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The role of the customs management has been improved through the classification of goods

11:57 | 11/09/2017

VCN- Improving the management efficiency for a declaration of the goods codes is one of the measures that the Customs has implemented over the long term to prevent and combat tax losses through the declaration of the goods classification. Not only that, this also helps to create the favorable conditions for the competitive environment in the domestic and international markets of the Vietnamese enterprises.

the role of the customs management has been improved through the classification of goods
The professional operation at the Thai Nguyen Customs Branch, the Bac Ninh Customs Department. Photo: T.Trang

Classification of the export and import goods is based on the name, description about the nature, composition, utility, packing specifications and other attributes of the goods to determine and classify the goods in a certain code under the Harmonized Commodity Description and Coding System, the list of Vietnamese export goods, import goods and other relevant provisions. This is a very important stage in the import-export activities of enterprises and the customs management.

In fact, Vietnam has joined the HS Convention since 1998 and entered into force on 1st January 2000. Over implementation time, the classification of goods under the HS for the export-import goods has substantially changed.

It is very necessary to identify the importance of improving, enhancing the efficiency of the goods classification to collect exactly and fully, simply, implement collection easily, enhance the reputation of the Customs in the business community. Therefore, the Customs has internalized step by step the classification rules of World Customs, at the same time, also standardized the classification according to international regulations.

That is, the Vietnam Customs has applied the Harmonized Commodity Description Convention (HS) of the World Customs Organization (HS) in place of the introduction of the SEV import and export list in the early years of the 1990s. In addition, the Vietnam Customs assigned the representatives to participate in building, negotiating and implementing the ASEAN Harmonized Tariff Nomenclature (AHTN) to implement the Protocol on the implementation of the AHTN, set up the list of the Vietnamese export-import goods under the international standards.

In fact, in the process of the State management on the Customs, the situation of the enterprises that declare wrong codes of the goods for lower tariffs is a common form of fraud. Especially, in the context of the developing economy, there are diverse types of goods, the appearance of multi-functional and multi-use items. Therefore, the classification of the Customs has met a lot of difficulties, because the perception of the commodity nature has different opinions and the staff of the Customs doing the classification of goods is limited.

However, with the goal of building and perfecting the system of policies on classification of goods, in order to have a complete system of legal documents, the Customs sector has built, collected, updated the high reliable database on classification of goods, integration with other databases of the Customs, serving effectively management of risks and e-customs procedures; Strengthening the organizational structure and strengthening the capacity of officials and employees engaged in classification of goods professionally, intensively, focused and united at three levels the General Department – the Customs Departments of provinces, inter-provinces and cities – the Customs Branches… That contributes to collect the State budget correctly and fully, overcome the inconsistent situation of classification of goods, reduce and minimize collection arrears, complaints, litigation, disputes in the classification of goods, determination of tariffs.

According to Director of the Export and Import Tax Department (the General Department of Customs) Mr. Luu Manh Tuong, the Customs classification process has unified the different opinions on the classification of goods among units prior to the issuance of the notice of classification results of goods. At the same time, the MHs software system that keeps the results of classification analysis in all Customs were formed. This has helped the enterprises to look up the classification results of goods easily and also made them more convenient to apply to the classification of their own products because the announcements of classification result were launched on the Customs website by the General Department of Customs

Along with that, the regulations on pre-determination of goods codes and origin of goods are implemented by the General Department of Customs to help the enterprises to calculate the business efficiency, reduce compliance costs actively, and help the Customs to increase the management efficiency. Most of the submitted documents are processed within 30 days by the Department of Import-Export Tax, the complicated cases are also handled within 60 days.

The implementation of pre-determined commodity codes is beneficial for both the Customs and the enterprises. That is, the Customs improves productivity and efficiency due to speeding up the clearance of goods, allocating resources suitable previous, during, and after the customs clearance. The enterprises will base on the information provided previously that is considered legal to research the market, plan business and calculate profit. This increases the certainty and expected forecast for the enterprises when participating in international trade transactions.

In particular, issuing Vietnam's List of Import and Export Goods (attached to Circular 65/2017/TT-BTC) under AHTN 2017, the MFN tariff and FTA tariffs, specialized management List under AHTN 2017 by the Ministry of Finance ensured to synchronize and integrate, to support the classification of goods conveniently and accurately. Along with that, the list of risk management on classification was developed and implemented by the General Department of Customs in the whole sector, including 380 items with 8-digit level and 7 groups of goods with 6-digit level of the import and export goods updated and changed regularly..., they are the important documents, a management tool in the Customs classification of goods in the customs clearance and post-clearance. These are also important legal documents that help the Customs to perfect the policy system on the classification of goods.

Only in the classification of goods, in 2016, the General Department of Customs issued more than 4,620 the result notice of classification of goods, processing nearly 260 applications for identification of the commodity codes. The situation of disputes between the Customs and the enterprises relating to commodity codes and preferential tariffs decreased significantly. In 2016, there were only four complaints focused on complex, confusing items. The results of additional tax declaration or tax assessment in classification of goods were over 87.2 billion VND and the enterprises paid over 57.5 billion VND into the State budget.

In the first 6 months of 2017, the General Department of Customs issued more than 745 result notices of goods classification and processed 108 applications for pre-determination of commodity codes at the request of the organizations and the individuals.

By Thu Trang / Binh Min