Ha Tinh customs struggles to fulfill state budget task

VCN- The strong impacts of Covid-19 have made the economy in general and import and export in particular in Ha Tinh province face a serious decline. Although enterprises have reopened, the fulfillment of the state budget task is extremely difficult, Ha Tinh Customs said.
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Ha Tinh Customs Department: Accompanying businesses to overcome difficulties caused by the Covid-19 pandemic Ha Tinh Customs Department: Accompanying businesses to overcome difficulties caused by the Covid-19 pandemic
Ha Tinh makes efforts to facilitate businesses Ha Tinh makes efforts to facilitate businesses
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Vung Ang Customs officers guide enterprises on customs procedures. Photo: Phan Tram

Double impact

Speaking to Customs News, Mr. Dinh Van Hoa, Deputy Director of Ha Tinh Customs Department, said that from the beginning of the year, the double impact of the prolonged US-China trade war and the Covid-19 pandemic have had many influences on production, business, import-export activities of enterprises and the department’s revenue.

According to Ha Tinh Customs, textiles and garments are one of the key export items of Ha Tinh, but since the beginning of this year, due to the Covid-19 pandemic, the export market has been temporarily closed and imports of raw materials for production have not been facilitated.

Up to 80% of yarn output is exported directly to China, South Korea, and Taiwan, but the foreign partners have been in a state of delay or cancellation of orders and the domestic supply and consumption capacity has also stalled. When the pandemic reoccurred (from July), the production, business, import-export activities of many enterprises in the province were always impacted.

Ha Tinh Customs also said that Hung Nghiep Formosa Ha Tinh Company Limited is the FDI enterprise most affected by the outbreak of Covid-19 because its production and consumption are heavily dependent on the world market.

Raw materials have been scarce and expensive, and the goods delivery has been delayed, while the demand for steel products in the world market has fallen sharply.

Meanwhile, the source of foreign workers and experts working here has fallen because they have cut immigration to Vietnam. Accordingly, in the first nine months of the year, the company's productivity only reached 60% of capacity, the company has maintained staggered working hours, and inventories have increased significantly.

Ha Tinh Customs forecasted that in 2020, the revenue from import-export activities of Formosa Ha Tinh will only reach VND4.952 billion, plus revenue from other items and enterprises in the area of about VND105 billion. Therefore, the estimated state budget revenue for the whole year 2020 of Ha Tinh Customs Department is expected to be about VND5,057 billion, only 75.4% of the estimate assigned by the General Department of Customs.

At Cau Treo international border gate, import and export turnover as well as the number of entry and exit of transport in the first nine months saw a sharp decline over the same period in 2019. This is because Vietnam and Laos both apply measures to limit import and export activities for individuals at international border gates across the country to prevent the spread of Covid-19 which has had a direct impact, significantly reducing import-export and entry-exit activities of enterprises and passengers at the border gate.

Understand the situation of each enterprise

In order to overcome and mitigate the impacts of the Covid-19 pandemic on the implementation of the budget collection task, Ha Tinh Customs has actively supported, monitored and understood operations of enterprises, creating favorable conditions for import and export activities in the area, maintaining goods clearance 24/7 at border gates and seaports in order to support enterprises with sufficient raw materials to promptly serve production, business, import and export activities.

According to Mr. Dinh Van Hoa, the department has paid attention, monitored and closely grasped the situation of each enterprise, especially those with large revenues accounting for over 80% of the revenues of each customs branch to have timely assessment of the pandemic’s impacts on import and export activities and budget collection. The unit has also monitored and accurately assessed the revenues, understood the reasons for the increase and decrease in revenue of each enterprise, and grasped revenues through border gates and seaports.

In addition, to support and remove difficulties for enterprises, units of Ha Tinh Customs Department in charge of receiving and summarizing feedback of enterprises on difficulties and problems in order to propose solutions; and enhanced capture and exchange of information via phone and email.

Mr. Dinh Van Hoa added that the unit will continue to follow tax policies; strengthen guidance on tax procedures for customs branches and enterprises in the area, ensuringrevenue and payment time to the state budget, and preventing bad debts. The department will also strengthen the collection of information from large enterprises and large investment projects to grasp information on import-export activities, import-export turnover as a basis for assessing the collection ability and estimating annual state budget revenue in compliance with the actual situation.

In addition, Ha Tinh Customs has focused and drastically deployed three main groups of solutions: facilitating import and export activities; fostering sustainable revenues and creating new and effective revenue streams; and implementing measures and solutions to combat state budget revenue loss.

Ha Tinh Customs reviews revenues before Covid-19 impacts Ha Tinh Customs reviews revenues before Covid-19 impacts

VCN – Before Covid-19’s impacts, enterprises had to face many difficulties and reduction in imports and exports, ...

The department has carried out plans on financial reform; administrative reform, modernization of customs procedures, risk management, strengthening customs-business partnerships, and has drastic deployed anti-smuggling and anti-trade fraud tasks.

By the end of September 15, Ha Tinh Customs Department handled procedures for 7,124 sets of declarations, down 8.2%, collected total import-export turnover of US$2,108.5 million, down 16.7% over the same period in 2019.

The customs units also handled procedures for 59,013 entry and exit cars, down 37%; and 697 entry and exit ships, down 2.8% over the same period in 2019.

In the State budget collection and remittance, as of September 28, 2020, the state budget revenue reached VND3,380.8 billion, reaching 50.46% of the assigned target and reducing 31.14% compared to the same period last year.

In the third quarter, the department collected VND1,149.3 billion, down 26% over the same period last year.

By Nu Bui/ Huyen Trang

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