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| Professional activities at Da Nang International Airport Customs Sub-Department. Photo: N.Linh |
Must clearly understand the policy
According to the leaders of the Da Nang Customs Department, when enterprises submit final settlement reports, they often encounter errors in raw material norms, data differences among documents… causing many enterprises to encounter difficulties in preparing settlement reports.
Therefore, this is an issue that Da Nang Customs Department prioritizes in sharing experiences with enterprises in the area.
According to the Customs Management Supervision Division (Da Nang Customs Department), enterprises must clearly understand the principles of preparing accounting books and settlement reports so that data on documents must match, avoiding discrepancies which affects the tax rate paid as well as the reputation of them. In addition, enterprises need to update the latest circulars, decrees, and legal documents and firmly grasp the general regulations in order not to miss the deadline for submitting final settlement reports, with the latest submission time being 90 days after the end of the fiscal year.
Accordingly, enterprises must properly understand the instructions on information indicators on the final settlement report. The information indicators on the settlement report are not only data of the import-export division but are related to the production activities of the enterprise (import-export information is only information for checking and comparing). Besides, regularly check and review errors in the process of customs procedures such as: raw material and supplies codes, product codes on the declaration with warehouse codes/Accounting codes – units of calculation, converting units of calculation; declaration for correction and cancellation after customs clearance…
At the same time, when preparing a final settlement report, it is necessary to link data from divisions, from actual production and the system of accounting books and documents tracked at the enterprise such as: warehouse management division; production division; accounting division; import and export division.
Enterprises also need to regularly check and compare data among divisions on a monthly or quarterly to promptly make adjustments when detecting errors or discrepancies. In particular, corporate accountants need to separate sources of raw materials and supplies by type of import and export: tax-free, non-taxable, tax-paying business, domestic purchase and supply…; Cases where customs procedures are not carried out but must still be managed and monitored; Accounting and storing documents according to regulations of the Ministry of Finance on accounting and auditing regimes; Notify the activities taking place in the warehouse to the import-export division in cases of release from warehouse for purposes being different from production purpose such as: over-allocation of raw materials, supplies that must be revoked, compensation due to production shortage, export for reprocessing inland, export for consumption for business activities, export for sale of raw materials, export for sale of scrap, other exports (destruction, donation), export shortage due to inventory…
Solutions to prevent risks
Regarding this issue, Mr. Phan Hai Trieu, Deputy Head of Import-Export Clearance Division, InterLOG Company shared some common errors in customs declaration and settlement reports such as: incorrect declaration of quantity; Excess, insufficient import, excess export, insufficient quantity without additional customs declaration; Using raw materials and supplies for other purposes, selling domestically without declaring change of using aim; Failure to notify processing contracts, reprocessing contracts, or production facilities implementing reprocessing; Wrong type code declaration, wrong inventory calculation among processing contracts. Regarding report content, common errors include: settlement of data is not true to the reality of internal corporate governance, settlement of incorrect norms; Wrong raw material data; wrong finished product data; failure to make settlement on time; not amended or supplemented within the prescribed time limit; failure to submit final settlement documents; improper handling of scrap and waste products, using raw materials and supplies for improper purposes.
According to Mr. Phan Hai Trieu, there are many reasons for discrepancies in settlement reports such as: not learning or not understanding legal regulations; Researching but not to fully systematizing relevant legal documents; researching but not understanding correctly leading to fail in implementing; The import-export division understands, but the responsible division does not understand, so it does not implement or implement incorrectly. That can lead to risks of tax arrears and penalties for administrative violations; assess the level of compliance.
Therefore, according to Mr. Phan Hai Trieu, the solution to prevent risks is that enterprises need to review the entire management process and use of raw materials and supplies from importing raw materials, exporting products, and preparing final settlement reports synchronously among divisions in the company; proactively monitor and build realistic norms; Refer to data and legal regulations with Customs authority. In particular, any changes related to the location of production, processing, and storage of products must be notified in writing to the Customs authority; Proactively inventory and cross-reference aggregated data from warehouse inventory and clearly transfer details when changing staff…