Directive No. 853/1997/CT-TTg on combating smuggling in the new situation

DIRECTIVE

On combating smuggling in the new situation
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Decision No. 85/CP dated July 11, 1997 of the Government has proposed some urgent measures to combat smuggling; on July 16, 1997, the Prime Minister issued Circular No. 51-VI urging all levels and sectors to implement these measures. However, recently, smuggling activities and especially fraudulent trade practices to evade taxes have been occurring extremely seriously. Some ministries, sectors, and localities have relaxed management over import and export activities; in some cases, state management agencies and functional bodies have turned a blind eye or provided conditions for smugglers to operate. Many import and export trading companies, including those of the Public Security Force, the Military, economic units of the Party, and mass organizations, due to local interests, have directly participated in smuggling or provided cover for smugglers. Functional agencies responsible for combating smuggling have not closely coordinated; in some places and at certain times, their activities have even overlapped and rendered each other ineffective. There have been instances where domestic and foreign smugglers have colluded with degenerate elements within anti-smuggling forces to disrupt and render ineffective the operations of these agencies, while higher-level leadership has lacked oversight and supervision of subordinates, resulting in some violations not being strictly dealt with, and there are still cases of anti-smuggling officials protecting smuggling activities. This situation has caused harmful economic and social consequences, hindering the healthy development of the national economy. To maintain discipline and uphold the rule of law, restore order in commercial activities, the Prime Minister requests that ministers, heads of ministerial-level agencies under the Government, and chairpersons of provincial and municipal people's committees immediately implement the following actions:

1. Combating smuggling is a significant, ongoing, and long-term task of the State. Therefore, authorities at all levels must concentrate resources to strongly combat smuggling and fraudulent trade practices, particularly organized smuggling activities. In the short term, from now until the end of the first quarter of 1998, the General Department of Customs will lead, with the participation of the Ministry of Home Affairs, the Ministry of Trade, and the Ministry of Finance, in conducting comprehensive inspections of goods undergoing customs procedures at ports and border gates, identifying smuggled goods and fraudulent trade practices to evade taxes. For goods transferred to localities and those permitted to be inspected outside border gates, preliminary inspections must be conducted immediately upon arrival at the first port of entry and then sealed with customs lead seals; if the goods are loose and cannot be sealed, customs officers must accompany them directly on transport vehicles and conduct detailed inspections upon arrival at designated locations.

The Ministry of Trade will lead, with the participation of the Ministry of Home Affairs and the Ministry of Finance, in comprehensively inspecting the business activities of organizations and individuals operating imported goods and materials stores to purify the domestic market; simultaneously, measures must be taken to compel enterprises to only engage in businesses registered with the authorities.

Ministries, sectors, and provincial and municipal people's committees shall conduct comprehensive inspections of subordinate import and export enterprises (including economic units of the Party, mass organizations, Public Security, and Military) regarding their business activities, financial income and expenditure systems, accounting records...

Ministries and sectors with responsibilities for combating smuggling must immediately develop specific strategies for combating smuggling within their assigned scope and duties.

2. Strictly handle smuggling and fraudulent trade cases; investigate, conclude, and promptly deal with typical smuggling cases to serve as a deterrent and educational example. If import and export trading units engage in fraudulent trade practices to evade taxes, customs authorities must immediately suspend customs procedures for such units and not accept excuses blaming foreign parties for sending incorrect goods to request returns after discovery. Ministers, heads of ministerial-level agencies under the Government, and chairpersons of provincial and municipal people's committees shall issue decisions to suspend operations or revoke business licenses for violating units. All types of imported goods not passing through border gates, passing through border gates but not declared or declared inaccurately; goods sold in stores, stored in warehouses, or transported on roads without proof of legitimate import origin shall be considered smuggled goods and confiscated and dealt with severely. Transport means used for smuggling shall be handled according to the law, and the owners and heads of units owning such means shall also be dealt with according to the degree of violation. Seized items from smuggling cases shall be confiscated and dealt with promptly; funds obtained from anti-smuggling efforts, after deducting rewards for units and individuals as stipulated, shall be retained entirely for local budgets to support infrastructure construction, social welfare, anti-smuggling work, and must be prioritized for border communes.

3. Central ministries and sectors have the responsibility, together with localities, especially border and coastal areas, to effectively implement economic, cultural, and social policies to improve people's living standards in all aspects through poverty reduction programs, Program 327, and other projects related to economics, culture, and society... ensuring stable livelihoods for the people and preventing smugglers from exploiting them to become hired laborers ("cửu vạn") for their operations.

The People's Committees of provinces and centrally governed cities under the direct leadership of the Party Committee and the supervision of the People's Council shall strictly manage economic units engaged in import and export activities within their localities and those of the central government located on their territories; they shall instruct the People's Committees of districts and towns and relevant local agencies such as Market Management, Public Security, Customs, Taxation, etc., to develop specific plans for combating smuggling, thoroughly investigate smuggling networks, organizations, individuals, and households engaging in the sale of smuggled goods, and coordinate inspections and handling measures. Mass organizations, people's groups, and mass media shall cooperate with local authorities to effectively carry out propaganda and mobilization work to ensure that the public fully understands the harmful effects of smuggling, recognizes that smuggling is truly a national calamity, and views the struggle against smuggling as a common task of the entire Party, the entire people, all sectors, and all levels, considering providing conditions and assisting anti-smuggling forces as well as not aiding smuggling in any form as expressions of patriotism and civic responsibility.

Ministries, sectors, provincial and centrally governed city People's Committees shall be responsible for consolidating and building clean and strong anti-smuggling forces, equipping them with necessary means and techniques to effectively detect and prevent all smuggling activities. Heads of ministries and sectors, Chairmen of provincial and centrally governed city People's Committees shall directly lead and bear responsibility before the Prime Minister for anti-smuggling efforts in their respective ministries, sectors, and localities. Each month, ministries, sectors, and provincial and centrally governed city People's Committees must report the results of implementation to the Prime Minister.

4. The General Department of Customs shall be responsible for leading and coordinating with the Ministry of National Defense, the Ministry of Home Affairs, the Ministry of Trade, the Ministry of Finance, and other related ministries and sectors to implement this Directive. The Ministry of Home Affairs, the Ministry of Finance, the Ministry of Trade, and the General Department of Customs shall immediately issue joint Circulars guiding the implementation and organizing coordination among anti-smuggling forces.

The General Department of Customs shall be primarily responsible for anti-smuggling efforts at sea and border crossings, taking effective measures to prevent the entry of smuggled goods through these routes.

Other functional ministries and sectors shall have direct responsibilities in anti-smuggling efforts along specific routes as follows:

- The Ministry of National Defense shall be responsible for directing naval forces and Border Guard troops to participate in combating smuggling at sea and along land borders. Forces of the Ministry of National Defense shall combat smuggling in territorial waters, exclusive economic zones, and land borders where there are border guard posts but no customs organizations.

- The Ministry of Home Affairs needs to focus on implementing operational measures to detect smuggling organizations and networks both domestically and transnationally, clarify and conclude major smuggling cases for prompt trial, and actively support other anti-smuggling forces in completing their tasks.

- The Ministry of Trade shall strictly manage the issuance of quotas for exports and imports, especially for imported goods that can already be produced domestically. Promptly propose adjustments to commodity policies to align with current realities. Market management forces shall take the lead in combating illegal business practices and fighting the sale of smuggled goods circulating in the domestic market.

- The Ministry of Finance shall be responsible for coordinating with relevant ministries and sectors to promptly implement measures such as affixing labels to manage key commodities like alcohol, tobacco, bicycles, electronic goods, etc. Immediately establish a system for using funds generated from anti-smuggling activities (fines, proceeds from confiscated goods sales). In the short term, consider allocating emergency funding to equip necessary means and materials for anti-smuggling activities of various sectors and localities until the end of the first quarter of 1998.

5. The Ministry of Culture and Information shall cooperate with the People's Newspaper, Vietnam Radio, Vietnam Television, and central and local information and press agencies to plan and organize the implementation of publicity campaigns for this work.

Ministers, heads of ministerial-level agencies, and chairmen of provincial and centrally governed city People's Committees shall be responsible for organizing the implementation.