BMW distributor taken to court

January 01, 2017 | 15:15

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The General Department of Vietnam Customs decided to take Euro Auto Corporation, the authorised distributor of BMW and Mini automobiles and BMW motors, to the court after discovering signs of smuggling and trade fraud, according to newswire Vnexpress.

A representative of the General Department of Vietnam Customs said that the decision was based on investigation results and the approval of the Supreme People’s Procuracy of Vietnam.

A representative of Euro Auto Corporation told Vnexpress that the company is surprised with the General Department of Vietnam Customs’ decision.

Earlier, in late November, the Ministry of Finance (MoF) asked the General Department of Vietnam Customs to collaborate with the Supreme People’s Procuracy of Vietnam to investigate foreign-owned Euro Auto Corporation after detecting signs of smuggling and trade fraud.

Notably, the company arbitrarily bought BMW automobiles without completing customs clearance or receiving the customs authority’s permits.

The company also refused to provide certificates of origin as well as the relevant files of BMW automobiles for the authority, thus drawing suspicions of trade fraud.

Furthermore, Euro Auto used counterfeit bills and sales contracts to import BMW automobiles.

However, both representative of Euro Auto and BMW Group confirmed that the lack of certificates of origin during the inspection was because Vietnamese customs authorities did not ask Euro Auto Corporation to submit them after purchasing BMW automobiles.

BMW also added that representatives of the group, the MoF, and the General Department of Vietnam Customs will participate in a working session in Hanoi in mid-January 2017.