VCN – In addition to policies on facilitation to trade and customs clearance, Customs has identified key problems and many tricks and tips of tax fraud from Green Channel declarations
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|Infringing goods in the smuggling case of nearly VND 260 million of tax of Tran Linh Company discovered in August. Photo: Thu Hoa|
The number of Customs declarations classified into Green Channel by the automated customs clearance system is remarkable, ranging from 6 to 7 million per year. This represents Customs efforts in implementing policies on facilitation of trade and customs clearance and import and export activities. However, many enterprises abuse this to commit smuggling and trade fraud by complicated tricks
On April 12, 2019, the General Department of Customs launched a scheme on risk control in taking advantages of Green Channel declarations (under Decision No. 180/QD-TCHQ). The Risk Management Department was assigned to monitor and synthesise reports on performance results of the scheme.
After three months of implementing the scheme (from April 12th to July, 12th) in provincial and municipal Customs Departments, the Customs sector listed 173 enterprises subject to risk control. As a result, there were 101 customs declarations in violations
Typically, Quang Ninh Customs Department reviewed Green Channel Customs declarations and conducted post clearance audits for A.S.T company limited and detected violations. The company paid additional tax and tax arrears of more than VND 400 million. Hai Phong Customs Department analysed information, stopping nine shipments subject to Green Channel declarations through the customs supervision area. Accordingly, six shipments, which were ineligible for imports, mispresented codes, quantity and type and three shipments which were not declared, were discovered.
Recently, Customs Branch at Sai Gon Port Zone 1 (under Ho Chi Minh City Customs Department) has issued decision on sanctioning Tran Linh Trade and Service Company Limited VND 256 million for acts of misrepresenting tax codes, leading to insufficient tax payable.
Analysing and identifying key problems
The synthesis by the Customs Risk Management Department shows that after the scheme was issued, leaders and officials in Customs units realised risk signs of enterprises with Green Channel and Yellow Channel declarations and took appropriate measures to identify and manage. The scheme is also a written warning for tricks of taking advantages of Green Channel declarations. Furthermore, the scheme has promoted the analysis and identification of key problems and the application of criteria of Customs units in charge of risk control. Moreover, the application of risk control measures for exports has been deployed more actively and efficiently than before, thereby detecting more violations. Through the scheme, some Customs units realized many enterprises deliberately mispresenting legal document code to avoid the channel classification for goods subject to specialised inspections.
|Formulating a consistent and unified legal framework for risk management
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In addition, through the analysis and identification of key problems, the Customs Risk Management Department sent a list of six enterprises subject to high risk of declaring quantity and types of goods to the Post Clearance Audit Department for inspection (under Official Letter No. 96/QLRR-P5 dated June 27, 2019). Also, the Department made records of risk for key items and key enterprises for management. The Department also coordinated and advised the Import and Export Duty Department to propose the General Department of Customs Official Letter No. 3512/TCHQ-TNXK on strengthening inspection, classification and customs valuation for each item and summarise and analyse information on the trend of methods of concealing and illegally transporting drugs to propose to the General Department for approval of applying the criteria of strengthening inspection and promulgating warning letters for portable loudspeakers likely to be abused for smuggling and hiding of drugs
By Quang Hung/ Huyen Trang