Ha Nam Ninh Customs assists and removes difficulties for businesses to raise revenue 

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Customs performance at Ha Nam Customs Branch (Ha Nam Ninh Customs Department). Photo: H.N

Turnover increased and revenue decreased slightly

According to Ha Nam Ninh Customs Department, as of May 15, the department has processed procedures for 120,689 declaration forms, increasing by 8.84%; import and export turnover reached US$5,444 billion, increasing by 0.9% over the same period in 2019. As of June 30, it estimates to process 150,049 declaration forms and import-export turnover is estimated at VND6.7 billion.

As of June 3, Ha Nam Ninh Customs Department’s revenue was VND2,997 billion, reaching 39.96% compared to the estimate (VND7,500 billion) and 38.82% compared to the desired target (VND7,720 billion), decreasing by 16.38% compared to 2019.

Talking to Customs News, Director of Ha Nam Ninh Customs Department Pham Hong Thanh said that the taxable turnover of import-export items in the area were mainly mineral products, machinery, equipment and components, spare parts and components of investment projects, components and spare parts of automobiles, motorcycles, electric bicycles, wood and coal.

Items accounting for high revenue are automobile assembly components of Hyundai Thanh Cong Vietnam Auto Joint-Stock Company, which has participated in the Import tax preferential program for imported automobile components under Government Decree 125/2017/ ND-CP, which has a strong impact on the department’s revenue.

Also Thanh said that although the import-export turnover of the department’s customs branches increased compared to the same period in 2019, it was mainly from investment activities under the regime of export processing and production enterprises, processing enterprises subject to tax exemption, so the import and export goods have not paid revenue to the State budget.

Meanwhile, due to the effects of the Covid-19 pandemic, supply chains such as materials, mobile phone components, electronics, computers, textiles, footwear, manufacturing and processing agricultural products are key industries that bring high revenue to the department, are also affected.

In addition, businesses in the area are heavily dependent on imported raw materials mainly from India, China, South Korea and Japan.

“Especially, the Covid-19 pandemichas caused many difficulties in foreign trade activities, reducing the consumption demand of enterprises, causing a decrease in export turnover and output. Some enterprises exporting goods to the US saw orders stopped or canceled by their partners until the end of 2020,” Thanh said.

Assists businesses

Ha Nam Ninh Customs Department identified the key task in 2020 and the following years is to receive and promptly remove difficulties, problems and reflections of enterprises and business associations in the customs area.

Deputy Manager of Ninh Binh Customs Branch, Mai Kim Nhat, said that the revenue from automobile production accounts for the main proportion of the state budget revenue in Ninh Binh province. According to the survey of the operation of Thanh Cong Group conducted by the branch, the group has suspended its operation in the first 22 days of April. Thereby, the revenue from the group reached only VND1,778 billion.

Also, according to Mr. Mai Kim Nhat, Thanh Cong Group said that because the agents and showrooms of the group must suspend their operation, while workers did not carry out production due to social distancing, thereby the group’s output has been greatly affected.

After ending the social distancing, the number of finished cars decreased sharply due to the decrease inconsumer demand. The group only delivered to the agencies on average about 1,000 cars per month (meanwhile, on average 7,000-10,000 units per month in 2019). Particularly, the large volume of imported components of Thanh Cong Grouphas been backlogged at seaports and warehouses. From April to the end of May 20, the group declared very few import declarationsinland and has not had along-term business plan until the end of 2020.

Nhat said that the operation of group will greatly affect the state budget revenue of the branch and the whole department. Therefore, from now until the end of the year, to complete the assigned tasks, the branch continues to support and share difficulties with businesses through graspingthe situation and creating the most favorable conditions for business and production activities of enterprises. Proactively working with businesses with import turnover and large revenues to grasp, exchange information, and promptly remove difficulties.

Director Pham Hong Thanh said that the Department would continue to closely coordinate with agencies such as Tax, Treasury, and Banks to promptly solve difficulties and problems of enterprises, contributing to promoting export and import activitiesin the area.