Revenue Collection by Customs likely to remain static

	Changes in Customs Statistics – Questions Raised
	Customs revenue targets exceeded by 5 Departments
	Customs in central provinces: revenue shortfall!

On the basis of preliminary statistics, in July the entire value of Vietnam’s imports and exports reached $US 29.2 billion, decreasing by 0.8% compared to the previous month, (of which exports attained $US 14.9 billion, increasing by 1.1% in comparison with the previous month; imports reached $US 14.3 billion, falling by 2.7% compared to the previous month). The total revenue collected by Customs in July was around 21,864 billion vnd, reducing by 3,270 billion vnd, equivalent to a decrease of 13% in comparison with June, 2016 (25,134 billion vnd).

According to Import and Export Duty Collection Department’s analysis, the fact that the amount of revenue collected by Customs in July went down drastically in comparison with June resulted from a decrease in the import and export volumes subjected to taxes in June. Particularly, import turnover subjected to taxes reduced by 10.6%, leading to a great decrease in revenue (97% of revenue come from imports)

For imported gasoline in July, the amount of imported gasoline subjected to taxes reached 685,000 tons, equivalent to 73% of imported gasoline in June (930,000 tons). The turnover subjected to taxes attained $US 292 million, equivalent to 68% of the import turnover in June ($US 430 million), resulting in a decrease of about 700 billion vnd.

Imported automobiles subjected to taxes in July were 10,586, going up by 34.8% in comparison with the number in June. However, the value only reached $US 200 million, falling by 3.5% compared to June. The turnover of automobiles with fewer than 9 seats went down by 28.4% compared to June because the special consumption tax for larger cylinder cars has increased since July 1st 2016, reducing the revenue by around 1,000 billion vnd. These vehicles attract a high duty rate, accounting for nearly 85% of the revenue collected from all kinds of automobiles.

Steel importation also went down. The turnover of imported steel was $US 555 million, reducing by 18.7% in July compared to June. That caused a decrease in revenue of about 350 billion vnd.

Thus, the whole amount of revenue collected from the three foresaid items which fell was approximately 2,050 billion vnd. Besides, importation of other items subjected to taxes dropped in July such as ore and minerals (down by 33%), chemicals (by 15%), drug (by 19%), household appliances and spare parts (by 21%), wood and wooden products (by 21%), paper of all kinds (by 21%).

At several provincial departments of Customs which attained great revenues, import and export dwindled significantly in July. Mr. Tran Dai Thang, Head of import and export division under Ha Noi Department of Customs revealed the total import and export volume decreased by 18% in July compared to the volume in June, of which import turnover subjected to taxes dropped by 5 % and export turnover subjected to taxes declined by 41%.

According to Ho Chi Minh City Department of Customs’ statistics, the entire import and export volume reached $US 6.215 billion in July, reducing by 2.41% compared to June ($US 6.369 billion). Imports valued $US 3.399 billion, decreasing by 1.66 % in comparison with the same period in June ($US 3.456 billion). Exports reached $US 2.816 billion, falling by 3.3% compared to the corresponding period in June ($US 2.913 billion).

The statistics of the turnover of imported goods subjected to taxes shows that import turnover was only $US 2.396 billion, decreasing by 1.64% compared to the number of $US 2.436 billion (the total amount of import duty collected was 7.704 billion vnd, going down by 11.63% in compared to June). Export turnover reached $US 2.019 million, dropping by 30.3% in comparison with the amount of $US 2.897 million in June (the total amount of export duty was $US 4.788 million, decreasing by 31.38% compared to June).

At Hai Phong Department of Customs, in the first 7 months this year, the revenue increased but importation of certain items subjected to high duty rates reduced in comparison with the same period in 2015. For instance, importation of certain goods fell down such as automobiles by 34.38%; motorbike by 75.15%, spare parts of motorbikes by 15.3%, beverages by 16.83%...

It seems that all measures to ensure the national revenue were applied by Customs in a uniform and drastic manner. The measures can be listed as follows: trade facilitation; anti-smuggling and combating commercial fraud; reinforcing post clearance audit; strengthening Customs valuation consultation in the light of the amended list of value risks…which brought about efficiency and the revenue of 150,734 billion vnd in the first 7 months of the year 2016, equivalent to 55.8% of the estimate. Nonetheless, the average revenue of the last 5 months must be 22,725 billion vnd to achieve the yearly target.

As calculated by the Import and Export Duty Collection Department, the revenue from gasoline in the first 7 months attained 14,250 billion vnd, i.e. average monthly revenue of 2,000 billion vnd. The revenue from imported gasoline was high because the turnover of goods subjected to taxes in the first 7 months of 2016 was 6 million tons equivalent to 75% of the annual estimate. Therefore, imported gasoline and revenue in the last months of this year may not reach the rate of the first 7 months.

On the other hand, special consumption tax rates for larger cylinder automobiles have risen significantly since July 1st 2016. Hence, the number of imported automobiles with fewer than 9 seats would not be as many as the number attained in the first 7 months. The amount of small cylinder automobiles which are home made and granted with lower tax rates would not increase much. The revenue in July was 21,864 billion vnd, partly because of the transition time of applying the two special consumption tax rates. Some consignments of imported automobiles were declared and temporarily assessed at low special consumption tax rates in June and then the traders made supplementary declaration and paid taxes. This would not be repeated since August this year. Thus, the revenue collected from imported automobiles is likely to fall significantly.

To sum up, the revenue collection by Customs in the 5 remaining months of the year is forecast to meet some difficulties. This requires Customs’ effort as a whole in performing its important tasks against the background of the current finance and State budget.