Customs continues to fight origin fraud

Chinese goods counterfeited brands are discovered and seized by Unit 1 (Anti-Smuggling and Investigation Department) and Hai Phong Port Area 2 Customs Branch (Hai Phong Customs Department) in June 2021. Photo: T.Bình

Actively fighting

According to Mr. Nguyen Hung Anh, facing complex developments related to origin fraud and illegal transshipment, the Customs sector has actively implemented a series of solutions and measures to prevent and combat these acts.

Specifically, since 2019, many documents and directives have been issued to guide units to synchronously implement solutions to combat fraud, forgery of origin, improperly labeling goods, transmitting goods illegally and intellectual property rights infringement.

“Especially, in 2021, the General Department of Vietnam Customs issued Decision 1293/QD-TCHQ dated March 17, 2021 on the implementation of the plan to combat smuggling and counterfeiting, protect intellectual property rights, and fight origin fraud and illegal transshipment," the Director of the Anti-Smuggling and Investigation Department said.

At the same time, leaders of the General Department of Vietnam Customs directed units such as the Anti-smuggling and Investigation Department, the Post-Clearance Audit Department, and local customs departments to actively study regulations on conditions and standards for determining the origin of exported Vietnamese goods; researching import and export activities of a number of enterprises, thereby identifying risks, methods and tricks of fraud and forgery of origin.

Another important measure is to collect and analyze information in the country and abroad to identify goods and enterprises which have high risk of fraud, forgery of origin, labeling of goods; reviewing and identifying transactions and import-export companies that have a sudden increase in import-export turnover compared to their capacity and production scale to collect and consolidate information, conduct verification and investigation to clarify signs of violation.

The Customs force has strengthened the measures through the implementation of plans to verify and clarify specific goods and suspects. In 2021, 15 key commodity groups have been identified with high risk of fraud, forgery of origin, and illegal transshipment. At the same time, the customs force has focused on identifying key products that are goods directly affecting the interests of consumers such as fashion items (clothes, shoes, bags, etc.) types of food and beverage goods that are of poor quality, violating regulations on labeling; products serving Covid-19 prevention.

“Through the struggle, a number of methods and tricks of origin fraud have been discovered such as: enterprises imported goods from abroad into Vietnam, label goods of Vietnamese origin and then exporting them, or the enterprise had a production line but the exported products that did not meet the requirements of Vietnamese origin as prescribed by law. There was a situation that the goods were ordered to be manufactured from abroad before being imported to Vietnam but the information on the brand and the address of the head office was written in Vietnamese and printed the words ‘Made in Vietnam’ on the packaging to deceive consumers," Mr. Nguyen Hung Anh said.

In addition, some enterprises declared to import components/materials for export production and processing or domestic consumption, but in fact, the product was almost complete, did not need to go through a manufacturing stage or only underwent simple processing and assembling stages. So it did not meet the origin criteria as prescribed. There were enterprises that did not have the function of issuing C/O but have designed the C/O form by themselves to grant to other enterprises for export.

Another method was taking advantage of channelization of goods without conducting physical inspection to cheat the quantity and type; making the incorrect declaration, failure to declare on the declaration the trademarks of imported goods; goods in transit; goods smuggled through trails and roads; and mixing infringing goods and non-infringing goods for smuggling.

Five solutions

In order to continue to effectively fight against fraud of origin, the Director of the Anti-smuggling and Investigation Department proposed five groups of solutions.

First, perfecting mechanisms and policies in the field of origin of goods on the basis of Decree 31/2018/ND-CP to create a legal corridor to help competent forces in the process of law enforcement.

Second, the Ministry of Finance (General Department of Vietnam Customs) continues to coordinate with the Ministry of Industry and Trade (Import-Export Department), the Vietnam Chamber of Commerce and Industry (VCCI) and industry associations to implement the inspection in order to prevent fraud and forgery of origin.

Third, strengthen communication and dissemination of legal provisions on the origin of goods, fight fraud, forgery of origin, and illegal transshipment in order to improve the capacity of inspection and detection of fraudulent cases for customs officers and employees; raising the awareness and law observance of the business community.

Fourth, enhancing the effectiveness of international cooperation, ready to connect and exchange information, cooperate closely with customs authorities of other countries and the Regional Intelligence Liaison Office for Asia - the Pacific of World Customs Organization (WCO) to promptly collect information and coordinate in verifying C/O showing signs of fraud, forgery of origin, illegal transshipment, and to protect the legitimate interests of enterprises operating business honestly and protecting consumers.

Finally, continuing training for customs enforcement forces to improve their capacity and understanding in this field, promptly detecting new methods and tricks used.