HCM City Customs discovers 676 infringing shipments of goods in transit

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The infringing goods seized by Saigon port area 1 Customs Branch in November 2022. Photo: T.H

Many large cases

The leader of the Customs Enforcement Team under HCM City Customs Department Mr Ta Hong Khanh said on December 5, 2022, the team worked with Saigon port area 1 Customs Branch to inspect a transit shipment for false declaration and lack of a quarantine certificate.

According to the declaration, the above goods are raw materials for fruit juice production. Through a physical inspection, the Customs found all goods are fresh fruits. According to the regulations, the fresh fruits in transit must have a quarantine certificate, but the enterprise failed to present this document.

From the beginning of 2022 to November 30, 2022, the Saigon port area 1 Customs Branch worked with the anti-smuggling forces of the General Department of Customs and HCM City Customs Department to stop clearance for 1,300 shipments in transit (accounting for 1.3% of the total number of shipments in transit) with suspicious signs and conduct a physical inspection.

The branch detected 676 cases and fined nearly VND75 billion, the detection rate of violations accounted for 52%. In particular, Saigon port area 1 Customs Branch detected many violations related to the transit of goods with counterfeit trademarks, fake origin, intellectual property infringement, banned goods, lack of permits and animal and plant quarantine certificates. The total amount of fines is nearly VND2.5 billion.

On November 25, 2022, the Saigon port area 1 Customs Branch issued a decision to sanction an enterprise for the act of mis-presenting the name of goods and bringing goods in transit subject to quarantine without a quarantine certificate. Thus, the enterprise was fined VND34 million and forced to re-export for the goods.

Previously, inspecting a transit shipment according to the declaration 500366028601 dated September 29, 2022, the Customs Supervision and Enforcement Teams had doubts and decided on a physical inspection. They discovered that all 11 containers did not have quartz stone as declared by the enterprise but "stone powder". Saigon port area 1 Customs Branch made a violation record and fined VND83 million and forced the enterprise to re-export the goods.

In addition, the Saigon port area 1 Customs Branch also discovered many cases of goods in transit with mispresented names; lacking a certificate of animal quarantine for goods in transit subject to quarantine.

S.F.L Co., Ltd. declared an inaccurate quantity of goods in transit and did not present a permit for goods in transit required in the customs declaration No. 5003.2448,9640 with a total value of infringing goods of VND 338 million. The Saigon port area 1 Customs Branch issued Decision No. 29/QD-XPHC to impose a fine of VND34 million and confiscated the infringing goods.

Only conducting an inspection in case of violations

According to Deputy Director of HCM City Customs Department Nguyen Huu Nghiep, besides improving trade facilitation and supporting businesses to comply with the law on customs in transit activities, HCM City Customs Department has focused on controlling and resolutely fighting violations and taking advantage of transit services to illegally export to Cambodia through land border gates in Vietnam’s southwestern border provinces.

Accordingly, Customs will stop customs clearance and conduct physical inspections for suspicious shipments based on information sources such as Directives from the Standing Committee of the General Department of Customs; the Risk Management Department under the General Department of Customs; Instructions from the Customs Enforcement Team; Risk Management Unit of HCM City Customs Department; cargo screening; risk management records for risky goods and enterprises. The situation of violations in the field of customs for goods in transit is still a problem.

Specifically, smugglers have taken advantage of transit to transport banned goods, smuggled goods, goods subject to permits, fake goods, and goods with origin fraud and arbitrarily sell goods in transit in Vietnam, having a significant impact on the country's economy.

Following the direction of the Prime Minister, the National Steering Committee 389, the Ministry of Finance, the General Department of Customs, and the direction of the People's Committee of HCM City, the HCM City Customs Department has worked with relevant units to develop many measures to strengthen inspection, control and supervision of goods in transit.

In addition to the cases handled by HCM City Customs Department mentioned above, and many large cases beyond their authority, the department advised and proposed the City People's Committee to issue a sanctioning decision for administrative violations of hundreds of millions of dong.

Recently, the People's Committee of HCM City has issued a decision to sanction G.N. with an administrative fine of VND303 million for mispresenting the name of goods and transiting fake goods under customs declaration No. 500338520700 and forced to destroy the goods worth VND247 million.

How will customs procedures for goods in transit change?

Or the case of L.H.V International Trade Co., Ltd. Which declared an inaccurate quantity of goods in transit and failed to submit a permit for goods subject to a permit upon transit under customs declaration No. 5003.2569.8103 with a total value of infringing goods of VND410 million. The People's Committee of HCM City issued decision No. 344/QD-XPVPHC to impose a fine of VND33 million and confiscated all infringing goods.