Anti-origin fraud continues to be implemented

VCN- In the near future, Customs will continue to expand the anti-origin fraud related to many potentially infringingitems when exported to other important markets like Japan, South Korea, the EU and India.
7,200 C/Os form EUR.1 issued in first month of running EVFTA 7,200 C/Os form EUR.1 issued in first month of running EVFTA
HCM City Customs trains on rules of origin for European enterprises HCM City Customs trains on rules of origin for European enterprises
3.2 million dossiers implemented via National Single Window 3.2 million dossiers implemented via National Single Window
1655-3026-5-0511-presentation1
Process of Chinese silk under guise of Vietnamese goods. Chart by T.B

Chinese silk are under guise of Vietnamese goods

The leader of the Post-Clearance Audit Department (under the General Department of Vietnam Customs) said that to implement the plan on anti-origin fraud, especially markets that Vietnam has signed bilateral and multilateral trade agreements with, the department has detected violations related to silk products imported from China.

During the post clearance audit at the headquarters of company M., Customs detected that this company applied for eight C/O form Al to export silk to India with signs of violations on origin and illicit transshipment.

Director of Post-Clearance Audit Department Nguyen Tien Loc:

During combat for acts of origin fraud andillicit transshipment, the post clearance audit force has faced difficulties and problems. The Ministry of Industry and Trade admitted that when Vietnam implements international integration, the country lacks a sufficient legal basis to classify and handle origin fraud.

Recently, Customs has proposed to competent authorities to amend and supplement regulations related to the goods origin. In the short term, it is necessary to amend Vietnamese origin conditions and standards according to international practice. If goods fail to meet conditions and standards of Vietnamese origin when carrying out export procedures, how do businesses have to declare?Customs has also proposed to amend and supplement regulations on labelling.


This company’s act aims to evade high tax rates, as if the company directly importedsilk products from China to India, it wouldbe subject to 25% import tax. However, the item exported from Vietnam to Indiais subject to a 5% import tax rate.Through inspection and verification, Customs proved the company imported finished silk from China to HCMCity-based Cat Lai Port. After goods arrived at the port, the company stored the goods ina warehouse outside the port area but did not bring the goods to its factory. The company replaced Chinese packages andlabels withVietnamese packages, labels of the goods to export to India.

Through investigation of the Post-Clearance Audit Department, the company admitted its violation. The department wasfined VND 60 million and collected and remitted nearly VND 550 million to the State budget.

Expand inspected subjects

According to the Director of the Post Clearance Audit Department Nguyen Tien Loc, Vietnam has acceded to many FTAs, the combat and prevention of origin fraud of Vietnam’s goods should be implemented drastically and in long term protect the prestige of Vietnamese goods, creating equal competition between foreign investors in Vietnam.

In addition to fighting businesses that have signs of violation in importing and exporting goods to the US market, the post clearance audit department will expand information and inspect high-risk businesses in importing and exporting with countries and territories that Vietnam has signed FTAs ​​with such as the the EU, India andJapan. Especially, in new FTAs ​​such as the EVFTA orCPTPP when origin issues are particularly paid attention to and strict regulations are provided.

For example, regarding originsforthe textile and garment industry, this is the major export commodity group of Vietnam for many years and is one of commodities expected to benefit from the FTAs that Vietnam has acceded to. According to the Ministry of Industry and Trade, the EVFTA requires two stages for textiles and garments. It means that to enjoy preferential tariffs under the EVFTA, Vietnam's textiles and garments must be made from fabrics of Vietnamese origin. In addition, for textile products in Chapters 61 and 62 of the tariff, the EU also allows Vietnam to use fabrics imported from South Korea to produce final products for export to the EU and still enjoy preferential tax rates of EVFTA.

Director of the Post-Clearance Audit Department said the effective prevention for origin fraud and illicit transshipment not only creates unification in revenue collection, but also protects the prestige and brand of Vietnamese goods, protect and develop domestic production; contribute to increasing attraction of foreign direct investment; ensuringthe implementation of Vietnam's commitments in the FTAs.

At the same time, to raise awareness of law compliance of import and export businesses to prevent violation; the business community has beenwarned about the risks of violations to prevent and ensure compliance with Vietnamese regulations, after detecting errors, the business has invested fully in machinery and equipment for production to meet Vietnamese origin criteria.

Phase 1: Customs inspected and verified 76 cases, discovered 29 cases; workedwith the Ministry of Public Security to investigate onecase of fake C/O. Seized 3,590 bicycles, more than 4,000 bicycle partsand 12,000 sets of accessories to assemble kitchen cabinets; collected and contributed VND 47 billion to the State budget.

Phase 2: The Post Clearance Audit Department issued a decision to inspect 20 businesses and detected 15 violating enterprises; collected and contributed VND 30 billion to the State budget. It proposed the VCCI revoke 803 C/O.

By Thai Binh/Ngoc Loan

Related News

Quang Tri Customs makes great effort to foster imports and exports across area

Quang Tri Customs makes great effort to foster imports and exports across area

VCN – Quang Tri Customs Department determines that accompanying businesses is a requirement and responsibility to support businesses in overcoming difficulties, contributing to the socio-economic development in the area.
Removing difficulties in tax exemption and refund policies for export processing enterprises

Removing difficulties in tax exemption and refund policies for export processing enterprises

VCN - The Customs agency has received many proposals from businesses about answering and guiding policies on tax exemption, import tax and VAT refund for export processing enterprises. The General Department of Customs has responded and provided instructions for each specific case.

Latest News

Identify smuggling tricks across Quang Tri area

Identify smuggling tricks across Quang Tri area

VCN – Although the smuggling and illegal transportation of goods across Quang Tri Border in the customs control area decrease in the number of cases and the value of goods, this situation still takes place complicatedly and shows potential risks and challenges.
The Ministry of Finance urges the implementation of anti-smuggling tasks

The Ministry of Finance urges the implementation of anti-smuggling tasks

VCN - Steering Committee 389 of the Ministry of Finance has just requested the General Department of Vietnam Customs, General Department of Taxation, and units under the Ministry of Finance (Office, Legal Department, Inspection) to seriously and effectively implement the conclusions of Deputy Prime Minister Tran Luu Quang, Head of Steering Committee 138/CP and National Steering Committee 389 (in Notice No. 38/TB-VPCP dated February 2, 2024 of the Government Office).
Arrested an illegal immigrant transporting drugs from Cambodia to Vietnam

Arrested an illegal immigrant transporting drugs from Cambodia to Vietnam

VCN- An illegal immigrant transporting 174 gram drugs from Cambodia to Vietnam have been arrested by Border Guard and Customs authorities at Moc Bai International Border Gate.
Noi Bai Customs Branch gathers information to prevent gold smuggling

Noi Bai Customs Branch gathers information to prevent gold smuggling

VCN – Noi Bai International Airport Customs Branch has implemented solutions to prevent gold smuggling by air to respond to fluctuation of gold and foreign currency prices.

More News

Ho Chi Minh City Customs: Effectively monitor goods in transit with e-seals

Ho Chi Minh City Customs: Effectively monitor goods in transit with e-seals

VCN - Thanks to the application of modern management and supervision measures with electronic seals, inspection by scanners for goods in transit, goods temporarily imported for re-export, Ho Chi Minh City Customs Department has effectively controlled the situation of violations of Customs laws of this type.
Cotrol smuggling of gold and foreign currency across border gates

Cotrol smuggling of gold and foreign currency across border gates

VCN- From the beggining of the year, gold and foreign currency prices have fluctuated strongly due to the smuggling and tax evasion cases across the border with sophisicated tricks, causing serious impacts on the gold and foreign currency markets.
Lang Son: Prevent poultry and poultry products from being illegally transported across the border

Lang Son: Prevent poultry and poultry products from being illegally transported across the border

VCN - According to the assessment, the Chi Ma border gate area always has a potential risk of outbreaks of violations related to smuggling and illegal transportation of goods across the border due to the large and complex area. For good control, Lang Son province's leaders requested forces to strengthen blocking, deploy control measures, and promptly handle emerging security and order issues in border areas and border gates.
Applying customs intelligence and IT to prevent abusing of the "green channel" for smuggling

Applying customs intelligence and IT to prevent abusing of the "green channel" for smuggling

VCN - At the questioning session of National Assembly deputies on March 18, 2024, the Minister of Finance said that the Customs sector has applied science and technology in goods classification, used camera systems, Customs intelligence, data analysis to minimize the situation of businesses taking advantage of green channels to commit violations.
Tuan Nam UNITED One Member Company Limited enforced to stop customs procedures for one year

Tuan Nam UNITED One Member Company Limited enforced to stop customs procedures for one year

VCN – Huu Nghi Border Gate Customs Branch (Lang Son Customs Department) has issued an enforcement decision stopping customs procedures for imports and exports of Tuan Nam UNITED One Member Company Limited for tax debt, late payment interest and fines.
What solution is there to prevent "ghost businesses" from tax evasion?

What solution is there to prevent "ghost businesses" from tax evasion?

VCN - LTS: After the Customs Magazine published a series of articles "Finding the delayed tax debts of enforced enterprises" on issues 19, 20, 21, the Editorial Office received a lot of angry feedback from readers that reflected the situation of some individuals misusing personal information to establish illegal businesses and evade state taxes. Customs Magazine continues to reflect this pressing issue to readers.
Innovating the organizational model of anti-smuggling activities of Vietnam Customs

Innovating the organizational model of anti-smuggling activities of Vietnam Customs

VCN - Building a customs control force at the central level which is the Anti-Smuggling and Investigation Department, and at the local level, forming a Regional Anti-Smuggling Team that can belong to the Anti-Smuggling and Investigation Department or the Regional Customs Department, etc.
C.D.M.A Mobile Phone Center enforced to suspend customs procedures for overdue tax debts

C.D.M.A Mobile Phone Center enforced to suspend customs procedures for overdue tax debts

VCN – C.D.M.A Mobile Phone Center has been enforced by the Customs to suspend its imports and exports for overdue tax debts worth about VND16 billion.
Seeking overdue tax debts of enforced businesses – Final part: Recommendations for effective debt recovery

Seeking overdue tax debts of enforced businesses – Final part: Recommendations for effective debt recovery

VCN - Through the recent implementation of debt recovery solutions, HCM City Customs has proposed many solutions and recommendations to amend some current regulations to recover tax debts effectively.
Read More

Your care

Latest Most read
Identify smuggling tricks across Quang Tri area

Identify smuggling tricks across Quang Tri area

VCN - According to Quang Tri Customs Department, in the first quarter of 2024, Quang Tri Customs Enforcement Team has detected and handled 70 customs offences with total fine of VND404,76 million.
The Ministry of Finance urges the implementation of anti-smuggling tasks

The Ministry of Finance urges the implementation of anti-smuggling tasks

Steering Committee 389 of the Ministry of Finance requested GDVC, General Department of Taxation, and units to seriously and effectively implement the conclusions of Deputy Prime Minister on anti-smuggling
Arrested an illegal immigrant transporting drugs from Cambodia to Vietnam

Arrested an illegal immigrant transporting drugs from Cambodia to Vietnam

VCN - However, he was arrested by Moc Bai Border Guard, Moc Bai Border Gate Customs, Long Thuan Commune Police, and Ben Cau District Police, and Tay Ninh Province.
Noi Bai Customs Branch gathers information to prevent gold smuggling

Noi Bai Customs Branch gathers information to prevent gold smuggling

VCN - Notably, the branch busted foreign passengers illegally transporting 86,300,000 won (equivalent to VND1.5 billion) across the border in early 2023.
Ho Chi Minh City Customs: Effectively monitor goods in transit with e-seals

Ho Chi Minh City Customs: Effectively monitor goods in transit with e-seals

VCN - Thanks to the application of modern management and supervision measures with electronic seals, inspection by scanners for goods in transit, goods temporarily imported for re-export, Ho Chi Minh City Customs Department has effectively controlled the
Mobile Version