HCM City Customs: Tax arrears arise from Customs post-clearance audits

	The Central Committee of the Vietnam Fatherland Front supervises the HCM City Customs Department
	HCM City Customs and TCS solve problems for import-export enterprises
	Tam Phuc company continuously smuggles through Cat Lai port

A Customs officer of the Customs Branch of Saigon port, Zone 1 check goods. Photo: T.H.

According to the investigation at Customs Departments with tax arrears, the main reason was that enterprises imported goods massively declared at a low price and refused price consultations. When Customs officers carried out Customs post-customs audits in accordance with regulations, enterprises did not cooperate and many individuals escaped from the registered business address.

The Deputy Director of the Customs Branch of Tan Son Nhat International Airport, Mr. Tran Ngoc Anh said that the tax arrears of the Customs Branch of Tan Son Nhat International Airport were about 10 billion vnd, with 7 billion vnd due to tax assessment from Customs post-clearance audits, but enterprises escaped, and it was difficult to recover the tax arrears.

Specifically, Phu Phat Trading and Development Co., Ltd imported electronic components, memory cards, declared at a low price and then "avoided" price consultation for Customs clearance. When Customs officers conducted post-clearance audits with a tax assessment of nearly 5 billion vnd, the company ran away.

After verifying representatives of this company, Customs officers found a 19-year-old girl and a 21-year-old girl. But both of them said that they did not know anything about the company. Accordingly, the company may take advantage of their application to set up a business, import goods and evaded taxes.

The Deputy Manager of the Customs Branch of Saigon port, Zone 1, Mr. Le Van Nhien said that in nearly 100 billion vnd of tax arrears arising mainly due to the results of Customs post-clearance audits, enterprises did not pay taxes. Only in June 2016 and July 2016, Gia Hung Thinh Building Materials Company Limited and Phuc Giang Construction Company Limited (located at 63 Nguyen Ba Huan Street, Thao Dien Ward, District 2, Ho Chi Minh City) opened dozens of Customs declarations to import floor tiles through Cat Lai port, declared at a low price and refused price consultation in accordance with current regulations. When Customs officers conducted post-clearance audits, enterprises did not cooperate or operate at registered business address and leaving a tax debt of more than 3.4 billion vnd.

Similarly, in August 2016 and September 2016, Nguyen Phung Co., Ltd (located at 17 Ho Ba Kien Street, Ward 15, District 10, HCM City) opened 17 Customs declarations for frozen food imports, including legs, wings chicken thighs, frozen potatoes and pig feet originating in Australia, Brazil, Poland at low prices, and only paid over 324 million vnd for taxes. Detecting the unreasonable price declaration, the Customs Branch of Saigon port, Zone 1 asked for price consultation, but the company did not agree, and Customs agencies had to conduct Customs clearance according to current regulations, and transfer dossiers for the Tax Administration Team to conduct Customs post-clearance audits with a tax assessment of 3.7 billion vnd.

Thus, compared to the amount of real taxes paid at the time of clearance (324 million vnd), the company also had to pay an addition of nearly 3.4 billion vnd, but till now, the company has fled from the registered business address.

In May and June 2016, Red Bear Company Limited opened 28 Customs declarations of importing frozen products such as wings, legs, thighs of chicken; and frozen salmon head with very low prices. Then, the Customs Branch of Saigon port, Zone 1 conducted Customs post-clearance audits with a tax assessment of more than 4.7 billion. Or Van Thinh Co., Ltd. and Asia Join Co., Ltd which were licensed in May 2016, located at 475D, Le Trong Tan, Son Ky Ward, Tan Phu District, HCM City imported dozens of frozen chicken shipments, declared at low prices for Customs clearance of goods as mentioned above. Both companies left tax arrears of more than 10 billion vnd after Customs officers conducted post-clearance audits and tax assessment.

According to the Ho Chi Minh City Customs Department, although the Law stipulates that enterprises must pay taxes before clearance but the tax arrears always increase. By 28th February 2017, the amount of tax arrears over the same period in 2016 was nearly 809 billion vnd. The cause of the above-said tax amount was that after Customs officers conducted tax assessment, enterprises failed to comply with the Law or they even ran way or stopped their operations at their business registration address; tax arrears arising due to taxes on goods manufactured for export of enterprises which do not come for contract liquidation; goods of national defense and duty-free goods, awaiting tax exemption decision and some cases awaiting for cancellation of declaration.

The Deputy Manager of the Customs Branch of Saigon port, Zone 1, Mr. Le Van Nhien said that Customs officers applied many measures to recover tax arrears in accordance with the Law on Tax Administration, except 2 difficult measures to apply. In order to promptly take appropriate measures to recover tax debts for the State budget, the Customs Branch of Saigon Port, Zone 1 has reviewed the list of 17 enterprises importing frozen food and ceramic tiles declaring at low prices in 2016 to carry out the recovery of tax debts. In the cases where companies deliberately refused to pay taxes, Customs officers shall transfer their dossiers to the police offices for assistance in searching the manager

Regarding difficulties in dossiers for tax exemption, the Deputy Manager of the Customs Branch of Saigon Port, Zone 4, Mr. Le Chien Thang said that the tax arrears were mainly from inactive enterprises or enterprises which go bankrupt. However, the tax exemption of debts only applies State-owned enterprises without applying companies limited or private enterprises, which caused a lot of difficulties.

HCM City Customs: Many breakthrough programs in Customs modernization VCN- In order to support and serve more than 30,000 enterprises to carry out import and export ...

In order to recover tax arrears effectively, the Deputy Director of the Ho Chi Minh City Customs Department, Mr. Nguyen Huu Nghieng has directed to establish a team to collect debts from Customs Departments to Customs Branches, update the list of enterprises with tax debts, tax arrears, the director's name, business address for publicizing on the mass media. For recent cases, the HCM City Customs Department will consider transferring to the police to coordinate for searching business managers and recovering tax arrears.