What is customs declaration? What are the pros and cons of electronic customs declaration?

Electronic customs declaration is the process of declaring goods and clearing goods of enterprises. Currently, the form of electronic customs declaration is very popular in Vietnam. To better understand customs declaration and the pros and cons of the electronic declaration method – the most popular declaration form today, let’s learn more about SSR Logistics in the following article! 

What is Customs Declaration? 

What is Customs Declaration? 

Customs Declaration, also known as Customs Declaration, is a mandatory document that must fully declare detailed information about import and export shipments. This declaration is provided by the cargo owner or vehicle owner when importing and exporting goods in and out of Vietnam. 

This is one of the important steps when a business wants to import and export goods. If customs declaration is not declared, import and export activities will be suspended. 

Today, businesses often declare customs declarations by using software for electronic declaration, in which the ECUS5VNACCS system of Thai Son and the FPT.TQDT software of FPT is often chosen by businesses. 


Thai Son’s ECUS5VNACCS electronic customs declaration software

After the declaration, Customs will return the green channel results. Businesses need to print declarations along with documents for customs clearance. 

What is Customs Declaration Service? 

The Customs Declaration Service supports businesses in declaring customs procedures for imported and exported goods. 

Specifically, the customs declaration service includes: 

  • Consulting and guiding businesses on customs declaration procedures. 
  • Collecting, checking documents and documents related to imported and exported goods. 
  • Declaring indicators in customs declarations, declaring customs values, determining codes, tax rates, etc. for shipments on behalf of businesses. 
  • Submit electronic declarations to the Customs system. 
  • Handle clearance procedures and release goods. 
  • Resolve any issues arising during customs procedures. 

Thus, the customs declaration service will help businesses save time and costs, while ensuring accurate implementation of declaration and clearance procedures for goods.

How to declare electronic customs declaration?  

Customs declaration forms in Vietnam 

There are currently 3 common forms of customs declaration: manual declaration on paperwork, electronic declaration, and automated declaration.  

  • Manual declaration (Paper-based customs declaration) is the traditional method, declaring information on paper forms and then submitting it to the Customs agency.  
  • Electronic customs declaration: This form uses electronic declarations on the Customs system, which is more convenient and faster so it is favored by many businesses.  
  • Automated declaration (Automated customs declaration) uses software that connects directly to the warehouse system, customs information system to automatically declare, reducing errors but requires high initial investment costs.  

Additionally, Vietnam Customs also applies some other modern declaration methods such as air waybill declaration, automated seaport declaration (e-sea waybill), and social media customs declaration (e-commerce). 


Electronic customs declaration 

Basic contents of the Customs Declaration 

The customs declaration consists of 8 main information sections:  

  • Section 1 records basic information such as declaration number, verification code, form type, registration date.  
  • Section 2 declares importer and exporter name and address.  
  • Section 3 lists details of shipment, means of transport, import/export time, etc.  
  • Section 4 records commercial invoices and value.  
  • Section 5 calculates tax and tariff. The system automatically generates after entering goods.  
  • Section 6 is for the Customs system to return results.  
  • Section 7 notes any declaration notes.  
  • Section 8 lists a detailed goods list.  

Fully declaring information in each section is mandatory for smooth customs procedures. 

Pros and Cons of Electronic Customs Declaration 

Electronic customs declaration brings many benefits and convenience for importing and exporting enterprises.  

Regarding advantages, electronic declaration significantly saves time and costs for businesses, especially small and medium enterprises. Instead of having to personally carry paperwork and documents to customs agencies, businesses can now complete all procedures with just a few clicks on the computer in their office. This greatly reduces human resources, time, travel costs and indirectly enhances work productivity.  

Additionally, the electronic declaration system also brings high transparency and accuracy to declared information thanks to the close supervision of customs agencies. Goods clearance and handling processes are also greatly shortened. These are very major benefits for import-export activities.  

However, along with advantages, the electronic declaration also poses certain challenges for businesses.  

Firstly, digitizing declaration procedures requires staff to have IT skills and be proficient at using technology. Especially, supporting declaration software has many complex features that require users to be thoroughly trained. Lacking skills, businesses are prone to mistakes leading to violations of customs procedures.  

Secondly, network security always contains many potential risks. Businesses need to fully equip all solutions to prevent viruses, malware and hackers to ensure declared data is not stolen, faked or leaked externally.  

Thirdly, to maintain smooth electronic declaration systems, related parties also need major investments in IT infrastructure and human resources for operations. This will cause initial financial pressure for both businesses and related agencies, especially in developing countries.  

Thus, both sides need to be ready regarding infrastructure, human resources and finance to successfully implement electronic declaration for the highest efficiency. 

SSR Logistics’ Customs Clearance Services

With over 15 years of experience in customs clearance services and nearly 1 million successful declarations, SSR Logistics is proud to be the leading provider of prestigious and high-quality customs clearance services in the market. 

Unlike many newly established companies, SSR Logistics has a team of highly experienced experts who have a deep understanding of all customs regulations and procedures. With an error rate close to 0%, SSR Logistics always ensures accurate and fast declaration to help customers maximize time and cost savings. 

In addition, with a modern warehouse system and an experienced transportation team, SSR Logistics also provides a variety of accompanying services such as: warehouse leasing, domestic transportation, international transportation by sea and air, and international express delivery. 

With devotion and high responsibility, SSR Logistics is confident it can meet all the stringent requirements of customers, delivering a world-class import-export service experience. 

The above article explains what a Customs Declaration is and how to declare an electronic customs declaration. Hopefully, it gives you an overview of customs declaration. See more articles in our Logistics Knowledge section. 

If your business still has difficulties with customs declaration procedures. Please get in touch with us, SSR Logistics, for a free consultation on customs declaration procedures or to learn more about our customs declaration service here. 

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