Company criminally prosecuted for illegally exporting electric scrap

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Tens of tons of smuggled electric scrap were seized by Customs

Tens of tons of smuggled electric scrap were seized by Customs

In early 2020, PHSGROUP Vietnam Co., Ltd. (Address: No. 62/8B, Street 5D, Quarter 21, BinhHoa A Ward, Binh Tan District, Ho Chi Minh City) carried out customs procedures to export two containers including 240 sets of rubber wooden dining tables, 100% new, and made in Vietnam. The item is not subject to export tax and the declared value is over VND138 million.

Detecting suspicious signs of the shipment, on March 10, the Export Cargo Customs Procedures Team coordinated with the Customs Enforcement Team under the Sai Gon Seaport Zone 1 Customs Branch to conduct a physical inspection. As a result, the team detected that all goods inside the two containers were electric circuit boards with a weight of 3.6070 kg, packed in 78 bags. There were no rubber wooden dining tables as declared by the company.

The certificate of inspection of Center 3 showed that electric circuit boards in the two containers were scrap from the integrated electronic circuits containing electronic components. These goods are hazardous waste as prescribed in Circular No.36/2015/TT-BTNMT dated June 30, 2015 of the Minister of Natural Resources and Environment. The value of infringing goods was more than VND441 million, and over VND44 million in tax evasion.

Sai Gon Seaport Zone 1 Customs Branch made the written record of the violation for PHSGROUP Vietnam Co., Ltd for the false declaration of name, HS code, and quantity of exported goods that are hazardous waste and not approved by competent agencies and detected by Customs. This violation is stipulated in Article 10 of the Law on Customs 2014, Point C, Clause 8, Article 21 of Government Decree No.155/2016/ND-CP dated November 18, 2016 on sanctioning of administrative violations in environmental protection.

After detecting the violation of the exported shipment, the company issued an official letter to explain themistake in customs declaration with information of another company and the reason for not amending and supplementing the declaration.

According to the explanation, exported goods were declared as plastic electric scrap and were cut, weighing 36,190 kg valued at US$3,908. However, at the time of physical inspection, the company did not provide a written approval issued by the Vietnam Environment Administration for the cross-border transportation of hazardous waste.

Director of PHSGROUP Vietnam Co., Ltd. said that the customs declaration for the above shipment is performed by a customs broker. Thecustoms brokermistakenly declared theinformation of another company. The company did not intentionally make this mistake.

However, the Saigon Seaport Zone 1 Customs Branch detected one invoice signed and stamped by the company’s director showing the goods name in line with the company’s declaration on the customs declaration.

In addition, the name of goods shown on the sale contract and value-added invoice provided by the company is plastic electric scrap. The two invoices have the same number, date and time with the signature of the company’s director and seal; the documents in the export dossier and vouchers stated the same importer namely: Kabushiki kaisaYamadaToshi/YamadaToshi And CO.LTD.

The delivery order of the empty container No.SITSGOSG184997 showed the shipper as KVC Logistics & Trading CO., LTD and the product name as electric scrap.

The results of verification at the shipping line and the partners involved in the above export shipment, the name of goods was declared as electric scrap.

Therefore, the company's explanation is not reasonable. Customs determined that PHSGROUP Vietnam Co., Ltd has intentionally made a false declaration of the name, code, quantity of exported goods that are hazardous wastes and not approved by State competent agencies.