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Customs operations of the Customs Branch of North Hanoi. Photo: Ngoc Linh.

Turnover has decreased

The report on the situation in the first 6 months of the Department of Import-Export Duty (the Hanoi Customs Department) showed that the import turnover decreased sharply compared to the same period in 2017, reaching $US 7.78 billion, a decrease of 36% over the same period in 2017. In particular, import turnover reached $US 2.76 billion, a decrease of 34% over the same period in 2017.

According to Mr. Tran Dai Thang, theHead of Import-Export Duty Department, the total import turnover in the first 6 months of 2018 reached $US 2.52 billion, a decrease of 26% over the same period in 2017 ($US 2.52 billion / $US 3.4 billion). The tax amount reached VND 3,745 billion, a decrease of 54% over the same period in 2017 (VND 3,745 billion / VND 8,877 billion). Of which, the only two categories of goods with a higher import tax rate were home appliances (an increase of 15%), chemicals and chemical products (an increase of 3.6%). Although turnover increased, tax revenues still decreased. The cause is that chemicals and chemical products fall into the category of goods subject to tax rate of 0% under the trade agreement.

The remaining 12 groups have the import turnover with reduced tax. In particular, the group that decreased the most were items such as components and automobile parts, with import turnover of $US 162.6 million, a decrease of 53% over the same period in 2017. Revenues decreased by 46.4% (equivalent to VND 800 billion) compared with the same period in 2017. Revenues from automobiles decreased by 305 billion compared to the same period in 2017. Motorcycle components and parts amounted to $US 46.6 million, a decrease of 38.8% over the same period last year.

The machines and equipment group had an import turnover of $US 1.3 billion, a decrease of 11.6% over the same period in 2017. Thus, revenues decreased by 2.065 billion compared to the same period in 2017. The reason is that the investment projects to create fixed assets completed the import in 2017. Tax revenues from telephones and computers reached $US 465 million, a decrease of 43.8% over the same period in 2017. Thus, the revenues decreased by 51.7% (equivalent to VND 576 billion) compared to the same period in 2017.

According to Mr. Tran Dai Thang, in the first 6 months of 2018, the whole department had 502 new businesses, while the number of enterprises which did not have procedures in the department was 384 enterprises. Although the number of enterprises increased, the reduction of revenues from major groups and large enterprises decreased the revenues of the Department compared to the same period in 2017.

Advantages are not fully effective

The advantages of implementing the mechanism of My Dinh ICD are not as expected. The revenues from the border gate transfer mechanism to My Dinh ICD tended to decrease, specifically in the first 6 months only reaching VND 188.45 billion, equal to 44.3% over the same period in 2017 (VND 188.45 billion / VND 424.97 billion). The main cause is the decline of automobiles and automobile parts and investment projects that have been completed. Meanwhile, as for the impact of tariff reductions under trade agreements, the Hanoi Customs Department reduced about VND 200 billion from automobile parts and accessories.

In addition, Decision No. 15/2017 / QD-TTg regulated the list of goods subject to procedures at the border gate, which made some enterprises not continuing to carry out procedures at the Hanoi Customs Department. Out of 12 enterprises (revenues of VND 150 billion) that do not continue to carry out procedures at Gia Thuy Customs Department, only 5 enterprises work at Customs Department of North Hanoi. The reason is due to the high costs of transportation of goods to ICD My Dinh.

Regarding the situation of State budget revenues in the last 6 months of 2018, Head of the Export-Import Duty Division Tran Dai Thang said that the collection tasks would face two more difficulties, leading to shortages. Firstly, there is a loss of VND 400 billion because Toyota will carry out the procedures to reimburse tax incentives under the Decree 125/2017 / ND-CP for automobile components and 200 billion due to policy for goods subject to tax inspection in the Circular No. 39/2018 / TT-BTC.

In addition, goods transferred from border gate to procedures at My Dinh ICD according to Decision No. 38/2017 / QD-TTg, are not checked at the site of Hateco Logistics inspection center. This does not solve the problem of the current border gate transfer mechanism.

Regarding many difficulties in the State budget in 2018, Mr. Tran Dai Thang said that the pressure in the second half of 2018 would be very big. To carry out the task, the Hanoi Customs Department will closely follow the guidance of the leaders of the General Department of Vietnam Customs at the six-month preliminary conference. At the same time, in order to facilitate enterprises in the process of carrying out Customs procedures, the Hanoi Customs Department organized the resolution of difficulties, especially in the implementation phase of Decree No. 59/2018 / ND-CP, Circular No. 39/2018 / TT-BTC and professional processes, highlighting the services to enterprises.

Along with that is strengthening the work of preventing losses through code, price, post-clearance inspections, C/O, quantity. Properly classify tax debts; actively urge to recover debts; check the business information before setting the tax to avoid incurring bad debts.

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At the same time, closely coordinate with other units in the area (PMU and the Hanoi Department of Planning and Investment) to find new projects, increase revenues.