Ho Chi Minh City Customs: Increase in revenue from imported cars

	Ho Chi Minh Customs: Striving to exceed VND 108,800 billion of the target
	Ho Chi Minh City Customs working throughout the Tet holidays to clear export goods
	Ho Chi Minh City: Encouragement and urgency to collect tens of thousands of billion VND at branches

Super luxury cars that are worth tens of VND billions were imported to VICT port in the beginning of 2019. Photo: T.H

Over 7,000 imported cars

According to Hiep Phuoc Seaport Customs Branch under Ho Chi Minh City Customs Department, in the first week of Lunar New Year 2019, the Branch carried out Customs clearance for 20 car import declarations for 1,501 cars. Of which, there were 1,151 tourist cars, and the remaining were pickups. Thus, from the beginning of the year to 17 February 2019, more than 7,000 imported cars were carried out Customs clearance at Hiep Phuoc Port. However, most of the car imports through Hiep Phuoc Port originated from ASEAN countries, and importers are entitled to 0% import tax rate for cars of 9 seats or less.

According to Ho Chi Minh City Customs Department, the number of cars imported via Ho Chi Minh City’ Ports sharply increased, leading to the increase in the revenue of Ho Chi Minh City Customs Department, equivalent to the same period in 2018.

Not only were cars imported from ASEAN countries, but also super-luxury cars were imported to Ho Chi Minh City in the first days of 2019. Notably, a shipment of Porsches were imported via VICT of Ho Chi Minh City in January 2019, including 2 Porsche 911 GT2RS luxury cars imported from Germany to Vietnam, with each car worth approximately VND 20 billion. According to the Sai Gon Seaport Customs Branch of Zone III, these are the first high-class cars imported to VICT port since 2018 up to now.

Is the revenue positive?

According to Ho Chi Minh City Customs Department, as of 15 February 2019, the Department collected VND 12,006 billion, accounting for 11.03% of the assigned target (VND 108,800 billion), equivalent to 94.8% compared to the same period of 2018 (VND 12,664 billion). In which, in January 2019, the budget revenues increased by 20% compared to the same period of 2018 due to the increase in import turnover of US$ 272 million over the same period. In particular, import turnover of cars of 9 seats or less increased by US$ 21.6 million (in the same period in 2018 only reached US$ 152 ,000). In addition, import turnover of some other consumer goods also increased slightly over the same period in 2018. This is a positive signal in the budget collection of Ho Chi Minh City Customs Department in 2019.

Ho Chi Minh City Customs Department immediately solve problems for the imported tractor consignment VCN- Implementing the direction of Deputy Minister of Finance Vu Thi Mai and Deputy Director General of ...

However, according to the analysis of Ho Chi Minh City Customs Department, from March 2019, the Government's Decree promulgating FTA CPTPP Tariffs and Circular No. 03/2019 / TTBCT dated 22 January 2019 of the Ministry of Industry and Trade, will be a major obstacle and challenge to the state budget revenue when most tariff lines have a 0% tax rate.Determining this difficulty, Ho Chi Minh City Customs Department has focused on implementing immediately the Plan No. 77/KH-HQHCM dated January 4, 2019 of Ho Chi Minh City Customs Department. From the beginning of the year, Director of Ho Chi Minh City Customs Department Dinh Ngoc Thang, requested Customs Branches to focus on implementing solutions to drastically implement the state budget collection task right from the first months of the year and to accomplish and surpass the assigned targets, and prevent the sprint emulation in the last months of the year.