Case of Chinese trolley speakers prosecuted

Trolley speakers imported by Tran Vuong Company are made in China but labeled ‘made in Vietnam’. Photo: T.H

On July 23 the representative of the Anti-Smuggling and Investigation Department (under the General Department of Vietnam Customs) said that after the determination, as per provisions in Article 188 of the Criminal Code, the Department issued a decision on criminal prosecution for the Tran Vuong Company for the act of smuggling.

The Customs proposed the Investigation Police Agency to specify the act of production and trade of counterfeit goods as prescribed in Article 192 of the Criminal Code and the act of issuing blank invoices.

According to the investigation, on July 12, Tran Vuong Import and Export Co.,Ltd (address: 93/1 Nguyen Chi Thanh, Ward 9, District 5, Ho Chi Minh City) opened declaration at Sai Gon Customs Branch of Zone 1 (under Ho Chi Minh City Customs Department to import a shipment of trolley speakers made in China.

The declared quantity of the shipment was 601 trolley speakers, type 35W, HS code8518.50.90, made in China valued at USD 10,217 (equivalent to VND 238,880,655).

The company submitted C/O form E (made in China) to enjoy the special preferential import tax rate of 15% (if there have no C/O form E, the company must be subject to tax rate of 20%).

According to the inspection and verification by the Customs authority, the shipment falsely declared the type, origin and capacity. In fact, the shipment was trolley speakers with connectivity options via USB, HS code 8518.50.10.

On the other hand, the cartons containing trolley speakers and microphones are labeled inVietnamese with the content “NANOMAX Speaker, Son Tung Construction and Electronics Joint Stock Company, headquarter: 83/5 Thoai Ngoc Hau - Hoa Thanh Ward - Tan Phu District - Ho Chi Minh City, the registered trademark certificate No. VN4-0082480, Made in Vietnam”, speakers are labeled NANOMAX, capacity of 300 W, the quantity of 600 speakers, made in Vietnam” and 1,200 micro without customs declaration.

The value of infringing goods is over VND 2.2 billion.

The shipment is not allowed to enjoyspecial preferential tax ratesaccording to C/O Form E number E184401810020155 dated September 7,2018 that was submitted to the Customs.

Notably, Tran Vuong Import Export Co., Ltd submitted the import-export contract entrusted by Son Tung Construction and Electronics Joint Stock Company to the Tran Vuong Company to import trolley speaker from the exporter as GUANGZHOU SANSKRIT TRADING COMPANY LIMITED (located in China).