Customs sector: Achievements in revenue collection – effectiveness from solutions deployment

Huu Nghi Customs officials (Lang Son Customs Department) took turns to receive dossiers and guide enterprises to take vehicle to the terminal. Photo: H.Nụ

Implement solutions from the beginning of the year

Statistics showed that the total State revenue collected from import-export activities of the Customs sector by the end of June 27 hit VND 191,099 billion, 60.7% of the assigned estimate, equivalent to 57.7% of the striving target, an increase of 31.7% over the same period last year, but only rising by 9.8% from the same period in 2019. It is expected that the total revenue collection in the first six months of the year of the Customs sector will reach VND 194,900 billion, equaling 61.87% of assigned estimate, equal to 54.91% of the striving target, an increase of VND 45,311 billion (equivalent to 30.29%) over the same period last year.

As of June 27, the revenue collection of 10 customs departments of provinces and cities (accounting for 87% of the estimate of the whole sector) hit 57.6% of the assigned estimate, 55% of the striving target, increasing by 28.9% over the same period last year. In which, seven Customs Departments, HCM City, Hai Phong, Hanoi, Ba Ria - Vung Tau, Dong Nai, Binh Duong and Bac Ninh, revenue collection increased by at least 23% over the same period last year.

According to the Import and Export Duty Department, despite many negative impacts from the global economic decline due to the impact of the Covid-19 pandemic, along with the impact of the free trade agreements signed by Vietnam, with high determination and the timely implementation of many solutions at the beginning of the year, the State revenue collection in the first six months of the year of the General Department of Vietnam Customs achieved positive results.

According to Le Nhu Quynh, Director of the Import-Export Duty Department, the reason for achieving positive results in State revenue collection in the first months of the year is related to the significant growth of total import-export turnover of the whole year, which is estimated at 31.3% compared to the same period in 2020, it is estimated to hit $314.73 billion. At the same time, the production and business activities of firms recovered, making the import-export turnover with tax estimated at $67.31 billion, up by 33.2% over the same period in 2020. In which, import turnover includes tax was increased in some commodity groups such as iron and steel and common metals of all kinds estimated at $7.04 billion, increasing by 52%; CBU cars of all kinds estimated at $1.78 billion, up by 100.6%; machinery, equipment, tools and spare parts of all kinds estimated at $12.95 billion, climbing by 24%; group of plastics and auxiliary materials estimated at $4.7 billion, rising by 43% from the same period last year.

Besides, the price of crude oil when developing an estimate was $45/barrel. However, in the first six months of the year increased to $65/barrel is also the reason for the increase in revenue collected from petrol, because the high price of petrol leads to high prices of petroleum products. Other items also increased from the same period in 2020.

Facing unpredictable changes in the world and regional political and economic situation and the complex spread of the Covid-19 pandemic, from the beginning of the year, the General Department of Vietnam Customs took the initiative and issued documents indicating solutions for revenue collection in 2021.

According to Quynh, revenue collection was implemented in many aspects of customs activities such as price control and HS codes. Accordingly, price control was implemented via the database system had promoted the effectiveness. The General Department of Vietnam Customs has directed the application of the list of goods at risk in value with more than 1,100 HS code of eight-digits and more than 7,400 lines of goods with reference prices, preventing and detecting cases of incorrect declaration on value, re-determining customs valuation and taxable value to be suitable with actual goods. Conducting regular and continuous reviews on the database system of the value of each customs declaration, from there, direct to conduct inspection of more than 1,400 customs declarations, mainly at the Customs Departments: Hanoi, Hai Phong, HCM City, Da Nang. Besides that, the Customs authority has also issued 330 notices of classification results and 103 notices of pre-determining codes.

High determination in the whole sector

The pandemic is still very complicated, production and business activities in many industrial parks have been postponed, which is likely to strongly affect the State revenue collection in the last six months of the year. However, with determination and efforts, the Customs sector strives for reaching VND 331,000 billion of State revenue collection in 2021, equal to 105% of the current appropriation and equivalent to 100% of the target.

To achieve the above results, the General Department of Vietnam Customs has determined the task of collecting revenue is the top priority task of the whole sector. Therefore, the General Department of Vietnam Customs requested units to continue implementing Directive No. 215/CT-TCHQ with the synchronous and drastic implementation of trade facilitation solutions, improving State management effectiveness, fight against revenue loss in implementing the task of State revenue collection in 2021. Continuing to focus on reviewing and grasping the tax debt situation; classifying groups of receivables and irrecoverable debts, organising collection and handling of tax debts to ensure the fulfillment of assigned debt collection targets.

The General Department of Vietnam Customs also requested the Customs departments of provinces and cities to regularly assess the State revenue collection in their units, review and grasp the revenue sources, especially those that have large projects and sudden increase in revenue in the first six months of the year.

Modernise tax collection management, increase the number of banks that coordinate to implement electronic tax collection and payment 24/7. Building and implementing the program of firms asking for collection.

Strengthen the fight against revenue loss via supervision and inspection of customs procedures, post-clearance audit, specialised inspection, fight against smuggling and trade fraud; control, promptly detect and prevent illegal transport of goods into the country; importing goods counterfeiting trademarks or infringing intellectual property rights; importing goods not consistent with the customs declaration in terms of type, quantity, value, etc. (consumer goods, cosmetics, children's toys, bicycle and motorcycle parts, etc.) goods banned from import; intentionally consume goods under customs supervision (transit goods, temporary import and re-export).

Take professional measures to detect cases where tax codes and tax rates are not correct with regulations to enjoy low tax rates; review, inspect and direct to implement classification throughout the sector, avoiding revenue loss; supplementing the process of controlling the classification and application of tax rates at three levels: branch, department and general department.