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Customs prosecutes 7 billion VND tax evasion case for exporting 1,400 tons of frozen chicken feet

(Chinhphu.vn) - On July 2, the Customs Department announced that the Anti-Smuggling Investigation Department (Customs Department) has just initiated a case of illegally exporting 1,400 tons of frozen chicken feet, with signs of tax evasion of 7 billion VND and the act of transferring for domestic consumption without customs declaration.

Báo Chính PhủBáo Chính Phủ02/07/2025

Accordingly, Anti-smuggling Control Team No. 1 (Team 1) - Anti-smuggling Investigation Department conducted research to grasp the situation of business entities in the export production sector and discovered that VN Import-Export Company Limited (with a business registration address in Thai Binh province) had the act of exporting fake export goods for smuggling and tax evasion.

VN Import-Export Company Limited operates in the field of import and export of goods in the form of export production. Imported raw materials are frozen chicken feet/chicken feet that have not been deboned; exported finished products are frozen chicken feet/chicken feet that have been processed, deboned, and cleaned. For this type, enterprises are exempted from import tax on the condition that the products are exported abroad and the enterprise fully reports on settlement to the customs authority; exported goods are not subject to value added tax. If excess raw materials are sold to the domestic market, they must declare to customs and pay tax according to regulations.

On March 11, 2025, Team 1 - Anti-smuggling Investigation Department - Customs Department chaired and coordinated with the Economic Security Department - Hai Phong City Police and Thai Binh Customs, Customs Control Team under the Regional Customs Branch III to inspect the actual goods packed in 13 containers in 07 declarations of VN Import-Export Company Limited at Nam Dinh Vu Port - Hai Phong. The declared goods were boneless and cleaned frozen chicken feet packed in packages with a total weight of 377,000 kg, worth more than 28 billion VND.

However, the actual inspection of the goods showed that only 49,000 kg of boneless chicken feet were processed and cleaned, the remaining were boneless chicken feet. The difference compared to the declaration was about 328,000 kg. The corresponding amount of raw materials to produce the finished product was about 1,400 tons less than the declaration, worth about 36 billion. If the case had not been discovered by the customs authority in time, the Company would have evaded import tax on a large scale, losing more than 7 billion VND to the state budget.

Xuất khống 1.400 tấn chân gà đông lạnh, Hải quan khởi tố vụ án trốn thuế 7 tỷ đồng- Ảnh 1.

Seized exhibits

Sophisticated tricks: Evading inspection, making false declarations

During the investigation and verification process, it was discovered that the subjects had extremely sophisticated behaviors, methods and tricks in declaring and packing goods to deal with and deceive customs authorities.

Firstly, when packing, VN Import-Export Company Limited only filled the front of the container with goods, leaving the rest empty. If only observed with the naked eye, it would be very difficult to detect. Meanwhile, according to the declaration, each container weighed about 28 tons, but actual inspection showed that only about 5 tons were loaded at the front, the back was completely empty.

Second, the enterprise took advantage of the green channel declaration, deliberately waiting until the train was about to depart to load the goods into the container, in order to avoid physical inspection. At the same time, the company also falsely declared the volume and type of exported goods to legalize the settlement of imported raw materials, in order to meet the conditions for import tax exemption. The amount of tax payable corresponding to this amount of raw materials was determined to be more than 7 billion VND. This behavior has signs of the crime of "smuggling".

Third, during the investigation, VN Import-Export Company Limited also showed signs of obstruction and resistance, such as: not presenting goods for inspection, changing directors/legal representatives immediately after the incident was discovered, avoiding work, and not providing documents as requested by the authorities.

After the investigation and verification of signs of the crime of "Smuggling", the Anti-Smuggling Investigation Department - Customs Department agreed with Department 3 - Supreme People's Procuracy to prosecute the case under Article 188 of the Penal Code.

The case file has been transferred to the Investigation Police Agency for further processing according to authority.

The incident is a wake-up call for businesses operating in the export production sector, and at the same time affirms the determination of the Customs sector and the Ministry of Finance in preventing and strictly handling smuggling and trade fraud - contributing to protecting state budget revenue and a transparent and fair business environment.

Mr. Minh


Source: https://baochinhphu.vn/xuat-khong-1400-tan-chan-ga-dong-lanh-hai-quan-khoi-to-vu-an-tron-thue-7-ty-dong-102250702163635065.htm


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