Dong Nai Customs supports businesses in context of reduced revenues

	Many customs procedures for specialised inspection
	Da Nang Customs: Handling procedures complying with regulations, do not ask for more documents
	Customs sector determines to achieve revenue target

Dong Nai Customs officers inspect imported machinery and equipment. Photo: N.H

Revenue decreases

In 2020, Dong Nai Customs Department was assigned the State budget revenue target of VND19,300 billion. Accordingly, the average monthly revenue of the unit must be VND1,608.3 billion. However, in February 2020, the unit only collected VND1,398 billion, the first two months of 2020 the unit’s revenue was VND2,452 billion, down 14.8% compared to the same period in 2019 and only about 13% of the year’s target.

According to Dong Nai Customs Department, the US-China trade war and other negative impacts from the world economy have significantly affected import-export activities, leading to a decrease in import turnover. Therefore, tax revenue at the unit decreased by VND102.6 billion. In particular, Hung Nghiep Co., Ltd. an importer of machinery, equipment, tools, spare parts, raw materials for production of fibres and coal reduced VND88.4 billion in revenue compared to the same period in 2019. Similarly, revenue of Posco VST Co., Ltd. (an importer of steel materials) fell by VND14.2 billion compared to the same period last year.

Along with that, some items recorded lower import turnover, leading to a decrease in tax amount compared to the same period last year. Import turnover of iron and steel products decreased by 24%, equivalent to a decline of VND63.6 billion in tax revenue compared to the first two months of 2019. The import turnover of other machinery, equipment, tools and spare parts also decreased 13%, equivalent to a decline of VND54.3 billion in tax revenue. The import turnover of plastic materials also reduced 12.6%, equivalent to a decline of VND53.6 billion of tax revenue over the same period last year.

In addition, due to the Covid-19 epidemic, taxable import and export turnover of businesses to countries and territories affected by the epidemic has sharply reduced because of the suspension or reduction of import and export transactions to prevent the epidemic, impacting for example some businesses importing goods and raw materials from China and South Korea such as Pouchen Company, Changshin, TeaKwang, Hyosung, Chinh Tan, Formosa and HwaLong. It is likely that in March 2020, the tax collection situation will continue to plummet due to running out of reserve raw materials.

Efforts to maintain revenues

Facing a complex epidemic situation, affecting the State budget revenue at the unit, Dong Nai Customs Department has taken many solutions to support businesses in customs operations to minimize the negative impacts on revenues. After the Lunar New Year, when the epidemic situation was rising and it was likely to affect importers and exporters, Dong Nai Customs Department sent a delegation including leaders of the department, divisions and branches to some large businesses in the province to understand problems they have encountered to solve and facilitate the businesses with customs clearance.

Along with that, Customs branches enhanced exchange and captured information with businesses in the area, especially Chinese businesses and businesses with a large proportion of imports and exports with China and businesses that deal in items that are likely to be affected, such as garments and footwear. Leaders of branches often contact businesses to grasp import-export activities and difficulties of businesses to take measures to support such as arranging human resources to quickly clear goods for businesses, solving difficulties and problems. At the same time, branches introduce domestic suppliers of raw materials to businesses to study solutions to find alternative sources of domestic raw materials.

The leaders of Dong Nai Customs Department also directed heads of divisions, managers of branches to develop detailed plans to support businesses in stabilising production after the epidemic ends. Accordingly, capturing the quantity and names each business with production interruption due to the direct impact by Covid -19 pandemic. Thereby, analysing and assessing the extent of damage caused by the pandemic by collecting information from businesses, domestic tax authorities and compared with import and export turnover of businesses over the same period last year, revenue and remittance to the State budget to the Customs agency. From the collected information, Dong Nai Customs Department will report and proactively propose to the General Department of Customs, relevant ministries and agencies plans and solutions to support businesses in import and export activities on tax policies, commodity management policies in a timely fashion.

Lang Son: Goods cleared at border gates plummeted VCN- In the last two days, for some reasons, the volume of vehicles transporting goods cleared at ...

Dong Nai Customs Department is developing a detailed plan on prioritising customs clearance for businesses affected by the epidemic, facilitates quick clearance of goods, minimises demurrage charges, detention charges and freights, arrange professional staff to work overtime to handle procedures for import and export of goods to meet production materials of businesses and export goods in the contract time, avoiding fines for delayed delivery of goods for foreign partners.