Vietnam prosecutes Vinapco for petrol smuggling

The General Department of Vietnam Customs (GDVC) said it will prosecute Vietnam Air Petrol Company (Vinapco), a subsidiary of Vietnam Airlines involved in trading jet fuel, for petrol smuggling and tax evasion amounting to billions of Vietnamese dong.
According to the records of the Anti-Smuggling and Investigation Department, which is under the Ministry of Finance (MoF), Vinapco made a customs declaration indicating it will temporarily import more than 54,000 tons of Mogas 92 petrol from Singapore. The document was dated May 5, 2012.
In early July, Vinapco submitted seven customs declarations indicating it would re-export by sea 422,000 tons of petroleum worth VND8 billion (US$383,500) to a dummy Chinese company, Beihai Seafood and Oil Supply Limited Company. The shipment was supposed to be re-exported through Vietnam’s Ta Lung border gate in the northern province of Cao Bang, but was actually sold domestically in the northern provinces of Hai Huong, Phu Tho, Thai Binh and Thai Nguyen.
Upon learning of the investigation, Vinapco reportedly borrowed petrol from other companies to offset the missing inventory. The company also sought approval from customs to re-import the fuel, stating that its Chinese partner had declined to accept delivery. The re-import request was approved by the Haiphong Customs on August 1.
In late November, the case was transferred to the Criminal Police Department under the Ministry of Public Security for further investigation.
According to the Ministry of Industry and Trade, the practice of temporarily importing fuel and later on re-exporting it had inadvertently led to the rise of legalized smuggling. The practice has become an easy way to evade export and import duties. The ministry said that in the 2009-2012 period, companies had registered about two million tons of fuel for re-export, but the fuel was actually sold in Vietnam. (November 30, 2012)