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Euro Auto seeks leniency over CBU violations

Released at: 17:00, 27/12/2016

Euro Auto seeks leniency over CBU violations

Photos: Viet Tuan/Illustration

Official BMW importer petitions PM over pending prosecution for violations in its CBU imports.

by Quynh Nguyen

The Euro Auto Corporation (EAC), the official BMW importer in Vietnam, has sent a letter of petition to the Prime Minister and related agencies asking that its violations in the import of completely built-up (CBU) motor vehicles not be prosecuted.

The Ministry of Finance (MoF) previously asked the General Department of Vietnam Customs and the Supreme People’s Procuracy to consider prosecuting EAC for its violations.

EAC said it has sent a written explanation to the MoF. The BMW Group also sent an email affirming that the group did not provide certificates of origin (C/O) to EAC because there was no request to do so from Vietnam Customs. It later did provide C/O to EAC, as per regulations.

EAC also said that the BMW Group will meet with MoF and Vietnam Customs in January to request the ministry and the customs office clear is imported cars still in port.

According to leaders from EAC, the company has been receiving imported cars with taxes fully paid since the end of November. It presented C/O to Vietnam Customs on December 23 after receiving them from the BMW Group.

MoF earlier this month requested that customs clearance on BMW shipments into Vietnam except be temporarily suspended, except in cases with diplomatic immunity.

Following inspections, MoF found that EAC had violated regulations relating to the import of CBU vehicles.

The importer purchased BMW motor cars without permission or customs clearance from customs authorities and did not provide C/O and documents relating to the BMW vehicles imported. The importer was accused of using fake purchase contracts to import the BMWs.

In a press release on November 30, EAC responded to the MoF’s accusations and said it had answered all questions from the ministry and stressed it was legally compliant and transparent in its financial report and tax requirements.

“We reaffirmed that the Euro Auto Corporation has always complied with Vietnamese laws and acted in its customers’ interests,” EAC noted. “In case our explanations are not accepted by the MoF, we will require assistance and intervention from other competent authorities in order to protect the rights and legitimate interests of businesses and customers.”

MoF, meanwhile, asked Vietnam Customs to work with the Supreme People’s Procuracy in prosecuting EAC.

EAC’s profit increased 40 per cent in 2014 and 2015, importing the three brands it distributes in Vietnam, which have a consumer satisfaction index of over 97 per cent.

BMW sales saw impressive results, with three new models introduced in the luxury class: the BMW X6 Sport Activity Coupe, the BMW Series 2 Active Tourer, and the BMW Series 6 Gran Coupe. The BMW Series 1 and BMW X1 Sport Activity Vehicle also attracted many customers. The BMW Series 3, with 320i and 330i engine options, was a major contributor to EAC’s business results.

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