Pre-determination of hs codes, origin, and customs value

In the process of importing and exporting goods, the accurate classification of HS codes (Harmonized System), determination of the origin of goods, and customs value are critically important for businesses. Errors in HS code classification, origin determination, or customs value may lead to miscalculations, incorrect declarations and underpayment of taxes. Consequently, enterprises may be subject to administrative penalties, back taxes, and late payment interest. If such inaccuracies persist over multiple years, the resulting losses to the business could be significant. 

To mitigate these risks, Vietnamese customs law allows enterprises to request a pre-determination of HS codes, origin, and customs value from the customs authorities prior to conducting import or export activities. This procedure is also referred to as the customs consultation procedure. 

See more: Resolution of disputes regarding HS codes

This article will clarify the customs consultation procedure under Vietnamese law, outline the process for implementation, and highlight key considerations for businesses. 

1. Cases Where Enterprises May Request Customs Consultation 

Enterprises may request customs consultation in the following cases: 

• Classification of HS codes: When an enterprise is uncertain about the HS code classification of its goods and seeks clarification from the customs authorities to ensure accurate classification and avoid errors in customs declarations. 

• Determination of customs value: When an enterprise needs to clarify issues related to the customs value of goods, including the identification of costs that may be included in the customs value. 

• Determination of origin of goods: When an enterprise needs to clarify the origin of goods to determine eligibility for preferential tariff treatments under bilateral or multilateral trade agreements with the country of origin. 

2. Procedures for Customs Consultation 

Step 1: Preparation and Submission of the Consultation Request 

Enterprises must prepare and submit a complete dossier and relevant information concerning the goods subject to consultation, including: 

• A request form for pre-determination, using the prescribed template; 

• Supporting documents related to the consultation request: 

• Consultation on Origin: A list of materials used in the production of goods, including details such as product name, HS code, origin of constituent materials, CIF value or equivalent value of the materials provided by the manufacturer or exporter; a preliminary description of the production process or a Certificate of Composition Analysis issued by the manufacturer; catalogues or photographs of the goods. 

• Consultation on Customs Value: The sales contract entered into by the organization or individual conducting the transaction (if available); technical documents, photographs, or catalogues of the goods: one photocopy; documents and records related to the intended transaction for which pre-determination is requested; and relevant supporting documents in cases where the invoice value must be converted to the actual selling price at the export border gate for exported goods. 

• Consultation on HS Code Classification: Product samples and technical documents (such as component analysis reports, catalogues, photographs), along with a detailed description of the composition, properties, structure, functions, and operation of the goods. 

Step 2: Receipt and Processing of the Request by the General Department of Customs 

In case of request rejection: Within 5 working days from the date of receipt of the consultation request, the General Department of Customs shall issue a written notice of rejection if the request fails to meet the conditions or if the dossier is incomplete, and shall send it to the requesting organization or individual. 

In case of request acceptance: The Director General of the General Department of Customs shall issue a written notification of the pre-determination results regarding HS code, origin, or customs value within 30 days from the date of receipt of a complete dossier (for standard cases), or within 60 days (for complex cases requiring verification or clarification). The notification of pre-determination results shall be sent to the requesting organization or individual and concurrently updated into the customs database and published on the official website of the General Department of Customs. 

Step 3: Application of Consultation Results 

If the enterprise agrees with the pre-determination results notified by the General Department of Customs, it shall proceed with customs declaration and tax payment in accordance with the notification. 

If the enterprise disagrees with the pre-determination of HS codes, origin, and customs value results, it may submit a written request for reconsideration to the General Department of Customs. Within 10 working days (for standard goods) or 30 working days (for complex cases requiring verification or clarification) from the date of receipt of the request, the General Department of Customs shall issue a written response to the declarant. 

3. Value and Validity of the Consultation Result Notification 

The written notification of pre-determination results regarding HS code, origin, or customs value serves as the basis for customs declaration during customs procedures. 

The written notification of pre-determination results regarding HS code, origin, or customs value is valid for a maximum period of 3 years from the date of issuance by the Director General of the General Department of Customs. 

Customs consultation is a relatively straightforward procedure that enterprises can either carry out independently or engage a professional consulting service to handle on their behalf. This procedure is highly recommended for enterprises that regularly import or export specific types of goods over an extended period, particularly for those whose import and export activities involve related-party transactions. 

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