Trade war: High risk fraud through the origin of goods

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HCMC Customs Director Dinh Ngoc Thang shared many recommendations to businesses.

Many risks

According to experts, the US-China trade war is an opportunity for Vietnamese businesses to take advantage of increased exports to the United States. However, the "trade war" could have a negative impact on Vietnam's trade, with the high risk of trade fraud through the origin of goods, the illegal transshipment of goods, and the direct impact on Vietnam’s goods to the United States.

Therefore, in order to support Vietnamese companies in exporting their goods to the US, helping businesses reduce compliance costs and help reduce business risks through a pre-determined mechanism of origin, value, and classification. Customs officials in these areas will discuss and evaluate the situation, identify risks, exchange experiences to work out the solutions and opportunities. Taking advantage of the US-China trade war to boost trade facilitation of Vietnam and the United States but still prevent risks.

The Customs Department has issued recommendations and guidance on the procedures and procedures applied in the customs clearance of goods in general and the application of pre-determined codes, origin and customs valuation in particular. This is an opportunity for enterprises to immediately apply these rules as an advantage in the context of this trade war.

Emphasizing the huge risks for both enterprises and management agencies should be noted, Director of Customs Department of Ho Chi Minh City Dinh Ngoc Thang said, it is the abuse of trade fraud through the origin of goods. For example, Chinese goods will strip Vietnamese origin for export to the United States; Transshipment, borrowing of goods and routes for export of illegal goods; Falsely declaring or incorrectly coding the goods codes for fraudulent customs valuation; fraudulent transfer pricing; Transferring machinery, factories, old technology to Vietnam.

Prevent fraudulent origin

To limit the risks mentioned above, prevent fraud through the origin of goods, leaders of Customs Department of Ho Chi Minh City have made many recommendations. Accordingly, on the side of enterprises, especially export enterprises, to quickly and firmly grasp this opportunity, identify responsibilities, and immediately update the new regulations on customs procedures and rules and conditions of pre-determined application for codes, origin and value; Comply with regulations on customs during import and export.

Business associations actively guide, train, recommend to businesses to seize opportunities, implement and overcome barriers and difficulties; It is a bridge between import-export enterprises and state management agencies such as customs, taxation, specialized management agencies...

On the customs side, leaders of Customs Department of Ho Chi Minh City pledged to continue to create maximum convenience for trade activities; always share the cooperation and development cooperation with enterprises; Providing guidance on procedures, quickly solving problems of the business community; To closely cooperate with VCCI, AmCham and other associations to have practical and effective activities to support US-Vietnam trade relations and enterprises.

"2019 will be a breakthrough year for HCMC Customs reform and modernization to facilitate trade. We are committed and determined to implement but also very welcome to receive comments, suggestions and support from business associations and businesses operating in the area to complete our commitment to this policy" - Director Dinh Ngoc Thang emphasized.

Mr. Nguyen Quoc Toan, Deputy Director of Department of Import-Export Tax - Customs Department of Ho Chi Minh City, said that the determination of the code, origin, customs value is the customs body to identify the code, origin, customs value of the goods before customs clearance.

In cases where the customs declarers request the customs offices to determine in advance the code, origin and customs value of the goods to be exported or imported, the customs declarers shall supply the customs offices with relevant information and vouchers as well as samples of the goods expected to be exported or imported to customs offices for identification before customs codes and origins.

Vietnam prepares to reap benefits of US-China trade war

Where it is impossible to provide the sample of goods to be exported or imported, the customs declarers must provide technical documents related to such goods.

According to Mr. Toan, the Government also stipulates in details the predetermined provisions in Decree 08/2015/ND-CP dated 21st January, 2015 and Decree No. 59/2018/ ND-CP dated 20th April, 2018.