Dong Nai Customs Department: Collecting tens of billions of dong through inspection

	Dong Nai Customs Department: Control in parallel with support for businesses
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	Dong Nai Customs: Answering questions on tax deduction, C/O verification for Taiwanese enterprises

Preventing revenue loss

Recently, through inspection of the observance of customs and tax law on exported and imported goods, Dong Nai Customs Department detected G.T. Joint Stock Company (Long Thanh, Dong Nai) had fewergoods receivedthan weredeclared. Regarding the amount of goods declared in the E31 declarations (import for export production), the company could not prove the warehousing of raw materials and tracked to put into production, not to be subject to tax exemption, tax collection or refund. In addition, the company also did not state the import fees such as CIC, DO, container cleaning must be added in 22 declarations in accordance with the conditions of adding value.

With these above violations, Dong Nai Customs Department has issued a decision to impose tax and administrative penalties with a total amount of over VND24 billion, including VND9.6 billion of import tax, VND11.1 billion of VAT and VND3.4 billion of administrative fines.

Similarly, through inspection, Dong Nai Customs Department issued a decision to impose tax and an administrative fine onPK Co., Ltd. for nearly VND272 million for the difference of raw materials; D.G Co., Ltd. also facestax of nearly VND771 million for the difference of raw materials and a fine of VND106 million for administrative violations.

In addition, in the first nine months of 2019, Dong Nai Customs Department also completed 52 post-clearance inspections with revenue of nearly VND60 billion, including tax and administrative fines, completing 86% of assigned targets (VND70 billion). The violations of enterprises mainly arise inthe difference between inventory data according to the customs declaration of raw materials and supplies imported for production, exportation and processing with the actual inventory data recorded in the accounting book.

CB Company was fined nearly VND179 million for violating regulations on management of raw materials, supplies, machinery, equipment, processed products, export production and export processing, resulting in actual goods being fewer compared to accounting documents, accounting books, records of export and import goods. H.I VN Co., Ltd was also fined nearly VND1.3 billion for violating the regulations on declaration of goods codes and tax rates for goods guided by customs offices; violations of the regulations on management of raw materials, supplies, machinery, equipment, processed products, export production and export processing, resulting in actual goods lower in comparison with accounting vouchers and accounting books, records of export and import goods.

Creating a fair business environment

Mr. Nguyen PhucTho, Deputy Director of Dong Nai Customs Department, said through inspection and post-clearance inspection, Dong Nai Customs Department has detected many cases of violations and errors of enterprises. However, in the process of performing the role of state management of customs in the area, Dong Nai Customs Department realized that most enterprises in Dong Nai province were foreign-invested enterprises withlimited knowledge of Vietnamese, mainly based on the professionalism and compliance of Vietnamese staff. Therefore, many cases of violations are discovered through inspections but not by the intentional faults of enterprises. Therefore, besides checking the compliance of enterprises with laws and preventing losses of state budget, the inspection and examination also aims to recommend, remind and disseminate the provisions of Vietnamese law to businesses, helping themunderstand, properly implement and avoid violations later. In addition, the detection of violations and penalties and tax arrears are also creates a fair competitive environment among businesses, helping the local economy to develop and improve investment in the area.

According to the Dong Nai Customs Department's plan, from now until the end of the year, in addition to focusing on completing the targets on the number of inspection and examination cases, the state budget revenues according to the plan approved in 2019, the unit will focus on checking, identifying the origin, combating fraud, counterfeiting origin, labels, illegal transmissions under the direction of the General Department of Customs. In addition, focusing on collecting and analyzing information of enterprises with spikes in export turnover of goods into big markets such as the US and China, enterprises with import turnover of goods from other countries being applied trade defense measures increased sharply over the same period last year,identify objects, formulate inspection and post-clearance inspection plans for 2020.