Electronics Firm Made False Declaration, Customs Says

The Department of Customs issued a bill to collect taxes due in recent years from the Philips Electronic Viet Nam Ltd. According to officials, company intentionally declared an incorrect product code to receive a lower import tax rate.

Phillips Viet Nam is located at Bien Hoa Industrial Zone 2, Lot 8 in Bien Hoa City. It imported components to produce compact fluorescent lamps from 2002 to 2007. When it made a declaration at the customs office, Phillips affirmed that it was importing components to make energy saver light bulbs.
This incorrect declaration allowed Philips save about 30 percent of their tariff rate from the 40 percent to 10 percent.
The Department also faulted Philips for not declaring other costs which were paid a few days later after importing the goods. All the costs should have been added to the income statement to calculate a correct net income before taxes.
The net income before taxes is a figure used for calculating the tariff, officials explained.

By L. Phong – Translated by Truong Son

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