HCM City Customs: Prevent revenue loss from shipments of processed goods

VCN – HCM City Customs Department recently detected many shipments of processed goods and export production that evaded a large amount of tax, collected billions of dong to the State budget, and at the same time gave many warnings and notices to businesses.
2435-5750-9-4035-img-1436
HCM City Customs officials inspected imported raw materials. Photo: T.H

Collecting billions of tax arrears

Recently, by checking the finalisation report of delivery-receiving-inventory of raw materials, import materials and export products by type of processing of M Joint Stock Company (address at Di An, Binh Duong), the Investment Customs Branch - HCM City Customs Department discovered this enterprise violated regulations on the management of raw materials for export production, resulting in an insufficient inventory of goods compared to accounting vouchers and the accounting books and customs dossier for export or import goods not in cases specified at Points d, đ, e and g, Clause 1, Article 14 of Decree 128/2020/ND-CP dated October 19, 2020.

From the above fraud, the amount of tax evasion that had to be paid to State budget was more than VND 1.2 billion. At the same time, violations of regulations on making finalisation reports on the quantity of imported raw materials, supplies and components for export production that are incorrect with the actual amount of goods of use, resulting in a shortage of payable tax amount of more than VND 28 million. Besides collecting the full amount of tax arrears, the customs authority sanctioned this enterprise nearly VND 250 million for its violation.

In January 2021, an enterprise was sanctioned and collected more than VND 4.5 billion by HCM City Customs for violation of regulations on the management of raw materials for export production, leading to a shortage in the actual inventory compared with accounting documents, customs dossiers. High-Tech Park Customs Branch – HCM City Customs Department conducted an inspection on the performance of export production contracts for electronic components of B Technology Manufacturing and Service Co., Ltd. (address at Thu Duc City - HCM City). The unit discovered this company violated law on customs. Specifically, the firm violated the regulations on the management of raw materials, serving for export production, resulting in a shortage in the actual inventory compared to accounting books and customs dossiers, resulting in a lack of payable tax with the total amount of more than VND 4.1 billion. Through reviewing the documents and explanations of the enterprise, the High-Tech Park Customs Branch collected the tax arrears and issued a decision on a monetary penalty that was equal to 10% of the understated tax amount for the firm due to the above violation, with an amount of monetary penalty more than VND 412 million. Total fine and tax arrears collection of more than VND 4.5 billion.

Not only violating the performance of processing and export production contracts, via reviewing, HCM City Customs Department also discovered several cases of incorrectly declaring codes and tariff rates for imported goods.

In February 2021, the Processing Customs Branch made a record of administrative violations for P. Vietnam Co., Ltd. for the act of "Incorrect declaration of code, tariff rate of goods, resulting in a lack of payable tax amount”. The Customs authority discovered the mistakes of this enterprise when reviewing the declarations already cleared. However, the firm voluntarily made an additional declaration and fully paid payable tax amount before the time for making the violation record. The value of infringing goods was more than VND 15 billion. In the process of verifying the details of the case and considering the explanation, the Processing Customs Branch sanctioned this company 20% of the understated tax amount (over VND 1.7 billion) with a total fine of more than VND 342 million.

Giving a lot of warnings

From the above fact, to comply with the law, the HCM City Customs Department has given many notes and warnings to businesses to comply with regulations. In particular, it is suggested that import-export firms strictly manage their digital signatures to avoid being taken advantage of, affecting the rights and interests of enterprises. At the same time, they should be choosing and using credible customs broker services and have experience in declaration, such as customs brokers certified by the General Department of Vietnam Customs.

At the same time, customs branches also pay attention to firms, to avoid violations caused by foreign partners voluntarily sending incorrect goods compared to the contracts, companies need to discuss carefully with partners before signing contracts on goods management policies so as not to accidentally get involved in violations of used machinery and equipment, means of transport that are not allowed to circulate. If the enterprise intentionally violates this with a value of VND 200 million or more, they will be prosecuted with criminal liability in accordance with article 188 of the Penal Code.

In addition, several violations of regulations on tax declaration, including failure to declare or incorrectly declare the name, type, quantity, quality, value, origin and code of the goods. In the most violation rate is an incorrect declaration of goods codes, the firm needs to remedy by implementing Article 28 of the Customs Law on pre-determination of code, origin and valuation.

The Processing Customs Branch has noted enterprises many important points in announcing production facilities and storage places of goods in accordance with the provisions of Circular 39/2018/TT-BTC dated April 20, 2018 of the Ministry of Finance to avoid being sanctioned for violating regulations.

In fact, through inspection and review by the Processing Customs Branch, many processing firms have not notified the information of production base on the electronic data processing system of the customs authority in accordance with regulations. Besides that, many enterprises have not submitted annual finalisation reports yet despite being reminded many times. The Customs authority is verifying the operation of enterprises in accordance with regulations.

By Lê Thu/Thanh Thuy

Related News

Solutions to prevent or fraud of origin and geographical indication violations

Solutions to prevent or fraud of origin and geographical indication violations

VCN - The Customs Magazine recently interviewed Nguyen Van Hoan, Deputy Director of the Anti-Smuggling and Investigation Department (General Department of Vietnam Customs), to discuss solutions for combating tax evasion, fraud of origin and geographical indication violations in the coming period.
HCM City Customs detect over 20 cases of smuggling and tax evasion

HCM City Customs detect over 20 cases of smuggling and tax evasion

VCN - Among nearly 1,700 cases of customs law violations detected by the HCM City Customs Department, there were over 20 cases of smuggling and tax evasion.
Ministry of Finance directs to strengthen fight against smuggling, trade fraud and tax evasion

Ministry of Finance directs to strengthen fight against smuggling, trade fraud and tax evasion

VCN - The Ministry of Finance's Steering Committee 389 has just directed the General Department of Customs, the General Department of Taxation and the Ministry of Finance Inspectorate to strengthen the fight against smuggling, trade fraud and tax evasion.
The finance sector

The finance sector's firm stance on combating tax evasion in e-commerce

VCN - Addressing and clarifying some opinions raised by National Assembly deputies during the questioning session on issues related to the commerce and industry sectors on the afternoon of June 4, Minister of Finance Ho Duc Phoc stated that in the coming period, the finance sector would rigorously enforce tax collection on e-commerce to ensure fairness in the fulfillment of taxpayers' obligations.

Latest News

Southern Customs contributed many practical contents on customs supervision and control procedures

Southern Customs contributed many practical contents on customs supervision and control procedures

VCN - The contents related to the articles and clauses of the draft Decree amending and supplementing Decree 08/2015/ND-CP and the circulars have been specifically commented on by Southern Customs units based on practical experience.
Over 300 Southern enterprises attend workshop to provide feedback to the General Department of Vietnam Customs

Over 300 Southern enterprises attend workshop to provide feedback to the General Department of Vietnam Customs

VCN - On November 21, 2024, more than 300 enterprises from Southern Vietnam with significant import-export (I/E) volumes participated in a workshop held in Ho Chi Minh City. The event, organized by the General Department of Vietnam Customs, sought feedback on the draft decree amending and supplementing Decree No. 08/2015/ND-CP dated January 21, 2015, and the draft circular amending and supplementing Circular No. 38/2015/TT-BTC dated March 25, 2015, and Circular No. 39/2018/TT-BTC dated April 20, 2018, issued by the Minister of Finance.
New Steering Committee to spearhead Customs Reform and Modernization

New Steering Committee to spearhead Customs Reform and Modernization

VCN - The General Department of Vietnam Customs has taken a decisive step toward transforming Vietnam's customs sector with the establishment of the Customs Reform and Modernization Steering Committee. The newly formed body is tasked with crafting strategies and guiding the sector's short-, medium-, and long-term reform and modernization efforts.
Appointment of new Directors for the Customs Reform and Modernization Board and Anti-Smuggling and Investigation Department

Appointment of new Directors for the Customs Reform and Modernization Board and Anti-Smuggling and Investigation Department

VCN - On November 21, 2024, at the headquarters of the General Department of Vietnam Customs, Director General Nguyen Van Tho presided over the ceremony to announce the appointment of new leaders for the Customs Reform and Modernization Committee and the Anti-Smuggling Investigation Department.

More News

Binh Duong Seaport Customs Branch supports and facilitates enterprises

Binh Duong Seaport Customs Branch supports and facilitates enterprises

VCN – Binh Duong Seaport Customs Branch (Binh Duong Customs Department) upgrades technology and modern equipment, creating conditions for businesses to clear goods quickly and effectively.
Promoting Vietnam-Laos Customs cooperation

Promoting Vietnam-Laos Customs cooperation

VCN - On November 19, 2024, in Hanoi, Vietnam Customs held the Vietnam - Laos Customs Directors General Conference.
Ho Chi Minh City: Imported gasoline, iron and steel greatly affect state budget revenue

Ho Chi Minh City: Imported gasoline, iron and steel greatly affect state budget revenue

VCN - Carrying out customs procedures for special imported goods, such as iron and steel, gasoline, Saigon Port Customs Sub-department, Region 3 is expected to generate large revenues, but the state budget revenue from these two items has decreased sharply.
Quang Nam Customs facilitates trade and increases revenue

Quang Nam Customs facilitates trade and increases revenue

VCN – Goods imported and exported across Quang Nam province’s border gates surges in the second half of the year. Quang Nam Customs Department has implemented solutions to facilitate enterprises, increasing the State revenue.
Quang Tri Customs: Revenue from imported coal plunges

Quang Tri Customs: Revenue from imported coal plunges

VCN - Coal and wood of all kinds are items that contribute greatly to the state budget revenue of Quang Tri Customs Department, but are fluctuating in a downward direction.
Closely control imported products traded via e-commerce

Closely control imported products traded via e-commerce

VCN – The General Department of Vietnam Customs has directed local customs departments to strengthen control and supervision for imported goods traded via e-commerce.
Mong Cai Customs sets new record in revenue collection

Mong Cai Customs sets new record in revenue collection

VCN - The Mong Cai Border Gate Customs Branch, under the Quang Ninh Customs Department, has set a new record for the highest state revenue collected to date.
Lao Cai Customs attracts over 100 new businesses for customs procedures

Lao Cai Customs attracts over 100 new businesses for customs procedures

VCN - Compared to the same period in 2023, the number of businesses handling procedures at Lao Cai border gate customs branch (under Lao Cai Customs Department) has grown by 109 companies.
Vietnam Customs attends WCO’s flagship conference

Vietnam Customs attends WCO’s flagship conference

VCN - The 2024 World Customs Organization (WCO) Technology Conference and Exhibition with the theme “Digital Frontiers: Customs Embracing Innovation with Traditional and New Partners” hosted by Brazil’s Secretariat of the Federal Revenue, took place from November 12-14, 2024 in Rio De Janeiro, Brazil.
Read More

Your care

Latest Most read
Southern Customs contributed many practical contents on customs supervision and control procedures

Southern Customs contributed many practical contents on customs supervision and control procedures

VCN - Speaking at the workshop, Deputy Director General Au Anh Tuan emphasized that Decree 08/2015/ND-CP and Circular 38/2015/TT-BTC, issued since 2015, have basically created legal conditions for the Customs authority to carry out state management of cus
Over 300 Southern enterprises attend workshop to provide feedback to the General Department of Vietnam Customs

Over 300 Southern enterprises attend workshop to provide feedback to the General Department of Vietnam Customs

More than 300 enterprises from Southern Vietnam with significant import-export (I/E) volumes participated in a workshop held by the General Department of Vietnam Customs in Ho Chi Minh City
New Steering Committee to spearhead Customs Reform and Modernization

New Steering Committee to spearhead Customs Reform and Modernization

The General Department of Vietnam Customs has taken a decisive step toward transforming Vietnam's customs sector with the establishment of the Customs Reform and Modernization Steering Committee
Appointment of new Directors for the Customs Reform and Modernization Board and Anti-Smuggling and Investigation Department

Appointment of new Directors for the Customs Reform and Modernization Board and Anti-Smuggling and Investigation Department

Director General Nguyen Van Tho presided over the ceremony to announce the appointment of new leaders for the Customs Reform and Modernization Committee and the Anti-Smuggling Investigation Department.
Binh Duong Seaport Customs Branch supports and facilitates enterprises

Binh Duong Seaport Customs Branch supports and facilitates enterprises

VCN - According to Binh Duong Seaport Customs Branch, the branch has processed import and export procedures for over 600 enterprises, up 41% compared to the same period of the year, with import and export turnover of US$431 million, up 12.3% year-on-year.
Mobile Version