Customs sector: Focusing on modern management and accomplishing tasks on revenue collection

	Customs sector collected 133.5 billion VND of tax debt
	The tax sector reduce the loss by more than 13,000 billion VND through inspections
	Customs: Increase revenue collection by 1,145 billion/month from importing automobiles

Deputy Minister Vu Thi Mai stated at the conference. Photo: Q.H

Accelerating Customs supervision modernization

Discussing the expansion of the project on Customs supervision and management for import and export goods at seaports, airports, land border gates, warehouses, yards, inland ports, centralized check points and bonded warehouses, Deputy Director of Customs IT and Statistics Department Le Duc Thanh, said that as of 30th September 2018, the General Department of Vietnam Customs determined to accomplish the deployment of Vietnam Automated System for Seaport Customs management (VASSCM) nationwide with functions of management for goods that are in and out, stored and backlogged at warehouses, yards, seaports, airports and sites subject to Customs supervision.

Also, the leader of Customs IT and Statistics Department added that as of 30th November 2018, the VASSCM deployment will be completed nationwide with detailed management functions by commodities on the change of goods status, goods owners during the storage at bonded warehouses. Accordingly, accelerating the VASSCM deployment to instruct enterprises on declared message standards and information exchange with Customs authorities for sites subject to Customs supervision (express delivery warehouses, sites for gathering goods); standardizing the supervision at the sites subject to Customs supervision)

Improve message standards on connection and information exchange between enterprises and the Customs authorities. For airports, air cargo terminals, message standards shall be upgraded to version 1.6 (supplementing 2-way feedback mechanism and information query mode).

One of the most important tasks in Customs management and supervision over past times is the management and supervision for the imported scraps. According to the Acting Director of Customs Control and Management Au Anh Tuan, in order to prevent violations, the Customs has actively taken measures on close control, supervision and inspection for imported scraps, in which, it strengthened inspections, control and supervision for scraps and imported scraps; invested and verified enterprises which have signs of violations with scrap imports.

In addition, in order to effectively implement the State management on Customs for imported scraps and comply with the Prime Minister in Directive No. 27/CT-TTg on management of scrap imports, the Customs Control and Supervision has proposed that the Customs authority shall inspect and make the monitoring sheet for certificates for eligibility on environmental protection in importing scrap as raw materials for production and inspect certificates of deposit before allowing scrap to be discharged from ship to port.

At the conference, Director of Ho Chi Minh City Department Dinh Ngoc Thang, said that the Department coordinated with warehouses, yards, and port operators to deploy VASSCM effectively and remove obstacles in Customs supervision at seaports.

In order to strictly handle backlogged scraps, Mr. Thang proposed the General Department of Vietnam Customs and the Ministry of Finance to propose the Government to assign the Ministry of Natural Resources and Environment as the leading agency to coordinate with relevant ministries and sectors such as: Ministry of Transport, Ministry of Public Security and Ministry of Finance. To establish the inter-sector handling team for handling shipments of backlogged imported scraps under the direction and inspection of the Government’s Office. For the long term, the Law on Maritime, the Law on Handling of Administrative Violations, and the Law on Environmental Protection should be amended and supplemented.

Commenting on this content, Director of Hai Phong Customs Department Nguyen Tien Loc, said that the department has actively handled backlogged goods and scraps at ports, in which, classifying goods to strictly handle these goods.

Determining to exceed the revenue target

Assessing the revenue collection of the Customs sector in the last 3 months of 2018, Mr. Luu Manh Tuong, Director of Import and Export Duty Department said that the Customs’ revenue will be significantly impacted by FTAs, in addition, the revenue from crude oil will sharply decrease, which means that the Customs’ revenue in the last months of the year will fall compared to the average revenue in the first 9 months of the year.

On the other hand, the revenue in 9 months of 2018 will be affected by tax refunds for auto parts. According to Decree 125/ND-CP dated 16th November 2017, the tax refund for auto parts is VND 2,489 billion, and for petroleum products due to enterprises adding C/O is VND 1,951 billion. Accordingly, total tax refund in the last months of the year is VND 4,440 billion. This puts great pressure on the Customs’ total revenue.

In order to complete the task of revenue collection in 2018, Mr. Tuong requested Customs units to effectively implement the assigned tasks in Directive No. 555/CT-TCHQ dated 26th January 2018 and Official Letter 4248/TCHQ-TXNK dated 19th July 2018, implementing solutions on revenue collection in the last six months of 2018, including the compliance of Tax policies and management.

Accordingly, the first solution group is that the head of Customs units need to develop detailed solutions to facilitate enterprises and focus on deploying the Customs sector’s major schemes, such as the Scheme on Customs supervisions and management at seaports and airports; the Scheme on control on management for goods procedure and process for export; Scheme on Tax payment and Customs clearance 24/7 to facilitate the imports and exports, and restricting the taking advantage of loopholes of policies by enterprises for profits, thereby, increasing State revenues.

Along with that, a series of anti-loss measures were also provided by Mr. Tuong, such as strengthening Customs control to promptly detect smuggling and trade fraud, causing revenue losses. In which, focusing on price control and reviewing the list of risk management on price to identify suspicious signs and effectively implement consultation and post clearance audit; the classification and tax rate application need to be focused to prevent inaccurate classification. Reviewing cases subject to tax exemption, especially, tax exemption for investment incentive projects, due to the differences in investment incentive policies between the Law on Import and Export Duty No. 45/2005/QH11 the Law on Import and Export Duty No. 107/2016 / QH13.

To focus on analyzing and assessing risks after Customs clearance for goods in Green channel to promptly implement post clearance audit or inspection to warn for the Customs clearance to prevent mistakes; Collecting recoverable debts and not to arise debts, especially debts after inspection and post-clearance audit; handling debts having obstacles in inspection.

Director of Ho Chi Minh Customs Department Dinh Ngoc Thang, Director of Hai Phong Customs Department Ngueyn Tien Loc, and Director of Quang Ninh Customs Department Bui Van Khang, affirmed that they will remove difficulties due to impacts on tax rate reduction of FTAs, effectively implement plans on modernization of Customs supervision to fulfill the highest assigned targets and prevent revenue losses.

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Agreeing with solutions provided by the General Department of Vietnam Customs and comments on the State revenue collection, Deputy Minister Vu Thi Mai emphasized that the revenue collection by the Customs sector must closely follow the solutions to exceed the revenue target of VND 293 trillion; comprehensively implement solutions on anti-tax losses, such as anti-smuggling, post clearance audit and debt recovery, to accurately collect into the State budget, especially the inspection of tax refund.

Directing the revenue collection, the Director General of Vietnam Customs Nguyen Van Can requested provincial and municipal Customs departments to follow the direction of tasks in the Directive on State revenue collection. In particular, focus on measures to facilitate trade and strict control of revenue-related factors to achieve the revenue target of VND 300 trillion.