Procedures for pre-determination of import and export commodity codes

Determining in advance import and export commodity codes makes it easier for businesses to apply the correct HS code, thereby enjoying the correct preferential tax rates and avoiding errors in customs declaration. This procedure helps minimize risks related to customs clearance delays, saving costs and time for businesses. The following article will analyze in detail the procedures for pre-determination of commodity codes, necessary documents and implementation process at the Customs office.

Why is it necessary to carry out procedures to pre-determine import and export commodity codes?

Determining import and export commodity codes in advance is an important step in the customs process. This process helps businesses apply the correct tax schedule and comply with legal regulations.

According to Article 24 of Decree 08/2015/ND-CP amended by Clause 11, Article 1 of Decree 59/2018/ND-CP, enterprises have the right to request customs authorities to pre-determine the codes of goods expected to be imported and exported. Especially for goods imported and exported for the first time or with large changes in value, goods that are single or not popular.

Pre-determining codes helps businesses:

• Correct application of import tax rates;
• Prepare full import and export documents;
• Avoid legal risks when clearing customs;
• Optimize costs and time for customs procedures;

Customs authorities will base on legal regulations and information provided by businesses to determine the code. The pre-determined results have legal value as a basis for customs declaration. This process helps make the classification of goods transparent, facilitating import and export activities.

The competent authority receiving the application shall pre-determine the commodity code

The General Department of Customs is the competent agency to receive dossiers for pre-determination of import and export commodity codes. This regulation is clearly stated in Clause 3, Article 24 of Decree 08/2015/ND-CP amended by Clause 11, Article 1 of Decree 59/2018/ND-CP.

According to regulations, businesses submit documents to request pre-determination of commodity codes at the General Department of Customs. Within 05 working days from the date of receipt of the application, the General Department of Customs will review and respond.

The General Department of Customs has the authority to:

• Receive applications for pre-determination of codes;
• Request additional information and documents (if necessary);
• Issue a written notification of predetermined results;
• Refuse pre-determination in case of ineligibility.

Enterprises need to pay attention to submitting documents to the correct competent authority to ensure the legality of the results of pre-determination of commodity codes.

Documents and procedures for pre-determination of import and export commodity codes

Documents pre-determining commodity codes

Documents for pre-determination of import and export commodity codes are specified in Clause 3, Article 1 of Circular 39/2018/TT-BTC. Enterprises need to prepare a set of documents including the following components:

• Application for pre-determination of codes according to form No. 01/XĐTMS/TXNK Appendix VI issued with this Circular;
• Technical documents provided by organizations or individuals requesting pre-determination of commodity codes (component analysis, catalog, goods images): 01 photocopy;
• Sample of goods expected to be exported or imported (if any).

Complete and accurate records will help the process of pre-determining codes take place quickly, avoiding the need to supplement and slow down progress. Enterprises need to pay special attention to providing detailed and accurate information about goods to ensure appropriate determination results.

Predetermined sequence of product codes

The process of pre-determining import and export commodity codes includes the following steps:

Step 1: Submit application:

Enterprises submit documents requesting pre-determination of codes at the General Department of Customs. The dossier includes the application and accompanying documents about the goods expected to be imported and exported.

Step 2: Receive and process documents:

The General Department of Customs receives and checks the completeness and validity of the dossier. If the application does not meet the conditions, the General Department will issue a written refusal within 05 working days.

Step 3: Review and determine the code:

In case the dossier meets the conditions, the customs authority studies the dossier and compares it with regulations on goods classification to determine the appropriate code. The determination time limit is 30 days (normal cases) or 60 days (complicated cases) from the date of receipt of complete and valid documents.

Step 4: Announce results:

The Director General of the General Department of Customs issues a document notifying the results of pre-determination of commodity codes for businesses. This document has legal value for businesses to use when making customs declarations.

Enterprises need to pay attention to following the correct process and prepare complete documents so that the process of pre-determining the code goes smoothly, ensuring the accuracy of the results.

Consulting services on procedures for pre-determination of import and export commodity codes at Long Phan

Long Phan provides professional consulting services on procedures for pre-determining import and export commodity codes. Long Phan’s services include:

• Consulting on processes and documents to pre-determine codes;
• Support in drafting and preparing complete and accurate documents;
• Business representatives work with customs authorities;
• Analyze and explain code determination results;

With extensive experience, Long Phan is committed to supporting businesses in implementing procedures for pre-determining commodity codes, complying with legal regulations, and optimizing import and export costs.

Determining import and export commodity codes in advance is an important procedure, helping businesses comply with customs regulations and optimize costs. For professional support regarding this procedure, please contact Long Phan via hotline 0906735386. We are committed to providing high quality consulting services, supporting businesses in accurately determining product codes, ensuring legal compliance in import and export activities.