Customs: Practical solution for implementing the task of revenue

This determination has teceived high levels of concensus from the Minister of Finance Dinh Tien Dung and Deputy Minister of Finance Do Hoang Anh Tuan.

Strictly controlling imports and exports to prevent comercial fraud is among many solutions worked out by Vietnam Customs to achieve the targeted state budget revenue from now on until the end of this year.  (Photo: Officer of Bac Phong Sinh Customs Branch, Quang Ninh  Customs Department is checking exporting goods). (Photo by: T. TRANG)

According to statistics compiled by the General Department of Vietnam Customs, in the first 4 months of 2016, state budget revenue collected from Customs sector reached 79.520 billion Vietnam dong, accounting for 29.4 % of the estimate, off 3.8 % from the same time period in 2015. Until May 11, 2016, the total revenue reached 86.793 billion Vietnam dong, equivalent to 33.4 % of the estimate. In April 2016 only, the calculated state budget revenue generated by Customs sector is 23.114 billion Vietnam dong, increased by 1.5 % against Mar but declined of 3.9% compared to the same period last year.

Regarding the cause of that decline, the Import-Export Duty Department (General Department of Vietnam Customs) analyzed that in general, the total value of export and import turnover taken in the first 4 months of 2016 is forecast to increase but the import turnover of various major goods which often generate high turnover such as petroleum, automobile in completed unit, machinery and accessories, vehicles and spare parts sharply decreased in comparison with figures of the same period last year. In particular, crude oil prices have decreased compared with the beginning of 2015; and being influenced by free trade agreements FTA which Viet Nam has signed, the flow of exporting goods is diverted to FTA partner countries which have a lower import tariff making up for the decline in state budget revenue yielded by the Customs sector in the first 4 months of 2016 from the same time period.

In terms of commodityies, in the first 4 months, price of those including petroleum, fuel and chemicals has suffered from a slump in its turnover led by the lower price of raw materials on the world markets. Revenue derived from exporting other commodities namely electronic components, telephones, and fabrics or textile raw materials…etc slightly increased due to a slowdown in exporting.

When evaluating the factors affecting state budget revenue produced from Customs sector like the implementation of Free Trade Agreements or the fluctuation in crude oil’s price, etc, It is foreseen that the state budget revenue in 2016 would be 25.800 billion Vietnam dong less than expected. Therefore, in the 8 months remaining, Customs sector must gain at least 23.810 billion Vietnam dong each month in order to reach the target of 270.000 billion Vietnam dong

Struggling to fulfill the task of revenue 2016, Director General of the General Department of Vietnam Customs Nguyen Van Can said, Vietnam Customs as a whole has considered achieving the targeted state budget revenue as a key mission. In such a dificult socio – economic condition recently, the General Department of Vietnam Customs will focus on the following points:

-Continue to carry out administrative reform and simplify administration procedure, regulate the National Single Window and ASEAN Single Window, conduct specialized inspections, propose a reduction in enterprise’s cost. Actively adopt the Resolution 36/NQ-CP and Resolution 19/NQ-CP. Maintain a Team to respond quickly to, proactively meet up with and promptly resolve any issue arising under the jurisdiction of Customs related to customs procedures, tax policy, tax administration, accounting regimes, tax refund, and tax exemption; overcome difficulties, and create favorable conditions for enterprises in implementing tax payment.

- Assign additional target to post clearance audit force to achieve state budget revenue of 1.200 billion Vietnam dong.

- Change the method of debt recovery from which the General Department of Vietnam Customs will not assign provincial Customs to recover debts, instead, asign Department of Customs to collect debt based on specific customs record.

- Amend and add a list of importing and exporting commodities whose price may change unpredictably. Under this method, the price of nearly 250 commodities belonging to 16 groups such as bus for transportation and travelling, trucks, steel, batteries, tires, beer of all kinds, household electrical appliances, sanitary equipment,... etc will be revised to be nearly equal to the real import and export price. This will create a base for Departments of Customs to collate, compare, inspect, monitor and consult properly after cargo clearance that base also provide a fair competitive opportunity among importing companies. At the same time, work in coordination with tax authorities for sharing information and database on good selling price to control and levy a suitable importing tariff.

-Focus on controlling and preventing smuggling and commercial fraud in key areas, prevent revenue loss in total amount, value, code, C/O, strengthen inspection, internal control, and application of risk management.

- Enhance Customs inspection and supervision to guarantee the acknowledgement of cargo shipment and avoid container or cargo missing. Enforce discipline in Customs sector.