Special case HC-118: Detecting trick of fraudulent software import declaration

VCN- Ho Chi Minh City Customs Department has detected a new sophisticated smuggling trick for the purpose of illegal transfer of foreign currencies abroad.  
special case hc 118 detecting trick of fraudulent software import declaration Warning about illegal transfer of foreign currency by fraudulent import of software
special case hc 118 detecting trick of fraudulent software import declaration 15 enterprises coordinate with Customs to supervise in Hai Phong port
special case hc 118 detecting trick of fraudulent software import declaration 3 options for enterprises to choose e-Customs declaration software
special case hc 118 detecting trick of fraudulent software import declaration
One infringing shipment of Phong Nhi Phong Nhi Service Trading Co., Ltd. Photo: T.H

Special case HC-118

At the end of 2017, Ho Chi Minh Customs Department inspected 2 imported shipments via Cat Lai port and detected 2 companies importing nearly 18,000 second hand computers and fraudulently declared imported software with a value of US$ 3.7 million. From this special case, Ho Chi Minh city Customs Department detected that some businesses used sophisticated tricks to fraudulently declare imported software for illegal transfer of foreign currencies abroad.

According to Customs Enforcement Team, implementing the special case HC-118, the Team coordinated with Sai Gon Port Customs Branch Zone 1, C47, PC46 and Inspectorate Division- Ho Chi Minh City Customs Department to inspect 2 imported shipments by Nguyen Thao Informatics Service Trading Co., Ltd and Phong Nhi Service Trading Co., Ltd.

The two shipments were opened the declarations on 18th December 2017. Nguyen Thao Informatics Service Trading Co., Ltd declared to import 4 items: Dell computers, adapters, computer cases, and human resource software. All items were 100% new and originated from China with a value of over US$ 1.8 million and import duty and VAT of over VND 15 million.

Similarity, Phong Nhi Service Trading Co., Ltd also used the same method to declare the import shipment with a value of nearly US$ 1.9 million, import duty and VAT of over VND 17 million. Through inspecting the 2 above mentioned shipments, the Customs detected that the 1,873 laptops, 51 hard drives, 21 CPUs, 2 iPads were second-hand and subject to banned imported goods, were not declared. In addition, the items were fraudulently declared with high value including human resource software and accounting software with a value of US$ 3,675,000.

According to the Customs Enforcement Team, the fraudulent import declaration of high-value business office goods is for the illegal transfer of foreign currencies abroad. Currently, the case is still being investigated.

Warning to prevent

From the actual situation, in order to prevent illegal transfer of foreign currency abroad, the General Department of Vietnam Customs has requested municipal and provincial Customs Departments to strengthen the inspection for imported shipments declared as high-value software.

According to the General Department of Vietnam Customs, through the supervision, management and review of carrying out Customs procedures, it detected that some businesses had signs of illegal transfer of foreign currency abroad by fraudulent declaration of high-value software. Identifying these businesses, the General Department of Vietnam Customs said that they have common characteristics such as the exporters were only commercial companies and were not software manufacturing companies, names of goods were unclear, and software were declared using general terminology (human resource software, accounting software), without the name of the manufacturer, expiry date, copyright information, and the T/T payment method (Telegraphic Transfer).

In addition, the declaration method is similar in both content and form; invoice, packing list, quantity of declared goods were different from actual quantity of shipment. Many criteria were declared falsely, the signature by the director of a company was different and inconsistent with many signs of forged documents in the Customs dossiers. The imported goods were used goods and mainly laptops subject to banned imported goods.

special case hc 118 detecting trick of fraudulent software import declaration 3 options for enterprises to choose e-Customs declaration software

VCN - To declare e-Customs through VNACCS/VCIS system, there are 3 options for the business community to ...

According to the assessment of the General Department of Vietnam Customs, these enterprises might have been established to take advantage of the policy to import software via its cases (separating the value of the software and the value of the case) with a high value to transfer foreign currencies abroad equivalent to the amount declared on the cleared declarations. Taking advantage of software management policies to import banned goods (used information technology equipment). There are signs of false declaration of input and output VAT (sign of trading VAT invoice).

In order to prevent the above illegal acts, the General Department has requested municipal and provincial Customs Department to strengthen the inspection for imported shipments declared as high-value software (accounting software, auction software, and human resource software). Accordingly, classifying Red channel to check in detail dossiers and implement physical inspection for these software. If detecting suspicious signs, Customs units need to promptly report them to the General Department of Customs for specific guidance.

By Le Thu/Ngoc Loan

Related News

Thai Nguyen Customs makes great efforts to facilitate import and export enterprises

Thai Nguyen Customs makes great efforts to facilitate import and export enterprises

VCN - On the afternoon of July 11, Thai Nguyen Customs Branch (Bac Ninh Customs Department) held the first Customs-Business Conference in 2024.
WCO updates e-textbook on containers and seals controls of Vietnam Customs

WCO updates e-textbook on containers and seals controls of Vietnam Customs

VCN –CLiKC! the WCO Training Portal updates the textbook “Basic knowledge of containers and seal inspection techniques” of Vietnam Customs as references in training for Customs administrations. This is the first time that the e-textbook of Vietnam Customs is used as training material for Customs administrations around the world.
Import and export turnover increases to US$ 51 billion

Import and export turnover increases to US$ 51 billion

VCN – Import-export turnover in June saw a slight decrease but remained at a high level, the General Department of Vietnam Customs announces.
Businesses highly appreciate the administrative reform of Ho Chi Minh City Customs

Businesses highly appreciate the administrative reform of Ho Chi Minh City Customs

VCN - Businesses highly appreciate the effectiveness of administrative procedure reform of Ho Chi Minh City Customs, and wish to continue to pilot breakthrough projects of the Customs agency.

Latest News

An Giang Customs: Preventing many cases of illegal currency transport and tax fraud

An Giang Customs: Preventing many cases of illegal currency transport and tax fraud

VCN - Many cases of illegal cross-border currency transport and tax fraud have been detected, prevented, and criminally prosecuted by An Giang Customs Department.
An Giang Customs: Preventing many cases of illegal currency transportation and tax fraud

An Giang Customs: Preventing many cases of illegal currency transportation and tax fraud

VCN - Many cases of illegal cross-border currency transportation and tax fraud have been detected, prevented, and criminally prosecuted by An Giang Customs Department.
Customs launches the Campaign on prevention crimes in forestry

Customs launches the Campaign on prevention crimes in forestry

VCN - The ARCADIA campaign on preventing and combating crimes related to the forestry sector is a campaign launched by the International Criminal Police Organization (INTERPOL) with the participation of countries in the Asia-Pacific region. The purpose is to detect and prevent illegal logging and trading activities and other crimes related to the forestry sector.
Hanoi Customs takes lead in drugs prevention

Hanoi Customs takes lead in drugs prevention

VCN - “Hanoi Customs Department has create their brand in the fight against drugs”, that was an affirmation of Deputy Director General of Vietnam Customs Hoang Viet Cuong at the conference on preliminarily review the work in the first half of 2024, task deployment in the last six month of 2024 held by Hanoi Customs on July 5th.

More News

HCM City Customs warns on new method of drug trafficking

HCM City Customs warns on new method of drug trafficking

VCN - Through the work of information collection and analysis, the drugs enforcement unit grasped information about a foreign person who was trying to hook up other people in Vietnam to transport drug.
Hanoi Customs detects many sophisticated tricks of hiding drugs

Hanoi Customs detects many sophisticated tricks of hiding drugs

VCN - In the first half of 2024, Hanoi Customs Department has detected and seized 540 kg of drugs, including the largest seizure of drugs transported by air; and discovered sophisticated and complex tricks of illegal drug traffickers.
Tricks of hiding drugs are increasingly sophisticated

Tricks of hiding drugs are increasingly sophisticated

VCN - Methods of hiding drugs are constantly changed to outsmart detection of law enforcement agencies, especially the Customs force at the border gate.
Hanoi Customs discovered and seized 539kg of drugs in the first half of 2024

Hanoi Customs discovered and seized 539kg of drugs in the first half of 2024

VCN - Leaders of Hanoi Customs Department informed at the online conference to preliminarily review the work of the first 6 months of the year, directions and solutions to implement the tasks in the last 6 months of 2024 of the General Department of Vietnam Customs, held on the morning of July 3.
Hai Phong customs warns of new and sophisticated smuggling tricks

Hai Phong customs warns of new and sophisticated smuggling tricks

VCN - At the online conference summarizing the work of the first six months of the year, giving directions and solutions to implement tasks in the last six months of 2024 of the General Department of Customs (July 3), Deputy Director of Hai Phong Customs Department Nguyen Sy Trang shared about the fight against smuggling and illegal transportation of goods across the border in the area.
Vietnam faces challenges of drug-related crimes in “Golden Triangle” area

Vietnam faces challenges of drug-related crimes in “Golden Triangle” area

VCN – Drug-related crimes in the “Golden Triangle” area is still complicated and affect the drug-related crimes in Vietnam.
Quang Nam Customs seizes 48 kg of fireworks

Quang Nam Customs seizes 48 kg of fireworks

VCN – Quang Nam Customs Department has just seized 48 kg of fireworks inside a trailer at Chu Lai port.
Seizing the largest number of drugs ever transported via air

Seizing the largest number of drugs ever transported via air

VCN - The specialized project HP524 established by Hanoi Customs Department in coordination with PC04 – Hanoi Police City and North Hanoi Customs Branch has been closed. The competent force seized 179 kg of synthetic drugs MDMA that was the largest number of drugs ever transported via air.
How does Asanzo Group Joint Stock Company evade taxes?

How does Asanzo Group Joint Stock Company evade taxes?

VCN – Asanzo Company failed to declare and pay special consumption tax; excluded in accounting books; and used illegal invoices to account for goods and input materials for tax evasion, HCM City Tax Authority said.
Read More

Your care

Latest Most read
An Giang Customs: Preventing many cases of illegal currency transport and tax fraud

An Giang Customs: Preventing many cases of illegal currency transport and tax fraud

VCN - Many cases of illegal cross-border currency transport and tax fraud have been detected, prevented, and criminally prosecuted by An Giang Customs Department.
An Giang Customs: Preventing many cases of illegal currency transportation and tax fraud

An Giang Customs: Preventing many cases of illegal currency transportation and tax fraud

VCN - Many cases of illegal cross-border currency transportation and tax fraud have been detected, prevented, and criminally prosecuted by An Giang Customs Department.
Customs launches the Campaign on prevention crimes in forestry

Customs launches the Campaign on prevention crimes in forestry

The ARCADIA campaign on preventing and combating crimes related to the forestry sector is a campaign launched by the International Criminal Police Organization (INTERPOL)
Hanoi Customs takes lead in drugs prevention

Hanoi Customs takes lead in drugs prevention

“Hanoi Customs Department has create their brand in the fight against drugs”, that was an affirmation of Deputy Director General of Vietnam Customs Hoang Viet Cuong
HCM City Customs warns on new method of drug trafficking

HCM City Customs warns on new method of drug trafficking

Through the work of information collection and analysis, the drugs enforcement unit grasped information about a foreign person who was trying to hook up other people in Vietnam to transport drug.
Mobile Version