Sunrise Textiles Co., Ltd has been prosecuted by the Anti-Smuggling and Investigation Department under the General Department of Vietnam Customs for importing goods subject to import licensing, but failing to provide the license and making false declarations about the quality of goods and changing the labels of some machinery in the shipment.

Through physical inspection, machinery and equipment imported by Sunrise Textiles
Co., Ltd were found to be used goods. Photo:H.

Used machinery declared as new machinery

Sunrise Vietnam Textiles Co., Ltd has a listed address at Thanh Thanh Cong Industrial Park, Trang Bang town, Tay Ninh province, and registered to implement the investment project on building a factory specialise in manufacturing knitted fabric and garments for export.

On October 30, 2019 and November 21, 2019, the company opened a declaration at Trang Bang Industrial Park Customs Branch, Tay Ninh Customs Department to import machinery and equipment for installation of textile fabric dyeing and weaving line produced in 2018, 2019, 100% new, worth US$1,542,175 or nearly VND 36 billion, originating from China, and transported by sea to Vietnam.

However, through physical inspection of the shipment under the declaration dated October 30, 2019 (changed registration on November 5, 2019), Trang Bang Industrial Park Customs Branch worked with the Anti-Smuggling and Investigation Department to detect all machinery and equipment in the company’s shipment are used goods and inconsistent with the statement in the customs dossier and import declaration. The inspection results performed by the Center for Quality Measurement Technology 3 also showed all of the above machinery and equipment was used and manufactured in 1996, 2000, 2005, 2010, and 2014.

Similarly, on November 21, 2019, Sunrise Vietnam Textile Co., Ltd opened an import declaration (changed on November 25, 2019, including one set of Fabric Cutting machine, one set of automatic overlocking machine, two sets of Fabric Turning Machine, one set of fabric singeing machine, one set of fabric brushing machine, 15 sets of fabric making machine produced in 2019, made in China, new 100%, taxable value is more than VND 16.4 billion. When the competent force conducted a physical inspection, it found that all machinery and equipment imported by the company were used goods and manufactured in 1999, 2001, 2002, 2003, 2004, 2006, 2014, 2016 and 2017.

For importing goods subject to import licensing but failing to the license, making false declarations about quality of goods and changing labels of some machinery in the imported shipment to avoid the detection of the State management agencies importing used machinery that are eligible for import implemented by Sunrise Textiles Co., Ltd., the Anti-Smuggling and Investigation Department issued a decision to prosecute the company. The Supreme People's Procuracy issued a decision to transfer the criminal case to the Investigation Police Agency for the Police of Tay Ninh province to continue investigating and handling.

Trang Bang Industrial Park Customs Branch implements physical inspection for the
shipment of machinery and equipment of Sunrise Textiles Co., Ltd. Photo

Enhancing legal compliance for businesses

According to a leader of Trang Bang Industrial Park Customs Branch, this is an area with a large number of businesses and revenue accounting for 80% of the total of the Tay Ninh Customs Department revenue, including many foreign-invested enterprises. In addition to facilitating enterprises in import and export activities, the prosecution for the firm contributes to strictly handling customs offences, requesting enterprises comply with the law in importing and exporting used machinery, equipment and technological lines that are conditional imports and implementing environmental protection, economic security and social order.

In 2020, Trang Bang Industrial Park Customs Branch sanctioned administrative violations against two companies importing machinery and equipment that do not meet conditions, standards and technical regulations. ICF Cable Vietnam Co.,Ltd imported used machinery and equipment in the production of electric cables worth US$133,707.87 (about more than VND 3 billion) but incorrectly declared names, types, origins, quantity, volume, quality and value of the imported goods that are not subject to tax.

Similarly, W.g Vietnam Co., Ltd. opened an import declaration for the shipment of overlocking machine used in the garment industry, worth more than VND 835 million. As per declaration, the goods are new 100% and manufactured in 2017. Through inspection, Trang Bang Industrial Park Customs Branch conducted physical inspection. The inspection results showed that all the machinery was used goods. However, there is not enough information to determine the manufacturing date.

Trang Bang Industrial Park Customs Branch issued a fine of VND 35 million for W.g Vietnam Co., Ltd. At the same time, the branch requested the company re-export the shipment.