November 24, 2017 14:30

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Ho Chi Minh City Customs: Revenues are lower than the target

10:35 | 03/06/2017

VCN- Although the revenues of the Ho Chi Minh City Customs Department in the first 5 months of 2017 increased over the same period by more than 11%, compared to the target of 2017 (109 trillion vnd), they were still low.

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ho chi minh city customs revenues are lower than the target
Customs operations at the HCM City Customs Department. Photo: T.H.

A high increase of enterprises implementing Customs procedures

One of the noticeable things about import and export activities in Ho Chi Minh City was that the number of enterprises carrying out procedures for exported and imported goods through Customs Branches increased drastically. According to the Ho Chi Minh City Customs Department, by the end of May 2017, the total number of enterprises performing export-import activities in the province reached 33,112 enterprises, an increase of 18.2% over the same period in 2016. The large number of enterprises participating in imports and exports has made turnover and revenues through the Ho Chi Minh City border gate increase sharply. Total import and export value reached $US 34.136 billion, an increase of 18.96% over the same period in 2016. Till 30th June 2017, import-export turnover will reach $US 43.5 billion. Till 15th May 2017, the Department collected 37,850.2 billion vnd, reaching 34.72% of the target, an increase of 11.34% over the same period in 2016.

According to the Ho Chi Minh City Customs Department, from the beginning of 2017, there have been a number of factors affecting the budget revenue of the Department. Although imports increased by 20% (equivalent to $US 1,875 billion) over the same period in 2016, the preferential and special preferential tariff lines for FTAs ​​in 2017 continued to fall by 1% to 3%, even to the level of 0%. In addition, cars under 9 seats imported from ASEAN have reduced import duty from 40% to 30%, and by 1st January 2018, the import duty will be 0%.

According to the Ho Chi Minh City Customs Department, the cause of the number of import and export business procedures in the area increased because the economy of Ho Chi Minh City continued to develop well and the enterprises were quite stable. The Ho Chi Minh City Customs Department has implemented many solutions to support and facilitate import and export activities. In particular, the Department held meetings to interpret the production and business plans of enterprises to support, remove difficulties and problems, so some enterprises have expanded production and business; and a number of traditional enterprises have returned to register Customs clearance in Ho Chi Minh City.

In particular, the revenues from petroleum increased over the same period. According to Mr. Pham Van Tien, the Deputy Manager of the Customs Branch of Saigon port, Zone 3, from the beginning of 2017 to 15th May 2017, the amount of import-export tax from petroleum and oil reached more than 3,060 billion vnd, an increase of more than 300 billion vnd over the same period in 2016. The cause of an increase in revenues of petroleum and oil was an increase in the price of petrol and oil. In addition, there are a number of enterprises implementing import and export procedures in Ho Chi Minh City; and the amount of imported oil of enterprises also increased significantly. However, the Deputy Manager of the Customs Branch of Saigon port, Zone 3, Mr. Pham Van Tien said that from 1st June 2017, businesses trading petroleum started buying petrol and oil from the Dung Quat Oil Refinery, so the amount of imported petrol and oil would decrease, affecting the revenues.

Effort to increase revenues

In 2017, the Ho Chi Minh City Customs Department was assigned to collect taxes of 109,000 billion vnd (an increase of 6.34% compared to the target of 2016 - 102,500 billion vnd). From the beginning of 2017, the Ho Chi Minh City Customs Department has focused on promoting measures to prevent loss of revenue, properly collected full of taxes through import-export activities, creating the most favourable conditions for the business community, meeting and nurturing revenue sources, updating production and business plans of enterprises to support and promptly solve difficulties and difficulties of enterprises.

Recovery of tax arrears has been also concerned by the Ho Chi Minh City Customs Department. Till 15th May 2017, the total tax debts in the Customs Department of Ho Chi Minh City were 2,553.8 billion vnd. In particular, irrecoverable debts were 1,392.6 billion vnd; the recoverable tax liability reached 1,161.1 billion vnd (debts overdue 90 days were 982.013 billion vnd, overdue debts less than 90 days were 150.12 billion vnd, and late tax payment was 28.999 billion vnd). In 2017, the Ho Chi Minh City Customs Department shall strive to recover more than 900 billion from debtd according to the target assigned by the General Department of Vietnam Customs. In order to achieve this result, in addition to deploying the receivership solution under the Law on Tax Administration, the HCM City Customs Department has developed a debt management handbook; checked and revised all debts: cases of debt exceeding 90 days as from the date of issuance of tax assessment decisions for organization of enforcement according to regulations.

According to the HCM City Customs Department, the taxable price is a component of the state budget revenue. Over the past years, enterprises have been well in compliance with the Law, declaring the correct taxable price, there have been still many fraudulent tax calculation companies. HCM City Customs Department has held a conference to deploy solutions. Accordingly, the Department has assigned each civil servant in charge of a number of groups of goods on the list of goods subject to export or import value risks; daily reviewed and updated consultancy results, post-clearance inspection, price determination of the Customs Branch’s programs.

ho chi minh city customs revenues are lower than the target Ho Chi Minh City: Nearly 1,400 billion vnd of tax debts

VCN- According to the Ho Chi Minh City Customs Department, until May 15th, 2017, total tax debt ...

On the inspection of value, inspection of goods, consultation, and post-clearance audits, the Ho Chi Minh City Customs Department has requested Customs officers when carrying out customs procedures at the step of receiving, Customs dossiers, customs valuation checks and physical inspections to declare full names of goods and details of relevant factors which affect Customs value (trademarks, model, utility, composition, quantity, size ...) in accordance with regulations. Civil servants at the consultation step, post clearance clearance must carefully study the records, collect sources of information, prepare in advance the content of work with businesses to results consultation after Customs clearance. Determining to inspect goods in the Green Channel because now goods in the Green Channel declaration are very large, with a high risk of smuggling, trade fraud through price, codes, causing huge losses to the State budget.

By Le Thu/ Hoang Anh