Phone importers accused of trade fraud

Local customs departments have accused some domestic cell phone companies of fraud amidst new import regulations.

Companies are said to take administrative loopholes when importing cell phones to Viet Nam by disassembling them.

Regulation 197/TB-BTC, issued by the Ministry of Industry and Trade, came into effect in early June and is aimed at better controlling the import of goods, limiting poor quality and counterfeit imports and combating trade fraud.

Under the new regulation, local companies must import cell phones, cosmetics and liquor via three seaports in Hai Phong, Da Nang and HCM City instead of via air routes as before. In addition, import companies will now have to undergo customs clearance checks at ports and present documents to prove that they are designated and authorised distributors or importers of genuine goods.

HCM City Customs has sent a report to the General Customs Department warning that some companies imported components of cell phones instead of assembled ones via air routes. The report revealed that most imported components were disassembled mobile phones.

One business director admitted the possibility of importing disassembled cell phones to Viet Nam by air or land.

Earlier, HCM City Customs called on the General Department of Customs to implement strict control measures on shipments of cell phone components imported into Viet Nam.

According to Tran Van Hoi, deputy general director of Hai Phong Customs, any enterprise found guilty of fraud would face heavy fines.

According to statistics, import turnover from cell phones reached US$936 million during last yea. Imports from China, which occurred through intermediaries, accounted for nearly 85 per cent of the total amount.

Customs at the Tay Ninh border gate recently discovered a ring of cell phone smugglers transporting smart phones from Cambodia to Viet Nam.

Market reaction

Nguyen Quang Minh, managing director of the An Binh Telecommunications Co Ltd (ABTel) said that the new regulation has slowed down his company’s phone imports due to congestion.

Minh called on the Ministry of Industry and Trade to remove the new regulation in order to allow faster custom clearance processing at inland warehouses to minimise pressure on customs clearance procedures at seaports, also permitting businesses to import samples via air.

A salesman at Nhat Cuong Mobile, a local mobile shop, said that, after the new regulation came into force, import duration has increased to at least one and a half months instead of one only month. He added that import restrictions on mobile phones could increase retail prices and smuggling, especially in famous mobile phone accessories.

Dinh Anh Huan, general manager of thegioididong Ltd, co, said that the financial expenses associated with the import of mobile phones would increase which, coupled with current economic difficulties, would lead to a decrease in purchasing power. — vns

Tags: Vietnam Telecom, Vietnam telecom maket