Investigating to clarify the shipment of loudspeakers labeled “Made in Vietnam”

Seize a container full of used cabinet loudspeaker and amplifier

600 loudspeakers imported from China but labeled “Made in Vietnam”

600 Chinese loudspeakers labeled “made in Vietnam”

The shipment under Customs declaration No. 102111205230/A11 dated July 12 2018 was detected by the Southern Anti-smuggling Enforcement Unit (Unit 3) under the Anti-smuggling and Investigation Department of the General Department of Vietnam Customs in collaboration with Sai Gon Seaport Customs Branch of Zone 1. On July 12 2018, Tran Vuong Import and Export Co, Ltd., opened a declaration to import the shipment of loudspeakers in combination with sound recording and reproduction and 100% new. The shipment included 601 loudspeakers originating from China valued at US$ 10,000. Through the physical inspection for the shipment, the Customs authority detected that each loudspeaker was packed in one carton box, and these loudspeakers were imported from China but the products were labeled “Made in Vietnam”.

Specifically, inspecting each product, the Customs authority detected that contents “NANOMAX loudspeaker; Son Tung Construction and Electronics Joint Stock Company, headquarters: 83/5 Thoai Ngoc Hau - Hoa Thanh Ward-Tan Phu District-Ho Chi Minh City; Certificate of Trademark Registration No: VN4-0082480, Made in Vietnam" printed on carton boxes containing loudspeakers and microphones, are shown in Vietnamese language. The loudspeakers show the NANOMAX Brand, Model SK-15A2, capacity 300W. Hence, the shipment was falsely declared on goods’ brand and origin (making false Vietnam origin).

It is acknowledged that Tran Vuong Import and Export Co, Ltd., was newly established and put into operation since 12th February under Certificate of Business Registration No. 0314889608 and Mr. Tran Thanh Tung is the Director and legal representative.

Since putting into operation to July 2018, Tran Vuong Company has opened 8 import declarations for items such as Portable loudspeakers and electronic components from China. In which, 4 declarations were declared as loudspeakers and exporter as GUANGZHOU SANSKRIT TRADING COMPANY LIMITED, Address: ROOM 404, #110 XIWAN ROAD, LIWAN DISTRICT- GUANGZHOU- CHINA.

In the document sent to the Customs authority, Mr. Tran Thanh Tung said that in the first half of May 2018, he met and was acquainted with a Chinese man and was introduced by the Chinese man to the company’s portable loudspeaker product. Mr. Tung realized that the product’s price was reasonable and cooperated to import this product to Vietnam for sale. From June 2018 to July 5, 2018, Tran Vuong Import-Export Co, Ltd., imported 3 shipments of Portable loudspeakers without goods’ brand to Vietnam for consumption. All the 3 shipments were sold to the Vietnam market.

Producing counterfeit goods?

The reason for false declaration on goods’ brand and origin, Mr. Tran Thanh Tung said that previously Tran Vuong Import and Export Co, Ltd., signed an Import Export Authorized contract (without number, date, month and year) with Son Tung Electronic Construction Joint Stock Company. Tran Vuong Company only import under this authorized contract. The ordering and printing of packages were requested by Son Tung Electronic Construction Joint Stock Company, Tran Vuong Company knew about this printing before importing the shipment. Tran Vuong Company misunderstood that there were sub-labels printed on the products.

However, several days later Mr. Tung withdrew the Authorized contract which was submitted to Team 3 for the reason that Tran Vuong Company imported the shipment under Customs declaration No. 102111205230/A11 dated July 12, 2018, with the purpose of importing for business of semi-finished products and expected to resell for Son Tung Electronic Construction Joint Stock Company, but due to a mistake in submitting the Authorized contract previously signed with Son Tung Company. In fact, this shipment is imported by Tran Vuong Company for business and is not imported under authorized contract. The shipment was wrongly delivered by a Chinese exporter and the exporter sent the notification about this mistake and proposed to receive the shipment.

However, Mr. Nguyen Van Chuong, Director of Son Tung Electronic Construction Joint Stock Company said that the company did not import any electronic products (Portable loudspeakers, loudspeakers or amplifiers) from foreign countries. For NANOMAX Portable Amp loudspeaker, Son Tung Company procured this product in Vietnam with Vietnam trademark. The company registered to protect this trademark at the National Office of Intellectual Property - Ministry of Science and Technology and was granted trademark registration certificate No. 82480.

Representative of Son Tung Company said that the company ordered to buy the shipment of Portable loudspeakers from Tran Vuong Company and requested this company to label them NANOMAX. But Tran Vuong Company did not understand or mistook and ordered “Made in Vietnam” to be printed, instead of “Made in China” on the package. The representative confirmed that the company signed the authorized contract with Tran Vuong Company to import the shipment under Customs declaration No. 102111205230/ A11 dated July 12 2018. Because when importing this shipment, Tran Vuong Company lacked relevant documents to supplement the Customs dossier. Therefore, Mr. Tung requested Son Tung Company to sign the authorized contract and Son Tung Company agreed to sign this contract to supplement the dossier for shipment imported by Mr. Tran Vuong Company.

According to the leader of Team 3, the import of NANOMAX Portable loudspeakers with forged Vietnam brand and origin by Son Tung Company has signs of violation with Vietnam’s law. Specifically, this violation is stipulated in Article 192 of Criminal code No.100/2015/QH13 dated November 27, 2015, on production and trading of counterfeit goods. Currently, the case is being clarified by the Customs authority.