One more case of smuggling cashew nuts prosecuted

Inside the cashew nut processing factory of Phuc An Company. Photo: N.H

According to the case dossier, through inspecting the use and inventory of raw materials, supplies and exported goods at Phuc An Company, Binh Phuoc Customs Department discovered the actual inventory of raw cashew nuts at this enterprise was lacking 13,285 tons, equivalent to VND 555 billion in terms of value which was calculated following the average unit price of raw cashew nuts imported in 2016, 2017 and 2018. The import duty calculated by the average method was VND27.8 billion.

Through coordination and information exchange with the Anti-Smuggling and Investigation Department - General Department of Vietnam Customs, Binh Phuoc Provincial Police and Binh Phuoc Provincial People's Procuracy, Binh Phuoc Customs Department investigated and verified the case.

The investigation results showed that, from 2013 to 2018, Phuc An Company opened 121 import declarations of raw cashew nuts under the type of imported materials for export production with a volume of 26,174 tons, and taxable value of nearly VND 1,116 billion.

After that, the company registered to make 17 additional declarations to add the difference in the amount of 226,749kg of raw cashew nuts; as of December 11, 2018, the amount of raw cashew nuts imported by the company was 25,892 tons.

Among the imported raw cashews, the company only opened one declaration for changing use purpose to domestic consumption under the type A42 with a quantity of raw cashew nuts of 55,451 kg and opened 149 export declarations under the type code E62 with a volume of 2,343 tons of finished cashew kernels, equivalent to 11,717 tons of raw cashew nuts which were put into production.

The company also re-imported the number of exported goods returned under type code A31 with the amount of 11 tons of finished cashew kernels, equivalent to 55 tons of raw cashews. Thus, the amount of finished cashew nuts exported was 2,332 tons, equivalent to 11,662 tons of raw cashew nuts according to the declared norm, the amount of raw cashew nuts that had not been produced was 14,230 tons.

Meanwhile, at the end of December 2018, the actual inventory of raw cashew nuts at the warehouse of Phuc An Company was only 160 tons of finished cashew kernels which were equivalent to 798.8 tons of raw cashew nuts. Thus, the difference between the actual inventory and the declared amount of raw cashew nuts was 13,285 tons, valued at VND 555 billion and the tax amount that was temporarily calculated was nearly VND 27.8 billion.

Regarding the violations of cashew nuts, recently, many smuggling cases have been prosecuted. Specifically, from the results of coordination with the Post-Clearance Audit Department - General Department of Vietnam Customs, on November 22, Binh Phuoc Provincial Police issued a decision to prosecute the accused and arrest Phan Ba Hiep (50 years old, living in Long Thuy ward, Phuoc Long town, Binh Phuoc province) and Ngu Ngoc Hung (51 years old, living in Binh Thanh district, Ho Chi Minh City) to investigate the crime of smuggling. Those two suspects colluded to take advantage of the legal entity of Thao Vy Company (located in Phuoc Long town) to import more than 575 tons of raw cashew nuts, worth more than VND27.6 billion from abroad under the form of importing raw materials for export production.

However, this amount was not put into production and exported following the provisions of the law. It was consumed domestically in order to gain illicit profits.

Previously, on November 11, 2022, the Investigation Police Agency of Binh Phuoc Provincial Police decided to prosecute the accused and issue an arrest warrant for Hoang Van Phi, Director of Phuong Phi Trading Production One Member Co., Ltd. (located in Phuoc Long town, Binh Phuoc province) for the crime of “smuggling”. This was also the case that started from the inspection activities of the Post-Clearance Audit Department.

This enterprise imported more than 1,000 tons of raw cashew nuts in the form of importing raw materials for export production, but they only produced and processed 265 tons of raw cashews into 53 tons of cashew kernels for export. The remaining raw cashew nuts, which were nearly 835 tons, were consumed domestically without declaring it to the customs office as prescribed.