Enterprises evade price inspection at the border gate

Customs officers of the Investment and Processing Customs Branch (Ho Chi Minh City Customs Department) inspect dossiers of business’s imported goods Photo: Thu Hoa

According to the reflections of the Customs Branches, there are a number of enterprises which import and export goods that have Import or Export duty, where during implementation of Customs procedures, Customs officers detect suspicious signs of the declared price being lower than the data. Hence, Customs Branches decide to carry out post clearance audit, but the businesses do not come to work.

In fact, Customs detected many enterprises import goods and declare very low price, and when Customs requests to consult the price, the enterprises do not agree, so Customs implements clearance of the goods as per the business declaration. For example, the category of frozen foods, and tiles for flooring with the low declared price $US 1/kg; and $US 2/m2, meanwhile the reference price on the Customs system is higher than this price. The Customs Branches carry out post clearance audit but the businesses do not come to work.

According to the Ho Chi Minh City Customs Department, from the beginning of 2016 until now, the tax debt which cannot be collected due to decisions to impose a tax in the post clearance audit on taxable value raised many billions of vnd. The main cause is that startup businesses import huge volumes of goods but avoid price consultation to clear goods and then they delay to implement post clearance audit.

In order to restrict commercial fraud through the declaration of taxable price and loss in revenue and create a fair business environment among enterprises, the Ho Chi Minh City Customs Department has proposed Customs Branches which implemented the import of export procedures for enterprises, if the enterprises declare the price of their exported goods is lower than the data base and reference price in the list of risk management, Customs Branches will inspect and determine the taxable price and collect sufficient revenue to the State budget and prevent the businesses which do not come to work when Customs issues the decision on post clearance audit.

Besides, the Ho Chi Minh City Customs Department proposed Customs Branches regularly report the list of Import /Export enterprises which do not come to work when Customs issues the decision on post clearance audit or applies inspection measures for suspicion of taxable value determination, and collects sufficient tax for the State budget before Customs procedures, if the enterprises still do not follow Customs inspection measures.

Currently, there have been nearly 20 enterprises under the inspection and determination of the taxable price after enterprises had implemented Customs clearance procedures for import and export goods with suspicious signs on value.

According to the Ho Chi Minh City Customs Department, the evasion of price consultation and post clearance audit at the border gates of the enterprises is due to businesses based on the provisions in Article 25 of Circular 38/2015/TT-BTC of the Ministry of Finance to decide to disagree with Customs consultation. Therefore, Customs must implement Customs clearance in accordance with the price in the Customs declaration of the business and transfer the dossiers to the post clearance audit unit. However, when the Customs branches issued the decision to invite the business for implementation of post clearance audit, the business delays or asks for extending the inspection time to continue to import goods.

Point 2, Article 25 of Circular 38/2015/TT-BTC of the Ministry of Finance regulates the handling of such inspections:

a) If there is sufficient basis for rejecting the declared value, the Customs authority shall notify the declarant of the basis for rejection and:

a.1) request the declarant to make an additional declaration within 05 days from the notification date, impose administrative penalties, and grant Customs clearance of goods as prescribed, if the declarant agrees with the basis for rejecting the declared value.

Additional declarations shall be made in accordance with Clause 3 Article 20 of this Circular;

a.2) Grant Customs clearance according to the declared value and use the basis for rejecting the declared value for post-clearance inspection if the declarant does not agree with the basis for rejection or fails to make additional declaration within 05 days from the notification date.

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b) If the declared value is suspicious but there is not sufficient basis for rejecting, the Customs authority shall notify the declarant of the suspicious case via the System or use the form No. 02A/TBNVTG/TXNK in Appendix VI enclosed herewith (In case of paper-based Customs declaration), request the declarant to provide additional documents related to the method for determination of the declared value as prescribed in Circular of the Minister of Finance on Customs values of exported or imported goods (01 photocopy):

b.1) Within 05 days from the notification date, the declarant shall submit additional documents and request consultation (within specific time), the Customs authority shall release the goods as prescribed in Article 33 of this Circular and hold the consultation as prescribed in Clause 3 of this Article;

b.2) If the declarant fails to submit additional documents or does not request a consultation within 05 days from the notification date, the Customs authority shall grant Customs clearance according to the declared value and use the suspicion for post-clearance audit as prescribed.