Công văn 1371/TCHQ-TXNK

To: Customs Departments of cities or provinces,

As reported by the Industry and Trade Newspaper, certain enterprises that import motor vehicle tyres from China have recently committed trade frauds in terms of price. These importers have declared the import price of USD 75/unit which is lower than the factory price of approximately USD 210/unit, and wrong import commodity codes in a bid to evade the import duty and value-added tax. These enterprises only issue tax invoices for their imported tyres sold which record an amount equal to 30% of actual value. This results in unhealthy competition with other motor vehicle tyre manufacturers and loss of state budget collections.

Furthermore, on December 31, 2015, the General Department of Vietnam Customs granted the Decision No. 3950/QD-TCHQ providing that pneumatic motor vehicle tyres of all kinds enter in the list of imported goods exposed to the valuation risk and specifying attached reference price levels as the basis for assessable value inspection, consultation and determination.

In an effort to prevent and control trade frauds committed by manipulating assessable prices and wrongfully declaring codes of imported motor vehicle tyres, the Customs Departments of cities or provinces are requested to take the following measures:

1. Customs value:

+ Carry out review and inspection of importation of motor vehicle tyres at their local jurisdictions (paying a particular attention to those which are of Chinese origin) for the purpose of collecting information, detecting any suspicious signs, conducting customs consultation and post-clearance inspection in accordance with laws and regulations (in the 2^nd Quarter 2016, the number of enterprises chosen to be subject to post-clearance inspection varies from 2 to 3);

+ Gather information about imported motor vehicle tyres which are then analyzed and compiled to determine assessable prices in accordance with provisions set forth in the Circular No. 38/2015/TT-BTC and the Circular No. 39/2015/TT-BTC dated March 25, 2015 of the Ministry of Finance, and propose any supplementation or modification of reference price levels shown in the list of imported goods exposed to valuation risks issued together with the Decision No. 3950/QD-TCHQ dated December 31, 2015 of the General Department of Vietnam Customs in accordance with laws and regulations.

2. Commodity codes: Review, inspect and implement measures to retrospectively collect missed tax payments resulting from wrongful declarations of commodity codes with the intention of gaining advantage from low duty rates.

This document serves as the notification sent by the General Department of Vietnam to the Customs Departments of cities or provinces for implementation purposes./.