Post-clearance audit as key solution to combat revenue loss of HCM City Customs Department

	The Post-Clearance Audit Department accounts for 90% of revenue collection of the entire unit
	HCM City: More than half of post-clearance audit cases related to export processing and production
	Which case has not been inspected after customs clearance?

Officers of 1st Zone Sai Gon Seaport Customs Branch inspect imported goods. Photo: T.H

Implementing planned audit

Under the authorization of the Director of the HCM City Customs Department, the Manager of the Post Clearance Audit Customs Branch Nguyen Duc Khanh has issued a decision to impose an import duty of over VND45.3 billion on paper products under 81 declarations in five years of M.K.L. Trading and Manufacturing Company Limited.

Manager Nguyen Duc Khanh said that through the audit of Ivory paper product imported by M.K.L Trading and Manufacturing Co., Ltd, the branch detected that the company failed to declare an accurate description of the product, leading to inaccurate declaration for tax calculation, and failed to declare contents related to tax liability determination.

On June 27, HCM City Customs Department issued a decision to impose a tax on imported paper products with a total amount of VND45.3 billion.

This is one of dozens of audits performed by the branch from the early year to the current date. The branch collected information to conduct the planned post clearance for dozens of enterprises such as: inspecting codes of the imported truck and trailer tires for hundreds of businesses; checking the value, tax rate, and determination of the total value of natural resources for 51% of exported mineral products of over 100 enterprises; checking the preferential policies for equipment for Covid-19 pandemic prevention of 15 enterprises; checking imported sugar products, and export processing and manufacturing for 22 enterprises.

In addition, the branch has made plans for post-clearance audit for the following topics: checking the value of massage chairs; checking the value of exported veneer wood products; checking anti-dumping tax on imported Sortbitol for over 100 enterprises.

The branch inspected the N.V Import-Export Trading Broker Joint Stock Company. The working team made a record of violation for “using goods subject to tax-exempt for improper purposes but failing to declare the change of purpose to the Customs”. At the same time, the branch imposed tax arrears on cashew products imported for export processing and production with a total tax amount of over VND19 billion.

Currently, the branch has implemented specialized inspection for two companies importing cars of less than 9 seats that are implemented under-value declaration. This is the first time the case that conducted specialized inspection by the post-clearance audit branch, so the performance and coordination between the inspection force and the post-clearance audit force have not yet been instructed, leading to difficulties for the branch in enforcement.

The branch has collected and analyzed information about suspected enterprises for imported salt products; built a post-clearance audit plan for 21 enterprises on the list of inspection and assessment of legal compliance in 2023 under Decision No. 2608/QD-HQTPHCM dated December 23, 2022, of the HCM City Customs Department.

Increasing revenue of over VND74 billion

In the first half of the year, the branch proposed to collect information for 369 cases; conducted about 100 post-clearance audits; completed the audit, and issued decisions on imposing a tax for 74 cases with an amount of over VND74 billion.

The post-clearance audit has been paid attention to by customs branches at border gates and outside-border gates. Notably, the Investment/ Processing Customs Branch has implemented 125 post-clearance audits with a total amount of imposed tax of over VND 3.3 billion. 1st Zone Seaport Customs Branch conducted 59 post-clearance audits with a total amount of VND1.6 billion.

The positive results from the post-clearance audit not only increase the State revenue by tens of billions but also create a transparent business environment for businesses. To obtain these results, the branch has implemented effective solutions. For example, the branch has followed the plans of the Customs sectors and HCM City Customs Department and developed plans to implement at the branch to achieve the highest efficiency and comply with regulations while facilitating enterprises in import and export activities.

The branch has used resources and accelerated performance to complete the revenue in 2023; implemented solutions to collect revenue and tax debts. It has also actively collected and analyzed information, determined goods' origin, and prevented frauds in goods' origin, labeling, and infringing intellectual property rights.

The branch has handled violations in accordance with the law and urged enterprises to pay taxes. It has focused on detecting obstacles in customs clearance and loopholes of policies to propose to handle in a timely fashion, determined violations, and implemented risk management to conduct post-clearance audits for export processing and manufacturing enterprises.

According to the branch, the post-clearance audit has also faced difficulties. Some enterprises have suffered from difficulties in operation so when the Customs performed the post-clearance audit, these enterprises have not coordinated with the Customs and failed to comply with decisions on tax collection, leading to tax debts and delays in tax payment.

Currently, many enterprises have dissolved or suspended their operation at the registered business address.

To achieve high results and prevent revenue loss, the Post-Clearance Audit Department continues to collect information and conduct the audit.