Beware of cheating CO

Tariff reductions under signed FTAs facilitate domestic and international businesses' exchanges and trade in goods, but tariff reductions also lead to The trend of fraud more about C / O to enjoy preferences.

Form C / O form AK. Illustration

Possible risk of C / O fraud

According to the General Department of Customs, besides creating favorable conditions for domestic and international businesses to exchange goods and trade with each other, some domestic and foreign companies do business. Not properly took advantage of the loophole of the law to seek fraud to profit.

At the meeting with representatives of the Ministry of Industry and Trade, Ministry of Finance concerning the determination of time to submit C / O for preferential treatment, Mr. Au Anh Tuan- Deputy Director of Customs Supervision Department. At present, in order to enjoy special preferential tax rates, there have been many cases of trade frauds and deeds through certificates of goods origin (C / O), with increasingly sophisticated and complicated evolutions. .

Customs authorities in the process of resolving procedures to allow businesses   customs clearance of goods, Customs of Vietnam as well as internationally have discovered, suspected of commercial fraud and signs of fraudulent documents To be freed. Therefore, customs authorities have sent letters requesting Vietnam Customs to verify and vice versa. Vietnam Customs also have letters to your country to support verification.

In the five years from 2011 to 2015, the General Department of Customs received 78 letters of request for verification from the customs offices of other countries and embassies of countries in Vietnam. Your letter of inquiry focuses on the verification of the accuracy and validity of the certificate of origin (C / O), the origin of the consignment, the verification of the customs document, especially the invoice Basically, Vietnam Customs has made a letter to inform and respond to most of the verification requests as well as provide statistics as per your request. .

At the same time, Vietnam Customs also asked the customs authorities to verify the 1961 C / O (countries requesting verification assistance as countries in ASEAN, China). The letter of request for verification support of Vietnam focuses on the valid signature of the person competent to issue C / O form D and form E, doubt about the valid seal on the C / O ... Domestic enterprises have hooked. Connected with SOEs to impersonate or increase ASEAN content in order to enjoy tariff preferences under the Common Effective Preferential Tariff (CEPT) Scheme and the Agreement between the ASEAN countries and some partners such as China Korea, Japan.

Through bilateral assistance, much intelligence has contributed to the success of the anti-smuggling investigations and prosecutions of the General Department of Customs. Some specialized projects such as specialized petroleum, wood, wine, overseas Vietnamese cars, diplomatic vehicles, VAT refund ...

However, in practice, exchange activities, information verification still have difficulties. The implementation of tariff reductions under the FTA agreements signed recently has led to a greater tendency for fraudulent C / O to enjoy preferential tax rates that are more likely to require C / O. While the response to foreign requests for customs verification was slow, many requests were not even responded to, leading to difficulties and delays in processing procedures for shipments and importers. .

According to the General Department of Customs, in 1961 C / O Vietnam Customs requested verification (in the period from 2011 to 2015) received the official reply of 1119 C / O. In addition, when receiving the results of verification from the customs of Vietnam, your side rarely respond to the use of the verification results to save the record company.

Intensify co-management of preferential C / O

At present, the requirements for the implementation of multilateral and bilateral international commitments gradually come into reality; Implementing a series of important FTAs ​​within the WTO, TPP and FTAs ​​with Korea and the EU is an opportunity and a challenge for customs administrations of countries in general and customs. Vietnam in particular.

In the face of this fact, in parallel with the strengthening of cooperation with Customs authorities to strengthen the control over trade frauds and tax evasion, the General Department of Customs is proposing a management plan and Inspection of C / O of goods lots subject to preferential tax rates.

Options proposed by the General Department of Customs to avoid trade fraud through origin, thus reducing revenues for the state budget; At the same time, it is in line with international commitments that Vietnam is participating.

Accordingly, in order to be considered for special preferential rates within the framework of the FTAs ​​which Vietnam participates, enterprises must submit C / O to customs offices at the time of registration of import declarations.

For cases where enterprises do not have C / O at the time of registration of customs declarations, enterprises may submit additional C / O within 30 days from the date of registration of declarations.

In some exceptional cases, due to force majeure or other legitimate causes beyond the control of the importer, the General Department of Customs proposes a treatment plan for each situation.

Where at the time of import, the preferential import tax rate (MFN) is 0%, enterprises do not need to apply special preferential rates; Or MFN tax rates are lower than special preferential rates, the MFN tax rate is applied. After the goods have been cleared, the customs offices shall check after the customs clearance and re-determine the HS codes. Under the new HS code, the MFN tax rate is higher than the special preferential tax rate. The customs office accepts additional C / O to grant preferential treatment.

Where at the time of import, the goods are on the list of exemptions, enterprises do not need to apply special preferential rates. After the goods have been cleared, customs offices shall check after customs clearance that goods not subject to tax exemption shall request additional C / O to be submitted by customs offices. deals.

Or follow the procedure for issuing C / O of C / O for C / O issuance after export goods.

For C / O form VK, strictly comply with the provisions in Appendix 4, Circular No. 40/2015 / TT-BCT on the import of preferential tariffs by the importers and requesting the refund of outstanding tax amounts. Which must be checked when the goods have not been eligible for presentation of C / O within one year after the date of import.

At present, the proposed General Department of Customs is being consulted by the Ministry of Industry and Trade, Finance. The General Department of Customs is also expected to propose to amend this content in Circular 38/2015 / TT-BTC of the Ministry of Finance.

Source of Customs Report

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