Electronic Customs Declaration – Things You Need to Know

Electronic customs declaration is a modern solution that helps businesses save time and costs and increase transparency in import and export, but it still carries risks of technological dependence, hard-to-detect errors, and the potential for fraud.

What is electronic customs declaration?

It is the process by which businesses declare goods information through a software system connected to the General Department of Customs (VNACCS/VCIS) instead of submitting paper documents.

Benefits of electronic customs declaration:

• Time saving: Declarations are processed in just a few minutes, and the classification results are available immediately, allowing for proactive scheduling of delivery and receipt.
• Convenient 24/7: Declarations can be made from anywhere with internet access, even outside of business hours.
• Cost reduction: No need to print many paper documents, reducing the cost of permanent personnel at border crossings, saving up to 30% in operating costs.
• Transparency and accuracy: The system automatically checks and rejects incorrect data, minimizing document errors.
• Reduced pressure on customs authorities: Less direct contact, reduced congestion at border crossings.

Disadvantages and Risks

• Technology dependence: If the VNACCS system is interrupted or the internet fails, the entire process is halted.
• Difficulty for new users: Requires a thorough understanding of the process, accurate HS code classification, and system error handling.
• Difficult-to-detect errors: Customs officers do not conduct direct inspections; errors may be detected late after goods have been exported/imported, causing inconvenience.
• Fraud risk: Some businesses exploit the system to evade taxes or provide false information.

Mr. Ho