Development orientation for customs brokerage agencies
25/10/2016
Vietnam Customs has lately carried out fully innovation programs of modernization and has received appreciation from the business community.
Customs brokerage agencies: a stretching arm of the Customs
Developing Customs Brokerage agencies (CBAs) is one of biggest targets in procedures of modernization and innovation by Vietnam Customs. The question is why customs brokerage activities have not yet developed although there has been recognition of them since 2005 by the Customs Codes 2005. There are various reasons for it: import- export businesses have not had the habit of using customs brokerage; there have been no clear incentives for cases of clearance by customs brokerage agencies… One main reason is its quality: customs brokerage services has had limits and thus, not been able to attract import- export businesses.
Services related to customs and clearance procedures are indispensable parts of logistics supply chain. In the Resolution No.19/2016 dated April 28th, 2016 about duties, solutions for improving business environments, national competition in 2016-2017, orientation to 2030 with the target of reducing paperwork, saving time and cutting costs in implementing administration procedures in the field of import- export, percentage of import consignments that go through customs inspections in clearance process will have to reduce from 3035% currently to 15% at the end of 2016, and there will be innovations in procedures of management, inspection on the basis of risk management principles and law compliance levels.
CBA is considered a stretching arm of customs. It will be easy to reach the target of innovation and modernization if CBAs have enough both quality and quantity. Therefore, they should upgrade their quality to meet needs of import- export from businesses so that they can contributed in Vietnam Customs’ process of innovation and modernization.
Development orientation
CBAs should upgrade their service quality more to meet the needs from import- export businesses at the highest level: improvingtheir financial abilities in order to compensate their customers in case of failures; having training sessions as workshops, talks and conferences. They have to stay by customers’ side to suggest functional agencies to adjust, or modify policies and regulations to facilitate import- export activities.
CBAs should improve their prestige for customers’ credits. Import- export businesses are not used to customs procedures, do not have enough knowledge about regulations on import- export, especially paperwork, import-export conditions and import- export taxes. Prestige on service abilities is initial condition to be considered when they have intention to use CBAs’ services. CBAs can ask for help from customs offices in training of customer relationship.
CBAs should improve their facilities, technologies and promote their images to import- export business communities. Import- export businesses are not regularly use CBAs’ services for they are currently not used to using CBAs’ services and CBA’s promotions and marketing activities are limited, compared to other regional and international countries. Besides, CBAs should invest in modern IT system to connect themselves to customs offices’ network for clearance procedures in the situation that the National Information Gateway has been formed, been in the process of improvement, and will come to be used in the coming time. According to Resolution 36A in 2015, E-Government in national will be carried out for all national administrative process.
CBAs should invest in and improve transport abilities so that they can actively carry out package services themselves without being dependent on other transport units to make sure on-time delivery, to cut costs and to improve competition abilities.
CBAs should form an association of CBAs. It will on behalf of its member to work with the State’s import- export management offices, among which are customs offices. One of the most effective way is to provide information about newly issued regulations on import- export and customs and clearance procedures. These activities will help CBAs update their abilities.
Supports from Customs offices are of importance to upgrade service quality of CBAs. Customs offices should support them by regular updating newly issued regulations related to import- export; have training in customs declarations and automated clearance programs for their staff; and should listen to ideas from them in processes of innovation, which will help CBAs gain trust from import- export businesses and upgrade their own abilities.