Through the process of reviewing the customs system for exported goods, the General Department of Customs has just discovered a number of declarations with product descriptions that do not match the declared codes but are still accepted for customs clearance.
Specifically, the declared item is scrap copper sheet accepted for customs clearance under code 7410.11.10 (export tax rate 0%), however, according to the declared name, the item is suitable for classification under code 7404.00.00 (export tax rate 22%); the declared item is white copper scrap accepted for customs clearance under code 7409.90.00 (tax 0%), however, it is suitable for classification under code 57404.00.00 (tax 22%); the declared item is refined copper foil in rolls that have not been backed (scrap is within the loss ratio) accepted for customs clearance under code 7410.11.90, or code 7409.11.00 (tax 0%), however, it is suitable for consideration for classification under code 7404.00.00 (tax 22%).
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 of the classification of exported copper goods. In particular, it requires the customs departments of provinces and cities to strengthen the inspection and review of declarations of exported copper goods to promptly detect and prevent fraudulent declaration of incorrect codes to evade export tax.
Job General Department of Customs The timely issuance of corrective and handling documents has contributed to preventing revenue loss for the state budget. However, the next urgent task is to check and review the declaration of codes for items of the same type and related items, clarify methods and tricks, and increase warnings.
At the same time, expand the list of goods suspected of trade fraud in both import and export activities, focusing on key areas and sectors, goods on the updated list of warnings of products at risk of being investigated for trade defense measures, origin fraud, and code declaration fraud; proactively collect information about enterprises, especially those that regularly import and export goods with high tax rates, in order to strictly control electronic customs records; at the same time, strengthen online monitoring on the system, promptly detect fraudulent goods during customs declaration.
Fraudulent declaration of codes often occurs when customs authorities do not have sufficient basis to clearly conclude on the goods codes. Therefore, in these cases, codes should not be arbitrarily applied according to the subjective will of civil servants, but should be sampled, analyzed and appraised to clearly determine the nature of the goods as a basis for determining codes according to regulations.
In the context of increasing import and export turnover with many new commodity codes, commodity codes with high risk of fraudulent declaration; the current key issue that units in the entire customs sector need to pay attention to is to be proactive in grasping the situation and developments of the import and export market; strengthening coordination, connection, and information sharing between units and other functional forces in performing public duties, in order to improve the effectiveness of preventing, combating, and stopping trade fraud.
Focus on updating new knowledge and information, regularly training, improving the capacity and working level of officials and civil servants, promoting the application of information technology and digital transformation in the fight against commercial fraud. Another important content is that it is necessary to clearly define the responsibilities of the head of the unit in conjunction with strengthening the work of inspection and examination of public services, promptly detecting, preventing and strictly handling cases of officials and civil servants colluding and assisting in acts of commercial fraud
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