E-Customs Project The Government E-Customs Clearance System FPT Information System Corporation presents 1

Contents 1. Synopsis of Project 2. Innovation and Implementation 3. Achievements

Project Synopsis General view of the Vietnam Customs Procedures: Manual, complicate and inconsistent in all provinces Lack of transparency, not facilitate for the import and export business Declaration form: Paper-based IT Application: Infrastructure: inconsistent and outdated technology IT management level is not high and different among provinces Business applications are built based on old technology background, which are very dispersed and difficult to integrate with each other. Lack of openness to connect and communicate with related agencies (tax, treasury ...) Management: There is not management tool for comprehensive control Passive, not apply the risk management form Leaders could only get information from general report

Project Synopsis Project name: Building and deploying the Electronic Customs Clearance System (E-Customs) for Vietnam customs Scope of Work: Implementation of deploying from pilot to nationwide, to modernise the customs process and infrastructure. Phase I (2005-2010): Pilot implementation Phase II (2011-2013): Official implementation nationwide (roll-out deployment)

Project Synopsis Detailed targets for Phase II (2010-2013) Receiving full customs profiles and attached documents in electronic and XML message format following WCO standards Receiving customs declaration data centrally at Customs department level, ensuring data is received and processed 24/7 Automated business processes such as selectivity, checking and giving feedback, to replace manual work and to shorten customs clearance time Expanding the deployment of e-customs clearance system nationwide

Synopsis of E-Customs System Receive XML message format following WCO standard Customs Officer Customs Broker Import/Exporter Export/Importer Customs Brokers Receiving Auto Process Selectivity Declaration Checking Goods Checking Tax obligation Checking Customs Reconciliation Utility function Profile Completion Checking ………. Statistic Report System Administration Framework Communication Network Window Services Security Database (SQL 2005/2008) Policy / Standard / Process / … COM/COM ++ Web Services Form the customs application environment electronically between Customs Dept - Business (G2B) via Internet Receive the customs documents following the WCO standards (customised) Ability of receiving and process data automatically 24/7 05 modules and more than 200 functions to meet business requirements Multi-tier designed Ability of intergration with other systems Ability of easy opening and upgrading Built on the technology platform compatible with the Vietnam Customs infrastructure

Synopsis of Product Overall model in relation with other business systems Front-End System: To receive declarations of enterprises Process professional businesses and customs clearance of goods Back-End System: Provide information support for Front-End system and process other professional businesses Related System: Customs declaration Software Software for information exchange with the Tax agency, the Treasury, Banks ...

Advantage/Uniqueness Citizen Improving the transparency, efficiency and access to information exchange Reform the Customs adminitrative procedures Government Leadership Assist in the management, direction and management leaders at all levels Officers To raise the level of professionalism and business profession Enterprises Application of modern and flexible technology, approach WCO standards Technology Active in im-export activities, save cost and time

Advantage/Uniqueness Items Traditional Customs E-Customs Declaration Form Apply on papers Apply on electronic form into the computer systems Declaration Method Submit the application directly at the customs departments Application submit to the Customs system via Internet Form of Information Processing Customs officers directly process the comparison and checking the accuracy and consistency of content declarations on paper records The E-Customs system directly checks, collates and processes automatically or semi-automatically to the information criteria Feedback Form Face to face checking & feedback of both the customs officers and businesses Electronic information processing, direct feedback on the IT systems of the declarants by electronic messages

Advantage/Uniqueness Simplify customs procedures Reduce 50% in the number of documents submitted to Customs Departments Save up to 20% per year in expenses for import-export companies Improve transparency and ensure equality in processing customs procedures Reduce customs clearance time Green line declaration form: 3-15 mins (reduce up to 5-10 mins) Yellow line declaration form : 10-60 mins (reduce up to 20-30 mins)

Quality There are 10 out of 12 import-export business categories are applied the e-customs procedures according to the Circular 196/2012/TT-BTC of Ministry of Finance. 34/34 Departments of Customs have been deployed and implemented the e-customs procedures (100%) Over 59,000 businesses participating the e-customs procedures (93%) with more than 4.4 million electronic customs declarations (accounting for 87%) of the total number of declaration application Turnover done by electronic customs procedures reached 214.53 billion U.S. dollars accounting for over 95% of total national imports and exports (2012)

Development Made by FPT- IS : building and deploying To be continue... E-Customs Phase I (2005 - 2010) E-Customs Phase II (2011 - 2013) E-Customs (since 2013) PILOT DEPLOYMENT - Pilot deployment of E- Customs - Initially apply the risk management in the Customs field - 2 pilot Customs Depts: Hai Phong, Ho Chi Minh NATIONWIDE DEPLOYMENT The systems is upgraded and expand the deployment: - Receiving applications - Centralised processing 24/7 at General Department/Department level - Automate the business processes - Expand the deployment of e-Customs nationwide OPERATION & SUPPORT System Operation Support and solve raising situations DEVELOPMENT - Building the centralised system at General Department level Standardise data criteria and business form to the world standards Intergrate with the NSW Intergrate and information exchange with the VNACCS/VCIS

Recognition In November 2011, FPT IS received a Certificate of Merit from the Vietnam’s Ministry of Finance for ​​outstanding contributions in implementing e-customs procedures.

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