Directive No. 02/CT-BTC on Accelerating the Progress of Administrative Reform and Modernizing the Customs Sector for the Period 2009-2010

DIRECTIVE

On Accelerating the Progress of Administrative Reform and Modernizing the Customs Sector for the Period 2009-2010

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In recent times, the Customs sector has made significant efforts to implement the plan for administrative reform, development, and modernization of the Customs sector for the period 2008-2010, as stipulated in Decision No. 456/QĐ-BTC dated March 14, 2008, issued by the Minister of Finance, and Directive No. 04/2008/CT-BTC dated December 15, 2008, issued by the Minister of Finance on accelerating reform, modernization, and preventing harassment, abuse, and corruption within the Customs sector. The implementation process has yielded positive results: customs procedures have become simpler and more convenient, initially standardized according to international standards and practices; risk management has been initially applied in customs procedures; post-clearance inspections have been intensified; information technology has been widely applied in customs operations; awareness among customs officials about reform and modernization has increased; businesses and public opinion have shown support and active participation.

However, compared to requirements, the achieved results are still not high: some regulatory documents guiding customs procedures are overlapping and contradictory; some operational procedures are outdated and complex, not closely linked with each other, and their application is inconsistent at different locations; the actual inspection rate of goods remains high; technical equipment serving customs inspection and supervision is outdated and slow to be equipped; the application of information technology in customs operations still faces many difficulties; a portion of customs officials still cause harassment and abuse while performing their duties.

The main reasons leading to the above situation are due to the lack of organization and implementation within the sector; some leaders at various levels in the sector have not paid sufficient attention and lacked decisiveness in directing the implementation of reforms and modernization; some officials are reluctant to innovate and have not participated in modernization activities; supervision and inspection work at grassroots units still face many difficulties; discipline, ethics, and professionalism of some officials have not been improved; management of staff at grassroots units is sometimes lax, lacking thorough inspection or resolute struggle against violations; handling of violations, especially those involving responsible leaders, has not been strict enough.

To accelerate administrative reform and modernize the Customs sector in accordance with the spirit of the Resolution of the regular meeting of the Government in May 2009 and the directives of the Prime Minister, the Minister of Finance requests the Customs sector to implement the following key tasks:

1. Promptly review all regulatory documents concerning customs procedures and customs management processes; specifically identify documents that need to be abolished, amended, or supplemented to present to the competent authority for issuance in order to simplify procedures, shorten customs clearance time, facilitate import and export goods for businesses, and ensure the management requirements of the Customs authorities.

Initially, it is necessary to review the inconsistencies and unsuitability regarding customs procedures, customs inspection and supervision, and tax management in the following documents: Circular No. 79/2009/TT-BTC dated April 20, 2009, guiding customs procedures, customs inspection and supervision, export taxes, import taxes, and tax management for imported and exported goods; Circular No. 116/2008/TT-BTC dated December 4, 2008, guiding customs procedures for goods processed by foreign traders; Circular No. 85/2009/TT-BTC dated April 28, 2009, and other related documents issued by the Ministry of Finance or other ministries and sectors; Develop and submit new documents (or amendments) to the competent authority to address issues and obstacles in the aforementioned documents by September 2009; develop and submit documents on customs procedures suitable for high-tech enterprises and enterprises requiring special priority...

2. Intensify customs reform and modernization

a. The Customs sector should focus on researching and developing plans for development aligned with national, regional, and sectoral development plans; clearly defining long-term management and organizational models.

b. By the end of 2009 and in 2010, implement electronic customs procedures at provincial and city Customs offices: Hai Phong, Ho Chi Minh City, Dong Nai, Binh Duong, Lang Son, Hanoi, Da Nang, Ba Ria-Vung Tau, Quang Ninh, and other Customs offices if they meet the conditions.

Focus on expanding remote customs declaration at all provincial and city Customs offices, increasing the proportion of remote declarations nationwide to 80% in 2009 and over 90% in 2010, implementing electronic customs declarations no later than September 2009 for at least nine Customs offices implementing electronic customs procedures.

Implement the project of monthly tax and fee collection through commercial banks at nine provincial and city Customs offices implementing electronic customs procedures and other Customs offices with appropriate conditions.

Implement the project "Upgrading Information Technology Infrastructure of Ho Chi Minh City Customs Office" as a basis for applying centralized processing models throughout the sector. Quickly upgrade WAN connections for customs units to ensure sufficient bandwidth and backup routes for expanding electronic customs clearance and centralized processing models at the office level. Conduct a comprehensive evaluation of the overall security system of the entire sector, then design detailed systems, security policies, and appropriate implementation schedules for the period 2009-2010 and beyond. Design and build a centralized data processing center for the entire sector as a backup center for the Customs sector.

c. Focus on perfecting technical solutions, improving the quality of risk management application, meeting management requirements, facilitating operations, reducing costs for businesses; while strengthening post-clearance inspection work to proactively identify and rectify errors and loopholes in the clearance process:

- Issue guiding documents and implement technical solutions to uniformly apply risk management techniques in customs procedures;

- The Director of the Provincial/City Customs Department shall directly direct and be responsible for building, managing, operating, and inspecting the risk management system according to the分级管理的总署规定；对辖区内风险管理评价的质量和效果、检查形式和程度以及在办理海关手续过程中的检查执行负责；安排、培训和使用专门从事风险管理的人员，朝着专业化方向发展；

- Strive to reduce the actual inspection rate of imported and exported goods to below 20% by the end of 2009, with 70% of inspected consignments based on risk management criteria; increase the proportion of consignments classified into the green channel; improve the quality of actual inspections of goods.

d. For key areas with large volumes of imported and exported goods, implement: working with relevant agencies and units; establishing mechanisms and regulations; investing in or rearranging to clearly define the scope and location of centralized inspection sites at some major ports; gradually equipping modern inspection and monitoring equipment such as scanners and cameras at centralized inspection sites. Develop and apply modern, integrated management processes that link all stages of customs procedures based on electronic customs procedures and information technology applications. In 2009, focus on implementing in key areas under provincial/city customs departments: Ho Chi Minh City, Hai Phong, Ba Ria-Vung Tau, Quang Ninh, Da Nang, Dong Nai, and Binh Duong.

The Customs Sector needs to find solutions to accelerate the implementation of the "Customs Modernization" Project within the framework of the World Bank Project, particularly in terms of reviewing and redesigning the overall customs procedure process and investing in modern information technology systems, which meet both the requirements of automating customs procedures and implementing the single window mechanism that the Government has committed to in ASEAN.

To quickly, accurately, and effectively implement the above tasks, assign the Director General of the General Department of Customs to lead and direct: wide area network connection of the Customs Sector; tendering for software development and upgrade services to support customs procedure reform; deploying the authentication system (CA), connecting with public CA organizations, using digital signatures (PKI) for electronic customs transactions; developing plans to connect with commercial banking systems for tax and fee management of imported and exported goods; proposing incentive mechanisms to encourage enterprises to participate in electronic customs procedures.

The Director General of the General Department of Customs shall cooperate with relevant units under the Ministry to study and propose solutions to resolve difficulties in implementing regulations on investment procurement decentralization in the Finance sector.

3. Strengthen inspection and supervision work and business activities:

a. Increase guidance on supplementing the 2009 inspection and supervision work plan, linking it with surprise inspections in business activities at customs units, focusing on registration departments; price and tax management; actual goods, luggage, and vehicle inspections; anti-smuggling surveillance and control at customs branches.

b. Build plans to implement government and Ministry of Finance directives on anti-corruption, discipline improvement, strict handling of harassment, inconvenience, and negative behavior, and severe punishment of violations by customs officials and civil servants.

c. Promptly review and build work procedures and rules, clearly defining the responsibility of unit leaders at all levels where there are law-violating officials and imposing strict disciplinary measures for each violation; issue rotation rules for officials and civil servants working at border gates; enhance training capacity for officials and civil servants in the sector; supplement office management rules and regulations on the use of technical means to assist in supervising duty performance; raise awareness, organize training, and strictly follow conduct guidelines for officials and civil servants in the Customs Sector.

4. Implementation organization

The Director General of the General Department of Customs shall issue instructions and implement detailed plans in the Customs Sector, specifying activities, main units, cooperating units, and implementation schedules.

Leaders at all levels in the Customs Sector shall cooperate with local Party committees and related agencies and units to organize specific implementation measures. Strengthen business guidance and internal inspections from units under the General Department to local customs departments, and from department and branch leaders to subordinate customs branches and units.

Units under the Ministry of Finance shall have the responsibility to coordinate and support the General Department of Customs in effectively implementing the tasks set out in this Directive.

During implementation, the General Department of Customs shall regularly check progress and report to the Minister of Finance every three months on the implementation status of this Directive.