In addition to facilitation to customs clearance, HCM City Customs department strengthens post clearance audit.

Strengthening post clearance audit

After being affected by the Covid-19 pandemic, HCM City Customs Department has strengthened post clearance audit since the early year. In the first five months of this year, the Post Clearance Audit Branch collected information related to 388 cases and issued decisions to conduct 114 post clearance audits. The branch issued decisions for tax assessment, increasing about VND37 billion of revenue for the State budget and meeting 92% of its target.

Border gate customs branches have strengthened post clearance audits at the border gates, detected many offences and collected large tax arrears. The Customs discovered U.S.G Co., Ltd (locating in District 7, HCM City) imported goods worth about VND11 billion but falsely declared tax exemption, leading to lack of tax payable.

On April 28, 2022, the Department issued Decision 64/QD-XPHC, to fine the company over VND470 million and collected over VND2 billion to the State budget.

Earlier, on March 10, 2022, the Department issued Decision 36/QD-XPHC, fining N.I Co., Ltd.-Long An branch (Ben Luc district, Long An province) over VND331 million for “failing declaration of code and tax rate for imports, but the company voluntarily paid the payable tax amount before the violation record was made. Infringing goods are production materials and spare parts for animal feed processing machines. The value of infringing goods is over VND36 billion.

Customs branches have gathered and checked information for case showing suspicious signs. Recently, L.L. Co., Ltd. (Chau Thanh District, Soc Trang province), 1st Zone Saigon Seaport Customs Branch detected that the company imported a shipment of diesel generators worth over VND5 billion but falsely declared category, HS code of goods, leading to the shortage of tax payable. The customs branch collected the tax amount and fined the company over VND125 million for the company’s violation.

Many cases show criminal signs

According to HCM City Customs Department, the Post Clearance Audit Customs Branch has discovered many serious violations showing criminal signs. The department transferred the case to HCM City Police for investigation. In the first five months of 2022, the department transferred two violations to the City’s Police.

At the end of May, the department transferred all records related to Zim Integrated Shipping Services (Vietnam) Co., Ltd. to the Investigation Police Agency.

On April 18, 2022, the branch made a record of administrative violations against the company for using illegal documents inconsistent with the actual transaction to declare tax, leading to the lack of tax payable or the increase in the exempted, reduced, refunded or non-collected tax amount. The infringing goods are worth over VND685 million.

On March 28, the branched made a record of administrative violations against Vietnam Intersnack Cashew Co., Ltd for using goods subject to tax exemption for improper purposes without customs declaration. According to the city’s Department, the department transferred the case to the HCM City Police for investigation.

In the last month of the year, the department will review and perform post-clearance audit for businesses showing suspicious signs of abusing exports to refund VAT. The department will continue to implement plans on inspection and identification of origin, prevention of origin and labeling of goods, infringing intellectual property rights.

It will also strengthen data collection and analysis targeted products and problems related to customs value, origin and code of goods.

The city’s department will also perform post clearance audits for high-risk firms and enterprises with complicated import and export activities, as well as businesses that implement import and export activities in many different areas. The Department will expedite the post clearance audit at enterprise's premises, detect and handle trade frauds, focus on detecting loopholes in customs clearance and polices to propose competent authorities for handing in a timely fashion.