September 21, 2018 23:34

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Special case HC-118: Detecting trick of fraudulent software import declaration

09:30 | 01/03/2018

VCN- Ho Chi Minh City Customs Department has detected a new sophisticated smuggling trick for the purpose of illegal transfer of foreign currencies abroad.  

special case hc 118 detecting trick of fraudulent software import declaration Warning about illegal transfer of foreign currency by fraudulent import of software
special case hc 118 detecting trick of fraudulent software import declaration 15 enterprises coordinate with Customs to supervise in Hai Phong port
special case hc 118 detecting trick of fraudulent software import declaration 3 options for enterprises to choose e-Customs declaration software
special case hc 118 detecting trick of fraudulent software import declaration
One infringing shipment of Phong Nhi Phong Nhi Service Trading Co., Ltd. Photo: T.H

Special case HC-118

At the end of 2017, Ho Chi Minh Customs Department inspected 2 imported shipments via Cat Lai port and detected 2 companies importing nearly 18,000 second hand computers and fraudulently declared imported software with a value of US$ 3.7 million. From this special case, Ho Chi Minh city Customs Department detected that some businesses used sophisticated tricks to fraudulently declare imported software for illegal transfer of foreign currencies abroad.

According to Customs Enforcement Team, implementing the special case HC-118, the Team coordinated with Sai Gon Port Customs Branch Zone 1, C47, PC46 and Inspectorate Division- Ho Chi Minh City Customs Department to inspect 2 imported shipments by Nguyen Thao Informatics Service Trading Co., Ltd and Phong Nhi Service Trading Co., Ltd.

The two shipments were opened the declarations on 18th December 2017. Nguyen Thao Informatics Service Trading Co., Ltd declared to import 4 items: Dell computers, adapters, computer cases, and human resource software. All items were 100% new and originated from China with a value of over US$ 1.8 million and import duty and VAT of over VND 15 million.

Similarity, Phong Nhi Service Trading Co., Ltd also used the same method to declare the import shipment with a value of nearly US$ 1.9 million, import duty and VAT of over VND 17 million. Through inspecting the 2 above mentioned shipments, the Customs detected that the 1,873 laptops, 51 hard drives, 21 CPUs, 2 iPads were second-hand and subject to banned imported goods, were not declared. In addition, the items were fraudulently declared with high value including human resource software and accounting software with a value of US$ 3,675,000.

According to the Customs Enforcement Team, the fraudulent import declaration of high-value business office goods is for the illegal transfer of foreign currencies abroad. Currently, the case is still being investigated.

Warning to prevent

From the actual situation, in order to prevent illegal transfer of foreign currency abroad, the General Department of Vietnam Customs has requested municipal and provincial Customs Departments to strengthen the inspection for imported shipments declared as high-value software.

According to the General Department of Vietnam Customs, through the supervision, management and review of carrying out Customs procedures, it detected that some businesses had signs of illegal transfer of foreign currency abroad by fraudulent declaration of high-value software. Identifying these businesses, the General Department of Vietnam Customs said that they have common characteristics such as the exporters were only commercial companies and were not software manufacturing companies, names of goods were unclear, and software were declared using general terminology (human resource software, accounting software), without the name of the manufacturer, expiry date, copyright information, and the T/T payment method (Telegraphic Transfer).

In addition, the declaration method is similar in both content and form; invoice, packing list, quantity of declared goods were different from actual quantity of shipment. Many criteria were declared falsely, the signature by the director of a company was different and inconsistent with many signs of forged documents in the Customs dossiers. The imported goods were used goods and mainly laptops subject to banned imported goods.

special case hc 118 detecting trick of fraudulent software import declaration 3 options for enterprises to choose e-Customs declaration software

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According to the assessment of the General Department of Vietnam Customs, these enterprises might have been established to take advantage of the policy to import software via its cases (separating the value of the software and the value of the case) with a high value to transfer foreign currencies abroad equivalent to the amount declared on the cleared declarations. Taking advantage of software management policies to import banned goods (used information technology equipment). There are signs of false declaration of input and output VAT (sign of trading VAT invoice).

In order to prevent the above illegal acts, the General Department has requested municipal and provincial Customs Department to strengthen the inspection for imported shipments declared as high-value software (accounting software, auction software, and human resource software). Accordingly, classifying Red channel to check in detail dossiers and implement physical inspection for these software. If detecting suspicious signs, Customs units need to promptly report them to the General Department of Customs for specific guidance.

By Le Thu/Ngoc Loan