Question:
We are a 100% foreign-owned export company. During our operations, we have a question and seek Customs’ assistance as follows: Our company’s business sector/objective of the project is “Manufacturing spare parts and accessories for motor vehicles and engine parts; details: manufacturing, processing, assembling automotive components and other components, excluding electroplating processes.” Specifically, we produce “Plastic cable protection products for automobiles.” So, what HS code should we apply for this product when making a customs declaration?
Answer:
– Based on Article 26 of Customs Law No. 54/2014/QH13 dated June 23, 2014, it is stated: “The classification of goods must be based on customs documents, technical documents and other information related to imported and exported goods for identification of goods’ names and HS codes according to the list of Vietnamese imports and exports.“
– According to Article 2 of Decree No. 08/2015/NĐ-CP dated January 21, 2015, issued by the Government: “The classification of goods shall be based on customs documents, technical documents, and information on the composition, physical and chemical properties, functional characteristics, and uses of export and import goods.“
– According to Circular No. 14/2015/TT-BTC dated January 30, 2015, issued by the Ministry of Finance, which provides guidance on goods classification, quality inspection, and food safety inspection for export and import goods.
– According to Circular No. 65/2017/TT-BTC dated June 27, 2017, issued by the Ministry of Finance, which includes the Vietnamese list of export and import goods; and Circular No. 09/2019/TT-BTC dated February 15, 2019, amending and supplementing certain contents in the appendices of Circular No. 65/2017/TT-BTC dated June 27, 2017, which provides the Vietnamese list of export and import goods.
– Based on the content of group 87.08: “Parts and accessories of motor vehicles of headings 87.01 to 87.05.”
– Referring to the detailed explanatory notes for HS 2017 group 87.08: “This group comprises all parts and accessories suitable for use solely or principally with the machines of headings 87.01 to 87.05, provided that they are not excluded by the provisions of the Notes to Section XV…“
– Based on Explanatory Note 2 of Section XVII: “The terms ‘part’ and ‘parts and accessories’ do not apply to the following products, whether or not they are identifiable as for the goods of this Section:
…(b) Parts suitable for use solely or principally with the goods of Section XV, made of base metal (Section XV), or similar goods of plastics (Chapter 39)…“
– Based on the content of group 39.26: “Other articles of plastics and articles of other materials of headings 39.01 to 39.14.“
– Referring to the detailed explanatory notes for HS 2017 group 39.26: “This group comprises articles, not elsewhere specified or included, of plastics (as defined in Note 1 to this Chapter) or of other materials of headings 39.01 to 39.14… This group includes:…(2) Accessories for fitting to the interiors, bodies (including cabs) of vehicles and the like…“
– Since the company’s information provided is not complete, the Customs authorities cannot provide an exact HS code. We suggest that your company relies on the guidance on goods classification mentioned above, the actual imported goods, and customs documents and related information to determine the appropriate code. If necessary, your company should directly contact the Customs authorities where the customs procedures are conducted for specific guidance.
Instructions for advance determination of the HS code:
– To facilitate customs procedures, your company can perform the procedure for advance determination of the code as follows:
– The procedures and conditions for advance determination of the code are stipulated in Article 23 and Article 24 of Decree No. 08/2015/NĐ-CP dated January 21, 2015, issued by the Government. Paragraph 11, Article 1 of Decree No. 59/2018/NĐ-CP dated April 20, 2018, issued by the Government regarding the amendment and supplementation of certain articles of Decree No. 08/2015/NĐ-CP dated January 21, 2015, by the Government.
– According to these regulations, if your company needs to determine the HS code in advance for export goods, you should submit the documents to the General Department of Customs (at the address: No. 9, Dương Đình Nghệ Street, Cầu Giấy District, Hanoi) for the proper resolution.
– The procedures for advance determination of the code should be carried out following the provisions of Section 3, Article 1 of Circular No. 39/2018/TT-BTC dated April 20, 2018, issued by the Ministry of Finance, regarding the amendment and supplementation of certain articles of Circular No. 38/2015/TT-BTC dated March 25, 2015, by the Minister of Finance.
