A commodity still can be classified into different codes

VCN - According to the assessment of the provincial and municipal Customs Departments on rules for the imposition of tariff schedules and duty rates in Article 10 of the Law on Import and Export Duties 2016 has created transparency, facilitated taxpayer and promoted administrative reform, simplified the tariff schedule and reduced tax rate. However, currently, some commodities can be classified into different codes with different tax rates, leading to different management policies.
a commodity still can be classified into different codes “Jacker Potato Chips” taxed 20% import duty
a commodity still can be classified into different codes 2 smuggling cases used the same Customs code
a commodity still can be classified into different codes Predetermine HS code: Some enterprises have records returned
a commodity still can be classified into different codes
Operational activity at Thai Nguyen Customs Branch, Bac Ninh Customs Department. Photo: Th.Tr

General assessment of the provincial and municipal Customs Departments on the rules for imposition of tariff schedules and duty rates in the Law on Export and Import Duties 2016 has contributed to developing and protecting reasonably domestic production, promoting administrative reform, simplifying tariff schedules, reducing duty rates to ensure simplicity, facilitate administrative procedure reform, comply with economic development policies and focus on development of high technologies and source technologies, save energy and protect environment.

The rules for the imposition of tariff schedules and duty rates comply with integration commitments and socioeconomic development orientations of the State, contribute promoting administrative reform, orienting and stabilizing the market, increasing State revenues on the basis of simplicity and transparency, facilitating taxpayers and implementing tax administrative reforms. Especially, in Clause 5, Article 10 of the Law on Export and Import Duties stipulates that the uniform imposition of duty rates for goods of same uses or technical features, import duties are regressive from finished products to raw materials, export duties are progressive from finished products to raw materials, which contribute to developing and promoting production, localization and environmental protection in accordance with the economic development policies of the Party and the State.

However, according to representatives of Da Nang Customs Department, in the Export and Import Tariff Schedules, some commodities with preferential import duty rates are inconsistent with the rules for imposition of tariff schedules and duty rates in Article 10 of the Law on Export and Import Duties 2016 such as the medical gauze imported from Danameco Medical Joint Stock Corporation, Memco Material Medical and Equipment Joint Stock Company, import duty rate of raw materials is higher than the finished products .

According to representative of Quang Ninh Customs Department, regarding the rules for the uniform imposition of duty rates for goods of same nature, composition, uses or technical features, Import duties are regressive from finished products to raw materials and export duties are progressive from finished products to raw materials, which facilitate and specify for Customs agencies and enterprises in applying code of goods. However, in the Export and Import tariff schedule, some commodities are still classified into different codes with different duty rates, leading to different management policies.

The representative of Quang Ninh Customs Department gave the example: Corn is classified for popcorn with HS code 10059010, preferential import duty of 30%, meanwhile "other” type with HS code 10059090, preferential import duty rate only of 5%; Plasters used in dentistry, with HS code of 25202010, preferential import duty rate of 0%, while the "other" type of HS code of 25202090 preferential import duty rate of 3%.

In addition, the Beam lamp units in chapter 85 and 94 of the Export and Import Tariff Schedule, in chapter 85, the Sealed beam lamp units used for motor vehicles with HS code 85391010, preferential import duty rate of 20%. Meanwhile, “other” type with HS code 85391090 with preferential import duty rate only of 0%. In chapter 94, the Searchlights are classified with HS code 94054020 with a preferential import duty rate of 25%.

According to Quang Ninh Customs Department, the difference of Import duty rates will lead to the situation that enterprises can declare false purpose to enjoy low duty rates, causing difficulties for Customs agencies to inspect, supervise and classify for goods.

Giving one of the inadequate regulations for commodity subject to or not subject to plant quarantine, the representative of Quang Ninh Customs Department said, the Smoking tobacco, whether or not containing tobacco substitutes in any proportion and Water pipe tobacco specified in Subheading Note 1 to this Chapter with HS code 24031100 is not subject to plant quarantine under Decision 2515/QD-BNN-BVTV dated June 29th, 2015. However, the other manufactured tobacco for the manufacture of cigarettes with HS code 24031920 is subject to plant quarantine under Decision.

The representative said that for this commodity, enterprises can declare false purpose to classify them into code not subject to plant quarantine, causing difficulties for Customs agencies to classify goods and inspect commodity policies.

In the process of applying the current Export and Import tariff schedules, as reflected by local Customs units, commodities are very easy to misunderstand in the classification, because the criteria to classify code and duty rate is based on use purpose of goods, so it is difficult to determine code when enterprises import goods. Hence, these commodities need to be applied the similar duty rate level.

a commodity still can be classified into different codes Change about 28.3% of samples compared to the declaration after Customs auditing

VCN – According to General Department of Customs, to 15 November 2016, the working of analysis and ...

Giving some obstacles in the Department, the representative of Hai Phong Customs Department said that, the imported furniture is imposed different duty rates but classified in accordance with use purpose: metal furniture used for office HS code 9403.10.00, import duty rate of 20%; other HS code 9403.20.90, import duty rate of 10%; wooden furniture used for office, HS code 9403.30.00, import duty rate of 20%. The determination of proportion, weight, and value to verify the main material is very difficult to Customs agencies and enterprises. Therefore, these commodities need to be applied the similar duty rate level.

Regarding this content, the representative of Binh Duong Customs Department analyzed that currently, in the tariff schedule, the chips and sticks with HS code 2005.20.91 are subject to a duty rate of 18% and potato slices with HS code 2005.20.11 are subject to a duty rate of 20%. However, enterprises regularly declare as the chips and sticks but in fact, potato slices cake is made from potatoes with higher duty rate. Hence, these commodities need to be applied the similar duty rate level.

HCMC Customs proposed to amend the duty rate for Nonwovens, whether or not impregnated, coated, covered or laminated of heading 56.03, the current tariff schedule classify them into two subheadings according to material of fabric but the duty rates of two sub-heading is very different (0% with C/O form E for fabrics of man-made filaments and 20% for others) so enterprises take advantage of this to declare fabric into the subheading with lower duty rate to evade duty.

By Thu Trang/Ngoc Loan

Related News

Quang Tri Customs makes great effort to foster imports and exports across area

Quang Tri Customs makes great effort to foster imports and exports across area

VCN – Quang Tri Customs Department determines that accompanying businesses is a requirement and responsibility to support businesses in overcoming difficulties, contributing to the socio-economic development in the area.
Removing difficulties in tax exemption and refund policies for export processing enterprises

Removing difficulties in tax exemption and refund policies for export processing enterprises

VCN - The Customs agency has received many proposals from businesses about answering and guiding policies on tax exemption, import tax and VAT refund for export processing enterprises. The General Department of Customs has responded and provided instructions for each specific case.

Latest News

Can Tho City Customs Department’s revenue increases by 85%

Can Tho City Customs Department’s revenue increases by 85%

VCN – The revenue from items such as coal, machinery and equipment, electronic products and imported components increase, improving the revenue of Can Tho Customs Department.
Off – Airport Cargo Terminal facilitates import and export enterprises

Off – Airport Cargo Terminal facilitates import and export enterprises

VCN - The method of importing and exporting goods through Off – Airport Cargo Terminal will help businesses to save time and costs of transporting goods to the airport, reduce time of carrying out customs procedures, and increase the speed of international goods transportation…
Director of HCM City Customs Department Dinh Ngoc Thang is appointed Deputy Director General of Vietnam Customs

Director of HCM City Customs Department Dinh Ngoc Thang is appointed Deputy Director General of Vietnam Customs

VCN - On March 27, 2024, at the headquarters of General Department of Vietnam Customs, the Ministry of Finance held a conference to announce the Decision to appoint Mr. Dinh Ngoc Thang, Director of HCM City Customs Department to the position of Deputy Director General of Vietnam Customs. Deputy Minister of Finance Nguyen Duc Chi chaired the conference.
Propose to extend customs clearance time across La Lay International Border Gate

Propose to extend customs clearance time across La Lay International Border Gate

VCN - The People's Committee of Quang Tri province has sent an official dispatch to the Government Committee of Salavan province (Laos) on changing working hours at the pair of international border gates of La Lay (Dakrong district) and La Lay (Salavan province).

More News

Imported goods increased, customs clearance was slow at Huu Nghi international border gate

Imported goods increased, customs clearance was slow at Huu Nghi international border gate

VCN - Information from border gates in Lang Son province, in recent days, the number of imported goods and vehicles entering Vietnam through Huu Nghi international border gate has increased, leading to slow customs clearance activities.
Pilot customs clearance for passengers using passports and entry and exit permits across Bac Luan II Bridge

Pilot customs clearance for passengers using passports and entry and exit permits across Bac Luan II Bridge

VCN – Mong Cai City People’s Committee has just piloted customs clearance for passengers using passports and entry and exit permits across Mong Cai International Border Gate in Bac Luan II Bridge on Saturday and Sunday.
Hai Phong and Quang Ninh Customs Departments promote cooperation

Hai Phong and Quang Ninh Customs Departments promote cooperation

VCN – The cooperation between Hai Phong and Quang Ninh Customs Departments has achieved many practical and effective results.
HCM City: Export production and processing enterprises drop sharply

HCM City: Export production and processing enterprises drop sharply

VCN - The number of processing and export production enterprises completing procedures at the Processing Customs Branch - HCM City Customs Department in 2023 decreased by more than 31% compared to 2022. It is only about 1,200 enterprises.
Lang Son Customs faces difficulties in tax debt recovery

Lang Son Customs faces difficulties in tax debt recovery

VCN - Recently, Lang Son Customs Department has implemented many tax debt enforcement measures to reduce tax debt to the lowest level. However, the results have not met expectations. Customs branches at border gates in the province are currently facing difficulty in collecting tax debt.
Bac Ninh Customs held a dialogue with over 200 import and export business

Bac Ninh Customs held a dialogue with over 200 import and export business

VCN - On March 21, Bac Ninh Customs Department held a dialogue of Customs-Business in 2024 with the participation of more than 500 representatives of over 200 enterprises operating imports and exports in Bac Ninh, Bac Giang and Thai Nguyen province.
Customs finalization report is the stage to decide whether business eligible for  tax exemption or not

Customs finalization report is the stage to decide whether business eligible for tax exemption or not

VCN - Customs finalization report is the final step to decide whether the business is eligible for tax exemption or not. To do this, the business is required to implement effective internal management methods, and has transparent accounting systems and management software...
250 import-export businesses dialogue with Hai Phong City People

250 import-export businesses dialogue with Hai Phong City People's Committee

VCN - On March 20, Hai Phong City People's Committee organized a dialogue conference with import-export businesses in 2024 with the theme "Cooperation - Development - Efficiency". Participating in the Conference were representatives of 250 typical import-export enterprises carrying out procedures through the area.
Vietnam Customs plays important role in ASEAN Customs community

Vietnam Customs plays important role in ASEAN Customs community

VCN – In addition to the integration trend, Vietnam Customs’ international cooperation and integration has been deeper and more substantive, contributing to promoting the customs reform and modernization. Vietnam Customs is always an active member in implementing regional customs cooperation initiatives and programs.
Read More

Your care

Latest Most read
Can Tho City Customs Department’s revenue increases by 85%

Can Tho City Customs Department’s revenue increases by 85%

VCN - According to report of Can Tho Customs Department, as of March 15, the department processed 26,000 declarations of imports and exports, up about 12%. The import and export turnover rose 17% year-on-year to US$ 1.1 billion.
Off – Airport Cargo Terminal facilitates import and export enterprises

Off – Airport Cargo Terminal facilitates import and export enterprises

The method of importing and exporting goods through Off – Airport Cargo Terminal will help businesses to save time and costs of transporting goods to the airport and increase the speed of international goods transportation…
Quang Tri Customs makes great effort to foster imports and exports across area

Quang Tri Customs makes great effort to foster imports and exports across area

VCN - Statistics from the Quang Tri Customs Department show that import-export, immigration, and transit activities in the area in the first quarter of 2024 soar.
Director of HCM City Customs Department Dinh Ngoc Thang is appointed Deputy Director General of Vietnam Customs

Director of HCM City Customs Department Dinh Ngoc Thang is appointed Deputy Director General of Vietnam Customs

The Ministry of Finance held a conference to announce the Decision to appoint Mr. Dinh Ngoc Thang to the position of Deputy Director General of Vietnam Customs
Propose to extend customs clearance time across La Lay International Border Gate

Propose to extend customs clearance time across La Lay International Border Gate

VCN - Special cases will be processed procedures across the border gate pair anytime and anywhere. Currently, the working hours at the border gate pair is until 7:00 p.m.
Mobile Version