Quang Ninh Customs Collecting revenue from key items declined due to Covid 19 pandemic


quang ninh customs collecting revenue from key items declined due to covid 19 pandemic
Professional activities at Cam Pha Customs Branch (Quang Ninh Customs Department). Photo: Quang Hùng

The impact of Covid-19 pandemic

As of May 5, Quang Ninh Customs Department collected more than VND 3,327 billion, down by 21% over the same period in 2020 (equivalent to VND 905 billion), reaching 27.7% compared to the assigned target (VND 12,000 billion), achieving 26.4% compared to striving target (VND 12,600 billion). In particular, revenue collected through seaports accounted for 87%, mainly through two Customs branches of Cam Pha port and Hon Gai port.

Hon Gai Customs Branch in recent years always accounted for half of total revenue collection of the whole Quang Ninh Customs Department. Therefore, the change in revenue of this customs branch affect the revenue collection of Quang Ninh Customs Department.

In the first quarter, Hon Gai Customs Branch registered and implemented procedures for 6,380 declarations with a total import – export turnover of $1,430 million over the same period in 2020, up by 66.5% in number of declarations and rising by 60.75% in turnover. The number of enterprises that came to implement procedure also increased by 25.25%, from 198 up to 248 enterprises, of which 50 enterprises were newly registered and implemented procedures.

The revenue collected from this branch achieved VND 1,423 billion, equalling 22.8% compared to the target in 20212 (VND 6,245 billion). Compared to the scenario of revenue collection in the first quarter of 2021, the unit suffered revenue losses of nearly VND 180 billion, only reaching 89% compared to the scenario.

According to the Hon Gai Customs Department leader, the impact of the Covid-19 pandemic has resulted in a decrease in consumption of taxable import items through the management area. In particular, petroleum fell by 11%, raw material for producing animal feed declined by 23% and raw material for producing vegetable oil reduced by 31% compared to the scenario of the unit.

At the same time, at Cam Pha Customs Branch, imported coal and exported clinker contributed VND 500 billion to State revenue.

At Cam Pha Customs Branch, the coal price in the global market is recovered and commercial enterprises have imported more than 1.5 million tonnes of coal of all kinds, turnover topped $140 million, contributing more than VND 350 billion to State revenue (increasing by 85.2% in volume, rising by 134.9% in turnover and 64.9% in tax amount from the same period in 2020). Along with that, with 3.2 million tonnes of clinker for export, firms contributed VND 120.4 billion to the State budget (up 44.5% in volume, 39.2% in turnover, 35 6% in tax amount from the same period in 2020).

However, according to a representative of Cam Pha Port Customs Branch, due to the impact of the Covid-19 pandemic in 2020 and early 2021, many business activities were slow to recover, including projects of producing iron and steel, cement and clinker. Besides that, tourism and service activities decreased sharply due to the impact of blockade, isolation and social distancing measures, so electricity consumption fell, so the demand of imports, coal consumption did not increase. The development potential of the renewable energy industry (wind power, solar power) will continue to expand in 2021 and enjoy the preferential mechanisms of the policy on concentrating green energy sources in the power planning while many projects and thermal power plants are expected to stop working, so the demand for coal imports will decrease.

Improve service quality

Facing the Covid-19 pandemic, Quang Ninh Customs Department implemented many urgent measures to prevent and control the pandemic, and solutions to support firms and remove difficulties for businesses in import and export activities, focusing on directing the implementation of all areas of work, so basically all proposed political tasks have been completed.

This May, Quang Ninh Customs also identified the key task as the prevention and control of Covid 19; reviews arranges and proposes equipment and supplies for medical equipment in the complex situation of the pandemic; actively coordinates with agencies in pandemic prevention and control, preventing the spread of disease. Along with that, the unit also focuses all leadership and management resources, taking advantage of the work of localities, departments and agencies in attracting businesses, contributing to increasing State revenue; re-evaluate the deficit, propose plans and solutions to increase revenue; strengthen follow-up with potential businesses to bring goods to carry out procedures.

Besides that, strengthening the supervision of activities at land border gates, checking task performance and responsibilities, observing discipline, and a spirit and attitude of serving businesses. On May 15, Quang Ninh Customs operated the ” service quality assessment system of Customs officials in the process of handling procedures”.

According to the Quang Ninh Customs Department leader, via this system, the unit informed the business community about the regimes and policies and listens to businesses to monitor and evaluate service quality. The system’s deployment aimed to improve the quality of Customs-business partnership activities, promote reform of administrative procedures, prevent harassment, and improve service quality while implementing duties.

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