Hanoi Customs: Proactively Facilitating Importers and Exporters

In the first quarter of 2024, Hanoi Customs reported a budget revenue of VND5,092 billion, which equates to 15.2% of the annual target, marking a decrease of 9.68% compared to the previous year. The department processed 408 declarations, approving 375 and requiring 33 companies to make additional declarations due to discrepancies in the taxable value. This resulted in the collection of VND1,471 billion in back taxes.

For 2024, Hanoi Customs has set a goal to collect VND33,570 billion for the State Budget, surpassing the 2023 target of VND33,160 billion. This presents a significant challenge as manufacturers, importers and exporters are still in the process of recovery.

Customs authorities at Noi Bai International Airport conduct thorough inspections of import and export commodities

Proactive business support initiatives

The performance of imports and exports experienced a downturn in 2023, as many companies faced a lack of orders, leading to a significant drop in input imports. Major product categories saw a substantial decrease in taxable import value and budget revenue. Specifically, the total value of the top 10 commodity categories fell to US$5.1 billion, a decline of 29.9% compared to the same period in 2022 (US$7.3 billion). The most notable decreases were observed in tobacco inputs, chemicals, computers, electronics and auto parts.

Given the projected continuation of these challenges into 2024, Hanoi Customs is committed to implementing strong solutions to assist businesses in revitalizing their import and export activities. Notably, successful initiatives from 2023 are being replicated in 2024. For instance, the Hanoi North Customs Branch has established a tripartite working mechanism by signing a memorandum of cooperation with the Hanoi Logistics Association. This has led to the formation of a joint working group comprising customs, logistics companies, customs clearance agents, importers and exporters, aimed at providing information and resolving issues. The prompt acceptance and processing of instructions and support from customs authorities have been instrumental in this endeavor.

This model is decided by the Hanoi Customs Department to be applied in other branches with many logistics service companies like Bac Thang Long and Hoa Lac. At the same time, the unit will also study to expand cooperation scope with associations.

Pham Khanh Ngoc from the Import-Export Department, Toto Vietnam Company, said: Toto Vietnam company has received timely support and advice from customs authorities to complete procedures for preferential import and export duty.

In addition, to further spread the pilot program for businesses to voluntarily comply with customs laws, the Hanoi Customs Department recommended that the General Department of Vietnam Customs specify benefits of member businesses of the program to encourage companies to take part in; simplify and combine memorandum contents and action plans to reduce time and procedures and facilitate business participation; and change some criteria for reviewing businesses participating in the program in the direction of expanding criteria, facilitating and motivating businesses to take part in the program.

The Hanoi Customs Department also proposed that the General Department exclude companies with low-risk exposure indicators (ranked 1, 2 and 3) and no violation in three latest scans in a year from the list of companies subject to commodity scanning.

Customs authorities are committed to implementing strong solutions to assist businesses

Risk assessment in customs clearance

Hanoi Customs Department emphasized the importance of risk assessment and control, alongside facilitation, to ensure accurate and comprehensive tax collection. The department’s key areas of focus include the collection, analysis, and processing of information for businesses, significant companies, and risk control by product, type and key route. It aimed to control risks by screening shipments for suspicious signs and promptly applying screening to airborne packets or containers. The department continues to strengthen the collection, analysis and evaluation of risk indicators and categorize important companies, such as stainless-steel importers, in accordance with the Risk Control Program 1436/QD-TCHQ dated June 27, 2023, issued by the General Department of Vietnam Customs.

Hanoi Customs consults on commodity value during the completion of customs procedures, checking the post-clearance value of commodities at risk of incorrect value declaration to determine the accurate customs value and taxable value. Concurrently, the department regularly assesses budget revenue collection, reviews and understands the key revenue sources of its affiliates, and analyzes factors that may impact revenue to propose and execute measures and solutions to increase revenue and prevent budgetary loss.

In particular, one of its focused solutions in 2024 is enhancing the effect and quality of self-inspection and internal control at its branches and conducting risk reviews, assessments and analyses in customs clearance of imported and exported goods with potential risks of fraud in commodity codes, value, quantity, tax exemptions and refunds.

Reportedly, customs authorities collected VND94.1 billion from post-customs clearance inspection for the State budget in the first quarter of 2024, of which the Post-customs Clearance Inspection Department accounted for VND94 billion.

Hien Phuc, Vietnam Business Forum