Khanh Hoa Customs strengthens trade facilitation

VCN – The revenue of Khanh Hoa Customs Department in the first three months of 2023 decreased by about 50% year-on-year. This result poses challenges for the department in performing revenue collection.
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Imported goods plunges

Although the number of enterprises carrying out import and export procedures at Khanh Hoa Customs Department in the first quarter of the year increased by over 17% or 130 enterprises compared with the same period the year ago, the volume of imported goods cleared at the department plunged.

The department processed customs clearance for 4,681 declarations of imports and exports with total trade in goods of over US$580 million, down 22.22%, including import turnover of US$295.45 million, down 37.57% compared with the year ago.

In the first three months of the year, Khanh Hoa Customs Department created the most favourable conditions in carrying out customs procedures for vehicles and luggage of passengers on entry and exit.

The department processed 1,760 turns of means of transport, up 932.26%; 340,820 passengers on entry and exit, up 2,461.15% year-on-year. Of which, 1664 turns of aircraft, up 3,162.75%; 330,146 turns of passengers, up 2,890.44% compared with the previous year.

Notably, due to the decrease in export orders, the import of machinery, equipment and raw materials for production by enterprises also dropped. Specifically, the import turnover of machinery, equipment and components fell by 86.34% to US$ 23.29 million.

The import turnover of tobacco raw materials – the imported products that bring significant budget revenue also declined by 79.37% year-on-year to US$1.19 million.

In addition, the plunge in the volume of imported petroleum products led to the department's sharp decrease in revenue. In the first quarter, Khanh Hoa Customs Department's revenue fell by 49.39% year-on-year to VND395.17 billion, meeting 18.51% of the target.

Analysis of Khanh Hoa Customs Department shows that the revenue from petroleum products decreased by 54.73% year-on-year to VND152.4 billion, accounting for 38.57% of the total revenue of the department due to decline of 49.96% in the volume of imported petroleum products.

In addition, the department refunded the overpaid tax due for previously imported shipments with preferential C/O, reducing VND 119.36 billion in revenue.

In addition, investment in power and thermal power projects in the area have been completed, so the import of equipment and machinery to create fixed assets has gone down, leading to a decrease in the revenue from this item by 98% to VND5.13 billion in the first quarter of the year. These factors have caused the departments in the first months of the year to drop sharply.

Focusing on facilitating import and export

According to the leader of the Khanh Hoa Customs Department, the department is assigned a revenue target of VND2,135 billion in 2023. This is a formidable task for the department amid the unpredictable fluctuations of domestic and global economic conditions, high inflation, and the conflict between Russia and Ukraine. In addition, the department's revenue is mainly from petroleum products, equipment and machinery to create fixed assets for investment projects.

Identifying these difficulties, the department has followed key work programs and plans of the General Department of Vietnam Customs in 2023, actively developed plans and proposed solutions to implement revenue collection, administrative reform, customs modernization, and trade facilitation.

Accordingly, border gate customs branches have well performed their commitments in the "Customer Service Charter" with the goal that all customs declarations are processed in a timely fashion, facilitating the operation of businesses.

The customs branches have processed procedures on the online public service system in line with regulations. In addition, the branches have exchanged and removed problems arising from enterprises; maintained consulting activities to provide information and answer problems for individuals, organizations and businesses. In the past three months, the department has instructed 9 problems related to import and export procedures.

In addition, the department effectively implemented online public services, with an increase of 2.82% year-on-year to 219 dossiers. Furthermore, it has maintained the National Single Window at the seaport under Decree No. 58/2017/ND-CP, at the airport under Decree No. 85/2019/ND-CP, Vietnam Automated System for Seaport Customs Management at Bac Van Phong, Nam Van Phong, and Cam Ranh and HVS ports.

The implementation of Aviation National Single Window at Cam Ranh International Airport has recorded positive results; 11 of 16 airlines have implemented electronic procedures, reaching the rate of 68.75%. In addition, 1,636 flights were declared via the system, meeting 98.26% compared with the actual flight.

Shortly, Khanh Hoa Customs Department will continue to comply with the directive of the General Department of Vietnam Customs on comprehensive and drastic implementation of solutions for trade facilitation, improving state management's effectiveness in the revenue collection in 2023, and striving to achieve the highest revenue.

The department will strengthen the review and grasp the revenue; propose and implement solutions to increase the revenue and prevent revenue loss; reform administrative procedures towards simplicity, clarity, transparency, convenience and more favourable conditions for import-export activities, goods in transit and means of transport; maximum support for people and businesses in customs procedures and reduce customs clearance time.

By Le Thu/Ngoc Loan

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