Nghe An Customs’ revenue affected by Covid-19 pandemic

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Customs operation at Nghe An Customs Department.

In the first two months of 2020, the Nghe An Customs Department’s revenue only reached VND 175.5 billion, completing 9.8 percent of the estimate (VND 1,800 billion), reaching 9.3 percent of the target (VND 1,890 billion), decreasing by 20.9 percentcompared to 2019 (VND 222.12 billion), especially a sharp decrease compared to the last month of 2019 (VND 226.9 billion). The progress of revenue collection is slow and faces difficulties due to the effects of the Covid-19 pandemic.

Import-export goods at its Customs branches, especially Vinh Customs Branch (where revenue accounts for more than 50 percent of the department’s total revenue) are mainly from China, Korea and ASEAN member states. The volume of goods imported and exported from China and Korea dropped sharply compared to previous months due to the effects of the Covid-19 pandemic. The number of declarations decreased by 16.6 percent compared to the last two months of 2019, import-export turnover decreased by 46.7 percent and only reached 70.2 percent compared to 2019.

At Cua Lo Seaport Customs Branch, the revenue from petroleum products fell significantly, the volume of acacia wood chips exported to China was only 1/3 of months before the outbreak Covid-19. Import-export turnover decreased by 45.7 percent compared to the last two months of 2019, the revenue only reached 44 percent of the last two months of 2019 and decreased by 4% compared to 2019.

In addition, many enterprises have focused on preventing and controlling the pandemic; releasing exported goods gathered at seaports to countries in the pandemic-hit areas. Thereby, many post clearance audits must be delayed. This affected the post-clearance audit plan as well as revenue collected from audits.

With complex development of the Covid-19 pandemic, it is forecasted that import-export activities of enterprises will sharply decrease, especially those with partners in China, Korea and European countries. The completion of State revenue target of VND 1,800 billion and the desired target of VND 1,890 billion of Nghe An Customs Department is very difficult.

However, to prevent theCovid-19 pandemic according to direction but still ensure completion of assigned tasks, from February 7 to March 9, leaders of Nghe An Customs Department issued six documents to direct its subordinate units.

Continue to implement measures to increase budget revenue and closely follow revenue plan in 2020 to implement on schedule, monitor effects of the Covid-19 pandemic to review revenues in the whole department. Customs branches strive to complete the assigned targets according to Decision No. 589/QD-HQNA dated March 3, 2020 of Nghe An Customs Department.

Process customs procedures according to regulations and facilitate quick customs clearance for goods, machinery, equipment, support tools and pharmaceuticals serving prevention and treatment of acute respiratory infections caused by new strains of coronavirus. Promptly implement import tax exemption for goods serving for disease prevention according to Decision No. 155/QD-BTC dated February 7 of the Ministry of Finance and guidance in Official Dispatch No.864/TCHQ-TXNK dated February 14, 2020 of the General Department of Vietnam Customs.

Delay inspections and examinations at enterprises’ sites if there have no signs of violations; or conduct inspections but agree with enterprises on appropriate working time to create conditions for enterprisesto stabilize production and business during the pandemic prevention and control period.

In addition, units should also arrange isolation areas at physical inspection sites to inspect raw animal products or foods processed from animals imported from countries that have pandemic-hit areas. Officers who conduct physical inspection of goods must carry out disinfection and personal hygiene promptly after performance.

Enforcement forces focus on strictly controlling and supervising at border gates, tracks, crossing borders, border areas for people and vehicleson entry and exit. At the same time, strengthen the prevention and combat of smuggling, closely coordinating with competent agencies and local governments in preventing, investigating and handling violations for cases of illegal entry or illegal transportation of wildlife and goods across borders. Focus on patrolling and controlling to detect, arrest and strictly handle trade and transportation of items used for Covid-19 pandemic prevention.