March 25, 2019 14:37

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Prevent C/O fraud when implementing CPTPP

20:24 | 10/01/2019

VCN- It is one of the key tasks that the Customs sector needs to focus on in 2019, stated by the Director General of Vietnam Customs, Nguyen Van Can, at the conference summarizing the 2018 fiscal and budgetary task and deployment of the tasks 2019 on 9th January 2019.  

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prevent co fraud when implementing cptpp
Director General Nguyen van Can stated at the conference. Photo: Q.H

17,000 violations were detected

So far, 99% of Customs declarations and tax payments have been carried out ‘at anytime and anywhere’ by electronic method. Especially, from October 2018, all Customs dossiers were submitted by electronic method, contributing to reducing Customs clearance time and creating maximum favorable conditions for import-export enterprises.

Over the past time, the Customs sector has actively prevented revenue losses through specific solutions such as applying information collection policies via international cooperation channels, coordinating with ministries and sectors to point out commodity groups with high risk of losses on value, code and high tax rate, thereby, directing synchronously in the entire sector to enhance the inspection and control of Customs value and tax rate in accordance with agreements signed by Vietnam. The Customs has inspected, detected and collected arrears with hundreds of billions VND from orders and businesses.

The statistics has shown that in 2018, the Customs force investigated and detected nearly 17,000 Customs offences. Through inspections, examinations and investigations, the force collected over VND 3,000 billion with the value of seized goods of over VND 2,000 billion. Notably, in 2018, the Customs forces at all levels prosecuted violations which increased in scale, quantity and offenders, contributing to State budget, improving the business environment, attracting foreign investment and strictly handling offenders; coordinated with the prosecution agencies such as the Ministry of Public Security and the Supreme Procuracy to promptly prosecute the offenders.

Also, in 2018, the General Department of Vietnam Customs directly requested provincial and municipal Customs departments as well as Customs branches in targeted arrears to strengthen the inspection and control for banned imported-exported goods to detect many violations for reckless perpetrators who used many sophisticated tricks to hide prohibited goods. Through intelligence and scanning system, for the first time, the Customs agencies detected a new types of drugs illegally imported to Vietnam, hundreds of kilograms of scraps, weapons smuggled via aviation, and synthetic drugs illegally imported across land border gates, detected violations in huge quantities, contributing to safety, security and national interests.

Specially, over the past time, according to the provisions, the direction of the Ministry of Finance and direct requirement of the Prime Minister, the General Department of Vietnam Customs has actively used its competency to inspect immediately at border gates; detected and prosecuted dozens of violations for individuals who imported scraps to Vietnam, and prevented waste being smuggled into the inland.

In addition, the Customs coordinated with ministries and sectors to handle backlogged containers at ports with about 20,000 containers, contributing to protecting public health and preventing state budget revenue losses, not via tax, but via reduction of state budget expenditure for handling of waste if they are successfully smuggled and mixed with industrial and biological waste.

Transnational information exchange to combat tax fraud

In 2019, the CPTPP Agreement was officially implemented as a challenge to the duty performance of the customs sector, especially in assessing the origin and standard of goods to enjoy tariff preferences. In response, as a Standing agency of the Vietnam’s National Trade Facilitation Committee, the General Department of Vietnam Customs has actively reported to the Ministry of Finance, coordinated with ministries and sectors to develop a plan for strict control to prevent the situation that businesses transport finished goods not produced by Vietnam to Vietnam, so as to change and use Vietnam’s Origin to export to other countries, leading to the risk of sanction for Vietnam.

prevent co fraud when implementing cptpp Over 26,600 e-C/O form D have been implemented on ASEAN Single Window

The General Department of Vietnam Customs has also developed an automated system for Customs management and advised the Ministry of Finance and the Government to sign and upgrade some Government-level Customs Cooperation Agreements with countries with large import-export turnover with Vietnam, such as the United States, South Korea, China, ... Accordingly, investigating and exchanging infringing information and evidence to prevent and combat transnational offenders. Currently, with this measure, the Customs has fully collected information and documents, and will prevent and collect arrears of thousands of billions VND from tax frauds due to counterfeit invoices in the first quarter of 2019.

In 2019, implementing the direction of the Ministry of Finance, the Customs sector will promote the results, proactivity and creativity; make effort to continuously implement administrative reform, and prevent smuggling, trade fraud, revenue losses, and strive to exceed 5% of the assigned target (VND 316,000 billion).

By Hong Van/Ngoc Loan