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Formulating a consistent and unified legal framework for risk management

19:08 | 10/06/2019

VCN- The establishment and issuance of a Circular regulating risk management in customs operations ensures a complete, synchronous, uniform legal framework in accordance with modern and reform requirements that facilitate and controlcompliance with the law in managing import and export activities.

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Assessing the compliance of enterprises deciding on measures and methods of customs inspection. In the photo: Customs officials of Mong Cai border gate, Quang Ninh checking import and export goods. Photo: Q.Hung.

The comprehensive control of risks

According to latest statistics from the General Department of Customs on the application of risk management, among more than 1 million export and import declarations arising in April 2019, there were 58.51% of green flow declarations, 36.57% of yellow flow declarations and 4.92% of red flow declarations. By inspection, the Customs force detected and handled 1,754 violations through screening, of which 1,428 violations were handled inorganizations and individuals; 326 cases of derelict goods; 2,184 declarations of violations. In addition, the whole industry has conducted a total screening of 3,638 containers, reaching 21.2% compared with the plan, 96 containers suspected (accounting for 2.64% of the total number of screened containers).

In fact, the complianceassessment has met the requirementof reforming and modernization process of the customs industry, transforming the management method from controlling each transaction to supply chain management, based on the compliance level of the business. The compliance assessment has effectively supported and closely linked withrisk management with the aim of facilitating and controlling law compliance of enterprises. This makes an important contribution to improving the quality and efficiency of customs management. The risk management measures and techniques are implemented synchronously and uniformly to ensure comprehensive control of risks in the customs fields. These supportedfor the classification of flow, deciding of customs inspection and customs supervision, post-clearance audit.

Recently, the legal framework and operational risk management system are completed, meeting the requirements of deep implementationof risk management in customs operations. Activities of collecting and processing information have become a field of basic operations, organized and strengthened in the direction of professionalism and specializationin operations, forming a focal unit to coordinate this work within the whole industry. The operational management of information systems for risk assessment and classification including: VCIS system, business records, infringing information; risk profile; E-manifest information system; Compliance assessment, risk assessment of enterprises.

Formulating group of risk management documents

At the online conference to discuss the draft Circular on regulating risk management in customs professional activities held over the weekend, acting as the Head of risk management Department (General Department of Customs) Mr Nguyen Nhat Kha said whenthe Circular on risk management in customs operations is issued it will be publicly announced. Along with the formulation of this circular, the department is building two decisions including guiding circulars and guiding all customs operations.

Mr. Nguyen Nhat Kha also said that in the Circular on risk management in customs operations, the implementation and application of risk management activities atall stages (before, during and after customs clearance) is more clearly defined, from customs inspection to customs supervision, transportation of goods on the road.

On the other hand, the Circular also assesses the compliance of enterprises, which is considered an important measure when we design risk management activities. Assessing the level of compliance of the business will be combined with information related to goods and routes, giving the level of risk.Thus the Customs agency takes measures and methods of inspection.

The establishment and issuance of a Circular regulating risk management in customs operations to ensure the legal basis for implementing the Customs Law 2014, Decree 08/2015/ND-CP, Decree 59/2018/ND- completed and unified regulations on risk management, in accordance with the requirements of reforming and modernizing, facilitating import-export enterprises and controlling law compliance in managing import and export activities. Along with that, it helps us implementsystematic and effective risk management in the stages of customs operations, actively supporting electronic customs procedures. At the same time, the task of collecting information, analyzing and assessing risks is developed at the same level, fully meeting the requirements of customs operations; ensuring proactive prevention, detection and prevention of risks of customs law violations.

By Quang Hung/Quynh Lan