Identify trade fraud methods in Lang Son province

Mobile container screening at Huu Nghi Border Gate Customs Branch. Photo: H.Nu

From the end of 2020, to prevent the Covid-19 pandemic, the Chinese Government applied a “Zero Covid” policy, implemented a border fence with 3-4 m and set up guard posts with a camera system and loudspeakers… In addition, the law enforcement forces took strict measures to control trails and border crossings in Lang Son Border, so smugglers and illicit transporters stopped their operations.

According to competent agencies, the smuggling and trade fraud methods are more sophisticated to outsmart the detection of law enforcement forces, especially trade frauds, via official quota import.

Objects have taken advantage of legal entities, establishment and management of enterprises, online customs declaration process, and classification of goods into the green and yellow channel to falsely declare a name, quantity, category, code, or origin of goods for trade fraud, trading in counterfeit goods, goods and services infringing intellectual property rights, goods and services banned from business or benefiting a large number of tax refunds.

Through online supervision, Huu Nghi Border Gate Customs Branch has detected many trade frauds in customs declaration for goods imported from China to Vietnam. Notably, although the origin of the goods has been declared in China, the actual goods were labelled Japanese, Korean, and Indonesian.

In 2022, Lang Son Customs Department detected and handled 298 notices via the management system. As a result, the department collected about VND2.3 billion and fined about VND800 million.

From the beginning of the year, the department has handled 79 violations with the value infringing goods of over VND18 billion and seized 351.5 kg firecrackers. This figure decreased by 31.89% in the number of violations but increased by 426.37% in value compared with 2022.

Lang Son Customs Department has issued a decision to sanction 78 cases of administrative violations and collected over VND 486 million, transferring two cases of 351.5 kg firecrackers to the Police. In addition, the local customs department has created and processed eight notices, including handling four notices and collected over VND 100 million and fined VND20 million.

On February 21, Huu Nghi Customs Branch shifted the goods channel of Xuan Thang Loi LS One Member Co., Ltd and fined this company VND 86 million and collected tax arrears of 43 million.

On January 17, Huu Nghi Customs Branch changed the channel for assembled toys imported by Hoang Bao Global Logistics Joint Stock Company. At the end of 2022, the Branch also changed the goods channel of Order HIP Import-Export and Trading Development Co., Ltd due to suspicion of failing to declare or falsely declare the number of goods. This company has violated and has been fined many times.

The violations have shown that some enterprises have abused preferential policies in customs declaration for trade fraud, especially fraud related to e-commerce, origin, intellectual property, and protected industrial design property for profit.

Deputy Manager of Tan Thanh Customs Branch Phung Van Ba: Take operational measures

Over the past time, Tan Thanh Customs Branch has drastically taken measures to closely supervise and control vehicles carrying imported and exported goods across the border gate; reviewed and inspected sites and places gathering goods, and warehouses to tackle sites for storage of smuggled goods.

Despite strict control, many suspects still illegally transported goods into the domestic market under many tricks. For example, smugglers have hidden goods under cabins and extra seats of empty containers that are allowed to implement re-export procedures to outsmart the detection of the enforcement force.

Shortly, Tan Thanh Customs Branch will take operational measures and use specialized equipment in customs control and supervision for goods and vehicles in and out border gate.