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

Ho Chi Minh City: Imported gasoline, iron and steel greatly affect state budget revenue

Ho Chi Minh City: Imported gasoline, iron and steel greatly affect state budget revenue

VCN - Carrying out customs procedures for special imported goods, such as iron and steel, gasoline, Saigon Port Customs Sub-department, Region 3 is expected to generate large revenues, but the state budget revenue from these two items has decreased sharply.
Enforcement authorities busts 67, 000 cases and seizes about 10 tons of drugs

Enforcement authorities busts 67, 000 cases and seizes about 10 tons of drugs

VCN – Since 2022, enforcement authorities have tackled over 67,000 cases and seized over 10 tons of drugs and 7 million synthetic drug pills.
Binh Duong Seaport Customs Branch supports and facilitates enterprises

Binh Duong Seaport Customs Branch supports and facilitates enterprises

VCN – Binh Duong Seaport Customs Branch (Binh Duong Customs Department) upgrades technology and modern equipment, creating conditions for businesses to clear goods quickly and effectively.

Latest News

Appointment of new Directors for the Customs Reform and Modernization Board and Anti-Smuggling and Investigation Department

Appointment of new Directors for the Customs Reform and Modernization Board and Anti-Smuggling and Investigation Department

VCN - On November 21, 2024, at the headquarters of the General Department of Vietnam Customs, Director General Nguyen Van Tho presided over the ceremony to announce the appointment of new leaders for the Customs Reform and Modernization Committee and the Anti-Smuggling Investigation Department.
Promoting Vietnam-Laos Customs cooperation

Promoting Vietnam-Laos Customs cooperation

VCN - On November 19, 2024, in Hanoi, Vietnam Customs held the Vietnam - Laos Customs Directors General Conference.
Quang Nam Customs facilitates trade and increases revenue

Quang Nam Customs facilitates trade and increases revenue

VCN – Goods imported and exported across Quang Nam province’s border gates surges in the second half of the year. Quang Nam Customs Department has implemented solutions to facilitate enterprises, increasing the State revenue.
Quang Tri Customs: Revenue from imported coal plunges

Quang Tri Customs: Revenue from imported coal plunges

VCN - Coal and wood of all kinds are items that contribute greatly to the state budget revenue of Quang Tri Customs Department, but are fluctuating in a downward direction.

More News

Closely control imported products traded via e-commerce

Closely control imported products traded via e-commerce

VCN – The General Department of Vietnam Customs has directed local customs departments to strengthen control and supervision for imported goods traded via e-commerce.
Mong Cai Customs sets new record in revenue collection

Mong Cai Customs sets new record in revenue collection

VCN - The Mong Cai Border Gate Customs Branch, under the Quang Ninh Customs Department, has set a new record for the highest state revenue collected to date.
Lao Cai Customs attracts over 100 new businesses for customs procedures

Lao Cai Customs attracts over 100 new businesses for customs procedures

VCN - Compared to the same period in 2023, the number of businesses handling procedures at Lao Cai border gate customs branch (under Lao Cai Customs Department) has grown by 109 companies.
Vietnam Customs attends WCO’s flagship conference

Vietnam Customs attends WCO’s flagship conference

VCN - The 2024 World Customs Organization (WCO) Technology Conference and Exhibition with the theme “Digital Frontiers: Customs Embracing Innovation with Traditional and New Partners” hosted by Brazil’s Secretariat of the Federal Revenue, took place from November 12-14, 2024 in Rio De Janeiro, Brazil.
Da Nang Customs joins efforts to establish free trade zone proposal

Da Nang Customs joins efforts to establish free trade zone proposal

VCN - The Da Nang Customs Department is actively collaborating with local authorities and agencies to develop a proposal for the Da Nang Free Trade Zone (FTZ), aiming to drive new economic growth for both the city and the wider region.
Quang Ninh Customs sees revenue boost of nearly VND 900 Billion from new enterprises

Quang Ninh Customs sees revenue boost of nearly VND 900 Billion from new enterprises

VCN - Efforts to attract and support businesses have significantly boosted state revenue for the Quang Ninh Customs Department, thanks to a proactive approach in facilitating customs procedures.
Roadmap set for pilot program of smart border gate initiative

Roadmap set for pilot program of smart border gate initiative

VCN - The General Department of Vietnam Customs has been appointed as the lead agency to implement the tasks outlined in the Prime Minister’s Decision No. 865/QD-TTg, dated August 17, 2024, which approves the pilot program to establish smart border gates at specialized goods transport routes around markers 1119-1120 and markers 1088/2-1089 within the Huu Nghi (Vietnam) – Youyi Guan (China) international border gates.
Hanoi Customs partners with businesses to boost import-export activities

Hanoi Customs partners with businesses to boost import-export activities

VCN - After a decade of fostering customs-business partnerships, Hanoi Customs Department has developed three collaborative models: Customs-Business Partnership, Customs-Import and Export Service Provider, and Customs-Business Association.
Get opinions on perfecting regulations on procedures, inspection, supervision and customs control

Get opinions on perfecting regulations on procedures, inspection, supervision and customs control

VCN - In order to perfect regulations and measures to implement the Customs Law on customs procedures; customs inspection, supervision and control, on November 7, 2024, the General Department of Customs organized a Workshop to collect opinions from local customs units and the business community on the draft Decree amending and supplementing Decree 08/2015/ND-CP and Circular amending and supplementing Circular 38/2015/TT-BTC.
Read More

Your care

Latest Most read
Appointment of new Directors for the Customs Reform and Modernization Board and Anti-Smuggling and Investigation Department

Appointment of new Directors for the Customs Reform and Modernization Board and Anti-Smuggling and Investigation Department

Director General Nguyen Van Tho presided over the ceremony to announce the appointment of new leaders for the Customs Reform and Modernization Committee and the Anti-Smuggling Investigation Department.
Binh Duong Seaport Customs Branch supports and facilitates enterprises

Binh Duong Seaport Customs Branch supports and facilitates enterprises

VCN - According to Binh Duong Seaport Customs Branch, the branch has processed import and export procedures for over 600 enterprises, up 41% compared to the same period of the year, with import and export turnover of US$431 million, up 12.3% year-on-year.
Promoting Vietnam-Laos Customs cooperation

Promoting Vietnam-Laos Customs cooperation

VCN - In his opening speech at the conference, on behalf of Vietnam Customs, Director General Nguyen Van Tho warmly welcomed Director General Phoukhaokham Vannavongxay, and the high-ranking delegation of Laos Customs for visiting and working with Vietnam
Ho Chi Minh City: Imported gasoline, iron and steel greatly affect state budget revenue

Ho Chi Minh City: Imported gasoline, iron and steel greatly affect state budget revenue

VCN - According to the Saigon Port Customs Sub-department, Region 3, the State budget revenue from gasoline accounts for about 80% of the Sub-department's revenue.
Quang Nam Customs facilitates trade and increases revenue

Quang Nam Customs facilitates trade and increases revenue

VCN - Ky Ha Seaport Customs Branch has processed customs clearance for dozens of import and export shipments of goods across Chu Lai port, the branch has implemented many solutions to allocate human resources to support and facilitate businesses.
Mobile Version