8 solutions to perform revenue collection of Customs industry in 2024

Customs proactively and regularly removes problems for businesses

The challenge lasted for 12 months

In 2023, the estimated revenue of the Customs sector is built on basis of GDP growth of 6-6.5%; crude oil price at US$70/barrel; export turnover up 8-9% and import turnover up 7-8%.

As of December 17, the total revenue of the whole Customs industry sees a 16% year-on-year decrease to VND353,033 billion, meeting 83.1% of the estimate.

Director of the Import-Export Duty Department Le Nhu Quynh said that the revenue reduction results from difficulties and challenges of world economy. Most economies see lower growth than the estimate; inflation is controlled but remains high level, leading to tightened monetary policy, world public debt increasing to record levels, meanwhile, Russia - Ukraine conflict and Hamas - Israel conflict continue to grow tense; unstable geopolitical status, food security, natural disasters, climate change... are increasing.

The shopping trend of consumers around the world has plummeted, the global supply chain continues to face the risk of disruption, leading to many consequences for import-export activities and economic growth.

Director of Import and Export Duty Department Le Nhu Quynh give a speech at the online conference to review performance 2023 and set out task for 2024. Photo:Q.H

The Director said that major Vietnam's export partners such as the United States and the EU have reduced their procurement targets, causing the decrease in volume of orders. The fluctuation of gasoline prices is also the reason for the plunge of the total turnover of taxable import-export goods.

According to Director Le Nhu Quynh, the revenue from four groups of imported products has dropped, leading to strong impact on revenues from import-export activities.

The import turnover of raw materials, machinery, equipment, and spare parts imported for production such as: coal, chemicals and chemical products, plastics, iron and steel, textile and garment raw materials, and electronic components, auto components... that account for 57% of total taxable import turnover, fell 16.7%, so the revenue dropped VND32,200 billion year-on-year.

Regarding the imported petroleum group, due to the preferential tax rate of 5% on gasoline imported from the ASEAN market and 0% on DO oil and FO oil, firms mainly import from ASEAN member states instead of importing from Korea with tax rate of 8%. Therefore, import volume increased by 21.4% but revenue decreased by about VND 2,400 billion compared to the same period in the previous year.

As for the imported crude oil, crude oil prices decline by 19.4% compared to 2022, leading to the reduction by VND 2,300 billion in revenue.

The volume of imported CBU cars fell 26.8% to 110,771 cars, reducing revenue by about VND 4,700 billion year-on-year.

The implementation of Government’s Decree 44/2023/ND-CP reducing VAT for some items from July 1, is also the cause of revenue reduction, the VAT amount in 2023 is estimated to decrease by about VND9,000 billion, the Director said.

Drastically implementing 8 solutions for revenue collection in 2024

In Resolution No. 104/2023/QH15 dated November 10, 2023, the National Assembly assigns the estimated revenue of VND375,000 billion to the GDVC, including revenue from export of VND8,200 billion, from import of VND47,500 billion, from Special consumption tax of VND 38,000 billion; from Environmental protection tax of VND 1,200 billion; from VAT of VND279,400 billion and other revenues of VND 700 billion. Meanwhile, the estimate 2024 is built on the basis of GDP growth of 6-6.5%; Crude oil price is estimated at 70 US$/barrel.

In order to strive to accomplish the target in 2024, the GDVC has drastically implemented 8 solutions.

Officers of Ha Nam Ninh Customs Department at work. Photo: H.N

Firstly, the GDVC continues to reform and streamline administrative procedures, promptly resolve problems related to customs procedures, tax policies, tax administration, accounting regime, tax refund, tax exemption, and removes difficulties and facilitates importers and exporters. The GDVC promotes cooperation with banks and payment intermediary service providers to ensure that taxpayers can pay taxes anytime, anywhere, by any devices.

Secondly, continue to apply international standards and modern customs management processes to facilitate the business community while still ensuring strict supervision and control in line with regulations.

Thirdly, from beginning of the year, local customs departments strictly manage revenue collection; review and monitor revenues; research, propose and implement solutions to increase revenue and prevent revenue loss; proactively evaluate the impact of international integration commitments on the state revenue.

Fourthly, the Customs focuses on reviewing and monitoring tax debts; classifies debt groups, tax debt status of enterprises, and propose handling measures; drastically enforces and collects tax debts, reduces outstanding tax debt and publicizes tax debtors; prevents new tax debts and tax debts at December 31, 2024 higher than December 31, 2023.

The customs strengthens information collection and risk identification to provide inspection, supervision and control measures; conducts post-clearance audit, specialized inspection, fight against smuggling and trade fraud; inspects quantity, customs value, code and origin of goods, and prevents revenue loss in the area.

Fifthly, checks name, code and tax rate of goods at the customs clearance, the post clearance audit to detect and handle cases that falsely declare code and name of goods to enjoy low tax rate or tax incentives, especially focuses on list of imported and exported goods showing risks on classification and application of tax rates.

Sixthly, the Customs implements customs inspection and valuation during customs process, checks post-customs audit for items and enterprises showing high-risks on customs value declaration to identify correctively customs value and taxable value; applies measures to check and verify the accuracy and truthfulness of customs valuation submitted by businesses to prevent and detect cases of price fraud, thereby handling in accordance with the law.

Seventhly, the Customs improves inspection, review, and handling of tax-exempt and non-taxable subjects specified in the Law on Import and Export Duty; implements tax exemption procedures in Decree 134/2016/ND-CP and Decree 18/2021/ND-CP and guiding documents of the Ministry of Finance; strictly controls tax refunds and handle overpaid taxes.

Eighthly, the Customs enhances management, information collection, and situation forecasting; focuses on fostering and training to improve qualifications and capacity for Customs officers.