Not paying nearly 8 billion VND of tax, Nguyen Le Company is forced to stop implementing customs procedures

Wood was imported to Hai Phong port. Photo: T.Bình

According to Post Clearance Audit Customs Branch (Hai Phong Customs Department): Through reviewing, researching information and post-clearance audit results of Nguyen Le Import Export Production Trading Company, Customs authority defined that the company declared and carried out clearance procedures for imported wood shipments originating from Republica de Equatorial Guinea, and was applied the preferential import tax rate of 0%.

However, in accordance with provisions in Paragraph 3 Article 5 of the Law on Import - Export Tariff; Decision No. 36/2016/QD-TTg of the Prime Minister stipulating the application of ordinary tax rates to imported goods; Official Letter No. 622/BTM-PC dated 26/01/2007 of Ministry of Trade (now is Ministry of Industry and Trade); Document No. 1244/BCT-DB dated 09/02/2018 of the Ministry of Industry and Trade on the most favored nation in trade relations with Vietnam; Official Letter No. 1060/TCHQ-TXNK dated 27/2/2018 of the General Department of Vietnam Customs about the absence of most favored nation agreement of Republica of Equatorial Guinea and special privileges in trade relations with Vietnam.

Accordingly, imported goods originating from Republica of Equatorial Guinea are subject to a normal import tax rate of 5%, and the Hai Phong Customs Department has issued a tax assessment decision for the Nguyen Le Import Export Production Trading Company.

Representatives of Haiphong Post Clearance Audit Customs Branch said that: After issuing the tax assessment decision, the unit has taken many measures to urgently recover debts, such as issuing many official notices, urging the company to pay tax; Inviting legal representatives of the company to come to the headquarters of the customs authority for working, dialogue on the discharge of duty to pay taxes, exchange documents with state management authorities...

However, legal representatives of the Company did not come or respond, and failed to fulfill their tax obligations. On the other hand, the issuance of a document in order to propose for reducing import tax rates and extending time for tax payment as prescribed by law does not have any basis for implementation.

Remarkably, according to Hai Phong Post Clearance Audit Customs Branch, in the same case as Nguyen Le Import Export Production Trading Company, other companies such as Thang Long Timber Joint Stock Company, Dai Loi Trading Company. DHS Vietnam, Vietnam Forestry Corporation, New Wood Company, ... have complied well with paying the fixed tax amount and the late payment amount to the state budget with a total amount of over 30 billion VND.