The auction of 6 old cars at Hai Phong Customs abides by the regulations

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TOYOTA RAV4 vehicle status, 1 in 6 cars that are distrained, auctioned, are seriously damaged at the time of distraint. Photo: Hai Phong Customs

In the sun at Chua Ve port for over 11 years

Concerning the auction of 6 old cars at Hai Phong Customs Department recently published by a press agency, today (March 20, 2019), Hai Phong Customs gave official information.

Talking to Customs Newspaper reporters, the representative of Hai Phong Customs Department said, implementing the provisions of the law, on June 11, 2018, Hai Phong Port region 3 Customs Branch, issued Decision 1333 / QD-HQCK3 to enforce property distraint and auction of seized assets for 6 used cars of Nguyen Linh Co., Ltd. (to ensure the implementation of notices on tax debts and late payments of over VND 10 billion-reporter).

After the distraint of assets and auction of seized assets, the Branch has assessed 6 of the above mentioned cars.

According to assessment results, all 6 cars have been kept at the Chua Ve port’s warehouse for more than 11 years for the time of distraint.

Remarkably, over the past 11 years, all 6 cars have been in the sun without roof and in severe weather conditions, so that many car components and equipment have been seriously damaged.

In particular, the car chassis has been rusted away, the engine has been leaking, rusty; the car body is rusty, blistered, crushed; the dashboard surface has cracked.

The car interior and equipment have been seriously damaged, almost impossible to use; control box (black box) is broken; tires and batteries are also broken.

Besides, many devices in the cars are no longer operable like audio equipment, wheels, rear view mirror, car logo ...

In particular, all the cars are inoperable.

Distraint and auction in accordance with regulations

The representative of Hai Phong Customs Department said that Hai Phong port region 3 customs branch, has held distraint and auction of distrained assets in accordance with the provisions.

Specifically, in order to assess the status and quality of cars objectivity and in compliance with regulations, the Branch has requested an independent inspection company to assess each car (with inspection certificate No. 604 / N / 052018 dated June 6, 2018 of Bao Linh inspection company).

In order to determine the value, the Branch has requested an independent valuation organization (with price appraisal certificate 1865 / CTh- VCHP dated June 27, 2018 of VCHP Valuation and Consultancy Joint Stock Company).

Accordingly, the auction of 6 cars was organized in accordance with the provisions of the Law on Property Auction.

Regarding policies on import tax, special consumption tax and value added tax for the above shipment, Hai Phong Customs Department said that the issuance of retail invoices for distrained and auctioned assets raised many different views (among concerned agencies), so it is difficult for organizations and individuals in purchase of distrained assets and asset auction when implementing car registration procedures.

According to Hai Phong Customs Department, pursuant to Civil Code No. 91/2015 / QH13, goods of Nguyen Linh Company are subject to distraint and auction, the ownership of the goods has been transferred from the Company to the state. Therefore, Nguyen Linh Company does not have to pay taxes as prescribed.

On the other hand, based on the Law on Import and Export Duties; Law on Special Consumption Tax, Law on Value Added Tax, state management agencies making the distraint and auction are not subject to tax.

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Also, according to Hai Phong Customs Department, due to the above problems, the Department has sent an official report to the General Department of Customs to exchange with relevant agencies to ensure the rights for organizations and individuals buying auctioned assets.