Summary: The development of customs brokerage refers to the process of
growth and expansion aimed at enhancing efficiency, competitiveness, and brand
value in the market. In developed countries, customs procedures are conducted
through automated systems in conjunction with a professional and efficient
customs brokerage network that effectively meets societal needs. In Vietnam,
however, customs brokers have not yet operated in accordance with the true
nature of customs brokerage; instead, they primarily provide customs
declaration services on behalf of others. Consequently, customs brokers have
not fully performed their role as the “extended arm” of the Customs authority.
This runs counter to the global trend of customs brokerage development,
particularly in the context of digital transformation. The article identifies
existing legal obstacles and inadequacies through an analysis of the current
situation and practical operation of customs brokers in Vietnam. On that basis,
it offers several recommendations for improving the legal framework to create a
more favorable environment for the development of customs brokerage amid
digital transformation.
Keywords: customs broker, customs broker development,
digital transformation, legal issues
1. Introduction
Customs brokerage (CB) were formed in the early 19th century in the United States and several European countries such as the United Kingdom, France, and Spain,... stemming from the challenges of organizing and facilitating the movement of goods across national borders amid complex and inconsistent customs procedures among different countries. Along with the growth of international trade, when specialized, the provision of customs services has become an independent profession. In the stage of developing capitalism, customs intermediaries have expanded in both quantity and service quality, and become an essential link in freight forwarding, enhancing efficiency and ensuring the smooth operation of the global supply chain.
In specialized English terminology, (CB) is referred to as a “Customs Broker.” Due to differences in commercial practices and historical development, the term varies across countries: In Indonesia, it is known as a “customs brokerage company”; in the Philippines it is a “customs broker”, in China it is a “customs declaration enterprise”, in Japan it is a “customs broker”, in South Korea it is a “customs brokerage company”, in France it is an “authorized customs commission agent”, in the United States it is a “customs broker”[1]... and in Vietnam, it is referred to as a “customs procedure agent".[2]
In most countries, customs brokerage is a highly developed service within import and export activities, forming an integral part of the freight forwarding service chain that many nations have effectively applied.[3] Promoting the development of customs brokerage not only helps customs authorities address the challenges arising from the growing volume of import-export activities and limited human resources, but also assists businesses in clearing goods more quickly, avoiding violations during customs procedures, and saving costs, such as those related to personnel, equipment, and modern facilities used for customs processing. Moreover, it enhances the competitiveness of enterprises in the international marketplace.
With an important intermediary role in implementing import-export procedures, customs brokerage has been strongly influenced by the 4.0 industrial revolution, especially the digital transformation. Digital transformation is the next step of information technology development, a process of overall and comprehensive change of individuals and organizations in the way they work and produce, based on digital technologies. This is an undeniable trend in most business and service development fields today. The goal of digital transformation is to improve operational efficiency, increase competitiveness and create new value for customers. Developing the customs brokerage in the context of digital transformation is to expand the scale and improve the quality of services based on a digital platform. In this process, customs and businesses will apply digital technologies such as artificial intelligence (AI), blockchain, machine learning, IoT (Internet of Things), big data, cloud computing,... to optimize work processes, increase efficiency and creativity, and provide better services to customers. The nature of digital transformation does not only refer to the deployment of new technology, but also a comprehensive restructuring of the way of organizing operations and working thinking. The concept of digital transformation includes: (i) Information digitization - Digitization; (ii) Process digitization - Digitalization; (iii) Comprehensive digitalization - Digital Transformation. In the cross-border e-commerce flow, digital transformation in the customs sector makes the UN not only an important link in the global service supply chain but also helps customs authorities achieve the goal of digital customs and smart customs.
2. The practice of customs brokerage development in Vietnam
2.1. Regarding the scale of operations
Customs brokerage activities in Vietnam began in the 90s of the 20th century on the basis of the Customs Ordinance dated February 20, 1990 and Decree No. 171/HDBT dated July 25, 1991 of the Council of Ministers allowing a third party to declare customs on behalf of the owner of the goods. From 1991 to 1995, more than 200 enterprises operating in freight forwarding and customs declaration services were established to meet the needs of thousands of import-export businesses. [4] The development of the customs brokerage system has been focused on and regularly promoted in recent times. According to the data of the General Department of Customs (now the Customs Department), customs brokerage operations have been recognized for more than 1,600 enterprises. However, during the operation, some brokers were suspended or terminated due to no longer meeting the prescribed conditions or partly due to the conversion of business activities, so the number of active customs brokerage firms is about 1,200 agents.[5] Regarding customs brokerage personnel, the General Department of Customs has issued identification codes to about 3,200 customs brokers. During the operation, some of these codes have been revoked, leaving around 1,700 active customs broker codes nationwide. The number of brokers per agency remains low, only approximately 1.4 employees/customs brokerage[6]. The professional qualifications of customs brokers are uneven. Training and updating of knowledge for customs brokerage personnel has not been done regularly, causing some agents to not promptly grasp changes in policies, laws and new technologies. This situation affects the quality of services and increases the risk of legal violations during the customs procedures performed by customs brokers.[7]
Customs brokerage firms in Vietnam are concentrated mainly in cities with strong import–export activities and industrial or export processing zones, such as Ho Chi Minh City (with 300 customs brokers in 2022), Hanoi (which had 208 recognized brokers in 2018, increasing to 379 by 2023, accounting for approximately 24.3% of the total nationwide), Hai Phong, Dong Nai, Binh Duong, Hung Yen, Hai Duong, and Bac Ninh,... The number of customs brokers in some localities remains modest compared to their economic potential and advantages. In fact, there are even provinces without any customs brokerage firms, such as Dak Lak, Dien Bien, Ha Giang, and Binh Phuoc.[8]
2.2. Regarding the quality of customs declaration services
According to statistics derived from customs declarations, the use of customs brokerage services in customs procedures remains low compared to the total number of import–export declarations. The number of customs brokers performing the full range of brokerage services, from consulting and declaration to tax payment, goods clearance, and post-clearance inspection, remains limited. In the first six months of 2024, there were 156 customs brokers nationwide who filed declarations on behalf of importers and exporters, accounting for 14.1% of the total number of licensed customs brokers. These brokers handled 503,734 import–export declarations, representing 6.11% of the total 8,241,170 import-export declarations, with a trade turnover of USD 26.54 million, equivalent to 5.81% of the country’s total import–export value of USD 450.75 million.[9] Most of these active customs brokers are large, well-established agencies with strong operational capacity, primarily serving foreign-invested enterprises (FIEs). However, in many cases, businesses still prefer to hire individuals or small firms to provide “customs declaration services” under private agreements, rather than through official customs brokers. In such cases, the importers or exporters themselves remain responsible for signing customs declarations and fulfilling obligations related to taxes, fees, and other payments. Furthermore, some large corporations and conglomerates do not choose brokers within their local area but instead contract with customs brokers operating under the jurisdiction of other provincial or municipal Customs Departments. This practice creates difficulties in monitoring, management, and enforcement related to customs broker activities.[10]
Given the modest number of customs brokerage firms compared to the economic potential and advantages, the volume of customs declarations, import–export turnover, and tax revenues handled through customs brokers remains very low. This indicates limitations in the capacity and effectiveness of customs brokers, which explains why many import–export enterprises do not yet recognize the long-term benefits and efficiency of using brokerage services for customs procedures. Many import–export companies prefer to handle customs procedures on their own to maintain control over emerging issues and to reduce costs, such as service fees for customs brokers and value-added tax.[11] In addition, customs brokers face competition from informal, freelance individuals, and the legal risks associated with their operations further hinder the development of the brokerage sector. As a result, according to statistics from the General Department of Customs, only about 7% of enterprise customs declarations are processed through customs brokers.[12] Meanwhile, Vietnam processes millions of customs declarations annually, leading to overload, especially at major seaports and key economic regions. This percentage is significantly lower than that of developed countries such as Japan and South Korea, ...where over 90% of customs declarations are conducted through licensed customs brokers.
2.3. Regarding the support provided to customs authorities in managing import–export goods
Customs brokerage firms in Vietnam have not yet provided significant support to state management agencies in the field of customs and have not truly become the “extended arm” of the Customs authority. This situation runs counter to the global trend of customs brokerage development in the context of the digital economy. In developed countries, while the level of goods inspection varies depending on national regulations, in general, if 90% of goods have already been supervised by customs authorities, they are not subject to direct inspection by other government agencies. This efficiency is largely attributed to the support and expertise of customs brokers, who possess deep knowledge of goods information and customs clearance regulations in each country.[13] In contrast, customs brokers in Vietnam have not yet contributed effectively to the modernization of customs management or the digital transformation toward a smart customs model. Because customs procedures are not yet centralized through a network of authorized customs brokers, the connection and data sharing between customs brokers and customs authorities remain limited.
3. Certain legal issues arising from the practice of customs brokerage activities in Vietnam in the context of digital transformation and recommendations for improvement
3.1. Regarding the concept of “Customs Brokerage”
The Kyoto Convention is an international convention on the simplification and harmonization of customs procedures and is considered the “backbone” of modern customs procedures.[14] This international convention does not provide a specific definition of a customs broker; instead, it focuses on general principles governing customs procedures by establishing a common framework for their implementation. However, the Kyoto Convention facilitates the development of more detailed national regulations on customs activities, including provisions on customs brokerage, to ensure both compliance and efficiency. In particular, the Revised Kyoto Convention of 1999 stipulates that: “National legislation shall specify the conditions under which a person may act on behalf of another person in dealings with the Customs, and shall specify the liability of such third person towards the Customs for duties and taxes, as well as for any infringements.”[15]
Under current Vietnamese law, a customs broker is defined as a party authorized to act on behalf of the goods owner to perform customs declarations and other customs-related procedures as agreed upon in a contract.[16] Based on this definition, and in conjunction with the term “customs procedure agent”, it appears that the concept of the customs broker in Vietnam is being approached merely as a “goods owner’s agent.” Consequently, the customs broker is seen as performing only a single, simplified function-acting as a hired declarant that contracts with the goods owner to interface with customs authorities for the purpose of cargo clearance. The current regulatory framework in Vietnam remains ambiguous regarding the legal status of customs brokers and fails to clarify their “dual legal capacity”:
(i) as service providers performing customs declaration services; and
(ii) as entities authorized by the customs authority to carry out certain management-related actions in connection with customs procedures. In many other countries, prior to the arrival of goods, customs authorities examine the summary declaration submitted by the customs broker. Instead of maintaining direct relations with importers or exporters, the broker undertakes all foreign trade-related operations and procedures on behalf of these traders. The broker’s responsibility is to control and provide complete and accurate information to customs authorities, thereby ensuring the safety and legitimacy of goods.[17] Moreover, customs brokers serve as vital data-entry intermediaries, ensuring the highest level of accuracy and completeness. This helps reduce the workload of customs officers in receiving and processing declarations, contributing to a more streamlined and efficient customs administration. By continuously monitoring the movement of imported and exported goods and the entry and exit of transport means—while maintaining close professional cooperation with customs authorities—customs brokers can also detect early signs of violations and provide timely information to prevent commercial fraud. Therefore, the definition of customs broker should be revised to reflect its dual legal capacity, thereby clearly determining its legal position in relation to both the goods owner and the customs authority—particularly the latter. This relationship should be governed by provisions enabling customs authorities to delegate certain management functions or operational tasks to customs brokers under formal agreements or cooperation commitments. Such reform would strengthen the broker’s role as an “extended arm” of the customs authority. Accordingly, the term "customs broker" should be officially adopted in the Law on Customs, replacing the current term "customs procedure agent".
3.2. Regarding the conditions for the recognition of customs brokers
In general, agency activities, including customs brokerage, are conditional business sectors. Therefore, to be recognized as a customs broker, an enterprise must satisfy the following conditions: (i) possess a business registration certificate or enterprise registration certificate indicating the business line of freight forwarding services or customs brokerage services; (ii) employ staff who are qualified customs brokers; (iii) have information technology infrastructure that meets the requirements for electronic customs declaration and other conditions prescribed by law. A customs broker is an enterprise that meets all the above conditions and acts on behalf of importers and exporters to carry out customs declarations, submit and present relevant customs dossiers for import and export shipments as prescribed, and perform all or part of the tasks related to customs procedures as agreed upon in the contract with the cargo owner.[18]In general, these conditions are quite consistent with the legal regulations of other countries. However, in the context of digital transformation, the requirement that information technology infrastructure only needs to meet the condition of “performing electronic customs declarations” is no longer suitable for the third stage of "comprehensive digitalization". Customs declaration is only one component of customs procedures, and the infrastructure required for electronic customs declaration corresponds to levels one and two of digital transformation. Therefore, this condition should be revised to align with the stage of "comprehensive digitalization" and to move toward the model of smart customs.
The conditions for customs broker employees require that they must be Vietnamese citizens: (i) have at least an associate degree in economics, law, or engineering; (ii) possess a certificate of customs declaration proficiency; (iii) be granted a customs broker employee code by the customs authority.[19] The regulation that requires customs broker employees to hold a degree from an associate level or higher in law, economics, or engineering is too narrow and no longer appropriate. Some disciplines or majors are also well suited for providing customs declaration services in the current context of digital transformation, such as information technology, human resource management, logistics,...Therefore, the scope of eligible individuals should be expanded to allow them to participate in customs declaration proficiency examinations and meet the conditions for customs broker employees. In addition, to ensure professionalism and a high level of practice among customs brokers, it is also necessary to supplement the regulation with a requirement that candidates must have a certain period of practical experience working at customs brokerage enterprises.[20]
3.3. Regarding the rights and obligations of customs brokers
Based on the re-identification of the legal status of customs brokers, it is necessary to amend and supplement their rights and obligations. At present, customs law only defines customs brokers as customs declarants, therefore, customs brokers and their employees have the rights and obligations of customs declarants[21], such as: a) declaring customs and carrying out customs procedures in accordance with the provisions of the Customs Law;
b) providing complete and accurate information for the customs authority to conduct advance determination of the code, origin, and customs value of goods;
c) being legally responsible for the accuracy of the declared content and the submitted or presented documents, as well as for the consistency between the information kept in the enterprise’s records and that kept at the customs authority;
d) complying with decisions and requirements of the customs authority and customs officers in the performance of customs procedures, inspection, and supervision of goods and means of transport;
e) arranging personnel and means necessary for customs officers to carry out physical inspection of goods and means of transport;
g) paying taxes and fulfilling other financial obligations as prescribed by the laws on taxation, fees, charges, and other relevant legal provisions. However, the obligation to retain customs dossiers for goods already cleared; and to present records or provide related information and documents when required by the customs authority for inspection (including customs dossier inspection, post-clearance inspection at the customs office, and post-clearance inspection at the premises of the customs declarant) is essential. The customs broker serves as the focal point for the customs authority to effectively conduct inspection and supervision of import and export goods. Therefore, this obligation should be added to the responsibilities of customs brokers, rather than being excluded as under the current legal regulations.[22]
In addition to the rights and obligations mentioned above as prescribed in the Customs Law, customs brokers are also required to perform several other rights and obligations specifically provided in the guiding Circular issued by the Ministry of Finance.[23] Specifically, customs brokers must sign an agency contract with the cargo owner; declare and carry out customs procedures based on the signed agency contract with the cargo owner; sign and affix their seal on customs declarations and documents in the customs dossier; and submit periodic reports on their agency activities to the customs authority. However, practical implementation has revealed that these regulations still contain certain shortcomings in the course of application, specifically as follows:
First, regarding the signing of agency contracts with cargo owners and the declaration and completion of customs procedures based on the signed agency contract. According to the report of the Customs Supervision and Management Department, inspection results show that many signed contracts do not include an agreement on the use of the customs broker’s digital signature for customs declaration and procedures. Such contracts do not meet the legal requirements[24] for a customs brokerage contract, in essence, they are merely customs declaration service contracts, under which the cargo owner remains legally responsible for customs procedures related to the shipment, rather than the customs broker. However, the contractual arrangements between the customs broker and the cargo owner remain valid if they do not fall within the cases of invalid contracts as prescribed by the Civil Code 2015.[25] Therefore, contracts signed by customs brokers with cargo owners to perform customs procedures that do not reflect the true nature of customs brokerage activities are still quite common. In practice, some customs brokers also enter into contracts with third parties to perform part of the work stipulated in the customs brokerage contract. Consequently, it is necessary to supplement the law with a provision that in cases where a customs broker signs a contract with a third party to perform part of the work in the customs brokerage contract, the customs broker must still bear responsibility to the cargo owner for all tasks agreed upon in the agency contract.
Second, regarding the signing and sealing of customs declarations and documents in the customs dossier. According to current legal regulations, customs procedures are carried out electronically (except for certain specific cases)[26], therefore, the signing and sealing of customs declarations and documents in the customs dossier are performed through the use of digital signatures. However, as mentioned above, many signed contracts do not contain provisions or agreements on the use of the customs broker’s digital signature for customs declarations and procedures. As a result, customs brokers have not used their own digital signatures on customs declarations and documents in the customs dossier, but instead have used the digital signatures and identification codes of the cargo owners to make customs declarations and complete the clearance of goods. Consequently, in cases of incorrect declarations, penalties, enforcement actions, or outstanding debts,...legal responsibility is attributed to the cargo owner, which has led to prolonged legal disputes and affected the legitimate rights and interests of the parties involved. Therefore, it is necessary to stipulate clearly that when participating in customs brokerage activities, customs brokers are required to use their own digital signatures[27]. Furthermore, the agency contract must include an explicit provision on the use of the customs broker’s digital signature to clearly define legal responsibilities between the customs broker, the cargo owner, and the customs authority, as well as to ensure accountability under the law within this “tripartite relationship.”
Along with the obligations of customs brokers is the responsibility of cargo owners to notify the customs authority of the list of customs brokers authorized to act on their behalf in carrying out customs procedures (through the electronic customs data processing system) before the customs broker conducts customs declaration and procedures for import and export goods.[28]The purpose of notifying the customs authority of the list of customs brokers authorized to act on behalf of the cargo owner is to prevent the risk of brokers exploiting import and export enterprises’ information to carry out customs procedures, commit fraud, or violate the law. However, some cargo owners have failed to fulfill this responsibility because their contracts do not include provisions on the use of the customs broker’s digital signature for customs declarations and goods clearance. In addition, the electronic customs data processing system has not yet been able to automatically prevent declarations made by brokers who have not been authorized by the cargo owner but still proceed to make declarations in the system.
Accordingly, when compared with the provisions of Circular No. 12/2015/TT-BTC[29], there are still a number of customs brokers as well as cargo owners who fail to comply fully with the legal requirements governing customs brokerage activities. However, it is noteworthy that current legal documents do not contain provisions on how to handle cases in which customs brokers do not operate in the capacity of brokers but instead function merely as customs declaration service providers.[30]Therefore, it is necessary to supplement the law with provisions on administrative sanctions for customs brokers who fail to comply or improperly comply with legal regulations during their operations. This will serve as one of the key criteria for assessing the level of legal compliance of customs brokers, which will in turn be used to consider the recognition of priority customs brokers and the application of risk management principles to customs brokers.
Third, regarding the periodic reporting on the operational status of customs brokers: At present, customs brokers are required to submit quarterly reports to the customs authority[31]. However, in practice, this obligation is merely formal and does not assist the customs authority in managing or monitoring the actual operations of customs brokers. Therefore, this requirement should be abolished. In the model of digital customs and smart customs, the periodic reporting activity is unnecessary, as the customs authority can access all operational information of customs brokers through its database system. This can be achieved via data connection and information exchange mechanisms between the customs authority and customs brokers, without requiring brokers to submit or provide reports manually.
Fourth, regarding the appointment of representatives for customs procedures and other administrative procedures with the customs authority. In practice, when conducting customs procedures and other administrative procedures with the customs authority, employees of customs brokers operating in the true capacity of brokers use an introduction letter issued by the customs broker, while employees providing outsourced customs declaration services use an introduction letter issued by the cargo owner. This raises the question of whether an introduction letter from the cargo owner, which introduces customs broker employees outside the owner’s management authority, and the acceptance of such a letter by the customs authority for carrying out customs and administrative procedures, is consistent with legal regulations. Besides this issue, the current regulation is not suitable in the context of digital transformation, particularly when comprehensive digitalization has been implemented in customs operations. Therefore, it should be stipulated that the employee code of the customs broker, which has been updated in the customs authority’s data processing system, must be used. This is consistent with the provision that “the employee code of the customs broker, issued by the General Director of the General Department of Customs, shall be updated in the customs authority’s database system. In cases where customs declarations are carried out electronically, the customs authority will provide a username and password to the person assigned an employee code to access the system. The person assigned the employee code is responsible for maintaining the confidentiality of the information provided by the customs authority. When performing administrative procedures directly with the customs authority, the customs broker employee must present their employee code.”[32]
3.4. Regarding the responsibility of the Customs authority
A customs broker is an entity established in response to the practical demands of import–export activities (in line with international practice), with the purpose of reducing the burden on customs authorities and helping customs operations release goods more quickly and efficiently. Although it is not part of the organizational structure of the Customs authority, the customs broker serves as a reliable ally and an extended arm of the Customs sector. Accordingly, the training, education, provision and updating of materials, forms, and guidelines on customs and tax procedures, as well as facilitating the operations of customs brokers, are obligations and responsibilities of the Customs authority. Foremost among these responsibilities is the professional training in customs operations such as goods classification, customs valuation, and determination of the origin of goods,... Therefore, the law should provide specific regulations on the mechanisms for implementing these responsibilities of the Customs authority in line with the context of digital transformation. Furthermore, in the models of digital and smart customs, legal provisions should aim to develop an integrated data ecosystem for customs brokers, in which the Customs authority acts as the coordinating hub. Accordingly, the Customs authority must take responsibility for supporting customs brokers, first and foremost by facilitating connection, sharing, and exchange of information and data related to customs operations, not only before, during, and after customs clearance but also across other stages of the supply chain.
Regarding the responsibility of the Customs authority in inspecting and supervising the activities and compliance with the provisions of the Customs Law and the Circular regulating customs brokers and customs broker employees:[33]
Inspection and supervision of customs brokers are activities conducted by the Customs authority to ensure that customs brokers comply with legal regulations during the performance of customs procedures, the management of import and export goods, and the observance of customs processes and formalities.[34] In practice, such inspection has so far mostly been limited to document-based review. On-site inspections at the offices of customs brokers are primarily conducted at the initial stage for the issuance of certificates of eligibility for customs brokerage operations; after this stage, actual inspections are rarely carried out.[35] However, inspecting import–export information of enterprises through customs brokers is extremely important, as it is both effective and cost-saving. This approach helps to reduce the number of inspection and supervision focal points for the Customs authority: instead of examining thousands of import–export enterprises, the Customs authority may focus inspection efforts on a smaller number of customs brokers acting as intermediaries. Furthermore, specific provisions should be established concerning the inspection and supervision of customs brokers. Such activities should mainly aim to assess the competence, professional qualifications, and ethical standards of customs brokers, thereby ensuring compliance with professional practice regulations. At the same time, it is necessary to adopt legal provisions on the application of information technology in the inspection, supervision, and management of customs broker operations, ensuring interconnection with customs authorities, specialised management agencies, and the National Single Window. This would meet the automation requirements in the management of customs brokers and contribute to the development of a comprehensive customs broker database.
In addition to the above-mentioned responsibilities, the Customs authority is responsible for publicly posting on the electronic portal of the General Department of Customs (currently the Department of Customs) information including: the list of enterprises recognized as customs brokers and customs broker employees who have been issued identification codes; the list of customs brokers that have been suspended, dissolved, declared bankrupt, or terminated, and customs broker employees who have been suspended or whose identification codes have been revoked.[36] The published information should include: the name of the customs broker, registered office address, tax identification number, year of establishment, telephone number, legal representative, list of customs broker employees, employee identification codes, and other relevant necessary information. However, to date, this obligation has not been fully implemented on the electronic portal of the Department of Customs. As a result, the Customs authority lacks sufficient information to effectively manage customs brokers in the current context of digital transformation. Regarding the responsibility for issuing and revoking customs broker employee identification codes, the practice shows that individual passwords or unique codes for each customs broker employee have not yet been implemented, instead, a single account is issued collectively for the entire customs broker. Consequently, when an employee’s identification code is revoked, the Customs authority must issue an official dispatch to the customs broker to verify the employee’s declaration account and deactivate the account used by the employee whose identification code has been withdrawn.
Thus, in addition to the fact that the Customs authority has not yet fully performed its responsibilities, the current legal framework also lacks provisions defining the responsibilities of the Customs authority towards customs brokers in their capacity and status as partners, as “companions,” and as the “extended arm” of the Customs authority. In the context of digital transformation, legal documents governing customs brokers should clearly define the coordinating and supporting role of the Customs authority in facilitating the connection and exchange of information between the Customs authority and customs brokers, including both technical connectivity and the exchange of operational data. With respect to technical connectivity, regulations should address the establishment of technical interfaces between information technology systems, the use of standard data communication protocols (such as API, Web Service, EDI,...), and the assurance of interoperability, data accessibility, and synchronized data processing between the Customs authority and customs brokers. With respect to operational data exchange, there should be specific provisions identifying mandatory data categories that must be shared, as well as data that may be shared by agreement. This would serve as the basis for defining the respective responsibilities of customs brokers and the Customs authority. In addition, customs brokers should be supported in implementing digital transformation, including the use of software compatible with the management systems of the Customs authority.
3.5. Regarding the preferential regime for customs brokers
Similar to many countries around the world, in order to promote the development of customs brokers, Vietnamese law also provides for preferential regimes applicable to customs brokers, including the implementation of the Authorized Economic Operator (AEO) Programme. Currently, the criteria for recognizing priority customs brokers are prescribed in Circular No. 72/2015/TT-BTC dated 12 May 2015 and Circular No. 07/2019/TT-BTC issued by the Minister of Finance, which regulate the application of preferential regimes in customs procedures, inspection, and supervision for import–export goods of enterprises. However, the requirement that a customs broker must process 20,000 customs declarations per year is an excessively high and impractical standard for customs brokers in Vietnam. According to assessments and data from the Hanoi Customs Department, based on the criterion of the number of declarations, only 20 out of 300 customs brokers handle more than 500 import–export declarations per quarter (equivalent to more than 2,000 declarations per year). This is particularly due to the specific characteristics of the Hanoi area, where a large number of declarations are of low value and primarily concern goods delivered via postal or express delivery services.[37] This reality demonstrates that the current preferential policy regulations are not suitable for service providers such as customs brokers. The policies remain unclear regarding the treatment of customs brokers and their employees who are recognized as priority entities, as well as concerning the mechanisms of reward, sanction, or discipline applicable to them. As a result, few customs brokers are interested in applying for recognition as priority customs brokers. To date, no customs broker has been officially recognized as a “priority customs broker.”[38] Based on the legal status and role of customs brokers as defined in the Revised Kyoto Convention (RKC), the Trade Facilitation Agreement (TFA), and the Framework of Standards to Secure and Facilitate Global Trade (SAFE), as well as from the experience of other countries such as Japan, the Republic of Korea, and the United States... the recognition of priority customs brokers should focus on compliance-based conditions rather than on the number of declarations processed. Once the specific criteria, such as the number of declarations handled, the accuracy rate of declarations, the level of legal compliance or violations, corporate governance, and the updating of customs law knowledge, are clearly defined and quantifiable, customs brokers meeting these standards may be granted priority status.[39] Furthermore, the designation of priority enterprises as customs brokers should be prescribed in a Government Decree (specifically, the Decree detailing certain articles and implementation measures of the Customs Law concerning customs procedures, inspection, supervision, and control).[40]
Furthermore, current legal provisions have not yet established a clear distinction or preferential mechanism for customs brokers compared with import–export enterprises that conduct customs procedures on their own or other service providers performing customs declaration services. The only difference is that, in order to make customs declarations and complete customs clearance on behalf of the cargo owner, customs brokers must employ personnel who have undergone training, obtained a customs declaration professional certificate, and been assigned a customs broker employee identification code. In contrast, import–export enterprises or other service providers are not required to meet any such conditions; they can still perform customs declarations and customs procedures without possessing any professional certification. Consequently, this situation reduces the competitiveness of customs brokers.[41]The lack of substantial differentiation in customs declaration procedures between customs brokers, import–export enterprises, and other service providers has led to a limited awareness among enterprises of the role of customs brokers, thereby weakening their competitive position. In fact, many customs brokers themselves are not particularly "motivated" to promote their brokerage activities. Moreover, due to potential legal risks that customs brokers may encounter during their operations, they tend to act with caution. In addition, the cost of customs declaration activities performed by customs brokers is often higher than that of other service providers, while the value of the service remains relatively similar, resulting in lower economic efficiency.[42] Therefore, it is necessary to develop realistic criteria for recognizing priority customs brokers and priority customs broker employees in accordance with the current operational conditions of customs brokers. In this regard, a comprehensive set of compliance measurement indicators for customs brokers should be developed. The Customs authority may evaluate the operational performance and compliance of customs brokers based on a set of relevant criteria reflecting their professional activities. To enhance the capacity of customs brokers, foster a fair and sustainable competitive environment, improve their voluntary compliance with the law, and promote recognition by relevant stakeholders while improving customs broker management efficiency, the Customs authority, in coordination with the Vietnam Logistics Business Association, should develop a customs broker competency assessment index. The main pillars of this index should include professional standards, operational professionalism, and legal compliance of customs brokers.[43] The establishment of this index must be based on an integration of international standards, the norms of the World Customs Organization, recommendations from foreign and domestic experts, and consideration of the specific economic context and legal framework governing customs brokerage activities in Vietnam.
It is also necessary to study certain matters for the implementation of a preferential regime applicable to enterprises that are customs brokers. When an enterprise satisfies the requisite conditions relating to customs law compliance, tax law compliance, turnover, the number of consignments declared in compliance with customs law, a period free of violations... it should be recognized as a priority customs broker and thereby be entitled to preferential treatment. However, the preferential regime for customs brokers should not be made identical to the preferential regime applied to import–export enterprises, nor should the consignee or carrier automatically benefit from preferential treatment simply by authorizing a priority customs broker to carry out customs procedures on their behalf.[44]
3.6. Regarding administrative procedures for customs brokers
In connection with the responsibilities of the customs authorities toward customs brokers, the implementation of administrative procedures plays a crucial role. Currently, there are 13 administrative procedures related to customs brokers, including: organizing examinations and issuing customs declaration practice certificates; issuing such certificates to customs officers who have transferred, retired, or resigned; recognizing customs brokers; suspending customs broker operations; terminating customs broker operations; resuming customs broker operations; issuing customs broker employee codes; extending employee codes; revoking employee codes; reissuing employee codes; updating customs broker information; recognizing priority enterprises or customs brokers; and issuing, revoking, or confirming user IDs related to customs brokers. However, these administrative procedures mainly concern the legal status and operations of customs brokers and their employees, as well as the customs authorities’ management of them. At present, such procedures are still carried out in both paper and electronic formats, which can lead to issues such as lost applications, undelivered submissions, or returned documents. In the context of digital transformation, administrative procedures related to the legal status of customs brokers and their employees should be implemented electronically and made publicly available through the online public service portal. This would ensure that most procedures reach Level 4 e-government service standards and can be performed via multiple devices, anytime and anywhere. In addition, regulations should promote the application of information technology in administrative procedures, for instance, using facial recognition or biometric identification, integrating citizen identification numbers with personal data in the electronic customs system, and providing monthly or quarterly data submitted by customs brokers for cross-checking and data accuracy verification.
4. Conclusion:
Customs brokers are not only essential partners but also trusted companions of the Customs authorities in enforcing customs law. They play a vital role as part of the global supply chain. Therefore, the orientation toward developing and enhancing the capacity of customs brokers has been emphasized in the Customs Development Strategy to 2030, with a vision to 2045. Over the years, customs brokerage activities have been established with the expectation of assisting both Customs authorities and import-export enterprises in reducing workload pressures as trade volumes increase, contributing significantly to the global logistics and supply chain process. However, compared to the requirements of the digital economy, whose core lies in digital production, customs brokers in Vietnam have not yet met the expected level of efficiency and modernization. Therefore, developing customs brokers toward a modern, professional, and reliable model is an urgent need in the current context of digital transformation. To improve the effectiveness of customs brokers’ operations, it is essential to accelerate administrative reform, complete the legal framework, and encourage investment in technology. At the same time, strengthening the knowledge and technological skills of customs officers and customs brokerage staff is crucial to fully harness the benefits of digital transformation. For sustainable development, customs brokers must continuously innovate, embrace advanced technologies, and align with international market requirements and digital transformation trends in the customs sector, built upon a transparent and enabling legal foundation.
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[*] Associate Professor, PhD, Senior Lecturer – Academy of Finance. Email: nguyenthuonghuyen@hvtc.edu.vn, approved for publication on 28/10/2025.
[1] Ngo Minh Hai, “The use of customs brokers in import and export activities in Vietnam today,” ministry-level research project – Ministry of Finance, 18 (2009).
[2] Article 20, Customs Law – Law No. 54/2014/QH13, dated June 23, 2014.
[3] P.G. Arul. International
logistics management. Pondicherry University, Directorate of Distance
Education, 95 (2018)
[4] Dao Duy Tam, Development of customs brokerage services in Vietnam – Current situation, experiences and solutions, master's thesis, National Economics University, 45 (2012).
[5] Compilation of annual summary reports of the General Department of Customs for the years 2020, 2021, 2022, 2023, and 2024.
[6] Compilation of summary reports of the General Department of Customs for the years 2020, 2021, 2022, 2023, and 2024.
[7] Tran Binh Minh, Management by Vietnam Customs of export and import goods in the sharing economy, code: BTC/ĐT/2019-67, ministry-level research project, Ministry of Finance, 52 (2019).
[8] Nguyen Van Tho, Solutions for developing customs brokers in the context of digital transformation, synthesis report of a ministry-level research project, Ministry of Finance, 83 (2024).
[9] Compiled from the “Import and export turnover statistics for the first six months of 2024” by the Department of Information Technology and Customs Statistics – General Department of Customs.
[10] Nguyen Van Tho, Solutions for developing customs brokers in the context of digital transformation, synthesis report of a ministry-level research project, Ministry of Finance, 87 (2024).
[11] Tran Duc Hung, Customs management of export and import goods in e-commerce activities, code: BTC/ĐT/2020-03, ministry-level research project, Ministry of Finance, 102 (2020).
[12] Nguyen Van Tho, Solutions for developing customs brokers in the context of digital transformation, synthesis report of a ministry-level research project, Ministry of Finance, 89 (2024).
[13] Ewa Gwardzińska. The role of customs brokers in facilitating international trade. World Customs Journal, 8(1), 63-70 (2014)
[14] Kyoto Convention on the “Simplification and Harmonization of Customs Procedures” (1993) and its amendments and updates (1999) (hereinafter referred to as the Revised Kyoto Convention).
[15] Standard 8.2, Chapter VIII, Revised Kyoto Convention, 1999.
[16] Clause 1, Article 5, Circular 12/2015/TT-BTC, dated 30/01/2015, detailing the procedures for issuing customs declaration practice certificates; issuing and revoking customs broker employee codes; and the procedures for recognition and operation of customs brokers.
[17] Jon Sasaki, Customs broker exam study guide & how to start your own customs brokerage business, CHB Solutions, (2010).
[18] Article 5, Circular No. 12/2015/TT-BTC (as amended and supplemented by Clause 3, Article 1, Circular No. 22/2019/TT-BTC): “A customs broker is an enterprise that satisfies the conditions stipulated in Clause 1, Article 20 of the 2014 Customs Law, and within the scope authorized under the agreement in the contract signed with the owner of the exported or imported goods (hereinafter referred to as the consignee), acting on behalf of the consignee to perform all or part of the obligations of the declarant as prescribed in Clause 3, Article 18 of the Customs Law.”
[19] Clause 2, Article 20, Customs Law 2014.
[20] Previously, the conditions for becoming a customs broker employee required a minimum of three (03) months of work experience with the customs broker where the card was issued (Item d, Clause 1, Article 3, Decree 14/2011/ND-CP dated 16/2/2011); this requirement is no longer stipulated.
[21] Clause 4, Article 20, Customs Law 2014: “Customs brokers and their employees shall exercise the rights and fulfill the obligations of the declarant as stipulated in Article 18 of this Law.”
[22] Clause 3, Article 18, Customs Law 2014: “A declarant may be a customs broker or another person authorized by the consignee or the carrier to perform the obligations specified in points a, b, c, d, e, and g of Clause 2 of this Article within the scope of authorization. A declarant may also be the person operating the means of transport, performing the obligations specified in points a, c, d, e, and g of Clause 2 of this Article.”
[23] Article 5, Circular No. 12/2015/TT-BTC, as amended and supplemented by Clause 3, Article 1, Circular No. 22/2019/TT-BTC.
[24] Clause 2, Article 5, Circular No. 12/2015/TT-BTC, as amended and supplemented by Clause 3, Article 1, Circular No. 22/2019/TT-BTC.
[25] Articles 123 to 130, Civil Code 2015.
[26] Article 25, Decree No. 08/2015/ND-CP dated 21/01/2015, detailing certain provisions and measures for implementing the Customs Law on customs procedures, customs inspection and supervision, and customs control.
[27] To complete the amendment, supplementation, or replacement of Circular 22/2019/TT-BTC dated 16/4/2019 and Circular 12/2015/TT-BTC dated 30/1/2015 of the Ministry of Finance, which detail procedures for issuing customs declaration practice certificates; issuing and revoking customs broker employee codes; procedures for recognition and operation of customs brokers; and standardizing the customs broker management database.
[28] Clause 6, Article 14, Circular 22/2019/TT-BTC: “When a customs brokerage contract arises, the consignee shall notify the list of customs brokers authorized to declare and carry out customs procedures on behalf of the consignee for exported or imported goods through the customs electronic data processing system before the customs broker performs the declaration and customs procedures for the exported or imported goods.”
[29] As stipulated in Clause 2, Article 5, Circular No. 12/2015/TT-BTC (as amended and supplemented by Clause 3, Article 1, Circular No. 22/2019/TT-BTC).
[30] Article 7, Circular No. 12/2015/TT-BTC (as amended and supplemented by Circular No. 22/2019/TT-BTC) of the Ministry of Finance.
[31] Customs brokers are responsible for periodically reporting their operational status to the Customs Department of the province or city where they are headquartered. This report must be submitted on the 5th day of the first month of the following quarter or as specifically requested by the Customs authorities.
[32] Clause 8, Article 1, Circular No. 22/2019, amending and supplementing Clause 1, Article 12 of Circular No. 12/2015.
[33] Article 15, Circular No. 12/2015/TT-BTC dated 30/1/2015, stipulating the rights and responsibilities of the Customs authorities.
[34] Thai Bui Hai An, Management of customs brokerage in Vietnam, doctoral dissertation, Academy of Finance, 130 (2015).
[35] Synthesis report of the ministry-level research project “Solutions for developing customs brokers in the context of digital transformation,” Ministry of Finance, 109 (2024).
[36] Point b, Clause 7, Article 15, Circular 12/2015/TT-BTC, stipulating the rights and responsibilities of the Customs authorities.
[37] Compilation of annual summary reports of the Hanoi Customs Department for the years 2020, 2021, 2022, 2023, and 2024.
[38] Nguyen Van Tho, Solutions for developing customs brokers in the context of digital transformation, synthesis report of a ministry-level research project, Ministry of Finance, 116 (2024).
[39] Reference material and guidance for customs brokers from the World Customs Organization (WCO) (“Customs brokers guideline – June 2018”).
[40] Currently, it is Decree 08/2015/ND-CP and Decree 59/2018/ND-CP, which amends and supplements certain provisions of Decree 08/2015/ND-CP.
[41] https://thoibaotaichinhvietnam.vn/can-co-co-che-uu-tien-doi-voi-doanh-nghiep-la-dai-ly-lam-thu-tuc-hai-quan-158709.html
[42] https://tapchitaichinh.vn/phat-trien-dai-ly-hai-quan-ca-ve-luong-va-chat.html
[43] Reference material and guidance for customs brokers from the World Customs Organization (WCO) (“Customs brokers guideline – June 2018”).
[44] The priority regime for enterprises as stipulated in Article 43 of the Customs Law: exemptions from documentary checks within customs dossiers, exemptions from physical inspections of goods, the ability to complete customs procedures using incomplete declarations or substitute documents, and priority in performing customs procedures; priority in tax-related procedures for goods under the provisions of tax law...; and the consignee or carrier also enjoys priority when authorizing a priority customs broker.
