Trade Facilitation Agreement is creating a new momentum for Vietnam’s exports

The WTO Agreement on Trade Facilitation (TFA), which just recently became effective, is seen as a golden opportunity for businesses to boost Vietnam exports and imports. It is expected that this agreement will simplify administrative and customs procedures.

In order to reduce the burden of administrative regulations and complicated cross border management, Vietnam customs has implemented multiple solutions. For instance, the customs applies simple customs clearance procedures by using information technology applications such as Vietnam Customs Intelligence Information System (VCIS) and Vietnam Automated Cargo and Port Consolidated System (VNACC).

In the previous year, the General Department of Customs also abolished 19 administrative procedures, simplified 46 procedures, reduced the number of documents in the customs dossier and allowed the enterprises to submit all documents online. All of this effort has led to more transparent procedures, reducing the time required to check documents and inspect the actual goods.

In addition, the customs reduced the requirements for dossiers of export goods, used bar codes in customs supervision, reduced the waiting time for documents to be certified and abolished some procedures on the management of outsourced and export products.

In order to implement the TFA, Ministries in Vietnam will need to coordinate to reduce the proportion of goods that are subject to specialized inspection at the customs clearance from 30-35% to 15%, transfer procedures from customs clearance to post-clearance (except for quarantine) and make use of online system for procedures inspection.

On the customs side, along with the revision of the current legal guiding documents, the Customs will improve the e-customs clearance system by upgrading the features of the VNACC / VCIS. In addition, the customs will facilitate communication with enterprises by providing clear information on the status of export and import goods that have gone through customs procedures such as C/O issuance, tax refund, bank payment, legal checking as well as their delivery status at the ports.

Sources: 1, 2

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