INTRODUCTION TO THE HARMONIZED SYSTEM AND VIETNAM’S PARTICIPATION

Multipurpose Nomenclature

The Harmonized System (HS) was designed as a foundational framework that allows countries and organizations to customize and create their own subdivisions based on specific needs This system facilitates the identification of customs tariffs and statistical classifications for international trade, making it accessible for customs authorities, statisticians, and logistics providers By utilizing six-digit code numbers to categorize data at subheading levels, the HS enhances the efficiency of data collection and analysis in global trade.

The Harmonized System (HS) primarily serves the collection of import duties and taxes, maintaining its status as a versatile categorization tool with various applications This central role is expected to continue well into the future.

The Harmonized System is a 6-digit numerical nomenclature designed for transportable commodities, regardless of their involvement in international trade It serves as a multipurpose classification system, encompassing 5,205 distinct groups with defined parameters While intermediate categories lead to final subheadings at the 6-digit level, they do not fully embody the system's multipurpose nature.

"Intermediate categories" encompass any 4-digit heading associated with a fifth-digit code that is not zero, as well as all four-digit headings along with their relevant one-dash subheadings (where the fifth-digit is a non-zero number) in cases where the sixth-digit is also non-zero.

The Harmonized System (HS) is an international nomenclature for the classification of products, designed to facilitate global trade Vietnam's participation in the HS enhances its trade efficiency and compliance with international standards, promoting economic growth and integration into the global market By adopting the HS, Vietnam can streamline customs procedures, reduce trade barriers, and improve its competitiveness in international trade This alignment not only benefits Vietnamese exporters but also strengthens the country's trade relationships with other nations.

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Structure nomenclature

The Harmonized System serves as a comprehensive framework for classifying goods, encompassing both legal and logical aspects It consists of 1,224 headings organized into 97 chapters, which are further divided into 21 sections, facilitating efficient tariff classification.

The System features a "Heading No." column, which includes a unique 4-digit code for each heading The initial two digits represent the Chapter number, while the final two digits denote the heading's specific position within that Chapter.

All headings, except for 285 currently under discussion, have been organized into two or more primary subheadings, and where relevant, these primary subheadings are further divided into additional secondary subheadings, each identified by a unique 6-digit code.

The Harmonized System comprises 5,205 unique goods groups, each identified by a 6-digit HS code The initial four digits represent the heading number, while the fifth and sixth digits specify the one- and two-dash subheadings, with any missing subheadings indicated by a zero.

The Harmonized System consists of a coherent set of headings and subheadings that, along with the Interpretative Rules and the accompanying notes, enable standardized and systematic classification of goods.

Vietnam’s paticipation HS

The finalized AHTN list for 2022 results from 10 discussion rounds among ASEAN nations, reflecting amendments based on the HS list Updated every five years, the AHTN aligns with the comprehensive HS List at the 8-digit level, aimed at enhancing trade facilitation in the region This review was conducted using the 2022 HS list version developed by the WCO.

The AHTN list for 2022 is supposed to be internalized by making the list of goods that Vietnam imports and exports known to the public

As a result, the Resolution No 29/NQ-CP dated March 8, 2022, of the Government was given the go-ahead for approval by the Government based on the AHTN 2022

Article 26 of the Customs Law No 54/2014/QH13 empowers the Minister of Finance to create a standardized list of Vietnamese imports and exports, ensuring consistent application across the country.

The Harmonized System (HS) is an internationally standardized system of names and numbers for classifying traded products, playing a crucial role in global trade Vietnam's participation in the HS enhances its trade efficiency and compliance with international regulations By adopting the HS, Vietnam can streamline customs procedures, reduce trade barriers, and improve its competitiveness in the global market Understanding the HS is essential for businesses engaged in international trade, as it facilitates better communication and collaboration between trading partners.

On June 8, 2022, the Vietnamese Minister of Finance published Circular No 32/2022/TT-BTC, which outlines the country's export and import lists This circular implements Resolution No 29/NQ-CP, approved by the Government of Vietnam on March 8, 2022, and aligns with Version 2022 of the ASEAN Harmonized Tariff Schedules.

Vietnam's Nomenclature of Exports and Imports details the codes, names, and descriptions of commodities, along with their units of measurement and relevant explanations This comprehensive list is based on Vietnam's full adoption of the International Convention on the Harmonized Commodity Description and Coding System, outlining the goods eligible for import and export to and from the country.

Vietnam's Nomenclature of Exports and Imports, published in Circular No 32/2022/TT-BTC, consists of two appendices Appendix I details the nomenclature for exports and imports, while Appendix II outlines six general principles for categorizing commodities This classification system is based on the Harmonization System utilized by the World Customs Organization for item description and encoding.

The Nomenclature of Imports and Exports of Vietnam is used in the following ways:

-The creation of export and import tariff schedules

As per the Government of Vietnam's regulations and Clause 4 of Article 26 of the Customs Law, it is mandatory to create a comprehensive list of commodities utilized for state management purposes.

-Collect data from the state on the amount of goods exported and imported

-Provide assistance to the state administration about the export and import of various items and other areas

Exporters and importers, along with organizations and individuals involved in trade, customs authorities, and state management officials, are key entities utilizing the list of Vietnam's imported and exported goods.

General about 6 Rules of HS code

The Nomenclature should classify products in accordance with the following criteria:

The Harmonized System (HS) is an internationally standardized system of names and numbers for classifying traded products, playing a crucial role in global trade Vietnam's participation in the HS enhances its trade efficiency and compliance with international standards, facilitating smoother customs procedures and reducing trade barriers By aligning with the HS, Vietnam aims to improve its export competitiveness and attract foreign investment, ultimately contributing to its economic growth and integration into the global market.

Sections, chapters, and subchapters must be classified for legal purposes based on the headings and relevant Section or Chapter Notes This classification should adhere to the specified provisions, unless the headings or Notes indicate otherwise, regardless of the titles assigned to these sections, chapters, and subchapters.

Any mention of an article in a heading should be understood as referring to that article in its incomplete form, provided it retains the essential characteristics of the complete version Additionally, references to an object in its finished state are also applicable to the item in both disassembled and assembled forms.

Any mention of a material or substance in a heading also refers to mixtures or combinations with other materials Goods made from a specific material should be understood to include those fully or partially composed of that material The classification of products containing multiple materials will follow the guidelines established in Rule 3.

3 When commodities are prima facie classifiable under two or more categories as a result of the application of Rule 2(b) or for any other reason, classification should be accomplished as follows:

Headings that provide specific information will be prioritized over more generic descriptions Even if one heading offers a more detailed or accurate portrayal of the products, other headings will still be considered equally relevant if they refer to only a portion of the materials in mixed goods or to specific items within a retail set.

When categorizing products for retail, it is essential to classify mixtures and composite items based on the material that gives them their primary identity This includes products made from various materials or those sold in sets, ensuring they are identified by their most significant component.

(c) For items that do not fit cleanly into 3 (a) or 3 (b), the last number heading among those that should be considered is the one that should be utilized.

4 Items that cannot be categorized according to the preceding Rules should be classified under the category applicable to the goods to which they are most closely related.

5 The following Rules shall also apply to the commodities mentioned in the preceding provisions:

The Harmonized System (HS) is a standardized international classification of goods that facilitates global trade by providing a common language for customs and trade statistics Vietnam's participation in the Harmonized System enhances its trade efficiency, ensuring compliance with international standards and improving its competitiveness in the global market By adopting the HS, Vietnam can streamline customs procedures, reduce trade barriers, and foster better trade relationships with other countries This alignment not only supports economic growth but also aids in the accurate collection of trade data, which is essential for policy-making and economic analysis.

Specially designed cases for items such as cameras, musical instruments, firearms, drawing tools, and jewelry are classified alongside the articles they are intended to hold when sold together These containers are suitable for long-term use and are typically associated with the specific items However, if a container is essential to the overall identity of the item, it is not subject to this classification rule.

Camera cases, musical instrument cases, firearms cases, and similar specially designed containers are classified with the articles they are intended to hold, provided they are suitable for long-term use and packaged together However, this classification rule excludes containers that are essential for establishing the identity of the entire product.

For legal compliance, product categorization under subheadings must align with their specific wording and applicable Subheading Notes, adhering to established Rules It's important to note that only subheadings of the same level can be compared Additionally, relevant Section and Chapter Notes are applicable unless stated otherwise in the context.

ANALYSIS ABOUT LONGAN AND SAMSUNG GALAXY A72 AND THE

Product introduction, structural features

The scientific name of the longan is Dimocarpus Longan, which means "Dragon's Eye" because of the black seeds inside the sweet and crispy longan rice Longan is the

Bo Hon family, is a subtropical perennial plant native to China Currently, longan is grown a lot in Vietnam, Indonesia, Thailand and the south of China

The Harmonized System (HS) is an international standardized system for classifying traded products, essential for global trade facilitation Vietnam's participation in the HS enhances its trade efficiency and compliance with international regulations, fostering economic growth By aligning with the HS, Vietnam can improve its customs procedures, reduce trade barriers, and attract foreign investment This integration into the global trading system underscores Vietnam's commitment to enhancing its trade capabilities and competitiveness on the world stage.

Longan fruit is a round, light yellow fruit with smooth skin, encasing a layer of translucent flesh around a dark seed The primary harvest season for longan occurs in July and August The longan tree typically grows between 5 to 10 meters tall, featuring a rough trunk and abundant green foliage year-round The flowering season for longan takes place in February, March, and April, filling the garden with a delightful fragrance.

Famous varieties of longan: In addition to popular labels such as: cinnamon longan, cowhide label, bare label, water label, etc., the following famous labels must be mentioned:

The yellow rice boat label hails from Ba Ria - Vung Tau province, featuring thick, sweet yellow rice that is widely cherished The longan fruit, known for its unique canoe-like shape with a concave base and bulging sides, transitions from a light red skin when unripe to a vibrant golden yellow upon ripening.

Hung Yen longan, renowned for its exceptional taste, is cultivated in Hung Yen and was historically favored by royalty, earning it the nickname "Tien Vua." To protect the fruit from birds, farmers use bamboo cages, leading to its designation as "cage longan." This variety features large, dark yellow fruits with small seeds and thick pulp, offering a sweet and fragrant flavor reminiscent of alum sugar.

Longan has a sweet taste that is easy to eat and contains many nutrients In 100 grams of longan contains: Energy: 60 Kcal -Fiber: 0.1 grams - Protein: 1.31 grams

The Harmonized System (HS) is an internationally standardized system for classifying traded products, which plays a crucial role in global trade Vietnam's participation in the HS enhances its trade efficiency and facilitates better customs procedures By adopting the HS, Vietnam aligns itself with international trade practices, promoting transparency and reducing trade barriers This participation not only aids in accurate tariff classification but also supports Vietnam's economic growth and integration into the global market.

-Vitamins: B1 (0.031 grams), B2 (0.14 grams), B3 (0.31 grams) and vitamin C (84 mg) Minerals: Potassium (266mg), Magnesium (10mg), Calcium (1mg), Iron (0.13mg), Phosphorus (21mg), Manganese (0.052mg), Zinc (0.05mg).

Longan is beneficial for heart health due to its high potassium content, which helps stabilize blood pressure and lower cholesterol levels This fruit aids in regulating heart function and reducing the risk of cardiovascular diseases, promoting overall heart wellness Additionally, potassium plays a crucial role in cleansing arterial plaque, enhancing blood circulation and decreasing the likelihood of strokes.

Prevent anemia and increase awareness: Eating longan will help the body absorb iron.

Iron is a major component of hemoglobin, a major substance of red blood cells in the blood Hemoglobin is responsible for transporting oxygen to cells in the body

Adequate oxygen supply is crucial for brain health, as the brain utilizes 20% of the body's oxygen Sufficient oxygen and blood flow not only reduce the risk of anemia but also enhance cognitive function and promote the production of new neurons.

Thereby increasing memory ability and alertness.

Boosting immunity: The high content of vitamin C in the longan helps to strengthen the resistance against common colds Helps increase the body's ability to absorb iron.

Longan is beneficial for the nervous system due to its B vitamin content, which aids in relaxing nerves and alleviating stress and fatigue It also plays a role in treating conditions such as neurasthenia, insomnia, and depression, contributing to a lighter and more comfortable state of mind.

Vitamin C is essential for women's skin beauty, as it boosts collagen production for a brighter, smoother complexion Additionally, it effectively reduces wrinkles and slows the aging process, helping to prevent sagging skin.

2.1.2 Determine the HS code of the longan

Applying 6 HS rules to find out the HS code of Longan, according to Circular No

According to 156/2011/TT-BTC, the classification of goods follows a hierarchical approach, applying the smallest rule first and progressing to the next only if necessary This method continues in ascending order until a suitable rule is found, at which point further rules are disregarded Our team believes that the fourth of the six rules for establishing HS codes is particularly applicable to the classification of fruits.

The Harmonized System (HS) is an international standardized system for classifying traded products, essential for global trade Vietnam's participation in the HS enhances its trade facilitation, ensuring compliance with international customs regulations and improving market access By adopting the HS, Vietnam aims to streamline its tariff structures and enhance trade efficiency, fostering economic growth and integration into the global market.

Longan Specifically, the following are the implementation details for determining HS code:

Step 1: Type details of the product

To make it easier to find the product's HS code, we should list some practical details about the product to look for as follows:

• Uses: as dessert after each meal, export, etc

Once the product has been accurately described, the next crucial step is determining the appropriate HS code based on the application of the six HS code rules.

Step 2: Determine HS code based on 6 Rules HS code

Section, chapter, and sub-chapter titles do not hold legal significance in the classification of goods; they merely assist in identifying the relevant chapter for an item The titles alone cannot comprehensively describe all products within a chapter, as accurate classification relies on the detailed footnotes and subheadings provided therein.

To effectively classify products, refer to the 2022 import and export tariff, which establishes the relevant chapter This overview of the Harmonized System enables users to swiftly determine the appropriate chapter classification for their products.

The Harmonized System (HS) is an internationally standardized system of names and numbers for classifying traded products, which facilitates global trade and customs procedures Vietnam's participation in the Harmonized System plays a crucial role in enhancing its trade efficiency, ensuring compliance with international regulations, and promoting economic growth By aligning its customs practices with the HS, Vietnam can improve its export competitiveness and foster better trade relationships with other countries Understanding the significance of the Harmonized System is essential for businesses and policymakers in Vietnam to navigate the complexities of international trade effectively.

Figure 3 Table of Overview of Harmonized System

FINDING

Advantage

Our team focused on exploring the six principles of HS code utilization discussed in class, integrating lecture materials and social media insights We also analyzed YouTube videos to identify the HS codes for the specified goods This approach proved to be one of the easiest, fastest, and most reliable methods for discovering HS codes.

Because we live in the information era, the quickest and most simple way to locate the

HS codes of phones and longans is to utilize the internet There are various websites available nowadays for searching for HS code information.

On the other hand, our team is also based on ancient customs records of two items, about which we question and read expert opinions.

Although checking up HS codes in the Import-Export Tariff is a manual process, we've observed that when looking up on a frequent basis and having a mechanism to look up,

The Harmonized System (HS) is an internationally standardized system of names and numbers for classifying traded products Vietnam's participation in the HS enhances its trade efficiency and compliance with global trade standards By adopting the HS, Vietnam aims to facilitate international trade, improve customs procedures, and promote transparency in trade regulations This alignment with the HS not only supports Vietnam's economic growth but also strengthens its position in the global market.

The Harmonized System (HS) is an internationally standardized system for classifying traded products, which facilitates global trade by providing a uniform framework for categorization Vietnam's participation in the HS enhances its trade capabilities, making it easier for businesses to access and share important product information This involvement not only streamlines customs procedures but also aligns Vietnam with international trade standards, fostering economic growth and improving market competitiveness.

Disadvantage

While we've learnt and comprehended the six principles for checking up the HS codes, the group is encountering some difficulties when putting them into practice.

Indeed, in the earlier days, there were numerous technical items that were combined with various functions and variables, making them difficult to detect and separate when classifying.

Our team dedicated considerable time and effort to the search and categorization process due to the challenges encountered A notable instance was our confusion between canned and fresh longan, which shared the same label yet differed significantly.

The HS code is a crucial component of customs declarations, yet it is often misinterpreted by many customs declarants, leading to potential errors This misunderstanding can create opportunities for us to exert influence in the customs process.

Risk

Businesses already confront numerous significant risks related to import and export taxes.

The ambiguity in HS codes allows one code to represent multiple items or vice versa, leading to confusion in product classification Consequently, businesses receive a specific code from customs during export, but may face additional inspections years later due to unclear product descriptions.

The classification of items by the customs department can lead to the application of different HS codes, impacting export requirements While an enterprise may not need an export permit when declaring an HS code, the customs authority can reclassify the item, necessitating an export authorization To prevent administrative sanctions, enterprises must secure an export license based on the customs declaration dossier, which can pose significant challenges, especially for those exporting items for the first time.

HS Code regulations still create different ways of applications and interpretations Since

HS codes serve as a universal economic language and are crucial for international trade, being integrated into various global customs clearance systems However, using the correct HS code can be challenging, as interpretations may vary between countries and customs officials Misapplication of HS codes can lead to the enforcement of excessive duties by customs, significantly raising import costs for consumers.

The Harmonized System (HS) is an internationally standardized system of names and numbers used to classify traded products Vietnam's participation in the HS enhances its trade efficiency and compliance with global trade regulations By adopting the HS, Vietnam aims to facilitate international trade, improve customs procedures, and boost economic growth This alignment with the HS also supports Vietnam's integration into the global economy, fostering better trade relationships and competitiveness.

The Harmonized System (HS) plays a crucial role in international trade by providing a standardized classification of goods, which helps mitigate legal risks For businesses in Vietnam, understanding and correctly applying HS codes is essential to ensure compliance with customs regulations If there is any uncertainty regarding the appropriate HS code for specific products, it is advisable to consult with customs officials or seek assistance from professionals at customs clearance firms for accurate guidance.

Your business may uniquely bear the risk due to various factors beyond your control, such as inconsistent judgments, insufficient legal protections for employees, and a tendency to shift risks onto others Additionally, the absence of clear regulations defining each party's responsibilities exacerbates these challenges.

The HS code is essential for international businesses as it categorizes goods, establishes tariffs, and monitors shipments Accurate use of HS codes is mandatory for overseas shipments, helping businesses ensure proper import and export classification By understanding HS codes, companies can avoid costly mistakes and shipping delays, ensuring a smoother overseas sales and shipping process This knowledge also aids in preparing the necessary documentation, ultimately streamlining logistics to meet both business and customer needs.

Although the HS code system may seem like a hassle to enterprises doing business internationally, it is a potent instrument for getting your goods onto the global market

Utilize the HS system as a strategic tool to expedite the delivery of your products to customers, rather than viewing it as a cumbersome legal requirement Proper application of HS codes not only enhances customer satisfaction but also minimizes unnecessary delays and expenses If you're new to the system, regularly consult online resources to ensure accuracy in your code usage For any uncertainties, seek guidance from local customs officials in your target markets Thorough planning and research are essential for achieving long-term success in your international business endeavors.

Globalization and trade liberalization have significantly strengthened international trade, leading to increasing job opportunities in customs, international business, foreign trade techniques, international forwarding, and supply chain services for import and export commodities As the demand for skilled professionals in international trade continues to rise, the establishment of the Department of Customs Operations aims to prepare highly qualified workers to meet the needs of integration, trade liberalization, and effective state management in customs and import-export activities.

The Harmonized System (HS) is an internationally standardized system for classifying traded products, facilitating global trade by providing a common language for customs and trade authorities Vietnam's participation in the Harmonized System enhances its trade efficiency and compliance with international standards, promoting smoother import and export processes By adopting the HS, Vietnam aims to improve trade statistics, streamline customs procedures, and foster economic growth through better integration into the global market.

 To train competent bachelors in the practice of state management of customs as well as the theory and application of theory to import and export activities.

 To be capable of thoroughly resolving issues that arise in the practice of import and export operations as well as the practice of state management of customs.

 To have the ability to approach and research new issues arising in the field of import and export and the field of state management of customs.

In today's global marketplace, businesses engaged in import and export activities need expertise in Customs processes, including goods classification, origin determination, and identification A comprehensive understanding of customs value, post-clearance inspections, and customs declaration procedures is essential for navigating foreign trade operations effectively.

The demand for consulting services in tax, customs, and import-export sectors is rising in both public and private domains Students specializing in Customs and Foreign Trade possess the skills needed to provide effective consulting in this area With the implementation of self-calculation, self-declaration, and self-payment mechanisms, tax and customs declaration services have become increasingly advanced, presenting significant career opportunities for those pursuing a degree in Customs and Foreign Trade Business.

HS Rules | WCO Trade Tools (n.d.) Www.wcotradetools.org https://www.wcotradetools.org/en/harmonized-system/rules

Mã HS Việt Nam 0810 - Quả Khác, Tươi (n.d.) Www.vietnamtrades.com Retrieved October

31, 2022, from https://www.vietnamtrades.com/vn/hts-code/other-fruit-fresh-heading-0810

Mô tả chi tiết mã HS 08134010 - Caselaw Việt Nam (n.d.) Caselaw.vn Retrieved October 31,

2022, from https://caselaw.vn/chi-tiet-ma-hs/08134010

QUẢ NHÃN LÀ GÌ? LỢI ÍCH CỦA QUẢ NHÃN [BÀI 221] (2021a, July 26) Trái Cây Tươi

Nhập Khẩu https://traicaytuoinhapkhau.net/qua-nhan-la-gi/

The Harmonized System (HS) is an international nomenclature for the classification of products, facilitating global trade by providing a standardized method for identifying goods Vietnam's participation in the HS enhances its trade efficiency and compliance with international standards, promoting economic growth and integration into the global market By adopting the HS, Vietnam can streamline customs procedures, improve trade statistics, and foster better trade relations with partner countries This participation not only supports Vietnam's export and import activities but also aligns its trade practices with global norms, ultimately benefiting its economy and international standing.

Tiêu đề	Introduction To The Harmonized System And Vietnam’s Participation
Tác giả	Nguyễn Thị Tuyết Ân, Nguyễn Thành Tài, Đinh Quang Hiệp, Võ Phương Nguyên, Nguyễn Trần Đông Quân
Người hướng dẫn	Tran Nguyen Chat, Lecturer
Trường học	Ton Duc Thang University
Chuyên ngành	Business Administration
Thể loại	Report
Năm xuất bản	2022
Thành phố	Ho Chi Minh City

Định dạng
Số trang	59
Dung lượng	1,42 MB