Police investigate enterprise importing banned goods camouflaged as furniture

Imported arcade game machines were seized by HCM City Customs. Photo: T.H

According to the Saigon port area 1 customs branch, on June 19, 2019, Sun World Logistics Co., Ltd. (District 4, HCM City), registered a customs declaration at Saigon port area 1 customs branch for importing a shipment of 16 items which were MDF desks with preferential import tariff rate was 25%, the declared value of more than VND 48 million.

Through physical inspection, the Saigon port area 1 customs branch in coordination with the Southern Anti-Smuggling Enforcement Unit (Anti-Smuggling and Investigation Department - General Department of Vietnam Customs) discovered the shipment was 37 used arcade game machines with a preferential import tariff rate of 20%.

Initially, Customs identified the value of the infringing shipment was nearly VND 3 billion (62 times higher than the declaration of the enterprise), the difference in tax increased by some VND 931 million.

Saigon port area 1 customs branch determined Sun World Logistics Co., Ltd. has committed violations of importing goods due to incorrect declaration of goods names, import of goods in the list of goods banned from import according to provisions of Section 4, Part II, Appendix I of the List of goods banned from import and export, issued together with Decree No. 69/2018/ND-CP of the Government dated May 15, 2018. Thus, they made a record of administrative violations in customs to expand verification and investigation.

Working with the Customs authority, Phan Van Thao, Director, legal representative of Sun World Logistics Co., Ltd said the company did not negotiate and sign contracts directly with foreign firms. They just accepted to import this shipment through a logistics service company in Australia. However, Thao said he did not know the address of this company because he only contacted them via email and phone.

Thao added that according to the initial notification from the logistics service company in Australia, the above shipment was a desk made of MDF boards and not used arcade game machines. This shipment was requested by a logistics service company in Australia that Sun World Logistics Company Limited transported to Vietnam for delivery to a customer in Vietnam.

However, who was the customer in Vietnam, Sun World Logistics Co., Ltd did not know the name. After the goods arrive in Vietnam, the foreign company would give specific announcement of the recipient's name and address, the firm was only responsible for transportation to enjoy the service fee, the payment of the goods by the Vietnamese buyer and the Australian counterpart would make payment themselves.

According to the Saigon port area 1 customs branch, the shipment carried out customs declaration and was classified to the yellow channel system - exempt from physical inspection. However, when detecting suspicious signs, the customs declaration was stopped clearance and changed to the red channel for conducting physical inspection. When detecting violations, Sun World Logistics Co., Ltd. did not present goods for inspection, avoiding liability and avoiding inspection of the Customs authority.

The Saigon port area 1 customs branch sent an invitation letter, but more than two months from the date of opening the customs declaration, Sun World Logistics Co., Ltd. sent a representative to inspect the goods.

Based on the verification, collecting evidence and initial investigation results, Saigon port area 1 customs branch determined the behaviour of Sun World Logistics Co., Ltd. showed signs of violation of Criminal Code of "smuggling" as specified in Article 188 of the Penal Code 2015 amended in 2017.

Sun World Logistics Co., Ltd has carried out an act of intentionally buying, selling and transporting goods banned from import into Vietnam; try to make false declarations, sneaking past the customs authority to bring goods into the domestic market for illegal consumption and make huge tax fraud.