Summary of the latest violations and penalties in the Customs field in 2019

Legal basis:

1.Decree No. 127/2013/NĐ-CP of October 15, 2013, on penalties for administrative violations and enforcement of administrative decisions pertaining to customs controls

2.Decree no. 45/2016/ND-CP on Amendments to some Articles of the Government’s Decree No. 127/2013/ND-CP dated October 15, 2013 on penalties for administrative violations against regulations on customs control and enforcement of administrative decisions on customs control.

Summary is as below:

Summary of the latest violations and penalties in the Customs field in 2019 

Type of violation

Act of violation Fine level

Legal

Violation of regulations on time limit for customs procedures, tax payment  Failure to complete, submit, produce the customs dossier or provide information about the customs dossier on schedule, except for the violations specified in Clause 3, Points and b Clause 4, and Clause 5 of this Article; A fine of from VND 500,000 to VND 1,000,000 Clause 1 of article 6 – decree no.127/2013 / ND-CP, clause 3 Article 1 Decree 45/2016 / ND-CP
Failure to make an additional declaration when there are changes to the container number, port of loading, exporting checkpoint, or vehicle carrying goods for export;
Declaring official prices behind schedules in case official prices were not available when the customs declaration was registered;
Failure to punctually re-export the vehicle that crosses the border checkpoint to deliver goods.
Provide the audit report or financial statement; notification of penalties for tax offences of accounting offences of enterprises eligible for priority;  Fine of from VND 1,000,000 VND to VND 2,000,000 Clause 2 Article 6 Decree 127/2013 / ND-CP, Clause 3 Article 1 Decree 45/2016 / ND-CP
Submit a report on quantity of goods imported serving factory construction and goods stored externally of an export processing enterprise;
Submit a report on quantity of goods entering, leaving, and stored in the transshipment port;
Submit a report on operation of the customs brokerage agent;
Submit a statistical report on customs clearance of international postal packages transited through Vietnam.
Submitting a customs declaration before goods for export are gathered at the location notified to the customs authority; A fine of from VND 2,000,000 to VND 5,000,000 Clause 3 Article 6 Decree 127/2013 / ND-CP, Clause 3 Article 1 Decree 45/2016 / ND-CP
Failure to make declaration and follow procedures on schedule when goods for export are sold domestically; repurposing goods eligible for tax exemption, tax refund, or tax cancellation;
Failure to punctually submit the application for tax cancellation, financial statement, or report on use of tax-free goods;
Failure to adhere to regulations on handling excess materials and supplies, scrap, machinery or equipment that are rented or borrowed when the processing contract expires;
Failure to punctually send a notification of the processor or manufacturer of goods for export; storage location of raw materials, machinery and equipment, products for export;
Failure to punctually send a notification when hiring a processor;
Failure to re-export or re-import on schedule or within the time limit registered with the customs authority, except for the violations specified in Point a Clause 4 of this Article;
Violating other regulations on deadline for making tax statement.
Punctually re-export the temporarily imported goods eligible for tax exemption or goods temporarily imported for re-export; A fine of from VND 5,000,000 to VND 10,000,000 Clause 4 Article 6 Decree 127/2013 / ND-CP, Clause 3 Article 1 Decree 45/2016 / ND-CP
Failure to punctually re-export the vehicle, except for vehicles for the transport of fewer than 24 people specified in Clause 5 of this Article and vehicles crossing the border checkpoint area to deliver goods;
Storing goods in transit in Vietnam past the deadline.
Failure to punctually re-export vehicles for the transport of fewer than 24 people, except for the cases specified in Point d Clause 1 and Point b Clause 4 of this Article, A fine of from VND 10,000,000 to VND 20,000,000 shall be imposed if the vehicle is re-exported less than 30 days behind schedule;

A fine of from VND 20,000,000 to VND 50,000,000 shall be imposed if the vehicle is re-exported 30 days or more behind schedule;

Clause 5 Article 6 Decree 127/2013 / ND-CP, Clause 3 Article 1 Decree 45/2016 / ND-CP
Violations against regulations on customs declaration Failure to make a declaration or to provide correct information about the names, categories, quantity, weight, and origins of goods that are humanitarian aid or grant aid approved by competent authorities. A fine of from VND 500,000 to VND 1,000,000 Clause 1 Article 7 Decree 127/2013 / ND-CP, Clause 4 Article 1 Decree 45/2016 / ND-CP
Imposed for failure to declare or to provide correct information about the names, categories, quantity, weight, and origins of goods that are:.

Goods sent from abroad to a free trade zone or vice versa; or

Goods in transit; goods sent from abroad to a transshipment port or vice versa;

Goods used or destroyed within a free trade zone.

A fine of from VND 1,000,000 to VND 3,000,000 Clause 2 Article 7 Decree 127/2013 / ND-CP, Clause 4 Article 1 Decree 45/2016 / ND-CP
failure to make a declaration or to provide correct information about the names, categories, quantity, quality, or value of exported or imported goods that are tax-free or eligible for tax exemption as prescribed by law. A fine of from VND 3,000,000 to VND 5,000,000 Clause 3 Article 7 Decree 127/2013 / ND-CP, Clause 4 Article 1 Decree 45/2016 / ND-CP
Declaring imported goods as processed products or domestic exports without a processor or manufacturer. A fine of from 10,000,000 VND to 20,000,000 VND Clause 4 Article 7 Decree 127/2013 / ND-CP, Clause 4 Article 1 Decree 45/2016 / ND-CP
Declaring false name, quantity, weight, or value of goods for exported, except for those that are processed products, domestic exports, exports of export processing enterprises and temporarily imported goods. A fine of from VND 20,000,000 to VND 40,000,000 Clause 5 Article 7 Decree 127/2013 / ND-CP, Clause 4 Article 1 Decree 45/2016 / ND-CP
Violations against regulations on tax statement The taxpayer realizes the mistake and adjusts the tax statement after 60 days from the date of customs clearance but before the customs authority issues a decision on post-clearance inspection; he taxpayer that makes understatement of the tax payable or overstatement of tax exempted, reduced, refunded or cancelled shall face the following penalties in addition to fully paying tax and late payment interest:

A fine of 10% of the understated amount of tax payable or the overstated amount of tax exempted, reduced, refunded or cancelled shall be imposed .

Clause 1 Article 8 Decree 127/2013 / ND-CP, Clause 5 Article 1 Decree 45/2016 / ND-CP
b) The taxpayer realizes the errors in the name, category, quantity, weight, quality, code, tax rate, tax amount or origin of exports or imports while following customs procedures and adjusts the tax statement after the customs authority examines the customs dossier and before customs clearance is granted.
The customs authority finds errors in the name, category, quantity, weight, quality, code, tax rate, tax amount or origin of exports or imports while the taxpayer is following customs procedures or during post-clearance inspection but the violator has voluntarily and fully paid tax before an offence record is issued; A fine of 20% of the understated amount of tax payable or the overstated amount of tax exempted, reduced, refunded or cancelled shall be imposed Clause 2 Article 8 Decree 127/2013 / ND-CP,

Clause 5 Article 1 Decree 45/2016 / ND-CP

Information about tax-free goods or goods eligible for tax exemption provided is incorrect;
In-quota goods are used against the law;
Information provided in the application for tax exemption/reduction/refund/cancellation or application for refund of overpaid tax/fine is incorrect;
A violation against regulations on management of materials, supplies, machinery and equipment, processed products or domestic exports results in discrepancy between actual stock and values in accounting documents, accounting books or documents about exports/imports other than the cases specified in Points d, dd, e and g Clause 1 Article 13 of this Decree;
A violation against regulations on management of goods in a tax-suspension warehouse results in discrepancy between actual stock and values in accounting books other than the cases specified in Point g Clause 1 Article 13 of this Decree;
Failure to declare or incorrect declaration results in understatement of the tax payable or overstatement of tax exempted, reduced, refunded or cancelled.
 Violations against regulations on customs inspection Falsifying the registered customs dossier, provided this falsification does not change the amount of tax payable or affect exports and imports management policies. A fine of VND 1,000,000 to VND 2,000,000
Failure to provide personnel or equipment serving the physical inspection of goods or vehicles at the request of the customs authority without legitimate reasons; A fine of from VND 2,000,000 to VND 4,000,000 Clause 1 Article 10 Decree 127/2013 / ND-CP, Clause 7 Article 1 Decree 45/2016 / ND-CP

Clause 2 Article 10 Decree 127/2013 / ND-CP, Clause 7 Article 1 Decree 45/2016 / ND-CP

Violating regulations on preparation, and retention of documents;
Failure to comply with the decision on tax inspection issued by a customs authority.
Failure to present goods under customs supervision and goods in storage required to undergo post-clearance inspection for inspection by the customs authority as prescribed by law; A fine of from VND 4,000,000 to VND 10,000,000  

Clause 3 Article 10 Decree 127/2013 / ND-CP, Clause 7 Article 1 Decree 45/2016 / ND-CP

Failure to provide or adequately and punctually provide documents or electronic data related to exports or imports, vehicles leaving and entering Vietnam at the request of the customs authority as prescribed by law.
swapping goods that have undergone customs inspections and goods that have not. A fine of from VND 20,000,000 ND to VND 30,000,000
Use of a fraudulent customs seal; submission or presentation of fraudulent or illegal or untruthful documents without constitution of a criminal offence ; A fine of from VND 40,000,000 to VND 80,000,000 Clause 4 Article 10 Decree 127/2013 / ND-CP, Clause 7 Article 1 Decree 45/2016 / ND-CP

Clause 5 Article 10 Decree 127/2013 / ND-CP, Clause 7 Article 1 Decree 45/2016 / ND-CP

 Illegal use of another entity’s account or digital signature to follow customs procedures
Illegal access, falsification, or destruction of customs information system that does not constitute a criminal offence.
Violations against regulations on customs supervision Transshipment, storage, division of shipment, or change to modal of transport during transport of goods under customs supervision without notification or approval by the customs as prescribed by law A fine of from VND 5,000,000 to VND 10,000,000
Transporting goods in transit, goods moved to another custom post outside the checkpoint area, temporarily imported goods without adherence to prescribed or registered route, location, destination or time specified in the customs dossier without acceptable explanation; A fine of from VND 10,000,000 to VND 20,000,000 Clause 1 Article 11 Decree 127/2013 / ND-CP, Clause 8 Article 1 Decree 45/2016 / ND-CP

Clause 2 Article 11 Decree 127/2013 / ND-CP, Clause 8 Article 1 Decree 45/2016 / ND-CP

Breaking the customs seal without permission;
Changing the packages or labels of goods under customs supervision without permission;
Failure to maintain the status quo of the goods under customs supervision or goods in storage pending customs clearance;
Storing goods at a location other than that prescribed by the customs or registered with the customs;
Move raw materials, supplies, machinery and equipment to another factory for reprocessing without notifying the customs authority.
Selling goods under customs supervision A fine of from VND 20,000,000 to VND 30,000,000  

Clause 3 Article 11 Decree 127/2013 / ND-CP, Clause 8 Article 1 Decree 45/2016 / ND-CP

Selling a vehicle that is registered overseas and temporarily imported into Vietnam.
Selling goods in storage pending customs clearance A fine of from VND 30,000,000 to VND 40,000,000
Selling goods under customs supervision and selling goods in storage pending customs clearance under cases:

– Goods banned from export or import; goods suspended from export or import; goods that fail to meet the conditions for export or import; goods that do not have any license though a license is compulsory; or

– Temporarily imported goods without a license though a license is compulsory; Goods on the list of goods banned or suspended from temporary import

40,000,000 VND to 60,000,000 VND Clause 4 Article 11 Decree 127/2013 / ND-CP, Clause 8 Article 1 Decree 45/2016 / ND-CP
Violations against regulations on customs control Failure to comply with the order to stop and inspect the vehicle as prescribed; VND 1,000,000 to VND 3,000,000 Clause 5 Article 11 Decree 127/2013 / ND-CP, Clause 8 Article 1 Decree 45/2016 / ND-CP

Clause 1 Article 12 Decree 127/2013 / ND-CP, Clause 9 Article 1 Decree 45/2016 / ND-CP

Failure to provide the warehouse diagram, give instructions or open the suspected cargo hold on the vehicle for inspection.
Storing, trading, transporting exports or imports without in a customs-controlled area without legitimate documents, except for the cases specified in Articles 7, 8, 9, 13 and 14 of this Decree; if the value of illegal goods is under VND 50,000,000 VND 3,000,000 to VND 5,000,000  

Clause 2 Article 12 Decree 127/2013 / ND-CP, Clause 9 Article 1 Decree 45/2016 / ND-CP

Illegal transport of goods across the border that does not constitute a criminal offence if the value of illegal goods is under VND 50,000,000
Sending a foreign vehicle across the border without adherence to the prescribed route or checkpoint. VND 5,000,000 to VND 10,000,000
Storing, trading, transporting exports or imports without in a customs-controlled area without legitimate documents, except for the cases specified in Articles 7, 8, 9, 13 and 14 of this Decree; Illegal transport of goods across the border that does not constitute a criminal offence if the value of illegal goods is from VND 50,000,000 to 100 000 000 VND. VND 10,000,000 to VND 30,000,000 Clause 3 Article 12 Decree 127/2013 / ND-CP, Clause 9 Article 1 Decree 45/2016 / ND-CP
Storing, trading, transporting exports or imports without in a customs-controlled area without legitimate documents, except for the cases specified in Articles 7, 8, 9, 13 and 14 of this Decree; Illegal transport of goods across the border that does not constitute a criminal offence if the value of illegal goods is from VND 100 000 000 but not is criminal 30.000.000 đồng đến 60.000.000 đồng Clause 4 Article 12 Decree 127/2013 / ND-CP, Clause 9 Article 1 Decree 45/2016 / ND-CP

Clause 5 Article 12 Decree 127/2013 / ND-CP, Clause 9 Article 1 Decree 45/2016 / ND-CP

Unloading goods at a port other than the port of destination specified in the goods manifest or bill of lading without acceptable explanation;
Loading, unloading, transferring exports, imports or goods in transit on a vehicle under customs control without permission by the customs authority;
Illegally liquidating or destroying goods to avoid customs inspection or customs supervision.
Penalties for tax evasion and tax fraud Use of illegal or false documents to make tax statement; Falsification of documents that leads to understatement of tax payable or overstatement of  tax exempted, reduced or refunded; Apart from paying tax arrears in full, the taxpayer that commits any of the violations specified in Clause 1 of this Article which does not constitute a criminal offence shall also incur:

A fine equal to the amount of evaded tax if no aggravating circumstances are found.

Every aggravating circumstance that is found will cause the fine to increase by 20% but not exceeding 03 times the evaded tax. If the violation is committed by an individual, every aggravating circumstance will cause the fine to increase by 10% but not exceeding 1.5 times the evaded tax.

 

Article 13 Decree 127/2013 / ND-CP, Clause 10 Article 1 Decree 45/2016 / ND-CP

Incorrect declaration of codes of goods, tax rates, tax amount though instructions have been provided by the customs;
Failure to declare or correctly declare the name, category, quantity, weight, quality, code, tax rate, tax amount or origin of exports or imports which is discovered by the customs during post-clearance inspection and the violator does not voluntarily and fully pay tax before an offence record is issued;
Following procedures for exporting processed products, domestic exports or exports of an export processing enterprise without actually exporting them;
Overstatement of the quantity, weight, or categories of processed products, domestic exports, exports of an export processing enterprise or re-exported goods that involves tax evasion of VND 100,000,000 or more, which does not constitute a criminal offence;
Exporting processed products, domestic exports or exports of an export processing enterprise that are not made of the imported materials; importing products processed abroad that are not made of the exported materials;
Repurposing tax-free goods, goods eligible for tax exemption, tax reduction, or tax refund without notifying the customs authority as prescribed;
Failure to declare or to correctly declare names, categories, quantity, weight, quality, value, tax rates, tax amount or origins of goods imported from a free trade zone into the domestic market;
Failure to record the revenues and expenditures related to the determination of tax payable;
Selling tax-free goods to ineligible buyers;
Failure to declare or deliberate declaration of incorrect names, categories, quantity, weight, quality, value, tax rates, tax amount or origins of exports or imports to evade tax.
Violations against policies on management of exports, imports and goods in transit; vehicles entering and leaving Vietnam, vehicles in transit Penalties for exporting, importing goods of people entering or leaving Vietnam, border residents against policies on management of exports, imports and goods in transit: A fine of from VND 1,000,000 to VND 2,000,000 shall be imposed if the value of illegal goods is under VND 30,000,000;

b) A fine of from VND 2,000,000 to VND 5,000,000 shall be imposed if the value of illegal goods is from VND 30,000,000 to under VND 50,000,000;

c) A fine of from VND 5,000,000 to VND 10,000,000 shall be imposed if the value of illegal goods is from VND 50,000,000 to under VND 100,000,000;

d) A fine of from VND 10,000,000 to VND 20,000,000 shall be imposed if the value is 100,000,000 VND or above but does not constitute a criminal offence.

Penalties for exporting, importing goods of people entering or leaving Vietnam, border residents against policies on management of exports, imports and goods in transit, the customs dossier is submitted after 30 days from the day on which the shipment arrives at the border checkpoint. the fine shall be doubled. Clause 1 Article 14 Decree 127/2013 / ND-CP, Clause 11 Article 1 Decree 45/2016 / ND-CP
Penalties for exporting, importing goods that are humanitarian aid, gifts, samples, belongings against policies on management of exports and imports  A fine of from VND 1,000,000 to VND 3,000,000 shall be imposed if the value of illegal goods is under VND 30,000,000;

b) A fine of from VND 3,000,000 to VND 5,000,000 shall be imposed if the value of illegal goods is from VND 30,000,000 to under VND 50,000,000;

c) A fine of from VND 5,000,000 to VND 10,000,000 shall be imposed if the value of illegal goods is from VND 50,000,000 to under VND 100,000,000;

d) A fine of from VND 10,000,000 to VND 30,000,000 shall be imposed if the value is 100,000,000 VND or above but does not constitute a criminal offence.

Clause 2 Article 14 Decree 127/2013 / ND-CP, Clause 11 Article 1 Decree 45/2016 / ND-CP
Transiting goods; exporting, importing or transiting vehicles against the license issued by competent authorities; VND 5,000,000 to VND 10,000,000 Clause 3 Article 14 Decree 127/2013 / ND-CP, Clause 11 Article 1 Decree 45/2016 / ND-CP

Clause 4 Article 14 Decree 127/2013 / ND-CP, Clause 11 Article 1 Decree 45/2016 / ND-CP

Exporting or importing goods against the license;
Temporarily importing or temporarily exporting goods without a license though a license is compulsory, except for the cases specified in Clause 10 of this Article.
Transiting goods without a license though a license is compulsory 10,000,000 to VND 30,000,000
Repurposing raw materials, supplies, components, processing machinery or equipment on the list of goods requiring licensing without a license issued by a competent authority as prescribed by law. VND 30,000,000 to VND 60,000,000 Clause 5 Article 14 Decree 127/2013 / ND-CP, Clause 11 Article 1 Decree 45/2016 / ND-CP
Penalties for export or import of goods on the list of goods requiring a license without a license; export or import of goods that do not satisfy conditions, technical regulations and standards; export or import of goods without labels as prescribed by law A fine of from VND 5,000,000 to VND 10,000,000 shall be imposed if the value of illegal goods is under VND 30,000,000;

A fine of from VND 10,000,000 to VND 20,000,000 shall be imposed if the value of illegal goods is from VND 30,000,000 to under VND 50,000,000;

A fine of from VND 20,000,000 to VND 30,000,000 shall be imposed if the value of illegal goods is from VND 50,000,000 to under VND 100,000,000;

A fine of from VND 30,000,000 to VND 50,000,000 shall be imposed if the value is 100,000,000 VND or above but does not constitute a criminal offence.

Clause 6 Article 14 Decree 127/2013 / ND-CP, Clause 11 Article 1 Decree 45/2016 / ND-CP
Penalties for export or import of goods on the list of goods requiring a license without a license; export or import of goods that do not satisfy conditions, technical regulations and standards; export or import of goods without labels as prescribed by law the fine shall be doubled if the customs dossier is submitted after 30 days from the day on which the shipment arrives at the border checkpoint Clause 7 Article 14 Decree 127/2013 / ND-CP, Clause 11 Article 1 Decree 45/2016 / ND-CP
a temporarily importing and re-exporting exporting goods without a license though a license is compulsory; VND 30,000,000 to VND 60,000,000 Clause 8 Article 14 Decree 127/2013 / ND-CP, Clause 11 Article 1 Decree 45/2016 / ND-CP
temporarily importing and re-exporting goods on the list of goods banned or suspended from temporary import. 60,000,000 to VND 80,000,000 Point a Item 9 Article 14 Decree 127/2013 / ND-CP, Clause 11 Article 1 Decree 45/2016 / ND-CP
 Exporting, importing, or bringing to Vietnam goods on the list of goods banned or suspended from export or import A fine of from VND 5,000,000 to VND 10,000,000 shall be imposed if the value of illegal goods is under VND 30,000,000;

A fine of from VND 10,000,000 to VND 30,000,000 shall be imposed if the value of illegal goods is from VND 30,000,000 to under VND 50,000,000;

A fine of from VND 30,000,000 to VND 50,000,000 shall be imposed if the value of illegal goods is from VND 50,000,000 to under VND 100,000,000;

A fine of from VND 50,000,000 to VND 80,000,000 shall be imposed if the value is 100,000,000 VND or above but does not constitute a criminal offence.

Point b Clause 9 Article 14 Decree 127/2013 / ND-CP, Clause 11 Article 1 Decree 45/2016 / ND-CP
Violations against regulations on management of bonded warehouses, tax-suspension warehouses and container freight stations Taking goods, machinery and equipment from the domestic market into a bonded warehouse serving packaging, classification or maintenance without notifying the customs; 1.000.000 đồng đến 2.000.000 đồng Clause 10 Article 14 Decree 127/2013 / ND-CP, Clause 11 Article 1 Decree 45/2016 / ND-CP

Clause 1 Article 15 Decree 127/2013 / ND-CP, Clause 12 Article 1 Decree 45/2016 / ND-CP

Providing strengthening, division, packaging services; consolidation, classification, preservation, sampling of goods in the bonded warehouse without notifying the customs;
Transferring the ownership of goods in the bonded warehouse without notifying the customs.
Moving goods from one bonded warehouse to another without a written permission from the Director of Customs Department in charge of the bonded warehouse VND 2,000,000 to VND 5,000,000  

Clause 2 Article 15 Decree 127/2013 / ND-CP, Clause 12 Article 1 Decree 45/2016 / ND-CP

b) Expanding, contracting, or moving the bonded warehouse or container freight station without permission from the customs authority;
c) Storing goods that are not conformable with the bonded warehouse lease contract or not appropriate for storage conditions of the warehouse;
d) Providing banned services in the bonded warehouse or container freight station;
dd) Failure to punctually submit reports on the bonded warehouse, tax-suspension warehouse or container freight station;
Failure to declare or to provide correct information about the names, categories, quantity, quality, or value of goods sent to a bonded warehouse or tax-suspension warehouse, goods sent to abroad from a bonded warehouse or tax-suspension warehouse. VND 5,000,000 to VND 10,000,000
Sending goods that, by law, must not be stored in bonded warehouses to a bonded warehouse; VND 10,000,000 to VND 20,000,000 Clause 3 Article 15 Decree 127/2013 / ND-CP, Clause 12 Article 1 Decree 45/2016 / ND-CP
Liquidating goods in a bonded warehouse or tax-suspension warehouse;
Destroying goods in a bonded warehouse or tax-suspension warehouse against the law.

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