Non-cash collection of seaport infrastructure fee: Convenience, quickness, high efficiency

Seaport infrastructure fee is one of the important resources which has been contributing to re-invest in transport infrastructure system, facilitating the transportation of import and export goods.

(Photo: DUY THANH)

According to Notice No. 290 dated 22 July 2021 issued by Hai Phong City People's Committee, the non-cash collection of fee for the use of public infrastructure, services and utilities in the seaport border area (seaport infrastructure fee) has been implemented since 1 August2021. This is an new important step that proves the city’s effort and relevant agencies in strong application of technology to benefit for the payers

To gradually improve and modernize the fee collection system

Implementing the Law on Fees and Charges, Hai Phong city has implemented the collection of seaport infrastructure fees since 2017. At that time, the city assigned Hai An district to directly undertake the collection with support and coordination of the Department of Finance and Department of Customs. To ensure the full and timely collection, Hai An district set up 16 collection locations in the city with more than 100 people to work for. Although the annual turnover from fee collection was quite high, the collection system soon revealed its limitations and inadequacies due to the large number of human resources and traditional method. Therefore, the City People's Committee assigned the Department of Finance and Department of Customs to develop and implement the project of automatic collection to gradually reduce collection locations and collectors.

Accordingly, the City People's Committee issued Decision 2979 dated 29 November 2019 to transfer the task of fee collection from Hai An District People's Committee to the Department of Finance with validity from 01 December 2019. Only 15 days later, due to the strong application of information technology and active implementation of the automatic collection method, the Department of Finance collected fees by e-receipts instead of paper receipts. The number of collection locations was gradually reduced from 16 to only 3. The number of collectors was also reduced from more than 100 people to over 10, most of them are part-time officials and staff of the Department of Finance. Since 2020 until now, the Department of Finance has closely coordinated with Hai Phong Department of Customs to complete and modernize the automatic collection system, prepare carefully, and simplify processes towards automatic collection with non-cash and complete elimination of collection locations.

Particularly, Hai Phong Department of Customs and Department of Finance completed the system of automatic collection and control which has reached the level 4 of online public service level from originally level 2. Enterprises can completely declare and pay fees or import and export taxes by e-method, thus helping to reduce the time, number of staff and other expenses for the enterprises. The commercial bank has been attracted to participate in this method. The 24/7 collection system of the Department of Customs, port and warehouse and the automatic inspection system are integrated into the Vietnam Automated System for Seaport Customs Management (VASSCM) to maintain e-receipts instead of paper receipts, etc… By June 2021, it was possible to do the payment of seaport infrastructure fees via e-payment portal of the Department of Customs (24/7 payment), that is an important basis for the automated fee collection with non-cash of the city.

The automated fee collection system is set up at the Department of Customs and connected to the e-payment portal of the Department of Customs. Since 1/8, Hai Phong has stopped collecting seaport infrastructure fees by cash.

Detailed instructions to facilitate businesses

In order to ensure the conformity and convenience in the collection process, the City People's Committee issued Notice No. 252 dated 22/7/2021 to transfer the collection task ​​from the Department of Finance to the Department of Transport. For the smooth operation of the collection after the handover to ensure the correct, sufficient and well-prepared collection to facilitate the payers as well as the reform of administrative procedures and promotion of non-cash payment for public services especially in the context of COVID-19 pandemic, the Department of Finance continues to: host and coordinate with relevant agencies to make proposal and report to the City People's Committee for the issuance of The procedure of the fee collection; arrange funds to pay the banks for non-cash service of seaport infrastructure fee collection; design standby fee collection system; propose to the City People's Committee for its approval of issuing the notice on stopping the collection of seaport infrastructure fees by cash started from 1/8/2021.

According to the direction of Hai Phong City People's Committee, the Department of Finance has issued the Notice No. 328 dated 27 July 2021 on the cessation of locations for fee collection by cash. At the same time, it actively coordinated with the Department of Customs, joint-stock commercial banks and relevant agencies to propagate, instruct and expand payment connection through 24/7 port to make the best serve for the seaport infrastructure fee collection. Specifically, the Department of Finance cooperated with the Department of Customs to widely propagate the policy on cessation of the seaport infrastructure fee collection by cash to the businesses whose import and export goods go through the Hai Phong seaport border area; coordinate with joint stock commercial banks to collect fees, instruct and help the businesses to open accounts for fee payment. Currently, there are 4 banks to support the seaport infrastructure fees collection via e-Payment portal (24/7) including: Commercial Bank for Foreign Trade of Vietnam (Vietcombank), Vietnam Joint Stock Commercial Bank for Industry and Trade (Vietinbank), Military Commercial Joint Stock Bank (MB), Bank for Investment and Development of Vietnam (BIDV). Besides Internet Banking Channel for business customers, Vietcombank and Vietinbank have also opened Internet Banking Channel for individual customers to pay the fees.. The Department of Finance is responsible for propagate, instruct and clear up queries from businesses regarding the cessation of fee collection by cash under the policy of the City People's Committee.

This new change (the completion of the automated collection system, elimination of collection locations, propagation of online fee collection via bank to business community and absolute elimination of fee collection by cash since 8/2021) is a big step that have demonstrated the efforts and active proposal of the Department of Finance and Department of Customs as well as relevant agencies in meeting the practical demands. Due to this new change, tens of billions of VND of expenses (spending for staff, location renting, office, computers, internet connection, etc…) is saved each month and businesses have been facilitated for import and export.

In the first 6 months of 2021, the turnover from seaport infrastructure fee reached 602 billion VND, which was equivalent to 44.6% of the estimated target by the City People’s Council and increased 19.7% compared to the same period in 2020. With annual revenue from 1300- 1500 billion dong, seaport infrastructure fee is one of the important resources which has been contributing effectively to re-invest in the transport infrastructure system and facilitating the trade and transportation of import and export goods. The automated fee collection connecting with relevant systems and agencies such as the Department of Customs, warehouse businesses, and commercial banks, has created an automated and uninterrupted system to help controlling the turnover and organizing the collection process closely and timely to ensure the publicity, transparency and high efficiency, thus contributing to increase the city's budget revenue.

HONG THANH

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