During a review of the customs system for exported goods, the General Department of Customs recently discovered several declarations with descriptions of goods that did not match the declared codes, yet were still accepted for customs clearance.
Specifically, the declared item, scrap copper foil, was accepted for customs clearance under code 7410.11.10 (export tax rate 0%), however, according to the declared name, the item is appropriately classified under code 7404.00.00 (export tax rate 22%); the declared item, scrap white copper, was accepted for customs clearance under code 7409.90.00 (0% tax), however, it is appropriately classified under code 57404.00.00 (22% tax); the declared item, refined thin copper foil in coils, not yet laminated (scrap within the loss rate), was accepted for customs clearance under code 7410.11.90 or code 7409.11.00 (0% tax), however, it is appropriately considered for classification under code 7404.00.00 (22% tax).
On October 2, 2024, the General Department of Customs issued Document No. 4736/TCHQ-TXNK to the customs departments of provinces and cities regarding the review and classification of exported copper goods. Specifically, it requested that the customs departments of provinces and cities strengthen inspections and reviews of declarations for exported copper goods to promptly detect and prevent fraudulent declarations of incorrect codes to evade export taxes.
Job General Department of Customs The timely issuance of corrective and disciplinary documents has contributed to preventing revenue losses for the state budget. However, the next urgent task is to inspect and review the declaration of codes for similar and related items, clarify the methods and tricks used, and strengthen warnings.
Simultaneously, expand the scope to include goods suspected of trade fraud in both import and export activities, focusing on key areas and sectors, and goods on the updated list of products at risk of being investigated for trade defense measures, origin fraud, and declaration of tariff codes; proactively collect information on businesses, especially those frequently involved in importing and exporting goods with high tax rates, in order to tightly control electronic customs documents; and strengthen online monitoring on the system to promptly detect fraudulent goods during the customs declaration process.
Fraudulent declarations of customs codes usually occur when customs authorities lack sufficient grounds to definitively determine the correct code for the goods. Therefore, in these cases, the code should not be arbitrarily applied based on the subjective judgment of customs officials. Instead, samples should be taken for analysis and inspection to clearly determine the nature of the goods as a basis for determining the correct code according to regulations.
In the context of increasing import and export turnover with many new commodity codes, including those with a high risk of fraudulent declarations, the key issue that all units in the customs sector need to focus on is proactively monitoring the situation and developments in the import and export market; strengthening coordination, connection, and information sharing among other units and functional forces in performing their duties, in order to improve the effectiveness of preventing, combating, and deterring trade fraud.
Emphasis should be placed on updating knowledge and information, regularly training and developing the skills and qualifications of officials and civil servants, and promoting the application of information technology and digital transformation in the fight against commercial fraud. Another important aspect is the need to clearly define the responsibilities of unit heads, coupled with strengthening inspection and supervision of official duties, promptly detecting, preventing, and severely punishing cases of officials and civil servants colluding with or assisting in such acts. commercial fraud.
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