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VSA outlines ways to end tax fraud by steel importers
The Vietnam Steel Association (VSA) has submitted to the Government some solutions against tax fraud when importing steel, especially from ASEAN countries and China.
Under the petition, State management offices would build technical barriers against trade fraud committed by steel exporters from non-ASEAN countries who want to enter the domestic market.
For steel products from ASEAN countries, offices would intensify supervision of importers clearing customs procedures while importing steel products from ASEAN nations.
The association also suggested there should be regulations verifying all products related to steel imports. The checks should be made by independent supervisors at ports before delivery to Vietnam.
The association proposed the solutions after it found that steel importers, while making customs declarations about imports, manipulated unclear regulations to enjoy zero important tax rate for some steel products.
They cited the example of wire rod with Boron substance imported from China. This was considered an alloy steel when imported to Vietnam, which meant it could claim 0 percent tax rate. But the actual quality of the product was the same as construction steel, which should have been taxed 12 percent.
With the zero tax rate, imported steel products have been sold at cheaper prices than domestic products.
The association said Vietnam’s steel sales in the first quarter of this year dropped 30 percent to about 698,000 tonnes compared with the same period last year.
vietnamplus
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