General Department of Customs warns about tax evasion tricks in steel imports

On November 20, information from the General Department of Customs said that recently, the General Department of Customs has issued a number of documents guiding and rectifying the Customs Departments of provinces and cities to strengthen inspection and control of fraud in declaring goods names and codes, including many documents warning of risks for imported iron and steel products.

However, the General Department of Customs continues to receive some warning information about the act of falsely declaring the name, type, and code of imported steel products to fraudulently evade import tax and self-defense tax and anti-dumping tax.

Therefore, on November 18, the General Department of Customs issued Document No. 5 646/TCHQ-TXNK to provincial and municipal Customs Departments to direct a number of contents related to imported steel products.

The General Department of Customs has issued a document pointing out some signs of tax evasion in the import of steel products. (Illustration photo)

The General Department of Customs has pointed out some signs of risk in declaring goods names and codes such as: False declaration of goods names, types, codes to evade import tax, taking advantage of the difference in preferential import tax rates for non-alloy steel products between hot-rolled and cold-rolled types, unplated, plated or coated types and plated, plated or coated types. False declaration of goods names, types, codes to evade import tax, taking advantage of the difference in preferential import tax rates between non-alloy steel products and stainless steel, other alloy steel products. False declaration of goods names, types, codes of items not subject to trade defense measures or excluded subjects to fraudulently evade additional import tax. False declaration of goods names, types, codes to evade import tax, taking advantage of the difference in special preferential import tax rates between goods codes;…

To strengthen the management of customs agencies, promptly detect and handle violations in declaring names, types and codes of imported goods to fraudulently evade import tax, self-defense tax and anti-dumping tax, the General Department of Customs requests the provincial and municipal Customs Departments to strengthen inspection and review of imported steel shipments on the basis of risk management to select key shipments/declarations, and conduct inspection and control according to regulations.

During the process of inspection and review of goods, if provincial and municipal Customs Departments encounter any problems or discover additional risk information, they must report to the General Department of Customs (through the Import-Export Tax Department) and propose a solution for unified control of the entire industry.