Nguyễn Nhất Kha, acting director of Risk Management Division. — Photo haiquanonline.com.vn

Nguyễn Nhất Kha, acting director of Risk Management Division under the General Department of Việt Nam Customs speaks to Hải Quan (Customs) online newspaper about measures to manage risks, prevent tax evasion and commercial fraud

What does the division do to assist border gate customs units nationwide to prevent fraud and tax evasion?

Việt Nam has gained significant achievements in developing the economy in recent years thanks to efforts to reform and accelerate the process of international integration. However, besides opportunities and advantages, the other side of globalisation is the increase of violations such as smuggling, illegally transporting goods via borders that have developed complexly in both form and scale.

Therefore, the division has focused on analysing information and assessing risks to prepare for, detect and prevent violations of customs legislation. 

The division has submitted to the general department a risk management plan. The plan identifies major risks that could arise in annual import and export activities. Additionally, the division has deployed risk management activities, for example, managing risks in taking advantage of green flow declarations for imported and exported goods and managing risks in some key areas like smuggling, tax evasion and commercial fraud that could happen in many more areas.

The green flow applies to commodities entitled to exemption of customs declaration and actual inspection, usually diplomatic and consular officials and guests of the Party or Government.

The division’s staff has strengthened monitoring, analysing and assessing risks before commodities reach border gates, especially for key consignments. Thereby, customs units at border gates have inspected and then found and seized dozens of shipments of smuggled commodities.

Additionally, the division has also warned of risks and tricks of commercial fraud to customs units to help them prevent smuggling and commercial fraud. For example, the division has alerted the methods that smugglers use to hide drugs in large speakers or portable speakers to transport large quantities of drugs.

What solutions has the division implemented to prevent businesses from taking advantage of the green flow for commercial fraud and tax evasion?

The customs force at all levels is continuing co-operation to improve capability for customs staff as well as share information among customs units to better prevent the green flow being taken advantage of for smuggling and commercial fraud. We have concentrated on taking several measures.

Firstly, we have collected more information on a commodity before it reaches a port in combination with other analyses to select good consignments for pre-clearance screening to promptly detect violations.

Secondly, customs staff will check the green flow import and export declarations that they suspect of having signs of violations.

Next, customs staff will analyse risks based on green flow declarations and apply post-clearance checks and investigate if they see a business has signs of abusing the green flow for smuggling and tax evasion.

Fourth, the division has provided information and warned of businesses that could take advantage of the green flow to cheat and smuggle to customs units.

Lastly, the division has promoted dissemination to raise business’ awareness in complying with customs and tax laws. — VNS