Proposal to Simplify Customs Procedures for Low-Value E-commerce Goods

A proposal has been made in Vietnam's National Assembly to simplify customs procedures for low-value goods transacted through e-commerce, particularly those involved in cross-border transactions. This suggestion stems from the recognition that current stringent procedures, similar to those for traditional land and sea cargo, are not suitable for the rapid circulation needs characteristic of e-commerce. Ms. Trần Thị Hiền, a National Assembly deputy from Ninh Bình, voiced this proposal during a discussion on the draft amendments to the Customs Law on August 3rd. She highlighted that a significant portion of e-commerce goods, while individually low in value, are traded in vast quantities, necessitating rapid circulation. She expressed concern that applying traditional customs procedures could lead to bottlenecks at border crossings. Ms. Hiền advocated for the introduction of management methods tailored to e-commerce goods, grounded in risk management and the application of information technology (IT). Specifically, she suggested that implementing simplified electronic customs procedures would prevent clearance delays and facilitate cross-border e-commerce. Furthermore, she proposed that electronic identity verification should either be limited to transactions exceeding a certain value threshold or allowed indirectly through payment systems (banks, e-wallets) to reduce compliance costs for businesses and individuals. Ms. Phạm Khánh Phong Lan, Director of the Ho Chi Minh City Food Safety Department, also supported establishing principles for low-value e-commerce goods and called for clear definitions of what constitutes a low-value item. She further suggested introducing a mechanism, similar to practices in some countries, where businesses could provide a guarantee deposit to temporarily retrieve goods, addressing issues of cargo detention due to lengthy dispute resolution processes. Mr. Nguyễn Minh Đức, Deputy Chairman of the National Assembly's Committee on Defence and Security, commented that the current draft, which allows for both electronic and paper documents, does not strongly promote digitalization. He proposed that customs declarations and supporting documents should be submitted electronically by default, except in four specific cases: IT system connection failures, cargo related to national defense, security, humanitarian aid, or emergency relief that cannot be integrated into electronic systems; matters involving state secrets; or when customs authorities suspect fraud or legal violations requiring direct examination of original paper documents. The draft amendments to the Customs Law are scheduled for deliberation in the National Assembly on August 7th and are expected to be voted on August 23rd.