Businesses importing chicken for only 2,000 VND/kg run away

Ho Chi Minh City Customs is searching for the directors of businesses that imported dozens of batches of frozen chicken because they deliberately declared very low prices to evade taxes.Last year, many businesses declared the price of chicken thighs and wings at only 0.1-0.2 USD/kg.

According to information from the Saigon Port Customs Branch, Region 1, in 2016, Vietnam imported 74,240,000 kg of chicken meat from the US, South Korea and Brazil, with a turnover of nearly 55.6 million USD (about 259 billion VND). The price that businesses declared for chicken thighs and wings was only from 0.1-1.9 USD/kg.

Notably, some businesses declared prices that were too low, and after customs authorities conducted post-clearance inspections and adjusted the tax increase, they did not pay the tax and fled.

Specifically, at this Branch, there are 111 declarations of chicken thighs and wings with prices ranging from 0.1-0.2 USD/kg, weighing 4,785,000 kg. The Branch has reported to the Ho Chi Minh City Customs Department that the enterprises declared prices too low and did not pay taxes after post-clearance inspection. Of these, 4 absconding enterprises have disappeared, only one enterprise is still operating.

Frozen chicken is declared by businesses at an import price of only about 2,000 VND/kg.

Typically, in just 2 months (August and September 2016), Nguyen Phung Company Limited (17 Ho Ba Kien, Ward 15, District 10, Ho Chi Minh City) opened 17 customs declarations for importing frozen foods, including: frozen chicken legs, wings, thighs; frozen potatoes and pig feet originating from Australia, Brazil, Poland, etc. On the customs declaration, the enterprise declared the price of frozen chicken wings, originating from Brazil; frozen chicken thighs, chicken drumsticks, originating from Australia, etc. at only 0.1 USD (more than 2,000 VND)/kg. The total tax paid by the enterprise for the 17 declarations was over 324 million VND.

Detecting unreasonable declared prices, Saigon Port Customs Branch, Region 1 requested price consultation, but the enterprise did not agree, so the Customs agency had to handle customs clearance according to regulations, and at the same time transfer the file to the Tax Management Team to conduct post-clearance inspection.

During the working process, this Department rejected the declared prices for imported goods in 17 customs declarations of enterprises, determined the taxable price for chicken feet from 0.1 USD to 1.22 USD/kg; chicken wings from 0.1 USD to 2.25 USD/kg; chicken thighs from 0.1 USD to 1 USD/kg,... At the same time, determined the tax with a total tax payable of over 3.7 billion VND.

Thus, compared to the actual corporate tax paid at the time of customs clearance (VND324 million), the enterprise still has to pay an additional VND3.4 billion. However, this enterprise has currently closed its tax code and is not operating at its registered business address.

Similarly, in May and June 2016, Red Bear Company Limited continuously opened 28 customs declarations to import frozen items such as chicken wings, legs, thighs; and frozen salmon heads. In all 28 customs declarations, the company declared the taxable price of frozen chicken thighs at only 0.12 to 0.18 USD/kg; chicken wings at 0.2-0.22 USD/kg,...

Accordingly, the Saigon Port Customs Branch, Region 1, rejected this declared price for imported goods in 28 customs declarations of enterprises, determined that the taxable price for the goods increased from 1 USD to 2.25 USD/kg, and issued a decision to determine the tax, with a total tax increase of more than 4.7 billion VND.

According to a representative of Ho Chi Minh City Customs, businesses that deliberately declare extremely low import prices and then flee from their registered business addresses after the goods have cleared customs show signs of tax evasion. Ho Chi Minh City Customs is coordinating with A84 to track down the directors of these businesses and investigate who is behind these frozen chicken importers.

According to vietnamnet