Warning on the situation of using import dossiers of sugar fully paid tax to legalised smuggled sugar

Ha Tien Customs Branch (Kien Giang province) checked imported sugar.

Enterprises opening declarations for importing sugar enjoy a special preferential tariff of 5% in accordance with Circular No. 23/2019/TT-BCT of the Ministry of Industry and Trade stipulating non-application of import quota for sugar originated from ASEAN countries. The case of imports having C/O form D would entitle to enjoy a special preferential import tariff rate of 5% (the MFN preferential import tariff rate is 40%).

The question was why did imported sugar entitled to enjoy preferential tariff rates, was quite modestly imported to Vietnam in the past, but has emerged recently? According to competent authorities, due to tightening control and blocking of pandemic prevention at border gates, trails, openings on the border, smugglers and illegal transportation of crystallised sugar across the border unable to operate, so they switch to import by fully paying tax through roadway, seaway and enjoy the special preferential tariff rates.

Based on current regulations, customs units have settled the import procedures for the enterprises in accordance with regulations. However, according to Southwest Customs units, the current concern was the risk of using customs dossiers to import affinated sugar to legalise the shipments of smuggled sugar or after importing, enterprises made transactions for other enterprises, production establishments of rock sugar along the border to legalise smuggled sugar. This caused many difficulties in the anti-smuggling task of competent forces in arresting and handling violations. This situation happened previously in the case of smuggling sugar seized by the Customs authority and by the competent authorities.

The import of sugar by paying fully tax has lead to an increase of the risk of using the act of legalising smuggled sugar by opening import dossiers, which has been reported to the General Department of Vietnam Customs by customs departments of some border provinces. On the southwestern borderline, from the beginning of the year until now, forces have discovered and seized many smuggling cases of hundreds of tonnes of sugar. The exhibits were the packaging showing address of made in Cambodia. Most recently, An Giang Police uncovered a case of illegal import of 100 tonnes of sugar as mentioned above.

Due to the characteristics of the long Vietnam-Cambodia border, with many rivers, canals, and complex open paths, causing many difficulties for the management of border trade activities, it had many potential risk of smuggling and transportation of goods across borders, causing loss of revenue for the state budget. Facing this situation, the customs units have instructed their units to implement inspection and supervision measures to ensure all import and export activities operate conveniently, quickly and comply with regulations; at the same time, resolutely preventing all individuals and enterprises taking advantage of policies and complex terrain to commit smuggling, commercial fraud and illegal transport of goods across border, especially taking advantage of using dossier of imported sugar to legalise smuggled sugar.

Smuggling and illegally transporting sugar across borders have existed for too long for many reasons, causing difficulties in the supervision, control and anti-smuggling work across the border. The increase of imports of sugar through major border gates increases the risk that smugglers use import records to legalise smuggled sugar.