Binh Phuoc Customs: Reorganise the import and export activities of cashew nut

VCN - Binh Phuoc Customs Department is implementing measures to improve management efficiency for import and export activities of cashew nuts in Binh Phuoc province. Thereby, many cases have been prosecuted with the number of raw materials up to tens of thousands of tons.
The act of smuggling cashew nuts by enterprises causes great losses to the state budget. Photo: N.H
The act of smuggling cashew nuts by enterprises causes heavy losses to the state budget. Photo: N.H

Intentionally changing the purpose of using thousands of tons of materials

Recently, Binh Phuoc Customs Department has issued a decision to prosecute a criminal case of "smuggling" occurring at Tuan Thinh Trading Production One Member Limited Liability Company (referred to as Tuan Thinh Company).

According to the dossier of Binh Phuoc Customs Department, Tuan Thinh Company has a business address in Phuoc Long town, Binh Phuoc province and is registered to operate the business of agricultural products, processing cashew nuts for export. From January 23, 2017 to July 2022, Tuan Thinh Company opened 33 import declarations under the type of export production (E31) with a total volume of 3,611 tons of raw cashew, equivalent to a taxable value of over VND166 billion. Also during this time, the company opened two export declarations for cashew kernels with a total export volume of only 53 tons.

According to customs dossier, the amount of unshelled raw cashew nuts in the import declarations of type E31 which was backlogged is 2,828 tons.

Calculated at the average unit price, this volume is equivalent to VND130 billion, the corresponding import tax amount is VND6.5 billion.

At the end of October 2021, Chon Thanh Customs Branch - Binh Phuoc Customs Department checked the situation of using raw materials and inventory, machinery, equipment and exported goods at the headquarters of Tuan Thinh Company. At the time of inspection, the company was operating and the company representative also confirmed that 2,828 tons of raw cashew materials were no longer in stock according to the customs declaration which was worth VND130 billion, corresponding to the tax amount of VND6.5 billion.

Through investigation, verification and working with Mr. Dang Van Tuan, Director of Tuan Thinh Company, Mr. Tuan admitted that the company had directly sold cashew kernel products made from 2,828 tons of imported raw cashew nuts at 33 declarations under the form of E31 for two customers. Accordingly, one enterprise in Binh Phuoc signed 24 contracts to buy cashew kernels in the period from June 2020 to June 2021 with a total weight of nearly 558 tons, worth VND72.2 billion; a business in Ho Chi Minh City signed a contract to buy 7.5 tons of cashew kernels, worth VND1.08 billion. Both of these enterprises confirmed that they bought and sold cashew nuts with Tuan Thinh Company as mentioned above.

According to Binh Phuoc Customs Department, Tuan Thinh Company had intentionally changed the purpose of use for 2,828 tons of raw cashew nuts as imported raw materials for export production, the value according to customs declaration was VND130 billion. According to the provisions of Decree No. 08/2015/ND-CP (amended and supplemented in Decree No. 59/2018/ND-CP) and Circular No. 38/2015/TT-BTC (amended, supplemented in Circular No. 39/2018/TT-BTC), goods are raw materials and supplies imported for processing and production of exported goods and goods temporarily imported and re-exported that have been released or cleared but then changed the purpose of use or domestic consumption.

It must make a new customs declaration. Changing to domestic consumption or change of use purpose shall be carried out only after completing the customs procedures for the new customs declaration. However, so far, Tuan Thinh Company has not followed the prescribed procedures.

Thus, the actions of Tuan Thinh Company have infringed on the state economic management of export and import, showing signs of smuggling as specified in Clause 4, Article 188 of the Criminal Code 2015 (amended and supplemented in 2017).

Strictly punish violations

According to statistics of Binh Phuoc Customs Department, in the province, there are more than 1,000 businesses operating in the field of buying, selling, manufacturing, processing, importing and exporting cashew nuts. In particular, there are more than 200 enterprises engaging in the import and export of cashew nuts. Notably, the majority of enterprises in the cashew industry are small and medium enterprises.

According to the provisions of the Law on Export Tax and Import Tax No. 107/2016/QH13, raw cashew nuts and cashew kernels imported to produce exported goods are exempt from export tax. Along with that, VAT Law No. 13/2008/QH12 also stipulates that raw materials imported to produce export goods under production contracts are not subject to VAT.

For example, enterprises import raw materials under the form of E31 to enjoy tax incentives and specialized inspection, then they only produce a small part of materials for export to cover the eyes of the management agency while a large amount of raw materials is processed for domestic consumption. This is not a new trick but many businesses still find ways to take advantage of it, affecting the business environment as well as causing loss for the state budget.

Director of Binh Phuoc Customs Department Nguyen Van Lich said Binh Phuoc Customs Department has reviewed and classified enterprises. Accordingly, for businesses that comply with the law, the unit will encourage businesses to continue to develop. For businesses that do not know the regulations and still have some mistakes, the unit will guide and support businesses to improve their compliance. Particularly, for enterprises that intentionally take advantage of the State's preferential policies to make a profit, the unit will take strict handling measures.

Since the beginning of the year, Binh Phuoc Customs Department has issued three prosecution decisions to a case similar to Tuan Thinh Company with a total volume of nearly 19,000 tons of raw cashews, equivalent to over VND550 billion. Currently, the unit is also coordinating to investigate many other businesses that have similar behavior.

Besides strongly handling enterprises that intentionally violate the law to gain profit, Binh Phuoc Customs Department has launched many dissemination and support activities to raise awareness for businesses.

Specifically, the unit has gathered and compiled statistics on the risks that businesses may face when importing raw cashew nuts to produce export products in the form of E31 to help businesses review and adjust in order to avoid mistakes.

By Nguyễn Hiền/Thanh Thuy

Related News

Thousands of diamonds seized in airport smuggling bust

Thousands of diamonds seized in airport smuggling bust

VCN - After proactively coordinating with the Economic Police Division, Ho Chi Minh City Police to detect and arrest a case of smuggling more than 700 diamonds transported by an Indian man, Tan Son Nhat International Airport Customs Branch, Ho Chi Minh City Customs Department continued to detect and arrest another smuggling case with more than 300 diamonds.
Quang Ninh Customs collects 85.75% of the budget revenue through the seaport area

Quang Ninh Customs collects 85.75% of the budget revenue through the seaport area

VCN - In the first 9 months of 2024, Quang Ninh Customs Department collected VND 13,885.23 billion in revenue collection, reaching 111.08% of the assigned estimate (VND 12,500 billion), reaching 106.81% of the target assigned by Quang Ninh province (VND 13,000 billion), an increase of 8.67% over the same period in 2023
Establish nearly 170 bogus enterprises to purchase illegal invoice

Establish nearly 170 bogus enterprises to purchase illegal invoice

VCN - Hoang Phi has established 168 bogus enterprises to commit the act of purchasing illegal invoice in over 4 years.
Foreigner caught smuggling 7 gold pieces at Noi Bai Airport

Foreigner caught smuggling 7 gold pieces at Noi Bai Airport

VCN - On October 18, Noi Bai International Airport Customs Branch (Hanoi Customs Department) discovered a male foreigner, hiding 7 pieces of metal weighing about 7kg, suspected to be gold, upon entering the country.

Latest News

Three-year drug bust nets over 23 tons

Three-year drug bust nets over 23 tons

VCN - After more than 3 years of implementing the Drug Prevention and Control Program for the period 2021-2025, competent forces have cracked down on tens of thousands of cases and seized more than 23 tons of various drugs.
Exposing a transnational drug ring hidden in pet food

Exposing a transnational drug ring hidden in pet food

VCN - The Hanoi City Police Investigation Agency has completed the investigation and concluded the investigation into the case of illegal transportation of drugs from the Czech Republic to Vietnam.
Customs control and prevent many drug trafficking cases in the South

Customs control and prevent many drug trafficking cases in the South

VCN - Proactively grasping the situation and controlling the assigned areas, recently, the Southern Anti-Drug Smuggling Control Team (Team 6) under the Anti-Smuggling and Investigation Department, General Department of Customs, has coordinated to detect and prevent many drug smuggling cases through the Southern region.
An Giang Customs announces businesses with tax arrears

An Giang Customs announces businesses with tax arrears

VCN - An Giang Customs Department has just announced 25 businesses with tax arrears worth over VND6.2 billion.

More News

Unit 4: Stopping dozens of cases of transportation in counterfeits through border gates

Unit 4: Stopping dozens of cases of transportation in counterfeits through border gates

VCN - More than 20 cases of importing and exporting counterfeits and goods infringing intellectual property rights were promptly stopped by the Anti-Smuggling and IPR Protection Enforcement Unit (Unit 4) under the Anti-Smuggling Investigation Department, General Department of Customs.
Ho Chi Minh City Customs and Border Guard join hands to prevent dozens of smuggling cases

Ho Chi Minh City Customs and Border Guard join hands to prevent dozens of smuggling cases

VCN - With efforts to develop and implement a plan to combat smuggling, trade fraud and illegal transportation of goods, Ho Chi Minh City Customs and Border Guard forces have prevented dozens of violations, many of which have been criminally prosecuted.
Vietnam, Laos cooperate effectively in combating drug crimes

Vietnam, Laos cooperate effectively in combating drug crimes

VCN - Through the coordination between the Vietnamese Ministry of Public Security and the Lao Ministry of Public Security, many drug cases have been promptly solved, including many major cases.
HCM City Customs detect over 20 cases of smuggling and tax evasion

HCM City Customs detect over 20 cases of smuggling and tax evasion

VCN - Among nearly 1,700 cases of customs law violations detected by the HCM City Customs Department, there were over 20 cases of smuggling and tax evasion.
Ho Chi Minh City: Tightening management of trading of toxic chemicals

Ho Chi Minh City: Tightening management of trading of toxic chemicals

VCN - Many cyanide poisoning cases have occurred in the recent time. However, toxic chemicals, including cyanide, are still openly sold on the market and on social networks. Ho Chi Minh City authorities have simultaneously inspected many chemical-related businesses in District 5 and discovered many violations.
Risk of cigarette smuggling outbreak in Southwestern border in flood season

Risk of cigarette smuggling outbreak in Southwestern border in flood season

VCN - The volume of goods smuggled across the border in some southwestern border provinces has tended to increase, especially cigarettes originating from Cambodia, which are breaking out with sophisticated transportation methods.
Over half a ton of firecrackers intercepted at Cha Lo border gate

Over half a ton of firecrackers intercepted at Cha Lo border gate

VCN - Quang Binh Customs recently coordinated an inspection and discovered that a tractor-trailer truck entering Vietnam from Laos was hiding 556.3 kg of firecrackers.
Dinh Ba Customs cooperates to arrest a subject carrying more than 4 kg of drugs swimming from Cambodia to Vietnam

Dinh Ba Customs cooperates to arrest a subject carrying more than 4 kg of drugs swimming from Cambodia to Vietnam

VCN - A subject carrying more than 4 kg of drugs swimming from Cambodia to Vietnam was arrested by the Dong Thap Border Guard in coordination with Tan Hong District Police and Dinh Ba International Border Gate Customs Branch.
Noi Bai Customs consecutive detection of 2 cases of foreigners hiding metals suspected to be gold

Noi Bai Customs consecutive detection of 2 cases of foreigners hiding metals suspected to be gold

VCN - In just one day, the Noi Bai International Airport Customs Branch (Hanoi Customs Department) has consecutively detected 2 cases of foreign visitors hiding gold bars on their bodies, with a total weight of 3kg for each case.
Read More

Your care

Latest Most read
Three-year drug bust nets over 23 tons

Three-year drug bust nets over 23 tons

After more than 3 years of implementing the Drug Prevention and Control Program, competent forces have cracked down on tens of thousands of cases and seized more than 23 tons of various drugs.
Thousands of diamonds seized in airport smuggling bust

Thousands of diamonds seized in airport smuggling bust

Tan Son Nhat International Airport Customs Branch, Ho Chi Minh City Customs Department continued to detect and arrest another smuggling case with more than 300 diamonds after the seizure of 700 diamonds
Exposing a transnational drug ring hidden in pet food

Exposing a transnational drug ring hidden in pet food

VCN - The Hanoi City Police Investigation Agency has completed the investigation and concluded the investigation into the case of illegal transportation of drugs from the Czech Republic to Vietnam.
Customs control and prevent many drug trafficking cases in the South

Customs control and prevent many drug trafficking cases in the South

VCN - Proactively grasping the situation and controlling the assigned areas, recently, the Southern Anti-Drug Smuggling Control Team (Team 6) under the Anti-Smuggling and Investigation Department, General Department of Customs, has coordinated to detect a
An Giang Customs announces businesses with tax arrears

An Giang Customs announces businesses with tax arrears

VCN - An Giang Customs Department has just announced 25 businesses with tax arrears worth over VND6.2 billion.
Mobile Version