Directive No. 3890-TC/TCT on implementing efforts to combat smuggling in new circumstances

DIRECTIVE

OF THE MINISTER OF FINANCE NO. 3890 TC/TCT ON November 3, 1997 ON IMPLEMENTING STRUGGLES AGAINST SMUGGLING IN NEW SITUATIONS

NĂM 1997 VỀ THỰC HIỆN ĐẤU TRANH CHỐNG BUÔN LẬU

IN NEW SITUATIONS

In light of the increasing smuggling activities that not only severely affect domestic production, business operations, and social life but also impact the national financial foundation, the Government has issued Resolution No. 85/CP on July 11, 1997, proposing urgent measures to combat smuggling, and the Prime Minister has issued Directive No. 853/1997/CT-TTg on October 11, 1997, regarding struggles against smuggling in new situations. The Ministry of Trade, Finance, Interior, and the General Department of Customs have promulgated joint Circulars guiding implementation to effectively prevent illegal imports and circulation of smuggled goods in the market, preventing tax losses, and enhancing the responsibility of each sector and level in combating smuggling.

To strictly implement the Government's Resolution, the Prime Minister's Directive, and the Joint Circulars, the Minister of Finance requests the heads of units under the Central and local Financial System (including Financial agencies, Tax agencies, State-owned Enterprise Asset Management agencies, Development Investment agencies, National Treasury agencies, Financial Inspection agencies, etc.) to immediately carry out the following tasks:

1. Must recognize the task of combating smuggling as an important, ongoing, and long-term task and must be carried out comprehensively and widely from state management agencies to every cadre, worker, and employee within the industry as well as the entire population. From this, determine the responsibility of their own agency in participating in the fight against smuggling, proactively build plans, measures, and focus on directing effective implementation in their respective fields of responsibility.

2. Organize for all cadres, workers, and employees in the Financial System to study, learn, and fully grasp the spirit and content of the Government's Resolution, the Prime Minister's Directive, and the Joint Circulars guiding implementation so that each cadre, worker, and employee can enhance their ideological awareness, recognize their responsibilities in the struggle against smuggling, integrate management work with anti-smuggling work into regular work. Through management work, promptly and strictly prevent, detect, and handle acts of smuggling, violations of laws, and violations of state financial management mechanisms.

3. Closely combine the deployment of anti-smuggling efforts with the successful achievement of economic-budgetary targets for 1997 and subsequent years approved by the National Assembly, contributing to strengthening the national financial foundation.

4. Heads of agencies under the Financial System must proactively organize a thorough review of all documents they have established or other agencies have established that contradict current government regulations on import-export management, market management, financial management, and anti-smuggling. These documents must be abolished immediately or recommendations made to relevant agencies to suspend their enforcement. From now on, any locality that continues to implement financial management regulations contrary to those of the Government and Circulars of the Ministry, thereby increasing smuggling activities or hindering anti-smuggling efforts, will bear full responsibility before the Minister of Finance.

5. Strictly prohibit any cadre or employee under the Financial System from participating in smuggling or aiding and abetting smuggling activities. Those who violate will be subject to appropriate administrative disciplinary action or prosecution under the law. Heads of agencies under the Financial System who cover up for violator cadres will also be held jointly responsible.

6. Assign responsibilities to each agency within the Financial System as follows:

- The Financial Policy Department shall cooperate with the General Department of Taxation and the State Budget Department to study and submit to the Ministry for signing and issuing a regime for managing and using funds from anti-smuggling activities.

- Financial agencies at all levels and the National Treasury shall rigorously inspect the management of confiscated goods, organize public auctions of confiscated goods, and quickly concentrate revenues into the State Budget. Proactively allocate funds and bonuses in a timely and adequate manner to forces and individuals participating in anti-smuggling activities according to current regulations.

Closely manage expenditures of administrative, public service organizations, mass organizations, armed forces units, etc., using state budget funds, firmly refuse to reimburse any cases of purchasing imported goods without valid invoices and supporting documents.

- The General Department of Taxation shall review regulations on import and export taxes, especially those concerning the list of imported goods, tax rates, and taxable prices, and submit proposals to the Ministry or the Prime Minister for reasonable amendments and supplements to prevent organizations and individuals from exploiting loopholes to evade taxes, and to prevent inspection forces from aiding smuggling activities.

Tax agencies at all levels shall closely coordinate with relevant sectors to strictly and thoroughly implement the Joint Circular of Trade, Finance, Interior, and the General Department of Customs on anti-smuggling, organizing the affixing of labels on imported goods in stock according to the guiding Circular.

Combine anti-smuggling efforts with tax collection management. Implement strict handling of all organizations and individuals engaged in importing goods for business without valid invoices and supporting documents according to the guiding Circular on invoice and document regimes for goods circulating in the market. Organize investigations and adjustments of taxable income of businesses dealing in imported goods to accurately reflect actual income.

- The Central Inspectorate of Finance and provincial inspectorates shall take the lead in coordinating with the tax system and State Capital and Asset Management at enterprises to proactively cooperate with relevant central and provincial authorities to conduct comprehensive inspections of the business operations of import-export enterprises or enterprises dealing in imported goods. Strictly identify and handle cases of incorrect declaration and payment of import duties according to current export and import tax laws or violations of invoice and document regulations. Any cases of trading in imported goods without valid invoices and documents must be promptly recorded and reported to the competent authority for decision-making on handling.

For imported assets purchased without valid invoices and documents, they must be resolutely rejected during financial settlement checks for the year.

- The agency managing development investment funds, when approving final accounts for construction projects, must check invoices and documents for materials and equipment included in the project. Materials and equipment that are imported goods without valid invoices and documents must be excluded from the value of the project to reduce allocated capital.

- Financial inspection agencies at all levels shall proactively develop plans and coordinate with ministries, local People's Committees, and units under the financial system to inspect the collection of import taxes at some border gates and the business situation of key import-export enterprises or enterprises dealing in imported goods, assisting these units in strictly implementing the Law on Export Tax and Import Tax as well as timely addressing any violations.

Monthly, the General Department of Taxation shall assist the Ministry in promptly summarizing the results of anti-smuggling efforts across the sector to report to the Prime Minister and propose measures to help the Ministry and heads of subordinate units effectively lead and direct anti-smuggling work within the sector.

To fulfill the above requirements, no later than the 30th of each month, subordinate units of the Ministry (State Capital and Asset Management at Enterprises General Department, Investment and Development General Department, National Treasury, Financial Inspection Department) and provincial finance departments must compile the results of their implementation and send them to the General Department of Taxation for consolidation and reporting to the Ministry before the 5th of the following month.