Question 24: Prior-determination and valuation of goods

The understanding and application of HS CODE are different among Customs Officials, leading to different tax rates. In addition, when determining import prices, there are cases in which the taxable prices are guided with a price list of the customs. Under Circular No. 128 of the Ministry of Finance, HS CODE will be determined with the notice scheme, hence, we would like to know the initial time and the practical result of this scheme. We are also pleased to be guided for this notice scheme. In terms of import price valuation, it is of importance that Customs provides solution for the precise import declaration by clearly regulating the necessary documents to prove the price in the import price valuation step, and promoting to guide enterprises in preparing the documents in advance.

Customs Department

Under the provision of Article 7 of Circular 128/2013 /TT-BTC on 10 Sept, 2013 of the Ministry of Finance, the prior-determination of export and import code shall becarried out prior to the customs procedure at the request of organizations and individuals. The Circular are in effect from 01 Nov, 2013.

In determining the value of imported goods:

In case organizations and individuals request to conduct prior-determination of the value of goods exported or imported, this must be carried out in accordance with the provision of Article 8 of Circular 128/2013 /TT-BTC on 09 Oct, 2013 of the Ministry of Finance.

In case the customs authorities determine the value of imported goods in the customs procedures, this must be carried out based on the following provisions:

Decree No. 40/2007/ND-CP dated 16 Mar, 2007 of the Government on customs valuation of imported and exported goods;

Circular 205/2010 /TT-BTC dated 15 Dec, 2010 of the Ministry of Finance guiding Decree No.40/2007/ND-CP stipulating on determination of customs value for imported, exported goods;

Circular 29/2014/TT-BTC on 26 Feb, 2014 of the Ministry of Finance on amendements to some articles of Circular 205/2010/TT-BTC dated 15 Dec, 2010 of the Ministry of Finance guiding Decree No. 40/2007/ND-CP dated March 16, 2007 of the Government regulating the customs valuation of imported and exported goods;