Drastically implementing solutions for budget collection

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Customs officers at Tra Linh border gate Customs branch under Cao Bang Customs Department at work. Photo: T.Binh

Sharp decline in four major groups

According to the General Department of Customs, total import-export turnover in the first 10 months of the year is estimated at US$557.95 billion, down 9.6%, or US$59.49 billion year-on-year. Of which, Exports dropped 7.1%, or US$22.22 billion to US$291.28 billion. Imports also reduced 12.3% or US$37.27 billion year-on-year to US$266.67 billion. Thus, the trade balance is estimated to have a trade surplus of US$24.6 billion.

The decrease in total trade turnover in 10 months has had a great impact on the state budget collection of the Customs sector. As of November 6, the entire Customs sector collected VND306,457 billion, only 72.1% of the estimate, down 17.3% compared to the same period in 2022.

According to the Import-Export Tax Department, the decrease in revenue is that the total taxable import-export value of the whole country in the first 10 months of the year reduced by 15.9% ywar-on-year. Of which, taxable export turnover reached US$5.9 billion, down 22.5% and taxable import turnover reached US$101.6 billion, down 15.5% over the same period last year.

Moreover, the main reason is the sharp decline in taxable imports of some commodity groups compared to the same period in 2022. Typically, imports of raw materials, machinery, equipment, and spare parts for production services such as coal, chemicals and chemical products, plastics, iron and steel, textile and garment raw materials, electronic components, auto components reached US$57.7 billion, accounting for 56.8 % of total import turnover, decreasing by 18.8%, reducing budget revenue by about VND32,800 billion year-on-year.

The second group of goods affecting revenue is the petroleum imports reaching 7.1 million tons, worth US$5.9 billion. Although it rose in both volume and value, it still reduced by about VND765 billion compared to the same period last year. Explaining this, the representative of the Import-Export Tax Department said that this is because the import preferential tax rate on gasoline from the ASEAN market is 5%, on DO oil and FO oil is 0%. Meanwhile, businesses mainly import from ASEAN instead of from Korea with a gasoline tax rate of 8%, which has had a strong impact on reducing revenue.

Crude oil imports in 10 months reached 9 million tons, worth US$5.7 billion, an increase of 11.6% in volume but a decrease of 10% in value, the reason is said to be a 19.4% decrease in crude oil prices compared to 2022 will, lead to a decrease in revenue of about VND 1,700 billion.

The group of imported CBU (completely built-up) cars in the first 10 months of the year also decreased down 19.7% in volume and 17.1% in value to 103,270 units, and US$2.4 billion respectively, reducing revenue by about VND150 billion compared to the same period in 2022.

Enhancing trade facilitation and prevent revenue loss

Facing the above situation, to complete the task of state budget collection at the highest level, the General Department of Customs has required units to closely monitor the collection situation and factors affecting the revenue such as the implementation of trade agreements, fluctuations in oil prices, fluctuations in taxable import-export turnover, difficulties and obstacles in tax policy, international integration commitments, and promptly propose and report to the Director General.

Accordingly, the Ho Chi Minh City Customs Department has proposed many solutions such as: strengthening inspection and supervision of the implementation of customs procedures, tax management, post-clearance audits, and specialized inspection to improve the efficiency of state management of customs; enhancing measures to fight smuggling, trade fraud and control and prevent drugs in all stages, lines and areas.

At the same time, focus resources on synchronously and effectively deploying solutions to facilitate trade and prevent budget loss; strengthen the application of information technology in management, administration and working methods closely to the goals of digital transformation to contribute to completing revenue estimates at the highest level.

Along with budget collection solutions, the Customs sector has also implemented policies to support and accompany businesses in the context where businesses are facing many difficulties.

As at Hanoi Customs Department, branches have had many solutions to accompany businesses to overcome difficulties, contributing to improving the revenue. Accordingly, the branches have requested customs officers to strictly comply with regulations on customs procedures, inspection, supervision and tax management for import and export goods while providing maximum support to import and export activities; monitor collection situation every day, every week and every month to identify causes and have timely solutions; directly work and regularly discuss with leaders of enterprises with large revenues in the management area to closely understand their production and business activities, estimate revenues and promptly remove difficulties and problems. In particular, the leaders of customs branches have closely requested each group and team in creating the best conditions for import and export work.

At the same time, Hanoi Customs has focused on dialogue with businesses and worked directly with large businesses that have an impact on import-export activities, as well as such as contribute large revenue to the budget in the area to promptly grasp the business situation and solve problems.

According to Mr. Nguyen Hong Linh, Director of Lang Son Customs Department, with the motto of accompanying and sharing difficulties with businesses, Lang Son Customs always considers businesses as cooperative partners. In addition to organizing dialogue conferences to gather opinions from businesses, Lang Son Customs continues to receive and resolve feedback and recommendations from the business community through information channels such as: letter boxes, websites, hotline, direct contact at customs checkpoints to promptly receive and resolve enterprises' problems. Along with that, the department gradually improves the methods, order, and procedures for inspection of imported goods in the direction of reducing the number of goods subject to physical inspection and continues to focus on implementing solutions to facilitate customs clearance.