Prevent businesses from taking advantage of self-declaration to cheat and evade tax

Huu Nghi Customs official (Lang Son Customs Department) inspects a shipment of used gloves of Ngoc Diep Co., Ltd. Photo: Thành Nguyễn

Issue decision to sanction more than VND 26 billion

According to Nguyen Bao Ngoc, Head of Anti-smuggling and handling of violations division, Lang Son Customs Department, to create favourable conditions for firms to carry out procedures in import and export activities, cargo clearance, the Customs authority has been making efforts to apply many solutions and IT to simplify customs procedures. However, many businesses have taken advantage of not having to declare information in advance about imported goods to cheat, smuggle, and transport valuable items into the country.

Businesses also committed acts of importing goods counterfeiting trademarks, intellectual property rights infringement; import goods that are not matched with declared information in terms of type, quantity, value, goods banned from import; intentionally consume goods under customs supervision.

On March 11, 2021, Chi Ma Customs detected and checked two declarations of four containers of Hai Lam Logistics Co., Ltd., (located on the first floor of Hoang Gia apartment, Lac Long Quan street, Kinh Bac ward, Bac Ninh city, Bac Ninh province) registered to carry out procedures for independent transport to ICD Phuc Loc Ninh Binh.

The branch learned that the firm declared 14 items but actually did not have these 14 items in one declaration meanwhile 17 items were not included in the declaration; the other declaration had 13 items but there were no items as declared. The investigation is ongoing.

Also in March 2021, through strict inspection, control and supervision, Huu Nghi Customs Branch (Lang Son Customs Department) revealed Ngoc Diep Co., Ltd. (address in Lang Son city) declared to import nearly 6 tonnes of 100% new gloves for workers in factories, but actually imported used gloves from China.

Huu Nghi Customs Branch determined that the acts of Ngoc Diep Co., Ltd. showed sign of the crime of manufacturing and trading prohibited goods.

Huu Nghi Customs Branch issued a decision to prosecute Ngoc Diep Co., Ltd.

These are just two examples of enterprises that took advantage of transparency in the process of implementing customs procedures and cargo clearance to carry out smuggling, trade fraud with large quantities of goods. The act of importing used goods related to the prevention of the Covid-19 pandemic shows firms are lack of understanding of the law.

Promote key supervision

Vy Cong Tuong, Deputy Director of Lang Son Customs Department said that the situation of smuggling through customs declaration would continue to be complex. In particular, the situation of using sales invoices to circulate goods that are manufactured outside of Vietnam without import origin or taking advantage of postal and express delivery services to bring goods into Vietnam has caused many difficulties for authorities.

To promptly detect and prevent businesses from smuggling and trade fraud through customs declarations, Lang Son Customs has directed border-gate customs units to increase collection of business information.

For Lang Son Customs Department, in the first six months of the year, 701 firms were put into the "Red channel" category by the risk management system of the Customs authority. Based on this result, Lang Son Customs will carry out physical inspection of import and export goods of these firms.

In addition, to prevent fraud from firms passing through Lang Son province, the General Department of Vietnam Customs has increased investment in modern machinery, installed it at the border gate and assigned Lang Son Customs Department to carry out container scanning. In the first 6 months of the year, Lang Son Customs scanned 4,216 vehicles.

To strengthen the management, inspection and control of goods imported and exported through border gates, Lang Son Customs directed border-gate customs units and specialised divisions to strengthen professional measures, focusing on forcing firms, authorised persons, etc. to notify the information about imported goods before carrying out procedures for bringing goods through border gates to customs authorities.

At the same time, Lang Son Customs will promote post-clearance audit. Strengthening customs supervision at inspection locations and goods gathering places; supervise cargo warehouses, promote mobile supervision to prevent smuggling and fraud in declaration of import and export goods.