Cases of making false documents to illegally import scrap

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Plastic scrap that was not eligible for import was seized by the Customs force in Hai Phong Port. Photo: N.L

Making false seal of the Department of Natural Resources and Environment

By strengthening measures to control and prevent violations of scrap imports (especially in 2018), Customs authorities detected many cases of making false documents and dossiers to illegally import scarp.

These are acts of counterfeiting, erasing and revising documents issued by State agencies to legalise dossiers for scrap imports.

A typical example is Duc Dat Import Export Trading Service Co., Ltd (registered in Dong Mai Hamlet, Khanh Hai commune, Yen Khanh district, Ninh Binh province).

According to investigation results, the company made a false certificate of eligibility for scrap import No.1094/GCN-STNMT dated September 14, 2015 of the Department of Natural Resources and Environment of Ninh Binh province and made false notifications issued by the Ninh Binh Department of Natural Resources and Environment to submit to the Customs authority when carrying out Customs procedures for scrap imports.

According to the results of a criminal record check conducted by the Division of Criminal Science (the Police of Hai Phong City), the seal of the Ninh Binh Department of Natural Resources and Environment was fake.

The other violations are that companies also falsified the Deposit Certificate of Imported Discarded Materials and the Blocking Certificate to carry out import procedures.

Duc Dat Import and Export Trading Service Co., Ltd and Truong Thinh Private Enterprise made false Deposit Certificate of Imported Discarded Materials issued by banks to carry out import procedures. Through investigation, the related banks confirmed that they did not issue these certificates for these companies.

There are no production facilities, companies still import scrap for production

In other cases, enterprises were granted a certificate of eligibility for discarded materials as production material but Customs detected that these enterprises did have not production facilities or had production facilities but their production capacity was lower than the amount of discarded materials allowed to import and mainly imported for sale to enterprises dealing in recycling scrap that do not comply with the law, causing environmental pollution.

Hong Viet Trading Service Construction Production Co., Ltd (Ward 4, District 4, Ho Chi Minh City) imported scrap then sold it to domestic businesses such as Yen Hung Co., Ltd in Hai Phong City.

Bao Phuoc Co.,Ltd imported scrap but it does not have the production facility and only sells and consumes scrap in the domestic market.

In some other cases, enterprises imported scrap exceeding the limits granted by the Ministry of Natural Resources and Environment or the Department of Natural Resources and Environment.

Hong Viet Trading Service and Construction Production Co., Ltd is also a typical company to carry out this violation.

Accordingly, the company imported scrap steel in excess of 984 tonnes compared to the total licensed quantity and imported plastic scrap in excess of 64,249 tonnes compared to the total quantity licensed by the Department of Natural Resources and Environment of Ben Tre province.

Huong Quynh Cam Hung Company Limited (in Hai Duong) was only approved for production capacity of about 3,600 tonnes of scrap but this company imported up to 58,500 tonnes, exceeding the licensed capacity to 54,900 tonnes (more than 15 times the designed capacity).

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The customs authority also discovered violations like falsely declaring the name and codes of goods to import to not subject to the management policies for scrap; revising information on name of goods, destination place in the bill of lading in the e-manifest to change the operation area and change the name of the goods to avoid the Customs inspection and control; hiding goods banned from import, temporarily suspended from import in imported scrap shipments.