HCMC Customs must collect 10 trillion VND/month to reach the target

Customs officers in charge of investment goods under HCMC Customs Department are guiding FDI enterprises. Photo: TH

Many key imported goods dropped

According to the analysis of HCMC Customs, although import-export turnover in July 2017 rose over 20% compared to same period in 2016, turnover of July 2017 declined more than US$ 172 million compared to June 2017 due to a significant decrease in key imported goods.

In particular, many commodity groups affected the state budget revenues. For example, the import turnover of less than 9 seater cars was only US$ 5,326,721 (288 units), while in the second month of June 2017 , was US$ 27,776,669 (1,251 cars), down by US$ 22,449,948, reducing about 1,000 billion VND of the state budget revenues. The import turnover of diesel, Mazut, air fuels only reached US$ 179,294,091, while in the second period of June 2017, reached US$ 199,817,095, down US$ 20,523,004 US, reducing 90 billion VND of the budget revenues. Gasoline import turnover decreased US$ 23,666,313, reducing 70 billion VND of the budget revenues. Imported turnover of iron and steel group reduced US$ 7,344,996, reducing 40 billion VND of the budget revenues.

In the first 7 months of 2017, HCMC Customs Department’s revenues increased 341 billion VND compared to the same period last year. In particular, the increased revenue through price consultancy was over 219 billion VND; revenue through post-clearance audit was over 94 billion VND and through adjustment of non-trading tax was nearly 28 billion VND.

As of July 31, 2017, the HCMC Customs budgeted 61 trillion VND, accounting for 55.96% of the estimate and 55.45% of the target of 10 trillion VND. Thus, in order to achieve the target, in the last five months of 2017, HCMC Customs still has to collect 49,000 billion VND. Accordingly, the unit has to collect nearly 10 trillion VND each month on average. This is an arduous task in the context of a decrease in many key imported goods, affecting the budget revenues.

Support enterprises to increase the revenues

Deputy Director of HCMC Customs Department Nguyen Huu Nghiep said that the Department has instructed its branches and subordinates to frankly recognize shortcomings, inadequacies and point out weaknesses and exigencies to overcome thoroughly in the last 5 months of 2017 based on actual performance in 2017. Leaders of units should focus on strengthening their forces; organize the training courses and frequently disseminate and implement legal documents as well as the directions of the leaders at all levels of the most effective performance.

All branches and subordinates must accelerate the implementation of the Government's Resolution No. 19-2017 / NQ-CP. Accordingly, in August 2017, the Supervision and Management Division coordinated with the Import-Export Duty Division and relevant units to advise the leaders of HCMC Customs Department to hold at least 4 dialogue meetings with European companies, US companies, Japanese companies and steel importing companies. At the beginning of this August, Customs Branches have organized a dialogue meeting with enterprises to immediately solve problems and note problems beyond their competence to report to the HCMC Customs Department.

The Customs branches direct the civil servants in charge of tax registration and calculation to take responsibility for strictly check the declared price of imported goods: if name of goods is not complete and does not satisfy the concept of identical goods and regulations of the Ministry of Finance in the Vietnam export and import classification nomenclature, the Customs branches require enterprises to implement additional declaration; actively review, collaborate with relevant forces to grasp the information in order to detect and promptly handle cases of trade frauds. In particular, noting Yellow and Red channel declarations: For the Red channel, it is required to check declaration, packing list, bill of lading and C / O to determine the quantity and weight between declaration and physical inspection to discover the misstating of quantity and type to enjoy the low tax rate, unit price must be clear. For Yellow channel declarations, it is necessary to compare between declaration and packing list, bill of lading and C / O to determine declared quantity and weight.

For the taxable price, Customs branches shall be responsible for strengthening forces to overcome 100% of the 30 or 60 day - overdue declarations which have not yet been examined. The units branches must appoint professional officers to select the list of valid declarations which have been consulted (or audited after clearance); advise the leaders of their branches not to continue to invite enterprises for consultancy and post-clearance audit for shipments of which taxable prices have been accepted because those prices will not be changed (except cases where the inaccurate determination of taxable prices) to avoid annoying and harassing enterprises. Regarding fraud via commodity code, the branches must review, overcome, determine code and collect full tax for supplementary foods, collagen drinks, massage machines, racing bicycles, bicycle lights, tin welding rods, face washers, medical gas systems, processed food.

Although the HCMC Customs Department has collected nearly 100 billion VND of tax through post-clearance audit, the amount is still too low compared to the assigned target of 682 billion VND. In addition to the strict implementation of the determination of taxable price and tax imposition for commodity groups, the Customs branches also have directed and organized timely inspections for other commodity groups with suspicious signs in accordance with the law to ensure sufficient revenues to the state budget.

If enterprises do not abide by decision on post clearance audit, the Customs branches directed to issue decision on tax imposition based on initial suspicions and from next suspicious shipments onwards, the Customs shall not permit enterprises to select the clearance under declared price and organize consultancy immediately according to guidance of the General Department of Customs at Dispatch 905/TCHQ-TXNK dated February 17, 2017, and send list of enterprises which do not abide by decision on post clearance audit to HCMC Customs Department to handle under its competence.