Transcript
Definasi Frod
Menyeleweng atau cuba menyeleweng pembayaran duti/cukai.
Menyeleweng atau cuba menyeleweng sebarang bentuk larangan atau syarat-syarat.
Menerima atau cuba menerima sebarang bentuk bayaran balik, subsidi oleh orang yang tidak layak menerimanya.
Menerima atau cuba menerima kelebihan komersial secara tak sah yang mana boleh memberi “injury” kepada perniagaan sah.
Types of Commercial Fraud
Undervaluation Overvaluation Relief fraud Temporary admission fraud Transit Fraud Transshipment fraud Transfer price Wrong description Counterfeit/pirated goods (IPR) Money laundering Cyber-crime
What Is Valuation Fraud?
Fraud Related To The Value Declared To Customs For Goods Imported or Exported
Types of Valuation Frauds
PATTERN 1 : Inflation Of Insurance & Freight Charges
SELLER BUYER
Goods & CIF Invoice
Payment (CIF Invoice Price)
Insurance Carrier Company
Inflation of Insurance and Freight in F.O.B basis Countries
PATTERN 2 : Insurance Not Declared & Inflate Freight Charges
Goods & CF Invoice
SELLER
Payment (CF Invoice Price)
BUYER
Insurance Company
Carrier
Insurance Not Declared in C.I.F basis Countries Inflation of Freight Charges in F.O.B Countries
PATTERN 3 : Insurance Not Declared & Freight Not Declared
SELLER
Goods & F.O.B Invoice
BUYER
Carrier Insurance Company
Payment (F.O.B Invoice Price)
Failure to include insurance and Freight in C.I.F basis Countries
PATTERN 4 : False/Fictitious Invoice
Goods & False Invoice for Customs Declaration
SELLER
Payment On Genuine Invoice
BUYER
What are the Risk Indicators? Case Studies
Risk Indicators on Invoices
No VAT/GST Registration number Linguistic error (Color, Lobor Vs Colour, Labour) Errors on Letterhead-Ex Incorporated (US), Limited (British), France (S.A), Germany (G.m.b.H), Italy (N.V), Switzerland (N.V or A.G) etc Same type facing on all documents Date Address Telephone number Currency Arithmetic errors
PATTERN 5 : Advance Payment Excluded
SELLER
Goods & Invoice (Balance) Payment Only on the Invoice Price
BUYER
Advanced Payment
PATTERN 6 : Credits Deducted
Goods & Invoice (Credit Deducted)
SELLER
Payment Only on the Invoice Price
BUYER
Importer may have Credits with the Seller and Value declared is only the amount shown on Invoice
PATTERN 7 : Indirect Payments
Goods & Invoice (Ind. payment Deducted)
SELLER
Payment Only on the Invoice Price Seller’s Debts Third Party
BUYER
Payment of Seller’s Debt
Importer may emit indirect payment
PATTERN 8 : Discounts
Goods & Invoice (Discount Deducted)
SELLER
Payment on the Invoice Price
BUYER
The Importer may claim an unjustified discount for customs declaration but payment is made on the actual value
PATTERN 9 : Onward Sale Arrangements
Goods & Invoice
SELLER
Payment Only on the Invoice Price
BUYER
Next Buyer Separate Payment
Pattern 10 : Manipulation of Prices
Example
ABC XYZ Total
500 200
USD 50,000 USD 5,000 USD 55,000
Rate of Duty-ABC nil/lower Rate of Duty-XYZ 30%/Higher
PATTERN 11 : Proceeds/Profit Sharing Not Declared
Goods & Invoice (Basic Price)
SELLER
Payment Only on the Invoice Price
BUYER
Next Buyer Additional payment (Profit Sharing)
PATTERN 12 : Selling Commision/Brokerage Excluded
Goods & Invoice
SELLER
Payment Only on the Invoice Price
BUYER
Selling Agent Broker
Payment
Typical Services of A Broker
Broker is an intermediary He acts for both buyer and seller He introduces the parties to each other Usually specializes in certain type of commodities, i.e, oil, sugar , grains Brokerage will be included in the invoice price if paid by seller Brokerage is not included in the invoice price if paid by buyer
Functions of Selling Agent
Seek customers for seller’s goods Soliciting and transmitting orders from buyer to seller Maintaining samples and showing them to perspective buyers Assisting in the arrangements for insurance, transportation , storage and export documents Assisting in the preparation of export invoices
Typical services of Buying Agent
Finding suppliers for the goods wanted by the buyer Expressing the needs of the buyer to the seller Obtaining samples for buyer’s inspection Assisting buyer in negotiating the best prices Assisting in arranging for insurance, transport and delivery Consolidating shipments from different sellers Preparing invoices for all goods purchased
PATTERN 13 : Container & Packing charges Excluded
Goods & Invoice
SELLER
Payment Only on the Invoice Price
BUYER
Packer
Payment of Container & Packing
PATTERN 14 : Royalties & Licence Fees excluded
Goods & Invoice
SELLER
Payment (Invoice Price)
BUYER
payment Patent or trademark Owner payment goods
Wholesaler
The Importer may fail to declare the royalties paid or payable
What is Royalties & Licence Fees
Is a payment to use a protected right It may relate to
Intellectual Property (copyright) Industrial Property (patent ) Commercial Property (trademark)
Pattern 15 : Assists Excluded
SELLER
Third Party
Payment of Assists to third party or incurred by the buyer himself Goods & Invoice
BUYER
Payment Only on the Invoice Price
PATTERN 16 :Overvaluation
1.
2.
Transaction Value can be overstated for the following reason: Obtaining higher drawback than actually due. Receiving a high amount of duty compensation from the exportation of locally produced goods which are entitled by law to such compensation.
PATTERN 16 : Overvaluation
3. 4. 5.
6. 7.
Evading anti-dumping duties Evading internal taxes Gaining a lower rate of duty from incorrect classification Evasion of exchange controls Money laundering
PATTERN 17 : Relief Fraud
What is Relief? “Clearance of goods free from Customs Import or export duties, provided they are imported or exported under specified conditions.”
PATTERN 17 : Relief Fraud
1. 2. 3. 4.
Reasons to commit Relief Fraud: Evade payment of duties and taxes Evade prohibitions or restrictions Pay a lower duty Avoid quotes
PATTERN 17 : Relief Fraud
1. 2. 3. 4.
Four phases of inward Relief Processing Pre-Entry Import Manufacturing/processing Export
PATTERN 17 : Relief Fraud
1. 2. 3. 4.
Risk Indicators for Pre Entry Stage Too generalized description of goods High Duty Goods First Time applicant No listing in trade registry
PATTERN 17 : Relief Fraud
1. 2.
3. 4. 5. 6.
Risk Indicators for Import Stage First time Importer Unrealistic time taken for completion of Customs formalities Inconsistent point of Clearance Generalized description of goods Incomplete documentation Quality/Quantity of imported goods inconsistent with goods to be produced
PATTERN 17 : Relief Fraud
1. 2.
3.
4.
Risk Indicators for Manufacturing Stage Excessive amount of wastage Excessive delay between import and processing Importing high quality materials to make low quality goods Disproportionate import of raw materials to manufacturing capacity
PATTERN 17 : Relief Fraud
1.
2. 3. 4. 5. 6.
Risk Indicators For Export Stage Quality and quantity does not match Imported goods Weight of container too light or too heavy Nature of exported goods Value of exported goods too low Unlikely market destination Abnormally long delay between the import and export stages.
PATTERN 17 : Relief Fraud
1. 2. 3.
Three phases of outward Relief processing Pre-Exportation stage Exportation stage Reimportation stage
PATTERN 17 : Relief Fraud
1. 2.
Risk Indicators for Pre-exportation stage Too generalized description High duty goods
PATTERN 17 : Relief Fraud
1.
2.
Risk Indicators for Exportation Phase Substitution of equipment with superior technology for equipment with inferior technology Substitution of original manufacturing number with false identification number
PATTERN 17 : Relief Fraud
1.
2.
3. 4.
Risk Indicators for Re-Importation phase Incorrect or false declaration concerning goods experted originally Incorrect declaration regarding the processes completed on the goods during the processing phase abread. False shipping documentation Incorrect declaration concerning the value of the goods.
PATTERN 18 : Temporary Admission Fraud
What is Temporary Admission Fraud? “Customs procedure under which certain goods can be brought into a Customs territory conditionally relieved from payment of duty and import prohibitions” Such goods must be imported for a specific purpose and re-exported within a certain time without having undergone any change
PATTERN 18 : Temporary Admission Fraud
1. 2.
3. 4.
Reasons for temporary Admission Fraud Evade payment of duties and taxes Substitute local goods with imported goods, diverting the imported goods to the home market Evade prohibitions/quotas Evade origin restrictions
PATTERN 18 : Temporary Admission Fraud
1. 2.
3. 4. 5. 6.
Risk Indicators for import Phase First time importers Inconsistent with importer’s business practices Inconsistent use of points of clearance Too generalized description of goods Related parties Inconsistent values for the goods
PATTERN 18 : Temporary Admission Fraud
1. 2.
Risk Indicators for Temporary Stay Goods not found at declared premises Facilities are not consistent with goods Imported
PATTERN 18 : Temporary Admission Fraud
1. 2. 3.
4. 5.
Risk Indicators for Re-Export Excessive wear and tear Excessive delay in export Quality and quantity does not match imported material Weight of the container too light/heavy Time between imported/export
PATTERN 19 : Transit Fraud
What is Transit? “Movement of goods from one Customs office to another in the same territory or to another destination outside the territory” Transit allows the suspension of Customs and other duties while under transport across the territory of a defined Customs area.
PATTERN 19 : Transit Fraud
This type fraud normally involves high duty goods Must provide a guarantee to back up the financial liability during the transit
PATTERN 19 : Transit Fraud
1.
2. 3. 4.
Weaknesses of Customs control Paper based system makes it impossible to carry out effective checks Inability to check systematically Forged or stolen Customs stamps Corrupt officers
PATTERN 19 : Transit Fraud
1.
2.
3. 4.
How they do it? Diversion for home use, substitute with Inferior goods Declare a low value on transit documentation, thus avoiding larger financial liability. Violator may post a forged guarantee Violator may furnish false documents
PATTERN 19 : Transit Fraud
1. 2.
3.
4.
Risk Indicators Seal and locks are tampered with Undue delay made between the arrival of goods and the request to grant transit facilities Documents found to be substituted or tampered with Unusual breakdown or malfunctioning of conveyance
PATTERN 19 : Transit Fraud
5.
6.
7.
Unscheduled change of routing without sufficient cause Inconsistency and incompleteness in the documents furnished at the office of destination. Inconsistency in weight, quantity, package, container or receptacles.