Proposal on allowing customs agency to prosecute crime of "tax evasion"

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Fake Topper shoes made in Vietnam seized by Hai Phong Customs in 2019. Photo: T.B.

Make a change

According to Hai Phong Customs, more than twoyears’ enforcement of the Criminal Procedure Code and the Law on Organization of Criminal Investigation Bodies (2018 and 2019) has contributed to a change in handling cases with signs of criminal violations.

Notably, the prosecution and investigation of criminal cases within their jurisdiction was discovered by the Customs agency.

According to Hai Phong Customs, due to the impact of trade wars between big countries, some businesses have moved to Vietnam to produce goods for export to third countries.

However, in this process, they have taken advantage to bring outdated production lines and machinery into Vietnam, violatingthe provisions of Vietnamese law (Decision 18/2019 / QD-TTg of the Prime Minister; Circular 23/2015 / TT-BKHCN). On the other hand, domestic consumers also have great demand for second-hand Japanese household electronic appliances so smugglers seek to bring these goods to Vietnam.

In recent years, Hai Phong Customs has discovered and seized tens of thousands of kilograms of scrap and tens of thousands of second-hand clothing products and many second-hand electric appliances, watches and metals.

After discovering and conducting investigations according to the provisions of the Criminal Procedure Code, Hai Phong Customs took testimony of related suspects; worked with units granting import permits of conditional goods; took samples for verification. Thereby, the unit prosecuted 11 criminal cases (five cases in 2018 and six cases in 2019) related to the crimes of "smuggling" and "illegal cross-border transportation of goods and currencies".

The second point regarding the results of investigation, verification and handling of cases with criminal signs detected by the customs agency is that violationswere transferred to other agencies for prosecution such as "hoarding and transportation of banned goods"; "production and trade in fake goods”; and"violation of regulations on wildlife protection". Seized goods were ivory, pangolin scales, precious timber, and fake goods of Vietnam origin.

In 2018, Hai Phong Customs Department transferred two cases to competent authorities for prosecution. In 2019, six cases in which four cases were prosecuted.

In addition to the above two points, other provisions such as receiving, settling information and denouncement of crimes; receiving and settling complaints in criminal proceedings by the customs agency; management, handling and coordination in handling of material evidence have been focused and also made certain changes.

Fake Topper shoes made in Vietnam seized by Hai Phong Customs in 2019. Photo: T.B.

More competences added

Despite certain results, from the grassroots practice, Hai Phong Customs Department proposed to authorities to amend and supplement regulations on investigation activities in criminal proceedings of the Customs agency.

Specifically, the Customs agency is added with competent forces on prosecution of crime of "tax evasion". Hai Phong Customs cited: In fact, there are many cases showing signs of tax evasion in the field of import and export but the Customs agency has no competence to prosecute. In case of detecting false declarations of the quantity and type of goods while carrying out import and export procedures, leading to insufficient payable tax amounts, the customs agency must coordinate with the investigating agency and then propose the prosecution, which is inappropriate.

Regarding preventive and coercive measures, the Criminal Procedure Code does not specify that Customs agency has the right to implement these measures (except for the case of decisions on escort), so the Customs agency fails to enforce the order on suspending exit for subjects related to those cases. Therefore, Hai Phong Customs proposed to add competences to the Customs agency to carry out preventive and coercive measures.

Regarding investigating measures and activities such as summoning suspects; summoning witnesses; taking testimonies of victims and persons concerned, the customs agency only have "invitation form” and no "summon form" to suspects, so the suspects often avoid anddo not cooperate, so Hai Phong Customs proposes to supplement the Customs agency to use the "summon" form.