Preventing fraud in Customs declarations
On averageper month there are 600 enterprises which cancel declarations and 800 enterprises which correct declarations. In the photo: Activity in the Thuy An Customs Branch (Thua Thien Hue Customs Department). |
According to the Risk Management Department, during the past time, in the process of risk analysis and assessment in Customs operations, the specialized risk management general-level force has discovered many cases where enterprises canceled or modified declarations. Many enterprises canceledor modified declarations several times in a certain time period.
The additional declaration cases have been clarified in Circular No. 38/2015/TT-BTC of the Ministry of Finance (MOF), but the fact is that many enterprises take advantage of the additional declaration to avoid diversion to avoid goods inspection for smuggling and trade fraud. During follow-up, most of the goods on declarations of cancellation or correction usually are conditional import for business, with high tax rates, huge turnover, with high possibility of breach.
Aware of the above need, the Risk Management Department actively built and deployed a special project "Risk control for export, import declarations editing" on a national scale.
In localities with a large flow of goods such as Ho Chi Minh City, Hai Phong, Quang Ninh, Lang Son, the unit focused on enterprises and items that are high-risk at taking advantage of declaration cancellation or correction for smuggling and commercial fraud such as paving bricks, wood, and stone powder. At the time of deployment (starting from late February to July 2016), every month, Customs forces discovered 600 enterprises canceling declarations and 800 enterprises correcting declarations. The forces discovered over 200 enterprises taking advantage of the declaration cancellation and correction for smuggling and trade fraud.
Typically, taking advantage of additional declarations forms for fraud in Customs declarations isa number importing Chinese ceramic tiles, enterprises under-reported the number of tiles compared to the actual numberon the initial declaration in the import for consumers type (A11). After declarations were classified for actual inspection of goods, enterprises modified declarations, and increased the number. Specifically, they under-reported the number of tiles compared to the actual import in the initial declaration by type A11, after the declarations were physically checked, companies declared new additional declarations by type H11 (General declaration for container and bill of lading with the original declaration by type A11) for excess goods after inspection, to avoid the handling of violations of Customs and Tax sanction.
To prevent this situation, the Risk Management Department issued a warning and sent to all units of local Customs to make a list of key enterprises to implement risk control measures. On the other hand, the units that also work with Post clearance audit forces to handle and collect taxes, submit into the State budget. At the same time, to enterprises that have signs of violation, the units also transferred the list to specialized anti-smuggling forces to identify the situations, detect, and promptly handling violations.
According to the Risk Management Department, through the Project deployment, the number of canceled or modified declarations has significantly reduced; contributing to raising awareness of enterprises in law observance. Besides, the Risk Management Department has also proposed the MOF amendments to some existing regulations. Specifically, revision of Circular No.38 in the direction, only allow additional declarations before the flow switching point.
In the upcoming time, the Risk Management Department will hold a conference to summarize the evaluation, learned lessons during Project implementation, as well as propose measures to fight and prevent fraud in the Customs declaration process.
Concerning the application of measures to manage canceling declaration enterprises, previously, the General Department of Customs has written Document No.4821 and sent to Customs Departments of provinces and cities. To improve the quality and efficiency of review, management and detection of the list of canceled declarations by enterprises in each area, the General Department of Customs recommended that Customs offices of provinces and cities base on the nationwide list of enterprises having canceled declarations, and directed Customs sub-departments to strictly handle processing declarations that have expired for Customs procedures but have not been canceled as defined and the declarations of goods that are actually cleared and released but have not been updated on the system; and check to clarify the reasons and have remedies for cases of Customs officers handlingCustoms procedures slowly, not on time. The Risk Management Divisions (or units responsible for risk management), monitor, analysis, and set up a list of inspection enhanced criteria to high-risk enterprises taking advantage of registering repeatedly declarations for a shipment, canceling declarations or dealing, avoiding risk assessment and classification of the system. The Customs Department of provinces and cities should regularly check the admission register and Customs procedures of Customs officers to find out, correct and timely handle cases lacking responsibility, not complying with procedures and regulations leading to smuggling, tax evasion or other legal violations during Customs procedures. Also, classify and notify enterprises about the declaration cancellation affects in compliance levels of enterprises; and support and guide enterprises to improve compliance. |
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