Bac Ninh Customs: Examines the differences of raw materials records and collects over 2 billion vnd of Tax arrears

Over 90% of enterprises which export and import goods through areas under management of the Bac Ninh Customs Department, are highly appreciated for the strict compliance of the Customs Law

Talking with the Customs newspaper’s correspondent, Mr.Le Thanh Trong - the Team Leader of the Post Clearance Audit Branch of Bac Ninh Customs Department said, in 2016 based on the plan of Post Clearance Audit of the General Department of Customs, the Branch reviewed the export production form in some enterprises to enhance the effectiveness of the management for this form. In which, the outstanding case was that of the Scharmm SSCP Hanoi Co.,Ltd - a paint production enterprise and suplier of paint additives for plastic products and metal products (covers of mobile phones, spare-parts for automobiles and motorcycles, laptops and electronic products).

The Branch established an Inspection Team to examine the actual existing amount of materials for finished paint production of importing materials for export production in the Company at the end of November 30, 2015 in the Company’s liquidation dossier of tax refund.

At the Company, the storekeepers of the materials and finished product warehouses provided for the Inspection Team the list of the actual existing amount of importing materials for export production in the Company at the end of November 30, 2015, including: the amount of inventories of importing materials for export production (including the amount of inventories of materials in the rental warehouse); the inventories of the finished product in the finished goods stores (including inventories of the finished product in the rental warehouse) of the importing materials for export production which were converted into the materials; the amount of materials and semi-finished product in the factories and stores of the importing materials for export production (which were converted into materials).

However, through inspection and comparison of the actual amount of the inventories of the materials and the amount which was declared by the enterprise, the Inspection Team detected differences in each material. Especially, some of the materials such as: SILK CLEAN 3700 Additive, inventories under the Customs declaration was 1,820.22 kg but the actual inventory was only 783.97kg (1,036.25kg difference); Polyacrylic substance in organic solvent, the inventory under the Customs declaration was 5,315.21 kg but the actual inventory was only 2,053.37 kg (the difference was 3,261.84 kg); monomer TMPTA liquid virgin resin, the inventory under the Customs declaration was 6,052.99kg but the actual inventory was only 1,835.81 kg (the difference was 4,217.18kg). In which, there were some code of materials which had significant difference, such as: Olefin Hi-Mat 102A wax dispersed in an organic solvent, the inventory under the Customs declaration was 22,448.1 kg but the actual inventory was only 3,349.03 kg (a difference of 19,099.07 kg); Acrylic RAC-7340 liquid virgin resin, the inventory under the Customs declaration was 18,541.32 kg but the actual inventory was only 6,102.79 kg (a difference of 12,438.53 kg); Acrylic RAC-SR40 liquid virgin resin, the inventory under the Customs declaration was 20,650.47kg but the actual inventory was only 6,296.57 kg (a difference of 14,353.90 kg).

There were total of 27 codes of materials with differences between the Customs declaration and the actual inventory in the business’s warehouse.

With the false declaration of the contents in the dossier of tax refund liquidation as above, the Inspection Team imposed tax for the imported materials for export production under the Customs declarations of imported materials for the period January 7, 2011 to January 7, 2016 at Tien Son Inland port Customs Branch of the Schramm SSCP Hanoi Co., Ltd with a total imposed tax of 2,343 billion vnd (in which imposed import duty was over 737,968 million vnd and VAT was over 1,605 billion vnd).

Besides, the Inspection Team also implemented administrative punishment of 20% of the tax equalling more than 468,747 million vnd. Thus, the Schramm SSCP Hanoi Co.,Ltd must pay more than 3,080 billion vnd to the State budget. All this money has been paid into the State budget.

This is one of the typical post clearance audit cases in the Bac Ninh Customs Branch. In the first 11 months of 2016, the Bac Ninh Customs Branch has strictly implemented the plan of the post clearance audit in 2016. Based on risk management criteria, the Branch focused on reviewing the form of process and export production and HS codes to carry out inspection on the inventory of material with the amount below the Customs declaration, the HS code and the tax rate declaration. On the basic of the conclusions of the inspection, Customs detected the violations on the false declarations of HS codes that lead to the false declaration of import tax rate; false declaration in the liquidation dossier lead to insufficient tax, made false declaration for the imported goods.

Bac Ninh Customs: Accelerate collection of State revenue VCN- In the first 6 months of 2016, the State budget revenue of the Bac Ninh Customs ...

Through the post clearance audit which does not only help the enterprises enhance the awareness of goods compliance of Customs legislation in the business community, but also helps businesses to limit mistakes, especially in Customs declaration. More than 90% of enterprises which have import/export operations through areas which are managed by the Bac Ninh Customs Branch are highly appreciated in good compliance the Customs legislation.