Firm fined for exporting Chinese bicycles with “Made in Vietnam” labels
Firm fined for exporting Chinese bicycles with “Made in Vietnam” labels
The Post Clearance Audit Department, under the General Department of Vietnam Customs, has imposed an administrative fine on Binh Duong-based Excel Bicycle Company for falsifying the origins of their bicycles to bypass high U.S. tariffs.
The post clearance agency on December 28 told Nguoi Lao Dong newspaper that the Chinese-invested firm had imported 100% of its parts and accessories and then assembled the bicycles and electric bikes, attaching “Made in Vietnam” labels for export to the United States.
The fake labels gave the company access to preferential tariffs provided by the United States for Vietnam.
Under the regulations on the origins of goods and the Law on Foreign Trade Management on the origin of goods, the firm’s products failed to meet requirements to be classified as Vietnam-made items.
During the meeting session with the Post Clearance Audit Department, the firm admitted its violations.
As such, the General Department of Vietnam Customs levied an administrative fine on the firm for origin fraud and confiscated all its products being stored for export.
Tran Manh Cuong, deputy head of the Post Clearance Audit Department, said that during the inspections and investigation, the firm was also found to be violating application procedures for certificates of origin.
The general department on November 11 told the HCMC branch of the Vietnam Chamber of Commerce and Industry to revoke the firm’s certificate.
Cuong also noted that apart from the administrative fine and some additional penalties, the customs agency had proposed the Ministry of Industry and Trade report the violations to the relevant agencies.
