January 22, 2017 23:21

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Vietnam Customs: Exceeding 2016 revenue target

14:08 | 09/01/2017

VCN- 2016 was considered to be a challenging year for the collection of State budget revenues in Customs because revenues of main imported commodities with a high tax rate declined, especially a decrease in crude oil prices and Free trade Agreements (FTA) came into force. 

tong cuc hai quan no luc vuot so thu ngan sach Quang Ninh Customs: Reform to create maximum conditions for enterprises
tong cuc hai quan no luc vuot so thu ngan sach Customs revenues reached more than 100.8% of target
tong cuc hai quan no luc vuot so thu ngan sach Hanoi Department of Taxation to collect more than 187.5 billion vnd in 2017
tong cuc hai quan no luc vuot so thu ngan sach
The Customs continues to promote reforms of administrative procedures, facilitating enterprises in the field of import and export. Photo: T. Trang.

However, with many efforts, Customs achieved the highest amount of revenues, exceeding the assigned target.

In 2016, Customs was assigned to collect 270,000 billion vnd by the National Assembly, the Government and the Ministry of Finance. Besides, the Party Committee of the Ministry of Finance assigned Customs to collect 275,000 billion vnd. It was quite difficult for Customs to accomplish the target, because the target was built in 2016 on the basis of macro-economic indicators with an estimated GDP of 6.7% and total import-export turnover increasing by 10%. In fact, GDP in 2016 was only about 6.21% and the total import-export turnover increased by only 4%, which showed that manufacturing and business activities did not meet expectations and put a big impact on Customs revenues.

In this context, Customs both overcame those difficulties and facilitated enterprises in import-export as well as ensuring the requirements of Customs management.

From 1st September 2016, with the implementation of the Law on Import and Export Duty, Customs revenues for the State budget were affected due to the provisions on extension of tax payment time for AEO enterprises. Especially, with the signing of free trade agreements (FTA) a stream of imports of some commodities have high tax rates, impacting on State budget revenues for the Customs sector.

By the end of the first 10 months of 2016, the taxable export turnover had decreased by 10.2%, but taxable import turnover increased by 6%. Theoretically, if there had been no other impacts, Customs revenues in the first 10 months of 2016 would have increased by 6%, but actual revenues increased only 2.8% compared to the same period in 2015. On the other hand, the import turnover of shipments with C/O in 2015 accounted for 21.19% of total taxable import turnover; while in the first 9 months of 2016, it accounted for 23.03%, an increase of nearly 2%. Thus, we can see that a deep tax cut made import enterprises focus on markets with more preferential import tax rates.

In order to prevent revenue losses, the leaders of the General Department of Vietnam Customs requested subordinate units to carefully review and analyze the factors which made revenues increase or decrease. Specifically, the General Department of Vietnam Customs publicized tasks of State budget revenues to local Customs and urged delegates of the General Department of Customs to require localities to implement measures to reduce losses of State budget revenues. Along with that, professional guidance teams also implemented examination of tax policies and Customs procedures in localities and enterprises with a high tax debt, and complicated and sensitive products.

By the end of October 2016, despite many efforts of Customs, Customs revenues for the State budget only reached 215,760 billion vnd, equivalent to 79.9% of the budget target. To meet the target (270,000 billion vnd), in the last two months of 2016, Customs had to collect 55,300 billion vnd, equivalent to 27,650 billion vnd per month, 6.000 billion vnd higher than the previous months of 2016 (21,470 billion vnd). Thus, this task seemed to be "impossible".

Regarding solutions to improve the State budget revenues in the last months of 2016 at an online conference, the Director General of the General Department of Vietnam Customs, Nguyen Van Can directed subordinate units to tighten management regulations to prevent losses. In particular, Customs officers should focus on reviewing and checking imported and exported commodities which must meet specified conditions to enjoy special preferential tariff. Also, reviewing imported commodities which were registered to enjoy tax exemption to find out whether these commodities were classified properly.

In November and December 2016, there was a series of meetings with the leaders of the Ministry of Finance and the General Department of Vietnam Customs to strive for the target of State budget revenues. Accordingly, 35 Customs Departments in Vietnam tried their best to accomplish this political task. In which, there were many Customs Departments having effective and outstanding measures to increase the State budget revenues such as: Ho Chi Minh City, Ha Noi, Hai Phong, Bac Ninh, Ha Giang, Da Nang, Binh Duong, Quang Nam, Long An, Can Tho, Cao Bang, Tay Ninh, Gia Lai - Kon Tum, Dien Bien, Binh Phuoc, An Giang, Ca Mau and Kien Giang.

By the end of November 2016, total revenues of Customs reached 239,454 billion vnd, equivalent to 88.7% of the target. In the last days of 2016, Customs spent all human resources on racing against time to reach the highest amount of State budget revenues. With many united solutions, Customs arranged Customs officers at seaports and border gates to work all days (including Saturday and Sunday) to ensure clearance of goods to be smooth 24 hours per day and facilitate enterprises in the field of import and export. Also, the General Department of Vietnam Customs proposed to the State Treasury and commercial banks to collaborate with the General Department of Vietnam Customs in collection of revenues, arranging staff to work Saturday and Sunday to facilitate enterprises as well as accelerating Customs clearance of goods.

Thanks to flexible and drastic solutions along with the close and effective direction of leaders of the Ministry of Finance and the General Department of Vietnam Customs, Customs achieved the high result in the collection of State budget revenues. According to data from the State Treasury, to the end of 31st December 2016, Customs revenues for the State budget in 2016 reached 272,167 billion vnd, equivalent to 100.8% of the assigned target.

tong cuc hai quan no luc vuot so thu ngan sach State budget revenues in 2016 exceeded the estimate

VCN- Speaking at an online conference between the Government and local authorities on the morning of 29th ...

Regarding the results of Customs revenues for the State budget, on behalf of the General Department of Vietnam Customs, the Director General, Mr. Nguyen Van Can sent a letter to praise and appreciate the efforts of Customs Departments of provinces, cities and subordinate units under the General Department of Vietnam Customs in the collection of Customs revenues in 2016. Specifically, the Director General noted and praised the efforts of all Customs officers, civil servants and employees in Customs in overcoming difficulties and challenges to successfully complete the task of State budget revenues for 2016.

Also, the Director General hoped that the results of the State budget in 2016 would create an important foundation for Vietnam Customs to successfully accomplish the task for 2017 assigned by the Government and the Ministry of Finance.

By Thu Trang/ Hoang Anh