Businesses complain about automated customs-clearance system Many enterprises complain that their businesses have had problems because of the automated customs clearance system.   Samsung Vina got an AEO (authorized economic operator) certificate on May 23, 2014, a recognised quality mark that indicates the business’s role in the international supply chain is secure, and that its customs controls and procedures are efficient and compliant. However, the certificate, compared to a “priority card” at customs agencies, does not help deal with customs procedures. Ho Huy The, head of the import-export division of Samsung Vina, complained that a lot of problems have arisen over the last several months, since the day the VNACCS/VCIS began (Vietnam Automated Cargo Clearance System/Vietnam Customs Intelligence Information System). The enterprise was forced to stop customs procedures for three days because it was found that it was 90 days late in tax payments, though it prove that there were errors with the customs information system. “Troubles always occur with the customs agencies’ network, but the problems cannot be settled within the day,” he said. “As a result, we could not make customs declaration for our imports and exports.” In order to clear goods, Samsung Vina asked the customs agencies to allow it to make customs declaration manually, but the proposal was refused. “The tardiness in customs clearance has not only caused material damages, but also affected the company’s competitiveness,” he complained. Au Anh Tuan from the General Department of Customs (GDC) admitted that errors sometimes occurred due to late updates. In the case of Samsung Vina, he said the customs system on July 23 found 19 out-of-date customs declarations. He promised that if Samsung Vina presents necessary documents, the system will update the information about the enterprise. In the past, local customs agencies were authorized to make decisions on some issues. However, with the new system, everything must go through the GDT, so enterprises have to wait for GDT’s decisions. Tuan said GDT is going to issue a new document to allow enterprises to make customs declarations manually, if the electronic system has problems. A representative of Timatex Vietnam also said the company has suffered from VNACCS/VCIS. The company is taking legal proceedings against the HCM City Taxation Agency for the agency’s wrong decisions on forcing the company to pay the contractor withholding taxes of $2.8 million for the 2009-2012 period. The trial has not begun yet, but the customs agency has blocked the enterprise’s account and posted a notice on the agency’s website that the enterprise is no longer operational, but the procedures to close the tax code have not been fulfilled. As VNACCS/VCIS automatically updates the information about the enterprise’s tax code, the company cannot import or export goods to fulfill the contracts it signed. As a result, the 20 trucks it rent to carry goods have been left idle, while exports cannot be cleared. The company’s tax code was later activated, but the system did not update the information, which made it impossible to fulfill procedures to export goods until July 7. TBKTSG