Against fraud of origin: Control the production capacity of businesses

VCN- Measures to enhance the collection of information and examination of production capacity of enterprises play an important role for customs offices to assess and detect violations on fraud of goods origin.  
tin nhap 20191113163118 Five measures of Customs in combating illegal export of minerals
tin nhap 20191113163118 Ministry of Industry and Trade: aluminum consignment valued at US$4.3 billion will be investigated
tin nhap 20191113163118 Eight measures provided by Customs to actively combat origin fraud
tin nhap 20191113163118
Director of the Customs Control and Supervision Department Au Anh Tuan

The Director of the Department of Customs Management Supervision (General Department of Customs) Au Anh Tuan said that synchronous implementation requires close cooperation between relevant agencies. At the same time, policies and laws need to be completed to have sufficient grounds for implementation.

With the responsibility of state management in the field of customs, how has the customs authority taken measures to promptly detect and prevent origin fraud?

Carrying out the assigned tasks, especially the instructions of the Prime Minister and the Ministry of Finance, the Customs authorities have actively, synchronously and drastically taken measures to strengthen control and prevention oforigin fraud and illegal transportation of goods.

In particular, the General Department of Customs has directed local customs departments to strengthen inspection and supervision when carrying out import and export procedures, especially to enhance the collection of information such as production capacity, machine lines, equipment, capacity of the factory, the number of employees and the responsibility of the agency in case of identifying high-risk subjects.

Customs officers must check production establishments to determine whether enterprises actually process and export production processing.

In Decree 31/2018 / ND-CP, there is a simple process of processing without using specialized skills and machinery to create products. Specifically, Article 9 of Decree 31/2018 / ND-CP stipulates that simple assembly into a finished product is not considered when determining the origin of goods.

However, the current regulations are still general and determine how simple they are, which are not yet specific in legal documents, leading to difficulties of the Customs authorities in the inspection of specialized production lines and capacity. Production to determine whether the enterprise carries out such a production process is simple or complex. On that basis, the Customs authorities can assess that the goods produced meet the rules of origin in accordance with the Government's Decree No. 31/2018 / ND-CP as well as other guiding documents for implementation of free trade agreements.

Actually determining the capacity of enterprises to combat fraud of origin still faces some difficulties. In your opinion, how is the coordination between Customs and other industries to improve the legal system to have enough facilities to handle this issue?

To combat origin fraud, in recent years, the General Department of Customs has directed the Customs Departments of provinces and cities to intensify inspection of production facilities. Through inspection, the Customs authorities have detected a number of cases inwhich foreign-invested enterprises abuse the establishment of factories in Vietnam to perform some stages, or do not carry out processing activities, but then export goods recorded as "made in Vietnam” for exporting tothirdcountries.

Through inspection and monitoring of some factories show that they only perform the change of packaging and labeling, not processing, or check that enterprises only perform some simple processing steps. However, in order to do this, it is necessary to have close cooperation between the Customs authorities and the concerned agencies. For example, coordinate with the provincial and municipal Customs Department with the insurer to determine whether enterprises pay social insurance or not, and then coordinate with the suppliers of goods such as electricity, water and input materials to determine whether businesses use themto produce products or not. Customs authorities will proactively inspect production facilities in order to promptly identify abnormalities in production activities, thereby assessing the compliance with the law on origin.

However, as mentioned above, Decree 31/2018 / ND-CP, Circular 05/2018 / TT-BCT has not yet provided specific guidance on simple processing and only general provisions: installation, assembling and processing parts to form a complete product is called simple machining. However, the production process varies from industry to industry, so the Customs Department recommends ministries, especially the Ministry of Industry and Trade, to amend legal documents on the origin of goods, especially exported goods must specify what is simple machining. Thereby, the new management agency has a measure and basis to consider and recommend businesses to perform deep processing steps to create added value as well as meeting the rules of origin in order to be recognized as‘made in Vietnam’. At the same time, it is the basis for handling acts of abusing Vietnam to carry out simple processing for export, avoiding affecting genuine businesses doing real outsourcing activities to create basic values ​​of goods.

By N.Linh/Bui Diep

Related News

Halal Market: The Door is Wide Open, How to Exploit It

Halal Market: The Door is Wide Open, How to Exploit It

VCN - The size of the global Halal economy is estimated to reach USD 7,700 billion in 2025, expected to increase to 10,000 billion USD in 2028. Besides "certification", what do businesses need to effectively exploit the potential of this market?
Preliminary assessment of Vietnam international merchandise trade performance in the first 11 months of 2024

Preliminary assessment of Vietnam international merchandise trade performance in the first 11 months of 2024

Highlights 1. According to trade statistics of Vietnam Customs, in November of 2024, a 4.1% downwards in total external merchandise turnover of Vietnam was recorded as compared to the result of October 2024. Exports went down 5.3 %, to USD 33.73 billion and imports decreased 2.8%, to USD 32.67 billion in terms of month-on-month basis. As a result, there was a USD 1.07 billion surplus in Vietnam’s trade balance in this month.
Challenges in preventing counterfeit goods and intellectual property violations in e-commerce

Challenges in preventing counterfeit goods and intellectual property violations in e-commerce

VCN - The open sale of counterfeit goods, items with unclear origins, and intellectual property (IP) infringing products on e-commerce websites has become a growing trend.
Goods trading, being seen from Lang Son border gate

Goods trading, being seen from Lang Son border gate

VCN - At this time, import and export activities at the three international border gates of Huu Nghi, the bilateral border gate of Chi Ma and the secondary border gate of Tan Thanh are all very active. This is also the answer to the question of why Lang Son's import and export turnover in 2024 increased sharply.

Latest News

GDVC answers questions for VBF enterprises

GDVC answers questions for VBF enterprises

VCN - The General Department of Vietnam Customs (GDVC) and the Vietnam Business Forum (VBF) jointly held a regular meeting to answer questions about customs procedures, tax policies, etc. for VBF member enterprises on January 10, 2025.
6 outstanding events of Vietnam Customs in 2024

6 outstanding events of Vietnam Customs in 2024

VCN - The General Department of Customs has just announced outstanding events in 2024, such as: successfully organizing the 33rd Meeting of the ASEAN Customs Directors-General; successfully completing the budget collection task; trade facilitation with a record trade turnover of over US$786 billion.
Da Nang Customs Department supports enterprises in developing Customs-Business partnership

Da Nang Customs Department supports enterprises in developing Customs-Business partnership

VCN – At the Conference on developing Customs-Business Partnership 2024 held by Da Nang Customs Department, Permanent Vice Chairman of the Da Nang People's Committee Ho Ky Minh highly appreciated the development of Customs-Business Partnership over the past time, bringing many practical benefits not only to businesses but also creating favorable conditions for Da Nang's goods to quickly access the international market, promoting the city's economic development.
Lang Son Customs finds it difficult to collect and handle tax arrears

Lang Son Customs finds it difficult to collect and handle tax arrears

VCN - As of December 16, 2024, the total overdue debt for processed customs declarations at Lang Son Customs Department was more than VND180.7 billion, of which the unit conducted a charge-off debt of VND 93.9 billion. Although Lang Son Customs Department applied many measures, collection and handling of tax arrears is still a problem.

More News

Customs reduces VAT under Resolution No. 174/2024/QH15

Customs reduces VAT under Resolution No. 174/2024/QH15

VCN- The General Department of Vietnam Customs (GDVC) has sent an urgent dispatch to provincial and municipal customs departments to implement VAT reduction under Resolution No. 174/2024/QH15.
HCMC Customs: Outstanding performance across all operations

HCMC Customs: Outstanding performance across all operations

VCN - On January 2, 2025, the Ho Chi Minh City (HCMC) Customs Department held its annual review conference to assess 2024 achievements and outline tasks for 2025. The event was attended by Vice Chairman of HCMC People's Committee Nguyen Van Dung and Deputy Director General of Vietnam Customs Dinh Ngoc Thang, who delivered keynote speeches.
Tackling revenue challenges: Dong Nai Customs Department’s strategic plan for 2025

Tackling revenue challenges: Dong Nai Customs Department’s strategic plan for 2025

VCN - Facing mounting challenges in revenue collection, the Dong Nai Customs Department is stepping up efforts to secure its 2025 state budget targets through proactive measures and digital transformation.
Director General Nguyen Van Tho: streamlining apparatus to meet the requirements of customs modernization

Director General Nguyen Van Tho: streamlining apparatus to meet the requirements of customs modernization

VCN - Director General of the General Department of Customs Nguyen Van Tho said that the customs sector will focus on arranging and streamlining the apparatus, ensuring that the new apparatus can be put into operation immediately, without interruptions.
Cao Bang Customs Department collects over VND 940 Billion, achieving a 22% increase

Cao Bang Customs Department collects over VND 940 Billion, achieving a 22% increase

VCN - In 2024, the Cao Bang Customs Department achieved remarkable budget revenue growth, significantly surpassing its targets.
Ba Ria - Vung Tau Customs: A strategic partner in business success

Ba Ria - Vung Tau Customs: A strategic partner in business success

VCN - Businesses have highly appreciated the administrative reforms and support provided by the Ba Ria - Vung Tau (BR-VT) Customs Department, recognizing these efforts as a critical factor in fostering growth amid ongoing challenges.
Challenges facing customs revenue collection in 2025

Challenges facing customs revenue collection in 2025

VCN - Revenue from import-export activities is expected to face significant challenges in 2025, necessitating coordinated and decisive measures to ensure accurate and sufficient tax collection, preventing revenue losses, and achieving assigned targets.
Quang Ninh Customs: making efforts to help businesses improve compliance

Quang Ninh Customs: making efforts to help businesses improve compliance

VCN - Quang Ninh Customs Department has synchronously deploys support activities, guidance, answers questions, provided information, and warned of risks to help businesses proactively prevent and avoid violations, and voluntarily improve their compliance with customs laws.
Hai Phong Customs collects over VND87 billion from post-clearance audit

Hai Phong Customs collects over VND87 billion from post-clearance audit

VCN – The Post-clearance audit branch (under Hai Phong Customs Department) alone has conducted 236 audits and collected VND86.4 billion.
Read More

Your care

Latest Most read
GDVC answers questions for VBF enterprises

GDVC answers questions for VBF enterprises

VCN - Mr. David Whitehead thanked the leaders of the GDVC and departments for working with the business community. This is an opportunity to improve the effectiveness of cooperation between VBF and the GDVC, bringing benefits to both sides.
6 outstanding events of Vietnam Customs in 2024

6 outstanding events of Vietnam Customs in 2024

VCN - The General Department of Customs has just announced outstanding events in 2024, such as: successfully organizing the 33rd Meeting of the ASEAN Customs Directors-General; successfully completing the budget collection task; trade facilitation with a
Da Nang Customs Department supports enterprises in developing Customs-Business partnership

Da Nang Customs Department supports enterprises in developing Customs-Business partnership

VCN - According to Da Nang Customs Department, in 10 years of developing Customs-Business Partnership, the Customs has not only played the role as the manager but also played the role of the partner, supporting and facilitating businesses, import-export p
Lang Son Customs finds it difficult to collect and handle tax arrears

Lang Son Customs finds it difficult to collect and handle tax arrears

VCN - As of December 16, 2024, the total overdue debt for processed customs declarations at Lang Son Customs Department was more than VND180.7 billion, of which the unit conducted a charge-off debt of VND 93.9 billion. Although Lang Son Customs Department
Customs reduces VAT under Resolution No. 174/2024/QH15

Customs reduces VAT under Resolution No. 174/2024/QH15

VCN- The General Department of Vietnam Customs (GDVC) has sent an urgent dispatch to provincial and municipal customs departments to implement VAT reduction under Resolution No. 174/2024/QH15.
Mobile Version