General Department of Vietnam Customs informed about the case of aluminum warehouse of $4.3 billion in Vung Tau

An corner of aluminum warehouse related to the case which was mentioned by the Director General of Vietnam Customs. Photo: Tuoitre Ho Chi Minh City Newspaper.

The General Department of Vietnam Customs has just released information related to the aluminum warehouse valued at $4.3 billion in Ba Ria-Vung Tau.

Recently, the media reflected on the issue regarding the General Department of Vietnam Customs stated the case related to the Customs' coordination with concerned ministries, sector, US Customs and Border Protection Agency (CBP) in strictly supervising the shipment of aluminum valued $4.3 billion of a company at Ba Ria - Vung Tau to prevent the risk of fraudulent origin when exporting to the US.

According to information from the General Department of Vietnam Customs, Global Aluminum Company Limited (headquarter address: My Xuan B1 Industrial Zone - Conac, My Xuan Ward, Phu My Town, Ba Ria - Vung Tau Province) is an export processing enterprise, therefore, the export and import goods of the company were not subjected to tax as prescribed in Article 2 of Law on Import and Export Tax No. 107/2015/QH13 dated April 6, 2016, Decree 134/2016/ND-CP dated September 1, 2016.

Under the provisions of the Customs Law, imported goods for export processing of enterprises are subject to customs supervision from the time of import, throughout the production process, until the products are exported to foreign countries.

After completing customs procedures, the imported aluminum of Global Aluminum Co., Ltd were taken to the factory to produce a part, the other part were sent to outsource yards in accordance with Article 47. Decree No. 118/2015/ND-CP, Article 80 of Circular No. 38/2015/TT-BTC, including: Phu My General Petroleum Service Port Company (PTSC Company yard, TH Thi Vai yard), PTL Logistics Services Co., Ltd, Thanh Chi Joint Stock Company.

From 2015 to September 30, 2019, the total amount of imported aluminum was more than 2.44 million tonnes and 400,000 tonnes were exported.

On average, the company has imported 488,000 tonnes/year, while exporting only 80,000 tonnes/year (equivalent to 16.3 percent of annual import and 40 percent of capacity compared to designed capacity).

Import activities decreased significantly in 2019, as of September 30, 2019, the import amount was more than 64,435 tonnes, relatively consistent with the average annual export volume.

Currently, the company is storing more than 1.8 million tonnes of aluminum in outsourced warehouses and more than 200,000 tonnes of aluminum in the factory, worth about $4.3 billion.

The aluminum raw materials are imported mainly from China, Mexico, the US, Australia, Russia, Mexico, Malaysia and Indonesia.

Finished products of aluminum are exported to many different countries such as Canada, Egypt, India, Malaysia, Indonesia, Singapore and the US.

According to the General Department of Vietnam Customs, the supervision of goods leasing outsourced yard of the Company is closely monitored by the Customs authority through the form of surveillance cameras at gateway and whole area of yard and yard for lease with fencing wall. Customs officials also patrol and supervise regularly.