HCM City Customs Department collects outstanding debts and prevents bad debts

VCN – In addition to revenue collection, HCM City Customs Department has focused on collecting outstanding debts.
HCM City Customs Department expedites revenue collection in remaining months of year HCM City Customs Department expedites revenue collection in remaining months of year
HCM City Customs Department provides solutions to support businesses HCM City Customs Department provides solutions to support businesses
HCM City Customs Department expedites customs modernisation to implement smart customs model HCM City Customs Department expedites customs modernisation to implement smart customs model
HCM City Customs Department collects outstanding debts and prevents bad debts
Officers of Cat Lai Seaport Customs Branch inspect imports. Photo: Thu Hoa

Facing difficulties in collecting outstanding debts

In 2021, the General Department of Vietnam Customs (GDVC) assigned the target of VND1,041 billion in outstanding debt collection to HCM City Customs Department.

This is the total debt at the department as of December 31, 2020. Of which, over VND679 billion is the debt of an auto company. Due to the Covid-19 pandemic, HCM City Customs Department has proposed to the GDVC to extend the deadline of collecting this debt. Currently, the department has established a working team to reassess the taxable value.

In addition, VND53.22 billion is debts that are classified from the normal debt group to the bad debt group in January 2021. As of December 31, 2020, the department had to collect over VND308.75 billion. As of September 30, the municipal only collected VND57 billion.

While collecting the outstanding debts, some problems arose. The Law on Tax Administration 2019 provides seven coercive measures, but only two measures are applied in reality, including stopping customs procedures and closing tax codes. Other measures are not implemented or applied ineffectively.

For bad debts subject to debt cancelation under Circular 179/2013/TT-BTC dated December 2, 2013, the department has handled tax debts of three companies with a total debt amount of VND17.3 billion. This is an irrecoverable debt, and there have been decisions to establish the dissolution boards but the decisions on official dissolution have not yet been issued. The local Government has not yet approved the dissolution for these companies. Therefore, they have not yet canceled debts.

Difficult to check information of over 100 tax debtors

According to HCM City Customs Department, there are some outstanding tax debts of enterprises that have stopped operation or left registered business addresses or have business codes issued by the customs.

More than 107 enterprises have debts worth over VND148 billion from 1990 to 2003. Some companies have large tax debts such as Hung Vuong Food Processing and Export Company at nearly VND22 billion since 1994, Saigon Frozen Company at nearly VND13 billion since 1994, and an import-export company at more than VND3.9 billion.

The tax authority has faced difficulties in identifying tax code and determining information of enterprises such as Dalat Resort Incorporation with a debt of over VND2.8 billion, Sunnex Fashion Eyeglasses Factory of over VND28.5 billion since 1995; Napoleon Wine Production Company of nearly VND4 billion since 1993.

The tax codes of these companies have not been issued by the tax agency. Therefore, the tax agency cannot search for information of these tax debtors on the database to apply measures to collect tax debts.

The municipal customs department has used the companies’ names on the accounting system to verify information at banks and competent agencies where they registered permanent addresses. However, the department cannot check the tax codes issued by the Tax agency of these companies to gather information for enforcement and collection of tax debts.

In addition, the Tax office and the Department of Planning and Investment of HCM City said that they could not find the company name and business code issued by Customs on their systems, so they could not enforce these companies at the request of the Customs.

Regarding some companies that have decisions to establish a dissolution board, stop operation or dissolve before the deadline, the department has requested the governing agencies such as the Ministry of Planning and Investment, the People's Committee of HCM City, the Management Board of Export Processing Zones and Industrial Parks in HCM City to provide the decision on dissolution and revocation of the license. However, these agencies said that they did not keep records of the enterprises. Therefore, these tax debt dossiers are eligible for tax debt cancellation under the Tax Administration Law.

The municipal customs department has reported the GDVC and proposed solutions to handle these problems.

By Le Thu/ Ngoc Loan

Related News

Import-export turnover across Lao Cai International Border Gate surges

Import-export turnover across Lao Cai International Border Gate surges

VCN – The import and export turnover at Lao Cai International Border Gate Customs Branch (Lao Cai Customs Department) surges compared with the previous year.
A company must not  pay tens of billions of VND in tax arrears thanks to support by the Customs

A company must not pay tens of billions of VND in tax arrears thanks to support by the Customs

VCN – Mr. Nguyen Van Bao, Deputy General Director of Dalat Hasfarm Co., Ltd. shared this matter at the first Customs-Business Dialogue Conference in 2024 held by Dak Lack Customs Department on April 16.
PM requests to continue improving efficiency of digital transformation in customs

PM requests to continue improving efficiency of digital transformation in customs

VCN - Prime Minister Pham Minh Chinh has just signed a document requesting ministries, central and local agencies to continue to improve the efficiency of digital transformation in the customs field.
Ha Nam Ninh Customs Department holds Customs-Businessdialogues to remove problems for businesses

Ha Nam Ninh Customs Department holds Customs-Businessdialogues to remove problems for businesses

VCN – On April 16, Ha Nam Ninh Customs Department held a Customs-Business Dialogue Conference 2024, Representativesof Ha Nam Ninh Customs Department made recommendations for enterprises in implementing customs policies, regulations and procedures; and preventing errors and sharing experiences to handle problems related to customs area.

Latest News

Vietnam Customs attends the 243/244th Session of WCO

Vietnam Customs attends the 243/244th Session of WCO's Permanent Technical Committee

VCN – Vietnam Customs delegation attended the 243rd/244th Session of the WCO's Permanent Technical Committee (PTC) in Brussels from 23 to 26 April 2024.
Lang Son: Flexible solutions to accelerate customs clearance of fresh fruit exports

Lang Son: Flexible solutions to accelerate customs clearance of fresh fruit exports

VCN - Currently, there are about 400 trucks carrying fresh fruit to the border gates of Lang Son province (mainly to Huu Nghi and Tan Thanh international border gates) for export to China on daily average. To ensure the quality of fresh fruit shipments, management agencies of Lang Son province have offered flexible solutions to speed up customs clearance.
Ho Chi Minh City Customs: Creating strong changes from modern management methods

Ho Chi Minh City Customs: Creating strong changes from modern management methods

VCN - Applying many innovative initiatives, as well as strongly applying information technology (IT) to operational stages, Ho Chi Minh City Customs Department expects to create strong changes in digital transformation from modern management methods.
Notice for businesses exporting watermelons to China

Notice for businesses exporting watermelons to China

VCN - To create maximum conditions for Vietnamese agricultural products, fresh fruits in general and fresh watermelon products to be exported through border gates in Lang Son province, Lang Son Customs Department recommends that businesses research regulations and plant quarantine requirements in Notice No. 184 dated December 15, 2023 of the General Department of Customs of China.

More News

Ta Lung Customs

Ta Lung Customs' revenue flourishes

VCN - The budget collection results of Ta Lung Border Gate Customs Branch in the first months of 2024 have flourished, making an important contribution to the state budget revenue of Cao Bang Customs Department.
Vietnam Customs actively promotes cooperation activities

Vietnam Customs actively promotes cooperation activities

VCN – In the first quarter of 2024, international cooperation and integration activities were actively implemented and planned by Vietnam Customs. Notably, Vietnam Customs has urgently completed plans for the 33rd meeting of the ASEAN Directors-General of Customs in June in Phu Quoc (Kien Giang province).
Five key northern local customs departments signed an emulation agreement

Five key northern local customs departments signed an emulation agreement

VCN - Five local customs departments belonging to Emulation Cluster No. 3 of the General Department of Vietnam Customs (including Hai Phong Customs Department, Hanoi Customs Department, Quang Ninh Customs Department, Bac Ninh Customs Department and Ha Nam Ninh Customs Department) signed an emulation agreement, striving to complete assigned tasks.
The General Department of Vietnam Customs strives to promote import and export growth

The General Department of Vietnam Customs strives to promote import and export growth

VCN - On April 15, the General Department of Vietnam Customs held an online briefing conference to evaluate the results of the first quarter of work and deploy the work program for the second quarter of 2024. According to the authorization of the Director General, Deputy Director General Nguyen Van Tho chaired the conference.
Ho Chi Minh City Customs proactively applies IT in customs supervision

Ho Chi Minh City Customs proactively applies IT in customs supervision

VCN - To effectively monitor goods entering and exiting the warehouse, yard and port system in the management area, Ho Chi Minh City Customs Department has proactively applied surveillance using a camera system, increasing the screening rate.
Noi Bai Customs: dealing with to drug crimes using high technology

Noi Bai Customs: dealing with to drug crimes using high technology

VCN - The tricks that trafficker use to illegally transport drugs via air and express delivery are increasingly sophisticated, complex, and constantly changing to bypass the Customs and management authorities.
Vietnam Customs with outstanding results in ASEAN cooperation

Vietnam Customs with outstanding results in ASEAN cooperation

VCN - Along with the integration trend, Vietnam Customs is always an active member in implementing regional customs cooperation initiative programs regarding international cooperation on customs within the Association of Southeast Asian Nations (ASEAN) community.
Dong Thap Customs: Proactively guide procedures, reduce customs clearance time for imported and exported goods

Dong Thap Customs: Proactively guide procedures, reduce customs clearance time for imported and exported goods

VCN - One of the key tasks that Dong Thap Customs Department has focused on in recent times is the work of guiding and answering timely procedures for businesses, in which the Professional Department - Dong Thap Customs Department has proactively responded specifically to businesses’ problems.
Piloting the exchange of export declaration with Eurasian Economic Union

Piloting the exchange of export declaration with Eurasian Economic Union

VCN - Vietnam has completed phase 1 of piloting the exchange of export declaration with Eurasian Economic Union.
Read More

Your care

Latest Most read
Vietnam Customs attends the 243/244th Session of WCO

Vietnam Customs attends the 243/244th Session of WCO's Permanent Technical Committee

VCN - According to Mr. Hoang Dinh Trung, the PTC session is WCO’s important regular event with comprehensive contents related to procedures and trade facilitation; the implementation and review of international conventions, WTO TFA, WCO Framework of Stand
Lang Son: Flexible solutions to accelerate customs clearance of fresh fruit exports

Lang Son: Flexible solutions to accelerate customs clearance of fresh fruit exports

VCN - Currently, there are about 400 trucks carrying fresh fruit to the border gates of Lang Son province (mainly to Huu Nghi and Tan Thanh international border gates) for export to China on daily average. To ensure the quality of fresh fruit shipments, m
Ho Chi Minh City Customs: Creating strong changes from modern management methods

Ho Chi Minh City Customs: Creating strong changes from modern management methods

HCM City Customs Department expects to create strong changes in digital transformation from modern management methods.
Notice for businesses exporting watermelons to China

Notice for businesses exporting watermelons to China

Lang Son Customs Department recommends that businesses research regulations and plant quarantine requirements in Notice No. 184 dated December 15, 2023 of the General Department of Customs of China.
Import-export turnover across Lao Cai International Border Gate surges

Import-export turnover across Lao Cai International Border Gate surges

VCN - On April 22, Lao Cai International Customs Branch informed that as of April 15, the total trade in goods at the branch increased by 64% to US$ 382.4 million year-on-year.
Mobile Version