Dong Nai Customs: Creative solutions to nurture source of revenue

Dong Nai Customs officer provides procedural guidance to businesses. Photo: N.H

Many goods achieve good growth

Mr. Cao Ngoc Tam, Head of Import-Export Duty Division – Dong Nai Customs Department, said that, in the first 4 months, the import turnover with tax increased by US$311 million leading to a corresponding tax was US$764 billion. For example, machinery, equipment, tools, and other spare parts had a turnover rise of 68%, leading to an increase of 49% in taxes, reaching VND 805.67 billion; Other base metals saw turnover growth by 96% and tax amount increased by 102%, reaching VND 458 billion; computers, electronic products and components witnessed turnover increase by 62%, tax amount increased by 67.5%, reaching VND 109 billion; textile fibers and yarns of all kinds increased turnover by 38%, tax amount increased by 31.5%, reaching VND 112 billion; wood and wood products turnover increased by 112%, taxes increased by 84.6%, reaching nearly VND 46 billion...

Talking to Customs Magazine, Mr. Pham Van Huong, Deputy Manager in charge of Dong Nai Port Border Gate Customs Branch, said that the department's revenue collection situation from the beginning of the year until now is more positive than the same period last year. Currently, revenue at the branch has reached nearly 50% of the yearly target. If the current collection progress continues, the department's revenue results of 2024 will grow by about 10-15% compared to 2023.

Mr. Pham Quang Quoc, Manager of Nhon Trach Customs Branch, said that import-export turnover recorded growth in many enterprises that have relatively recovered in production such as the electronics and chemical industries. Thanks to that, the revenue collection results in recent months have met the unit's set progress.

In Binh Thuan province, Mr. Tran Van Thong, Director of Binh Thuan Port Border Gate Customs Branch, said that in previous years, the state revenue collection situation at the branch was very difficult. However, due to intense hot weather, Vietnam Electricity Group (EVN) increased coal imports to produce electricity, helping revenue from this item grew dramatically by 80% over the same period last year, reaching nearly VND 156 billion. In addition, petroleum products also increased by 134%, reaching VND63 billion, because Dung Quat factory was undergoing maintenance, forcing businesses to import petroleum from abroad.

Practical solutions to support businesses' recovery

Although the overall results are relatively positive, looking the revenue picture of Dong Nai Customs Department in the first four months of the year, there are still some points that are not really positive.

According to Mr. Cao Ngoc Tam, many items recorded a decline besides the items that bring in high revenue growth. Typically, revenue from motorbikes and components and spare parts dropped by nearly 72% (equivalent to a decrease of VND 32.48 billion) due to a 66% decrease in taxed import turnover; revenue from iron and steel of all kinds reduced by 8.4%, a drop of VND 541.43 billion due to a decrease in import turnover of 13%; fertilizers of all kinds decreased by 66%, reaching only VND 1.44 billion due to a decline of 68% in turnover. Many other products also have reduced import turnover and revenue such as other products from oil, liquefied petroleum gas, paper, paper products, rubber products...

In addition, the policy of reducing VAT from 10% to 8% following the Decree No. 94/2023/ND-CP dated December 28, 2023 (effective from January 1, 2024 to June 30, 2023) 2024) reduces VAT revenue in the first months of 2024 by more than VND 200 billion, focusing mainly on machinery and equipment groups, tools and spare parts, chemicals, paper...

Along with that, the leather, footwear and fiber industries have not recovered yet. According to information exchanged with large enterprises in this industry, it is forcasted that the situation will have clear changes by the end of the third quarter of 2024.

Similarly, in Binh Thuan province, revenues from machinery, equipment, tools, and other spare parts also decreased by 76.5% compared to the same period in 2023. The reason is due to the import turnover of this item decreased by 71%. Mr. Tran Van Thong said that in previous years, Binh Thuan Port Border Gate Customs Branch carried out procedures for many shipments of imported machinery and equipment to create fixed assets for wind power and thermal power projects. However, this year, these projects have all been put into operation and no new projects have arisen, so revenue from this item has dropped sharply. Meanwhile, it is difficult to predict the import situation of coal and petroleum products in the coming time. If the weather is favorable, EVN's import demand may decrease. Petroleum imports will also decrease if Dung Quat oil refinery resumes operations.

Faced with potentially difficult factors for revenue collection, Dong Nai Customs Department determined that facilitating trade and supporting businesses to recover is an important solution to complete the assigned targets this year. Accordingly, the unit synchronously deployed solutions to improve the efficiency of business contact; promptly handle problems, improve reputation, develop a transparent and equitable import-export operating environment for the business community to attract investment, and develop and protect revenue sources for the unit.

Mr. Pham Van Huong said that for 20 enterprises contributing large revenues at the unit, the branch has arranged civil servants to monitor the import-export situation and weekly revenue collection. All difficulties and problems are grasped and thoroughly resolved as soon as possible. In addition, from the beginning of the year until now, the branch has also met with more than 10 businesses to understand difficulties and have support solutions promptly. Revenue control, revenue loss prevention, and tax debt management are also strictly implemented. Thanks to that, there is no tax debt arising at the unit.

At Nhon Trach Customs Branch, last May, the unit organized a dialogue conference with businesses. In particular, it focuses on the group of small and medium-sized enterprises that are completing procedures in two places to invite businesses to complete procedures at the branch. Mr. Pham Quang Quoc said that besides disseminating new policies, at the conference, the branch also presented the unit's support solutions to the businesses.

The notable initiative is the solution to connect businesses along the supply chain. Accordingly, the branch has captured and identified businesses manufacturing products that are inputs for other businesses and connected businesses with each other. Typically, Rotong Company, which specializes in manufacturing electric motors, has been successfully connected by the department to supply products for a vacuum cleaner manufacturing company. “This is the added value that businesses get when carrying out procedures at the unit. Thereby helping businesses reduce costs and recover faster" - Mr. Pham Quang Quoc shared.