Business Business

11/12/2018 - 08:06

Customs sector makes a “breakthrough” in its budget revenue collection

By this time, the provincial Customs Department has exceeded its assigned budget revenue collection which increased nearly 35% over the same period.

Talking about the Customs’ “outstanding” results contributing to the province's total revenue, Mr. Hoang Van Hien, the Director of the provincial Custom Department, in an interview conducted by Hue News, informed:

Mr. Hoang Van Hien - Director of the provincial Customs Department

In 2018, the Ministry of Finance has assigned the provincial Customs Department to collect a state budget revenue of VND 420 billion, an increase of 2.3% compared to the actual revenue in 2017 (VND 410.3 billion). On the basis of the provincial state budget revenue, the General Department of Customs assigned the department an additional target of VND 520 billion in 2018, an increase of 26.8% compared to the actual revenue collection of the year 2017. Defining that this is an important and difficult task, at the beginning of the year, the Department has directed its subordinate units to actively develop and implement their state revenue collection plans to achieve the set progress.

Up to the end of November 2018, the department has collected VND 499.6 billion of the state budget revenue, which is 118.9% of the 2018 assigned estimated budget (VND 420 billion), achieved 96.08% of the 2018 target (VND 520 billion), and 34.5% higher in comparison to the same period in 2017. It was forecasted that the revenue collection would reach over VND 520 billion by the end of 2018.

How could the department achieve such result, Sir?

First of all, the Government's efforts to accelerate institutional reform and macro-economic stabilization, as well as the province’s focuses on promoting tourism and service development, encouraging industrial development, innovation, start-up and enterprise development have created a driving force for increasing production and business activities in general, import/export and entry/exit activities in particular.

By the end of November 2018, the total import and export turnover reached USD 1.35 billion, an increase of 11.6% over the same period in 2017. In particular, the import and export turnover of taxed  goods increased almost 29%.

Goods is being cleared at Phu Bai bonded warehouse

During the year, the department has focused on implementing solutions to improve customer satisfaction in customs’ administrative procedures associated with an implementation of solutions to support the provincial “Year of businesses” program. It also organized dialogues between the Customs and enterprises, introduced new documents, instructed new procedures for businesses in the province, and frequently and timely solved problems in customs’ procedures. Its subordinate units always provided active support and created favorable conditions for organizations and individuals to conduct import/export and entry/exit activities. As a result, it has attracted 16 new businesses to carry out procedures at the department.

Could you tell more details about which sectors or industries were accredited with contributing to the excessed budget revenue collection?

Import and export items that mainly increased include raw materials for production, processing and exporting, equipment for fixed assets of investment projects, hot bitumen, processed and export products, export wood chips. Some items of enamel frit production increased by 47%. Vehicle spare parts and accessories production increased by nearly 27%. The materials for beer can production increased by approximately 37% compared to 2017. These have contributed to the increased state budget revenue collection.

A number of new investment projects in the province, which have been carried out and implemented imported machines and equipment such as Rao Trang 4 Hydropower Plant, Phong Dien Solar Power Plant Project of Gia Lai Electric JSC, Thua Thien Hue Water Supply Company's manufacturing plant project and plumbing system project have had a positive impact on the entire sector’s revenue collection result.

Will the state budget revenue hold steady in 2019?

In 2019, in the context of Vietnam's deeper integration into the international economy, the signing and implementation of multilateral and bilateral trade agreements (FTAs), the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the EU-Vietnam Free Trade Agreement (EVFTA) will bring opportunities as well as challenges to domestic enterprises since the competitiveness will grow. As a result, the tariff reductions down to 0% of about 7% of the tariff line according to the FTAs’ roadmap, equivalent to 687 items will influence and reduce the state budget revenue collection of Vietnam Customs in general and the provincial Customs Department in particular.

In the period of 2019-2021, there is no big and important investment project in the province. New investment projects in 2018 have almost completed their machine and equipment import to create fixed asset. Therefore, the revenue collection from this group is forecasted without any sudden mutation.

Does that mean we should not rejoice yet?

Right. Due to the fact that export and import activities in the province will mainly include such traditional product groups as raw materials for production, processing and export, hot asphalt, export wood chips..., there have not been any new and high-tax rate items. Meanwhile, traditional goods sources are still the main contributors to the sector's revenue. This requires the Customs Department and its subordinate units to invest in infrastructure, reform and modernize customs clearance procedures, and support partner business as well as newly registered customers.

So, what did the sector do to achieve these goals?

The very good news is that most of the businesses conducting customs procedures well abided by regulations. There have been no fraud in goods declaration or smuggling... additionally, the department has accelerated the Customs’ administrative reform and modernization, enhanced IT application in management activities, and focused on organizing the mechanism and improving staff quality.

The VNACCS/VCIS automatic goods clearance system, E-Manifest and the sector’s processing systems continue to be smoothly and promptly operated to resolve customs declarations, export/import of means of transport and entrance /exit passengers. The department receives and processes customers’ dossiers through the online public service system; coordinates with the State Treasury and commercial banks to collect state budget revenue and taxes from 100% of businesses in the province by electronic means; receives and makes good use of inspection results from 11 ministries and sectors to grant customs clearance permits for export/import goods through the national one-stop mechanism. These will help contribute to reducing expenses and time-consuming and creating maximum conditions in customs procedures for enterprises.

Thank you for your time!