Customs explains the difference in data about mineral exports

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Quang Ninh Customs officers check coal exports. Photo: Thu Trang.

Turnover of only a few hundred million dollars

According to the Customs IT and Statistics Department, mineral exports (including coal, ore, mineral) are located in HS Chapter 25 and 26 and from group 2701 to group 2704 of Chapter 27.

However, mineral exports from Vietnam to China only have a turnover of several hundred million dollars per year. The leader of Customs IT and Statistics Department cited from the statistics of Vietnam Customs and "the commercial database of statistical agencies of the United Nations (UNCOMTRADE)”. Notably, the statistics of UNCOMTRADE are reported by China Customs.

Accordingly, in 2015, the turnover of mineral exports to China reported by Vietnam Customs is $US120 million but the turnover of mineral imports into China from Vietnam reported by China Customs is $US253 million, creating a gap of $US133 million. Also, in 2014, the turnover of mineral exports to China reported by Vietnam Customs is $US394 million while the turnover of mineral imports of China from Vietnam reported by China Customs is $US781 million with a gap of $US386 million.

Thus, the statistics of Vietnam and China show that the value of mineral exports from Vietnam to China is only several hundred million dollars per year. Although there is a difference, but it can not achieve the level of billions of dollars per year, which has been published by several press agencies recently.

The reason for the difference

Regarding the difference in statistics between Vietnam and China, a representative of Customs IT and Statistics Department explained that this was a common phenomenon of bilateral statistical activities between two countries in the world. There are 2 basic reasons leading to this situation, including the statistical methodology and smuggling problems.

In particular, the statistical value of the goods of the exporting country usually is based on FOB prices (without the cost of insurance and transportation of goods) while the importing country calculates the value of the goods on the basis of CIF prices (including costs, insurance and freight). Thus, it is easy to understand that the statistical value of the exporting country will be lower than that of the importing country.

In addition, the problem of smuggling and statistical methodology is affecting the value of imported and exported goods. In fact, in the border area between Vietnam and China (both land and sea), the activities of smuggling are always complicated, including the smuggling of minerals. Previously, Vietnam Customs and other functional forces discovered and arrested many perpetrators for smuggling, including the illegal export of coal.

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For example, in Quang Ninh province – a center of smuggling coal, in the first 6 months of 2016, the local authorities and other functional forces arrested and handled 77 cases (prosecuted two cases including 15 people) and seized 6,519.1 tons of coal.