Lang Son Customs: enhancing the efficiency of PCA

	Discovery 1 container of banned refrigeration products import to Tan Cang - Cai Mep
	Post clearance audit in terms of Customs valuation within 30 days
	Ho Chi Minh City Customs: Many solutions to reach 950 billion vnd from post-clearance audit

Outstanding results

In 2017, there were 2,724 enterprises in Lang Son. Of which, 368 enterprises were involved in import-export activities with the turnover of US$ 1,719 million (accounting for 13.5% of the total number of enterprises, accounting for 33.7% of the total import-export turnover). The majority of enterprises in Lang Son are import-export service enterprises with small scale and operating time of less than 5 years, so their professionalism and compliance with law are not appreciated.

Talking with a Customs newspaper, Mr. Nguyen Huu Vuong, Deputy Director of Lang Son Customs Department said that with the tremendous effort, the PCA of the Department gained certain results. During the year, the unit issued decisions and conducted 791 PCAs, of which 688 audits have been finished and concluded. The total imposed tax was VND 53.6 billion, of which VND 38.4 billion has been collected. The total administrative fines was VND 5.4 billion. By the end of 31st December 2017, the actual amount paid to the state budget was VND 43.8 billion, higher by 6.3 times the target set by the General Department of Customs. In particular, the Post Clearance Audit Branch has conducted 100 audits, collected and paid VND17.5 billion to the state budget.

According to leaders of Lang Son Customs Department, over the past time, the export-import activities in the area has continued to be complicated, the frauds of price, codes, origins have been increasingly sophisticated and difficult to be detected. This is a great challenge for Lang Son Customs Department, especially in the context of many human difficulties.

In addition, the PCA still has some shortcomings, such as the number of audited enterprises was still low, accounting for less than 5% of the total number of enterprises operating in the province. The number of on-site PCAs was very low, behind the assigned target (8/20 audits). The budget revenue from PCA was high but unstable and subjective and compulsory, especially the revenue from PCA on value. Complaints were common, prolonged, leading to high tax refund (VND10.4 billion).

The shortcomings mentioned above are due to Customs officers in charge of PCA, although the quantity of officers is focused but the quality is still restricted, especially skills of information collection, analysis and synthesis and data process as well as operation of Customs clearance. The PAC units under Branch mainly work under the plurality mechanism. Especially, at the PCA Branch, the information and data collection is very difficult due to the wide scope (nationwide), the time of audit is 5 years (2012-2017), so the data have been updated on many systems. Meanwhile, the Branches are only entitled to the authorization of Branch level and incomplete, especially in the VNACCS / VCIS, QLVP14 system., etc. Therefore, the information review and synthesis is still slow and inadequate.

“In particular, the procedures and regulations on PCA are still entangled, overlapping on authorization to issue decisions on handling of violations, decisions on tax coercion and the process includes many steps, taking a lot of time and human resources. The legal compliance of enterprises is not appreciated as many cases do not comply with inspection decisions or deliberately delay, causing difficulties for audits, but the sanction is not strict enough to deter” Nguyen Huu Vuong stressed.

Many unified solutions

Speaking at a conference to review the performance in 2017 and deploy tasks in 2018 of Lang Son Customs Department on 18th January 2018, Vice Chairman of the People's Committee of Lang Son, Head of the Steering Committee 389 of Lang Son Nguyen Cong Truong stated that the results of PCA of Lang Son Customs have achieved remarkable results. In particular, the amount paid to the state budget was over VND 38 billion, doubling the revenue from anti-smuggling. However, to enhance the efficiency of the PCA, Lang Son Customs need to focus on specific solutions to achieve higher results in 2018.

Deputy Director Nguyen Huu Vuong also said that the Lang Son Customs Department has identified, right from the beginning of the year that it will promote PCAs on code and value, in which focusing on enterprises with signs of high risks; shipments of which value has been declared low and inconsistent with the database; goods of which codes have been inconsistently declared and applied or goods of which results of analysis, classification and guiding documents for classification have been issued.

Accordingly, reviewing and auditing commodities and commodity lines with a big difference of preferential tax rates and special preferential tax rates. Discovering cases ineligible for special preferential tax rates and collecting and paying to the State budget. Strengthening information collection and PCA for groups of key enterprises under the topic of risk control such as the group of enterprises with signs of dissolution, bankruptcy and escape; and the group of enterprises which have been handled on acts of tax and policy fraud and the group of enterprises breaking regulations on taking goods to storage.

At the same time, attaching importance to improving the quality and efficiency of PCA. Complying with PCA process prescribed in laws, decrees and circulars to guide and solve problems arising in a timely fashion. Thoroughly implementing steps after audits such as urging full collection of taxes and fines, and handling administrative violations, etc., in order to concentrate on inspection and assessment of law compliance as well as on-site inspection. Striving to reach and exceed the targets assigned by the General Department of Customs on the number of audits and the budget revenue.

PCA often focuses on enterprises with signs of violations VCN - On 24th January 2018, at the dialogue conference with American business community, leaders of Ho ...

Particularly, the Department will pay attention to training, exchanging, guiding and testing to improve professional qualifications and skills for Customs officers in charge of the PCA. Thereby, promptly detecting and proposing solutions to handle Customs officers who fail to comply with the process, and regulations at the professional steps in Customs clearance, and providing information and giving warnings for risk situations and fraud in import-export activities for the border Customs Branches.