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Operational activity at Yen Binh Customs Branch, Bac Ninh Customs Department Photo: T.T

According to the representative of the Import-Export Duty Department, many commodity lines will be added in detail or replaced to update the changes in technology and facilitate international trade, implement the international treaties and conventions on environmental protection and toxic chemicals management that need to be controlled.

According to the representative of the Import-Export Duty Department which is in charge of building the draft, the draft list of Vietnam’s exports and imports includes 21 sections, 97 chapters, 1,039 headings at the 4-digit level and 1,859 sub-headings at the 6-digit level and are divided into 10,813 commodity lines at 8-digit level, which completely abide by the HS code 2017 of WCO and AHTN 2017 of ASEAN. The new draft list increased by 1,255 commodity lines compared to the List of Vietnam’s Imports and Exports which was issued in accordance with Circular No. 103/2015 / TT-BTC dated July 1st, 2015 (the current list).

In 10,813 commodity lines at the 8-digit level in the draft list, 2,321 commodity lines have new description compared to the List issued together with Circular 103/2015/TT-BTC due to code division, transfer of code or addition of commodity lines to describe in detail the categories or update the changes in technology, commercial characteristics, and environmental standards in accordance with the actual situation.

In order to build this draft list, the Steering Committee and the Executive Team have coordinated with ministries, sectors, associations, and units inside and outside the Ministry of Finance to research and review for the transformation of the language of 2,321 new commodity lines into Vietnamese in line with the specialized terminology. Some commodity lines are supplemented notes at the end of chapters such as Vietnamese standards and criteria, comments of ministries and sectors and Supplementary Explanatory Notes (SEN) to refer for goods classification and application of the list. The changes compared to the list in Circular 103/2015/TT-BTC focus on a number of categories including motor cars, fishery products, wood, chemicals, ceramic products, machinery, and equipment.

For the motor cars

The motor car is one of the commodity lines with significant changes in the draft list. The World Customs Organization has restructured the details of the motor cars, in particular, those of headings 87.02 and 87.03 to meet international technological and trade development. Accordingly, in the past, the motor cars only specifies petroleum engine and gasoline engine and others. However, currently, the automotive industry has developed many new types which are diversified into design and functions and toward environmental protection.

For the heading 87.02 for motor cars for the transport of ten or more, in the past, this heading only specified in detail for 2 types of petroleum engineering and the other. Currently, this heading has been specified into 5 types such as: petroleum engine, petroleum and electric engine, gasoline and electric engine, electric engine and the other.

For the heading 87.03 for motor cars for the transport of ten or less and others which are designed for the transport of people. In the past, the heading specified into 3 sub-headings including petroleum engine, gasoline engine and the other. According to the new list, heading 8703 is classified into 8 sub-headings, including (i) gasoline engine, (ii) petroleum engine, (iii) gasoline and electric engine without electric input, (iv) petroleum and electric engine without electric input, (v) gasoline and electric engine with electric input, (vii) electric engine and (viii) the other.

In addition, currently, some new automobile lines with high international trade turnover have been specified in the draft list such as All-Terrain Vehicles (ATVs), Sedan cars. The further detail aims to accurately reflect the technological developments of the automotive industry and the consumption trends and the level of trading of a number of new automobile lines, and facilitate international trade in this field.

For the Fishery products

According to the proposal of FAO, in order to enhance global food safety control, a number of fishery commodities are amended and supplemented scientific names and fishery by-products will be integrated into a sub-heading for easy control (sub-heading 0320.9x and 0303.09x) and added the detailed name of some fish species into sub-headings. In addition, some fish species with a high turnover but have not been yet specified in the current list, now have been added to the new draft list. Most of these new commodity lines are illustrated in detail in the SEN and have the scientific name to avoid confusion in classification. These changes are aimed at facilitating food safety inspections and control as well as management policies and safeguard of domestic production. The fishery by-products are integrated to facilitate businesses in the process of customs declaration and clearance procedures...

For the insecticides, fungicides and herbicides

For the implementation of the Rotterdam Convention on Prior Informed Consent Procedures for hazardous chemicals and plant protection chemicals in International Trade, the legal note of heading 1 for subheading 3808.50 (in the List issued together with Circular No.103/2015/ TT-BTC) has been supplemented some the chemical names which must be controlled such as of alarchlor, aldicarb.

For the Wood

In the legal note of subheading 2 in Chapter 44 of the List issued together with Circular No. 103/2015/TT-BTC, the expression of “tropical wood” specifies some tropical wood types. However, according to proposal of the Food and Agriculture Organization of the United Nations (FAO), the the expression of “tropical wood” was deleted in the 2017 edition. Therefore, the expression of “tropical wood” is expanded and covers not only some specific types as the 2012 edition but also some tropical wood types and wood size is further detailed in the list of 2017 edition to reflect a high global trade turnover.

For the Rubber and articles

For the rubber and articles is basically unchanged, the draft list specifies 207 commodity lines of the rubber and articles, in which, 175 commodity lines are not changed compared to the current list, 12 scommodity lines are integrated, and 20 commodity lines are separated. The heading 40.11 (new pneumatic tyres of rubber) is one of the headings to be changed. Previously, tyres had a “herring-bone” or similar tread and others, but now they have been restructured in accordance with use purposes.

For the Textile garments

224 new commodity lines are specified to update some textile and garment products which have new characteristics or ensure classification and management policies of some ASEAN countries in detail and facilitate international trade.

For the ceramic products

In List 103/2015/TT-BTC, the ceramic products are listed in headings 69.07 and 69.08. To update the changes of the Ceramic industry, in 2017 edition, headings 69.07 and 69.08 are integrated into a heading 69.07 which does not distinguish unglazed or glazed types, and re-adjust according to the criteria of size and permeability of the products. In addition, heading 69.07 is added new items such as "finishing ceramics” in line with the reality.