Customs units in Central provinces facilitate trade amid pandemic

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Customs officers at Nha Trang border gate customs branch handle procedures for businesses. Photo: T. Tuan

Trade surplus of seafood in KhanhHoa

According to Khanh Hoa Customs Department, from the beginning of the year to the end of April 2020, many export items of Khanh Hoa increased sharply compared to the same period last year. Seafood gained the highest export turnover with over US$150 million, a year on year increase of 7.77%. Meanwhile, the volume of imported seafood was only US$60 million. In addition to seafood products, many other items gained high export turnover, such as textiles and garments and raw materials with over US$27 million, up nearly 24%; and handicrafts increased nearly 100%.

However, many imported items dropped sharply, affecting the budget revenue. For example, turnover of iron and steel of all kinds decreased by nearly 40%; machinery, equipment and spare parts fell over 61%; cigarette raw materials decreased by 94% and garment materials decreased by nearly 62%, compared to the same period in 2019.

Due to the impact of the disease, the number of businesses doing customs procedures through KhanhHoa Customs Department in April also decreased significantly with 113 businesses, down 13.74% over the same period last year. Accordingly, the revenue of KhanhHoa Customs Department decreased nearly 50%. In the four months, the department collected VND889.56 billion, equal to 59.30% of the estimate, 53.59% of the target (VND1,660 billion), down 45.42% over the same period in 2019.

Overcoming reduced revenues

Due to the impact of the Covid-19 pandemic, the budget revenues of most Customs units in Central provinces plummeted. In particular, BinhDinh Customs Department was the most affected, reducing by more than 64%. According to BinhDinh Customs Department, the budget revenue in the first four months of 2020 of the unit reached VND186,976 billion, reaching 24.3% of the target assigned by the Ministry of Finance (VND770 billion), 24% of the desired target assigned the General Department of Customs (VND780 billion),down 64.6% over the same period in 2019.

Customs officers of Qui Nhon Port Customs Branch, Binh Dinh Customs Department inspect imported and exported goods. Photo: T. Hoa

Given the sharp decline in budget revenue from imported goods due to the pandemic, Customs Departments in Central provinces have introduced many solutions to support businesses and raise revenues. Accordingly, in addition to monitoring import and export activities of businesses to takemeasures to support and remove difficulties and problems quickly, units have taken creative ways to ensure revenues after the pandemic. Specifically, Binh Dinh Customs Department is deploying a plan to develop and improve the quality of customs agents, assigning customs officers to take charge of receiving requests, guiding and supporting agents to complete customs proceduresfor quick and professional clearance to attract businesses. Currently, the total number of businesses doing customs procedures is more than 340 units, a year-on-year increase of 35.5%.

At Quang Nam Customs Department, despite the pandemic, with raw material inventory before the Lunar New Year and export markets of enterprises in the province in recent years, mainly to South Korea, Japan, the US andthe EU (export turnover to China is insignificant), the export increased more than 20% over the same period last year.

Remarkably, due to the impact of reduced consumption of cars, the import turnover of Truong Hai Company decreased 38% compared to the same period last year, and the processing and exporting businessesin Quang Nam used raw materials mostly imported from China, making import value fall more than 22% over the same period last year, Quang Nam's budget revenue only reach VND1,230 billion in the four months, down nearly 40% compared to the same period last year.

In order to ensure the budget revenues in 2020, Quang Nam Customs Department has directed units to monitor the pandemic and its impacts on import and export activities in Quang Nam province to give timely solutions to effectively prevent and control the pandemic and facilitate businesses. In particular, the customs units grasps information on each business and each import-export item in the province to support and facilitate import and export activities.

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Among Customs Department in Central region, in the first four months of 2020, Quang Ngai Customs Department collected VND1,785 billion, up more than 76%, reaching 64.95% of the target (VND2,750 billion) and 40% of the additional target (VND4,460 billion). This is a positive sign amid the pandemic. Taxable import goods were mainly crude oil, machinery and equipment for fix assets development. Moreover, exported items as reported machinery and equipment, fuel oil and wood chips are revenues for Quang Ngai Customs Department.