Bac Ninh Customs: Research on management of processing and export production enterprises according to the centralized model

(HQ Online) - Researching and developing a centralized information technology system to provide timely support and give risk warnings about businesses... is the solution that Bac Ninh Customs has set out to serve the management of processing and export manufacturing enterprises (SXXK), and export processing enterprises (EPE).

Hoạt động nghiệp vụ tại Chi cục Hải quan quản lý các khu công nghiệp Yên Phong, Cục Hải quan Bắc Ninh. Ảnh: Quang Hùng

Professional activities at the Customs Branch managing Yen Phong Industrial Parks, Bac Ninh Customs Department. Photo: Quang Hung

Difficulty in management and supervision

According to the records of Bac Ninh Customs Department, the number of import-export enterprises has increased rapidly, especially in the group of processing, production and export processing enterprises. Among the 6,500 import-export enterprises in the areas managed by the unit, there are more than 1,000 processing, production and export processing enterprises. However, in the management and supervision of customs for this type, Bac Ninh Customs Department has found inadequacies arising from legal regulations.

Regarding tax policy in Vietnam, for processed goods, export-import enterprises are enjoying great incentives such as tax exemption, non-tax when meeting conditions such as having a production facility, having machinery and equipment, meeting customs inspection and supervision conditions. However, there are no regulations on the time limit for bringing raw materials and supplies into production from the time of import or the time of processing and manufacturing goods; capital sources or conditions on the import-export value of enterprises; conditions for destruction of machinery, equipment, raw materials, supplies... leading to difficulties in implementing management, monitoring and supervision work, Customs agencies must organize monitoring and supervision of goods for a long time, depending on the needs of enterprises.

Regarding foreign trade policy, there are still parallel regulations that are difficult to distinguish in the operations of foreign-invested enterprises such as business activities under import rights and export rights requiring licensing in the Investment Registration Certificate (according to Decree No. 09/2018/ND-CP); activities of liquidating excess raw materials, supplies, machinery and equipment from production activities that do not require licensing (according to Article 26 of Decree No. 35/2022/ND-CP, Circular No. 04/2007/TT-BTM has not yet been announced to expire...) leading to difficulties in the management of the Customs authority in determining the types because there are no specific standards.

Regarding customs management procedures and measures, inspection and supervision in the Decree and Circular have been specifically regulated, but have not yet ensured strict management to prevent and promptly detect fraudulent acts of enterprises or prevent enterprises from fleeing or disappearing. Specifically, there is a lack of management regulations for the Customs authority to grasp information about enterprises selling scrap and waste products created from the production process to the domestic market (currently, enterprises issue invoices to the domestic tax authority). At the same time, there is a lack of regulations allowing enterprises to autonomously submit finalization reports according to their needs or enterprises must submit norms to the Customs authority before exporting.

Through legal research of a number of countries, Bac Ninh Customs Department found that in each country, depending on economic conditions and specific characteristics, there are separate internal regulations to manage the type of processing and export production enterprises, but the common point is that enterprises must operate in a separate area under the strict control and supervision of the Customs authority. The measure to manage production activities is the norm and must be approved by the Customs authority for use within a certain period of time; implement reporting measures with high frequency (1 month, 3 months, 6 months); apply tax guarantees if the enterprise is not located in a separate area (non-tariff area) under the control and supervision of the Customs authority.

Centralized management solution

To strengthen management, supervision and overcome the above difficulties and shortcomings in the context of certain limitations in human resources and systems, Bac Ninh Customs Department plans to restructure and rearrange management work for processing, export production and export processing according to the centralized customs model.

That is, focusing resources on performing management tasks including receiving, processing and checking notifications of production facilities, storage locations of raw materials, supplies, products, machinery and equipment; checking customs supervision and inspection conditions for export processing enterprises; collecting and analyzing business information; monitoring goods entering and leaving export processing enterprises and storage locations outside export processing enterprises; receiving, processing and checking settlement reports, checking the situation of using imported raw materials, supplies, machinery and equipment at the online monitoring department at the headquarters of Bac Ninh Customs Department.

At the same time, invest in and build an online office equipped with suitable machinery and equipment to meet customs management requirements for processing, production and export, and export processing enterprises. On the other hand, research and develop a centralized information technology system to serve the management of processing, production and export processing enterprises; provide timely support in issuing risk warnings about enterprises for civil servants to evaluate, analyze and handle immediately, support civil servants in making periodic and ad hoc reports to serve the direction and operation of the Bac Ninh Customs Department. Along with that, train and build a team of cadres and civil servants with specialized professional qualifications, professional working style, and mastery of modern technology and equipment.

Currently, Bac Ninh Customs Department is developing a tool to collect centralized business information of more than 1,000 processing, manufacturing, and export processing enterprises (it is expected that the enterprise data set will be completed by the end of the second quarter of 2024). The business information collection tool has completed the early warning function for enterprises at risk of ceasing operations when the factory lease contract or project implementation period is about to end 3 months in advance. The function of warning about abnormal business activities through the situation of electricity and water consumption; the function of warning about abnormal increase and decrease in import and export activities of processing, manufacturing, and export processing enterprises...

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