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Customs officers of Lang Son Customs Department inspect imported cars. Photo: H.N

Revenue of many commodities reduces by trillions of VND

According to preliminary statistics on the import and export in the first ninemonths of the year from the General Department of Vietnam Customs, the total value of Vietnam's goods import and export reached US$388.27 billion, increasing 1.65% year-on-year. Of which, total export value reached $202.42 billion, increasing by 4% and total import value reached $185.84 billion, decreasing by 0.8% year-on-year. The trade balance of Vietnam’s goods in the first nine months was estimated a surplus of $16.58 billion.

In September, the total value of Vietnam’s import and export goods reached $51.1 billion, increasing by 1.32% month-on-month. Of which, export value fell 2.2% and import value rose 5.6%. This is considered a positive signal that Vietnam's import-export activities are recovering after the two Covid-19 outbreaks. According to the General Department of Vietnam Customs, import-export activities are showing signs of prosperity, but export value in September of some high-tax rate products slumped.

Specifically, crude oil exports decreased by 50.6% in volume and 43.3% in value compared to August and in the first nine months of the year, crude oil exports increased by 32.2% in value but decreased by 11.6% in value. For other ore and minerals, the country’s export volume in September was 200,000 tonnes, decreased by 39.2% with a value of $11.5 million, declining 55.9% month-on-month. The export volume of those in the first nine months of the year reached 2,366 tonnes with a value of about $178 million, increasing by 2.2% in volume and 3.7% in value.

Crude oil imports in September fell 2.4% in volume and 1.3% in value, making the import volume of this item increase by 40% but decrease 2.8% in value in the first nine months. Petroleum product imports in September dropped 21.2% in volume and 24% in value, making the total of the first nine months of the year fallby 9.8% in volume and 41.6% in value.

Iron and steel imports in September was 1,000,000 tonnes, decreasing by 15.4% and import value was $622 million, decreasing by 4.7% month-on-month. The import volume of this item in the first nine months was 10,362,000 tonnes, falling 4.1% with a value of $6.04 billion, decreasing by 16%.

CBU cars imports in September increased by 43.3% in volume and 26.6% in value compared to August. However, import volume of this item in the first nine months of the year fell 37.2% in volume and 38.2% in volume year-on-year.

According to arepresentative of the Import and Export Tax Department, although import turnover in the first nine monthsdecreased slightly, the taxable turnover of some high-tax rate commodity groups slumped, affecting the sector’s revenue. Revenue of many items reduced a VND trillion such as cars, auto components, steel, machinery and equipment. According to preliminary data, at the end of September 30, the whole sector’s revenue reached VND 227,933 billion, worth67.4% of the estimate and 64.2% of the desired target, falling 13.15% year-on-year.

Arepresentative of the Import-Export Tax Department said the decrease in revenue was due to the complicated developments of the Covid-19 pandemic in some major countries such as China, the US, the EU, South Korea and Japan, which hada direct impact on Vietnam's import-export activities, leading to limited trade, declining demand for goods, difficult customs clearance, decreased labour resources and enterprises and sharp decrease in goods price. Thereby, indirectly affecting State budget revenue, declining VND 34,518 billion year-on-year.

The crude oil price was estimated at $60/barrel. However, in the first nine months of the year, the crude oil price fell less than $40/barrel, making the sharp decrease in State revenue. In addition, in 2020, the FTAs arein aperiod of sharp reduction, some FTAs have been signed and come into effect for most commodity streams with import tax rate reduced to 0%.

Accompany businesses to remove difficulties

Although import-export activities and the Customs sector’s revenue collection in the third quarter were progressing well, however, it is forecast that in the fourth quarter, the revenue collection of the Customs sector will still face many difficulties because the Covid pandemic still occurs in some major countries.

To achieve the highest revenue target amid the complexdevelopments of the Covid-19 pandemic, the Customs sector has implemented a series of policies and solutions on customs procedures to facilitate businesses. Customs supervision and management have been researched and reformed towards providing practical and appropriate solutions to maximise the convenience of businesses. Specifically, Customs does not require customs declarants to submit photocopy paper documents; not require customs declarants to sign or stamp on these documents when sent them via the system.

For the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), Customs does not require businesses to submit documents for full container goods sealed through the whole transport process from the exporting country to Vietnam; accepts the master bill of lading for each journey, accepts the secondary bill of lading if it shows the goods transported from the exporting country to the importing country; does not sanction administrative violations for means of transport beyond the time limit for re-import or re-export if there is a written certification of force majeure event issued by the Lao government for temporary suspension from entry and exit or drivers are under quarantine at the time of re-import and re-export.

According to the General Department of Vietnam Customs, due to the impact of the pandemic, businesses cannot export goods deposited in bonded warehouses and duty-free goods.During the time of storage of goods, which is limited by the provisions of law, the Customs authorities and businesses have not had a solution to handle congested goods at the border gate due to the closing of the border gate by the foreign country, the partner does not receive goods.

The General Department of Vietnam Customs reported to the Ministry of Finance solutions to remove difficulties for businesses towards allowing businesses to extend the time limit of storing goods in bonded warehouses andduty-free shops until the Covid-19 pandemic ends.

For businesses suspending operation or moderately operating due to Covid-19, Customs branches regularly contact businesses in the area to remove difficulties and problems, promptly provide support solutions and effectively manage businesses, prevent bad debts; quickly receive and process tax refund and tax exemption dossiers, helping businesses re-invest, boost production and business, and increase revenue.