Feedback on classification of imported beverages

Black Garlic item.

It is known that, according to the proposal of Blue Consultant Trading Service Co., Ltd, this company did not accept the classification results of the General Department of Vietnam Customs for the products with the trade name "Black Garlic”, “Onion Premium”, “Sansuyoo Extract (enchantment water)”, are packed in 80ml, liquid tea form under customs declaration No. 10238060826/A11 dated 11/12/2018 at Saigon Port area 4 Customs Branch - Ho Chi Minh City Customs Department.

Responding to this proposal, the General Department of Vietnam Customs analyzed, in order to classify accurately an item, it needs to be based on Circular No.14/2015/TT-BTC dated 30/1/2015 of the Ministry of Finance guiding the classification of goods, analysis to classify goods, analysis for quality inspection, food safety inspection; The Circular No. 65/2017/TT-BTC dated 27/6/2017 of the Ministry of Finance promulgating the List of Vietnamese export and import goods.

Specifically, heading 20.09 "Fruit juices (including grape) and vegetable juices, unfermented and not containing added spirit, whether or not containing added sugar or other sweetening matter".

Heading 22.02 "Water, including mineral waters and aerated waters, containing added sugar or other sweetening matter or flavours, and other non-alcoholic beverages, not including fruit or vegetable juices of heading 20.09."

Refer to the Detailed Explanatory Notes HS Chapter 20, Heading 20.09: "However, if adding water to juice or vegetable juices, or adding water to the juice previously concentrated with a ratio greater than the initial ratio which is necessary to allow for producing the normal natural juice, it will be obtained a diluted product which will have the characteristics of a beverage in heading 22.02. Fruit juices and vegetable juices contains the ratio of carbon dioxide in excess of the normal rate contained in the juices treated with this substance (carbonated juice) and of course, lemon juice, carbonated water used to make fruit juices are eliminated (heading 22.02)."

In comparison with the above regulations, the General Department of Vietnam Customs said that the imported products have analysis results as "Liquid preparations, ingredients containing the rancid/black garlic extract, honey, raspberries/onions, water, non-alcoholic, non-carbonated, packaged in 80ml/pack, used directly, without dilution”, is the products containing vegetable or juice fruit but added with water, ready to drink immediately without dilution (whether or not added sugar or other sweetening matter or flavoring) should be classified in heading 22.02 instead of heading 20.09.

Specifically, heading 22.02 is " Water, including mineral waters and aerated waters, containing added sugar or other sweetening matter or flavoured, and other non-alcoholic beverages, not including fruit or vegetable juices of heading 20.09", subheading" - Other: ", subheading 2202.99" - - Other "code 2202.99.50" - - - Non-carbonated beverages used immediately without dilution ", preferential import tax rate of 30%.