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Progress of budget collection in the HaiPhong Customs Department in January 2019 and 2020, unit "billion dong". Chart: T. Binh

Cargo ships from China dropped sharply

According to updated information from the HaiPhong Customs Department, by the end of January 2020, the total budget revenue at the HaiPhong Customs reached 4,100 billion dong, equivalent to 6.1% of the yearly target, down 41.1% compared to the same period of 2019.

Deputy Director of HaiPhong Customs Department Nguyen KienGiang said that the revenue collection fell sharply due to many objective factors. TheLunar New Year holiday in 2020 was in January while the Tet holiday was in February last year.

Additionally, in the early days of the year, the COVID-19 epidemic greatly affected import-export activities across the locality, especially the volume of goods imported and exportedwith China.

“We estimate that in the first period of 2020, the volume of SITC cargo ships going from China to Dinh Vu port area decreased by 30% to 40% compared to the same period last year. While this is a company with a large volume of cargo in HaiPhong port area,” Mr. Nguyen KienGiang said.

Specifically, for import-export turnover in January, according to the HaiPhong Customs Department, in the first month of the year, the unit settled procedures for a total turnover of about US$5,559 billion, down 20% over the same period in 2019.

In particular, export turnover reached nearly US$2,591 billion, down 14.4% over the same period in 2019; particularly, export turnoverwith tax reached US$8.37 million, down 42.7% in 2019.

Import turnover reached nearly US$2,968 billion, down 24.1% over the same period in 2019; particularly, import turnoverwith tax reached more than US$1,188 billion, down 31.7% compared to the same period in 2019.

Turnover ofmany import commodity groups making a big contribution to the budget revenue in HaiPhong Customs had a sharp decline such as: cars reached US$45.77 million (down 62.8%); auto spare parts and components reached US$20.53 million (down 23.9%); motorbikes reached US$0.57 million(down 51%); gasoline and oil reached US$33.37 million(down 18.3%); beer and alcohol reached US$1.18 million (down 59.9%); iron and steel reached US$168.16 million (down 30.9%); cosmetics reached US$0.18 million(down 56.1%); machinery and equipment reached US$1,118 billion (down 21.3%).

Typically, completely built cars in January only contributed 454 billion VND in taxes,down to 1,557 billion VND compared to January 2019, equivalent to a decrease of 77% (January 2019 reached 2,011 billionVND).

Proactively solving difficulties for enterprises

Deputy Director General Nguyen KienGiang added thatfor the objective difficulties arising,the unit was developingsolutions to ensure the good implementation of both objectives, including disease control and trade facilitation to increase budget revenues.The unit's determination was to strive to fulfill the target of67,000 billionVND of budget revenue in 2020.

In order to create favorable conditions for the business community, in addition to the long-term and regular central programs and plans, the HaiPhong Customs Department is proactively grasping and removing difficulties for the business community.

“Currently, the Department is proposing that the General Department of Customs has a solution to remove difficulties for enterprises regarding the time limit for submission of C/O for shipments imported from China. Because of the Tet holiday and the COVID-19 epidemic, Chinese authorities have a long holiday, many enterprises cannot submit C/O on time within 30 days,” said Deputy Director General Nguyen KienGiang.

Regarding long-term programs, the HaiPhong Customs Department continues to promote and bring the Customs-Business partnership program into reality. Accordingly, the Department and its Sub-Departments will hold many seminars, and meetings with enterprises that regularly carry out procedures at the unit to answer tax and customs policies as well as listen and share, remove obstacles and difficulties of the enterprise.Along with that, the HaiPhong Customshas regularly issued regulations, professional processes andmanuals to unify the implementation in the whole unit,avoiding arbitrariness in implementing the duties of officials, civil servants, reducing time for processing dossiers, shortening the time for clearance of goods.

On the other hand, the HaiPhong Customs continues to promote the implementation of the National Single Window, ASEAN Single Window; providing online public services; Automated Customs Monitoring System (VASSCM).