Thanh Cong Textile was fined more than 1.7 billion for 9 administrative violations.

Thanh Cong Textile and Garment Investment and Trading Joint Stock Company was fined over one billion VND for nine administrative violations, including errors such as incorrectly declaring the currency type, leading to discrepancies in valuation, and incorrectly declaring the origin as 'Made in Vietnam'.

Workers at the garment factory of Thanh Cong Textile and Garment Investment and Trading Company - Photo: TCM

The Post-Customs Clearance Inspection Department - General Customs Administration has issued a decision to impose administrative penalties for violations of tax laws in the customs field on Thanh Cong Textile and Garment Investment and Trading Company.

This decision is based on the results of post-clearance inspections from July 2019 to June 2024.

According to customs authorities, Thanh Cong Textile and Garment Trading Investment Company was fined for nine administrative violations.

Firstly, the company violated regulations regarding the management of imported raw materials and supplies, resulting in actual inventory being lower/negative compared to the inventory declared by the company at the same time as December 31, 2023.

Secondly, the company failed to dispose of surplus raw materials and supplies within the stipulated timeframe when the processing contract ended or expired.

Thirdly, the company incorrectly declared the tax-exempt status, resulting in a shortfall in tax payments.

Fourth, the company incorrectly declared the customs value of imported goods that were eligible for tax exemption according to regulations.

Specifically, they incorrectly declared the currency for the adjustment fee plus (shipping fee) for 30 item lines.

The shipping fee is in VND, but the company declared it in USD.

At the same time, the company incorrectly declared the total taxable value on one tax return.

Accordingly, the total taxable value was just over $71,000, but the company declared over $7 million.

Fifth, the company violated regulations regarding the preparation of final settlement reports that did not match the accounting records and documents for the period 2019-2023 concerning the use of imported raw materials and finished products for export, but failed to detect, correct, and report this discrepancy.

Sixth, the company sent raw materials and supplies to another facility for reprocessing without notifying the customs authorities.

On Saturday, the company made false declarations regarding the origin of exported goods that were eligible for tax exemption.

Specifically, one of the company's products did not meet the criteria for Vietnamese origin as stipulated by regulations, but the company declared it as "Made in Vietnam" in its export documents.

Eighth, the company violated regulations regarding the provision of false documents and certificates to competent authorities when requesting a certificate of origin for goods.

Ninth, the company violated regulations regarding self-certification of goods with false origin when it was granted self-certification by a state agency.

The customs agency concluded that the second, seventh, eighth, and ninth administrative violations committed by Thanh Cong Textile and Garment Investment and Trading Company were repeated violations.

The company had to pay a total of nearly 1.8 billion VND in fines for nine administrative violations.

Of these violations, the first one received the heaviest penalty. The company was fined 20% of the assessed tax on the infringing goods, equivalent to over one billion VND.

At the same time, Thanh Cong Textile and Garment Trading Investment Company must return the illegal profits obtained from the administrative violation, amounting to nearly 619 million VND.

According to recently released information, the company has fulfilled its obligation to pay the administrative fine as required by law.

Source: https://tuoitre.vn/det-may-thanh-cong-bi-phat-hon-1-7-ti-vi-9-loi-vi-pham-hanh-chinh-20241225085405087.htm