Guiding enterprises facing difficulty about cargo classification

The activities of cargo classification to define HS code at Customs Branch of Good Verification No.6. Photo: H.Nụ

Thuan Anh Trading and Service Co., Ldt faced a problem defining HS code of imported goods.

According to the General Department of Vietnam Customs, at Article 26 of Customs Law, Article 24 of Decree 08/2015/NĐ-CP amended and supplemented at Clause 11, Article 1 of Decree 59/2018/NĐ-CP and Clause 3, Article 1 of Circular 39/2018/TT-BTC stipulated the classification of goods is aimed to define HS codes to make a basis for tax calculation and implementation of cargo management policies. The classification of goods must be based on customs dossiers, technical documents and other information related to import and export goods to determine the names and HS codes in accordance with List of Import and Export Goods of Vietnam.

In case the enterprise requested to determine the HS codes of goods intended to be imported, enterprise should only carry out procedures of pre-determination of HS codes according to Article 24 of Decree No. 08/2015/ND-CP amended in Clause 11, Article 1 of the Decree 59/2018/ND-CP. Organisations and individuals requesting pre-determination of HS code shall submit full dossiers of requesting for pre-determination of HS code, origins and customs valuation ​​to the General Department of Vietnam Customs within at least 60 days before importing or exporting goods; participate in dialogues with customs authorities to clarify contents of the application for pre-determination of HS codes, origin and customs valuation per the request of customs authorities; notifying by document to the General Department of Vietnam Customs within 10 working days of the date of any change related to the goods proposed for pre-determination of HS code, origin and customs valuation, stating clearly the content, reasons, day, month and year of change.

The application for pre-determination of HS code includes application for pre-determination of the HS code using the form No. 01/XĐTMS/TXNK in Appendix VI, issued together with Circular 39/2018/TT-BTC; technical documents proposed by organisations or individuals for pre-determination of HS codes; samples of goods to be imported or exported (if any).

Codupha Central Pharmaceutical Joint Stock Company asked about classification of the product named "ATOPSHIELD FORTE dermatitis”.

Regarding this issue, according to the General Department of Vietnam Customs, based on Decree 75/2017/ND-CP of the Government, the Ministry of Health is the agency that performs State management of health including fields of medical equipment; cosmeceuticals and food safety. The Ministry of Health is responsible for developing and submitting to the competent authority to publish the national standard of medical equipment. To promulgate professional regulations and national technical regulations on medical equipment; issue a list of essential equipment for medical units and facilities. In Decree 87/2017/ND-CP of the Government, the Ministry of Finance is an authority performing State management of finance, budget and customs.

In Article 16 of Decree No. 08/2015/ND-CP of the Government stipulating and implementing measures of the Customs Law regarding customs procedures, inspection, supervision and control of customs, provisions of cargo classification will be performed as following: “1. Classification of goods to determine their names and codes according to the list of import and export goods of Vietnam. 2. The classification of goods based on customs dossiers, technical documents and information about the composition, physical and chemical properties, features and functions of import and export goods. 3. Classification of goods to determine HS codes as a basis for tax calculation and the implementation of cargo management policies. 4. The Minister of Finance shall specify the classification of goods ".

Pursuant to the above provisions, the Ministry of Health is a specialised management agency in the field of medical equipment; the Ministry of Finance (the General Department of Vietnam Customs) performs State management in classifying and determining the HS codes for import and export goods.

Hai Phong Customs Department stated the unit received a reflection of enterprises facing problems on seaweed products.

Regarding this concern, according to the General Department of Vietnam Customs, the case of "fresh, frozen, chilled or dried seaweed, ground or not, not seasoned, used as human food" is in heading 12.12.

If the product is "fresh, frozen, chilled or dried seaweed, ground or not, marinated with spices (vegetable oil, salt, sugar ...) used as human food" or "seaweed roasted, spiced or not, used as human food" it is in the heading 20.08.

According to the General Department of Vietnam Customs, there are many different types of seaweed products depending on the manner of processing and manufacturing such as roasted, unroasted, dried, marinated or not marinated.

Therefore, for imported consignments registering a declaration before the issuance of official dispatch No. 6373/TCHQ-TXNK dated October 8, 2019, the General Department of Vietnam Customs suggested Hai Phong Customs Department base on regulations on post-clearance audit, carefully check import dossiers, technical documents, manufacturing processes and actual goods and compare with the instructions in the above dispatch for classification.

If there is not enough basis to revise the HS code at the time of importation, the adjustment of code will not be allowed.