ASEAN customs cooperation facilitates trade

Free flow of goods

According to the General Department of Vietnam Customs, customs cooperation plays a crucial role in the establishment, development, and maintenance of the ASEAN Economic Community (AEC), as ASEAN becomes a single market and a common production and distribution base in the region, through facilitating trade, free flow of goods, and the achievement of ASEAN’s comprehensive economic integration goals.

Therefore, ASEAN has established and continuously improved important legal foundations to provide a strategic and long-term framework for customs cooperation and integration in the region.

The General Department of Vietnam Customs highlighted key results of ASEAN customs cooperation and integration. Firstly, the ASEAN Harmonized Tariff Nomenclature (AHTN), which is an eight-digit goods classification used by ASEAN customs authorities, has been built upon the World Customs Organization’s Harmonized System (HS). ASEAN member states have implemented the 2022 version of the AHTN.

Minister of Finance Ho Duc Phoc and Deputy Head of the General Department of Vietnam Customs Nguyen Van Tho attend the April 2024 ASEAN Finance Ministers’ and Central Bank Governors’ Meeting (AFMGM) in Laos

Vietnam has also completed the necessary legal documents to implement the 2022 version of the AHTN. Specifically, in December 2022, Vietnam issued a circular on the list of import and export goods in accordance with the AHTN 2022.

The ASEAN Customs Transit System (ACTS) enables businesses to transport goods freely across ASEAN member countries.

ACTS officially commenced operations on November 30, 2020, with six participating ASEAN member countries, namely Cambodia, Laos, Malaysia, Singapore, Thailand, and Vietnam. As of January 31, 2024, a total of 190 transit shipments have undergone customs procedures through the ACTS system, primarily involving Singapore, Malaysia, Thailand, and Cambodia.

As an ASEAN member country, Vietnam has actively implemented the ACTS initiative in accordance with the agreed timeline. The General Department of Vietnam Customs has closely collaborated with relevant ministries and agencies, including the Ministry of Industry and Trade, the Ministry of Transport, and commercial banks, in the provision of guarantees.

The first successful customs transit guarantee transaction through the ACTS system in the Vietnamese market took place in February 2024 through the Moc Bai Customs Sub-department in Tay Ninh Province, according to the General Department of Vietnam Customs.

Notably, the ASEAN Authorized Economic Operator - Mutual Recognition Arrangement (AAMRA) has been adopted by all 10 ASEAN member countries and entered into force on September 19, 2023.

Vietnam has approved and signed the AAMRA agreement in February 2023. The country is currently in the process of finalizing its domestic legal framework for pilot implementation according to ASEAN’s common roadmap.

Vietnam’s active participation

In recent years, ASEAN has implemented various programs and initiatives in customs cooperation to combat smuggling, trade fraud, and ensure supply chain security. The Vietnamese customs sector has actively participated in and significantly contributed to the overall results of ASEAN’s customs control activities, with the notable example being the “Operation Mekong Dragon” campaign.

This is an anti-smuggling initiative jointly initiated by the customs of China and Vietnam, with the coordinated support of the Regional Intelligence Liaison Office for Asia and the Pacific (RILO AP) and the United Nations Office on Drugs and Crime (UNODC).

The campaign operates under the mechanism of sharing customs intelligence information, including hot information and seizure information, using the secure information-sharing tool of the World Customs Organization - CENCOmm, and designated liaison points. The Vietnamese customs sector plays the role of a member of the Operational Coordination Unit (OCU) throughout the campaign.

The campaign is a collaborative effort of customs authorities in the Asia-Pacific region and has been ongoing since 2018. By November 2023, it had undergone five phases, with each phase lasting approximately five months.

Throughout the five phases of the campaign, the Vietnamese customs sector actively contributed to the compilation and dissemination of 115 alerts and five comprehensive reports on the implementation of each phase among all participating members.

During Phase V of the campaign, the Vietnamese customs sector and relevant units updated a total of 123 cases of drug seizures and wildlife trafficking incidents. In April 2024, Vietnam hosted the launching conference for Phase VI of the “Operation Mekong Dragon” campaign.

The Vietnamese customs sector has been connected to the ASEAN Single Window mechanism to exchange electronic Certificate of Origin (C/O Form D) information with nine ASEAN countries. Vietnam has also conducted trial exchanges of export customs declarations with the Eurasian Economic Union, electronic C/O information exchange with the Republic of Korea, and electronic certification exchange with New Zealand.

System connections have been completed to allow businesses and relevant parties to look up Vietnam’s e-Form D C/Os starting from August 2021 through the National Single Window Portal (https://vnsw.gov.vn).

Regarding the exchange of ASEAN Customs Declaration Document (ACDD) through the ASEAN Single Window mechanism, as of April 2024, Vietnam has successfully conducted data exchange with five countries (Cambodia, Indonesia, Malaysia, Thailand, and Singapore). Laos has not been connected to the system. Vietnam is continuing its testing phase with the remaining countries according to the prescribed timeline.

Under the rotation mechanism, Vietnam will assume the position of the chair and host the 33rd ASEAN Customs Directors-General Meeting (ADGCM) in 2024.

The ADGCM is an annual and rotating mechanism among the customs authorities of ASEAN member countries. The meeting serves as a forum for customs leaders to discuss and make decisions, provide guidance, and set directions for activities related to customs integration. The focus areas of the ADGCM include trade facilitation, customs control, and capacity building.