Customs broker development improve logistics competecy for exporting goods

By Hieu Tu Thanh|15/06/2023 15:26

According to statistics from the Ministry of Industry and Trade, for the first four months of 2023, export turnover goods was estimated at 108.57 billion USD, down 11.8% over the same period last year. With the general difficult of the market, can Logistics enterprises as a customs agent contribute to improving the position of Vietnamese exporter to pass the ability to deliver on time and ensure continuous delivery? Supply chain to the buyer or not?

The Government’s Customs Development Strategy to 2030 has set the goal of continuing to build and develop more professional, synchronous, modern, comprehensive and more diverse customs brokerage agent; towards implementing the recognition of priority regime for customs clearance agents. Accordingly, the customs can measure the performance and compliance of customs agents according to a set of criteria related to the activities of customs agents. However, whether customs brokers can carry out the above mission or not, they still need support not only in the management of the customs industry but also in specialized inspection agencies from various ministries.


Dragon fruit gradually lost its export position, what is the reason?

The situation of Vietnamese dragon fruit is challenged when export output has decreased for three consecutive years, while other countries such as Mexico have gained market share in the US, Canada and India are mastering the supply for the Chinese. Analyzing the experience of cultivating fruits, agricultural products in general and dragon fruit in particular, Vietnam is proud to have more experience than other countries in the region such as China, India or countries in Americas such as Mexico. Regarding the soil and quality of agricultural products, Vietnamese goods also get positive feedback. However, the difficulty of Vietnamese goods when entering the world market comes not only from tariff and non-tariff barriers in
the importing country but also from the procedures country itself.

In addition to focusing on consistent quality, product designs are suitable for buyers’ tastes and farming times; farmers have almost no time and resources to learn the procedures related to exporting goods, so they almost completely depend on local “traders”. However, difficulties related to the regulations on quarantine of agricultural products with export quality or export customs clearance representative at the export border gate are beyond the control of farmers. And finally, the remaining profit of a commodity export business is in the hands of traders or even if the goods do not meet export standards are “returned”, the farmer does not know the reason for this. improve for the following seasons.

What does a customs agent need to do to improve the position of Vietnam's export goods?
City Customs Department. Ho Chi Minh City and Vietnam Logistics Business Association (VLA) have signed a Regulation on coordination between the two parties to improve cooperation efficiency and strengthen connectivity in logistics service activities, especially for agents. Customs Administration. Cooperation between the Customs sector and VLA focuses on a number of basic goals such as guiding and supporting logistics service businesses to comply with the provisions of customs law. The addition of points for compliance acts, deduction of points for violations, warning prompts if the deduction reaches a certain level, etc., helps the Customs to monitor the activities of customs agents. At the same time, it helps customs agents to be fully aware of their compliance and consciously improve and improve operational efficiency and compliance with the law when performing customs agency services.


However, an export shipment needs to complete the procedures as well as fully meet the quality criteria required by both the exporting and importing countries to be able to successfully sell in foreign markets. Therefore, the fact that logistics service providers are customs agents currently only partially solves the process of exporting goods. Taking the case of dragon fruit, the remaining steps in the export process including phytosanitary, irradiation, fumigation, these units have to carry out procedures under the authorization of the exporter, leading to lack of initiative in providing comprehensive logistics services.

Not stopping there, the export through trades “collecting goods” also make it difficult for the customs agent units in the process of carrying out procedures if the goods do not meet the required quality. In some cases, the goods is “entangled” in the procedures performed after exporting, such as the application for certificate of original. The main reason is that current export representative mechanism is only applied when doing customs procedures such as procedures for issuing Certificate of Origin (C/O), Phytosanitary Procedures etc., leading to logistics service units, agents Customs is completely passive then receiving require from specialize agencies.


According to a survey by the Department of Customs and Trade Facilitation (VLA), there are currently nearly 13 minutes related to specialize inspection, but most of these agencies currently do not have support switchboard as well as support center. Focused focal point, answering information and question for businesses, it is thought that the steps of specialize inspection procedures for both exporter and imported goods should focus on single focal point, the customs office, in order to improve the ability to inspect and supervise synchronously as well as avoid cumbersome procedures caused by overlapping management.

Therefore, in order for the role of customs clearance agents to be enhanced, contributing to supporting import and export enterprise to clear goods faster, avoid errors and violations in the process of customs clearance. The customs agency itself needs to have a professional staff, have understanding of the equipment; At the same time, it is a reasonable mechanism to help them carry out all necessary procedures on behalf of the exporter to ensure a smooth supply chain of Vietnamese goods in the process of international integration.

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Customs broker development improve logistics competecy for exporting goods