Prevent Chinese enterprises from cheating Vietnamese goods to export to the US

VCN - Information given by the leader of Post-Clearance Inspection Department (General Department of Customs) at apress conference about results and solutions to fight against fraud originating exports, issued by the General Department of Customsheld on themorning of 27 December.
tin nhap 20191231152522 Vietnamese goods enjoy market share in 200 countries worldwide
tin nhap 20191231152522 Vietnamese goods most sued by the US for trade remedies
tin nhap 20191231152522 Concerns about regulations on "Made in Vietnam" goods
tin nhap 20191231152522
The Director of the Department of Information Technology at the press conference. Photo: T. Binh.

Not to be taken advantage of Made in Vietnam

Speakingat the press conference, Director of the Post-Clearance Inspection Department Nguyen Tien Loc said: Recently, there has been an issue of abusing Vietnamese origin to enjoy preferential treatment for export goods of Vietnam to the countries that sign the agreement.

“In the past, Customs authorities mainly focused on checking and preventing fraud of origin for imported goods in customs clearance as well as after customs clearance. However, from mid-2018 until now, the trade war between the US and China occurred. In which, the US is imposing high taxes on many goods originating from China, so the Customs agency has focused on studying the methods of risk of origin fraud, taking Vietnam's origin for exporting goods into the US and EU market,” Director Nguyen Tien Loc said.

From October 8, 2019, the Department of Economic Affairs proactively researched and set up a special working group directly headed by the Director to focus on researching, checking and clarifying these doubts and frauds.

By studying the rules of origin and the conditions for determining goods originating in Vietnam, studying import and export activities of a number of enterprises, firstly, the Vietnam Customs Department will focus on Vietnamese goods for exporting to the US and predict risks in mid-2018 when the US-China trade war occurred, the US government imposed tariffs on goods originating from China.

Through the collection and analysis of information, the Customs authorities discovered a number of enterprises with a sharp increase in export turnover to the US market and preliminary statistics of 19 groups of products at risk of origin fraud. From there, make a list of businesses with risks of fraud and counterfeiting of goods nationwide to conduct inspections.

Fraudulent bicycles of Vietnamese origin were discovered and seized by the Customs. Photo: Thu Diu.

Importing 100% Chinese components but writing Vietnamese origin

Based on that, the Department of Customs inspected nine enterprises and directed nine local customs departments to check 24 enterprises.

According to Deputy Director of the Department of Economic Affairs, Tran ManhCuong, representative of the Department of Economic Affairs, based on the synthesis of 19 groups of high-risk and sudden-rising commodities into the US and EU markets, the Department of Customs has conducted checks onnine businesses. Ofwhich they detected fraudulent acts to enjoy Vietnamese origin for goods exported to the US by four enterprises (three enterprises assembling bicycles and electric bicycles and one enterprise assembling wood products).

A typical case is Excel Bicycle Co., Ltd., based in Binh Duong.

This is a company with 100% investment from China, established in 2018, assembling bicycles and electric bicycles for export.

Notably, during the inspection process, the Customs authorities discovered that the company imported 100% bicycles, electric bicycles andcomponents from China to Vietnam for simple assembly at the final stage into bicycles, electric bicycles and electric scooters.

Meanwhile, components imported to Vietnam do not undergo any other manufacturing processes and export from Vietnam to the United States that originating from Vietnam to enjoy preferential import tax imposed by the US government.

Working with Customs, Excel Bicycle Co., Ltd. admitted the violations.

On that basis, the General Department of Customs has issued a decision to sanction administrative violations in the form of fines and additional penalties for confiscation of all material evidences being finished products, semi-finished products and spare parts stored atthe Company's warehouse.

tin nhap 20191231152522 Vietnamese enterprises face difficulties taking goods to supermarkets - Part 1: Vietnamese products on the narrow corner of supermarket shelf

VCN - Although Vietnamese goods are increasingly being chosen by Vietnamese people, there are still many obstacles to ...

During the inspection process, Customs also discovered that the company had implemented fraudulent procedures to obtain the certificate of Vietnamese origin (C/O Form B) from the competent authority (VCCI Ho Chi Minh City Branch). On 11 November 2019, the General Department of Customs has sent a dispatch to VCCI Ho Chi Minh City requesting to revoke this certificate of origin and VCCI has withdrawn.

By Thai Binh/ HuuTuc

Related News

Binh Dinh Customs facilitate enterprise exporting wood

Binh Dinh Customs facilitate enterprise exporting wood

VCN - More than 100 enterprises carrying out procedures for exporting wood through Quy Nhon port have been supported by Binh Dinh Customs Department to facilitate. This has been recognized and highly appreciated by enterprises.
Vietnam

Vietnam's economy remains growth momentum

VCN- According to Mr. Nguyen Ba Hung, Chief Economist of the Asian Development Bank (ADB), public investment will play a key role in economic recovery and growth in 2024. Fiscal measures to support growth and public investment are key policy solutions to stimulate growth year- end months.
Linkage - the "key" to sustainable development of agricultural value chains

Linkage - the "key" to sustainable development of agricultural value chains

VCN - Promoting sustainable and effective development of agricultural value chains is a core factor in restructuring Vietnam's agricultural sector and the key to optimize the value of Vietnam's agricultural exports.
Ready to export fresh coconut to the Chinese market

Ready to export fresh coconut to the Chinese market

VCN - It is expected that from September 11 to 12, 2024, China will conduct online checks on growing area codes and packaging facilities to complete export registration. This inspection by China of fresh Vietnamese coconuts is not only a challenge but also a great opportunity for cooperatives, businesses and farmers to improve production capacity and ensure the quality of export products.

Latest News

Vietnam and China promote Customs cooperation

Vietnam and China promote Customs cooperation

VCN - The representative of Vietnam Customs and the Ambassador Extraordinary and Plenipotentiary of the People's Republic of China to Vietnam exchanged the Action Plan between the General Department of Vietnam Customs (GDVC), the Ministry of Finance of the Socialist Republic of Vietnam and the General Administration of Customs of the People's Republic of China (GACC) on the Mutual Recognition Agreement on Authorized Economic Operator of Vietnam Customs and the Enterprise Credit Management Program of China Customs, on October 13, 2024, at the Government headquarters.
Ha Tinh Customs faces many difficulties in budget collection

Ha Tinh Customs faces many difficulties in budget collection

VCN - According to Ha Tinh Customs Department, from May 2024, due to the impact of market consumption, output products of many enterprises have been in stock, leading to enterprises having to cut down on the import of input materials. This has affected the unit's revenue.
Customs sector proactively manages cross-border e-commerce

Customs sector proactively manages cross-border e-commerce

VCN - E-commerce is growing strongly, but poses many challenges, especially the control of imported and exported goods across borders.
Customs sector

Customs sector's budget revenue in September continues to decline

VCN - In September 2024, state revenue from import-export activities reached VND 31,126 billion, down 12.4% compared to August 2024.

More News

Solutions for developing customs broker agents in the new context

Solutions for developing customs broker agents in the new context

VCN - Customs broker agents (CBA) are performing well as a bridge between the Customs authority and enterprises, however, many problems still arise during their operations.
Key takeaways from supporting business compliance

Key takeaways from supporting business compliance

VCN - Some local customs units have closely coordinated with warehouse and port businesses to notify member businesses to support earlier delivery and faster clearance of goods.
Ha Nam Ninh Customs accompanies typical enterprises of Ha Nam, Nam Dinh and Ninh Binh provinces

Ha Nam Ninh Customs accompanies typical enterprises of Ha Nam, Nam Dinh and Ninh Binh provinces

VCN - On the occasion of Vietnam Entrepreneurs Day, on October 9, in Ninh Binh City, Ha Nam Ninh Customs Department held a conference to meet, congratulate and honor typical entrepreneurs and enterprises representing nearly 1,000 enterprises regularly carrying out customs procedures in the three provinces of Ninh Binh, Ha Nam and Nam Dinh.
Steering Team for developing technical processes established at Long Thanh International Airport

Steering Team for developing technical processes established at Long Thanh International Airport

VCN - The General Department of Vietnam Customs (GDVC) has just issued a Decision to establish a Steering Team for developing technical processes at Long Thanh International Airport, headed by Deputy Director General Au Anh Tuan.
Customs supports compliant businesses to improve investment environment

Customs supports compliant businesses to improve investment environment

VCN - When participating in the Pilot Program to support and encourage enterprises to voluntarily comply with Customs law, enterprises will become more professional and proactive, thereby enhancing their image and position, expanding partners, markets and making production and business activities more favorable.
Businesses reduce costs by complying with customs laws

Businesses reduce costs by complying with customs laws

VCN - Customs authorities assess enterprises with good compliance levels, thereby reducing the implementation work of Customs authorities and devoting more resources to manage enterprises that are assessed as having poor compliance or not complying with the law.
Design concept of Customs headquarters at Long Thanh airport

Design concept of Customs headquarters at Long Thanh airport

VCN - The design concept of the Customs headquarters at Long Thanh International Airport evokes the image of an airplane associated with the control characteristics of the Customs.
Enterprises should proactively comply with customs laws

Enterprises should proactively comply with customs laws

VCN - At the online talk show with the topic "Enterprises voluntarily comply with customs laws: Perspectives from both sides", Mr. Duong Quoc Phi, Head of Import-Export Division of Vietnam Precision Industrial No. 1 Co., Ltd, said that to comply with customs laws, enterprises themselves must be proactive in complying with the law, which will bring benefits to them.
Maximum effort for Customs headquarters project at Long Thanh airport

Maximum effort for Customs headquarters project at Long Thanh airport

VCN - The fact that Long Thanh International Airport project is accelerating its construction progress requires the implementation of the customs headquarters project here to be implemented more quickly to catch up with the airport's operational progress in early 2026. The General Department of Customs and its departments and bureaus are urgently implementing work contents to ensure the project to be completed in time with the airport's progress.
Read More

Your care

Latest Most read
Vietnam and China promote Customs cooperation

Vietnam and China promote Customs cooperation

VCN - After the talks, Prime Minister Pham Minh Chinh and Chinese Premier Li Qiang witnessed the handover ceremony of cooperation documents between the two countries.
Ha Tinh Customs faces many difficulties in budget collection

Ha Tinh Customs faces many difficulties in budget collection

VCN - According to Ha Tinh Customs Department, from May 2024, due to the impact of market consumption, output products of many enterprises have been in stock, leading to enterprises having to cut down on the import of input materials. This has affected th
Binh Dinh Customs facilitate enterprise exporting wood

Binh Dinh Customs facilitate enterprise exporting wood

More than 100 enterprises carrying out procedures for exporting wood through Quy Nhon port have been supported by Binh Dinh Customs Department to facilitate
Customs sector proactively manages cross-border e-commerce

Customs sector proactively manages cross-border e-commerce

VCN - Along with that, domestic consumers also have access to more diverse and abundant products from foreign markets.
Customs sector

Customs sector's budget revenue in September continues to decline

In September 2024, state budget revenue from import-export activities reached VND 31,126 billion, down 12.4% compared to August 2024.
Mobile Version