HCM City Customs: Effectively control import - export goods during pandemic

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A recent import of 1.5 tonnes of dirty gloves is detected by the HCM City Customs Department. Photo: T.H

Over 700 violations detected

Although, smuggling and trade fraud in areas controlled by the HCM City Customs Department has declined amid the Covid-19 pandemic, the method and tricks are more sophisticated, especially origin fraud, trademark forgery, taking advantage of outsourcing and exporting activities, transit and customs border gate transfer to evade trade remedies and economic protection measures and to illegally transport goods.

The HCM City Customs Department said that smuggling and trade fraud methods mainly consist of traders taking advantage of the risk management mechanism in customs clearance, use the "channel selection" method (the same shipment is declared in multiple declarations in the same or different customs branches, if the shipment is classified into the Red channel, the trader will cancel the declaration and select the Yellow channel and the Green channel for customs clearance).

In addition, traders falsely declare the name of goods with low tax and low price to be classified into the Green channel, Yellow channel, or deliberately declare goods with high tax to hide prohibited items, fake goods or conditional imports for tax evasion; amend the manifest to avoid customs inspection and control to conduct smuggling and illegal transportation of goods across the border.

In addition, in order to avoid responsibility if discovered, the traders established many companies, registered incorrect addresses; the companies do not have a signboard, and frequently change headquarters. After the fraud is discovered, traders refuse to receive goods and do not work with customs authorities. Some recent import cases of banned goods as old medical gloves from China to Cat Lai port discovered by the HCM City Customs Department are an example

Strictly control goods in transit

According to the HCM City Custom, traders have recently taken advantage of the customs regime of goods in transit, temporarily imported goods for re-export, and goods exported from bonded warehouses from Vietnam to Cambodia to commit trade fraud and illegal cross-border transportation of goods. HCM City Customs has detected many violations but the fine level is still too low and not a sufficient deterrent.

For example, T.A.D Logistics Co., Ltd committed a violation on falsely declared quantity of goods in transit shipments, the HCM City Customs Department fined VND4 million. Similarly, an Import-Export Trading and Service Co., Ltd. was fined for VND3 million for the act of declaring the wrong name of goods for a transit shipment. Vinh Thinh Trading and Service Co., Ltd. made an incorrect declaration of quantity and name of transit goods, and was fined VND4 million.

The HCM City Customs Department said the fine levels for violations of transit goods mentioned above are still too low, and the solution for infringing goods is re-export of the goods.

In addition, the declaration on the customs declaration for transit goods is not detailed, only the name of the representative goods is declared, causing difficulties for anti-smuggling control. The HCM City Customs Department has equipped positioning seals to track the route of goods in transit, temporarily imported for re-export from the exit border gate to the entry border gate, but the number of seals granted is less than the number of containers that need to be sealed.

From the above inadequacies, to effectively manage and prevent violations from transit activities, the Customs Control Team under the HCM City Customs Department proposes that regarding transit procedures, goods owners must accurately declare in detail the name of the goods (as described in the prevailing list of Vietnamese import and export goods), quantity, weight, origin and condition of goods on the E-Manifest system of the State management agency.

Regarding conditions for trading and transporting goods in transit, it is advisable to strictly manage the licensing of transportation activities. Container goods, bulk goods from the ship to the port for transit procedures must be sealed by shipping companies and customs and loaded on the means of transport.

The payment of guarantee for the whole shipment is applied to the goods owner and the customs declarant when carrying out transportation procedures. At the same time, fine level for violations of goods in transit must be higher and infringing goods must be confiscated.

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In addition, packed goods, liquid goods and bulk goods transported by inland waterway must be sealed in connection with the customs branch at exit border gate and the customs branch at entry border gate.