Prosecute smuggling case related to 44,000 tonnes of ore of Bao Nguyen Company

VCN- Related to a violation of more than 44,000 tonnes of raw raw bauxite ore of Bao Nguyen Trading Joint Stock Company (Bao Nguyen Company), the Anti-Smuggling and Investigation Department (under the General Department of Vietnam Customs) recentlyissued a decision to prosecute the case for smuggling. The prosecution decision was approved by the Supreme People's Procuracy.
Disbursement of ODA capital reaches 39% at local level Disbursement of ODA capital reaches 39% at local level
Foreign inflows for Vietnam’s real estate bouncing back Foreign inflows for Vietnam’s real estate bouncing back
Bac Ninh Customs processed more than VND 1 million declarations Bac Ninh Customs processed more than VND 1 million declarations
4710-0943-fbbe99210b2e48234228aba5ca8a9bcd
Deputy Director of the Anti-Smuggling and Investigation Department Nguyen Van Lich spoke about the prosecution of the case and violations of Bao Nguyen Company.

Many violations

On December 14, arepresentative of the Anti-Smuggling and Investigation Department spokeabout the case.

Deputy Director of the Anti-Smuggling and Investigation Department Nguyen Van Lich said, pursuant to the provisions of law, the investigation results, and inspection results of authorities, Bao Nguyen Company is identified with theviolations as follows:

Firstly, there is a violation of commodity policy, because the company’s actually exported goods are raw bauxite ore (which is not allowed to be exported) but in the process of customs procedures, the company declared as bauxite concentrate (which can be exported).

The second, the company made a false declaration on goods codes, the actual goods are raw bauxite ore, HS code 2606.00.00.10 and export tax rate of 30%. However, when carrying out export procedures, the firmdeclared goods as bauxite concentrate, HS code 2606.00.00.90, and export tax rate of 20%. The false declaration of HS code led to insufficient tax payable.

Third, there is a violation of false declaration of export quantity. According to the company’s declaration, the quantity of exported goods is 42,000 tonnes but the actual quantity is more than 44,000 tonnes.

“Facing the violations of the company, the Anti-Smuggling and Investigation Department prosecuted the case. The prosecution decision has been approved by the Supreme People's Procuracy,” Lich said.

Prosecute smuggling case related to 44,000 tons of ore of Bao Nguyen Company
Sample of ore including tree roots in the shipment declared as ore concentrate by Bao Nguyen Company.

Falsely declare exported goods

According to the case dossier, on October 17, 2019, Bao Nguyen Company registered the export declaration at Cam Pha Border Gate Customs Branch under QuangNinh Customs Department.

The quantity of declared goods is 42,000 tonnes of bauxite concentrate with an export tax rate of 20%.

However, notingsuspicious signs, the Anti-Smuggling and Investigation Department worked with QuangNinh Customs Department to stop customs clearance for the shipment and clarify whether the goods werebauxite concentrate as declared by the company or not.

The Anti-Smuggling and Investigation Department sent all the samples to Vietnam Institute of Geosciences and Mineral Resources for verification. On September 15, the department worked with Vietnam Institute of Geosciences and Mineral Resources on verification results of these samples. At the working session, Vietnam Institute of Geosciences and Mineral Resources provided information, documents and a basis to conclude the35 samples of bauxite ores are raw ores.

Specifically, Vietnam Institute of Geosciences and Mineral Resources worked with Geological Test and Analyse Centreunder the General Department of Geology and Minerals of Vietnam (Vilas No.032) to analyse samples according to threemethods: Mineral analysis method, Ronghenanalysis method and chemical analysis method.

Analysis under the electron microscope showed the structure of the ore wasstill preserved and the minerals wereoften impregnated and dyed with dense clay and iron hydroxide on the surface.

The results of mineral analysis and Ronghen analysis showed all samples not only containedtypical minerals of bauxite such as diaspor, gipxite but also contain many other minerals with high content, especially the mineral group of clay, quartz, and feldspar.

Chemical analysis results showed the average Al2O3 content was48.7%. This content waslower or equivalent to the average content of the raw bauxite ore of the north of Vietnam as diaspor bauxite of the late Perminan age, which usually reaches 50-61% in the world. This is in accordance with the investment certificate showing quality of raw bauxite ore at the Leo Cao mine of Bao Nguyen Company, when it is unprocessed, it has an AL2O3 content of 48.61-52. 59%.

The samples have tree roots and are in the form of chips and lumps with different sizes from small size such as clay, powder and grit to block of more than 20 cm with clay. The surface of the blocks and chips iscovered with clay minerals.

The Vietnam Institute of Geosciences and Mineral Resources said this is raw bauxite ore.

For test result sheet No. 19V02kk4551 dated October 18, 2019 issued by Vinacontrol which was presented by Bao Nguyen Company during customs procedures, the Anti-Smuggling and Investigation Department said the sample was taken by Bao Nguyen Company without the witness of the Customs authority, so the sampling did not comply with provisions in Clause 1, Article 5 of Circular 41/2012/TT-BCT (amended and supplemented in Clause 3 andArticle 1 of Circular 12/2016/TT-BCT), so it is not valid for carrying out customs procedures for the above exported goods.

With the test result of the export shipment as raw bauxite ore, the shipment of Bao Nguyen Company shall haveHS code 2606.00.00.10 and export tax rate of 30% instead of HS code 2606000090 and anexport tax rate of 20% (payable tax is VND 2,040,948,000) as declared by the company.

Directive No.03/CT-TTg dated March 30, 2015 of the Prime Minister on the enhancement of the effect of the legislation on minerals states “the exportation of raw minerals shall be prohibited”.

Document 2017 issued by the Ministry of Industry (now as the Ministry of Industry and Trade) quoted by Bao Nguyen Company to respond to the Customs authority to distinguish ores and concentrates according to Circular No.02/2006/TT- BC is an invalid document. As per Circular No. 41/2012 / TT-BCT dated December 21, 2012 of the Ministry of Industry and Trade (amended and supplemented in Circular No.12/2016/ TT-BCT dated July 5, 2016), items processed from bauxite oresmust meet the quality standards for aluminum hydroxide - Al (OH) 3 as AL2O3> = 64%; Alumin as AL2O3> = 98%.

The case is being investigated and handled by competent authorities.

By Thai Binh/Ngoc Loan

Related News

Thousands of diamonds seized in airport smuggling bust

Thousands of diamonds seized in airport smuggling bust

VCN - After proactively coordinating with the Economic Police Division, Ho Chi Minh City Police to detect and arrest a case of smuggling more than 700 diamonds transported by an Indian man, Tan Son Nhat International Airport Customs Branch, Ho Chi Minh City Customs Department continued to detect and arrest another smuggling case with more than 300 diamonds.
Establish nearly 170 bogus enterprises to purchase illegal invoice

Establish nearly 170 bogus enterprises to purchase illegal invoice

VCN - Hoang Phi has established 168 bogus enterprises to commit the act of purchasing illegal invoice in over 4 years.
Foreigner caught smuggling 7 gold pieces at Noi Bai Airport

Foreigner caught smuggling 7 gold pieces at Noi Bai Airport

VCN - On October 18, Noi Bai International Airport Customs Branch (Hanoi Customs Department) discovered a male foreigner, hiding 7 pieces of metal weighing about 7kg, suspected to be gold, upon entering the country.
Ho Chi Minh City Customs and Border Guard join hands to prevent dozens of smuggling cases

Ho Chi Minh City Customs and Border Guard join hands to prevent dozens of smuggling cases

VCN - With efforts to develop and implement a plan to combat smuggling, trade fraud and illegal transportation of goods, Ho Chi Minh City Customs and Border Guard forces have prevented dozens of violations, many of which have been criminally prosecuted.

Latest News

Kien Giang Customs’ revenue reaches over 190% of target

Kien Giang Customs’ revenue reaches over 190% of target

VCN – As of October 15, Kien Giang Customs Department collected VND 116.34 billion, reaching 193.89% of the target, the department reports.
Quang Ninh Customs seeks solutions to promote import and export

Quang Ninh Customs seeks solutions to promote import and export

VCN - Quang Ninh Customs Department has made efforts to synchronously deploy solutions to accompany, support and resolve difficulties for businesses, contributing to improving import and export activities through the area.
Businesses get a fair hearing under Customs

Businesses get a fair hearing under Customs' new 'three no' rule

VCN - The General Department of Vietnam Customs requires units to implement the 3 no principles: "don't say no, don't say difficult, and don't say yes but don't do it" when businesses have recommendations and proposals.
Khanh Hoa Customs reaches revenue target 1 quarter early

Khanh Hoa Customs reaches revenue target 1 quarter early

VCN - Many key import items increased sharply, along with efforts in trade facilitation, tax debt collection, so in just 9 months of 2024, Khanh Hoa Customs Department completed the state budget revenue target.

More News

WCO Permanent Technical Committee Meeting in Belgium: The managerial mark of the Vietnamese customs representative

WCO Permanent Technical Committee Meeting in Belgium: The managerial mark of the Vietnamese customs representative

VCN - For 3 days (from 23-25/10/2024), at the headquarters of the World Customs Organization (WCO) in Brussels (Belgium), the 245th/246th meeting of the Permanent Technical Committee (PTC) was successfully held under the chairmanship of Ms. Nguyen Thi Vinh Hoai, Counselor, Embassy of Vietnam in Belgium, representative of Vietnam Customs, Chairwoman of PTC.
Revise regulations on implementing administrative procedures under the National Single Window

Revise regulations on implementing administrative procedures under the National Single Window

VCN - On October 29, 2024, Deputy Director General of the General Department of Vietnam Customs Au Anh Tuan chaired a meeting to discuss, exchange and develop a plan to amend Decree 85/2019/ND-CP regulating the implementation of administrative procedures under the National Single Window, ASEAN Single Window and specialized inspection of imports and exports.
Launch of the “Proud of 80 years of construction and development of Vietnam Customs” contest

Launch of the “Proud of 80 years of construction and development of Vietnam Customs” contest

VCN - Towards the 80th anniversary of Vietnam Customs' tradition (September 10, 1945 - September 10, 2025), the General Department of Vietnam Customs (GDVC) launches the “Proud of 80 years of construction and development of Vietnam Customs” contest.
Cat Lai Port sees over 1,000 export shipments cleared by customs each day

Cat Lai Port sees over 1,000 export shipments cleared by customs each day

VCN - The volume of goods exported through Cat Lai port is showing signs of increasing sharply in the last months of 2024.
Quang Ninh Customs: Innovation in developing Customs-Business partnership

Quang Ninh Customs: Innovation in developing Customs-Business partnership

VCN - Quang Ninh Customs Department is determined to improve the quality of Customs-Business partnership, with practical actions in supporting and accompanying businesses.
Nine Customs brokers may be suspended from operations

Nine Customs brokers may be suspended from operations

VCN – HCM City Customs Department has announced that nine HCM City-based customs brokers may be suspended from operations because they have not reported their operations for three consecutive periods.
HCM City Customs held a dialogue and supported on training FDI enterprises

HCM City Customs held a dialogue and supported on training FDI enterprises

VCN - In order to improve the effectiveness of cooperation and support for foreign direct investment (FDI) enterprises, the HCM City Customs Department has proactively coordinated with business associations to organize dialogue conferences and in-depth training programs on import-export regulations, customs procedures, and solutions to help enterprises overcome legal challenges during their operations in Vietnam.
Customs handles a daily trade volume of over US$2 billion

Customs handles a daily trade volume of over US$2 billion

VCN - With the increasing scale of import and export turnover, currently the Customs sector handles procedures for import and export goods with a turnover of more than US$2 billion per day on average.
Digital transformation in Customs sector is a revolution

Digital transformation in Customs sector is a revolution

VCN - This content was emphasized by Deputy Director General Tran Duc Hung at the Workshop introducing the requirements of technical process serving the construction of the Information Technology (IT) System to implement Digital Customs organized by the General Department of Customs on October 24, 2024.
Read More

Your care

Latest Most read
Kien Giang Customs’ revenue reaches over 190% of target

Kien Giang Customs’ revenue reaches over 190% of target

VCN - As of October 15, Kien Giang Customs Department processes customs procedures with total import and export turnover of over US$299 million.
Quang Ninh Customs seeks solutions to promote import and export

Quang Ninh Customs seeks solutions to promote import and export

Quang Ninh Customs Department has made efforts to synchronously deploy solutions to accompany, support and resolve difficulties for businesses, contributing to improving import and export activities through the area.
Businesses get a fair hearing under Customs

Businesses get a fair hearing under Customs' new 'three no' rule

The General Department of Vietnam Customs requires units to implement the 3 no principles: "don't say no, don't say difficult, and don't say yes but don't do it" when businesses have recommendations.
Khanh Hoa Customs reaches revenue target 1 quarter early

Khanh Hoa Customs reaches revenue target 1 quarter early

VCN - Many key import items increased sharply, along with efforts in trade facilitation, tax debt collection, so in just 9 months of 2024, Khanh Hoa Customs Department completed the state budget revenue target.
WCO Permanent Technical Committee Meeting in Belgium: The managerial mark of the Vietnamese customs representative

WCO Permanent Technical Committee Meeting in Belgium: The managerial mark of the Vietnamese customs representative

The 245th/246th meeting of the PTC was successfully held under the chairmanship of Ms. Nguyen Thi Vinh Hoai, Counselor, Embassy of Vietnam in Belgium, representative of Vietnam Customs
Mobile Version