Nghe An Customs: Striving to successfully complete the task of collecting state budget

(Baonghean) - On the occasion of the beginning of the New Year 2017, comrade Chu Quang Luan - Party Secretary, Director of Nghe An Customs Department had an interview with Nghe An Newspaper.

PV:Despite difficulties in collecting import and export taxes, Nghe An Customs has implemented many positive and timely measures, so in 2016 the sector achieved a large revenue for the state budget. Could you please tell us specifically about those actions?

Comrade Chu Quang Luan:In 2016, Nghe An Customs Department was assigned by the Ministry of Finance to collect a budget of 970 billion VND, the Provincial People's Council and People's Committee assigned an additional 300 billion VND, totaling 1,270 billion VND. This was an extremely difficult task because 2016 was the year that the Free Trade Agreements that Vietnam signed with its partners began to take effect, many industries and products had taxes reduced or zero. On the other hand, the 2014 Investment Law was passed by the National Assembly and the implementing documents began to take effect with many import tax incentives for investors. The Lao Government issued a Directive prohibiting the export of round timber and sawn timber in all forms, so the VAT on imported goods only reached 20% of the plan. Some large projects such as Song Lam Cement, Dong Hoi Hoa Sen Steel, Tan Thang Cement, VSIP Nghe An industrial park, urban area, services, DKC petroleum depot... were started but did not meet the schedule. Petroleum is a commodity that accounts for a high proportion of import tax, VAT and contributes to environmental protection tax. When making the estimate, the world petroleum price was 66 USD/barrel, but in 2016, the petroleum price only fluctuated between 45 - 50 USD/barrel. Imported petroleum output decreased significantly compared to 2015 due to problems in monitoring and clearing C/O.

With authorization, comrade Le Xuan Dai - Member of the Provincial Party Committee, Permanent Vice Chairman of the Provincial People's Committee pinned the Third Class Labor Medal on the traditional flag of Nghe An Customs Department. (Photo: Hoang Vinh)

The above factors led to the revenue from import and export activities of Nghe An Customs Department being very difficult, it seemed impossible to complete the plan. By the end of the third quarter of 2016, the revenue from import and export activities had not reached 50% of the plan, but with the strong direction of the provincial leaders and the determination of the unit, the sprint in the last 3 months of the year, the unit exceeded the assigned plan. In 2016, the revenue from import and export activities of Nghe An Customs Department reached 1,118.6 billion VND, not including about 150 billion VND that had arisen but had not yet reached the collection deadline. Nghe An is one of 9 provinces where the Customs sector completed the target assigned by the Ministry of Finance the earliest and ranked 18/35 provincial, inter-provincial and municipal Customs Departments in terms of the budget revenue of the Customs sector.

To achieve the above results, the leaders of Nghe An Customs Department have directed the affiliated branches to mobilize all resources to facilitate the operations of large enterprises to increase revenue.

First of all, resolve the difficulties and obstacles for Song Lam Cement Joint Stock Company under The Vissai Ninh Binh Group to import machinery and equipment on schedule for assembly and testing at Song Lam Cement Factory in Do Luong. In 2016, Song Lam Cement Joint Stock Company paid more than 300 billion VND in VAT.

Second, facilitate Hoa Sen Group to import cold-rolled steel billets for the two Hoa Sen Dong Hoi and Nam Cam steel factories so that the Group can contribute 250 billion VND in import tax.

Third, work with the Vietnam National Petroleum Group and the General Department of Customs, the Ministry of Finance to resolve problems related to monitoring and liquidity of imported C/Os so that the Group can import petroleum from Van Phong Bonded Warehouse (Khanh Hoa) to Cua Lo Port. Taxes collected from imported petroleum in the last 3 months of the year reached more than 200 billion VND, nearly equal to the whole year's estimate. In addition, Thien Minh Duc Joint Stock Company, one of the enterprises permitted by the Ministry of Industry and Trade to import, although the Nghi Thiet DKC Petroleum Warehouse has not been completed, has also imported a batch of petroleum, contributing 30 billion VND in import tax and 20 billion VND in environmental protection tax.

PV:How do you assess and comment on import-export tax collection in 2017?

Comrade Chu Quang Luan:In 2017, with the province’s investment attraction and calling policy, many large investors from Korea, Thailand, Japan… will come to implement investment projects in Nghe An. Accordingly, the import of machinery and equipment to create fixed assets will increase, leading to an increase in import and export tax revenue.

But in my opinion, the revenue from export and import taxes in 2017 still depends basically on large projects of strong corporations such as: Vietnam National Petroleum Group, Hoa Sen Group, Korean Cosmetics Manufacturing Group. At the same time, there will be an additional Tan Thang Cement project of Tan Thang Cement Joint Stock Company contributing about 200 billion VND in VAT on imported machinery and equipment. The DKC Nghi Thiet wharf and petroleum depot of Thien Minh Duc Joint Stock Company are nearly completed and can be imported in the second quarter of 2017. Cement products of Song Lam Joint Stock Company and plywood of May Forestry Joint Stock Company will have export products that will start to contribute to revenue from export taxes. In addition, white stone and superfine white stone powder, which are the resource advantages of Nghe An, will also be exploited and processed for export and contribute a significant revenue to the budget.

In short, revenue from import and export activities of Nghe An has continuously reached over 1,000 billion VND in recent years, so in 2017 with many favorable conditions, it will also reach over 1,000 billion VND and must be higher than the actual revenue of 2016. This is the duty and responsibility of every Customs officer and civil servant for the socio-economic development of the province.

PV:Faced with that reality, what solutions does Nghe An Customs propose to ensure budget revenue?

Comrade Chu Quang Luan:In 2017, the Customs sector will synchronously deploy online public services and the national single window mechanism, actively supporting import and export activities of enterprises.

Nghe An Customs Department will continue to promote administrative procedure reform, facilitate import and export activities of enterprises, reduce customs clearance time for each shipment, reduce costs and time for enterprises to improve the competitiveness of Vietnamese goods in the trend of deep integration. Clearly identify that enterprises from now on are important partners of the Customs agency. Therefore, we must strive to improve every day, improve every day to gain the trust and cooperation of enterprises. Only then can we complete the tasks assigned by superiors.

Nghe An Customs Department coordinates patrol and control at sea. (Photo: Hoang Vinh)

First, summarize the 2016 budget collection tasks to calculate and assign collection tasks to each Branch in a specific and active manner.

Second, arrange staff to work with businesses, especially large businesses with stable revenue sources, to have a coordination plan to proactively ensure monthly and quarterly collection progress.

Third, restructure the civil servant team to arrange appropriately, in the direction of prioritizing units with high revenue sources such as Vinh Customs Branch, Cua Lo Port Customs Branch, Professional Department...

Fourth, strengthen the work of preventing smuggling, trade fraud and post-clearance inspection to support the task of collecting budget revenue. Focus on checking trade fraud through quantity, price, origin... Be transparent, impartial and objective in assessing the law compliance of enterprises, creating an equal environment in the production and business activities of enterprises.

PV:Thanks comrade!

Hoang Vinh

(Perform)