Detecting many offences in importing fertilizer materials

	Entanglement in fertilizer management
	"It is necessary to apply the self-defense tax on fertilizers"
	Strictly handling organizations and individuals manufacturing and trading fake fertilizers

Inspecting fertilizer materials at Cat Lai Port. Photo: T.H

False declaration of Tax code

The Inspectorate Division under the Ho Chi Minh City Customs Department has inspected 2 companies importing fertilizer materials and detected that these companies have many offences in Tax declaration and payment for fertilizer, so the Division has proposed to collect Tax arrears of over VND 12 billion to the State budget.

Through the specialized inspection at the headquarters of V.T.P Fertilizer and Chemicals Company from 2013 to 2017, the Inspectorate Division has detected that this company falsely declared on goods code, import duty rate, and VAT rate in 158 Customs declarations at many Customs branches in Ho Chi Minh City. Imported items in these declarations include Magnesium Sulphate, Iron Sulphate, Sodium Sulphate, Humic Acid used as an additive for manufacturing of detergents, raw materials for manufacturing fertilizers or fertilizers of all kinds, and these goods are 100% new.

The Division detected that the company falsely declared code and import and export duty rate of these goods. Specifically, the company falsely declared code and import duty rate of “Dinatri sulphat” item of all types in 99 Customs declarations, leading to the insufficiency of taxable amount of over VND 3 billion; falsely declared code of goods, and import duty tax rate of magnesium sulphate in 46 Customs dossiers, leading to the insufficiency of taxable amount of over VND 735.6 billion. The company’s offences leads to the insufficiency of tax payable of over VND 4.6 billion, of which, import duty is over VND 3.8 billion and VAT is over VND 748 million.

In addition, regarding the additional fees into the dutiable value of 849 declarations, the Inspectorate Division determined that the company must pay an additional amount of over VND 810 million. Of which, import duty is VND 234.7 million and the VAT is VND 576.6 million. The company confirmed and agreed to pay the additional tax arrears, fines for administrative violations and late payment in accordance with regulations to the State budget.

Tax rate in hundreds of declarations is falsely declared

Similarly, through the inspection at H.N.N Company for the dossiers of fertilizer materials imports from 1st January to the end of 31st December 2017, the Inspectorate Division has concluded that this company falsely declared code, tax rate of items leading to the tax payable of nearly VND 7 billion.

Accordingly, through the inspection for 79 Customs declarations of fertilizer material imports, the Customs authority discovered that the company falsely declared the code and import duty rate for items identified as magnesium sulphate, Cobalt Sulphate, Zinc Sulphate, Copper Sulphate, Magnesium Oxide used for manufacturing of detergents, raw materials for manufacturing fertilizers or fertilizers of all kinds, and these goods are 100% new. The false declaration leads to the insufficiency of dutiable import and VAT of nearly VND 2.3 billion. These import items of 79 customs declarations are processed at Customs Branch of Saigon Port Zone 1.

At the same time, this company also falsely declared the VAT rate of items identified as "materials for production of fertilizers of all kinds” in 297 Customs declarations. The false declaration leads to the insufficiency of tax payable of over VND 4.6 billion. For the additional fees into the taxable value, the company must pay an additional amount of over VND 46 million for 873 shipments, equivalent to 873 sets of Customs dossiers. The company has not presented documents of the remaining 319 declarations. This company also proposed to continue adding documents after the inspection.

Besides, through the inspections, the Inspectorate Division has detected that the company has imported 67 shipments of inorganic fertilizer that violated the specialized management policy. Of which, 63 shipments have eligible certificates but without the State quality inspection results, and 4 shipments do not have eligible certificates and the State quality inspection results. The total violation amount is over VND 37 billion. The Ho Chi Minh City Customs Department has issued an Official Letter to report to the Legal Department to guide the determination of acts of violations, and at the same time, for the sanctioning of administrative violations.

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According to the Inspectorate Division’s leader, through the explanations from the company and the inspection results and checking dossiers, and basing on legal documents in each application period, the Inspection team recognized that although the company did not intentionally violate, documents presented by the company were not appropriate, and the company did not submit any additional documents and reference in accordance with the legal normative documents to change the assessments by the Inspection team. The company has not studied regulations related to the import and export activities and it mainly hires Customs brokers for carrying out Customs procedures.

The Inspection team has proposed the leader of the Ho chi Minh City Customs Department to impose and collect tax arrears to the State budget for these two companies.