VCN- Facing the Covid-19 pandemic, import-export activities of businesses in Ha Tinh are forecast to continue to face difficulties, import-export turnover and the State revenue will will certainly decrease. A representative of Ha Tinh Province said that the department continues to mobilise all resources to facilitate businesses and strive to complete the assigned targets at the highest level.
|Ha Tinh Customs reviews revenues before Covid-19 impacts|
|Ha Tinh Customs’ revenue down 40 percent|
|Vung Ang Customs continues to facilitate and implement quick customs clearance for shipments for production of Ha Tinh Formosa Company. Photo: Phan Tram|
Turnover plummets due to pandemic
According to Ha Tinh Customs Department, in the first five months of the year, due to the effect of the Covid -19 pandemic, Ha Tinh’s import and export turnover plummeted, greatly affecting the department’s revenue. Until the end of May 21, 2020, the department’s revenue only hit VND 1,800 billion, equivalent to 26.8% of the estimate (6,700 billion), down by 36% compared to 2019.
Until the end of May 15, the entire department had processed 3,484 declarations, down by 19.6% compared to 2019 with a total import-export turnover of US$1,043.1 million, down 25.9% compared to 2019. The department also carried out procedures for 36,597 vehicles on exit and entry, down 28.8% compared to 2019.
Talking to Customs News, Dao Chi Thanh, Head of Technical Division of Ha Tinh Customs Department said the Covid-19 pandemic in the first months of the years had made great impacts on business and production activities, import and export of enterprises and the department’s revenue.
For example, textiles are one of major export items of Ha Tinh. However, due to the Covid-19 pandemic, temporary closure of export market and failing to import raw materials, 80% of the volume of fibre exported to China, South Korea and Taiwan has been delayed and cancelled. Meanwhile, supply and consumption capacity of the domestic market is insignificant.
Another reason, Formosa Ha Tinh Company is a FDI company heavily affected by Covid-19 because its production and consumption depends on world markets. Input materials are scare and soar, the goods delivery time is delayed; demand for steel products on the world market dropped sharply and paralysed. In the first quarter and the first month of the second quarter, the production output of this company only reached 60% of the capacity. The company maintained a rotational working regime, and the inventory products increased sharply.
At Cau Treo International Border Gate, import-export turnover as well as vehicles performing exit and entry in March and April sharply decreased compared to 2019. The main reason was due to the direction from the Government and the Steering Committee for Covid-19 prevention of Vietnam and Laos to apply quarantines to people on exit and entry from countries and territories into Vietnam and Laos.
Especially, on March 29 the Lao Government announced stopping immigration for individuals at international border gates nationwide from March 30 to May 17to prevent the spread of Covid-19 that has directly affected and made a sharp decrease in import-export activities and immigration of businesses and passengers.
Recently, the Lao Government announced it will continue to close the border gate, including main border gate and sub-border gate, and only allow cargo transportation and some immigration cases permitted by the specialised commission until the end of June 1.
Focus on supporting businesses
Facing the effects of the Covid-19 pandemic that reduced revenue, Ha Tinh Customs Department identified support, sharing and removing difficulties for businesses is the leading solution to increase revenue.
Typically, when Covid-19 spread, from March 19 the Lao Government implemented quarantine for people, vehicles and goods entering the country through Cau Treo-Nam Phao International Border Gate. During this period, the deadline for temporary import for re-export of many vehicles was overdue.
Le Dung, Manager of Cau Treo International Customs Branch said that it was an administrative violation due to force majeure, after Ha Tinh Customs Department issued a written request for direction, the General Department of Vietnam Customs issued a dispatch extending the deadlines for temporary import for re-export and exempting from fines for these vehicles. It was expected more than 140 vehicles were exempted from fines to the tune of VND 710 million.
In addition to this, Dinh Van Hoa Deputy Director of Ha Tinh Customs Department, said from April 17 to 25, Ha Tinh Customs Department solved problems for export rice declarations stored at Vung Ang Port.
“In the complicated Covid-19 pandemic, the demand for exporting rice is high. However, due to regulations on quota management, so the volume of rice stored at Vung Ang Port could not be exported. After provinces and cities nationwide proposed, the Government issued a document to remove obstacles for rice exporting enterprises,” Hoa added.
Hoa emphasised that amid the Covid-19 pandemic, import and export activities are forecast to continue to face difficulties, so the department’s revenue collection is still heavy. Thereby, Ha Tinh Customs is actively reviewing revenue source and regularly discussing with enterprises to provide effectively them in the remaining months of the year.
Ha Tinh Customs continues to monitor operations of enterprises (especially, enterprises with huge revenues, accounting for 80% of the revenue of each customs branch) to evaluate impacts of the pandemic on import-export activities and revenue collection, effectively deploy solutions on revenue collection, actively monitors and accurately evaluates revenue and clarify the reason for increase and decrease in revenue of each enterprises; closely monitor revenues at border gates and seaports.
In addition, the department’s focal units will receive and summarise the feedback of enterprises on difficulties and obstacles to promptly propose solutions supporting and removing; strengthen information exchanging via phone and email, encourage firms to send dossiers via the customs sector’s electronic system to reduce moving and contact time; promote the implementation of e- tax payment and customs clearance 24/7, create favourable conditions for businesses and reduce tax payment time.
By Dao Le/Ngoc Loan