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Vietnamese officials highlight duty-free leakage concernsVietnamese officials highlight duty-free leakage concerns
Gavin Lipsith
26-Jun-2006
Customs authorities claim that local residents are abusing their duty-free privileges at the Moc Bai Duty-Free Centre at the Cambodian border
Vietnamese customs authorities have expressed concern over dramatic leakage from the Moc Bai Duty-Free Shopping Centre since it opened on the border with Cambodia last October. Officials estimated that only 20% of the 500,000 bottles of liquor sold since its opening have been purchased by legitimate tourists, according to the Vietnam News Agency.The Moc Bai Customs branch reported that local residents are being tempted into abusing duty-free privileges, which allow visitors to Cambodia to buy duty-free goods worth VND500,000 ($31) every day, by selling on their purchases to local retailers. One local farmer told authorities that he was offered VND1.5m ($91) for every bottle of Chivas Regal - priced at VND630,000 ($39) in the duty-free centre.
A Customs spokesperson also claimed that 8 out of 26 retailers operating at the duty-free centre had been caught buying goods illegally, although he added that loopholes in the system meant little could be done to stem the problem.
The news follows the opening of a second duty-free centre at Moc Bai last month, where local companies can rent out one of 416 155sq m (1,668sq ft) retail lots and are granted exemption from VAT, excise duties and the local consumption tax, plus a favourable income tax scheme. 95 of the 104 spaces already available have been taken, according to the developer.
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