Creating solutions to improve knowledge and management of customs finalization reports

With the desire to create and build value solutions, specifically improving the knowledge and capacity of customs finalization reports management to support enterprises, on July 13th, InterLOG and Vietnam Industry Supporting Alliance (VISA) coordinated to organize a seminar "INPUT AND OUTPUT INVENTORY - RISK MANAGEMENT IN CUSTOMS FINALIZATION REPORTS - The Solution Of Data Management And Internal Coordination In Enterprise" with the companionship of the Center for Supporting Industry Development of Ho Chi Minh City (CSID), related organizations and partners.

The seminar took place in the Management Board Hall of the Hi-tech and Da Nang Industrial Park, Lot A17, Central Street, Hoa Lien Commune, Hoa Vang District, Da Nang Province, as well as combined with a webinar on the Zoom platform with the participation, sharing and consulting of representatives of Customs, VISA, InterLOG, and industry associations and more than 500 businesses/individuals working in the logistics/supply chain ecosystem customs in Vietnam.

In particular, the customs finalization report has been very familiar to manufacturing and processing enterprises since Circular 39/2018/TT-BTC was issued on April 20, 2018, on “Reporting the final settlement report on the use of imported raw materials and supplies and exported goods” takes effect and the inspection by the customs authority is increasingly strict.

According to the seminar "Bill of material in the customs finalization report" survey (March 2022), the data shows that nearly 40% of enterprises are interested in the criterion of "data management" import-export and internal coordination" in the customs finalization report.  Thus, they proposed the next training topic for the program series "Risk Management in Customs Finalization Report".

However, some enterprises have not paid due attention to the coordination of activities between departments whose data is directly related to the customs finalization report during production activities. The sharing of information, data comparison, inventory of input and output data between the documents on the books and the actual data on the enterprise's tracking system, and the data declared on the VNACCS/VCIS customs system is not synchronized or the warehouse parts, accountants often do not keep track of the details of separate materials by source (tax-free, taxable, purchased with VAT invoice) which is the cause of the use of imported tax-free materials wrong purpose.

Thus, causing misleading errors in the process of building and comparing input-output inventory data that are common in enterprises: Enterprises cannot classify raw materials sources, departments do not share information to check and calculate the exact actual norm; deviations in the process of synthesizing data in each department (import-export, warehouse, accounting) and between departments, between enterprises and customs authorities, etc.

With the above errors, when the customs finalization report has discrepancies and cannot be explained, the enterprise will be taxed and administratively sanctioned from 10-20% of the total fixed tax amount, penalties for late tax payment, and at the same time being assessed as high risk, import and export declarations are classified into the red channel, increasing customs clearance time and costs for businesses.

Based on this situation, the representative of the Customs authority and experts in the customs finalization report have an in-depth focus on guiding the import-export department - the level in charge of implementing the reports on knowledge, experience, and solutions to manage input and output risks. 

Moreover, the solutions for data management and internal coordination help businesses understand and properly implement this criterion.

Assessing the importance of import and export activities in the customs finalization report, Mr. Cao Van Nhan - Head of Management Supervision Department of Da Nang Customs Department claimed that "Enterprises need to actively capture relevant information related to the provisions of the law on the input-output  inventory of reports, actively apply them in practice, and minimize risks in the process of operation to ensure credibility and financial resources."

Mr. Phan Hai Trieu - InterLOG's Customs Procedures Consultant recommends: "Manage import-export data and coordinate internally, share information and share data related to customs settlement reports between departments is one of the essential criteria; the difference in data of raw materials - finished products - scrap - waste products of each part; between departments and between enterprises and customs authorities is greatly common.

Because of the importance of managing import and export data in the customs settlement report, InterLOG cooperated with the VISA alliance to organize this seminar to raise awareness and share risk management solutions that are effective. Accordingly, businesses will minimize the difference errors to the lowest level, avoiding unnecessary risk costs.

Therefore, improving knowledge, management as well as the ability to handle and manage import - export - exist risks in the management statements for enterprises is critically necessary."

Representative of the organizing committee, Mr. Ngo Ngoc Khanh - Permanent Vice President of VISA expressed: “As an alliance with the mission of accompanying businesses to improve supply chain management capacity, creating competitive advantages and offer solutions to connect between businesses, especially in management and limit risks in customs finalization reporting, VISA and InterLOG organized a seminar with the desire to connect businesses, and create conditions for the Customs to interact and directly answer enterprises' questions about input-output management in the customs finalization report, contributing to the formation of Vietnam's industrial ecosystem, supporting members grow together.”

At the end of the seminar, the participating enterprises, especially the personnel directly working or related when making the final settlement report, highly appreciated the knowledge and experience from the speakers, experts sharing and sending thanks to the program organizers for bringing useful information to businesses.

The seminar "The input-output inventory risk management of customs finalization reports - The solution of data management and internal coordination in the enterprise" belonging to the Customs Finalization Report 2022 series event, which is a successful continuation of two previous events "Customs settlement report for business leaders" (12/2021) and "Risk management when building norms in customs settlement report" (March 2022) were organized by InterLOG, Visa, and organizational partners. These two events also attracted the participation of nearly 1000 businesses/individuals, who are leaders and managers of companies with activities related to import-export and related fields.

As a company specializing in providing logistics services and consulting comprehensive supply chain solutions with more than 17 years of experience, InterLOG focuses on the segment of FDI enterprises and domestic and foreign import and export factories. The development of solutions in conjunction with the VISA alliance in a series of activities for businesses in the industrial sector is affirming InterLOG's social responsibility to the industry community, contributing to raising awareness and management capacity of finalization reports for enterprises.