Enhancing Performance of Customs Sector

The General Department of Customs (GDC) estimated that Vietnam’s import and export turnover totalled US$91.321 billion in the first six months of 2011, representing a year on year rise of 27.8 percent. Remarkably, trade deficit in June declined 128 percent from a month earlier, indicating positive effects the Government Resolution 11.

 

In 2011, the customs sector was assigned to rake in VND180.7 trillion for the State Budget. The revenue it raised in the first six months was VND100 trillion, up about 15.6 percent over the same period of 2010, or an addition of VND13.5 trillion.

 

An official from the General Department of Customs said the rise in import-export turnover was attributed to an impressive increase in tax collections. Notably, values of crude oil and coal export leaped. The foreign-invested sector saw an import growth of 23 percent in the first six months, totalling US$27.5 billion.

 

The collection of taxes in arrears also produced positive results with VND306 billion. The depreciation of Vietnamese dong against US dollar helped increase VND3,000 billion of taxes. Finally, the Vietnamese economy has positive signals mainly because of effective implementations of the Government Resolution 02/NQ-CP dated January 9, 2011, the Government Resolution 11/NQ-CP dated February 24, 2011 on major measures to curb inflation, stabilise macro economy and ensure social security. A series of measures on import restrictions have been adopted, including the Ministry of Industry and Trade’s Decision 1380/QD-BCT dated March 25, 2011 on discouraged imports; banks tightened US dollar sales to importers and exporters; the Ministry of Industry and Trade issued the Official Dispatch 197/TB-BCT dated May 6, 2011 banning importation of mobile phones, cosmetics and wines at border gates and international airports but only at three ports of Hai Phong, Ho Chi Minh and Da Nang. These measures helped raise budgetary revenues. On the other hand, the import turnover of nine-seat cars was largely affected by the Ministry of Industry and Trade’s Circular 20/2011/TT-BCT dated May 12, 2011 on additional procedures for the import of passenger cars with nine seats or less.

 

In the first six months, customs authorities discovered, captured and handled a total 1,553 cases of smugglings, fining over VND17 billion. For example, customs authorities in Quang Ngai province seized an illegal transportation of 20.7 kilos of firecrackers and another case with 1,600 kilos of wasted chicken.

 

On June 15, 2011, the Tan Thanh Customs Office under the Customs Department of Lang Son province coordinated with the police force to discover and arrest a person carrying faked banknotes worth VND200 million (VND200,000 notes). Also on the same day, market authorities unearthed and captured a group of people trafficking counterfeit money into Vietnam with a value of VND369.5 million (VND500,000 and VND200,000 bank notes).

 

Customs authorities attributed these positive results to efforts of customs officials as well as helpful application of high-tech like container screening systems at Hai Phong and Ho Chi Minh City ports.

 

Mr Nguyen Duong Thai, Deputy General Director of GDC, said: The customs sector will step up administrative reform and broaden the implementation of e-customs procedures. By the end of 2011, e-customs procedures are expected to be applied in 20 provincial and municipal tax offices and software to this effect will be upgraded to facilitate business to deal with e-customs. The sector will also deal with automobiles imported for outgoing diplomats or diplomatic agencies.