Expose the trick of using forged documents to import scrap plastics of Duc Dat Company

	Tax Policy for destroyed products, waste products, scrap materials complying with provisions of Decree 134/2016/NĐ-CP
	Illegal scrap imports will be prosecuted
	Urgently find owners of more than 3000 containers of imported scrap

Customs authority is considering prosecution of many enterprises importing scraps. Photo Quang Hung

Initial clues

In mid-May 2018, the Criminal Investigation Team (Team 7, Anti-Smuggling Investigation Department under General Department of Customs) received profiles and documents related to Duc Dat Company from the Risk Management Department under General Department of Customs. By investigating the case file, and import and export data handed over by the Risk Management Department, Team 7 noticed many unusual circumstances. From 7 January 2017 to 31st March, 2018, Duc Dat Company registered 1,526 import declarations for plastic scraps at Hai Phong Customs Department, Ho Chi Minh City Customs Department and Ba Ria-Vung Tau Customs Department, and had 1,355 declarations cleared. Of which, 613 declarations (with a total weight of more than 12,000 tons, valued at more than VND 34 billion) were implemented at Ho Chi Minh City Customs Department; 720 declarations (with a total weight of 30,000 tons, valued at more than VND 35 billion) at Hai Phong Customs Department, and 22 declarations (with a total weight of 498 tons, valued at more than VND 1 billion) at Ba Ria-Vung Tau Customs Department.

However, by investigating, Team 7 knew that the company was in the sight of two local Customs Departments, Ho Chi Minh City and Hai Phong. Both Departments detected signs of violation by Duc Dat Company and conducted the investigation and verification.

Specifically, in December 2017, through verification, Hai Phong Customs discovered that the Certificate of Eligibility for scrap imports by the Ninh Binh Department of Natural Resources and Environment, and the written notifications of imported scrap consignment for inspection and Customs clearance presented by Duc Dat Company were forged. Shortly thereafter, Hai Phong Customs had written a request to transfer the case file to the Investigating Police - Hai Phong Public Security, for handling and investigation of the fabrication of the organization's seal or documents and use thereof (Article 341 of the Penal Code 2015).

Similarly, Ho Chi Minh City Customs also discovered that the Certificate of Eligibility for scrap imports presented by Duc Dat Company had signs of forgery. The Customs visited the registered address of Duc Dat Company, but the company did not operate at the registered address. The Customs also sent many invitation letters to Nguyen Duc Truong (Director) but Mr. Truong did not come.

The Anti-Smuggling and Investigation Department then asked the leaders of the General Department of Customs, to request the Ba Ria-Vung Tau Customs Department and Ho Chi Minh City Customs Department to promptly prepare copies of the scrap import dossiers of Duc Dat Company to hand over to the Department. By mid-June, 2018. The case dossiers were handed over to the Anti-smuggling and Investigation Department for further investigation and verification.

The Anti-Smuggling and Investigation Department (Team 7) received a total of 635 declarations for scrap plastics from Duc Dat Company. It is worth mentioning that Ba Ria - Vung Tau Customs received 22 declarations, Duc Dat Company used 22 copies of the certificates and 22 copies of notifications of scrap imports by Ninh Binh Department of Natural Resources and Environment with a total weight of 578.1 tons on paper, and the actual weight imported by Duc Dat Company to Cai Mep port, Ba Ria - Vung Tau was 498 tons. Along with the above certificates, Duc Dat Company registered the import procedures for 613 declarations at the Ho Chi Minh City Customs Department to Sai Gon port zone I and Sai Gon Port zone III, with a total weight of 12,547,328 tons.

How were the documents forged?

According to the Customs Newspaper, the import dossiers of scrap plastics by Duc Dat Company included: Certificate of Import Eligibility; Confirmation of blockade of accounts; and Notification of imported scrap consignment for inspection and customs clearance. Notably, with more than 1,000 sets of plastic scrap import dossiers, only one Certificate of Eligibility for scrap imports was issued by Ninh Binh Department of Natural Resources and Environment.

The Anti-smuggling and Investigation Department issued a written request for verification of the Certificate of Eligibility for scrap imports and list of 156 notifications of scrap imports, and was responded to by Ninh Binh Department of Natural Resources and Environment, that the Department did not issue Certificates of Eligible for scrap imports and 156 notifications of scrap imports to Duc Dat company.

A Customs officer in charge of the investigation revealed that: The signatory on the Certificate of Eligibility for scrap imports was a leader of Ninh Binh Department of Natural Resources and Environment, who retired on 12th September 2015, while the Certificate was signed on 14th September 2015.

Customs forces continued to contact Techcombank Gia Dinh to ask for assistance with verification. Techcombank checked its system and said that the bank did not issue any Confirmations of blockade of accounts to Duc Dat company.

Through the investigation and verification, Team 7 also identified all the Certificates of Eligibility of scrap imports, Notification of scrap imports and Confirmation of blockade of collateral assets submitted by Duc Dat Company to Customs were fake.

Regarding the origin of Certificate of scrap imports, Nguyen Duc Truong, Director of Duc Dat Company, had previously reported to Hai Phong Customs Department that the Company asked someone to apply for it (but failed to tell name, age and address). Specifically, in July, 2017, due to the scrap business’s needs, Mr. Truong asked someone to apply for the Certificate of Eligibility for scrap imports and this person gave him the Certificate.

According to Team 7, Duc Dat Company is no longer operating at the registered business address, and Nguyen Duc Truong is not present at the locality. The Team has repeatedly sent invitations and called Nguyen Duc Truong to the office, but Mr. Truong pretended to be working with the Investigating Police Agency under Hai Phong Public Security as an excuse not to go.

After identifying signs of illegal cross-border transport of goods, according to the provisions of Article 154 of the Penal Code 1999; Article 189 of the Penal Code 2015 (amended and supplemented in 2017); Article 39, Article 143, Clause 2 of Article 153, Article 154, Article 164 of the Criminal Procedure Code, on 17th July 2018, the Anti-smuggling and Investigation Department issued two decisions on the prosecution of criminal cases for illegal cross-border transport of goods for Duc Dat Trading Service Import Export Co. Ltd., in the port areas of Ho Chi Minh City and Ba Ria-Vung Tau, and transferred the case dossiers to the police agency for further clarification.

BR-VT Customs: proposed removal of problems related to imported scraps VCN - According to Ba Ria-Vung Tau Customs Department (BR-VT), during the customs clearance for imported scraps ...

In the same day, the Investigating Police Agency under Hai Phong Public Security has issued a decision to prosecute a criminal case with similar crime to Duc Dat Company. The prosecution is carried out for the import declarations made by the Company at Hai Phong Customs.