Bogus companies and smuggling - Part 2: Bogus companies are pointed out

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	Discovery a case of illegal import primitive weapons

The headquarters of Dieu Tien Co., Ltd which imported 2 tons of ivory is a grocery store. Photo: T.H.

However, the company did not re-export the goods to Cambodia but put the goods into the domestic market for consumption. Notably, when conducting a verification at the registered company address, the Customs Control Team under the Ho Chi Minh City Customs Department discovered that it was a bogus company with no real business address.

At the same time, Thanh Nhu Y Co., Ltd (Da Lat city, Lam Dong province) conducted import procedures at the Customs Branch of Saigon port, Zone 3. On the Customs declaration, a representative of the company noted that the shipment included more than 8 tons of electrical and electronic appliances, home appliances, worth over $US 3,500. Through physical inspections of the shipment, the Customs Branch of Saigon port, Zone 3 found many violated goods in the shipment of Thanh Nhu Y Co., Ltd, such as: conditionally prohibited goods with a value of 526 million vnd. Through verification of the business address, the company did not operate at the registered business address and avoided cooperating with Customs officers in the handling of the infringing shipment.

In order to create a clean business profile for importing prohibited goods and smuggled goods, perpetrators who have violated the Customs law often quit the old enterprise to establish a new enterprise, avoid the list of violated businesses with a high risk to continue their violation.

In recent years, the Ho Chi Minh City Customs Department has detected a number of large smuggling and commercial frauds. Businesses in the name of opening Customs declarations to import infringing goods were "fresh" and newly companies. At the end of 2016, PC46 – the HCM City Police in coordination with the Customs Control Team under the Ho Chi Minh City Customs Department and the Customs Branch of Saigon Port, Zone 1 conducted a search of a batch of goods classified in the Yellow Channel, including electronic goods and refrigerators. In order to smuggle these goods, when declaring Customs officers, the company declared that the goods were kaolin goods, originating from Japan, so the shipment was classified into the Yellow Channel. According to our understandings, this company was granted tax code on 13th July 2016 and came into operation on 15th July 2016. With the "clean" information, the company was not subject to specialized inspections and classified into the Yellow Channel.

According to the Customs Control Team under the HCM City Customs Department, the operation of enterprises has been under the control of many State agencies and departments. However, in recent years, there have been many bogus companies hiring non-qualified employees to import prohibited goods, smuggled goods for tax evasion. There are cases where the director of a company who is a non-qualified mechanic, a car mechanic knowing nothing about the establishment of enterprises, even those who have died for have long been still having their name on the business registration certificate granted by State agencies.

In order to solve bogus companies importing illegal and smuggled goods, the leaders of General Department of Vietnam Customs and the Ho Chi Minh City Customs Department have pointed out 78 bogus enterprises to take preventive measures. In addition, the anti-smuggling force of the Ho Chi Minh City Customs Department has listed key enterprises which often violate the Customs Law in the field of sensitive business transactions, temporary import for re-export, transit at the border gate; or companies which leave their business addresses without notifying by the tax office; companies regularly cancel their declarations (when the goods are subject to physical inspections) or companies which change their route, destination port and consignee name on the manifest; or companies which leave their business address then set up another company; companies which regularly register for goods inspections during peak hours; or individuals who regularly import goods. Also, Customs officers have noted enterprises which regularly carry out entrusted import-export contracts and businesses doing business in the field of bonded warehouses.

The HCM City Customs Department has also recommended that when granting a license to establish an enterprise or change a business registration, the competent authorities must verify the legal representatives and the address of businesses to prevent bogus businesses from using fake documents for performing procedures. If the competent authorities can do this well, bogus companies will be reduced and the investigation will be more favorable and easier to identify the perpetrators standing behind bogus enterprises.

Bogus companies and smuggling - Part 1: Escaping when being detected VCN- Establishing many companies and conducting Customs clearance of goods as usual, but when bogus companies were ...