Customs Sector faces major challenges in revenue collection

	Thanh Hoa Customs attracts and supports enterprises in the customs process across Nghi Son Port
	Thanh Hoa Customs promotes import and export growth

Ninh Binh Customs Branch (Ha Nam Ninh Customs Department) assigns officers to support enterprises. Photo: H.Nu

Turnover of commodity group plunges

According to Import and Export Duty Department, in the seven months of the year, Vietnam’s total import and export turnover saw a year-on-year decrease of 13.8% to US$ 374.36 billion. The export turnover was reduced by 10.3% to US$ 195.42 billion and import turnover declined by 17.4% to US$ 178.94 billion.

The total import and export turnover decreased sharply, which has a significant impact on the State revenue collection of the Customs sector. As of July 31, the Customs revenue dropped 19.6% to VND 211,230 billion compared with the previous year, reaching 49.7% of the estimate. The revenue in July fell 14.6% month-on-month to VND 26,235 billion.

The representative of the Import and Export Duty Department said that the total import and export turnover of the whole country in the month decreased by 20.5%. The taxable import turnover went down 20.2% to US$ 68.6 billion and the taxable export turnover declined 24.8% year-on-year to US$ 3.9 billion.

The taxable import turnover of some commodity groups saw a year-on-year decrease of 25.7% such as raw materials, machinery, and equipment, spare parts imported for production (including coal, chemicals, chemical products, plastics, iron and steel and scrap, textile and garment materials, electronic components, auto components, etc.), accounting for 56% of the total taxable import turnover, reducing the State revenue by about VND29,400 billion compared with the same period in 2022. The imported petroleum group gained 4.9 million tons, with an import turnover of US$ 3.9 billion, up 15.7% in volume but down 13.1% in volume, reducing revenue by about VND2,650 billion year-on-year.

As of July 31, the revenue of 10 major local customs departments, accounting for 87% of the revenue estimate of the whole sector such as HCM City, Hanoi, Hai Phong, Binh Duong, Dong Nai, Bac Ninh, Thanh Hoa, Ha Tinh, Ba Ria-Vung Tau, Quang Ninh, dropped 15.95% to VND187,462 billion compared with the previous year, meeting 187,462 billion.

Only Quang Ninh Customs Department’s revenue increased by 7.05%, and the revenue of the nine remaining customs departments plunged. For example, Dong Nai Customs Department is down 30.75%, Binh Duong Customs Department is down 27.9%, Ha Tinh Customs Department is down 26.73%, Ba Ria- Vung Tau Customs Department down 25.18%, Bac Ninh Customs Department down 17.06%, Ha Noi Customs Department down 15.46%... The decrease in the revenue in this department stemmed from the decline of 20%-50% in import turnover of raw materials, machinery, and equipment imported for production such as coal, chemical products, and plastics.

According to the Import and Export Duty Department, in addition, the revenue of some items showed positive results. Notably, the import turnover of CBU cars reached US$ 1.85 billion or 79,701 cars, up 2.3% in volume and 0.4% in value, increasing the revenue of VND4,800 billion. The revenue from crude oil recorded US$ 4.1 billion or 6.7 million tons, up 38.7% in volume and 5.2% in value, increasing the revenue of VND 280 billion year-on-year.

Comprehensively implementing solutions

To achieve the revenue target, the General Department of Vietnam Customs has directed its subordinate customs branches to implement solutions to facilitate trade and prevent revenue loss under Directive No. 479/ CT-TCHQ. The country’s top regulator has requested units to follow and assess the revenue collection in 2023 and develop the estimate for 2024-2026 in line with the actual situation.

The units in the whole Customs sector need to implement Customs reform and modernization, facilitate trade, and reduce customs clearance time and cost. Drastically and effectively implement Decision No.123/QD-TCHQ with the goal of reducing the rate of Yellow and Red channels... and customs clearance time by 10%.

Strengthen measures to prevent revenue loss by inspection and supervision. Accordingly, use human resources to prevent revenue loss in quantity, weight, category and name of goods; strengthen the use of container scanners for detection of suspicions; implement solutions to control imported general goods in accordance with Official Dispatch No. 119/TCHQ-GSQL improving the effectiveness of customs inspection and control.

Take measures to control customs valuation in customs clearance and post-clearance audit; prevent and handle cases of undervaluation for trade fraud and tax evasion; regularly review to promptly detect and handle cases that the same item but the results of analysis and classification are not consistent within the customs branches, local customs department and the Customs Department of Goods Verification; strengthen measures to improve the effectiveness of anti-fraud and origin forgery; strictly control the tax exemption, reduction, and refund in line with regulations, and inspection of the law compliance.

In particular, implement irregular inspections of imported cars operating in amusement parks and entertainment areas that are not subject to special consumption tax at some local customs departments.

Review, classify, recover, and handle tax debts arising before January 1 under 4 groups: bad debts, pending debt, frozen debt, and recoverable debt. At the same time, apply appropriate solutions for each debt group under instructions.

The General Department of Vietnam Customs also requested its departments to continue studying and perfecting the draft Circular amending Circular 178/2011/TT-BTC; Decision replacing Decision No.1810/QD-TCHQ dated June 15, 2018; the list replacing the List issued together with Decision No. 1769/QD-TCHQ dated August 11, 2022, and Decision 186A/QD-TCHQ dated February 14, 2023.