Dong Nai Customs controls key enterprises and items at high risk of fraud

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Officers of Dong Nai port Customs Branch inspect import and export goods. Photo: N.H

Over 180 cases of violation

Because Dong Nai Customs Department manages enterprises in industrial parks and export processing zones, and import-export activities here are mainly export processing and production enterprises, there have been no violations since the beginning of the year related to smuggling, commercial fraud and counterfeiting of origin of goods.

Most of the violations in the province were related to the time limit for customs declaration registration procedures, the time limit for supplementing documents in the customs dossier, and violations of regulations on management of raw materials and supplies for export production, as well as the incorrect declaration of goods codes. Accordingly, in the first four months of 2022, the unit issued over 180 decisions on administrative fines totaling more than VND5 billion.

For example, Nhon Trach Customs Branch fined R.H JSC an amount of more than VND1.2 billion for two violations of using duty-free goods for improper purposes without a declaration of change of the purpose to the customs agency and inaccurately declaring import tax rate, leading to a lack of tax payable.

Bien Hoa Customs Branch fined N.VN Co., Ltd an amount of VND208.5 million because this company declared the wrong tax code, leading to the insufficient tax payable in two import declarations. N.N VN Co., Ltd. was fined VND 7.5 million for importing goods without original labels with infringing goods valued from VND10 to less than VND20 million.

Most recently, the Customs Enforcement Team in collaboration with Long Binh Tan Customs Branch and Bien Hoa Customs Branch discovered a case where an enterprise imported used machinery and tools without declaration.

Accordingly, this enterprise took advantage of the Yellow channel (exempt from inspection) for imported goods to make false declarations. Currently, Dong Nai Customs has been determining the value of imported goods and conducting inspections to determine the name and quality of the goods.

Origin fraud for imported and exported goods has tended to increase and is forecast to become a key violation in 2022 and onwards.

In addition, there are risks of taking advantage of the automated system for customs clearance to mix banned goods, conditional imported goods, high-tax goods; forging documents and vouchers; failing to declare or declaring the wrong name, quantity, value, use, tax code of goods outside the list of risky goods, goods subject to specialized management, goods with low tax rate and low-risk goods so that the system will classify the goods into the Green channel, or canceling the declaration when the system classifies the goods into the Red channel, said Dong Nai Customs.

Dong Nai Customs Department has noted the risk of enterprises intentionally leasing warehouses and factories for a short time to operate in the form of export processing, manufacturing of duty-free imported raw materials and high-tax goods and goods easy to consume in the domestic market, to evade tax obligations with the customs authority. Moreover, enterprises take advantage of imported raw materials and accessories that are exempt from import tax in the form of export processing and manufacturing to import goods with conditions, banned goods, and high-tax goods to sell in the domestic market.

Focus on key items

Faced with the above forecasts and assessments, in the first quarter of 2022, Dong Nai Customs Department issued a Customs control plan in 2022 and assigned a customs control target to the Department.

Accordingly, the plan shall identify key areas, key businesses, key products and professional measures to carry out the control of smuggling and trade fraud.

Specifically, Dong Nai Customs shall regularly collect and update information, analyzes and evaluates key commodities, businesses and routes; monitor and assess the sense of law observance of enterprises on the risk management system in channeling of enterprises in order to promptly detect fraudulent acts in declarations for smuggling and tax evasion.

According to the plan, Dong Nai Customs Department will carry out customs control measures in combination with inspections of production facilities, final settlement reports, and use of raw materials of export processing and manufacturing enterprises.

The examination of customs dossiers and declarations of customs officers will be carefully conducted and focus on key enterprises, areas, and items and the physical inspection will be implemented in case of identifying wrong declaration of name, code, quantity, unit price and origin of goods.

Border gate Customs branches under Dong Nai Customs Department shall strengthen patrol and supervision at ports in the area and areas adjacent to Ho Chi Minh City, Ba Ria - Vung Tau to promptly detect and handle enterprises and items at risk of smuggling, trafficking of foreign goods into Vietnam such as crew members, exit or entry passengers.

Along with that, Dong Nai Customs Department worked with authorities inside and outside the industry on the basis of the Coordination Agreements signed with authorities in the area such as the Police, Market surveillance, Department of Taxation, Treasury and Management Board of Dong Nai Industrial Parks, Border Guards of Ba Ria - Vung Tau, Binh Thuan.

Dong Nai Customs arranges customs officials to stay at the office

The authorities have actively contacted regularly to share information and collect information on violations of customs in order to promptly prevent acts of smuggling, commercial fraud, trafficking of goods of foreign goods imported into Vietnam, and counterfeit goods.