Quang Ngai Customs' revenue flourishes thanks to steel and coal imports

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Quang Ngai Customs officers carry out procedures to supervise imported goods. Photo: T.H

Iron ore and coal imports increased 8 times

According to the Quang Ngai Customs Department, the unit's revenue mainly comes from two enterprises with large revenues, Binh Son Refining and Petrochemical Company and Hoa Phat Dung Quat Steel Joint Stock Company. The improvement in import-export activities of these enterprises in the beginning of the year has had a significant impact on the unit's revenue. In the first month of 2024 alone, the total import-export turnover recorded by Quang Ngai Customs Department soared 121% year-on-year to US$1 billion. Of which, taxable turnover reached over US$581 million, doubling compared to the same period last year.

Taxable imports of iron ore and coal of all kinds increased by more than 836%; the tax receivable surged by 450.18%; taxable imports of steel and steel products increased by 1,083.27%, the tax receivable for this group rose by 55.44%; the taxable imports of machinery, equipment and other goods grew by 295.48% over the same period last year, the tax receivable for this group soared by 1,268.15% over the same period last year.

With high taxable import-export turnover, the state budget remittance of Quang Ngai Customs Department in the first month of the year reached VND1,361 billion, an increase of over 116% year-on-year. Of which, Hoa Phat Dung Quat Steel Joint Stock Company contributed VND961 billion, accounting for 70.62%: Binh Son Refining and Petrochemical Joint Stock Company VND284 billion, accounting for 20.88%; revenue from wood chip exports and other revenues reached VND115 billion, accounting for 8.5%.

According to Quang Ngai Customs Department, until February 15, 2024, the unit recorded a trade turnover of over US$1.2 billion, and remitted to the state budget nearly VND2,000 billion.

According to Deputy Director of Quang Ngai Customs Department Huynh Van Cuong, the increase in budget revenue in the first month of 2024 is mainly due to the import activities of the two above-mentioned businesses. However, in March and April, Binh Son Refining and Petrochemical Joint Stock Company will carry out a periodic maintenance plan for the factory, so its imports will decrease significantly. In addition, crude oil, raw materials such as scrap, ore, coal... are the items that account for the main revenue at the unit, but are greatly affected by factors such as exchange rates and supply, trade wars between countries... Currently, it is forecasted that the USD exchange rate will increase, leading to businesses holding back on imports. In particular, for Hoa Phat Steel Company, the inventory is still large, so it is possible that the company will import less than planned. On the other hand, crude oil prices fluctuate unpredictably, making it difficult to forecast future data

Expectations from major projects

With the characteristics of state management of customs in the area with many export processing enterprises and some large investment projects of the province, in addition to facilitating trade for specific types of export processing enterprises, Quang Ngai Customs Department also pays attention to and supporting procedures for investors to carry out investment projects in each phase. Through Department Competitiveness Index of the province, Quang Ngai Customs Department is one of the units continuously ranked in the top with the highest index in the province, making an important contribution to promoting and attracting investment, facilitating import and export activities of goods. The unit has also proactively carried out dissemination of laws to the business community, strengthened the Customs-Business partnership, and advised on timely handling of arising problems.

According to Deputy Director Huynh Van Cuong, in 2024, Quang Ngai Customs Department is assigned a state budget revenue target of VND7,780 billion. The unit expects to earn revenue from large investment projects. In 2023, Quang Ngai province has licensed investment for six projects, including two large projects that will help revenue growth in 2024 and the following years of the Quang Ngai Customs Department, such as: Hoa Phat Dung Quat high-quality rolled steel plant and Quang Ngai Messer industrial gas factory. Currently, Hoa Phat Dung Quat steel project has been completed and put into stable production phase 1. Up to now, the unit has received the tax exemption list for the project to expand Hoa Phat Dung Quat 2 iron and steel production complex.

To create favorable conditions for investors to implement projects, Quang Ngai Customs Department is always interested in supporting customs procedures through administrative procedure reform, customs modernization, and trade facilitation. At the same time, the unit will proactively dialogue with businesses to promptly remove difficulties and problems that arise within its authority related to customs procedures, tax policies, tax management, and accounting regimes, tax refund regime, tax exemption...

In addition, Quang Ngai Customs Department also regularly reviews and firmly grasps revenues, closely monitors the state budget remittance, promptly analyzes and reports factors affecting revenue, and advises and proposes timely solutions to problems related to regimes and policies affecting revenue. At the same time, the unit focuses on checking the taxable value of goods with high tax rates, large import-export turnover, and high risk of trade fraud; conduct consultation and post-customs clearance inspection for shipments suspected of customs value database, creating a fair business environment for investors and businesses...