During the five-year vehicle import ban from 2020 to 2025, most imports halted, but some exploited loopholes, leading to fraud cases and revenue losses. Common methods included abusing migrant worker schemes, meant for personal use after overseas employment. Importers collaborated to bring commercial quantities, evading full duties.
Duty-free permits for diplomats, public servants, or NGOs were misused, with vehicles sold onward illegally. Undervaluation was rampant – declaring lower specs or values to reduce taxes. Misclassifying hybrids or EVs also occurred for concessions. Cross-border letters of credit exploited gaps before tightening. Notable cases were, in late 2024, customs seized luxury SUVs with fake old registrations.
Investigations revealed billions in lost revenue from hundreds of illegal vehicle imports since 2018.
BYD electric vehicle imports involved alleged misclassification, detaining over 1,000 units amid disputes. Undervalued shipments halted, with re-export orders. Customs responded aggressively. The ASYCUDA World system automated declarations and valuations.
National databases provide reference prices, preventing undervaluation. Integration with Motor Traffic Department enables real-time registry checks, blocking fraudulent registrations. Central Valuation Directorate and specialized units enhanced scrutiny. Recent actions included probes with police, indictments of officials, and policy plugs like limiting migrant imports.
These digital collaborations reduced fraud significantly by 2025-2026. Such practices harmed the economy: lost revenue strained public finances, unfair competition hurt honest importers, and unsafe vehicles risked roads. The crackdown restored integrity, protecting post-ban fairness. Buyers must verify through official channels to avoid tainted vehicles. This episode highlights vigilance needs in import controls.
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