Hai Phong Customs revenues fall by more than VND 2,000 billion

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Reduced imports of automobiles is one of the main reasons that makes the revenues of Hai Phong Customs in the first months of the year decrease. Photo: T.Binh.

In the first quarter of 2018, Hai Phong Customs Department collected VND 10,768 billion for the State budget, a decrease of VND 2,087 billion or 16.24% over the same period last year (VND 12,855 billion).

Particularly, revenues from Hai Phong's area reached VND 9,147 billion, a decrease of 18.27% over the same period in 2017 (at the same period, they reached VND 11.180 billion).

As a result of the implementation of bilateral and multilateral free trade agreements and Hai Phong is the gateway with the largest volume of imported goods in the North of Vietnam, Hai Phong Customs is strongly affected.

For example, during the implementation of the ASEAN Trade in Goods Agreement (ATIGA), in 2018, over 90% of commodity lines originating from member countries will be subject to a tariff reduction to 0%, especially from 30% to 0%; spare parts will decrease from 5%- 20% to 0%; iron from 5% to 0%.

On the other hand, the ACFTA (ASEAN-China Trade in Goods Agreement) and the AKFTA (ASEAN-Korea Trade in Goods Agreement) also include more than 400 commodity lines with rates ranging from 5%, 7%, 10 %, falling to 0% from the beginning of 2018.

The second major reason for the fall in revenues for Hai Phong Customs was the impact of new policies such as Decree 116/2017 / NĐ-CP stipulating conditions for production, assembly, import and trading cars, resulting in the drop in volume of imported vehicles and reduction of tax.

According to updated Customs statistics, in the first quarter of 2018, automobile import turnover was only $US 21.8 million, a decrease of 81.2% compared to the same period last year.

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On the other hand, the import value of motorcycle parts and accessories was only $US 2 million, a decrease of 5.4%; and import turnover of motorcycles decreased by 30.3%, which was another reason that made Hai Phong Customs revenues decrease.