Quang Ninh Customs detects origin fraud of enterprises

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Customs officers of Mong Cai Customs Branch (Quang Ninh Customs Department) inspect imported goods. Photo: Q.H

Actively prevent violations

Import and export activities through Quang Ninh province are carried out at four seaports of Hon Gai, Cai Lan, Cam Pha and Van Gia, and three border check points of Mong Cai, Hoanh Mo and Bac PhongSinh. Goods imported through seaports are mainlyraw materials for production of animal feed, wheat, coal and ore,that are made in ASEAN countries, Australia, Russia and China. Goods imported through land border gates are mainly machinery, equipment, consumer goods, and raw materials for goods production that are made in China.

Facing risks of smuggling and transporting goods with forged Vietnamese labels and origin to deceiveconsumers and takeadvantage of Vietnamese origin to export to third countries, Quang Ninh Customs has focused on directing and deploying the prevention and fight against fraud in origin, labelling of goods, infringement of intellectual property rights and illegal transshipment of goods to subordinate-units.

Accordingly, the department has directed subordinate units to strengthen management and set up risk management criteria for items which have potential risk of origin fraud, especially for items imported across land border gates such as general cargo, machinery, equipment, disassembled goods for import. For commodity groups of export processing and manufacturing enterprises, it focuses on enterprises which have exported goods which were declared with Vietnamese origin but simply processed and ineligible for identification of Vietnamese origin.

Directing anti-smuggling forces to strengthen patrol, control and develop plans to promptly detect cases transporting goods with forged origin, label and infringingintellectual property rights. Coordinate with border gate customs branches to closely inspect imported goods having risk offake declarations of Vietnamese origin.

Identify fraud

Through understanding the situation, Quang Ninh Customs has identified acts of inaccurate declaration of origin of goods deposited in bonded warehouses such as declaring goods origin different from origin declared on labels.

Moreover, Some items are made in China but when imported into Vietnam, they have been labeled “Made in Vietnam” and information on products, packages and warranty cards have been shown in Vietnamese about trademarks, enterprise’s headquarters, websites, warranty centers in Vietnam for domestic consumption or for exports. Products were declared as Vietnamese origin but made from materials imported from many other countries and were simply processed and ineligible for being identified as Vietnamese origin.

Quang Ninh Customs handled 13 enterprises related to inaccurate declaration of origin of imported goods. Of which, eight enterprises violated inaccurate declaration of origin of goods deposited in bonded warehouses; two enterprises violated in trading goods with fake labels and packages and fake instructions of origin and manufacturing places; three enterprises violated in inaccurate declaration of origin for imported goods subject to tax exemption and not subject to tax.

For example, H. H Electronic Investment Manufacture Co., Ltd. was sanctioned for administrative violations worth VND30 million for the sale of goods with fake labels, fake packages and fake instructions about the origin, manufacture place for 240 rice cookers, made in China. Similarly, T.S International Co., Ltd. was sanctioned for administrative violations, with a fine of VND30 million for sale of 45,000 paper bags with fake labels showing the origin and manufacturing places.

In addition to detecting violations in the clearance process, the Post Clearance Audit Branch (Quang Ninh Customs Department) has implemented solutions to collect information; select the content of inspection on compliance with the law in import-export activities, pay special attention to enterprises importing raw materials for export production. As a result, the branch inspected the origin of goods for two enterprises, in which one enterprise committed to act of inaccurate declaration of origin of exported goods, collected, sanctioned administrative violations of more than VND350 million.

In addition to the achieved results, Quang Ninh Customs has faced difficulties in inspecting imported goods with infringing origin shown on the label, while enterprises import goods for business and production, then committed to fraudulent acts to export these goods to foreign countries and label them with Vietnamese origin. When export processing and production enterprises import raw materials from different suppliers and only do simple processing, and are not eligible to identify the goods as Vietnamese origin but still have to declare the origin of goods on the VNACCS /VCIS as required. However, according to section 2.69, Appendix II of Circular No.39/2018/TT-BTC guiding the declaration of the country of origin of exported goods under the rules: in the description of goods, country code of origin was only declared as one country, causing difficulties for both enterprises and customs.

In this regard, Quang Ninh Customs asked the General Department of VietnamCustoms to continue training skills on C/O inspection and detection of counterfeit origin through physical inspection of goods for cadre and civil servants; warning of fraudulent tricks of importing enterprises about the origin of goods.