Hai Phong Customs must collect tens of trillions in the last month

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The revenue of Hai Phong Customs in recent years, unit “billion VND”.

The lowest revenue in “tens of trillions revenue” units

With the above result, total revenue from Hai Phong Customs is still second place in the entire sector (followed by Ho Chi Minh Customs Department), accounting for 18%. However, the revenue of Hai Phong Customs reached the lowest rate, accounting for only 81.07% of the estimate compared to 6 Customs departments (Ho Chi Minh City, Hai Phong, Ha Noi, Ba Ria-Vung Tau, Dong Nai, Binh Duong) which have the targets of 10,000 billion VND or more in 2017. Meanwhile, Binh Duong Customs Department exceeded 6.06% of the estimate; Ho Chi Minh City Customs Department which has the highest target in the entire sector (109,000 billion VND) also reached 87.88% of the estimate and the others departments reached over 90% of the estimate.

According to the analysis of the Hai Phong Customs Department, the reason for the sharp reduction of revenue compared to the target of the Department is due to the reduction of taxable import and export turnover. In which, until the end of October 2017, total import and export turnover reached US$ 132 million, a sharp decrease by 48.4% compared to the same period in 2016, and taxable imports reached US$ 13.234 billion, a decrease of 3.1%.

Notably, although some commodities have a high tax rate and high growth rate, their revenues have not reached the targets of the plan, especially revenue of automobile item. Until October 2017, the turnover of this commodity reached US$ 496 million, an increase of 78.4% compared to the same period in 2016. But from September to present day, the amount of imported cars in Hai Phong Customs sharply decreased. This commodity has almost not been not imported in large border gates to wait for the reduction of a zero % import duty from ASEAN countries (by 1st January 2018). Particularly, in Hai Phong Port Customs Branch Zone I- the unit has the highest revenue from automobiles in the entire department . From the beginning of the year to August, the average revenue from the imported automobiles reached to about 500-600 billion VND per month, but from September to October the revenue sharply decreased to over 100 billion VND. Businesses expect to stop importing this commodity.

Another reason affecting the revenue of Hai Phong Customs is the implementation of new policies related to import and export activities. Remarkably, the regime of independent transport and association of implementation of Customs procedures was in other provinces and cities. According to Hai Phong Customs, in 2017, transportation goods associated with Customs branch transfer was 123,600 containers and nearly 400,000 tons of bulk goods and retail goods with a revenue of over 11,380 billion VND. In addition, the transfer of imported goods from Hai Phong to carry out Customs procedures to My Dinh ICD will take a tax revenue of about 460 billion VND this year.

On the other hand, the policies related to Customs procedures for import and export goods in Hai Phong Port are amended, but the target assigned to the Department is still high. According to the reporter, the target of 59,000 billion VND in 2017 assigned to the Department increased to 21.4% compared to the target in 2016 and 23.5% compared to the actual revenue of 2016. The increase rate was higher than compared to recent years. For example, the target in 2016 only increased 15.7% compared to the target in 2015, and the target in 2015 increased nearly 9% compared to the target in 2014. Meanwhile, the increase of actual revenue of Hai Phong Customs in recent years has shown signs of slowing. In 2016, revenue only increased by 4.8% compared to the actual revenue in 2015.

Great effort to achieve the highest result

With the result in the first 11 months of 2017, in order to achieve the target in December, Hai Phong Customs must collect nearly 11,200 billion VND. In many past years, although the revenue was collected in ‘hot’ months, Hai Phong Customs has never reached the revenue of 10,000 billion VND or more. Especially so, as the target has also increased 3 times compared to the average rate in the past 11 months.

Although the task of revenue collection is faced with many difficulties, Hai Phong Customs is still determined to synchronously and to drastically implement the solutions to achieve the highest result. In recent times, the Director of Hai Phong Customs, Nguyen Tien Loc, directly inspected, instructed and urged Customs branches for revenue collection. The requirement of the leader of Hai Phong Customs is to synchronously implement solutions, especially to reform facilitation for the business community and to focus on measures of anti-tax loss and tax debt recovery.

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Notably, the Director of Hai Phong Customs instructed the Import - Export Duty Department to chair and guide Customs branches to make the list of classifications of tax debt so as to effectively apply measures for the collection and handling of tax debt amount of each unit. At the same time, collaborating and guiding Customs Branches to focus on reviewing commodities with a high tax rate, high value, import frequency, and incentives for C/Os to take measures for efficient Tax management and anti-tax loss. To actively detect risks and the ability for tax losses to be reported to GDVC for unified instruction, management and creating a transparent environment in the entire sector.