Review and standardise HS codes of goods subject to specialised management

Customs officer of Hai Phong Customs Department checks imported and exported goods. Photo: N.Linh

According to Deputy Director of Customs Control and Supervision Nguyen Bac Hai, before changing policy and reforming specialized management and inspection, it is vital to review and standardize the lists of goods subject to specialized management in line with the new list of import and export commodities of Vietnam.

From that, the ministries and sectors will take the basis of promulgating documents stipulating the list. It is also a basis from which update customs electronic data in order to ensure goods classification of imports and exports in building and operating a smart customs system.

For example, in order to implement the Protocol of ASEAN countries and the HS Convention, Vietnam and ASEAN countries have developed the ASEAN Harmonized Tariff Nomenclature AHTN version 2022, fully complying with the HS List version 2022 of the World Customs Organization (WCO) at the 4 and 6-digit levels (amended and supplemented with a five-year term). Accordingly, the AHTN is revised and updated following the detailed HS List at an 8-digit level every five years.

On the basis of the AHTN 2022, approved by the Government in Resolution No. 29/NQ-CP dated March 8, 2022 of the Government, the Ministry of Finance issued Circular No. 31/2022/TT-BTC dated 8 June 2022, stipulating the list of import and export commodities of Vietnam, replacing Circular No. 65/2017/TT-BTC dated June 27, 2017 and Circular No. 09/2019/TT-BTC dated February 15, 2019 of the Ministry of Finance, which is effective from December 1, 2022.

To review and standardize the List, the Ministry of Finance organized a working session to focus on standardizing the list of goods subject to specialized management and inspection attached with HS codes, in line with the list of import and export commodities of Vietnam following the AHTN version 2022.

The working session was participation by representatives of the Ministries of Health; Science and Technology; Information and Communication; Culture, Sports and Tourism; National Defense; Agriculture and Rural Development.

Accordingly, on the basis of the lists of goods subject to specialized management of ministries that have been issued, the Ministry of Finance coordinated with representatives of the six other ministries and actively helped to convert HS codes of goods on the list of specialized management of 14 ministries, in line with the list of import and export commodities of Vietnam which is recently promulgated under the Circular No. 31/2022/TT-BTC dated June 8, 2022 of the Ministry of Finance.

As a result, many legal documents promulgating the list of goods subject to specialized management and inspection have completed a preliminary review, such as 1639 product lines in Appendix I HS code table; or lists of goods under the management of the Government Committee on Cipher, Ministry of Public Security, Ministry of Science and Technology; State bank; Ministry of Culture, Sports and Tourism; Ministry of Construction; Ministry of Natural Resources and Environment; Ministry of Industry and Trade; Ministry of Labour, and Invalids and Social Affairs.

In addition, a number of specialized management documents that have huge product lines and a complex nature have been reviewed by the Ministry of Finance and transferred to the ministries.

For example, the Ministry of Health has a list of goods subject to specialized management that has a huge number of product lines and does not have enough information on the composition, structure, physical and chemical properties, uses, packaging specifications and other attributes of the goods.

Besides that, many goods subject to specialized management do not have HS codes. For example, endangered, precious and rare forest plants and animals; wild animals and plants in the CITES Appendix; sporting weapons; supporting tools; hazardous waste or there is no detailed list of HS codes of firecrackers.

To ensure the consistency between the list of goods subject to specialized management and the list of import and export commodities of Vietnam 2022, the Ministry of Finance has requested the ministries to consult the review results, based on Circular No. 31/2022/TT - BTC urgently reviewing and converting HS codes of lists of goods subject to specialized management in line with the List of import and export commodities of Vietnam promulgated under Circular No. 31/2022/TT-BTC. From that, promulgating a Circular regulating the list of import and export commodities of Vietnam.

At the same time, the Ministry of Finance also suggested that ministries and branches continue to coordinate to determine or convert HS codes for cases where HS codes are not unified or there is not enough information on the composition, structure, physical and chemical characteristics, utility, packing and other attributes of the goods. Or the case of without HS codes for determining HS codes following the List of import and export commodities of Vietnam 2022. To ensure the effectiveness of the implementation of lists of goods subject to specialized management from December 1, 2022.