Ho Chi Minh City Customs: Many solutions to reach 950 billion vnd from post-clearance audit

	Ha Noi Customs focuses on solutions to reduce State budget losses
	Collecting more revenue from Tax inspections and auditing
	Collecting revenue of nearly 18 billion VND from imported fabrics shipment

The Investment and Processing Customs branch is the unit which leads in revenue collection from PCA among branches of HCM City Customs department. Photo: T.Hoa

Increased revenue from border gate

According to the HCM City Customs Department, in 2016, the unit was assigned the increased target of 950 billion vndin taxes collected from PCA by the General Department of Customs. By the end of September 2016, the whole Department has made an increase of nearly 500 billion vnd for revenue. Among these, the most prominent is the Customs Branches which implemented PCA at the time of clearance of export and import goods. In total, increased taxrevenue from PCA above, the Customs Branches has collected an increase of nearly 350 billionvnd.

According to Deputy Director of Import & Export Duty Department - Mr.Nguyen Quoc Toan, from March 2016, HCM City Customs Department decided to transfer the consultation and PCA for Customs Branches to be directly handled according to regulations of the General Department of Customs, gradually increasing the taxable value inthe GTT02 system on par with actual transaction value in the market.

The problem that HCM City Customs Department faces now is emerging and sensitive commodities in the market. Normally, units do not have enough information to determine taxable value, if declared prices are accepted the data in the system will be affected. Thus,HCM City Customs Department assigned the Import & Export Duty Department to research and advise aboutdetermination of taxable value for emerging goods in the Vietnam market; goods which have not specified the reference price in the risk category issued by the General Department of Customs, and there is no basis for correspondent comparison to identical goods; goods on the risk category priced on declaration lower than the price of raw materials or synchronous component; and imported cars under 9 seats.

The solution for increasing revenue from PCA

To achieve a high result in PCA, avoiding losses for the State budget, the Deputy Director of the General Department of Vietnam Customs - Mr.Hoang Viet Cuong, in charge of HCM City Customs requested the units to focus on inspection of majoritems, such as carsand mobile phones in the last months of 2016.

From 31-12-2015 to 1-10-2016, beside implementation of consultative inspection (or PCA) of emerging goods in the market, the Export&Import Duty Department also carried out inspection and determinationof taxable value of 2 groups including cars and motorbikes, and strong alcohol, wines and beer. Customs branchesare responsible for directing the officers of procedure teamsto strictly implement inspection of shipments to identify suspicious signs where theyhave been at a value lower than the reference price and risk category issued by the General Administration of Customs; shipments withdeclared price which is lower than identical or similar goods,and no suspicious signs; shipments ofemerginggoods inthe Vietnam market,and with no price database for comparison. Customs officers are responsible for updating immediately (marking red) within the same day or no later than the day after. Within 3 days (working days) from the date of release or clearance of goods, officers shall transfer the file to the consultantdepartment (or PCA) at Customs branches or HCM City Customs to inspect, and identify taxable value.

The Import & Export Duty department assigns specific targets for officers to strive to complete the task. Accordingly, from 1-10-2016 to 31-12-2016, strive to increase revenue for the State budget from the consultation and PCA of 60 billion vnd, increasing the State revenueby160 billion vndin 2016. Consultation documents completed within 20 days (instead of 30 days); PCA documents at Customs offices strive to complete in 40 days (instead of 60 days). This unit also is determined to gradually raise the taxable value as close as possible to the actual transaction value at each time and the reference price set by the General Department of Customs.

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By Thu Hoa / Tuan Cuong