Quang Nam Customs: Overcoming dual difficulties to facilitate enterprises

VCN – The outbreak of the Covid-19 pandemic again has directly affected all aspects of management, including the budget revenues of Quang Nam Customs Department. The unit is trying to overcome dual difficulties, both preventing the pandemic and facilitating import-export activities.

quang nam customs overcoming dual difficulties to facilitate enterprises
Ky Ha port border-gate customs officers (Quang Nam Customs Department) carry out procedures for enterprises. Photo: Thu Hoa

Dual impacts

According to Quang Nam Customs Department, the department’s State budget revenue decreased sharply compared to 2019. The department's revenue mainly depends on Truong Hai Auto Joint Stock Company (accounting for more than 90% of the department’s total revenue). Notably, key products with high taxes have dropped sharply.

In April, implementing social distancing, the imports of sets of components, components, materials, machinery and equipment of Truong Hai Auto Joint Stock Company decreased by 80.42% over the same period, with tax revenue of VND 55.2 billion, down 87.5%. In addition, most of the other goods also had lower tax than the same period, such as: raw materials for ceramic tile production reached VND 5.4 billion, down 29%; spare parts for machinery and equipment for sewing and textile needle production reached VND 8.1 billion, falling 25.5%.

During the stabilisation period after the first pandemic period (from July 16 to August 15), budget revenues of the Customs Department of Quang Nam province began to rise, reaching VND 701 billion, up 30.11% over the previous month (especially from June 16 to July 31,when the social distancing was not applied, the revenue reached VND 472.4 billion). Increased revenue in this period mainly came from imported sets of components, components, raw materials, machinery and equipment of Truong Hai Auto Joint Stock Company hitting VND 638 billion because the company raised imports to enjoy preferential policies on registration fees under the Prime Minister's Decree 70/2020 / ND-CP, which stipulates the registration fee rate for domestically manufactured and assembled cars is equal to 50% of of the rate as described. However, in this month, Truong Hai Auto Joint Stock Company was refunded under the preferential programme on import tax on auto components and spare parts under Decree No. 57/2020 / ND-CP, C/O supplementation and overpayment with a tax refund of 670.86 billion VND, so the actual State budget revenue of Quang Nam Customs Department from this company reached VND 30.14 billion VND, decreased 94.41% compared to the previous month.

Facilitate import and export activities

Facing the above situation, Quang Nam Customs Department determined the prevention and control of the Covid-19 pandemic as a key, urgent and drastic task, while ensuring import, export, entry and exit activities, contributing to completing assigned tasks.

The leader of Quang Nam Customs Department visited each branch to grasp information and direct pandemic prevention, and requested civil servants perform physical inspection of goods, luggage and vehiclesto wear masks and gloves according to pandemic prevention standards. Along with that, based on the characteristics of the management area, the customs branches mustgrasp information from enterprises, especially businesses related to the countries where the pandemic is detectedto provide timely support and solutions. Of which, special attention should be paid to facilitating fast clearance of goods, machinery, equipment, raw materials and materials for production of enterprises. Priority is given to creating conditions for immediate settlement of cases of tax exemption for imported goods for timely disease prevention and control in compliance with regulations.

Quang Nam Customs Department said the budget revenue of the unit in the following months continues to decline sharply, revenue in September and October is estimated at only about VND 200 billion. It is expected that as of October 15, 2020, the budget revenue of Quang Nam Customs Department will reach 2,473.47 billion VND, a year-on-year decrease of 40.44%, only 47.11% of the target assigned by the Ministry of Finance and desired target assigned by the General Department of Customs (VND 5,250 billion).

By Le Thu/ Huyen Trang

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