LG Electronics Vietnam Fined for Non-Transparent Declaration

Tuan Minh

11:57 30/12/2016

BizLIVE - Vietnam’s customs authorities have fined LG Electronics for not having fully declared “special relations” with other sister companies.

LG Electronics Vietnam Fined for Non-Transparent Declaration

The head office of LG Electronics Vietnam at the Dinh Vu-Cat Hai Economic Zone in Hai Phong. Photo: Internet

Vietnamese customs authorities have fined LG Electronics Vietnam Hai Phong Ltd. Co. 1.3 billion dong ($57,270) for not having fully declared information for a number of import items, the Thanh Nien (Young People) newspaper reported.
According to the General Department of Vietnam Customs, LG Electronics Vietnam Hai Phong did not declare special relations, insurance premiums, container imbalance charge (CIC) when importing goods from offshore partners that are affiliated to LG Group.
LG Electronics Vietnam earlier attributed the non-declaration of special relations to ‘oversight’.
Non-declaration or false declaration of special relations with other affiliates of the same group can be regarded as a factor to determine whether a company conducts transfer pricing or evade tax, according to the newspaper.
LG Group is a major foreign investors in Vietnam. LG Display earlier this year started construction of a $1.5 billion OLED screens plant in the northern city of Hai Phong in May this year while LG Innotek in September received a license for its $550-million camera module factory also in Hai Phong.

TUAN MINH

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