Source: vnbusiness.vn
The General Department of Customs (Ministry of Finance) has just issued a document requesting the customs departments of the provinces: Dien Bien, Thanh Hoa, Nghe An, Ha Tinh, Quang Binh, Quang Tri, Thua Thien Hue, Quang Nam, Gia Lai, Kon Tum to strengthen the fight against trade fraud and illegal transportation of sugar cane from Laos.
Recently, the General Department of Customs received information from the Vietnam Sugarcane and Sugar Association (VSSA) about the risk of trade fraud related to the transportation of sugarcane from Thailand through Laos to Vietnam to evade Vietnam’s trade defense measures.
According to the Association, Thai sugar can be exported to Laos through temporary import and re-export to transport to areas near the border between Vietnam and Laos and then illegally transported into Vietnam.
Smuggled sugar seized in Long An.
Therefore, in order to promptly detect and prevent this item, the General Department of Customs requests the customs of the above localities to coordinate with functional forces such as the Police and Border Guard in the area to strengthen customs inspection and control of goods and vehicles passing through the border areas by road, river, and seaports under customs control.
The General Department of Customs pays special attention to the area near Lao Bao border gate, the Se Pon River area (Quang Tri), the warehouses of goods in Lao Bao town, the transit warehouses from Dong Ha city (Quang Tri) and neighboring areas to promptly detect and prevent acts of smuggling and illegal transportation of sugarcane across the border.
Customs authorities shall intensify propaganda to people and businesses not to assist in legalizing the import of sugarcane of unknown origin in the market; propagate to raise awareness of law compliance for border residents, individuals and organizations about violations of the law in smuggling and illegal transportation of sugarcane across the border.
Mr. Nguyen Van Loc, Chairman of VSSA, commented that the Vietnamese sugar industry is struggling to survive due to narrowed output and unfair competition from smuggled sugar. Accordingly, fraudulent activities in the trade of smuggled sugar exploded in the last months of 2023 and early 2024, as demonstrated by the record volume of smuggled sugar (mainly from Thailand) discovered by authorities in the first months of 2024, blocking the output of sugar produced from sugarcane, causing sugar factories to be unable to sell.
“In the 2022-2023 period, Vietnam’s sugar demand is estimated to be around 2.1-2.2 million tons. That means smuggled sugar accounts for around 30% of the domestic market share,” Mr. Loc pointed out. At the same time, Mr. Loc added: “By July 2024, the Vietnamese sugar industry will still have around 65% of the 2023/24 crop output. The sugarcane chain is facing the risk of being destroyed.
Due to large inventories and the continuous increase in smuggled sugar, the sugar industry has been pushed into a state of oversupply, and accordingly, domestic sugar prices are decreasing.
Since the beginning of the year, authorities have arrested 280 cases of smuggling Thai sugar, with a volume of over 700 tons and a value of over VND13 billion. The police have prosecuted 3 cases and 3 defendants for illegally transporting goods across the border.
