Without seaports or international airports, Dong Nai Customs Department's revenue depends mostly on import-export activities of enterprises in industrial parks and processing zones, which are currently heavily affected by the Covid-19 pandemic.
 |
| Customs officers of Dong Nai Customs department inspect import and export goods. |
Without seaports or international airports, Dong Nai Customs Department’s revenue depends mostly on import-export activities of enterprises in industrial parks and processing zones, which are currently heavily affected by the Covid-19 pandemic. Therefore, the support for businesses is determined as the key task of the department to help businesses overcome difficulties.
According to statistics from Dong Nai Customs Department, in the first six months of 2020, the department has completed procedures for more than 600,000 declaration forms, a 4% year-on-year decrease.
Import and export turnover has a sharp decline of 10% at US$14 billion. Also, the department said that the cause of this decline is the Covid-19 pandemic which directly affected import and export activities, as well as goods exchange of enterprises to the countries hit by the pandemic.
A series of enterprises lack raw materials for production, such as T.VN.I Company which lacks 50% of raw materials from China and Korea. Many other businesses in the textiles, leather and footwear industries also suffer the same situation.
As of July 28, the department’s revenue reached VND8,326 billion, decreasing by 23% compared to 2019 and fulfilling 43% of the yearly estimates.
Meanwhile, transport companies have delayed and stopped transportation, which greatly affected the goods circulation and increased costs related to logistics activities.
The number of flights from abroad to Vietnam fell by 60-80%, so businesses have to wait for transport by sea, and the time for transporting raw materials for production is prolonged. Dong Nai Custom has recorded that many enterprises must cancel their declarations due to changes in shipping methods, leading to failure in goods delivery to customs on time, which forces enterprises to increase production shifts, and raising costs.
In addition, many businesses have suffered from reduced and cancelledorders, suspending the import of goods by some countries, stopping transactions and trade by foreign partners, disconnecting with their customers. The cancellations of orders even increased in May and June. Many businesses registered declarations for more than 15 days and were forced to cancel and then register new declarations and deposited goods in the bonded warehouses to find new customers or cancel goods export. Some companies have announced they would suspend operations or operate moderately, including B.H Company, H.D Company, G.V Company, J. VN Company and S.V Company.
Dong Nai also said that import and export turnover has decreased more sharply than the number of declarations because businesses opened declaration forms to export sample goods with small quantity and low value to find new export markets replacing markets hit by the virus.
Diverse support forms
Facing a series of difficulties of enterprises affecting State revenue, Dong Nai Customs Department has focused on implementing appropriate solutions to support and share difficulties of enterprises affected by Covid-19. Specifically, the department has strengthened contact and grasping the situation, assessing problems and difficulties of enterprises due to the virus, thereby proactively developing support plans, helping businesses minimize losses and increase capacity to overcome this period.
Dong Nai Customs Department has continuously updated announcements to the business community on policies for the export of rice, medical masks, medical supplies; prevention of trade fraud and illicit transshipment; the time limit and forms of C/O submission during the pandemic; the time limit for extension of bonded warehouse lease; the list of goods subject to tax exemption for prevention of the disease.
The department has also worked with competent units in the area such as police and tax departments, market management; and coordinated with border gate customs units, commercial banks, provincial State Treasury, specialized management agency toremove difficulties and facilitate customs clearance for enterprises.
The application of information technology is also promoted in processing procedures for businesses to create an open, transparent and quick import environment. Accordingly, strengthening processing of dossiers via online public services with the increase in the number of dossiersby7% compared to 2019; answering problems of enterprises via application software: online consultancy via the department’s website, the Dna-Info System, mail and electronic software.
In particular, Dong Nai Customs Department has classified the enterprises affected by the disease to promptly provide support solutions.
DongNai Customs Department has actively advised and encouraged enterprises to comply with supply chains, in particular production products of this enterprise are raw materials for production of other enterprises.
The Covid 19-pandemic is forecasted to continue to affect to production and export of enterprises in the coming months. Dong Nai Customs Department will strengthen to reform administrative reform in State management in the customs area and support enterprises to enhance capacity to respond to and overcome difficulties.
(Source: VCN)
