Anti-revenue loss goes hand in hand with trade facilitation: Da Nang Customs

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Import and export activities at Da Nang Port. Photo: Ngoc Linh

Implementing unified solutions to support private sector

According to Import-Export Duty (Da Nang Customs Department), although the import-export activities in the area sees positive results through the year-on-year increase in taxable import and export turnover, the state revenue still decreases compared to the same period in 2023.

According to Da Nang Customs Department, the decrease in the revenue results from the uneven increase and decline in export and import turnover of taxable commodity groups. Although most taxable turnover of commodity groups rises, the turnover of commodity with high revenue as auto components and spare parts plunges. Moreover, the revenue structure of the Da Nang Customs Department shows that value added tax accounts for 66.6%; and the 2% VAT reduction also drops the revenue. In the first 6 months of the year alone, the reduced VAT revenue is about VND115 billion.

In the last months of 2024, Da Nang Customs Department forecasts that the import and export activities will not strongly change compared to the beginning of the year. Import-export turnover in general and taxable import-export turnover in particular will not see sudden fluctuations compared to the first half of the year. Da Nang Customs Department estimates that the expected revenue for the whole year of 2024 will only reach VND3,200 billion, reaching 91.4% of the assigned target, or 100.4% compared to 2023.

To create positive changes in revenue collection, in addition to supporting and removing difficulties and obstacles for businesses at dialogue conferences, Da Nang Customs Department has actively held Customs-Business dialogue conferences to provide new policies to remove problems for enterprises; encouraged individuals, organizations and businesses to cooperate, share and accompany the Customs. Additionally, the department has deployed the “Pilot program to support and encourage businesses to implement export and import activities in Da Nang city”, which was appreciated by enterprises.

Customs Branches of Da Nang Customs Department have also provided and deployed solutions to facilitate trade and increase revenue. In the third quarter of 2024, the department will organize a dialogue conference with businesses to update new documents, recommend errors in customs declarations and dialogue to promptly resolve problems and create favorable conditions for import and export activities. At the same time, the department will survey and review to select from 3 to 4 businesses with large import-export turnover in the management area to discuss and grasp difficulties and problems to support and facilitate businesses.

Actively coordinate to collect tax debts

In parallel with facilitating import and export activities, Da Nang Customs Department has implemented solutions to prevent revenue loss through customs inspection and supervision, and review of customs value declaration, goods classification, and tax rate codes. The department has monitored tax debt groups, debt classification and tax debt status of enterprises; cooperated with the Police, Department of Planning and Investment, the Taxman, People's Committee of communes and wards where taxpayers register business addresses... to verify operation status of the enterprise; urged debt recovery; and applied measures to enforce and classify debts.

To improve the effectiveness of anti-revenue loss and outstanding debt collection, the department issued a program on anti-revenue tax loss for exported and imported goods in Da Nang city for 2024-2027. Accordingly, the Department implements practical solutions to prevent revenue loss such as goods classification, customs valuation, tax policy, C/O inspection; post-clearance audit; internal inspection and examination; risk management; combating smuggling and trade fraud... The program also offers solutions to coordinate with specialized authorities such as: Taxation, Banking, Police, Border Guard, Market Surveillance ... to exchange and provide information.

As an area where export and import activities take place vibrantly and with a variety of goods, Da Nang SeaPort Border Gate Customs Branch contribute the annual revenue of Da Nang Customs Department, but the branch is also the unit manages the outstanding debt accounting for the majority of the outstanding debt of the whole Department.

According to Da Nang SeaPort Border Gate Customs Branch, bad debts of dissolved enterprises, no longer operating at the registered address, or had their business registration certificates revoked account for more than 80%. For debts arising before July 1, 2020 of tax debtors that no longer exist, the Branch has completely resolved under Resolution No. 94/2019/QH14 on tax debt freezing, cancellation of late payment interest and fines for taxpayers who are no longer able to pay the state budget. Currently, the Branch focuses on handling collectable tax debt of businesses under the target assigned by the department, bad debts of businesses that are not eligible for debt freezing and cancellation under the Law on Tax Administration.

The branch promotes the application of the measure of temporary exit from the country for legal representatives of businesses who are forced to execute administrative decisions on tax management; coordinates with the police to seek for business owners who owe taxes to urge them to pay tax debt to the state budget. The coordination with the police brings many positive results. The branch contacts many business owners who delaying in fulfilling their tax payment. After being encouraged by the Customs, many businesses have proposed to gradually pay tax debts.