Lang Son Customs Department: Budget revenue has faced difficulties since beginning of the year

HuuNghi Customs Sub-Department ensures officials are on duty to carry out procedures for enterprises. Photo: T.N

Both turnover and revenue decreased sharply

Facing the outbreak of the Covid-19 epidemic, the Chinese side temporarily closed border gates, entrances and pairs of border markets adjacent to Thi Bang Tuong, Guangxi and China with Lang Son to prevent the spread of the virus.

Statistics show that, sincethe beginning of the year, Lang Son Customs has completed procedures for 5,880 sets of declarations, total import-export turnover reached $175 million, down 58.2% over the same period last year. The unit also conductedprocedures for 201,333 passengers and 139 vehicles, falling18% over the same period last year. Particularly, in the professional teams of Na Hinh, Na Nua, BinhNghi, Co Sau, Po Nhung and Ban Chat, the turnover sincethe beginning of the year reached $11 million, down 54% over the same period last year.

At the HuuNghi international border gate, although import and export activities and goods exchanges have been cleared by customs authorities of the two countries from February 5,to ensure the strict requirements indisease prevention, this activity is still very limited. On average, HuuNghi Customs Sub-department does clearance procedures for 250-300 vehicles every day. Accordingly, from February 5 to 25, HuuNghi Customs Sub-department has cleared nearly 3,000 truckloads of goods. They are mainly agricultural products of Vietnam, and some vehicles of raw materials and imported electronic components of Samsung Company.

SinceFebruary 8, the Customs Sub-Department of Dong Dang International Railway Station has carried out procedures for 214 freight trains of import and export goods, mainly iron, steel, fresh dragon fruit, iron ore. At the Tan Thanh CustomsSub-Department, after six days of customs clearance (from February 20), customs procedures for nearly 150 vehicles of exported agricultural products have been cleared.

In Lang Son province, with the efforts of the authorities in the exchange and talks with Chinese authorities, the import and export activities of goods have been restored at HuuNghi international border gate, Tan Thanh border gate and Dong Dang intermodal international railway station. But the clearance of goods at these border gates has not improved much. The reason is that the human resources for loading and unloading goods are seriously in shortage, slowingthe amount of goods carried out customs clearance during the day.

Goods clearance was slow, import and export turnover plummeted,affecting heavilythe duty of Lang Son Customs Department. According to statistics, by the end of February 25, the whole Department only collected VND222.6 billion, reaching 6.55% of the assigned target (VND3,400 billion), down 59.44% over the same period last year.

According to Mr. Nguyen HuuVuong, Deputy Director of Lang Son Customs Department, in addition to the factors caused by the Covid-19 epidemic, the impacts of China's border trade management policies such as: Strengthening quality management of imported goods; controllingall other goods which are not on the list of allowed import; tightening of border export goods has affected the turnover through the locality.

In addition, in accordance with the roadmap for tariff reduction under the ASEAN-China Trade Agreement (2016-2020 period), entering 2020, many goods that were subject to tax collection in 2019, now they will still be about 0%. As the import and export tax decreased leading to the VAT also decreasing, while these were the two main sources of revenue of the Lang Son Customs Department in recent years.

Shipments are enhanced through the Dong Dang international railway station. Photo: H.Nu.

Priority clearance, high anti-epidemic

With the current situation of import and export of goods and if the Covid-19 epidemic is not controlled early, it is difficult for the revenue collection of Lang Son Customs in 2020 to be completed as planned. Because the volume of goods cleared through the HuuNghi international border gate is still very low, every day only 300 shipmentshave been loaded and unloaded before the outbreak of Covid-19 increasedthe clearance capacity at HuuNghi border gate to reach 700-800 vehicles per day.

At Tan Thanh border gate, despite goods having been cleared, but in order to be cleared of goods through Tan Thanh - Po Chai border gate, enterprises and small businesses must meet the conditions: goods for import and export procedures must haveappropriate purchase and sale contracts between two parties (commercial contracts). For exchanged goods, the Chinese side has not received. Accordingly, with the current clearance capacity (only making customs clearance for nearly 50 vehicles every day, the time before Tet every day for more than 300 goods) this will have a significant impact on revenue collection.

In order to keep the import and export activities normal through HuuNghi international border gate and agree to open the goods clearance gate at Tan Thanh border gate from February 20. In recent days, Lang Son Customs has been cooperating with agencies, Lang Son provincial departments regularly holding meetings with Chinese agencies to find solutions for goods clearance as well as Covid-19 prevention.

In particular, talking with the Chinese side and successfully piloting the import and export of agricultural products through Dong Dang international railway station.In addition, Lang Son Customs Department has instructed border gate units to coordinate closely with functional forces to implement many epidemic prevention measures and actively exchange and notify enterprises about the situation of import and export goods clearance at secondary border gates, entrances and pairs of border markets.

According to Mr. Nguyen HuuVuong, although the revenue collection work of the unit is facing many challenges, Lang Son Customs Department will find all solutions to overcome difficulties, strive to complete the task at the highest level. The unit's priority at this time is to coordinate with the competent forces to continue to support and create the bestconditions for goods to be cleared; notifying the business community about the situation of import and export goods at the border gate so that enterprises can grasp it; discussing regularlywith Chinese functional agencies to discuss solutions to increase the volume of Vietnam's agricultural exports;providing proactive measures to prevent and control Covid-19 effectively.