Customs revenue falls 14.66%

Officers of HuuNghi Customs Department inspect imported cars. Photo: H.N

According to the Import and Export Duty Department, although the economy is recovering and import and export activities show signs of prosperity compared to the first months of the year, due to the impact of the Covid-19 pandemic, trade is restricted, goods demand declines, customs clearance faces difficulties, labour resources and the "health" of businesses decreases and goods prices plummet.

In addition, at the time of estimation, crude oil price is forecasted to reach US$60/barrel. However, up to now, the decrease in price of crude oil to 40 USD/ barrel has directly decreasedthe value of import and export products, and indirectly reduced State budget revenue.

In addition, the participation in international economic integration and free trade agreements, opportunities and challenges will be shared equally for all parties, and will have two-way effects on the our country's economy.

Specifically, import and export turnover in the first 10months of the year reached US$439.81 billion, increasing by 2.65% year-on-year. Of which, total export value reached US$229.65 billion, increasing by 4.9% and total import value reached US$210.16 billion, growing by 0.3% year-on-year. Currently, the lostrevenue due to the impact of free trade agreements was VND 8,200 billion.

Major customs departments’ revenue decreasedsuch as HCM City Customs Department’s revenue was VND 82,957 billion, reaching 72.14% of the estimate, falling 16.56% year-on-year; Hai Phong Customs Department’s revenue was VND 43,879 billion, reaching 65.49% of the estimate, 24.34% less thanthe estimate; Dong Nai Customs Department’s revenue was VND 11,819 billion, reaching 61.24% of the estimate, dropping by 23.3%; Ba Ria Vung Tau Customs Department’s revenue was VND 13,665 billion, hitting68.33% of the estimate, falling 16.46% year-on-year; Hanoi Customs Departmen’s revenue was VND 18,122 billion, reaching 77.78% of the estimate, decreasing by 9.67% year-on-year; Binh Duong Customs Department’s revenue was VND 12,106 billion, reaching 70.80% of the estimate, declining 8.59%; Bac Ninh Customs Department’s revenue was VND 8,229 billion, reaching 74.14% of the estimate, downby 3.58%; and Ha Nam Ninh Customs Department collected VND 4,368 billion, reaching 58.24% of the estimate, dropping 28.95% year-on-year.

Revenue of the eightcustoms departments which have largest contribution to the whole sector's revenue, recorded a year-on-year decrease of 17.72%. If the estimate of these eightdepartments accounted for 83% of the total estimate of the whole sector, by the end of October 31, these eightdepartments collected VND 195,147 billion, reaching 69.62% of the total estimate of VND 280,300 billion.

Some departments’ revenue fellcompared to the same period last year such as HCM City Customs Department, Hai Phong Customs Department, Dong Nai Customs Department, Quang Nam Customs Department and Da Nang Customs Department. The reason for the sharp decrease in revenue of was due to the impact of Covid-19 pandemic which led to a the decline in import turnover of major commodities such as machinery, equipment, cars, petroleum products, auto spare parts of enterprises that have suffered from difficulties in production and business, suspended or stopped production and business activities.

However, in the first 10 months of the year, some provincial and municipal customs departments reported good revenue. Can Tho Customs department collected VND 2,885 billion, or 122.72% of the estimate, resulting from the increase in imports of machinery and equipment for the Duyen Hai 2 Thermal Power Plant project; KhanhHoa Customs department’s revenue VND reached 3,163 billion, or 210.93% of the estimate, due to the increase in the imports of petroleum products by Van Phong petroleum bonded warehouse. In addition, there are wind and solar power projects in the province; Quang Ngai Customs department’s revenue Quang Ngai Customs Department reached VND 4,319 billion, or 157% of the estimate, resulting from the increase in the imports of raw materials, machinery and equipment for production by the Hoa Phat Dung Quat Steel Joint Stock Company; Binh Phuoc Customs Department’s revenue hitVND 1,276 billion VND, or 159.58% of the estimate, resulting from the increase in the imports of high value machinery and equipment of investment projects.

In the remaining twomonths of 2020, to achieve the estimated revenue, the whole custom sector continues to implement policies and solutions on customs procedures to facilitate enterprises. Focus on preventing revenue loss, post clearance audit and preventing tax debts. In particular, the customs sector will strictly and drastically combat smuggling, trade fraud and origin fraud.