Automaker BMW can access its batch of cars being held at HCM City’s port for maintenance but the firm must replace its local dealer Euro Auto due to violations of the country’s regulations, said Prime Minister Nguyen Xuan Phuc at a conference with German businesses in Berlin on Thursday.

Phuc said the batch’s import tax was calculated much lower than its real value, while local bodies found several false documents during the import process.

The Government leader affirmed that these violations were not caused by the BMW Group in Germany but its agent in Viet Nam.

“The replacement of dealer is needed,” said Phuc.

“We will continue investigation and strictly punish the violators to protect the environment for other investors and ensure their rights and interests. I will direct the Customs Office to allow BMW to maintain the batch of autos worth 15 million euros.”

Regional Manager BMW in Southeast Asia Karsten Engel said the firm had not exported cars to Viet Nam for seven months and hoped that the 700 vehicles at the port would soon undergo maintenance.

Vietnamese authorities discovered many violations while examining the company’s imports in late 2016. The finance ministry sent a document to the General Department of Customs Vietnam to stop customs clearance for all BMW autos imported by Euro Auto Company, the BMW dealer in HCM City.

The company was found to have sold imported cars while the cars were awaiting customs clearance. It also failed to provide legal documents to prove the origin of many products, and allegedly used fake documents such as purchase contracts and receipts to import cars.

The CEO of Euro Auto company, Nguyen Dang Thao, was arrested for allegedly smuggling luxury cars into the country in April. He has been CEO of the firm since November 2015. — VNS