Quang Binh Customs: Decline in revenue collected from imported machines and equipment

Professional activities at Hon La port Customs Branch, Quang Binh Customs Department. Photo provided by Hon La port Customs Branch

Fluctuating source of revenue

In the first quarter of 2022, import-export activities through Quang Binh area did not have fluctuations in the type of goods and type of import-export compared to the same period in 2021.

Accordingly, by the end of April 18, Quang Binh Customs Department processed clearance procedures for more than 3,500 customs declarations, with a volume of goods of more than 1.3 million tons and a value of US$424 million.

The main export items included clinker, ilmenite (concentrates), wood chips, construction materials, agricultural products, consumer goods, and animal feed. Meanwhile, imported goods include agricultural products, gypsum, iron ore, fertilizer, live cattle, raw chicken, sugar, and raw materials production of processed goods. Transit goods include fruits of all kinds, copper ore, iron ore, electronic goods, fertilizers, and charcoal.

According to statistics from Quang Binh Customs Department, the targets of revenue collection through the area have achieved the average level of the whole sector. In particular, the revenue from traditional goods remained stable and often incurred procedures, including iron ore and gypsum.

However, revenue collection has fluctuated greatly due to the main products. Particularly in the first quarter, revenue from imported machinery and equipment for creating fixed assets for investment projects in the area decreased by over 90% (only VND1.6 billion).

Talking to Customs News, the leader of Hon La Port Customs Branch (Quang Binh Customs Department) said that by the end of April 18, the Branch had collected VND32,849 billion. In particular, a number of traditional products which have stable revenue such as clinker, wood chips, and Ilmenite (concentrate) for export contributed VND30,305 billion.

However, revenue from imported machinery and equipment, exported limestone and construction stone decreased by 99%-100%, leading to a decrease of 79% in revenue over the same period last year.

"Revenue from the group of machinery and equipment decreased because most of the investment projects in the area are in the completion stage," the leader of the Branch said.

Besides the fluctuations in budget revenue, also through the review of Quang Binh Customs Department, a number of import-export goods through the area are subject to amendment by Decree 15/2022/ND-CP of the Government on tax exemption and reduction policy following Resolution No. 43/2022/QH15 of the National Assembly, including wood of all kinds, tapioca starch, cosmetics, machinery and equipment, cartons, which reduced VAT from 10% to 8%. Therefore, it is forecast that the revenue collection through the unit will decrease by about VND3.5 billion in 2022.

Removing difficulties for businesses

Talking to Customs News, Deputy Director of Quang Binh Customs Department Tran Van Trang said the unit had focused on implementing Directive 439/CT-TCHQ dated February 11, 2022 of the General Department of Vietnam Customs, as well as effectively implementing solutions, striving for the highest results in state revenue collection.

Accordingly, based on the actual situation, the Department had assigned targets to the branches, as well as directed the affiliated units to analyze, evaluate and forecast the import and export situation in the area to develop and implement revenue collection measures; closely monitor and manage the state budget collection and payment; focusing on creating new sources of revenue.

For example, actively grasp the situation of enterprises, especially investment projects in the area. At the same time, focusing on supporting and providing information for customs declarants and taxpayers; promptly grasping and solving difficulties and problems for enterprises related to customs procedures and tax policies in order to create maximum advantages for enterprises in import-export activities. Along with that, closely monitoring the situation of tax collection, urge the collection of tax debts in order to avoid generating bad debts as prescribed.

“In the future, the unit will continue to strengthen strict control of the area, and coordinate with competent forces in the fight against smuggling and illegal transport of goods across the border. On the other hand, focusing on collecting information, analyzing risks, checking and assessing the law compliance of enterprises, fields, items, and groups of products with high risk in terms of value, quantity, and HS code of goods, origin, especially goods with high tax rates and great value," Tran Van Trang said.