OVERVIEW OF HS CODES, CUSTOMS VALUES, AND DECLARATION SOFTWARE VNACCSECUS5

TON DUC THANG UNIVERSITY FACULTY OF BUSINESS ADMINISTRATION MAJOR: INTERNATIONAL BUSINESS FINAL REPORT MODULE: CUSTOMS PROCEDURES Class code: 706023 Cohort: Semester: MAJOR: INTERNATIONAL BUSINESS CLASS:19DF0701 Academic year: 2021- 2022 Lecturer: PhD Tran Nguyen Chat GROUP Ho Chi Minh City, 15th of January, 2022 0 LIST OF GROUP MEMBERS – GROUP Full name Student ID Huynh Muoi Luy (member) 719D0082 Nguyen Thi Hong Ngoc (secretary) 719D0105 Hinh Van Ty (leader) 719D0221 Nguyen Thi Thuy Vy (member) 719C0108 0 COMPLETION LEVEL EVALUATION TABLE Full name Student ID Duty Evaluation Signature Huynh Muoi Luy (member) 719D0082 Chapter (1.2) 100% Signed Nguyen Thi Hong Ngoc (secretary) 719D0105 100% Signed 100% Signed 100% Signed Chapter (2.2) Introduction Support chapter (2.1, 2.3) Chapter (3.1) Hinh Van Ty (leader) 719D0221 Chapter (1.3) Chapter (2.3) Conclusion Nguyen Thi Thuy Vy (member) 719C0108 Chapter (1.1) Chapter (2.1) Chapter (3.2) 0 ACKNOWLEDGEMENT In order to complete the research project, our team would like to express our sincere and deepest thanks to Ms Chan Nguyen Chat for directly guiding and reminding our team during the implementation of the research topic to complete the research into a report At the same time, I would also like to thank my family and friends who have always encouraged and supported me during the completion of this thesis In the process of implementation, although we have tried to understand and absorb the contributions of teachers, teachers and friends, consult many domestic and foreign documents, the research content still cannot avoid shortcomings Omission Our team is looking forward to receiving comments from teachers, teachers and friends to improve this research topic However, preparing essay, report or presentations while researching will almost always result in errors As a result, we expect that our professors and classmates would comment and assess more so that we can progress in other disciplines Thank you for everything Ho Chi Minh City, 15.01.2022 0 EVALUATION OF SUPERVISING LECTURER Ho Chi Minh City, 15.01.2022 Supervising Lecturer (Full name, Signed and Sealed) 0 EVALUATION OF MARKING LECTURER Ho Chi Minh City, 15.01.2022 Marking Lecturer (Full name, Signed and Sealed) 0 TABLE OF CONTENT INTRODUCTION CHAPTER 1: OVERVIEW OF HS CODES, CUSTOMS VALUES, AND DECLARATION SOFTWARE VNACCS/ECUS5 1.1 A general summary of the HS code 1.2 A general summary of the customs values 1.3 A general summary of software VNACCS/ECUS5 CHAPTER 2: ANALYZE AND EVALUATE A FEW SELECTED CASE STUDIES 2.1 How to determine the HS code for salt-roasted cashews in the customs declaration 2.1.1 A brief introduction about Duy Linh salt-roasted cashews 2.1.2 Determine the HS Code of Duy Linh salted roasted cashews 2.2 How to determine the customs value for the selected imported goods 11 2.2.1 General introduction of the imported shipment of Laneige Lip Sleeping Mask Berry EX 20g 12 2.2.2 An analysis of the method used to determine the customs value of imported consignments 13 2.3 Make a pre-registration of import declaration (IDA) on VNACCS/ECUS5 15 2.3.1 General description of consignment characteristics 15 2.3.2 Analysis of data entry steps for imported consignments 16 2.3.2.1 General tab input 16 2.3.2.2 General tab input 18 2.3.2.3 Data entry tab details 19 CHAPTER 3: SOLUTION 26 3.1 Overall assessment of situation-specific encountered during practice some case studies 26 3.2 Evaluation applicability and proposing some solutions practicality 27 CONCLUSION 28 APPENDIX - CUSTOMS DUCUMENTS 29 REFERENCES 38 0 LIST OF ABBREVIATIONS HS CODE Harmonized System (HS) Codes WCO World Customs Organization FTA Free trade Agreement FOB Free on Board (Incoterms) CIF Cost, insurance, and freight (Incoterms) ISO International Organization for Standardization VAT Value-added tax BRC The British Retail Consortium KRW The Korean won (₩) VNĐ The Vietnamese đồng 0 LIST OF TABLES Table The final result for the customs value of the chosen imported items 13 LIST OF PICTURE Picture The customs value declaration and inspection process in workplace Picture Duy Linh salt-roasted cashews Picture Results from the import and export tariff schedule 2022 Picture Search results from Case Law Picture Results from the import and export tariff schedule 2022 (heading) 10 Picture Final resulf of Salted Roasted Cashew Nuts 11 Picture Customs Procedures 12 Picture General tab practice results on VNACCS/VCIS 17 Picture General tab practice results on VNACCS/VCIS 19 Picture 10 General tab detail practice results on VNACCS/VCIS 20 0 INTRODUCTION When discussing the International Business major, people frequently highlight Logistics or Supply Chain, but they typically overlook the importance of Customs operations Along with the strong development of free trade in the context of globalization, we can see that aspects of import and export are becoming increasingly improved and processed more quickly, thanks to the specialized skills of stakeholders in collaboration with Customs and the advancement of science - technology in this field However, this extraordinary development also makes many firms challenging since they have not had time to adapt to new changes, particularly for fresh graduates because the theory is too far from practice Based on these statements, we must conclude that the subject of Customs Operations is critical in the International Business major My group has gained a great deal of knowledge on this topic over the last 4-5 months of study and research, such as common legislation, practical skills on the system electronic customs declaration or lookup HS code, and how to compute customs value The theoretical information in this subject is relatively large, and in order to summarize what the lecturer has communicated, we will a term-end report to analyze the knowledge as well as draw some conclusions to apply lessons learned for future work This report is organized into three chapters in terms of the main content: Chapter 1: An overview of HS codes, customs values, and declaration software VNACCS/ECUS5 In this chapter, we will primarily introduce briefly the definition, role, and practical application in the context of work of three study subjects: HS code, customs value, and VNACCS/ECUS5 declaration software Chapter 2: Analyze and evaluate a few selected case studies In this chapter, we will apply the important theories and knowledge that we have learned to specific scenarios; the examples in this chapter are assumed and thought by our team, but some other aspects like the procedure of declaring an electronic declaration are used since the professor give my group all of the relevant documentation in a specific import-export contract Chapter 3: Solution In this chapter, we evaluate the challenges encountered when researching and practicing the topic, from which my group draws its own experience after the entire learning process and gives suggestions/solutions for stakeholders 0 10 0 Picture Final resulf of Salted Roasted Cashew Nuts Looking closely at Figure - the area indicated in yellow - we can plainly see that the commodity's subheading is 200819; it is a different product and contains a mixture, therefore the final HS code is 20081991 However, the determination of HS codes still depends on the documents related to the shipment, particularly the description of the items, so in this situation, my group does not except the case of the code 20081910 An outline of my group's HS code structure is provided below: Chapter 20 Heading 2008 Subheading 200819 Tariff Line 20081910 or 20081991 National Tariff N/A 2.2 How to determine the customs value for the selected imported goods In this section, we will analyze how to determine the dutiable value for an import shipment, more specifically we will assume a situation as follows: 11 0 Picture Customs Procedures In addition, we also assume other information as follows: HS CODE 0 33041000 Import duty 20% + KRW/per unit Taxable exchange rate 19000 VND/KRW Countervailing duty 5% Excise duty none Environment protection duty none VAT 10% 2.2.1 General introduction of the imported shipment of Laneige Lip Sleeping Mask Berry EX 20g Korea is known for a number of cosmetic and skincare companies, but not all of them are successful Many businesses must make significant efforts to expand beyond Korean borders in order to assert the brand value and become a worldwide brand, and AmorePacific Corporation is one of them This organization, which was founded on June 1, 2006, has more than 30 brands in the categories of cosmetics, 12 0 personal care, and health care Amore Pacific Group is one of the largest cosmetics conglomerates in Korea, with a domestic market share of 35.1 percent and yearly sales of over 49 billion Won To preserve "differentiation" for its products, the brand's class factors include the use of green materials and innovative equipment technology Amore Pacific has persuaded a big number of potential clients in Korea and other countries, including Vietnam, with a large number of consumers of its brand products firms such as Sulwhasoo, Laneige, Innisfree, Hera, Laneige is a company with many years of research that consistently offers the greatest products, leading the beauty trend that must be highlighted with the product line "Laneige Lip Sleeping Mask Berry EX 20g." The improved version of the sleeping mask with Sleeping Micro Biome technology helps to increase the skin's self-defense ability, restore the balance of microflora on the lips throughout the night, making the lips fresh, full of vitality, especially for those who have tired skin due to a busy schedule, staying up late frequently, and a lack of sleep In terms of ingredients, the product contains Squalane to keep the skin moist all night, the ProBiotics Complex is derived from 23.8 billion probiotics to strengthen the protective ability and help the lip skin increase its resistance, and its 7-free formula is free of mineral oil, polyacrylamide, imidazolidinyl urea, triethanolamine, synthetic pigments, PEG surfactant, and animal ingredients for a safe experience and doe 2.2.2 An analysis of the method used to determine the customs value of imported consignments In this case study, we used the transaction value approach to determine the customs value of the imported consignment The transaction value of imported goods is defined as the actual price that company A (the buyer) has paid or will have to pay to AmorePacific corporation (the seller) to buy and import the goods up to the first border gate of importation and must include international shipping costs as well as international insurance fees (if any) or in this case, the amount that the buyer must pay the seller at the first border crossing - Cat Lai port, Ho Chi Minh City, Viet Nam The reason our group chose this method is that the shipment we assumed satisfies the four conditions of applying transaction value First, Company A has the full right to determine and use the goods after importation Second, whether a sale or price of the goods is not dependent on some conditions leading to an undetermined value for the goods to be determined Third, after resale, assignment, or use of goods, Company A does not have to pay0 any extra money from the proceeds of the disposition or use of the imported goods, excluding the accounts to be added Finally, A Co (buyer) and Amore Pacific Corp (seller) have no breach of nine special relationships or have no effect on value When determining customs values as a basis for the calculation of taxes, in addition to the information provided, other relevant information on the plus and subtract corrections should be kept in mind, because they have a significant affect on the results In this situation, the plus adjustments must be noted copyright/license 13 0 fees, insurance costs, and international transport costs of the batch upon arrival of the first import gate; In addition, there are certain goods that are broken, so we must first import gate; In addition, there are certain goods that are broken, so we must exclude the cost of determining the value transaction The following is a transcript of the results that my team has done, using the learned knowledge that we determined the customs value for the Laneige Lip Sleeping Mask Berry EX 20G (3.994.77 KRW) and for the conversion to Vietnamese currency (75,900,630.00) Based on these results, it has been easy to locate the amount of taxes on goods such as import duties, additional import duties, and VAT Finally, the total amount of tax that Company A had to pay to the customs office was 49,362,736,25 (VNDSS) - the same number that my team reexamined with this quickly calculated formula can be assured that this was an entirely accurate result Table The final result for the customs value of the chosen imported items Product Laneige Lip Sleeping Mask Berry EX 20g Invoice quantity A 200.00 Damage B -10 x 20%/per unit Taxable quantity 200 - 10x20% → value-based Taxable quantity 200.00 → net quantity Unit price (invoice C 20.00 price) Incoterms CIF value 4,000.00 Allocation of (I+F) 523.00 Additions (taxable D FOB value factors) 3,477.00 boxes unit product CIF 4,000.00 523.00 1% FOB Licensing Licensing fee 34.77 Deductions (nontaxable factors)/ Reduction Taxable value for import duty E 40.00 F CIF + Licensing - Damage KRW VNĐ 3,994.77 75,900,630.00 14 0 19,000.00 Payable amount of Import duty (VND) G 34,180,126.00 the dutiable value multiplied by the additional import tax rate 3,795,031.50 value for calculation of import tax plus import tax plus additional Taxable value for VAT import tax 113,875,787.50 value-added tax VAT multiplied by Payable amount of VAT K the VAT rate (VND) 11,387,578.75 import tax plus additional import tax Subtotal plus value-added tax L Payable amount of additional import duty H APPENDIX 4: BILL OF LADING 32 0 APPENDIX 5: DELIVERY ORDER 33 0 APPENDIX 6: DELIVERY ORDER 34 0 35 0 APPENDIX 7: ARRIVAL NOTICE 36 0 APPENDIX 8: ENTRANCE PERMIT 37 0 REFERENCES Công ty Phát triển Công nghệ Thái Sơn | ThaisonSoft (2022) [CrossRef] Amorepacific - A More Beautiful World (2022) [CrossRef] Duy Linh - Trang chủ (2022) [CrossRef] Tế, S (2022) SILVER MOUNTAIN LOGISTICS - Vận chuyển quốc tế [CrossRef] Seo Heung VN (2022) [CrossRef] Xác định mã HS mở tờ khai hải quan (2022) [CrossRef] Khoản điều chỉng xác định trị giá hải quan (2022) [CrossRef] VNACCS gì? (2022) [CrossRef] Hướng dẫn khai thông tin nhập (IDA) phần mềm hải quan vnaccs (2019) [CrossRef] Hệ thống văn pháp quy Chính phủ (2022) [CrossRef] Thủ tục, thuế nhập vận chuyển son môi (2021) [CrossRef] Trị giá hải quan hàng hóa nhập - HP Global (2019) [CrossRef] Hướng dẫn tra cứu mã HS, biểu thuế nhập khẩu, sách nhập khẩu, mã HS tương tự Caselaw Việt Nam (2022) [CrossRef] 38 0 ... Signed and Sealed) 0 TABLE OF CONTENT INTRODUCTION CHAPTER 1: OVERVIEW OF HS CODES, CUSTOMS VALUES, AND DECLARATION SOFTWARE VNACCS/ECUS5 1.1 A general summary of the HS code... terms of the main content: Chapter 1: An overview of HS codes, customs values, and declaration software VNACCS/ECUS5 In this chapter, we will primarily introduce briefly the definition, role, and. .. determination and declaration of customs value during the process of being declared on electronic software and also submit necessary documents to customs authorities After making a declaration and/ or