October 22, 2019 11:17

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Ho Chi Minh City Customs: Preventing the loss of revenue effectively

10:59 | 24/06/2019

VCN - The tax amount to the State budget through customs valuation of Ho Chi Minh City Customs Department in the first five months of 2019 increased by nearly 50% over the same period last year, reaching nearly 130 billion dong.  

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HCMC Customs conduct a one-time consultation of customs valuation in order to facilitate enterprises. Photo: T.H.

Of the nearly 130 billion VND raised from the taxable valuation, most tax collection increased after price consultations carried out by the Customs Sub-Department of Saigon Port border gate Area 1, with an increase of nearly 93 billion VND. The sub-department discovered many imported products which were declared with very low prices and consulted to adjust prices in accordance with their true value.

According to Mr. Cao Phung Nguyen Binh, Deputy Head of Import Cargo Procedures Team, Customs Sub-Department of Saigon Port border gate Area 1, items with high adjusted revenue after price consultation included cars, consumer goods and production materials. In particular, regarding imported cars, the sub-department adjusted to increase tax by over 84 billion VND.

Through researching the import profile of some consumer goods and production materials, the Customs Sub-Department of Saigon Port border gate Area 1 found unusual signs for some items declared by enterprises, so they carried out investigations. After consultation, many items were rejected on the declared value by the Customs authorities because enterprises could not prove the declared price. At the same time, the Customs authorities adjusted increase of taxable valuation for these imported goods.

In particular, there are items that were adjusted to increase the tax valuation compared to the declared prices of enterprises. For example, with imported polyester yarn used for industrial sewing thread, enterprises declared US$0.26 per kg. Through price consultations, the Customs Sub-Department of Saigon Port border gate Area 1 rejected the declared value of enterprises, adjusted tax calculation price to US$1.87 per kg – seven times higher than the declared price of enterprises.

With the adjustment of the taxable valuation for yarn and fabric as mentioned above, the Customs Sub-Department of Saigon Port border gate Area 1increased the budget revenue by nearly 7 billion VND.

Regarding pearls from Taiwan, enterprises declared a taxable valuation of US$0.77/kg, which the Customs authorities adjusted up to US$1.26/kg. With this item alone, the Customs Sub-Department of Saigon Port border gate Area 1 increased the State budget revenue by nearly 2 billion dong.

Similarly, with ceramic tiles, enterprises declared a unit price from US$4.2 to 4.4/MTK. Through price consultations, the Customs authority adjusted prices to USD8-9/MTK. For artificial stone products, enterprises declared prices of US$0.26-5.2/MTK. After consulting, the Customs adjusted the taxable valuation to US$17/MTK. The Customs authority adjusted the tax increase of more than 1.6 billion VND from imported stone and brick shipments

Tax increase of tens of billions of dong

In recent years, HCMC Customs Department has been very interested in the price consultation for imported goods, considered one of the key tasks in the fight against loss of revenue, creating an equal business environment among enterprises.

According to Ho Chi Minh City Customs Department, out of more than 200 billion VND to the State budget revenue in the first five months of 2019, through professional work and the consultation of prices for imported goods, HCMC Customs Department ruled out the transaction price of nearly 3,300 customs declarations, increasing the budget revenue of nearly 130 billion VND, up nearly 50% compared to the same period in 2018.

Not only increasing revenue through consultation right at the border gate for imported goods, through the work of reviewing and checking documents, Ho Chi Minh City Customs Department has also detected many cases of violation on taxable valuation declarations, so they collected and issues tens of billions of dong in fines. Typically, the F.B Co., Ltd. has just been collected and fined nearly 10 billion VND in taxes. According to documents in the case, the company imported food products, including milk of all kinds, cheese, fresh milk cream and butter worth 557 billion VND. Through inspection and review, the Customs authorities discovered the import declarations of the above food products of F.B Co., Ltd with signs of incorrect valuations.

In the process of verifying the case and considering the explanation of the company, Ho Chi Minh City Customs Department determined that the company had made incorrect declarations about the value of goods resulting in the lack of payable tax, but the company discovered and additionally declared their tax declaration documents more than 60 days from the date of customs clearance, before the Customs authorities decided post-customs clearance inspection. Therefore, Ho Chi Minh City Customs Department issued a decision to retrospectively collect over 9 billion dong of tax arrears and a fine equal to 10% of the missing tax amount, with a fine of over 918 million dong.

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Before that, at the end of February 2019, N. Cable Car Joint Stock Company opened 12 customs declarations to import a chute system through Cat Lai port border gate. This company declared the code and tax rate for the chute system with HS code 8428.60.00, 0% of the import tax rate. Checking the import documents of this item, the Customs authority discovered that the company had declared incorrect codes and tax rates for the chute system. This item was adjusted from code 8428.60.00 (import tax rate 0%) to code 9506.99.90 (import tax rate at 10%). The total value of 12 violation declarations was 55.7 billion VND, the additional payable tax amount of 12 declarations was over 3 billion VND (import tax of 2.7 billion VND, VAT of nearly VND 300 million).

In the first 5 months of 2019, Ho Chi Minh City Customs Department increased the State budget revenue by over 200 billion VND. In particular, increasing revenue from post-clearance inspection was nearly 130 billion VND; the work of post-customs clearance inspection, increasing revenue of over 64 billion VND. In particular, the Sub-Department of Post-clearance Inspection carried out a revenue increase of over 62 billion VND, an increase of 54.9% compared to the same period in 2018. Along with that, Ho Chi Minh City Customs Department increased the budget revenue by nearly 7 billion VND from classification of import and export goods; nearly 400 million VND from the sanctioning of administrative violations.

By Le Thu/ Binh Minh