made in form of craft and starting with the mechanized application (by fax, telegram and baggage, goods tested by scanner) in management of import and export activity of goods and transport means immigration in every country - Electronic customs procedures: are all the activities that the -5- customs agency and the persons concerned must undertake in order to ensure compliance with customs legislation based on the application of information technology, digital, computer tools, means of communication on internet Table 1.1 Comparing two methods of performing customs procedures Comparison criteria Process Technology Traditional customs procedures Complex motor, craft Techniques Tools Modes of communication HR Paper writing Traditional office Tools Person-person Apparatus Bulky, dispersion Operation structure Ask-Give Policy 10 Ability to integrate Unpredictable changes Disadvantages Universal E-customs procedures Simple Information technology Digital Computer system Internet tools High specialization Streamlined, focused Standards, practices Easy to evaluate Advantages Source: General documents of research in 2013 on e-customs procedures - Role, advantages of e-customs procedures: (1) Regard to international integration; (2) Regard to state management; (3) Regard to business 1.2 Concept of a modern customs standards and conditions applied in implementing e-customs procedures 1.2.1 Concept of modern customs standards - Customs standards: all legal regulations, standardization in foreign trade activities between countries and between countries with regard to customs procedures built by international organizations, adopted member countries as a basis to follow - Modern customs standards: standards of customs are made by basing on the application of information technology, electronic trading in the internet environment to make the electronic customs procedures -6- Of the system standards of customs issued by WCO, WTO, UN, there are 12 universal standards applied by many countries in building and improving the electronic customs procedures include: Table 1.4 Lists of modern universal, necessary customs standards applied for implementation of electronic customs procedures No 10 11 12 Concept of modern customs standards Auto receiving declarations Previous declaration Prior clearance Risk management Reduction of trade documentation Auto definition of origin Auto calculation of value Auto tariffs of tax Auto payment of tax Auto customs clearance Exchange of electronic information Reduction of costs Organizations of issue WCO WCO WCO WCO WTO WTO WTO WTO WTO WCO UN WTO Source: General of NCS to review the implementation of international commitments of Vietnam customs, in 2013 1.2.2 Concept of modern customs standards and conditions applied in implementing e-customs procedures - Must have a major political commitment of national leaders of international economic integration - Invest articles for the necessary conditions to build legal, information technology, training of human resources to apply e-customs procedures - Fully cooperate closely, share between State bodies and businesses in building policies for electronic customs procedures - Adequate investment business of human resources, information technology infrastructure for the deployment of electronic customs procedures according to modern customs standards 1.3 The factors impact on application of e-customs procedures according to modern customs standards 1.3.1 Group of external factors First, international factor: -7- - Trend and pressure of international integration: Giving nations a new favorable opportunities, to develop, and challenges and pressures forcing countries to strongly reform to join a playground, game rules; - Help, support of nations, international organizations, cooperating partners: Support, cooperation between countries and international organizations to ensure strength in application of electronic customs procedures according to modern customs standards Second, national factors: Political determination and investment act of resources of both the State and enterprises to create new impetus to the development of the country 1.3.2 Internal factor group (belongs to the customs authority) - Cognitive and thinking views of leading customs about the application of e-customs procedures in the modern customs standards: The correct perception of the importance of this issue and with determination, adequate investment then will promote the effective application soon On the contrary, will hamper and delay the procedures, the application route of ecustoms procedures - Structure of apparatus, organization level: E-customs procedures to remove geographical distance, therefore there should be new management apparatus in the direction of focus, consistent effectiveness in lieu of a traditional organization today - Technical infrastructure, scientific and technological level of the Customs Office: As a condition of extreme importance to help save processing time of jobs, create conditions for enterprises implement fast customs clearance, customs clearance of goods; especially in the present electronic customs procedures - Customs human resources: Renovation and modernization of customs, the capacity for customs force in implementing e-customs procedures is indispensable problem just convenient for commerce, has just met the requirements of the customs administration 1.4 Experience in some countries in terms of implementing ecustoms procedures and lessons learned for Vietnam customs Vietnam carries out e-customs procedures late than many countries in the world, is a country going after countries, leveraged pretty well -8- experienced many countries going ahead with similar conditions 1.4.1 Experience of some countries - South Korea: (1) Establishing and putting into use of customs automation systems in the focus model; (2) Customs Organization of two-level model; (3) application of risk management technique in ecustoms procedures; (4) extending the application of risk management techniques - Singapore: (1) Establishing specialized customs intelligence accountability and risk management; (2) building the information technology system and there are always parallel systems to ensure safety and security; (3) applying modern customs standards many of the electronic customs procedures - Japan: (1) Construction of a complex system of electronic customs procedures on the basis of consolidated lot system for all State objectscustoms-business and interactive use of export-import operations and internal management; (2) customs procedures system must automatically based on the two main customs system (NACCs) and customs intelligence information (CIS) 1.4.2 Lessons learned for Vietnam customs - Successful lessons: (1) Implementation, plans tied to infrastructure construction in information technology with the application of information technology in development of e-customs procedures (2) Enhancing synchronization between e-Customs with e-Government to make the connection between the customs and local ministries, departments (3) Construction, development of electronic customs clearance system should automatically apply the modern customs standards and always update to meet the requirement of practicality (4) Focusing on building, intelligence-gathering and extending the application of risk management techniques to automatically for each profession and the customs of all three previous stitch-in-after the customs clearance of goods - Un-successful lessons: (1) Receiving information processing of ecustoms procedures declarations upon the entire VAN (2) Application of standard content model does not match the system practices of legal basis and the country's foreign trade practices -9- CHAPTER STASTUS OF VIETNAM ELECTRONIC CUSTOMS PROCEDURES IN APPLICATION OF MODERN CUSTOMS STANDARDS SINCE 2005 2.1 Overview of Vietnam customs Vietnam Customs was established on September 10th 1945 under the Decree No 27-SL referred to as "Customs authority and indirect taxes" under the Ministry of finance, in 1954 changed into "Central Customs Department" in the Ministry of Industry & Trade On August 20th 1984, the State Council established the General Department of Customs in the Council of Ministers By 2002, however, the Prime Minister issued the decision transferring the General Department of Customs Ministry of Finance as the first establishment The process of formation, development over many names, positions, sizes, but Vietnam Customs still fulfill the countries' customs function Vietnam customs became a member of the World Customs Organization (WCO); the system is organized by vertical industry from Department of customs, Bureau of customs Since 2005 the electronic customs procedures have been started 2.2 Status of major factors affecting the application of modern customs standards 2.2.1 Group of external factors First, international factor: - Trend and pressure of international integration: Vietnam has been member of organizations: World Trade Organization (WTO), the United Nations (UN), the Association of ASEAN, APEC, ASEM and official member negotiating Trans-Pacific Agreement (TPP) Thus, the requirements and regulations binding for members, Vietnam must be fully involved - Integration requirement in the field of Customs: As a member of the World Customs Organization, Vietnam should be in full compliance with all the conventions of this organization given according to certain routes To date Vietnam has signed over 186 bilateral, multilateral agreements with the customs of the countries in the world However, besides achievements, there are still many issues, in the review in the 10th Party Congress resolutions stated "a integration -10- 2.3 Status of Vietnam electronic customs procedures in application of modern customs standards since 2005 2.3.1 Content of implementing Vietnam electronic procedures Electronic engineering has been used in certain customs from the 80's of the last century, with the digitized a number of professional information and declaration information of customs clearance Officially mark in 2005 by the e-customs procedures pilot with the goal "to switch from manual customs procedures to electronic customs procedures" 2.3.2 Status of modern customs standard application in the process of Vietnam electronic customs procedures development since 2005 Based on the legal conditions, the resources, the level of response to national information technology, customs initially applied some modern customs standards in e-customs procedures as follows: First, apply the previous reporting standards information and receive customs declarations through electronic means: The customs declarants are allowed to make the customs profile declaration before the goods arrived and data processing system for electronic customs automatically receiving 24/7 Secondly, apply a standard to reduce commercial vouchers of ecustoms documents: Electronic customs documents are prescribed: ecustoms declarations and accompanying documents may be in electronic form (legal value as paper documents) Helping reduce customs documents in the process of customs clearance Thirdly, processing information of automated customs declaration to proceed to apply standards of auto customs clearance: Some of the test contents have been automatically processed by the system: validity, conformity of the information; the policy of items; at the request of each customs administration mode; automatic goods routing Fourthly, enforcement of auto tariff standards: Checking tax policy and tax classification is processed by customs officer on tax accounting system of KT01 (formerly KT559) Fifthly, application of auto tax payment standards of import and export cargo: From 2009 the Customs changed the tax payment mode through a connection between customs departments-treasury-12- commercial bank This is just the initial step of electronic tax payment that has not reached the level of auto tax payment Sixthly, application of risk management standards: Focused on the stage during the customs clearance of goods, for the step before and after customs clearance is only prepared to apply Seventhly, application of electronic information exchange standards in a decision of customs clearance on the system for electronic data processing: Through a system of electronic data processing of customs to exchange, inform the declarants about results processing customs documents (automatic range can only stop at routing) and other businesses must still be interfered by customs officers Full evaluation of the application of modern customs standards in Vietnam e-customs procedures, the author has systemized and analyzed the application status of 12 modern customs standards as follows Table 2.2: Assessment of the status of application of Vietnam modern customs standards to January 01st 2013 Content Standard Law of Vietnam Insufficie Fully ntly regulated regulated Auto receiving X Pre-declaration X Undefined partially satisfied X X X X X X X X X X X X X X X Auto tariffs of tax X X X Auto payment of tax X X X Auto customs clearance Exchange of electronic information Reduction of costs Unsatisfied X X X Reduction of trade documentation Auto definition of origin Auto calculation of value Level of response X Pre-clearance Apply RM Implementation fully partially Unimplemen implemen implemen Satisfied ted ted ted X X X X X X X X X Source: General NCS on reviewing the implementation of international commitments of Vietnam Customs, in 2013 -13- 2.3.3 State policies and measures which have already implemented electronic customs procedures in Vietnam from 2005 to the present Firstly, awareness, policies of implementing electronic customs procedures: - For the party, the State (National Assembly, Government) + The Party's policies: Recognizing the importance, the Politburo has issued Directive No 58/CT-TW "development and application of information technology is a strategic priority in the quest for economic social development, is a main vehicle to come off the pickup Shorten the developing gap against the countries going ahead " Customs assigned "focuses on developing electronic services in the field of customs to guarantee the conditions necessary in line with the progress of regional & international economic integration" + Awareness of Government: having built many informatics projects for an administration in line with the objectives of each stage + Act of the National Assembly: Since 2005, the National Assembly has enacted legal base systems in large numbers, helping to promote administrative reformation and raise awareness about the role of e-customs procedures in each State agency officials and businesses - For Customs: The great undertakings of Directive No 58/CT-TW has impacted the perception of senior management customs to devise action plans and processes taken to modernize Customs and go to ecustoms procedures pilot deployment in 2005 - For the business community: VCCI has deployed the project 191 with a goal to "raise awareness and promote the application of information technology in businesses, especially small and medium businesses" To date, some businesses have noticed the important role and the need for the application of information technology in manufacturing operationsbusiness, including e-customs procedures However, while no less businesses are lethargy and not interested Secondly, build and modify the legal basis for implementing ecustoms procedures: In the period 2003-2013, the State has detailed undertakings by developing and issuing a great number of systems of legal documents, about: (1) strategies, plans of the application of information technology, -14- e-commerce in the State administration (2) building and implementing e-customs procedures: Thirdly, establishing and reinforcing the organization apparatus of implementing e-customs procedures: - In a period 2005-2009: (1) establishment of the Steering Committee to carry out the modernizing plans of the customs that a focus on piloting electronic customs procedures (2) establishment of an apparatus of e-customs Bureau agents direct a pilot implementation of electronic customs procedures - From 2009-present: (1) establishment of Directorate's Steering Committee to proceed piloting electronic customs procedures (2) changing the deployment model of electronic customs procedures in an e-customs Bureau to apply e-customs procedures for the traditional Customs Bureaus Fourthly, having invested to build and operate the infrastructure of information technology deployment of electronic customs procedures, but has not already met the automation requirements according to modern customs standards Fifthly, preparing human resources for implementing e-customs procedures: - In a period 2005-2007: (1) Sending officers to study the experience of some countries and organizations on implementing e-customs procedures (2) selecting, mobilizing good officers to build a core apparatus for e-customs Bureaus - In a period 2007- present: (1) Building a core staff for specialized unit to deploy electronic Customs procedures of Directorate level (2) expansion of training all customs officials and businessmen (3) businesses should prepare human resources for implementation Sixthly, deploying several public services to support the deployment of electronic customs procedures: (1) providing free software to ecustoms declarations for businesses (2) developing agents of e-customs declaration (3) free supporting on training and handling obstacles for businesses in the process of implementing electronic customs procedures (4) providing other related services for businesses when taking part in e-customs procedures (5) providing the infrastructure of -15- internet lines to businesses Seventhly, specific results, implementing e-customs procedures on the contents: - Scope of deployment (number of Bureaus, Offices) In the period 2005-2009, the beginning of the pilot process of e-customs procedures are implemented in e-customs Bureaus (counting for 1.77% over the country) in customs Bureaus, Hai Phong, Ho Chi Minh city Up to December 15th 3013, e-customs procedures was implemented on nationwide with a number of Customs Bureaus implementing of 148/174 (reached 85.06% over the country) with an increasing speed on average 27.85% a year Number of customs Bureaus is raised 34 in 2013 (reached 100% over the country), which is 17 times higher than in 2005 when it began Table 2.15: The number of customs Bureaus, customs Offices implemented from 2005 to 2013 Criteria Year 2005 2006 2007 2008 2009 2010 2011 2012 2013 The number of customs Bureaus deploy ecustoms procedures Total nationwide Customs Bureaus 02 02 02 02 10 13 19 21 34 33 33 33 33 33 33 33 33 34 A ratio compared with the total number of nationwide customs Bureaus 6.06% 6.06% 6.06% 6.06% 30.3% 39.4% 57.6% 61.8% 100% Number of Customs Offices carry out e-customs procedures Total nationwide Customs Offices A ratio compared with the total number of nationwide Customs Offices 02 02 02 02 30 70 90 101 148 113 113 113 113 113 113 120 136 174 1.77% 1.77% 1.77% 1.77% 26.55% 61.95% 75.00% 74.30% 85.06% Source: Summarized from the annual working program reports in the Customs from 2005 to 2013 - Number of businesses implementing electronic customs procedures Started piloting in September 2005 with 48 selected businesses, with a ratio of 0.11% of the total import and export businesses in the country; up to December 15th 2013 number of implementing businesses reaches 47,776 (accounting for 96.00% of the total amount of import and export businesses in the country) Thus, the comparison between the two periods as of the end of 2005 to the end of 2013, the number of businesses has reached 995 times equivalent to 99,433.33% increased -16- Most e-customs procedures have come to each business around the country and this is a good premise for the Customs to continue to improve and apply the standards of modern customs Table 2.16: The number of implementing businesses from 2005 to 2013 Year 2005 2006 2007 2008 2009 2010 2011 2012 2013 Number of businesses implementing electronic customs procedures 48 195 245 352 403 3,135 30,919 47,100 47,100 The total number of businesses of import-export activities all over the country (businesses) 44,581 44,992 45,454 46,899 47,112 47,483 47,444 51,018 49,767 The rate comparison between businesses implementing ecustoms procedures compared to total businesses of import-export activities in the country (%) 0.11% 0.43% 0.54% 0.75% 0.86% 6.60% 65.17 92.32% 96.00% Source: Synthesis of NCS from the reports of the Customs and the customs statistics Almanac about the Vietnam import-export goods from 2005 to 2013 - Quantity of declarations and quota of import and export commodities passed e-customs procedures Number of declarations performed electronic customs procedures in 2005 is 8,183 declarations (only 0.52% of the declarations over the country) this is a very modest number but is great achievement for a start On December 15th 2013, the number of performed declarations reached 5,481,000 declarations, accounting for 92.55% of declarations over the country By this strong step forward, the import and export scale through electronic customs procedures is increasingly being raised, 2005 was 1,304 million USD, only accounting for 1.88% of the total import-export turnover in the country until 2013 passed by e-customs procedures of 228,740 million USD, accounting for 91.16% Thus, quantity of ecustoms procedures has achieved tremendous success, creating the premise for enhanced transition, improving quality in the next stage -17- Table 2.17: Data on the declarations and import-export turnover implemented via electronic customs procedures over the country, period 2005 to 2013 Criteria Declarations performed by e-customs procedures (declarations) Year The total number of customs declarations over the country (declarations) Ratio of custom declaration compared with nationwide declarations (%) Importexport turnover passed by e-customs procedures (million USD) The total importexport turnover over the country (million USD) Ratio of turnover passed by e-customs procedures against total imexport turnover over the country (%) 69,416 1.88 3.32 2005 8,183 1,588,457 0.52 1,304 2006 20,147 1,825,368 10.1 2,813 84,717 2007 25,370 2,058,117 1.23 3,445 111,244 3.10 2008 29,520 2,617,689 1.13 5,148 143,399 3.59 2009 36,944 3,023,889 1.22 3,915 127,045 3.08 2010 333,055 3,518,285 9.47 42,230 157,075 26.89 2011 2,510,153 4,300,189 58.37 158,933 203,656 78.04 2012 4,379,000 5,152,000 85.00 214,300 228,310 93.86 2013 5,481,000 5,922,000 92.55 228,740 250,930 91.16 Source: Synthesis of NCS from the reports of the Customs and the customs statistics Almanac about the Vietnam import-export goods from 2005 to 2013 - The effectiveness of administrative procedures reformation and reduction of costs when implementing e-customs procedures: (1) reformation of administrative procedures, minimization of declaration documents when making electronic customs procedures (2) improving the efficiency of State management of customs, facilitating businesses (3) shortening average time for customs clearance of imported -exported goods to reduce the cost of storage time, demurrage Table 2.20: Statistics of average time for customs clearance procedures of imported -exported goods Criteria Done by electronics customs procedures Made by traditional customs procedures 5-10 60-180 20-30 180-360 480-2880 480-2880 Customs clearance average time of goods for Blue line (minutes) Customs clearance average time of goods for Yellow line (minutes) Customs clearance average time of goods for Red line (minutes) Source: Summarized from the summary report of e-customs procedures and some -18- survey results on measurement of the customs clearance time from 2005 to 2013 Time consuming comparison of the difference between the two procedures is 606,741,705 minutes equivalent to 1,264,045 working days of 08 hours, including: (Blue line: (60-3) minutes x 3,016,155 declarations = 165,888,525 minutes, Yellow line: (180-20) minutes x 1,435,485 declarations = 229,677,600 minutes, Red line: (480-60) minutes x 502,799 declarations = 211,175,580 minutes) With the volume of this consuming time, the customs and businesses will have to save funds, finance, human, expand headquarter offices When applying e-customs procedures, a great effect in all aspects has been obtained 2.4 Overall rating of application status of modern customs standards in making e-customs procedures in Vietnam and given issues 2.4.1 Achieved successes - Positively impacting on society's awareness of the need to move the implementation of customs procedures from traditional methods to the electronic method - Construction of system of the facilities, especially information technology has been upgraded - Business community has been benefiting from implementing ecustoms procedures - A Division of Customs officers and businesses are trained, fostered as a core for implementing the modernization of customs 2.4.2 The lessons of failure in the deployment of Vietnam ecustoms procedures - Awareness is not yet close to reality when we want a shortcut to quickly deploy official electronic customs procedures - Choice of deploying model of electronic customs procedures is not in line with the practices 2.4.3 Some existing issues - The proportion of the e-customs procedures of customs procedures is still very low - Professional range of electronic customs procedures is still limited - The result can meet a small ratio aganist the request to deploy and respond with 12 modern customs standards prevalent in the process of -19- implementing the e-customs procedures 2.4.4 Causes of existing limitations Firstly, the cause belongs to the State: - Awareness of the ministries, departments are incomplete and keep up with the requirements of international cooperation and economic and social development of the country - The legal framework of e-customs procedures has many inadequacies - The application of information technology and information technology development is not balanced Secondly, the cause belongs to the Customs: - Organization of reformed customs apparatus has not kept up with the development demand of e-customs procedures - High level manpower for e-customs procedures application not meet requirements Thirdly, the cause belongs to the Businesses: - Businesses haven't already wanted to apply e-customs procedures, and satisfactory investment for the implementation of this e-customs procedures has not been done - Connected computer systems, enterprise software quality have not been modern and compatible with the modern State management agencies; common problems in implementing electronic customs procedures CHAPTER 3: SOLUTIONS COMPLETION OF VIETNAM ECUSTOMS PROCEDURES BY 2020 TOWARDS ADOPTING MODERN CUSTOMS STANDARDS 3.1 Background of completion of Vietnam e-customs procedures 3.1.1 International background Completion of Vietnam e-customs procedures during the period from now to the year 2020 is conducted in the international situation with volatility, generating more power as well as challenges, drag this implementing process, such as: The revolution of modern science and -20- technology; Restructuring of global economy; Unipolar world is multipolar 3.1.2 Domestic background Vietnam has opened and international economic integration, stands in front of the required reformations and solve the problems in the country to jump into the common playground in the world, with a range of major objectives must include: Platform construction of the country during the transition to Socialism (complement and growth in 2011) Social -economic development strategy during 2011-2020 2013 new constitution enactment, 1992 constitution amendment 3.2 Goals, viewpoints, trends and solutions of completing Vietnam electronic customs procedures by 2020 towards adopting modern customs standards 3.2.1 Aim of improving Vietnam electronic customs procedures by 2020 Current electronic customs procedures done at 100% of customs bureaus, customs offices, all kinds, 95% of import turnover, 100% of businesses in this area Submitting export- export documents once and at a focal agency, reached 95% by 2020 3.2.2 Viewpoints of completion of Vietnam e-customs procedures - Developing foreign economic activities of Vietnam effectively, sustainably - Under modern customs standards in line with the characteristics of Vietnam - Ensuring the sync system in improving electronic customs procedures 3.2.3 Plan of improving Vietnam electronic customs procedures by 2020 - In line with the foregoing goals, viewpoints in completing Vietnam -customs procedures by 2020 to be determined on the basis of applying the modern customs standards - Promoting the application of standards "Auto receiving" which has been implemented and applied in full 11 unrealized standards, including: pre-declaration, pre-customs clearance, the application of risk management, reduction of trade documentation, auto determination of -21- origin, auto pricing, auto tariffs, auto tax payment, electronic customs clearance, electronic communication enhancing and reduction of costs 3.3 Completion solutions of e-customs procedures towards adopting modern customs standard by 2020 3.3.1 Going on enhancing awareness, strengthening the direction of the State and businesses about the role, benefits the implementation of the electronic customs procedures towards the application of the modern customs standards Firstly, with regard to the State (National Assembly, Government, Ministries) - The National Assembly should make an additional internal legislated the international commitments and standards of modern Customs Law on Customs laws and amendments passed in 2014 - The Government and the Ministries involved focus on building system of guidance documents on the background of electronic customs procedures supersede the provisions in customs, crafts, today's papers before the year 2015 Secondly, with regard to the Customs Agency - Continuing to raise awareness for Customs officers from local to central level of the inevitable, irreversible trend, delay advocated the comprehensive application of electronic customs clearance in all customs professional steps - Improving the specific business processes to e-customs procedures before 2020 - Construction of the sanctions monitoring mechanism, management control in compliance with the implementation of business processes electronic customs procedures Thirdly, for the business community in import and export activities - Strengthening the coordination of propaganda and raising the awareness of the role and the benefits brought to businesses - Applying incentive mechanisms and sanctions to direct businesses comply, apply e-customs procedures 3.3.2 Additional amendments, enactment of new legislation frame of e-customs procedures The practices require amendments, supplements and issuing -22- numerous new regulations under the authority of the National Assembly, the Government, ministries In particular, focusing on the most important issue is the enactment of the new contents of e-customs procedures in: Customs Law, Commercial Law, Law on export and import tax, Law on electronic transactions, Law on information technology These are the key codes relating to customs in General, ecustoms procedures 3.3.3 Promoting the application of information technology in the finalizing the electronic customs procedures - Improving, adding application strategies of information technology by 2020 - Developing telecommunication infrastructure systems-information technology applications to meet performance requirements for electronic customs according to modern standards With key systems: (1) building the connection system between Customs Agency-Customs (2) building the connection system between Customs Agency Ministries (3) building the system receiving, processing data of customs declarations between Customs agency-businesses - Increasing security, safety system of implementing e-customs procedures of the Customs Agency and the whole businesses The risk of customs and businesses suffered hacker and data loss information when implementing customs procedures that require a security for software, hardware systems according to the requirements of the standards of automation and high security 3.3.4 Organizational innovation of customs apparatus as required completing electronic customs procedures Firstly, re-determining the location, the function of the General Department of customs - On location, due to its own specific duties of Customs, the Government needs to enact for the General Department of customs as a Special Administration Agency which has jurisdiction in enacting an equivalent professional directions and order to ensure consistency, independence - On function, adding the task to gather intelligence information of domestic and foreign customs for the governance of the business -23- activities of export, import goods, means of exit and entry Secondly, re-arranging the Customs structure - Sizing in the number of units of the Agency Directorate from 17 units at present down to 14 units of Service, Department of the General staff - Establishing Regional Customs on the basis of reorganizing 34 Customs Bureaus of provinces, cities at present down to 12 regional customs units This will delete the "administrative distance", enhance focus, consistent in directing operations, minimize costs of the apparatus, limit governing false intervention of local authorities 3.3.5 Human resource development in response to improving electronic customs procedures People have always been the central factor and kernel for every strategy and action; modernization of customs to perform the following: - Establishing a training strategy for long-term experts from now to 2020 as the platform for development - Focusing on financial resources for training team of experts (domestic and overseas) - Establishing the scope of content to high level training in response to make the electronic customs procedures according to international standards 3.4 Conditions of guarantee to achieve complete Vietnam electronic customs procedures by 2020 and some recommendations 3.4.1 Conditions of guarantee First, the party, the National Assembly, the Government should continue the political resolve to enhance the role of awareness direction application of electronic customs procedures according to the modern customs standards Secondly, strengthening investment in building science and applications of electronic customs procedures according to modern customs standards systematically and scientifically Thirdly, initiatively international cooperation and legislation of the international commitments on customs in the Vietnamese legal system 3.4.2 Some recommendations Firstly, it is necessary to build, improve electronic government Secondly, it is necessary to confirm the location of the Customs -24- Agency in coordinating agency activity management in Viet Nam's international border gates CONCLUSION With a general background of domestic and foreign trade and exchange of goods, increasingly rapid pace whereas global terrorism risk is increasing, Customs are considered as the country’s economy guards who are standing in front of the pressure to keep up with the pace of global economic growth, facilitate ventilation in trading, investment, and tourism between the countries, but on the one hand to control and prevent the exclusion of factors harmful to security, economy and social communities With a great request, management methods according to the traditional customs and electronic customs currently have not completely met, the Thesis on "Improving Vietnam electronic customs procedures towards adopting modern customs standards by 2020" is a research works which has: (1) systemized theories about arguments about e-customs procedures, customs, modern customs standards as the basis for the analysis, research process to find out the direction to solve the problem (2) analyzed, assessed the status of implementation of the electronic customs under modern customs standards from 2005 to look honestly and fully to the present (3) From which to build the critical solution groups, key roles in resolution problems to improve the electronic customs procedures towards adopting modern customs standards As the research framework is limited in terms of time and resources, the thesis cannot cover all the issues of customs procedures according to the modern customs standards, there should inevitable shortcomings The Author is looking forward to getting the opinions of scientists, experts in order to complete his thesis Thank you very much! -25- LIST OF AUTHOR'S RESEARCHING WORKS Article name Number, year scientific journal Vietnam e-Customs - Status and some solutions creating conditions In particular, August 2013 Journal of Economics and Development-ISSN 1859 0012 No 55, August 2013 Economic Management Journal-ISSN 1862-039X Development of e-customs procedures meets the international economic integration No 16/2013 (552) Journal of Economics and Forecasting-ISSN 08667120 Vietnam e-Customs procedures - Improving demands by 2020 to meet the international economic integration No 408, August 2013 Economic Journal of Asia Pacific -ISSN 0868-3808 E-customs procedures in adopting modern customs standards Number 08 (586) 2013 Financial journal-ISSN 005-56 Strengthening the legal base for improving Vietnam electronic customs procedures towards adopting modern customs standards No 8/2013 Research Journal of Customs Electronic customs-an important role in the context of the world economy integration No 38 (102010) Industry Magazine-ISSN 0868-3778 Implementing e-customs to promote administrative reforming process in Vietnam No (61) 2010 Financial & Investment Journal-ISSN 005-56 Three more areas are implemented electronic customs procedures No 98 (82010) Journal of national treasury management-ISSN 18594999 About modern Customs standards within the applicable legal basis for Vietnam electronic customs procedures -26- [...]... e- customs procedures application do not meet requirements Thirdly, the cause belongs to the Businesses: - Businesses haven't already wanted to apply e- customs procedures, and satisfactory investment for the implementation of this e- customs procedures has not been done - Connected computer systems, enterprise software quality have not been modern and compatible with the modern State management agencies; common... foreign economic activities of Vietnam effectively, sustainably - Under modern customs standards in line with the characteristics of Vietnam - Ensuring the sync system in improving electronic customs procedures 3.2.3 Plan of improving Vietnam electronic customs procedures by 2020 - In line with the foregoing goals, viewpoints in completing Vietnam -customs procedures by 2020 to be determined on the... of Vietnam ecustoms procedures - Awareness is not yet close to reality when we want a shortcut to quickly deploy official electronic customs procedures - Choice of deploying model of electronic customs procedures is not in line with the practices 2.4.3 Some existing issues - The proportion of the e- customs procedures of customs procedures is still very low - Professional range of electronic customs procedures. .. improving the efficiency of State management of customs, facilitating businesses (3) shortening average time for customs clearance of imported -exported goods to reduce the cost of storage time, demurrage Table 2.20: Statistics of average time for customs clearance procedures of imported -exported goods Criteria Done by electronics customs procedures Made by traditional customs procedures 5-10 60-180... Customs clearance average time of goods for Blue line (minutes) Customs clearance average time of goods for Yellow line (minutes) Customs clearance average time of goods for Red line (minutes) Source: Summarized from the summary report of e- customs procedures and some -18- survey results on measurement of the customs clearance time from 2005 to 2013 Time consuming comparison of the difference between... Source: General NCS on reviewing the implementation of international commitments of Vietnam Customs, in 2013 -13- 2.3.3 State policies and measures which have already implemented electronic customs procedures in Vietnam from 2005 to the present Firstly, awareness, policies of implementing electronic customs procedures: - For the party, the State (National Assembly, Government) + The Party's policies: Recognizing... crafts, today's papers before the year 2015 Secondly, with regard to the Customs Agency - Continuing to raise awareness for Customs officers from local to central level of the inevitable, irreversible trend, delay advocated the comprehensive application of electronic customs clearance in all customs professional steps - Improving the specific business processes to e- customs procedures before 2020 - Construction... electronic customs currently have not completely met, the Thesis on "Improving Vietnam electronic customs procedures towards adopting modern customs standards by 2020" is a research works which has: (1) systemized theories about arguments about e- customs procedures, customs, modern customs standards as the basis for the analysis, research process to find out the direction to solve the problem (2) analyzed,... procedures is still limited - The result can meet a small ratio aganist the request to deploy and respond with 12 modern customs standards prevalent in the process of -19- implementing the e- customs procedures 2.4.4 Causes of existing limitations Firstly, the cause belongs to the State: - Awareness of the ministries, departments are incomplete and keep up with the requirements of international cooperation... with the goal "to switch from manual customs procedures to electronic customs procedures" 2.3.2 Status of modern customs standard application in the process of Vietnam electronic customs procedures development since 2005 Based on the legal conditions, the resources, the level of response to national information technology, customs initially applied some modern customs standards in e- customs procedures