Cao Bang Customs Department: Progress in Customs Procedure Reform, Modernisation

Despite difficulties and challenges, the Cao Bang Customs Department has constantly strived to achieve encouraging results. E-customs procedures are deployed for all types of import and export at Ta Lung Border Gate Customs Office (February 2013) and Tra Linh Border Gate Customs Office (July 2013), and more than 140 enterprises registered to use e-customs. As of the end of September, Cao Bang Customs Department collected VND121 billion of taxes for the State Budget, an increase of 11 percent over the same period in 2012. Imports and exports expanded 40 percent over the same period of last year. Transshipped goods (temporarily imported for re-export) at border gates in Cao Bang also surged. Smuggling and trade fraud prevention was enhanced to build a favourable, transparent and fair business environment.

 

Cao Bang is a mountainous, border-sharing province in northeast Vietnam. It shares a 332-km border with Guangxi province of China, with two main border gates (Ta Lung and Tra Linh) and four secondary gates (Soc Giang, Po Peo, Ly Van and Bi Ha) in addition to many border markets and border crossing routes. The province has planned the construction of three border gate economic zones, namely Ta Lung, Tra Linh and Soc Giang. Ta Lung Town is directed to be a modern, civilised border urban zone. It will have major functional areas like administrative building areas, international trade areas, domestic trade areas, manufacturing and processing areas, residential quarters and public service facilities. These are favourable conditions for Cao Bang Province and Guangxi Province of China to boost economic development cooperation, particularly in trade, tourism and services. In order to improve the capacity of State customs management and facilitate businesses, the Cao Bang Customs Department has actively reformed and modernised customs procedures.

 

The official e-customs implementation has brought more tangible benefits to enterprises and met the administrative reform requirements under the direction of the Prime Minister. The province has applied e-customs at Ta Lung Border Gate Customs Office and Tra Linh Border Gate Customs Office. This is a prerequisite for the successful deployment of the Vietnam Automated Cargo and Port Consolidated System (VNACCS/VCIS) - a focal point of customs procedure reform.

 

From the beginning of the year to September 15, the value of exports and imports through Cao Bang customs points totalled US$315.2 million, an increase of about 90 percent over the same period in 2012. The tax collection for the State Budget was VND140.46 billion in the reporting period, or 70.23 percent of the initially targeted value of VND200 billion. Besides, the customs authorities of Cao Bang province continue managing and supervising goods temporarily imported for re-export. As of mid September, the Department had monitored 8,047 declaration forms with a total value of US$791 million.

 

Highly valued exports and imports include fertiliser (nearly US$15 million), machinery, equipment and spare parts (US$14.5 million), coke (more than US$3.5 million), and lead ingot (more than US$2 million). Customs leaders said import and export activities in Cao Bang primarily took place in Ta Lung and Tra Linh border gates, while the flow of exports and imports via Soc Giang, Bi Ha and Po Peo border gates is less. Although export and import turnover in Cao Bang kept increasing, tax-bearing goods are not many, leading to low tax collection.

 

To complete State budget collection tasks from now till the end of this year, the department will continue to implement solutions to facilitate enterprises, intensify information and support for taxpayers, prevent tax losses and step up smuggling prevention efforts. The department will also focus on key solutions, particularly, coordinating with six commercial banks (BIDV, Vietinbank, Agribank, Vietcombank, Techcombank and Eximbank) to extract deposits of enterprises for tax debt repayment; continuing to effectively apply tax loss prevention measures, particularly commercial fraud prevention (through value, type, quantity of exports/imports); and detecting and prosecuting smuggling cases and illegal transportation of prohibited goods. In the next five years, the department will continue to build the Cao Bang Customs Development Strategy in relation with the development plans of the Ministry of Finance, the General Department of Vietnam Customs and the Cao Bang Provincial People’s Committee. The customs sector will focus on three central tasks: Reforming and modernising customs, accelerating budget collection, and building a strong customs force in Cao Bang province.