Posted on 12 Oct 2009
The General Customs Department has asked its local branches nationwide to monitor car imports more closely, following allegations of fraud by local importers.
The tightened control over the import of high-value products, including vehicles, air conditioners, washing machines and steels, are necessary when is an increase in fraudulent practices, the Vietnam Economic Times reported, citing the customs department.
The decision came after
The Vietnam Automobile Manufacturers’ Association said it has studied these practices from 2006, and is disappointed that they have only increased since.
It has informed the Finance Ministry that some importers intentionally make invoice prices much lower than actual selling prices to reduce their tax obligations.
The association said the Matiz-796 by GM Daewoo, for instance, was priced at US$6,000-7,000 but declared at $2,700-3,000 at Vietnamese ports. The car was then sold to local customers at $11,800-14,900.
The government has lost considerable revenues from import duties and taxes to the fraudulent trade, the association said, requesting that the government pays special attention to investigating and finding solutions to this problem.
Imports of completely-built-up vehicles was 28 percent of total sales last year and had gone jup to 32 percent in the first eight months, compared to just 20 percent in 2006, according to the association.
The association, which gathers 16 local and international assemblers, forecasts this figure will rise to 45 percent of total sales this year.
