Pterocarpus erinaceus "disguised" as Chinese goods

VCN - After months of investigation, in September 2021, the Anti-Smuggling and Investigation Department (General Department of Customs) handled a series of large-scale transnational smuggling cases with sophisticated and complex circumstances.
Smuggled precious wood shipment seized by Customs at La Lay Border Gate Smuggled precious wood shipment seized by Customs at La Lay Border Gate
Hai Phong Customs prosecutes smuggling case of red sandalwood Hai Phong Customs prosecutes smuggling case of red sandalwood
Fifty containers of imported wood inspected Fifty containers of imported wood inspected
50 containers of timber are inspected at a port. Photo: T.H
50 containers of timber are inspected at a port. Photo: T.H


Customs News will publish a series of articles titled "Customs investigates and prosecutes many large-scale smuggling cases", to partly reflect the difficulties in the fight against smuggling and proactiveness and determination of the Customs force against such crimes.

On September 5, 2021, the Anti-Smuggling and Investigation Department issued decision 04/QD-DTCBL to prosecute the crime of smuggling in Ho Chi Minh City on violations of export activities of the Inbe Asia Limited (address: 51 Nguyen Xi, Ward 26, Binh Thanh District, HCMC).

How are hundreds of cubic meters of timber illegally imported?

Through investigation, the Southern Anti-Smuggling Enforcement Team (Team 3, the Anti-Smuggling and Investigation Department) verified a shipment of 50 containers of timber in two declarations, imported by the Inbe Asia Co., Ltd., on June 3, 2019 at Saigon port area 1 Customs Branch (HCMC Customs Department).

The goods are declared as Afzeiia xylocarpa, boxed–sawn, unprocessed, 3.6m-5.8m in length and 19cm-36cm in width, 16cm-28cm in height, 100% new and originated from China and not on the list of management under CITES.

Customs stopped clearance and conducted a physical inspection. The company’s representative did not come to carry out customs clearance procedures, showing signs of evasion. After that, Team 3 issued a decision to search vehicles and goods in coordination with other competent forces.

According to the investigation and verification by the Research Institute of Forest Industry under the Vietnamese Academy of Forest Sciences, the above timber is Pterocarpus erinaceus measuring 850.681 m3 subject to import under the CITES management agency of the exporting and importing countries.

According to the valuation certificate of BTCVALUE Valuation Joint Stock Company, the infringing shipment is valued at more than VND15.6 billion.

Accordingly, the teams expanded the investigation to 50 containers of imported timber of Inbe Asia Co., Ltd.

The amount of tax evasion is nearly VND1 billion

On May 5, 2021, the Anti-Smuggling and Investigation Department decided to settle the case according to criminal proceedings and seize the evidence.

Based on the results of the investigation, verification and the results of the meeting to evaluate evidence between the Anti-Smuggling and Investigation Department and Department 3 (Supreme People's Procuracy), 50 containers of timber imported by Inbe Asia Co., Ltd. Chau is Pterocarpus erinaceus weighing 850.681 m3 were imported into Vietnam without a license. The infringing goods are valued at VND15.6 billion with missing tax of more than VND940 million.

The suspects used the legal entity of Inbe Asia Co., Ltd. to intentionally declare the wrong name of goods to import Pterocarpus erinaceus, which is a type of wood that must have a license from the CITES management agency and the value of infringing goods is over VND100 million (actually the shipment is valued at VND15.6 billion). The act constitutes the crime of smuggling, specified in Article 188 of the Penal Code 2015 revised in 2017.

At the same time, on September 5, 2021, the Anti-Smuggling and Investigation Department issued a decision to prosecute criminal case 04/QD-DTCBL on the crime of smuggling as mentioned above and issued Official Letter 863/ĐTCBL-D7 requesting the Supreme People's Procuracy to issue a decision to transfer the criminal case on smuggling to the Investigation Police Agency (Ho Chi Minh City Police).

On September 8, 2021, the Anti-Smuggling Investigation Department received Decision 39/QD-VKSTC-V3 dated September 7, 2021 of the Supreme People's Procuracy on transferring the criminal case to the Investigation Police Agency (PC03, Ho Chi Minh City Police) to expand the investigation.

Based on the documents in the case, the Anti-Smuggling and Investigation Department has expanded the investigation of involved persons.

Mr. Nguyen Trung Hieu (who was introduced by Inbe Asia Co., Ltd to the Saigon port area 1 Customs Branch to check the goods before opening the declaration). According to investigation, Mr. Nguyen Trung Hieu, living in Dak Nong, is the representative of Inbe Asia Co., Ltd., on May 21, 2019 watched the goods before opening the import declaration. According to Dak Nong Police, the identity card bearing the name Nguyen Trung Hieu is real. But verifying his permanent residence, Nguyen Trung Hieu does not currently live at the locality and the competent forces did not know is where he is living and working.

For Do Thai Toan, Director, legal representative of Inbe Asia Co., Ltd (at the time of violation), Dong Nai Police determined that the identity card bearing the name Do Thai Toan is real. However, verifying his permanent address, Do Thai Toan does not currently living at the registered address and the authorities do not know what Mr. Toan is doing or where he is living.

By Thai Binh/ Huyen Trang

Related News

Consulting on customs control for e-commerce imports and exports

Consulting on customs control for e-commerce imports and exports

VCN- The General Department of Vietnam Customs (GDVC) consults widely on the draft Decree regulating customs control for e-commerce imports and exports.
Customs administrations coordinate to seize nearly 20,000 endangered wildlife

Customs administrations coordinate to seize nearly 20,000 endangered wildlife

VCN – About 20,000 live animals, all endangered or protected species, have been seized in a global operation against wildlife and forestry trafficking networks, jointly coordinated by the World Customs Organization (WCO) and INTERPOL.
Hai Phong Customs sets out 15 tasks to achieve the revenue target of VND 72,000 billion

Hai Phong Customs sets out 15 tasks to achieve the revenue target of VND 72,000 billion

VCN – Hai Phong Customs Department has issued Directive No. 624/CT-HQHP dated January 21, 2025 on drastically implementing solutions to facilitate trade, improve the effectiveness of state management, and strive to achieve the revenue target of 2025.
GDVC sets goal of widely disseminating Customs policies

GDVC sets goal of widely disseminating Customs policies

VCN – The General Department of Vietnam Customs (GDVC) has issued a plan to disseminate and educate the law; and support and provide information in 2025.

Latest News

An Giang Customs Department escalates multiple tax fraud cases to law enforcement

An Giang Customs Department escalates multiple tax fraud cases to law enforcement

VCN - Many cases of customs law violations and tax fraud discovered by An Giang Customs Department have been transferred to the police for investigation according to their authority.
Customs crackdown nets 1,430 violations in first month

Customs crackdown nets 1,430 violations in first month

VCN - In January 2025, the number of violations detected, seized, and processed by customs authorities increased by 9.6%, and the value of the illicit goods involved increased by 19.4% compared to the same period in 2024.
Remodel cars to hide drugs

Remodel cars to hide drugs

VCN – Criminals have hiden drugs inside people, vehicles and goods, especially using the method of transporting consigned goods, causing difficulties for the Customs in inspection and control.
Illegal transportation of gemstones by air to handled

Illegal transportation of gemstones by air to handled

VCN – If the luggage of people on exit or entry exceeds the duty-free baggage allowance gone through the customs control area without declaring to customs are considered illegal exports and imports and will be handled under the provisions of law.

More News

Routine security screening uncovers hidden weapons at point of entry

Routine security screening uncovers hidden weapons at point of entry

VCN - During routine X-ray screenings and inspections, the La Lay Border Gate Customs Branch (Quang Tri Customs Department) collaborated with other agencies to apprehend an individual attempting to smuggle two military-grade firearms and 92 rounds of ammunition across the border.
Strictly handling illegal transportation of gemstones by air

Strictly handling illegal transportation of gemstones by air

VCN – Any commodity carried by inbound, outbound persons which exceeds the duty-free limit but still goes through the customs checkpoint without completing the customs declaration shall be considered as illegal imports or exports and shall be handled in accordance with the laws.
Nearly 18,000 cases of smuggling, trade fraud and counterfeit goods detected

Nearly 18,000 cases of smuggling, trade fraud and counterfeit goods detected

The total estimated value of confiscated goods exceeded VNĐ31.35 trillion (US$1.23 billion), marking a 12.5 per cent increase in cases and a 151.3 per cent surge in the value compared to the previous year.
Customs seizes smuggled goods and infringing products worth VND31,000 billion

Customs seizes smuggled goods and infringing products worth VND31,000 billion

VCN – Smugglers have taken advantage business models on e-commerce platforms, social networks, and postal and express delivery activities to use sophisticated tricks for smuggling and trafficking counterfeit goods.
India launches anti-dumping investigation on nylon yarn imports from Việt Nam

India launches anti-dumping investigation on nylon yarn imports from Việt Nam

The Trade Remedies Authority of Việt Nam recommends businesses involved in the production of the goods carefully review the investigation notice and comply with Indian authorities.
Hanoi Customs: 92% of post-clearance audits reveal violations

Hanoi Customs: 92% of post-clearance audits reveal violations

VCN - According to Hanoi Customs, this year’s post-clearance audit plans focus on high-risk areas with signs of violations.
Noi Bai International Border Gate Customs Sub-department: "Blocking" drugs via air

Noi Bai International Border Gate Customs Sub-department: "Blocking" drugs via air

VCN - Along with the recovery and growth of passenger and cargo flights, illegal drug transportation by air is on the rise with increasingly sophisticated and complex tricks and constantly changing methods of operation to deceive Customs and other authorities.
Drug Crime Investigation Police Force cracks down on nearly 29,000 cases

Drug Crime Investigation Police Force cracks down on nearly 29,000 cases

VCN - This is the result of the fight against drug crimes, recently reported by the Department of Drug Crime Investigation (C04, Ministry of Public Security).
Hai Phong Customs busts illegal import of 600 m3 of precious wood

Hai Phong Customs busts illegal import of 600 m3 of precious wood

VCN – About 600 m3 of illegally imported African teak wood, with an estimated total value of tens of billions of VND, has been seized by Hai Phong Customs Department.
Read More

Your care

Latest Most read
An Giang Customs Department escalates multiple tax fraud cases to law enforcement

An Giang Customs Department escalates multiple tax fraud cases to law enforcement

Many cases of customs law violations and tax fraud discovered by An Giang Customs Department have been transferred to the police for investigation according to their authority.
Customs crackdown nets 1,430 violations in first month

Customs crackdown nets 1,430 violations in first month

In January 2025, the number of violations detected, seized, and processed by customs authorities increased by 9.6%, and the value of the illicit goods involved increased by 19.4%
Customs administrations coordinate to seize nearly 20,000 endangered wildlife

Customs administrations coordinate to seize nearly 20,000 endangered wildlife

VCN - According to the WCO, the General Department of Vietnam Customs, Operation Thunder 2024 aims to combat criminal networks involved in illegal trafficking of wildlife and forestry products.
An Giang Customs strictly controls goods moving across the border

An Giang Customs strictly controls goods moving across the border

VCN - According to An Giang Customs Department, during the Lunar New Year holiday, the department has arranged leaders, civil servants and employees to work and effectively handled all arising situations and smoothly processed customs procedures, and prev
Remodel cars to hide drugs

Remodel cars to hide drugs

VCN - Through the fight against drugs, Quang Tri Customs Enforcement force recognized that the drug-related crimes have taken place sophicicatedly.
Mobile Version